Running head: STRATEGIC MANAGEMENT PROCESS 1

Strategic management process

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STRATEGIC MANAGEMENT PROCESS 2

Strategic management process

Discuss strategic management process highlighting the challenge and ways of overcoming them.

Illustrate your answers with the help of a diagram and with reference to a manufacturing

company

Introduction

The strategic management process refers to the defining of the strategy of the

organization. It is the process in which managers make decisions on various strategies for the

organization in order to fulfill their goals. Strategic management process is important in an

organization since it provides a sense of direction and gives the framework for the measurable

goals (Daspit et al. 2017). Strategic management is essential in the daily decisions, evaluation of

the progress made, and in making and implementing change in an organization. The basic model

of strategic management comprises of four basic components. The components include both

internal and external environmental scanning, strategy formulation, strategy implementation as

well as evaluation and controls (Gamble and Thompson 2014). Coca-Cola Company which is the

Worlds leading beverage manufacturer has its operations marked with various strengths,

weaknesses, opportunities as well as threats. In the internal assessment of Coca-Cola Company,

the strengths are personal relationships that have been built between customers and the Coca-

Cola brand world wide. This has been attributed to the companys excellent internal and external

operations that have attracted customers from all over the world. The company is focused on

ensuring customer loyalty with unrivaled global presence hence boasting its profits.

Environmental scanning

The first stage of strategic management process is the environment scanning.

Environment scanning is described as in-depth monitoring of the internal and external

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environments of an organization in order to detect early signs of opportunities and threats which

may affects its future plans (Goetsch and Davis, 2014). The process of environment scanning

involves collecting, scrutinizing and providing information meant for strategic purposes.

Environment scanning help scrutinize the influence of both internal and external factors on the

organization. This process takes place in various steps. The first step of environmental scanning

is to collect information about the world in which the organization operates. This includes the

information about the economy, laws, government and demographic factors which includes the

size of the population and distribution. The second step of the environment scanning is to focus

on its competitors (Hill et al., 2014). In this case the organization determines the opportunities,

threats, and trends which may influence its business. The final step of environmental scanning is

to conduct an internal scan of the company in order to determine the strengths and weakness of

the company and evaluate where the company is at the moment and its goals going forward.

After conducting environmental scanning process, it is important for the management to evaluate

it frequently and always strive to improve it.

Strategy Formulation

This is the second stage of strategy management process. Strategy formulation process

refers to the process whereby a company makes decision on the most suitable course of action in

order to achieve its set goals hence fulfilling the purpose of the organization (Gamble and

Thompson 2014). Business, corporate and functional strategies are formulated by the managers

after conduction environment scanning. Strategy formulation allows for the generation of a

suitable framework for actions which will help the company to achieve its anticipated results.

Moreover, strategic plan helps the company to keenly evaluate its resources, budget and

determine the suitable plan to ensure maximum returns on the investment. The process of
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strategy formulation entails reviewing the information gathered from completing the analysis

(Peppard and Ward, 2016). It is prudent for the managers to determine the resources available at

the moment that can be used to attain the set goals and objectives. It is also important for the

organization to highlight those areas where the business may be forced to seek funds from

external sources. In addition, the issues which face the organization need to be given preference

depending on their importance on the success of the organization. It is important to develop

alternative approaches targeting each stage of the plan since business and economic situations

are usually fluid.

Strategy Implementation

This is the third stage in the strategic management process. Strategic implementation

refers to the way in which an organization generates uses and amalgamates organizational

structure, culture as well as the control systems to be in line with strategies that ensure better

performance and competitive advantage (Hill et al., 2014). The most crucial part of this process

is the implementation of the plan. This stage of the process of strategy implementation requires

ensuring that all the employees in the organization are on the same page as well as ensure that

the formulated strategies are adhered to depending on the previous formulations. Strategy

implementation focuses on ensuring that the strategy works as required or other putting the

selected strategy of an organization into action. This process involves designing the structure of

an organization, allocating resources, generating decision making process as well as managing

the employees in an organization (Rothaermel, 2015).

Evaluation and Controls

This is the last step of the process of strategy management. The formulated strategies can

be modified in future since the internal and external factors of an organization are dynamic
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(Theriou, 2015). In this process managers evaluate the effectiveness of the chosen strategy in

achieving the goals of the organization. The major strategy evaluation and control activities

include reviewing both the internal and external factors which for the bases for the current

strategies, performance appraisal and take remedial actions where necessary (Slack, 2015).

Evaluation and controls ensure that the strategy of an organization and its implementation

conforms to the objectives of the organization.

