Performance Management System
Introduction
The product, which was only a thought and then became one of the most selling products, the birthplace of Coca-Cola is Atlanta, was on the date of 8 May 1886, and was produced by Dr. John Stitch Pemberton, a pharmacist. It was first sampled and at the pharmacy before being on sale. In a day, nine bottles used to see and the drink soon got popular due to the advertisement of ‘Delicious and Refreshing’, it is a slogan which is still alive.
The brands of Coca-Cola, which are present in Pakistan, are Cola-Diet, Minute Maid, Sprite, Fanta and Kinley. (Worldofcoca-cola.com, 2018)
Let us look in to coco cola’s PMS in detail.
Organizational Strategy
Coco-Cola’s Purpose
The purpose of the company to expand it expands the name of coco cola worldwide and makes coco cola the most favorite drink amongst the consumers. The company is striving to maintain the high quality for its drink and try to make it available in the shelfs of almost every place in the distributed countries. The purpose of the company is to become market giant as far as their coco cola is concern by providing the consistent taste and quality to its customers.
Coco-Cola’s Ambition
“It is our ambition due to which we are able to construct the way to our goal which is to produce the good quality and affordable products” People: To be a nice place so that the people there want to do better and be better
- Portfolio:To produce the product which are of good quality and can fulfill the necessities and thirsts of people?
- Partners:A melody of the customers and the providers which can soothe.
- Planet:To be a proper citizen of the society who doesn’t do wrong and can actually help in the building of good communities.
- Profit:Provide the rightful share to the shareowners as it is theirs and minding what our responsibilities are.
- Productivity:Be an efficient, prosper, productive and optimum organization (Uk.essays.com, 2018)
Coco-Cola’s Purpose
“To fulfill our purpose is the start of our journey, on which we have to endure but it also gives the standard to us and acts as a ruler which settles us”.
- To make people happy
- To make people relish…
- To create difference and equality.
Systems of Coco Cola
Defining and measuring results at coco-cola is very transparent, they use some of the techniques for measuring and defining results. Let us look in to each in detail.
The company is using BCG matrix for measuring results for its product. Below is the BCG matrix of coco Cola Company.
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Question Mark
Fanta apple and Fanta grapes are recently launched by coca cola. They are in their introductory stage, at present they have growth rate as everybody wants to try these new flavor. If they succeed to gain market share they will soon become the star product but if it fails, it will become a Dog product. As per the person we interviewed he said the that Fanta apple has the market and soon it will generate profit for them but he is not sure about the Fanta grape so they have to be very careful in determining to invest or not in Fanta grape.
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Star
Fanta, sprite, and coca cola are the star products of coca cola. They have high growth rate and have a good market share so generate heavy cash.
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Cash Cow
Coca cola is also the cash cow of the company as it generates heavy profit. It the most consumed product, have huge market share, and have growth rate. Coca cola is a mature product but company still making strategies to maintain its position in the market.
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Dog
Kinley and Rani are their dog products. As in market there are so many alternative for mineral water so it is not successful having low growth and market share. They relaunched rani; previously it was Minute maid but not get success as expected. Both products are unable to generate profit so are the failure for the company. (Adamkasi, 2016)
Apart from BCG, Matrix Company is also using some SWOT techniques to major the results of the company. Below is the SWOT of coco cola:
SWOT Analysis of Coco Cola
Strengths:
- Globally recognized Brand
- Customer Loyalty
- Strong Marketing & Advertisement Campaigns
- Strong Distribution Channels
- Large Market Share
Weaknesses:
- Seen as an unhealthy product
- Use of Fossil fuels to make bottles.
- The failure of many brands
- Undiversified Product Portfolio
Opportunities:
- Growing Demand for healthier Products
- Technological advancement
- Diversification
Threats:
- Large competition
- Health Hazards of saturated carbonated Drinks (i.e. causing obesity)
- Exchange rates in different markets(Kasi, 2018)
Coco-cola Company is also using Business model to define the results in one place. Let us look in to some of the elements that considered at coco-cola.
Evaluation of Business Model
Appraisal & Compensation At Coco Cola
Performance appraisal is the key part of every organization because it allows company to find who their best employee is and this method allow company to motivate their star players so that they can retain them in the future as well.
Coco Cola is using very transparent they do performance appraisal annually. Initially, the company give the goal to its employees and major their work performance on particular goal throughout the year or so and then the employee who achieved the goal according to the define measures by the Management of the company received the appraisal at the end of the period.
The appraisal system in Coco Cola is very fair as they see the worth of their employee then compare it with market and give them appraisals accordingly. By this action, the company wants to make their employees more committed and confident towards the company. (UK.Essays.com, 2015)
Rewards of Coco Cola on the basis of years:
- Creating changes in salary.
- The jumping of grades
- The change in designation
- AIP for the performance of business.
- PRP
- Making the move.
