Using Teams in Production and Operations Management

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Table of Contents

Introduction
The company’s production or operations management
Coca Cola’s use of teams in production and operations management
Company’s ability to adjust
Reference List

Introduction

Coca Cola Company is a global multinational with operations in many countries. The company is a manufacturer and retailer of various beverages and non-alcoholic drinks. All withstanding, the company is well known for its flagship brand Coca Cola although it has more than 500 brands.

As far as a wider global presence is concerned, the company has 500 brands in more than 200 countries (Coca Cola, 2011, p. 4). This therefore underlines its desire to conquer more markets around the world because it has been coming up with new products and brands that can suit different market interests.

As far as its business is concerned, the company operates a franchise system that has proved to be successful in the markets that it has a presence. In this case, it only produces syrup that is sold to different bottlers that have exclusive rights throughout the world.

When it comes to financials, Coca Cola Company is listed on the New York stock exchange market and is part of other indexes. As of 2010, the company recorded revenues of US$ 35.119 billion (Coca Cola, 2011, p.12). The company’s operating income in the last financial year was US$ 8.449 billion while its net income was recorded at US$ 11.809 billion (Coca Cola, 2011, p. 15).

As far as its asset portfolio is concerned, Coca Cola Company is valued at US$ 72.921 billion. Based on the fact that the company operates in many countries around the world, it employs 139,600 people (Coca Cola, 2011, p. 9). To enhance its operations, it has other subsidiaries that have enabled it to diversity thereby serving its customers and market well.

When assessed from a market share point of view, Coca Cola Company has a market share of around 50% while its share in the US has increased to almost 42%. This means that the company is still a major player in the global beverage industry. To continue establishing itself as a force to reckon with in the market, it has introduced new products to suit individual markets because of different global diversity issues.

The company’s production or operations management

Coca Cola Company has embraced the best production and operation management practices and that is why it has continued to be successful as time goes by. It is not a mean task to have operations in more than 200 countries and coordinate them effectively which shows that the company is doing well as far as operations and production management are concerned.

As far as production is concerned, the company operates a franchise system that it has relied on to reach its wide market. This means that the system needs effective management in relation to overall brand strategy (Tucker, 2009, p. 23).

The company has built a good strategy on concentrate production that it sells to different bottlers for production of beverages.

This is not an easy task because the concentrate syrup is supposed to be supplied to more than 200 countries that it has a presence. All this withstanding, the company’s franchise model has come under pressure because of intensifying competition that has been necessitated by health conscious customers who want health oriented drinks.

To be successful as far as operations and production management are concerned, the company has occasionally rejuvenated its core product line for long term sustainability. In this case, to expand its operations in new markets, it has relied on key acquisitions mostly in the non-carbonated drinks sector. This has been made with an aim of expanding its presence in the growing market.

As a matter of fact, this has been coordinated by a strong and dedicated team for efficiency and success. Business management that is oriented towards operations management is the strategy that the company has used to grow and expand its market in recent years.

This means that it has increased its cooperation with key partners’ to streamline its operations. The company prides itself in upholding the quality promise that has enhanced customer loyalty all along from diverse and distinct customers (Coca Cola, 2011, p. 11). All this can be well explained from its concentrate production, bottling and product delivery that is unique in the market.

Production management is evaluated through software that minimizes production downtime that can be costly to a global company like Coca Cola. This has therefore enabled the company to serve its market on a global scale without any problem which can be tiresome without such measures.

The company’s approach to pricing has been very good because it has enabled its partners and bottlers to continue being committed to its true business ethics and values. Sustainability has been embraced with a long term objective of ensuring that the company’s production activities are not affected in any way thereby disrupting market activities.

In this case, the company is always flexible as far as its business model is concerned which enhances operations management because managers are able to come up with alternatives that will enhance productivity.

All this withstanding, Coca Colas production and distribution system has been unique in the market thereby enabling it to realize different opportunities on a global scale. It should be understood that as much as issues might arise as far as the company’s operations and production management is concerned, it has been successful on a wider business scale (Plumb, 2009, p. 31).

Coca Cola’s use of teams in production and operations management

Coca Cola’s use of teams in production and operations management has been reinforced by the fact that the company is the world’s largest producer and distributor of Coca Cola products. In this case, strategic management has been well managed by teams to ensure and enhance sustainability.

Most of the company’s programs have been adjusted as time goes by to accommodate the changing business environment which has therefore enhanced the use of teams. Coca Cola uses teams effectively to reduce the impact of the changing business environment on the company’s operations management.

Because it relies on a franchise system to do business, teams have been well coordinated to ensure that everything is running well and successfully. The use of work teams has mostly been embraced in production activities (Coca Cola, 2011, p. 15). This has been widely used in concentrate production because it is at the core of the company’s success.

In this case, the worldwide management team has ensured that local operations are organized in good and coordinated teams for enhanced production of Coca Cola products in different markets. For enhanced production, teams are embraced and given enough time to execute their ideas so long as they are in tandem with the company’s objectives and expectations in relation to set targets (Plumb, 2009, p. 62).

Proper production and operations management requires good teams for execution of strategies and this is what Coca Cola has capitalized on for success and long term sustainability. Management teams are competitively selected for each country to be in charge of operations thereby serving markets well.

In this case, the company’s operations are divided into six operating units that are in charge of different markets (Coca Cola, 2011, p. 27). Most notably, these teams produce an attractive combination that has kept the company going as far as its operations are concerned. The use of teams has been capitalized on for individuals to make final and good decisions that will enhance productivity.

Company’s ability to adjust

Coca Cola is a global company and this means that it operates in a unique and competitive business environment. The recent global financial crisis posed a lot of challenges to the company based on the fact that it has operations in many countries around the world.

The financial crisis affected incomes in a great way thereby compromising the company’s sales margins. In this case the company should be able to communicate effectively with its customers and employees on any changes that will be made to enhance sustainability.

The company was not hurt by the global financial crisis in a broad way because it was able to adjust effectively through proper communication. It should be known that the company has the ability to adjust its approach to pricing which gives it an advantage to respond to emerging market needs and trends. This is because it only sells concentrate to its bottlers and not the finished product (Coca Cola, 2011, p. 35).

The company’s ability to respond to any financial crisis is enhanced by its corporate social responsibility programs that have endeared it close to its customers. This means that customers have always stood with the company even in hard times.

Employees are put at the heart of the company’s operations which means that they are always in contact with the top management which promotes communication thereby enhancing its ability to respond to different problems. This is because employees have felt that they are part of the company which implies that any problem will be shared together as a family.

The company’s greatest strength is in its ability to respond to emerging market challenges which has been as a result of its experience in diverse and distinct markets (Coca Cola, 2011, p. 17).

Creativity and problem solving skills have been instilled in employees to make them good ambassadors of the company’s products in different markets. This means that employees can be able to interact with different customers thereby informing them on the crisis without compromising products and services.

Reference List

Coca Cola. (2011). Our Company. Web.

Tucker, S. (2009). Coca-Cola’s $2.4bn China deal at risk. Hong Kong: Financial Times.

Plumb, T. (2009). Coca-Cola to unveil mini cans in D.C. New York: Harper Business.

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