Diagram of the strategy management process

Strategic Management Process for Coca-Cola Company

Coca-Cola has utilized all of these aspects successfully in their strategic plan. Each

region starts with the identification of both the internal and external threats and opportunities

(Rothaermel, 2015). This is achieved through SWOT analysis and the Porters Five Forces

analyses within the organization at different levels. These reports give Coca-Cola an accurate

view of how competition affects the sales of it its drinks and how raw materials are affected by

the Companys influence in the industry (Peppard and Ward, 2016). Coca-Cola determines their

major competitors and analyzes their strategies and how those strategies affect the Coca-Cola

brands locally and regionally.

Coca-Cola then formulates a strategy to foster growth in each region and ensure a

sustainable future based on the results of their reports (Theriou, 2015). This entails updating their

mission and vision statements when necessary and finding the suitable ways to lure the new and
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existing customers. The vision and the mission of the Coca-Cola were adequately put and are to

be utilized by the company to address the issues of the customers in the objective market. The

essential vital decisions that are utilized are modified now and again to fit the needs of the clients

since they contribute immensely to the success of the company (Goetsch and Davis, 2014).

Coca-Cola is about custom and mixing all missions, vision, and set values together to

accomplish the prosperity and the achievement of every single individual worker (Hill et al.,

2014). In the event that the employees are upbeat, the clients will be as well. It is in the partners'

best advantages that the organization makes every effort to make it the best it can be. A few

organizations don't have a mission by any means, working rather on an arrangement of

objectives (Peppard and Ward, 2016). This is not valid with Coca-Cola. They have a mission and

furthermore follow up on the objectives. They know whether they don't oblige the client, they

could undoubtedly lose to the competitors.

Mission Statement

Coca-Cola has excellent mission and vision statements which plays an integral part in the

success of Coca-Cola. The mission states the following as its goals.

To refresh the world.

To inspire moments of optimism and happiness.

To create value and make a difference.

The business strategy is guided by the organization's put stock in specific convictions which are

that:

1) Consumers drive everything that Coca-Cola does.

2) The Brand of Coca-Cola is the center of the business.

3) We serve the shopper with the choice of non-alcoholic beverages.

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4) We will be the best advertisers on the planet.

5) We think and act locally.

6) We will lead as a model corporate subject

Vision Statement

The vision fills in as a guide to be trailed by Coca-Cola to keep on achieving an

economical, quality development. The vision communicates the following:

It is to be an awesome work environment where individuals are inspired to

be the best

Coca Cola needs to convey to the world quality refreshment marks that

satisfy individuals.

Cultivate a system of clients and providers and together make a mutual

value.

Be a capable organization that has any kind of effect in the groups.

Give back to the shareholders long haul with deference for general duty.

Be a very powerful and quick fast organization.

Strategic Analysis of Coca Cola Company

While doing an evaluation of the operations of the Corporation, the systems that have

been utilized are suited well to the objectives of the company (Theriou, 2015). The goals and the

objectives of the organization have been made are expressive in pointing towards a common end.

The vision and the mission of the organization are feasible for the organization's objectives.

The SWOT of the company:

The solid strengths of the organization are the popularity status of the brands of the

products in the company (Goetsch and Davis, 2014). The enhanced customer loyalty to the
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brands has given the partnership an upper hand in accomplishing a solid competitive advantage.

It is regularly that a coke consumer won't care for drinking a Pepsi item. Coca Cola has a superb

worldwide presence of their products which has boosted its financial position of the company

which shows the company strategies are successful (Theriou, 2015).

The weakness in the operations of the company is the diminished impacts of the

advertising strategies being used. Because some of the products have high sugar content it has

been dismisses by some health conscious buyers. The absence of popularity of some of its brands

has prompted a reduced number of brand choices to the customers (Goetsch and Davis, 2014).

The risk, for example, the legal issues firmly confronting organization has gouged the picture of

the organization. The firm rivalry that is being experienced from companies, for example, Pepsi

is making the company to have decreased customer base. There are opportunities that will

undoubtedly the company high among in the beverage industry, for example, the high number of

the effective brands acknowledgment in the worldwide territorial market (Theriou, 2015). This

gives the organization a higher buy out competition that will raise the incomes of the company.

Goals and Objectives

The goals are to keep the clients content with the products so as to keep their loyalty in

acquiring Coca Cola products. By doing this there will be a proceeded with increment in volume

and profits which are objectives for the organization. It is imperative for Coca-Cola to continue

listening to the customer. It would enhance sales to permit more discounts and or coupons on

specific products. Frequently packaged combo meals increase offer of both the food and vendors

so it may be sensible for Coca-Cola to think of discounts on places that serve pizza and Coca-

Cola (Wheelen and Hunger, 2017). Another choice is get a free pizza with such a variety of UPC

Codes of Coca-Cola.
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Coca-Cola ought to stay in stiff competition with other soft drinks. Pepsi is obviously the most

established competitor in this fight. Coca-Cola has the right esteems and their strategies is to

make people in general comprehend they are worried about communities and making the best

choice (Goetsch and Davis, 2014). The organization knows to focus on market, focus on the

needs, and ensure clients are satisfied.

