Coca Cola Major Goals And Mission Statement example essay topic

Coca-cola and Nike, Inc. can be put as a multinational corporation business that maintains a presence in two or more countries, and both organisations have a considerable portion of its material goods invested and derives a substantial portion of its sales and profits from international activities, considers opportunities throughout the world, and has a worldwide perspective and orientation. Coca Cola and Nike, Inc. are two different organisations which come from different industries. Coca Cola produces mostly soda drinks, while Nike Inc. produces shoes and clothing, and accessory. Each organisation has its own mission statements, major goals, and external environmental factors influencing them.

Each organisation has some kind of a relationship between its mission statements and major goals, which we will discuss later on in this essay. The external factors that are influencing both organisations are also related to each organization's major strategies. In any industry, five competitive forces state the rules of competition. Together, these five forces determine industry profitability because they directly influence the prices individual firms can charge, their cost structure and their capital investment requirements (Robbins et al 2000). These five factors are called Porter's Five Forces Model, and by using this we will evaluate the status of each organisation's industry.

In this essay, we will compare Coca Cola and Nike, Inc., which come from different industries. We will analyze about each company's mission statements and the external environmental factors influencing each organisation. We will identify the major goals of both organisations, and describe the major strategies each organisation pursues, and how these strategies are linked to each organisation's external environment. We will also discuss the relationship between each organisation's mission statements and its major goals. We will evaluate the status of each organisation's industry using Porter's Five Forces Model as mentioned before. Finally we will provide a concluding summary of our findings, outlining the relationship between management theory and practice as it relates to each organisation.

We will also include our own statements about the relationship between management theory section, including our own statements about the relationship between management theory and practice in general in the end of the section. What is a mission statement? A mission statement of an organisation is what the organisation stands for, and where it is headed. A mission statement should be viewed as the guiding principle for the company's entire business. Basically, a mission statement defines the company's values and outlines organisational purpose and "reason for being". A clear mission statement is the simplest message you want to send to the customers.

A good mission statement is convincing and should be persuasive. It should be risky and challenging, but also achievable. A mission statement is likely to change over time as a business grows and market conditions change. A mission statement requires little or no explanation, and its length is less important than its power.

One of Nike's now famous mission statements is to bring inspiration and innovation to every athlete in the world (Nike, Inc. Annual Report 2001). Based on our own awareness, another famous Nike's famous mission statement was, "crush Reebok and Adidas". Instead, Nike could have stated their mission as, "to be the best shoe company with the best customer service", but that would have done little to motivate the crowds. Based on Coca Cola Annual Report 2001, the mission statement of Coca Cola Company is simple, solid and timeless. It brings refreshment, value, joy and fun to their stakeholders.

Coca cola is also very protective to their brands. It is the key to fulfilling out ultimate obligation to provide consistently attractive returns to the owners of the company. Fundamental to Coca Cola success was a commitment to the highest standards for product quality a commitment that remains a trademark for the Coca-Cola system today. Based on Coca Cola Annual Report 2001, they produce nearly 300 brands in almost 200 countries. More than 70 percent of their income comes from outside the U. S, but the real reason they are truly global company is that their products meet the varied taste preferences of consumers everywhere. Coca Cola has brought refreshment to people nearly 200 countries.

Coca Cola struggles every day to refresh the marketplace, improve the workplace, protect the environment and strengthen their communities. Currently, as the statistic shows, Coca cola has 47% of the worldwide market in soft drink sales (Coca Cola Enterprise Inc. 2002). But they no longer measure themselves in such a narrow way. Instead, they focus on expanding their share of every human beings fluid intake. In some cases that may mean taking on other international soft drink companies, but in other cases, original beverages are their biggest contenders.

Only tap water is their rival or competitor. As a result of this mission statement, Coca cola sees unlimited growth opportunities. So the basic mission statement is coca cola want to be known worldwide and consume by everyone in the world. What are stakeholders of an organisation?

