Aligning Operational Needs with Business Strategies

Aligning Operational Needs with Business Strategies

Porter’s Five Forces

Porter’s five factors drive the competitive environment and can be used to compare the competitive position of different companies. They include supplier power, the threat of new entrants, customers’ power, competitive rivalry, and the threat of substitutes (Baah & Bohaker, 2015). After analyzing these factors, the company then comes up with ways to respond to the forces and help the company stay profitable. Porter’s five forces drive Coca-Cola’s decisions based on industry and competitors’ actions.

The Threat of New Entrants

The threat of new entrants in the beverages industry is low. That is because entry into the industry requires high fixed capital, extensive labor, and aggressive marketing efforts (Baah & Bohaker, 2015). New entrants will have to construct new distribution channels to help the companies market their products. Besides, there are few bottling companies, which means new entrants will have to set up their plants. Overcoming brand loyalty is another tall order that new entrants have to overcome. A low threat of new entrants means there is intense competition. Do you need urgent assignment help ? Contact us. Our team of experts is ready to help.

Suppliers’ Power

There is a low supplier power in the beverages industry. That is because the ingredients used to make the products are standard and readily available (Baah & Bohaker, 2015). For instance, the fructose syrup and food color used in making beverages are readily available. That implies that suppliers have limited power in determining the prices. With limited supplier power, there is a low degree of competition.

Power of Customers

The power of customers in the global beverages and drinks industry is high. Coca-Cola sells its products to large restaurants, retail stores, and grocery stores (Baah & Bohaker, 2015). These buyers can negotiate for low prices because they buy in bulk. Besides, these buyers buy daily and have other options, hence higher power. High customer power translates to increased competition.

Threat of Substitutes

The threat of substitutes in the soft drinks industry is low. Some common substitutes, such as milk and water, have existed for a long time; hence, they cannot edge out soft drinks. Besides, Coca-Cola spends significantly on marketing, making it hard for new brands to replace them (Baah & Bohaker, 2015). A low threat of substitutes implies a low degree of competition.

Competition Rivalry

Competitive rivalry in the industry is high, with Coca-Cola and Pepsi being the main rivals. The two companies hold the majority of the global soft drinks market. To edge each other, the companies engage in aggressive marketing efforts. Besides, Pepsi and Coca-Cola use differentiation as a competition tool. Such huge rivalry heightens the competition between the two companies.

Leadership Model at Coca-Cola

Coca-Cola’s leadership model aims to nurture the culture of employees to align with the mission and vision of the company. The company views its employees as leaders, and they strive to ensure that the employees build such confidence. After setting an agenda, Coca-Cola managers help individual employees to achieve the goals.

For instance, managers have created an environment of trust and safety. People are encouraged to take risks but have a backup if they fail. In case of failure, managers do not bash them but encourage them to be better next time (Coca-Cola, n.d.). The strategy creates a sense of respect, which drives productivity.

Moreover, the company targets the best talent and trains them to be better. Coca-Cola has a diverse workforce across its global plants (Coca-Cola, n.d.). The diverse talent pool offers the company a much-needed challenge, which helps the company to fulfill operational gaps.

There is a need for Coca-Cola to borrow from external partners. That can be achieved by copying from successful models applied by other companies such as Pepsi. Staying connected with the world will help Coca-Cola adopt new trends used by competitors.

Assessing Leadership Effectiveness

A company’s profitability is one of the primary ways to assess a leader’s effectiveness. If the company is profitable and makes new clients, the leader is effective (Panel, 2021). Besides, an overwhelmingly positive reputation points to successful leadership. A company that keeps being recommended is likely to be successful.

Another metric that indicates successful leadership is the growth of the team. More often than not, leaders involve their teams so much that they leave them with limited opportunities to grow (Panel, 2021). A good leader should learn to allow their followers to perform tasks by themselves, make mistakes, and learn from them. Self-enterprise is crucial for innovation; hence, leaders should foster it.

Also, measuring customers’ satisfaction is crucial when determining a leader’s effectiveness. In this case, the common adage ‘an employee is as effective as the weakest team member’ applies. A happy and talented team is essential in boosting the sales of a business. In fact, research shows that a customer is likely to remember the experience they had rather than whatever they paid (Madanchian et al., 2017). Therefore, the business’s reputation and reviews indicate the type of leader in a business organization.

Recommendations

Leadership Model Changes

There is a need to match employee and managerial expectations to improve leadership at Coca-Cola. There is often confusion between what a leader deems as effective leadership and what employees expect. Managers should sit with followers and derive an assessment model that will act as a benchmark. The model should highlight the leaders’ and followers’ expectations.

Aligning Operational Needs with Organizational Strategies

Change management is critical to aligning operational needs with organizational strategies. It is all about reviewing a company’s operations and structures to fit customer needs (SHRM, 2015). Coca-Cola should evaluate the changing customer needs and improve their beverages. That will help them overcome the ever-increasing competitive rivalry with Pepsi.

Another way to align operational needs with organizational strategies is through the adoption of diversity, equity, and inclusion. The primary objective of diversification is to incorporate diverse ideas into corporate growth (SHRM, 2015). Coca-Cola should go beyond the traditional diversity issues such as gender and race. Diversity, in this case, also involves examining an employee’s upbringing environment and how this will impact workplace behavior.

References

Baah, S., & Bohaker, L. (2015). The Coca-Cola Company. Culture, 16, 17.

Coca-Cola. (n.d.). The Coca-Cola Company Our business strategy, priorities, and leadership model Growth Stage 1 Growth Stage 2 Growth Stage 3. https://www.coca-colacompany.com/content/dam/journey/us/en/policies/pdf/employment/coca-cola-business-strategy-leadership-model-december-2020.pdf

Madanchian, M., Hussein, N., Noordin, F., & Taherdoost, H. (2017). Leadership Effectiveness Measurement and Its Effect on Organization Outcomes. Procedia Engineering, 181(181), 1043–1048. Science Direct. https://doi.org/10.1016/j.proeng.2017.02.505

Panel®, E. (2021, May 21). Council Post: How To Measure Leadership Effectiveness: 14 Essential Tips. Forbes. https://www.forbes.com/sites/forbesbusinesscouncil/2021/05/28/how-to-measure-leadership-effectiveness-14-essential-tips/?sh=706c034a2823

SHRM. (2015, September 14). Aligning Workforce Strategies With Business Objectives. SHRM. https://www.shrm.org/resourcesandtools/tools-and-samples/toolkits/pages/aligningworkforcestrategies.aspx

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A 700- to 1050-word proposal to the company of your plan to align the operational needs with business strategies based on your analysis. Include the following in your submission:

Aligning Operational Needs with Business Strategies

An analysis of the company based on Porter’s Five Forces
An analysis of the effectiveness of the leadership model the company is currently using
Consider the current leadership style or styles in place at the company.
Determine the effectiveness of the leadership style/s and whether an alternative style/s would be more impactful.
Assess how to determine effective leadership. What makes a leader effective or ineffective?
Consider sources of managerial power when leaders are influential.
Recommendation for the following actions:
Leadership model changes
2- to 3- steps needed to align operational needs with business strategies identified in Week 1