How Coca Cola HBCs practices enable it to achieve strategic goals

How coca excogitationt weed HBCs practices alter it to pass st driftgic goalsExecutive abridgmentThe purpose of this story is to assess how coca the skinny HBCs practices change it to achieve their strategic goals. It is aimed to provide a comprehensive understanding of the system and entropy factors which affect the planning, perplexity and delivery of its everyplacelaps.coca plant Cola HBCs strategic affix chain steering and trading operations rise is a victory legend enable them to achieve . The bon ton has been able to identify the real problems in occupation and their ca make use ofs, which has enabled it to correctly address them. Theyve in like manner had fannys for mendment and accomplishment, which has patroned the throughout the way. coca Cola HBC is a solid and very well entirelyotd union and its advent to establishing long-lasting relationships with nodes, suppliers and retailers is a pigment aspect to success in todays dispute and aggress ive note surroundings.IntroductionHumble beginnings for Hellenic Bottling Comp any S.A. were mark by a single soft drink packed in sm exclusively glass bottles at its modest headquarters in Greece in 1969 . This single product was a chemical reaction to the simple line of credit environment encountered by the union whence. trading operations were straightforward and translate replenishment to dissemination centres were a simple job for the drivers who would only nourish to load the trucks, incur a route and drop off supplies.Throughout the years, with the impact of globalization upon world consumption and labor, the origin environment was transformed and the company steady grew and alineed to these changes. More products were developed, yield change magnitude and its operations became more agonistical and complex. In 1981 a private holding company acquired majority s crawfishs in the firm. After this, the judicature expanded its crease through acquisitions.coca plant Cola Hellenic Bottling Company was formed in 2000 as a result of the merger of the Hellenic Bottling Company and London-establish Coca-Cola Beverages. Today, the company is matchless of the largest bottlers and vendors of The Coca Cola Companys products in the world, and the largest one base in Europe.The company produces markets and sells to guests one of the nigh well-kn suffer brand in the world, Coca Cola.1 trading operations forethought PracticesCritic whollyy assess the extent to which CCHBCs operations trouble practices enable it to achieve strategic goals as set out in the foursome As credo.Coca Cola HBC emphasises on a Four As credo in baffle to sustain its constant and maturation assumes in its marketsAvailabilityAffordabilityAcceptabilityActivationTheir operations strategy cleverly brings their processes unitedly to form a bring chain that extends beyond the physical w all(prenominal)s of the organisation and come to further involving suppliers and guests. According to Krajeski et al (2010) a firm competes non only by offering sweet products, innovative merchandise or expert finances, but excessively through its unique competencies in operations and solid anxiety of core processes.The Sand Cone Model suggests that firms suffer develop four sustainable competitive advantages accompanying a circumstance order of strategic priorities. The proposed order is type, dependability, flexibility and cost. Excellent operations writ of execution in causal agency gives the company the ability to deliver high quality products. Excellent operations performance dependability will give the company the ability to compete on fast and reliable deliveries (availability). Excellent operations vigilance in flexibility gives the company the ability to deliver on a wider range of products and current products (activation). Excellent operations performance in cost gives the company the ability to deliver on low outlay (affordability). T he model suggests that if this focus is falled, organisations ar then able to build up their advantages concerning all the wear outicles.Considering the Hayes Wheelw ripe(p) four- leg model for manufacturing competitiveness, Coca Cola HBC rear end easily be described as externally projective, or stage 4. Their operations ar managed proactively to drive the business strategy of the entire organisation. Operations be world class and seen as the means to achieve client satisfaction.The introduction of mutual beneficial relationships with suppliers enables them to deliver the vanquish comfort in experimental conditions of quality, cost, military servicing and change, serveing to achieve the four As in their credo. These relationships involve unshakable collaboration all over long-term plowion of these partnerships and broadly cover usable issues, but tramp also accommodate business issues such as joint habilitatements and operations. Relationships atomic number 18 so tight that respective(a) international suppliers pee-pee established local production in dissimilar countries. y in orderProduct entropy and culture sacramental manduction with exchange partners is also a critical part of operations management practices. New product developments, promotions and early(a) marketing initiatives, new advances in operational processes, fork out availability, pricing strategies, costing, logistics plans should be undertaken in a sharing culture in the midst of all involved where there is a high aim of honesty and trust.Nowadays bar codes be an essential technology for supply systems, independent of the product. The use of this technology enables the unique identification and tracking of all products through the supply profit. Like many firms, Coca Cola HBCs operations strategies atomic number 18 only feasible with the use of bar codes, electronic information convert (EDI) and point of sale (PoS) data sharing, which firmly link all a ctivity in the supply system to real snip guest bespeak.It is not understood whether the company uses it, but electronic data interchange (EDI) is also a vital technological component to enable links between firms in a mutual operational lucre. This technology is unfastened of extending the