Coca-Cola External Analysis

Opportunities - Coca-Cola Company expresses that "innovation is at the core of all that

they do." The company is environment friendly (Goetsch and Davis, 2014). They have been

included in making quality beverages and advancing their mineral water deals. The Coca-Cola

Company is keeping a consistent familiarity with how to enhance the groups and conditions

through getting the group inhabitants to participate and end up noticeably included (Wheelen and

Hunger, 2017).

Threats - The greatest reason for worry to Coca-Cola is the competitors. Pepsico, Inc. is a

standout amongst the most critical worry for them (Hill et al., 2014). Beside the opposition,

particularly those advancing healthy water drinks with natural product flavors, Coca-Cola has

reduced generation of their major brands and has begun producing diverse cans to lure collectors

of the cans and people who do not purchase their products (Peppard and Ward, 2016). Because

of negative health impacts, numerous customers are shying away from carbonated beverages

with high sugar content. Some have taken to drinking Green Tea by Lipton which is a Pepsico

product. It has been doing incredible so it has badly affected Coca-Cola.

Coca-Cola Internal Analysis

o The strengths of the Coca-Cola Company are:

They are the world's leading brand way above its competitors
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They have an immense operational division.

They usually record profits even in recession times

o The Weaknesses of the Coca-Cola Company are:

The competitors driving the more healthier products

The change in purchasing habits for customers in North America

Recession

Negative advertisements and publicity.

RBV Framework

The Coca-Cola Company has recorded revenue of over 25 billion dollars per yea (Slack,

2015). They are the most profitable and successful soft drink company in the world today.

Pepsico is second and trying hard to overtake Coca Cola. Coca-Cola owns and operates more

than 32 important refreshment concentrates and syrup plants spread in different countries of the

world (Daspit et al., 2017).

The strength of the company is the manner by which independent it is and how well it is

as yet getting along in light of just depending on carbonated soft drinks (Peppard and Ward,

2016). Its weakness is the negative publicity about the pesticides being utilized in

manufacturing their products. It didn't appear to affect sales of their products though. The

operations they run abroad has far compensated for the decline in North America. The outside

deals are up considerably more than some time recently. Dasani mark water by Coca-Cola is up.

It is the third best-selling water in the U.S. It has not made a move towards organic product

enhanced (Theriou, 2015). It has packaging and canning operations that are used for different

items that make juice condensed. So it would be simple for Coca-Cola to begin fabricating at

incredible plenitude yet minimal effort, seasoned waters and other healthier products.
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There are numerous social changes occurring in the United States. The Hispanic populace

is developing and many drink Coca-Cola (Theriou, 2015). It would to the companys advantage

to focus on these social developments and exploit them. The monetary estimation of The Coca-

Cola Company is high. It creates the impression that the remote market is doing great with the

offers of their items (Goetsch and Davis, 2014).

In the event that Coca-Cola could make a promotion battle to change the "carbonated"

standards they need to incorporate more beneficial beverages, the general population could

change over from Pepsi items to Coca-Cola (Slack, 2015). This dispense with the requirement

for the "trial". The Coca-Cola Company is in control right now and necessities to observe

deliberately finished the things they are not doing. It is essential to change with the

circumstances. Coca-Cola using these principles creates plans as well as training programs that

ensure that the company is successful (Theriou, 2015). Coca-Cola creates strategies in all aspect

of their company. There are ten major areas that Coca=Cola focuses their strategies on which

include the following:

1. Diversification-product strategy

2. Retail Strategy

3. Manufacturing Strategy

4. Pricing Strategy

5. Service Strategy

6. IS and Operation Strategy

7. Marketing Communication Strategy

8. HR Corporate Strategy

9. Ethics and CSR Strategy

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10. International Business Strategy

When all these strategies are formulated, Coca-Cola passes their data to all stores in a

specific area and starts the implementation process (Wheelen and Hunger, 2017). This is

accomplished with training courses and by teaching workers on all levels of changes that will be

made to guarantee maximum return on investment from their strategies. Coca-Cola makes it a

point to include every worker in their plans and get them on board with their ideas.

To guarantee that the formulated strategies get appropriately implemented successfully,

Coca-Cola has numerous controls and evaluations set up both externally and internally. These

controls incorporate auditors, statistical analysts, and customer surveys intended to get feedback

with regards to the success rate of the present strategies and determine whether or not changes

are required (Theriou, 2015).The strategic process for Coca-Cola is to a great degree effective on

the grounds that the organization is continually evaluating their environment as well as

revamping their strategies to serve the various customer needs, workers, and the company better

generally (Wheelen and Hunger, 2017). This is a progressing process that has prompted Coca-

Cola being a one of the leading companies in the world.

