Running head: VICE PRESIDENT OF OPERATIONS PART 2
VICE PRESIDENT OF OPERATIONS PART 2 10
VICE PRESIDENT OF OPERATIONS PART 2
Shaquinna Wilson
Christopher McGrath
BUS 515 Operation Management
May 12, 2019
Weaknesses of Coca-Cola product life cycle
The product life cycle refers to the life of a product in the market on the bases of its commercial or business costs as well as sales measures. Product lifecycle goes through many phases, requires a lot of tools, processes, and skills, and professional discipline (De & Meyer, 2010). Every product goes through various phases that include introduction, growth, maturity, and decline.
Coca-Cola is in the maturity stage of product life cycle and has had a very long product cycle. Since its introduction to the market in 1886, it has always been at the maturity stage. At this stage, a product is very profitable as compared to when it is in other stages. Due to the fact that the product yields a lot of profit, a company does not have to spend a lot of money on advertising.
One of the weaknesses of this product life cycle is a decline in sales. Coca-Cola Company has been experiencing a decline in the sale of soda especially in the United States of America. Even though the sale of soda might have decreased in one market, it does not mean that they have reduced in other markets.in the case of Coca-Cola maintaining high sales in America is important since it is their main market.
Another weakness of this product life cycle is competition from other companies. Many companies aspire and work towards ensuring that their products reach the maturity stage in order for them to gain a lot of profits. This makes new companies to get into the maturity stage and they begin to compete with the existing companies. Coca-Cola has experienced competition from Pepsi which has a huge customer base and is in the maturity stage. This kind of competition makes Coca-Cola to experience reduced sales.
Strategies that the organization needs in order to strengthen the operation
In order for Coca-Cola Company to strengthen its operations, it must ensure that it has the right team. For a company to be able to remain ahead of its competitors, it must have the right team. The team must be willing and ready to commit their time and their ideas to the company. The companies in the market have become very creative and have embraced new ideas and technology that have enabled them to attract the attention of customers. Coca-Cola should also embrace new ideas and ensure that it has the right team.
The second strategy that the company needs to strengthen the operation is to come up with the right advertisement. Pepsi has been known due to its advertisement that many people always look forward to. This has made them to gain more customers and have a competitive advantage.
The third strategy is creating new product designs. Since the product has been in the mark.
Running head VICE PRESIDENT OF OPERATIONS PART 2VICE PRESIDENT .docx
1. Running head: VICE PRESIDENT OF OPERATIONS PART 2
VICE PRESIDENT OF OPERATIONS PART 2
10
VICE PRESIDENT OF OPERATIONS PART 2
Shaquinna Wilson
Christopher McGrath
BUS 515 Operation Management
May 12, 2019
Weaknesses of Coca-Cola product life cycle
The product life cycle refers to the life of a product in the
market on the bases of its commercial or business costs as well
as sales measures. Product lifecycle goes through many phases,
requires a lot of tools, processes, and skills, and professional
discipline (De & Meyer, 2010). Every product goes through
various phases that include introduction, growth, maturity, and
decline.
Coca-Cola is in the maturity stage of product life cycle and has
had a very long product cycle. Since its introduction to the
market in 1886, it has always been at the maturity stage. At this
stage, a product is very profitable as compared to when it is in
other stages. Due to the fact that the product yields a lot of
2. profit, a company does not have to spend a lot of money on
advertising.
One of the weaknesses of this product life cycle is a decline in
sales. Coca-Cola Company has been experiencing a decline in
the sale of soda especially in the United States of America.
Even though the sale of soda might have decreased in one
market, it does not mean that they have reduced in other
markets.in the case of Coca-Cola maintaining high sales in
America is important since it is their main market.
Another weakness of this product life cycle is competition from
other companies. Many companies aspire and work towards
ensuring that their products reach the maturity stage in order for
them to gain a lot of profits. This makes new companies to get
into the maturity stage and they begin to compete with the
existing companies. Coca-Cola has experienced competition
from Pepsi which has a huge customer base and is in the
maturity stage. This kind of competition makes Coca-Cola to
experience reduced sales.
Strategies that the organization needs in order to strengthen the
operation
In order for Coca-Cola Company to strengthen its operations, it
must ensure that it has the right team. For a company to be able
to remain ahead of its competitors, it must have the right team.
The team must be willing and ready to commit their time and
their ideas to the company. The companies in the market have
become very creative and have embraced new ideas and
technology that have enabled them to attract the attention of
customers. Coca-Cola should also embrace new ideas and ensure
that it has the right team.
