The vision and the mission of the Coca-Cola company are based on the long history of the brand. Primarily, it looks at the final destination where the business process of the Coca-Cola will lead. The official website of the Coca-Cola notes that the vision of the company serves as a roadmap and navigates the diverse operations of the company. The mission of the Coca-Cola company focuses on the endurance and defines the purpose of the Coca-Cola company.
Specifically, the mission of the company is based on the following three aspects: ‘To refresh the world…To inspire moments of optimism and happiness. To create value and make a difference.’ (CocaColaCompany.Com). By navigating the focus of the mission of the Coca-Cola, it links its product with the desire for refreshments among the customers of the product.
Moreover, the mission immediately positions the product by connecting the personal emotions, such as optimism and happiness. The company creates a significant distance between the outcome and the health consequences for the customers of the company. Ultimately, the mission transitions to the focus on the quality and states that the product can make a difference and have a value for the customer who consumes it. The interpretation of the final statement from the mission statement does not relate to the healthcare as there is likely no value brought by Coca-Cola company to the health of the consumers.
However, such products as ‘Coke Zero’ and Coke with no sugar added demonstrates that the company strives to improve its vision of the customer’s healthcare. Thus, the mission and the vision of the Coca-Cola truly relate to the currently undertaken actions aimed at promoting its product. Yet, the strategic challenge is to ensure that the mission and the vision declared by the company truly make a difference on the health of its consumers.
Without a doubt, one of the most pertinent challenges for the leadership of the Coca-Cola company is to stay up-to-date with addressing diverse health care challenges that may be experienced by the consumers of the Coca-Cola products. The plan to address the issue should primarily focus on ceasing the opportunity and making it relevant for the developed product by the Coca-Cola products. For instance, despite facing lots of challenges and criticism about the product and the damages on the healthcare of the customers, Coca-Cola was highlighted as a company which is an ultimate value stock with the delivery of the steady returns. However, due to the growing health issues, the brand of the coca cola has been significantly damaged. One of the possible ways to address the ever increasing health issues and adhering to the mission and the vision of the company is to develop a new type of drink. The current healthcare trends indicate that the promotion of the healthy lifestyle is at risk in different parts of the world where Coca Cola’s position is quite strong.
The company should continue developing the products in line with the trends of no calories and no sugar. Potentially, the next product in line could promote ‘no harm to the health’ and use the technique of advertisement as the way of boosting sales of the product. That way, the strategic challenge of preserving a steady position of the Coca-Cola on the market would not be compromised due to different emerging risks.
One of the most important aspects of the selected plan is that it would preserve the market stability of the Coca-Cola company and will not result in the loss of sales. Some customers may be initially skeptical, as the product may simply seem trendy without actually bringing value to improving the healthcare conditions of the consumers. To prevent such flow of criticism and preserve the image of the Coca-Cola company, the corporation should lobby different health organizations and get an evidence-based approval of the product from. When looking at the balance sheet, one may note that sales will decrease by 2% in the first year of the launch of the product. However, as the skepticism of consumers fades away, there will be additional room for boosting sales. In the year two and the year three, sales are expected to grow by 3% and 5% respectively. The capital expense of the company mainly targeted at research efforts is estimated at 500,000 USD to 1 000 000 USD globally. Specifically, in the US market, the capital expenses of the Coca-Cola Company should be calculated at 200,000 – 300,000 USD. The overall financial plan is based on the risk-taking, as the corporation may encounter the losses in the first year of sales. The approach of the long-term vision of the company’s strategy will be more effective in reaching out the customers. Thus, the cash flow will not be influenced in the long-term and will bring additional incentives to the representation of the Coca-cola branding.
The model based on the research investment will thus be beneficial in terms of financial revenues, too. Overall, the plan is primarily targeted at the long-term promotion of the product, given that the trend of the healthy lifestyle will at least prevail in the forthcoming decades. Moreover, as the government of the United States promotes a healthier lifestyle, such products as sodas would not be recommended for consumers due to the healthcare implications on the customer’s health. Thereby, the new product has a great potential to justify soda’s consumption if presented correctly. The potential will unlock the new ways for exploring the product by customers, too.
- “Health Groups Challenge Coca-Cola – Cancer Council Victoria”. Cancervic.Org.Au, 2018, https://www.cancervic.org.au/about/media-releases/2013-media-releases/september-2013/health-group-challenge-coca-cola.html. Accessed 10 July 2018.
- “Mission, Vision & Values”. The Coca-Cola Company, 2018, https://www.coca-colacompany.com/our-company/mission-vision-values. Accessed 10 July 2018.
- Stewart, James. “For Coke, Challenge Is Staying Relevant”. Nytimes.Com, 2018, https://www.nytimes.com/2014/03/01/business/challenges-for-coke-to-stay-on-top.html. Accessed 10 July 2018.
