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Value Chain Analysis of Coca Cola - Essay Example

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The paper "Value Chain Analysis of Coca Cola" explains that the essence of profit maximization is very important from the standpoint of the organizations that is why the entities have to undertake effective long term strategies to expand the revenue recognition of the firm…
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Value Chain Analysis of Coca Cola
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From this paper, it is found that there are number of quality management things. Among different quality management stance, the of Histogram is one of them which has been applied on the same to support the value Chain Management. Acknowledgment First of all I thanks to Almighty God, who gave me the power and inclination to do my coursework in a proficient manner. There are number of people who helped me throughout my education and even in writing this thesis. The topic which I have chosen for my final thesis is very broad in nature and at first instant I was bit scared but my mentor, Mr. ________________________ helped me throughout the session and due to him, I become able to submit my work on time. Here I want to thanks my parents as well for all their prayers and support. By, Department of Project Management, Faculty of Management Sciences _____________________________________________ Dated: 26-04-2013 Contents Introduction 4 Background of Coca Cola 5 Histogram 7 In statistics, a histogram is a graphical representation of the distribution of data. It is an estimate of the probability distribution of a continuous variable and was first introduced by Karl Pearson. A histogram in a representation of tabulated frequencies, shown as adjacent rectangles, erected over discrete intervals (bins), with an area equal to the frequency of the observations in the interval. The height of a rectangle is also equal to the frequency density of the interval, i.e., the frequency divided by the width of the interval. The total area of the histogram is equal to the number of data. 7 Value Chain Analysis of Coca Cola and Histogram 7 Conclusion 10 References 11 Introduction Organizations have been made to earn economic profit. The essence of profit maximization is very important from the standpoint of the organizations that is why the entities have to undertake effective long term strategies to expand the revenue recognition of the firm (Andrew & Collingwood, 2005, PP. 98). Organizations have been around the strategies and long term benefits, that is why the organizations have to keep a certain check and balance over its strategies merely for their long run growth. Operations management is an area of management concerned with overseeing, designing, and controlling the process of production and redesigning business operations in the production of goods and/or services (Andrew & Collingwood, 2005, PP. 111). It involves the responsibility of ensuring that business operations are efficient in terms of using as few resources as needed, and effective in terms of meeting customer requirements (Andrew & Collingwood, 2005, PP. 95). It is concerned with managing the process that converts inputs (in the forms of materials, labor, and energy) into outputs (in the form of goods and/or services). The relationship of operations management to senior management in commercial contexts can be compared to the relationship of line officers to highest-level senior officers in military science. The highest-level officers shape the strategy and revise it over time, while the line officers make tactical decisions in support of carrying out the strategy. In business as in military affairs, the boundaries between levels are not always distinct; tactical information dynamically informs strategy, and individual people often move between roles over time (Andrew & Collingwood, 2005, PP 102). The entire world has been moving with a lightning speed and the stance of globalization is on its peak, in which any small effect on anything has an ultimate effect over the other things as well. Organizations have to take numerous strategies into account to sustain in the competitive environment. The competition stance has also increased due to the level of globalization, which enables the companies to undertake effective operating strategies as far as their long run growth is concerned. There is different analysis which an organization performs to assess the loopholes within its operations (Berry, 2001, PP. 52). Among different analysis and strategies, the analysis of value chain is very important either from the standpoint of the organization or from the standpoint of the management of the company (Andrew & Collingwood, 2005, PP 93). Organizations have to analyze the stance of quality in particular. The main perspective of this assignment is to analyze an organization from a single tool of quality and it is applied on Value Chain Management of a company. The company which has been chosen for the same is Coca Cola. The quality tool is Histogram. Background of Coca Cola Coca Cola is known as the world largest beverage company, which has active operations in more than 200 countries worldwide. The company's portfolio is very large as it sells 400 brands of non alcoholic beverages around the globe. The brand of Coca Cola is known as the world's most valuable brands of the world, and that is why the company is a globally recognized company of the world. It was 1886, when the commenced its operations. It was the time of world wars and economic recessions that is why the company had worked extremely hard to expand its network worldwide. In the mid 1990s, Coca Cola has been known as the most respected company of the world. The biggest advantage of the company is its ad hoc brand and intelligent and successful management team. The activities of the company expand in almost all the sectors of the industry relate to soft drinks. In the start of the 20th century, the company has led in volume of the customer and