interconnection between retailer and supplier to an entire net turn over. EDI is also utilize as a means to keep electronic trading facilitating global sourcing and acting as a low cost communication option.The establishment of good relationships and partnering with customers, suppliers and other members of the supply chain enables CCHBC to salvage on cost whilst addressing and influencing consumer preferences at the point of sale. For this type of company, point of sale (PoS) data solicitation is vital, but it would be of little use if retained only by the brass section. This data is essential for a flexible and responsive supply and postulate bum only be met using forward inventory builds and prediction rather than operating in-line with real time demand patterns. This helps to reassert a continual and automatic replenishment system which is important to enable items to be restocked by a vendor or supplier to the exact rate of sale. Demand discipline drop drive operational schedules and replenishment is direct from production fruit rather than stock holding.These tight relationships also help them to involve customers, retailers and suppliers in the processes of product development, modification and planning. This allows the rapid development of new products or innovative packaging to be tested in-store prior to product launches, for example.Their intelligent production and better and faster supply chain offers a high degree of response, speed and agility. Despite high initial be and time to fully implement, many supplier manufacturers are increasing the use of this form of production nerve as long term benefits are very valuable.All of these practices are important twist blocks of Coca Cola HBCs operations strategy. These are the forces that help shape them into a customer-driven and customer-foc utilize organisation. Their operations sour provides the basis of competitive advantage and set standards for the entire industry.Todays grocery is more and more complex. The retail landscape is ever-changing, consumers are seeking greater variety and our customers are demanding higher service levels. In this vibrant and dynamic environment, we are incessantly evaluating the way we do business as we strive to achieve juicy and sustainable produce.To manipulate that the business results we deliver are sustainable over the longer-term, we implemented a new strategic initiative in 2006. honesty Across the panel focuses on developing best-in-class commercial and distribution capabilities, as well as streamlining the management of financial re seminal fluids. In particular, we are building powerful route-to-market systems and dynam ic partnerships with customers to arrest that our execution in the marketplace is unparalleled. At the same time, we seek to optimise the use of our financial working jacket crown and re deem internal processes and systems.In addition to the Excellence Across the Board strategic initiative we are looking to Expand into territories that prove to be a geographic fit and contribute to our long term growth prospects while we re main(prenominal) committed to Explore other adjacent business areas to leverage our infrastructure, strengthen customer relationships and explore new avenues for growth and measure.We also manage our business following the six prioritiesto increase our beverage categories in order to become a more diverse non-alcoholic beverage companyto build brand equity in order to create value for customersto drive profitable package mix and exploit new convey in order to enhance marginsto manage capital for growth and valueto drive cost capacity throughout our businesst o create master sustainable returnsHere are some examples that show how we touchl these objectives.client collaborationCoca-Cola Hellenic aims to have an excellent co-operation with the 1.4 million shops, restaurants, supermarkets, discount chains and other businesses that sell the Companys beverages. In view of this, we enhance our route-to-market and commercial capabilities to ensure the availability of an ever-expanding range of products in the marketplace.Effective route-to-market systemsAnother key element in driving sustainable growth is the Companys route-to-market strategy for the fragmented trade channels. This strategy is focused on adopting the most effective means to ensure the full availability of our products in the marketplace and build lasting relationships with mer empenna maturateile establishment owners.Excellence in marketplace executionExcellence in marketplace execution is supported by our continuous investments in building gross receiptsforce effectiveness . We invest in merchandising equipment to generate impulse gross revenue and equip our sales people with mobile devices to enhance order taking, invoicing and asset tracking.The second key element of our business imperatives is to develop each of our markets by providing superior customer service and quality products.In Coca-Cola Hellenic we work hard to adapt our business to the changing needs of our customers. We initiate a bit of customer- ad hoc programmes. This aims to make haste a cross-functional onset to planning for the purpose of better aligning our organization with the way our customers do business.The goal of this approach is to create value for our customers. ameliorate preparation of joint annual plans encompassing promotional planning and revenue growth initiatives, inventory management and customer- special cooler placement strategies, are examples of what we opine will bring additional value to our customer relationships.In help consumers our blueprint can b e summarised in four words availability, affordability, acceptableness and activation. AvailabilityWe place our range of products within easy reach of consumers in the right package, in the right location, at the right time.We focus on developing strong relationships with our customers to ensure that the right products are in stock, highly visible and readily accessible wherever and whenever consumers may desire a non-alcoholic beverage.AffordabilityWe offer a wide variety of desirable, premium quality products, in packages allow for for the occasion, at the right price.In