Mainly, stakeholders are owners of a share in a company and can also be called shareholders. Nike's has many stakeholders; it is all around the world. Coca Cola also has many stakeholders. Therefore, the success of the Coca Cola Company depends on a workforce that is rich in its variety of thinking, perspectives, backgrounds and culture. To maintain the magic that has made them the world's most inclusive brand, Coca-Cola has to be the world's most inclusive company. Their commitment to variety also extends into the community.

By valuing other people, it helps them better meet the needs of their customers and partners. Through their people and their local bottling partners, they build relationships through local marketing, local civic programs and local business opportunities. Realizing the full potential of variety has a direct impact on their company: It makes them a better employer and business partner; helps them compete more effectively; makes them better neighbors in our communities; and finally, it builds value for them share owners. Coca Cola Company is thrilled with a new industrial operating culture, which are the two key things, modernisation and variety. They " re committed to their values and they are trying to live them every day. "The biggest thing Coke is looking for is long term thinkers", says one insider, "They don't want cowboys.

They want conservative people who are into adding shareholder values" (Investors Business Daily Coca-Cola). The company maintained a long-standing commitment to equal opportunity, affirmative action, and valuing the variety of their consumers. Design to align the interest of managers with those stockholders. Major goals can be defined as something that the company wishes to achieve in the future for the success of the company.

Every company needs to have several major goals for the future. These are usually quantitative goals such as to increase sales by a higher percent or to increase profit by a much higher percent, but they may be qualitative goals such as to improve the quality of a product or customer service. It is very important to have very little major goal, otherwise, with too many goals; the company will lose focus and be less likely to hit any of them. Nike's first major goal is to build a critical mass of formal and informal leaders. Secondly is to share learning and best practices company wide.

Thirdly is to create a common language, framework, and vision for sustainable business practices. Fourthly is to improve employee morale, resulting in increased employee retention, job satisfaction, and productivity. Fifthly is to enhance the company strategic advantage through sustainable designs and innovations. Last but not least, the sixth one is to contribute to improving Nike's global image as a responsible 21st century citizen (Nike, Inc. Annual Report 2001).

Perhaps, Nike has other minor goals to be achieved, but these are its famous major goals. Japan, Argentina, Denmark, France, Belgium and China are six of Coca-Cola's major distribution countries, which is one of the major goals of coca cola to be known worldwide. Instant major goal is that Coca-Cola is trying to create product accessibility for the consumer in an effort to increase their sales volume without compensating the level of quality. Retailing machines help accomplish this goal, because they provide ice-cold Coca-Cola products to consumers in a variety of locations The company's aim to create a working environment free of discrimination and harassment with respect to race, sex, color, national origin, religion, age and disability.

They also have commitment to make reasonable accommodations in the employment of men and women, who are qualified with disabilities In addition, to trying to create a working environment related issues could be raised freely. The whole idea of the open door policy is to provide an effective and timely means for all company associates to find solutions to work related questions, problems, and concerns that may affect the culture of the organization. Coca-Cola works extremely hard to be one of the few companies in the world to successfully reach literally billions of consumers. Coca-Cola's international distribution is the backbone to their major goals of global approach.

The relationship between Nike's mission statements and major goals is that, both mission statements and major goals mention innovations and improvements for global image and athletes around the world. Therefore, mission statements and major goals of a company can be similar to each other. Coca cola major goals and mission statement almost the same which is to be known worldwide and always can expand their company. Coca cola also has a big concern for the employees; they want their employees to live in a proper way and have a proper standard of living. Every company must have influence caused by its external environmental factors.

What are external environmental factors? Generally, external environmental factors are aspects that come from the outside environment of the company, which give huge influence on the company's production. Like most companies, Nike has external environmental factors manipulating its production. Nike included all environmental staff and gather them into NEAT (Nike Environmental Action Team) and the team's mission was to develop answers to the problems that Nike's business, and the sport industry as a whole, pose to the environment, and to combine the solutions into the company's business practices. An environmental ethic has been built-in in the company's value system since its founding in 1972. The company has a tradition of honoring nature in its physical surroundings.

