QualityStrategies and Deployment
QualityStrategies and Deployment
Ittakes quality strategies for a company to dominate the business worldfor an extended period. One might not understand how some greatcompanies have been gaining profit since decades ago and are stillable to keep up with the upcoming new competitive companies. A goodexample of a company that has made use of quality strategies is theCoca-Cola Company. The company was found in the year 1892, by apharmacist known as John Pemberton. Since then, the company hasgained popularity all over the world, and it has markets all overapart from North Korea. This company has been producing varieties ofnon-alcoholic beverages commodities each year. Examples are seven up,minute maid, smoothies, and many others.
Thecompany has been applying unique strategies in its management processfor quite a long time now which has proved to be helpful in gainingprofits while selling at an affordable price. To begin with, thestart of the Coca-Cola Company itself was unique. John Pembertonpreviously wanted to come up with Coca wines, which are a combinationof cola, cocaine, and alcohol. This, however, impossible since aprohibition law on the manufacture of alcoholic drinks was passed.The manufacturers of beverages were recommended to producenon-alcoholic drinks instead (Gong, 2013). John Pemberton had hisnephew approach a pharmacy with different concoctions that he hadcreated. After some time, Pemberton got a concoction that waspreferred by many, who congregated at the store to taste differentformulas. This method is known by only five people in the world. Thetrade secret policy used by the company has prevented the use of themethod by potential competitors till to date and is the primaryfactor that keeps the Coca-Cola Company at the top of the businessworld.
Thecompany is also unique in its packaging. The Coca-Cola package bottleis different from other bottles of various competitors. After thirtyyears since the company was found, Coca-Cola Company was receivingtoo much competition from other enterprises that used differentformulas and mimicked the Coca-Cola packaging bottle. An example isthe Softa Soda Company which produced a beverage that was almostsimilar to Coca-Cola regarding taste and packaging. This company soldits products at a lower price hence Coca-Cola consumers resorted toeach since they thought it was a cheaper brand of the Coca colabeverage. Consumers were not able to differentiate other productsfrom the Coca-Cola products hence the company was losing profit. Todo away with this problem, the company designed a bottle that isunique. The design of this packaging bottle mimics the shape of thecocoa pod, which is a product that is not even involved in makingCoca cola concoction (Alan, 2013). The competitors thought that theCoca-Cola Company used the cocoa pod in producing the beverage whichwas not the case. Since the introduction of the new bottle design,consumers can differentiate the pear shaped Coca-cola packagingbottle from other clear glass bottles of other companies.
Anotherstrategy that the company used is that it maintained a unique logo.The Coca-Cola Company came up with a logo, which they standardized inthe year 1923. A unique features about this logo is its timelessness.Frank Mason, who was the bookkeeper and an assistant to the founderPemberton, came up with the idea that the logo of the company shouldbe written in the Spenserian Script. He thought that the logo woulddifferentiate the company’s products from those of the competitors.The company has been using the same logo on all its productcommodities for over one hundred years (Stead, 2014). The uniquenessof the logo makes it difficult for competitors to keep up. Moreover,the logo cannot be vandalized or mimicked by other false companies.The consumers of Coca-cola are used to seeing the distinct logo onCoca-cola products in such a way that they cannot confuse otherbeverages with the Coca-cola drinks.
Acommon strategy that is a must for all companies, which the firm usedis diversification. However, diversification can also fail when acorporation does not recognize its core competencies. The mission ofthe Coca-Cola Company was to come up with beverages that arepreferred by most consumers. The company managed to come up with aperfect concoction. After some time, the manufacturer realized thatevery customer could not use the drink. For example, the beveragecould not be consumed by children due to the high amount of gas itcontains. The company decided to produce beverages that will satisfya lot of consumers depending on their needs and interests. Thecompany then began to create Coca-cola drinks with different tastesand different amounts of preservation gasses. Examples are Fanta,Stoney, Crest, Sprite and many others. With this kind ofdiversification, the company met the needs of many such as youngchildren and individuals who are ulcer tic. The Company does not onlyfocus on gaining profit but also fulfil the needs of all consumers(Stead, 2014).