The second strategy that the company needs to strengthen the
operation is to come up with the right advertisement. Pepsi has
been known due to its advertisement that many people always
look forward to. This has made them to gain more customers
and have a competitive advantage.
The third strategy is creating new product designs. Since the
product has been in the market for a long time, it is important
3. for Coca-Cola to change their product design.
Components of supply chain management
The supply chain department in this company plays a very huge
role as it enables the company to minimize its environmental
impact and ensure sustainability. One of the components of
supply management of this company is planning. The company
has been able to make good plans regarding demand for its
products and it has never disappointed its customers. Demand
planning is very important especially when a product is in its
early stages of the life cycle (Lambert, 2008). As the product
proceeds to the maturity stage, accuracy in demand forecast is
very important. Supply chain management works together with
the production team to ensure that the demand is met.
Another component of the supply chain management of this
company is inventory. In order for a supply management system
to be effective, an inventory must be maintained and kept well.
Coca-Cola Company keeps a list of items, raw materials and
other important things that are required for the product to be
made. This information has always remained private and only
the staff members know all the things that are required for this
product to be made.
Issues that could affect the structuring, sourcing, purchasing,
and the supply chain of your organization
One of the issues that could affect sourcing in this company is
lack of control. A company must maintain control in all the
areas of its operations. By adding new people from different
places in the production and other operations, the company can
lose control and its most valuable asset which is its secret
recipe can be exposed.
Another issue that can affect the structuring, sourcing,
purchasing, and the supply chain of this company is the
management. The top management in a company can affect a
company in a negative or positive way. In this case, the
company leadership should ensure that they have the right
management team that can influence the company in a positive
way.
4. The third major issue that could affect the structuring, sourcing,
purchasing, and the supply chain management of Coca-Cola is
changes in the economy. The economy dictates the way in which
companies operate. Sometimes companies have to outsource and
reduce their production due to poor economic times (Lambert,
2008). Coca-Cola Company needs to be ready for this kind of
change and have a good plan that can assist and guide them on
what to do.
A total quality management tool
The total quality management tool that can be used by the Coca-
Cola Company is Kaizen. Kaizen is a Japanese philosophy that
is focused on continual improvement in all the aspects of life.
Kaizen activities help to improve all functions of a workplace
from production to marketing as well as other functions
(Charantimath, 2012). The main aim of this tool is to remove
waste in every part of the system of a company by improving
standardized processes and activities. People that understand
Kaizen well can integrate it with Six Sigma. Kaizen activity is a
continuous cycle that comprises of 7 phases that include
identifying an opportunity, analyzing the process, developing a
solution, implementing the solution, studying the results,
standardizing the solution and planning for the future
(Charantimath, 2012).
One of the areas that Coca-Cola Company focuses on is on
quality. This company has always ensured that their products
are of high quality. Quality assurance will be a future issue
because companies find it hard to maintain the quality of their
products. Kaizen can help this company to improve on their
quality by bettering their products, the work environment as
well as the processes and practices in the company.
Another area where the company is likely to face an issue in the
future is on cost. With the change in the economy, it can be
difficult for a company to maintain low cost and to manufacture
products at a low cost. Many companies today have outsourced
their production in order for them to ensure that they spend less
5. on production. This has created other issues such as
sustainability and labor issues. Kaizen total quality management
tool can help the company to come up with ways to reduce
manpower as well as expenses on production, marketing and
other functions.
Another area where the company can have issues in the future is
on management. The backbone of a company is the
management. A company with the wrong management team is
doomed to fail. It is very important for companies to ensure that
they have a strong and positive management team. The kaizen
total management tool can assist the company to improve on
employee morale, planning, administration, training, and
reporting, documentation, and information systems.
Another area where the company can have issues in the future is
on safety. The safety of employees is very important.
Companies are responsible of ensuring that the employees are
safe while working. In the case of Coca-Cola, the Coca-Cola
company has the responsibility of ensuring that the product
made is safe for consumption and that all issues required he
safety of customers are addressed. Kaizen activities can help the
company to ensure that the working conditions are safe and
suitable for their employees. It can also help in ensuring that
there is no damage made to the environment.
Advantages in employing the just-in-time philosophy
The just-in-time philosophy can be of much benefit to the
company since it can help in cash flow management. Companies
that stock up and purchase inventory in bulk, end up using a lot
of money to cater for their present purposes. The working
capital of that company is left stuck up in shelves until a time
whereby the products will be needed in a huge number. Just-in-
time philosophy can assist in ensuring a healthy cash flow
(Fleisher & Bensoussan, 2015).
Another advantage of the just-in-time philosophy is that less
space is needed. Since products are made according to the order
that the company gets, there are no products to be stored and
hence less space is needed. A faster turnaround of stock leads to
6. the need for a less storage space (Fleisher & Bensoussan, 2015).