doing so, we aim to reach as many consumers as possible while taking into account the differing levels of buy power in the countries in which we operate.AcceptabilityWe supply an extensive and growing range of products that satiate the highest quality standards in each country, increasing their acceptability to consumers.We have a detailed understanding of consumer needs and access to the most effective commu nications channels. Combined with our experience in quality control, customer service and effectual distribution, we are able to reach out to customers and consumers in each of our markets and meet their demands.ActivationWe motivate consumers to choose our products by improve product availability and attractiveness at the point of purchase and by building brand strength in our local markets.We achieve this in close cooperation with our customers throughthe placement of cold drink equipment, such as coolers and vending utensilsthe provision of signage and other point-of-sale materialsthe implementation of local marketing and promotional initiatives2 Capacity Management ApproachHow would you characterise CCHBCs approach to efficiency management (including production, planning and control). What are the specific challenges of this approach?The success of an organisation is greatly determined by their ability to meet customer demand and to respond promptly and effectively to change s in this demand over time. Only an effective approach to capacity management will enable this to be achieved. According to Barnes (2008), the aim of capacity management is to match supply and demand. If capacity is insufficient the company risks having many dissatisfied customers and losing prospect sales as consumer demand cant be properly met. If capacity is excessive, cost will generally be higher than prerequisite as resources wont be fully utilised.Coca Cola HBCs approach to capacity management is currently to try and match capacity to demand. This strategy relies severely on being able to produce reliable future demand forecasts, which is notoriously proven to be a difficult task. Whilst this seems to be the most allow approach for this company, it still means the organisation is not able to meet sudden upturns in demand as capital investment decisions can typically involve a long lead time. Barnes (2008) points out that decisions involving adding capacity should be made within the necessary lead time as in some topics it can take years to devise the necessary structure and equipment.Coca Cola HBC consider that production planning based on long term divination is no longer necessary. Instead, they have opted to operate a continuous planning process. Krajeski et al (2010) agree, as they defend that forecast accuracy declines as the forecast horizon lengths. However, Barnes (2008) disagrees asserting that forecasting future demand is important both in long term and short term scenarios. He defends that long term forecasts are requisite when planning investment in new facilities and equipment and short term forecasts are important to manage effectively existing capacity.At Coca Cola HBC, a dedicated forecast music director is responsible for using historical sales reading and consumer data to produce a weekly demand plan. Whilst this approach is based on the use of scientific methods and data dig tools, accuracy is still an issue. Unfortunatel y, independent of the number of forecasting methods used by an organisation, none of them are particularly accurate in predicting demand. Barnes (2008) relys that nonetheless any forecast is almost certainly better than none as it forces managers to think about the future and consider how they can best respond to changes in demand.Assuming a quantitative method based on time series analysis is used, Coca Cola HBC are using the aside to predict the future, which might not al ways be the case. A effortless analysis should also be utilised in order to help them identify relationships between demand and pertinent happenings, such as stupendous weather, advertising campaigns and major sports/music events.Although not clear in the case study, its very likely that they also use qualitative methods such as market surveys and scenario planning to assist them in forecasting demand. These methods are based on estimates and judgements made by either customers or managers but once again ca nnot guarantee accurate forecasts.Their continuous planning process is also heavily dependent on achieving a consensus plan amongst all relevant aged managers. This approach can be considered valuable as it is designed to pay off the targets and limits of all involved. However, it relies heavily on effective communication and outstanding teamwork of all members which is something far from easy to achieve. Unless relationships are very tight and teamwork is ____exceptional members could tend to focus more on their respective(prenominal) targets rather than the teams goal.Most challenges faced by the organisation as a result of their capacity management approach are eased by fostering good relations and partnering with customers, suppliers, retailers and other members of the supply chain. The organisation has a extended and complex supply network which makes it more difficult to manage.A firms capacity management approach should be constantly revised as capacity planning decisions have implications for all members and processes in the supply chain as well as various departments within the organisation. Therefore, the whole chain should be designed for effectiveness. Agile supply chains are more capable to meet unpredictable demand surges as they are action-oriented, competitive and driven to perform.3 Supply Management ApproachAssess CCHBCs approach to managing its suppliers.Coca Cola HBC has a in truth global mindset withCoca Cola HBC has a global sourcing network with facilities in a number of countries. All activities (purchasing, etc ) are integrated and organise across the whole organisation and theyve worked on building fair and mutually beneficial relationships to deliver the best in terms of quality, cost, service and innovation.Relationships with suppliersThey work extensively with their suppliers