Nike has undertaken several initiatives addressing the environmental life cycle of its products. This decision was a major blow to the plastics industry and has become an important step in Nike's path to sustainability. For example, in an industry that has been traditionally dependent on large amount of petrochemical-based solvents, nine out of ten Nike shoes are now put together using water-based cements. For the second example, while the boxes used to package Nike shoes were already 100 percent post-consumer recycled material made in closed loop system, new machine technology was applied in the manufacturing of all Nike corporate boxes, and this means a reduction of 4,000 tons of raw material fiber used to make Nike's boxes.

In addition, the bottom line impact is a cost saving of 1.6 million annually. As for the third example, one of the first products to reflect Nike's design for the environment efforts is a tank top for long-distance runners first showcased at the "green" Olympic Games in Sydney, Australia. Seventy-five percent of the fabric in the top is made from recycled plastic soda bottles. It is designed to perform better than a normal top in keeping runners cool, yet use 43 percent less energy in manufacturing (Willard 2001). These are only few examples of external environmental factors that influenced Nike for the benefit of itself, and the outside environment. As it stated in Nike Web Site, "Nike's challenge for the future therefore goes beyond merely reducing our impact on the environment.

The notion of sustainability must be incorporated into all our business practices, leading the way to an economy which is ecologically sound as a whole. Emulating natural cycles necessitates creating product life cycles that are cyclical in nature rather than linear, create zero waste and are closed loop system which reuse precious natural resources. This means scrutinizing all aspects of our products and daily operations for ways to more closely adopt a closed loop model. The future of our business-and the future of the earth-depends upon it". Porter's Five Forces Model are threats of new entrants and barriers to entry, threats of substitutes, bargaining power of buyers, bargaining power of suppliers, and rivalry among existing competitors (Robbins et al 2000).

The first one is threats of new entrants and barriers to entry. As it stated in Management text book written by Robbins et al, threats of new entrants and barriers to entry are factors of such as economies of scale, brand loyalty and capital requirements determine how easy or how hard it is for new competitors to enter an industry. It is not only the opponents that pose a threat to firms in an industry; the possibility that new firms may enter the industry also affects competition. Supposedly, any firm should be able to enter and exit a market. However, industries protect the high profit levels of firms in the market and hold back additional rivals or competitors from entering the market.

These are what we call barriers to entry. For example, in Nike, Inc., when industry profits increase, we would expect additional firms to enter the Nike market to take advantage of the high profit levels. When Nike, Inc. profits decrease, we would expect some firms to exit the market and restoring market equilibrium. Falling prices, or the expectation that future prices will fall, prevents rivals from entering a market. Barriers reduce the rate of entry of new firms, and maintain a level of profits for those already in the industry. From a strategic perspective, barriers can be created to enhance competitive advantage.

Barriers to exit work similarly to barriers to entry. Exit barriers limit the ability of a firm to leave the market and can have worse competition that the firm is unable to leave the industry, and must compete. In the case of the Nike industry, the athletic footwear, apparel and equipment industry is keenly competitive in the United States and on a worldwide basis. Nike competes internationally with an increasing number of athletics and leisure show companies, athletic and leisure apparel companies, etc. Large companies such as Reebok and Adidas are included as being its competitors (Nike, Inc. Annual Report 2001).

Nike has to prevent new firms to enter, unless Nike will have a lot more rivals coming in. Coca cola already has Pepsi as their number one rival and coca cola trying their best for no more competitive coming. Mineral water is also Coca Cola big competitive. This relationship is being created by Coca-Cola's "Project Infinity", which is being put by upper management to make independent bottlers in an effort to cut costs, pool resources, generate more buying power, improve overall communication throughout the organisation, and increase profits.

In Porter's second model, substitute products refer to products in other industries. Threats of substitutes are factors such as switching costs and buyer loyalty determine the degree to which customers are likely to switch their business to a competitor (Robbins et al 2000). To the economist, a threat of substitutes exists when a product's demand is affected by the price change of a substitute product. A product's price elasticity is affected by substitute products, and as more substitutes become available, the demand becomes more elastic since customers have more alternatives. A close substitute product limits the ability of firms in an industry to raise prices (McTaggart et al 1999). The competition created by a threat of substitute comes from products outside the industry.