TheCoca-Cola Company developed its management quality process in itssystem which has proved to be beneficial. The quality managementprocess is a technique in which the company uses to communicate toemployees. This method improves the workers’ action hence resultingin quality production and services. A healthy employer-employeerelationship is an important tool in strategic marketing. The companyachieves most of its goals by motivating employees to aim for aparticular objective. In order for the employees to focus on workingtowards making the company better, they have to be appreciated forthe good job that they do. The managing team ensures this by awardingthe employees and giving them various incentives. This way, even thepoor performing employees will be challenged and soon work better sothat they can be awarded too. Besides that, the managing team has tosupervise the activities of the employees on a daily basis. This isimportant because it keeps the manager informed on issues concerningthe company daily. The supervision of employees and their dailyerrands helps to keep records such as profits, losses, consistencyand many others. In simple terms, communication with employees willenable the manager to know all issues related to the company. Theremay be cases where individual employees would underperform theirerrands, which will bring the business down. In this case, dailycommunication with other employees will let the managing team knowwhen to replace the poor performing employees. The Coca-Cola Companychose this quality management process because it perfectly matcheswith all of its operations.
TheCoca-Cola Company applies the Kaizen model strategy to achieve thequality management process. The Kaizen model strategy comprises ofthree factors. The company has all the three aspects to implementtheir quality management process. For starters, the company uses thehousekeeping approach. This method ensures that all the workers inthe company come together to make the working environment conducivefor every employee. Housekeeping is the first step to ensuring thatthe employees have a common goal. Through applying this strategy, theemployees get used to working on a common purpose when running theirdaily errands. This makes it easier when the company is focusing onproducing specific product commodities. Another step involved in thismodel is waste elimination. Many companies manufacture products whichleave a lot of waste material behind (Alan, 2013). The Coca-ColaCompany has been eliminating waste products not by getting rid ofthem but by using them to manufacture different products. This meansthat the materials used to produce these beverages do not go towaste. Instead, they are used to generate a variety of Coca-colaproducts such as the Coca sweets and the Coca-cola powder known asjuicy cola, which is mixed with water to obtain Coca-cola drink.Through this application, the company gains profit at a faster ratethan the rate at which it makes losses. Lastly, standardization isanother strategy that the Company applies (Gong, 2013). Through theuse of standardization, the employees manufacture a specificpercentage of beverages every day. Standardization sets a minimum andmaximum producing limit for the nonalcoholic beverages. This meansthat the Company focuses on consistency of profits gained. Some ofthe reasons why the company applies these strategies are that, theyset goals for employees, set standards for employees and helps directthe corporate culture.
Justlike every other company, Coca-cola too has faced some challenges. Tobegin with, most Coca-cola beverages contain too much sugar. TheCompany’s products are being blamed for obesity in almost allregions of the world. For example, in the United States, fiftypercent of the population is obese due to over consumption ofproducts with sugar especially the sweetened beverages. To solve thisproblem, the government is resorting to hiking the prices of thesecommodities. When this happens, the Coca-cola products consumers willturn to other beverages. This means that the purchase of Coca-colaproducts will decline hence causing the company a significant loss.
Anotherchallenge, which the establishment encounters is the rivalry fromother beverage companies. For quite a long time, other companies havebeen producing products that are almost similar to the Coca-Colaproducts. Many consumers have turned to these alternative beveragesbecause they are cheaper than the Coca-Cola products. The Coca-ColaCompany, therefore, has to diversify its products after a short whileto keep up or avoid competition from the other companies (Gong,2013). To prevent this problem, the company changes its design bottleseveral times to make Coca-Cola products stand out from the others.Bottling the cola products is yet another challenge that the firmfaces till to date.
TheCoca-Cola Company is one of the most successful conglomerates in theworld. It has dominated the business community for over a hundredyears despite the numerous competitors emerging every year. Thecompany uses the quality management process to achieve its goals.This process is essential to the enterprise because it establishesvisions for employees, sets goals for them and also sets standardsfor them. The corporation has faced some challenges one of which iscompetition from other beverage companies, but it has still managedto stay on top.
Alan,R. (2013) StrategicManagement: Formulation, Implementation, and Control in a
Gong,Y. (2013). Globaloperations strategy: Fundamentals and practice.Berlin: Springer.
Stead,W. (2014) SustainableStrategic Management. London.Routledge.