Operation Strategy of Coca Cola

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Introduction

The Coca Cola Company one of the most popular soft drinks manufacturers in the world. Founded by Dr. John Styth Pemberton, who produced the cola flavoured syrup which is mixed with carbonated water. The beverage was first sold through a soda fountain in a Jacob’s pharmacy; Atlanta, Georgia. In 1893, seven years after first being invented, when Coca cola was registered with the United States Patent office. Today 10450 soft drink manufactured by the Coca Cola company are consumed every second the day. Coca Cola manufactures More than 21 different brands of beverages from bottled water to a good old coke, the most popular being coke.

The Coca cola’s target market is basically everyone. However, their biggest focus are people who fall between he age group of 18-25 that accounts for 40% of the total age segment. In addition, they manufacture beverage for children like Bibo to beverages for older people like coke and soda water. Coca cola tries to satisfy anyone and everyone with the products they manufacture. Moreover, due to the vast target market, it is evident that they need a very large work force. At the end of the company’s fiscal year 2011, coca cola companies total employees was 149 200. On average the turnover for in 2010 the turnover for 2010 was $35 119 Billion according to the annual review. Not Surprising that Coca cola is sold in more than 200 countries in the world. Although, Coca cola is not manufactured in all the countries in the world, it is sold almost everywhere.

Coca cola’s ability to anticipate the needs of customers are how they are able to create value for their customers. In addition, the company tries to work closely with chain retailers and small retailers to help them reduces costs and improve sales.

As with each successful company, there needs to be some sort of structure. Coca cola’s process flow for bottling coke is as follows; 1.Ingredients are delivered to the factory
2.New and old bottles are sort into the various sizes
3.The bottles are then washed in a special detergent
4.Afterwards, the bottles are inspected, visually to ensure they are clean 5.All the cracked and chipped bottles are removed and destroyed 6.Each bottle is then electronically inspected to ensure they meet the standard 7.All faulty , cracked, chipped or dirty bottles are removed and destroyed 8.Then the mixing and blending of the syrup takes place

9.Syrup is the mixed with concentrate
10.And then with carbonated water
11.The bottles are then filled with the liquid
12.And are then capped
13.Bottles are only then labeled
14.After the bottles have been labeled, they are coded
15.The final inspection of the products takes place before packaging 16.Then the bottles are packaged according to the size and the bottle 17.After which the products are sent to the warehouse

18.Stock is rotated to ensure freshness
19.The products are then delivered to retailers
20.Lastly, products are sold to consumers.

Component 1: Process Flow
We have identified that Coca Cola makes of a Continuous Process flow which allows them to produce more standardized products in a high volume. Below we will graph the process flow of the Coca Cola company and then elaborate more on the components which makes up their processes.

Component 2: Operations Strategy

According to Slack and Lewis, Operations strategy is the total pattern of decisions which shape the long-term capabilities of any type of operations and their contribution to the overall strategy, through the reconciliation of market requirements with operations resources.

With the given definition of operations strategy we will also identify the competitive priorities of the Coca Cola company and how it relates to the above mentioned definition. Competitive priorities of an organisation includes a) low cost, b) high quality, c) fast delivery, d) flexibility and e) service....
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