A faster turnaround of goods ensures that the company does not
have to buy or rent out a storage space hence leading to creation
of space for other activities.
The third advantage of the Just-in-time philosophy is that it
ensures waste reduction. Since goods are made according to the
order, they do not become obsolete or damaged. This saves
investment money as well as the money needed to replace old
stock.
Means in which the philosophy could potentially impact quality
assurance
One of the ways through which just-in-time philosophy can
impact quality assurance is through the elimination of waste.
This philosophy ensures that there are no products that are
wasted or kept in stock for a long time. This therefore, ensures
that all the products made are high quality products.
This philosophy also ensures that there is constant
communication between the company and the customer (Shah,
2009). This helps the company to improve on their process and
meet the needs of their customers.
The third way through which this philosophy ensures quality
assurance is by ensuring that the company does not waste its
resources on products that are not in order.
Qualitative and quantitative forecasting method
The quantitative forecasting method that can be used by the
Coca-Cola Company in its operations is the time series
forecasting method. A time series refers to a group of data that
is recorded over a certain period of time. The data can be the
company sales made in a month or annual production. Since
past patterns tend to repeat themselves in the future, a time
series can be used to make a prediction for 5 and even 20 years
(Shah, 2009).
The qualitative forecasting method that can be used is consumer
survey. Consumer survey is conducted directly on the consumer.
It requires statistical analysis and errors in data collection can
greatly affect the prediction (Dubrin, 2009).
7. Qualitative
Quantitative
Method of forecasting
Consumer Survey
Time series method
characteristics
· Survey is conducted directly on the consumer
· Surveys can be done through questionnaires, interviews or
telephone
· Requires statistical analysis
· Involves examination of past data patterns
Strengths
· Represents the general population
· Surveys are not expensive to conduct
· Provides precise results
· It is the most reliable forecasting method
· Can be used to make trend estimations
· It measures endogenous and financial growth
weaknesses
· Errors in data collection can affect the prediction
· It is not a flexible design
· It is no longer used in many cases due to inconsistencies
· This method does not consider business cycle fluctuations
8. References
Charantimath, P. M. (2012). Total quality management. Delhi:
Pearson.
Dubrin, . (2009). Essentials of management. Thomson Business
& Economics.
Top of Form
De, W. B., & Meyer, R. (2010). Strategy: Process, content,
context : an international perspective.
Fleisher, C. S., & Bensoussan, B. E. (2015). Business and
competitive analysis: Effective application of new and classic
methods.
Bottom of Form
Top of Form
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Lambert, D. M. (2008). Supply chain management: Processes,
partnerships, performance. Sarasota, Fla: Supply Chain
Management Institute.
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Top of Form
Shah, J. (2009). Supply chain management: Text and cases.
Delhi: Pearson Education.
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Running head: ASSIGNMENT 1: VICE PRESIDENT OF
9. OPERATIONS, PART 1
ASSIGNMENT 1: VICE PRESIDENT OF OPERATIONS
2
Assignment 1: Vice President Of Operations, Part 1
The student’s name,
The professor’s name,
The course title,
The date
Introduction
An operations strategy refers to the way in which an
organization executes its business strategies. Development of an
operations strategy involves changing competitive priorities to
operational capabilities through making a number of trade-offs
and choices for operating decisions and design (Collier, 2009).
Simply put, an organizations operations strategy must align with
its competitive priorities. The main aspect of an organization is
business operations since this involves direct labor. In a service
or production industry or organization, operations are usually
task-oriented and follow very clear steps until the production
has been completed. In the production and manufacturing
industry, business operations follow clearer steps as compared
to service industries and a product is followed from basic
resources up to the completion unit.
10. This paper will focus on operations strategy in the Coca-Cola
Company. The Coca-Cola Company is one of the best and
leading companies in the beverage industry. This company is an
American multinational corporation that manufactures, retails,
and markets nonalcoholic beverage concentrates and syrups.
This company is popular due to its main product Coca-Cola that
was invented in 1886 by John Smith in Atlanta Georgia. This
company makes the concentrates that are then sold throughout
the world to various bottlers that hold Coca-Cola franchise.
Key elements
A company’s operations strategy is mainly based on its vision.
