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Monday, June 14, 2010

Value Chain Analysis of coca cola

Our Suppliers
Our suppliers include those business partners who supply our system with materials including ingredients, packaging, and machinery, as well as goods and services. At a minimum, all authorized and direct suppliers must comply with all applicable laws and regulations, including those concerning child labor, forced labor, abuse of labor, freedom of association and collective bargaining, discrimination, wages and benefits, working hours and overtime, health and safety, and environmental practices. Thus Coca Cola Company gives a lot of importance to its suppliers because they in return provide quality goods and quality services.

Suppliers
The Coca-Cola Company's Supplier Guiding Principles (SGP) communicate to suppliers to The Coca-Cola Company and suppliers authorized by The Coca-Cola Company our values and expectations and emphasize the importance of responsible environmental and workplace policies and practices that comply, at a minimum, with applicable local laws and regulations. Recognizing that there are differences in laws, customs and economic conditions that affect business practices around the world, we expect our suppliers to follow the spirit and intent of applicable laws and regulations, as well as the Company's SGP.
The SGP are a vital pillar of our Company’s efforts to ensure that our business partners respect labor rights. They contain requirements that our suppliers must comply with regarding freedom of association and collective bargaining; prohibition of child labor; prohibition of forced labor and abuse of labor; elimination of discrimination; work hours and wages; provision of a safe and healthy workplace; and protection of the environment.
The SGP are implemented through: a) open communications to all existing and potential suppliers of TCCC around the world; b) making them part of all agreements and purchase orders with every direct supplier to TCCC; and, c) assessing suppliers of packaging, ingredients and trademarked materials for compliance with the minimum requirements, with a focus on correction of shortfalls.
The person within the Company who authorizes and/or selects the supplier is held accountable for supplier compliance. Division Presidents and appropriate function leaders of TCCC are responsible for ensuring that their people are following internal processes and continuously improving performance. In addition, our Global Labor Relations and Workplace Accountability group is responsible for policy and process design, implementation support and overall governance.
TCCC expects suppliers to develop and implement appropriate internal business processes to ensure compliance with the SGPs, and to demonstrate compliance with the SGPs at the request and satisfaction of the Company. TCCC routinely utilizes independent third-parties to assess suppliers' compliance with the SGPs, and the assessments generally include confidential interviews with employees and on-site contract workers. If a supplier fails to uphold any aspect of the SGP requirements, the supplier is expected to implement corrective actions. The Company reserves the right to terminate an agreement with any supplier that cannot demonstrate that they are upholding the SGP requirements and has done so.
675 supplier personnel were trained in 2006 as opposed to 150 personnel in 2005, a 350 percent increase. We also assessed 1,029 supplier facilities as compared to 1,016 in 2005, a one percent increase. Corrective actions were required for issues identified during the assessment.

Our Customers
Our customers include large, international chains of retailers and restaurants, as well as small, independent businesses. Some of our customers are major corporations as globally familiar as the name Coca-Cola; others are the corner market or the local pushcart vendor.
Whether customers are large or small, we work with them to create mutual benefit. Helping them to grow their businesses ultimately help to grow the company as well. Together with our bottling partners, we serve our customers through account management teams, providing services and support tailored to their needs.

Coca-Cola Retailing Research Councils
Coca-Cola also run Retailing Research Councils, these councils provide research into issues affecting the food retail industry. These types of research councils provided very fruitful results to company and also give them direction for future work as well. Our collaborative customer relationship process has been refined in three lead markets--Japan, Mexico and Switzerland--and is now being implemented with key customers in other markets around the world. In an increasingly complex retail environment, we work with our customers to improve shopper marketing and supply chain collaboration and to accelerate innovation in order to provide superior beverage selections to every consumer on every shopping trip.

Customer Development and Training
We provide support to smaller customers to help make their businesses more efficient and profitable. We also work with customers to broaden the range of beverages they offer, provide nutritional information and ensure our beverages are marketed responsibly.
When a company provides training and knowledge to its customers, it motivates them and makes them loyal. These types of training and knowledge enhancing programs make the employees updated with the modern trends in the society.

Demographic environment
Demographic environment of any country is having a great influence on the purchasing pattern of consumers. It involves age, gender, race, occupation, location and density of population. It varies from country to country. Coke in Pakistan is focusing on the demographic variables of its customers in order to create a positive image in their minds and position their brand also. For example coke is having its focus on the mobile generation who are born in 1980’s.

Economic environment
Economic pattern of any country determines which products and brands would be preferable by customers by seeing their demand and income level. CCBPL is having a great impact of economic environment as there is a great difference in economic conditions of every region of the world. So it promises to deliver that service to its customers by keeping in mind their economic condition.

Natural environment
Natural environment is also playing a vital role in determining the way through which it can provide its product and services to customers. For example natural environment can influence the preparation of mixture of coke if shortage of sugar cane production exists.


Technical environment
Coke is trying to modern technology and latest machines for production of mixture and filling of bottles in every part of the world in order to maintain its quality and cost as compared to its competitors.

Political environment
Coke being a multinational company is having its main head office in Atlanta. With this regard, it is having little or no influence of instability in politics in Pakistan

Cultural environment
Culture plays a main role in determining the consumption pattern of any country. It is having cultural impact on its distribution pattern. In Pakistan, the culture is enforcing a juice that’s why coke has made its strategy of launching of juices in 2008. 

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