helping them to improve their processes, reduce costs and deliver innovation and efficiencies.Suppliers range from big international companies to small er local companies.A number of international suppliers have established production in different countries allowing CCHBC to source from them.Relationships are managed both at country and company level.Multi-functional teams ensure quality and efficiency.All suppliers of ingredients and primary packing materials must be approved.Suppliers must follow strict standards for business ethics, human rights, labour practices and environmental management.Independent auditing of suppliers for entry with these principles is undertaken by independent third party firms every two years.4 Management Information SystemsHow could an MIS help Coca Cola to monitor the exercise of its A for availability credo? Support your answer with specific examples that border the value of your chosen reports and teaching.It is widely known that good-decision fashioning abilities and problem-solving skills enable organisations to reach its objectives and goals. Managing culture systems (MIS) can help an orga nisation to achieve these goals by providing an acuteness into the day-to-day operations of the company so that they can control, organise and plan more effectively and efficiently.According to Stair et al (2008) a management information systems (MIS) is an integrated collection of people, procedures, databases, hardware and software aimed at providing managers with information to enable them to make better decisions to achieve organisation goals. Besides load-bearing(a) internal operations, management information systems also enable collaboration between companies in the supply chain. victimisation high speed networks and data bases companies can easily share more reliable data to better manage the supply chain as a whole and their own individual operations. Hugos (2006) defends that the use of this technology is the key to a companys triumph.An effective management information system can benefit an organisation in many waysFacilitates planning quality of planning is improved a s the relevant information for decision making is available.Minimizes information overload it transforms a large summation of data into summarized form and avoid confusion that may arise when information is too detailed.Coordination facilitates the integration of activities and connect all decision centres in the organisationAids control serves as a link between managerial planning and control. Improves ability of evaluating and optimising performanceDecentralization allows monitoring of operations at low levels and frees up resources for departmental managers to devote time to strategic activities.The output of a management information system is information that sub serves managerial functions. A variety of reports in the form of charts, graphs, tables, summaries, etc, can be produced, all aimed at supporting management decisions. There are 5 main types of reports and Coca Cola CHB could utilise each one in a different context, but all with the same objective, which is to prov ide an insight to the companys regular operations.To guarantee availability of its products, Coca Cola HBC could use scheduled reports, produced sporadically to monitor and control manufacturing output. The SCM manager could use a daily succinct report to ensure he is meeting production targets. He could also guarantee that profitability targets are being achieved by using a weekly summary report to control labour costs.A key-indicator report is also a valuable managerial tool in order to understand the previous days activities. By analysing this report the production manager can take quick and corrective action in case any deviation is perceived, i.e. due to an unexpected stoppage in production or supply shortage.Demand reports can also be produced to fulfil requirements for specific information upon request. The SCM manager should use these to check on production status of particular products or measure performance of a certain production line.Coca Cola CHB could also use except ion reports, which would be automatically produced when an unusual situation arises or when a problem requires management action. They could be generated when there is a production problem, for example. This would then enable the relevant manager to make a quickly, timely and informed decision.As the let on suggests, drill-down reports provide very detailed data about a specific situation. This report could be used to snap sales to determined countries, regions, cities or even unique retailers.All of these reports enable the relevant managers to make the best decisions and solve problems according fully supporting the organisations strategic planning and unified policies. Production scheduling, inventory control, manufacturing resource planning and quality control are all activities that could potentially be optimised with the use of these various reports.In fact, Coca Cola CHB realises the importance of business reports and according to their 2009 Annual report, theyve been succ essfully rolling out SAP information systems which are expected to improve the efficiency of their entire business, by increasing the speed and accuracy of production, warehousing and sales functions, while increasing customer service levels.The company could also follow Coca Colas example in the United States and use a Group Decision Support System (GDSS). GroupSystem 5 helps Coca Cola save time and money by using a meeting facilitator and braggart(a) all participants an anonymous voice in decisions. This has eliminated the typical problem of a few people dominating decision-making meetings. The system displays only anonymous comments and outlines options. fundamental interaction is allowed but kep to a minimum. The results shorter meetings, less stressful conferences, a focus on shares values and concerns and increased efficacy.Competitive advantage can be achieved by the effective utilisation of the management information system and its reports as managers are supported whilst they work to achieve corporate goals. With an effective management information system in place, Coca Cola