Coca-Cola’s vision works as a framework and a guide to every
aspect of the business by describing the things that are meant to
be accomplished in order for the company to achieve quality
and sustainable growth. The vision of the company is focused
on people and it works towards ensuring that Coca-Cola
Company is a great place to work and also a place where people
get inspired to bring out their best. The company’s vision is
also focused on portfolio and mainly in bringing into the
universe quality beverage brands that will satisfy the needs and
desires of the people. The company’s vision also focuses on
partnering with suppliers and customers by creating a winning
network. The company’s vision is to be responsible of the
communities around and make a difference through building and
supporting sustainable communities. The main vision of the
company is to be a highly effective and fast-moving company.
One of the basic elements to ensure operations efficiency is the
people. People are very important in the success of a business
but they should be the right people. Companies must work
towards ensuring that they take care of their employees,
customers, suppliers and other partners.
Another element is the position of the production system. This
involves choosing the type of product design, type of inventory
management and policy, and the production system.
The third element is specialization of the production.
Specialization is very important since it assists companies to be
11. able to provide products at a lower price, delivery the products
on time, and provide quality services (Collier, 2009).
Other elements include product design and development,
process development and technology selection, resource
allocation, and facility planning.
Tasks that do not align with the operational strategy
Among these elements one of the elements that do not align
with the operational strategy of the Coca-Cola Company is
technology selection. In terms of technology, this company has
been left behind since it has not embraced technology and
incorporated it in their operations like their competitors.
Another task that does not align with the operational strategy is
recruitment and maintenance of the right people. Coca-Cola
Company has had a number of issues with their employees and
customers due to poor maintenance of the right people.
The third task is on sustainability. Even though the company
claims to be involved in community programs, the sustainability
projects are not usually implemented.
A new operations strategy
Cost: the company will ensure that customers get the product at
an affordable price. The products will be sold at a price that is
affordable to all.
Quality: produce quality products that satisfy the needs and
desires of the customers. The company also looks forward to
providing the best products and ensures customers are served
well and that their needs are met.
Time: the company will ensure that products are delivered to
the customers on time. The timely delivery of the products will
also lead to reduction of speculative activity and ensure a
constant delivery time is kept. This will help in the reduction of
delivery time and costs.
Flexibility: in terms of flexibility the company will ensure that
demand and design flexibility is maintained.
Structure of the competitive priorities and infrastructure of the
production process
Competitive structure focuses on the things that a company
12. places strategic emphasis on and the operational capabilities
within them. Understanding the competitive structure of a
company is important since it helps in determining the
company’s priorities. Every company focuses on sustaining and
building a competitive advantage in the market that it works in
(Mahadevan, 2009). Some companies have a very strong
competitive advantage that makes it very difficult for other
companies to copy. Competitive advantage is achieved in many
ways such as on quality, price or cost, quick response to the
needs of the customers and delivery.
The Coca-Cola Company has kept its recipe a secret and this
secret remains heavily guarded. Today, the Coca-Cola recipe is
the most heavily guarded secret in the world. There is no
company that has been able to come up with this recipe up to
today. The company has been able to ensure that the production
process does not cost a lot of money. In fact, the manufacture of
their product costs only a fraction of the selling price and yields
a high profit.
Another competitive priority of Coca Cola is flexibility. This
company has a large product portfolio that makes the company
to be strong. There is a wide range of brands and products in
which 20 brands are worth millions.
Infrastructure involves the non process capabilities and features
of a company including the compensation systems, quality
control, innovation systems, operating plans, and the workforce
(Collier & Evans, 2012). A company’s infrastructure should
support the process choice and offer managers timely and
accurate information in order for them to make the right
choices.
New enablers
One of the new enablers of the long-term plan of the Coca-Cola
Company is acceptance by young people. Young people today
have accepted the Coca-Cola flavors. Recently, the
advertisements made by Coca-Cola regarding their products
involve young people. The advantage of this enabler is that it
increases the customer base while the disadvantage is
13. maintaining this acceptance and young people change their
preferences fast.
Another new enabler of the long-term plan of this company is a
better distribution network. This company has a better
distribution network than it had before making it easy to sell
products to many people. The advantage of this enabler is that
the company is able to reach a wide area easily. The
disadvantage is that the cost of distribution will increase.
Another enabler is the transfer of production in areas with
lesser labor costs. This company has been able to transfer its
production to areas that are cheaper than the United States. The
advantage of this new enabler is it reduces the cost of
production thereby increasing the profit margin. The
disadvantage is that this kind of transfer can lead to ethical
issues.
References
Collier, D. A., & Evans, J. R. (2012). OM3: Student edition.
Mason, Ohio: South-Western.
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Collier, D. A. (2009). OM: With review cards and bind-in
printed access card, 2nd ed (9780538745567). South-Western
College Pub.
Mahadevan, B. (2009). Operations management: Theory and
practice. New Delhi: Pearson.
Top of Form