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SARSI COLA Life Cycle

>Introduction
1. Company Strategy and Issues: Rapidly evolving consumer preferences and health awareness Complex markets and supply chains Increasing regulatory, quality and environmental issues Creating brand awareness and sustaining loyalty in the midst of changing consumer preferences Low sales Innovators are targeted Negative profits Little competition

2. Operation Management Strategy and Issues: Closely monitor and continuously improve all manufacturing related processes while simultaneously ensuring overall asset effectiveness to profitably maintain production volumes and finished product quality. Value added beverages Innovation Manufacturing performance and agility Product and packaging innovations High cost per customer acquired

Recommendation: >Growth 1. Company Strategy and Issues: Exploit new sources of productivity The need to find new ways of providing customer service Opportunities requiring fundamental changes in business models New competitors Straightforward automation of business processes and integration of systems will increase business speed, improve information quality, and may reduce the time to respond to changes in demand Market improvements tuning the manufacturing operation to be extremely responsive to actual demand allows companies to capture market share without increasing costs Food safety management Early adopters are targeted Growing competition Rising profits Average cost per customer 2. Operation Management Strategy and Issues:

Accelerating time-to-market for new products and product varieties


Development of new technology and products Integration of the batch process and the continuous process areas Monitor and manage performance in real-time Must build speed and flexibility into business processes and information systems so that they can react faster to market and competitive conditions Increasing pressure from distribution Recommendation: >Maturity 1. Company Strategy and Issues: Secure and raise brand awareness Deliver consistent quality by bridging the gap between enterprise business systems and the plant floor Flexibility of business behavior in response to market dynamics Short time-to-market 2. Operation Management Strategy and Issues: Very dynamic market conditions Cost efficiency, performance, and precision Standards-based integration of business and production systems Cost reduction inventory, costs, people, and cycle time Process improvements faster new product introduction, new customer compliance, and data services from better tracking and genealogy Recommendation: >Decline 1. Company Strategy and Issues: Declining sales Low cost per customer 2. Operation Management Strategy and Issues: Declining sales Rising prices weakened consumer demand Recommendation: Looking towards the future, the most important recommendation to CocaCola is continuing product innovation and expansion of their product line. The softdrinks industry is fully saturated with competitors. Also, the industry is no longer expanding, and market share is actually decreasing as more consumers are looking to healthier options. By continually introducing new products, Coca-Cola will be able to increase their profits and allow the company to continue to grow. Also, having a diverse product line will make the corporation very stable, which is appealing to investors and creditors.

A second recommendation would be to sustain or increase the global market share. Coca-Cola is very well-established globally, and is the global soft-drinks leader. This is very important to sustain because it is the source of the majority of their profits. If they lose global market share, their profits will decline dramatically. A final recommendation for Coca-Cola is to maintain and try to increase their brand loyalty. Diet Coke has the second highest brand loyalty of all the soft-drink competitors brands, and solid advertising campaigns will help maintain the brand loyalty. They can also strive to obtain higher brand loyalty in all other brands, not solely Diet Coke. The brand loyalty is important because it will allow Coca-Cola to sustain profits and maintain their market share.