Strategic issues

Increased competition from Pepsi

Coca-Cola and Pepsi have been in competition in the beverage industry for over a decade

now. The unique strategy that Pepsi utilizes is to diversify its products by creating a blend of

food products healthy food (Goetsch and Davis, 2014). This has seen it surpass Coca-Cola's

market capitalization on some occasion. Pepsi has also heavily invested in research and

consequently you anticipate that it will change its product portfolio soon. Advancement of its

drinks is additionally another key component which will make it have a decent market share. In
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this manner, the competition displayed to Coca-Cola by Pepsi is set to remain a danger for all the

more coming years (Hill et al., 2014). Therefore, it is important for Coca-Cola to diversify its

products, invest in research and strive to produce healthier products in order to remain the leader

in production of beverages in the world.

Health and wellness trend

There has been a moving trend on the wellness and health issues in the world today.

Studies have demonstrated that when a man is served day by day with sweetened soda pops, he

or she increases chances of being overweight or obese (Peppard and Ward, 2016). Soft drinks

might be more beneficial substitutes as a set eating regimen, however are discouraged from

taking beverages as a diet. There has also been a noteworthy worry for elderly individuals about

their diabetes circumstances. This will imply that these individuals will move to low-calorie juice

to help provide food for their cases. The world is encountering patterns whereby most soft drink

customers are presently moving their utilization to weight control plans and items which are

more advantageous and have less negative impacts (Slack, 2015). This can be solved by massive

investment in healthier brands.

Declining sales volumes

The sales volumes of carbonated drinks have steadily decreased in the world today

(Theriou, 2015). This has been attributed to the increase in substitute products that have flooded

the market. This trend is expected to persist for the foreseeable future. It is imperative for Coca-

Cola to make efforts to reverse this detrimental trend. This can be achieved through

diversification of their products, intensive advertisement to help promote the company products

and counter negative publicity of the company brands (Wheelen and Hunger, 2017).
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Lack of market penetration in some areas

There are regions and areas in this world where Coca-Cola has been not able to exploit

(Goetsch and Davis, 2014). This is either because of the legal formalities of these areas or

because of culture and beliefs of individuals found in these regions. Some legitimate specialists

assert that a few items offered by Coca-Cola are not beneficial and that there are chances they

will cause medical problems to the users (Wheelen and Hunger, 2017).

Need to revolutionize the products

The Coca-Cola products were there for quite a while prior, and it appears individuals

have become used to them and are requesting new items to be introduced in the market (Theriou,

2015). The brand Coke has been there since the company began its operations over two decades

ago.

Recommendations to overcome the challenges

Recommendations for increased competition

Pepsi Company applies level extension in its operation and consequently Coca-Cola

ought to apply a vertical development handle (Gamble and Thompson 2014). Thirty seven

percent of products sold by Pepsi are beverages, and this implies Coca-Cola needs to concentrate

more on the beverages and related business in order to expand its market share (Peppard and

Ward, 2016).

Recommendations for health and wellness

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This organization ought to develop means through which it will give industry initiative in

the health areas (Slack, 2015). In business sectors dealing with baby products, the organization

should concentrate on advertising water and tea beverages which have less sugar and sodium. In

a market that is dominated by young people, the organization should concentrate on giving sports

drinks, energetic beverages, and organic drinks (Theriou, 2015).

Recommendations for declining sales

The company should not just concentrate on carbonated soft drinks. It should put more

concentrate on bottled water and noncarbonated beverages, for example, energy drinks. This will

make it keep up the market leadership in the refreshment industry. The organization ought to also

create awareness on the brands it is putting forth (Hill et al., 2014). This will eliminate the issue

of being banned from working in some regions of the world. When the people get the facts about

the product, they would avoid believing in misconceptions about the brand. The company ought

to also attempt to approach creative means which will ensure production of new products in to

the market (Peppard and Ward, 2016).

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Reference List

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Gamble, J. E., & Thompson Jr, A. A. (2014). Essentials of strategic management. Irwin

Mcgraw-Hill.

Goetsch, D. L., & Davis, S. B. (2014). Quality management for organizational excellence. Upper

Saddle River, NJ: pearson.

Hill, C. W., Jones, G. R., & Schilling, M. A. (2014). Strategic management: theory: an

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Peppard, J., & Ward, J. (2016). The strategic management of information systems: Building a

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Theriou, N. G. (2015). Strategic Management Process and the Importance of Structured

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Wheelen, T. L., & Hunger, J. D. (2017). Strategic management and business policy. pearson.