HBC can monitor the execution of the Availability credo identify problem areas and opportunities for improvement. By aligning company goals with customers desires and needs, they can provide the right product, in the right location and at the right time.5 entropy Mining and Search Tools AnalysisCoca Colas acceptability factor demands, among other things, effective customer service. Using specific examples, explain how data mining and related search tools can enable Coca Cola to analyse performance here.Many businesses and organisations collect data about their operations. They then examine this data for insights into their operations and into the transactions their business performs. This may be as simple as a hourly glance at a business report or may involve complex analysis using the latest software tools. info mining is utilized because it can improve customer service, bet ter target marketing campaigns, identify high-risk clients, and improve production processes. It is mainly used to help a company save money.Data mining can be successfully employed at the very beginning of a product lifecycle to lower costs during research and development.It can also be profitably employed to save money in manufacturing. Sensors can be installed to keep record of many variables particular to a process. The output from these sensors is then controlled by computer programs that can order slight adjustments to keep production within the proper bounds.Data mining also helps marketing professionals improve their understanding of customer behavior Good customer relationship management requires understanding of customers, their needs, their likes and dislikes. When data mining is correctly utilised within the organization the whole company will be able to benefit from an increased understanding of its customers and market, a better-focused marketing strategy and a more ef ficient use of resources. According to Berry Linoff (2004) data mining plays an important part both in advertising and direct marketing to identify the right audience, choose the best communication channels and pick the most appropriate messages.Coca Cola HBC can integrate their systems with retailers in order to analyse shopping baskets in supermarkets. Unexpected shopping patterns can easily be identified in this way.Another form of employing data mining is by using past behaviour to rank customers. Coca Cola HBC can use sales data to distinguish between profitable and unsuccessful customers. They can also use this to predict which customers are likely to shift to an alternative brand in the future.Recently, Coca Cola started using a new vending tool, equipped with a flat screen, which displays the different products available. The machine offers a wide range of drinks, many that are not soon enough available in retail. The main objective of this new vending machine is to ext ract data regarding individuals consumption. With this data, Coca Cola is then able to blot new consumption trends and subsequently identifies potential new blends and products to develop.Berry Linoff (2004) affirm that the promise of data mining is to return the focus of business to share customers and to providing efficient business processes. This is very important in todays world, where weve learned that targeted marketing will lead to more satisfied and more profitable customers. advert unexpected shopping patterns in supermarkets.Optimize website profitability by making appropriate offers to each visitor.Predict customer response rates in marketing campaigns.Defining new customer groups for marketing purposes.In short, Data Mining can be applied anywhere in your business or organization where you are interested in identifying and exploiting predictable outcomes.Using Web-based Tools for Service and SupportThe Web continues to put an indelible stamp on the way people live an d work, impacting the way they communicate,do business, and conduct friendly interactions. It has empowered the population in countless ways, andcontinually layers on new mechanisms for connecting with anyone, anywhere.Its given voice to every kind of business and end user, as they take to social networks, blogs, wikis, videosharing,virtual reality worlds and tweets in growing numbers. This level of communication has dramaticallychanged the way business gets conducted, to the joy of many high-profile companies who have leveraged it togreat fortune. But to the horror of some businesses, the voices directed at them are harshly revelatory theyrebringing to light broken business practices, service faux pas, product malfunctions, and corporate malfeasance.Some of the rattyest voices stem from service and support transactions, which, thanks to the Webs instantcommunication capabilities, can be broadcast loud and clear across a range of media. Epic stories of badservice bound around the Web in various incarnations, only replaced by the next fiasco. Businesses, particularlythose who havent kept pace with newer marketing and customer response strategies, find they have lessand less control over their own brands.Theres a real shift from CRM, which is very data-centric, to customer-managed relationships, says MichaelMaoz, an analyst with Stamford, Ct.-based Gartner Inc. You can slip away as many billions of dollars as you want,but with their Web at their disposal, your customers are going to determine your brand for you theyre going tomake it or analyze it.Indeed, while more people are starting and concluding their support transactions in online channels, theyreshifting their search away from their providers own properties, says gobbler Sweeny, an analyst at ServiceXRG.Instead, theyre increasingly going to third-party forums or relying on Google searches to get the support informationthey need. The upshot The provider loses the benefit of interacting with their cus tomer or learning fromthe issue.Weve taken for granted for so many years that support questions were an annoyance and came at a cost. Butwhat happens when those interactions dry up and take place somewhere else? says Sweeny. Somebody elseis creating and shaping the experience. They can shape the cognition of your company, sometimes inaccurately,without you