revenue recognition. Due to its large and sophisticated portfolio and customer base, the company has been referred as the number 1 beverage company of the world followed by PepsiCo, which is known as its biggest competitor (Sandusen, & Javagal, 2005, PP. 54). The companies’ shares are actively traded in the New York Stock Exchange (NYSE) with the name of KO. The company's operations have been spread in more than 200 countries around the globe with a workforce comprises on around 139,600 employees worldwide. The company earned revenue of US$ 35.119 billion for year (FY) 2010 with net income of US$11.809 billion for the same year. The company currently has US$ 72 billion of assets which are the major source of their ad hoc economic growth. Histogram In statistics, a histogram is a graphical representation of the distribution of data. It is an estimate of the probability distribution of a continuous variable and was first introduced by Karl Pearson. A histogram in a representation of tabulated frequencies, shown as adjacent rectangles, erected over discrete intervals (bins), with an area equal to the frequency of the observations in the interval. The height of a rectangle is also equal to the frequency density of the interval, i.e., the frequency divided by the width of the interval. The total area of the histogram is equal to the number of data. Value Chain Analysis of Coca Cola and Histogram Value chain analysis describes and considers all the activities which make the economic performance and capability of a company (Robert & Marry, 2005, PP. 24). In this section, the researcher has analyzed the value of the products of Coca Cola. In this section, the researcher has portrayed those activities of the company by which Coca Cola has created values for their customers which includes both economic and non economic values. Through the Value chain analysis, the management of Coca Cola can take sufficient actions to direct the performance of the company in front of its competitors. Michael Porter had introduced a framework to analyze the value chain stance of a company. The model picture of the company is mentioned below, The picture mentioned above summarizes the value chain activities of a firm, which later on will be implemented on Coca Cola. Let’s discuss after implementing each category of above model, Firm Infrastructure The infrastructure of the firm includes accounting and finance, quality management, IT services and legal services. The finance and accounting department of an organization is held responsible to record and maintain the day to day accounting activities of a firm and allocating the funds of the company at a place from where the organization can earn large benefits (Sandusen, & Javagal, 2005, PP. 49). Both public and private limited companies emphasized a lot to strengthen the function of their finance and accounts department and also works in merger and acquisition matters of the firm as well (Berry, 2001, PP. 70). Coca Cola has an efficient finance department and complied effectively with the financial reporting standards. The company complied with General Accepted Accounting Principle (GAAP) and traded in two different stock exchanges of the United States (US) (Berry, 2003, PP. 36). Coca Cola is a US$ 20 billion company which has a wonderful corporate strategy called information strategy. The company has used SAP SEM solution system to consolidate their financials with integrity and uprightness. Upgraded financial systems and intelligent people occurrence makes the stance of financial planning and financial performance of the company simply unmatchable (Chris, 2009, PP. 121)The company uses business consolidating and planning software like SAP financials along with data warehousing merely to enables the upper management to take informed and effective economic decision for the company. The company generates monthly forecasts and on the basis of these forecasts, the company becomes able to add value in their products (Chris, 2009, PP. 127). The SEM BCS system used by the organization for the forecasting purpose is absolutely wonderful because it not only enhances the sales recognition of the company but also enhances the external reporting of the financial results (Robert & Marry, 2003, PP. 26). Coca Cola has been counted among those companies, which collects credit from their customers instantaneously merely because of its stock option program, financial modeling and credit extensions models. SAP Financials and SEM BCS are known as the most sophisticated business intelligence models to strengthen an organization operationally and strategically (Robert & Marry, 2003, PP. 19). Histogram of the revenue and net income of the company is mentioned below, Conclusion Organizations are actuality fabricated to aggravate the surplus and abridged the accidental expenses. Inevitably, whatever an alignment does is artlessly for the account of amends appreciation. The apple is in atrocious emergency due to the avant-garde advantageous slump. To cool the surplus organizations accept to booty abounding accomplishments which absolutely relates to its activist net paycheck accession. Histogram is the best tool to analyze the quality which could be applied on the value chain management stance. References Andrew, F & Collingwood, O (2005), Strategic Management Analysis, Prentice Hall Publications, PP. 87-105 Berry, J (2001), Value Chain Analysis, 1st Edition, John Wiley & Sons Professional Publications, PP. 68-84 Berry, J (2003), Value Chain Analysis through Histogram, 2nd Edition, John Wiley & Sons Professional Publications, PP. 21-48 Berry, J (2005), Value Chain Analysis through Histogram, 3rd Edition, John Wiley & Sons Professional Publications, PP. 75-87 Chris, L (2009), Value Chain Analyses Techniques, Pearson Group Publications, PP. 95-132 Sandusen, C & Javagal, U (2005), Value Chain Management, McGraw Hill Publications, PP. 45-70 Robert, B & Marry, K (2003), Organizational Analysis, Volume 1, Oxford University Publications, PP. 15-35 Read More
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