- Monthly hall turning, good performance
- The employee who is of the quarter
Coco Cola is also offering the scholarships and visit to other countries as part of their appraisal program to make employees feel good, confident, and committed. (Referenceforbusiness.com, 2018)
Implementation Process
Communication Plan:
Perfect and effective communication plan is important for every company so that they can measure whether the goals has achieved or not, as far as coco cola is concern their communication plan is also very transparent like the other systems. Let us look in to this in details. (Coca-colacompany.com, 2016)
The communication plan includes:
- Company’s Employees.
- Donors
- Partners
- Consumers
- Clients
Messaging:
Since we know that, the technology advancements are taking place day by day and same goes to Coco Cola they are taking advantage of technology advancements and communicate with their role players with messaging. The company is having the big data of its customer’s clients etc. using that big data company is able to send messages to them occasionally or when needed.
Email:
The role of email in a company can never be underestimated. Likewise, in Coco Cola, they use email service to communicate with their employees and core clients when they find the need of discuss anything or giving any task or inform anything.
Sessions/Meetings:
One of the finest way to communicate with the employees, panthers or clients is arranging a meeting at Coco Cola, which allow them to talk face to face and discuss the thing, which is important for current time and future as well. These meetings are arranged to motivate employees sometimes and communicate the goal of the company with them.
Campaigns:
This part of communication plan is usually used for the customers for the company, through ads and campaigns the company gives information to the customers about their products and guides them on new things added or any change that has been done in the product. These ads are also made to gauge the customer attention and make them loyal with the company.
Campus Visit:
Company also visit some campus includes colleges, university etc. to promote their product and give the free samples to the consumers. By this way, the company also try to gather big data and take the reviews of consumers on their products.
Appeal Process
These are six step, which Coco Cola is using
- Identifying the prospects also gaining the data
- Making a proper approach
- Developing a grooming plan
- Personalizing the approach
- Ensuring the acknowledgement of gifts and accounting
- Evaluating what customers want
Employees Development Considerations
Employee development consideration is one of the most famous and most important part of Coco Cola Company. They develop their employees by various tannings.
First, of the entire company take the information on what kind of training is important for the development of the employees then they take decisions. Below are some of the techniques used by company for employee’s development. (Staff, 2017)
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In-House Training:
This kind of training is conducted inside the company, the motive of this kind of training to motivate the employees and give them proper guideline on the tasks and goals. These kind of tannings are also the source of guidance for the employees on how to get work done and the discussion about the timelines.
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Out-Side Training:
This kind of training is conducted out side the company premises. The motive of this kind of training is to allow employees to learn new things, which are not present currently in the company. The purpose of company to send their employees in such trainings is to provide them information on something new and something which is about to adopt by company in near future.
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Designation Change/ Department Shift:
The employee development consideration also includes the promotions of the employees to new designations. This step allow company to set the competent employee to the competent place. This development program also includes department shifts for many employees. This step is very important for the development of the employees because if the employee stuck in only one position at the company he/she will never grow and also this step is very important for the motivation of the employees, they feel committed and confident with the company’s policies.
Conclusion And Recommendations
- Keeping the above market scenario, we draw this conclusion that Coke has to look out for the competition so that they can also give the competition.
- They should put more color to their advertisement so that more and more people see it.
- They should allow the customers to review their opinions so to get more information.
- Value creating and operational activities must be performed under due surveillance of the Company so to maintain and enhance the Brand Image.
- The Company must develop aggressive strategies based on good market research and with due conformance to the local culture, so to counter the challenges in face of potential threats be it competitors or market volatility.
- To boost the market share, the company must diversify their portfolio by adding healthy products to cater the emerging health conscious market.
- Lastly, the company must create and maintain the Goodwill of customers by being proactive to cope with the market trends as well as customer demands.
Also Study:
Business Environment of Coca Cola
Referencing
- (2016, October 8). BCG Matrix for Coca-Cola Company. Retrieved from https://bcgmatrixanalysis.com/bcg-matrix-for-coca-cola-company/
- Coca-colacompany.com. (2016, April 27). Five Strategic Actions. Retrieved from https://www.coca-colacompany.com/stories/five-strategic-actions
- (2018). BCG Matrix for coca cola. Retrieved from https://marketingmixx.com/marketing-basics/bcg-matrix/469-bcg-matrix-for-coca-cola.html
- com. (2018). The Coca-Cola Company – Company Profile, Information, Business Description, History, Background Information on The Coca-Cola Company. Retrieved from https://www.referenceforbusiness.com/history2/32/The-Coca-Cola-Company.html
- Staff, J. (2017). Our People. Retrieved from https://www.coca-cola.ie/about-us/our-people
- Essays.com. (2015, March 23). Coca Cola Performance Appraisal System Management Essay. Retrieved from https://www.ukessays.com/essays/management/coca-cola-performance-appraisal-system-management-essay.php
- essays.com. (2018). The Introduction Of Coca Cola Company . Retrieved from https://www.ukessays.com/essays/marketing/the-introduction-of-coca-cola-company-marketing-essay.php
- Worldofcoca-cola.com. (2018). About Us. Retrieved from https://www.worldofcoca-cola.com/about-us/coca-cola-history/