The price of Nike shoes is constrained by the price of plastic, rubber, and cloth. These are substitutes, yet they are not rivals in the Nike and Coca-Cola industry. The price of Coca Cola is determined by the price o the can, bottle and plastic. The third model is bargaining power of buyers. Factors such as number of buyers in the market, buyer information and the availability of substitute products determine the amount of influence that buyers will have in an industry (Robbins et al 2000).

The power of buyers is the impact that customers have on a producing industry. In general, when buyer power is strong, the relationship to the producing industry is under market conditions where there are many suppliers and one buyer. Under such market conditions, the buyer sets the price. In Nike Inc. for example, Venator Group Inc. which operates a chain of retail stores specializing in athletic footwear and apparel, is Nike Inc.'s significant customer because it accounted for approximately 12 percent of global net sales of Nike brand products during fiscal 2001. No other customer accounted for 10 percent or more of Nike's net sales during fiscal 2001 (Nike, Inc. Annual Report 2001).

This example shows that Venator Group Inc. as Nike's significant customer has favored Nike industry on its producing. Distribution has become a complicated part of the Coca Cola Company's success in being able to successfully produce quality products that are delivered and sold around the globe in a cost effective and time efficient manner. Coca cola has become an American icon that has managed to transform itself from a profitable fountain soda into a generational product that Americans have grown to love. Coca Cola realizes that their dominance in the cold-beverage industry will not continue unless they come up with new innovative ways to remain competitive in a global market. A producing industry requires raw materials, labor, components, and other supplies. This requirement leads to buyer - supplier relationships between the industry and the firms that provide it the raw materials used to create products as for the fourth Porter's model.

Suppliers, if powerful, can influence the producing industry, such as selling its raw materials at a high price taking some of the industry's profits. Nike has a supplier from other industry such as plastic industry, clothing industry, rubber industry, etc. Coca Cola Company also has a supplier from other industry such as; steel cans industry, plastic industry to make plastic bottles, glass industry, and etc. The last Porter's model is rivalry among existing competitors. Factors such as industry growth, increasing and falling demand, and product differences determine how intense rivalry will be among firms in the industry (Robbins et al 2000).

Economically, competition among rival firms drives profits to zero. Competition is not perfect and firms are not simply price takers. Rather, firms are looking for a comparative and competitive advantage over their rivals. Nike, Inc. and Coca Cola Company have industry growth, falling demand, and such things, that are caused by rivalry. This is why both organisations have a status in rivalry among existing competitors. The major strategy that Nike pursues is to develop a worldwide marketing of high quality products involving factors from the outside environment.

This is how its external environment linked to the strategy of the company. Nike is trying to be the best of all footwear companies, such as Reebok and Adidas, by getting help from its external environment, as well helping the external environment itself. Using such a way, Nike is getting more and more of people's attention around the world, and more people will buy Nike's products. Coca cola can be put as a big organization with lot of business partners such as their bottling partners. One of the primary reasons for organizing is to established line of authority. It also can improve communication.

A good organization structure clearly defines channels of communication among the members of the organization, such as system also ensures more efficient communication. Coca-Cola's customers are mainly retail outlets, restaurants, grocery stores, or any other operation that buys their products, and in return sells or serves these products to consumers. Coca-Cola's primary focus with these products is "instant consumption", because that is an area in the market that has the biggest growth potential. The culture also can affect Coca Cola Company so it has to be a response style. Those are the external environment which is needed for the coca cola company to maintain their success. Their strategy of running the business is concerning of all of the Coca Cola and Nike companies which are all around the world.

They have a very good strategic of planning for success of the companies. Almost all of the Coca Cola strategies are already been implanted for a long time, even when Coca Cola Company just been built. That is why Coca Cola Company can be very successful comparing to the other Beverages Company and Nike is also more successful than other footwear companies. As a conclusion, Coca Cola and Nike are similar to each other even though they came from different industries. Coca Cola and Nike are both very successful in producing their products. The relationship between management theory and practice in general is that both of these organisations follow the management theory, and it leads them to success.

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Willard, M. 2001, Oregon Natural Step Network, Nike, Inc.
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