Business Management and Innovation Techniques for Coca-Cola Company

This report provides a comprehensive analysis of Coca-Cola's business management and innovation techniques. It begins with an executive summary and table of contents, followed by an introduction that highlights Coca-Cola's market position and the importance of innovation in its competitive landscape. The discussion section analyzes the current system, including its impacts, objectives, existing barriers, and competitor analysis, with a focus on PepsiCo. The report explores resources needed for innovation, generation of system concepts, and techniques for stakeholder discussions. It justifies a chosen innovation idea, explaining how Coca-Cola can improve its market sustainability by reducing plastic waste, offering a wider range of beverages, and reducing water usage. The report details a development plan, including the need for specialized assistance from chemical engineers, nutritionists, and environmentalists. It outlines the potential impact on sales and brand image, an operational plan, and a communication plan to promote CSR. The report also covers learnings, development strategies, and a trial of the system, including stakeholder feedback and parameters for trial. It concludes with recommendations for product diversification, sustainable practices, and increased market value.

Running Head: BUSINESS MANAGEMENT AND INNOVATION TECHNIQUES
BUSINESS MANAGEMENT AND INNOVATION TECHNIQUES
Name of the Student
Name of the University
Author Note

1BUSINESS MANAGEMENT AND INNOVATION TECHNIQUES
Executive Summary
This paper aims to study the ideas of business management and look into the innovation
techniques of a company. The chosen organization for study, presented in this paper is Coca
Cola, the largest beverage producing company. The paper delves into the Company’s
business aspects, discusses the major challenges it faces and also looks at the scope for
innovation. The strategies of the companies are analyzed besides the measures taken by Coca
Cola to improve its brand image. Further, innovation plans are suggested to enrich the market
sustainability and improve the aspects of adaptation and sustenance for the brand.

2BUSINESS MANAGEMENT AND INNOVATION TECHNIQUES
Table of Contents
Introduction................................................................................................................................4
Discussion..................................................................................................................................5
Analysis of the current System..............................................................................................5
Impacts:..............................................................................................................................5
Objectives:..........................................................................................................................5
Existing Barriers:...............................................................................................................5
Competitor’s Analysis:.......................................................................................................5
Resources required to foster innovation:............................................................................5
Generation of system concepts and options...........................................................................5
Concepts and Ideas to foster innovation:...........................................................................5
Techniques to discuss with stakeholders:..........................................................................5
Justification of the chosen idea and challenge:..................................................................5
Explanation of the selected idea:........................................................................................5
Development of plan for the system......................................................................................5
Need for a specialized assistance:......................................................................................5
Potential impact:.................................................................................................................5
Operational Plan:................................................................................................................5
Communication Plan:.........................................................................................................5
Learnings and Development Strategies:.............................................................................5
Trial of the system..................................................................................................................5

3BUSINESS MANAGEMENT AND INNOVATION TECHNIQUES
Explanation of the procedure that is to be obtained, its analysis and integration of
feedback of the relevant stakeholders:...............................................................................5
Discussion of the parameters for trial: Implementation plan:............................................5
Monitoring, attending reviews and continuous improvement procedures for a developed
system:................................................................................................................................6
Recommendation........................................................................................................................6
Conclusion..................................................................................................................................6
References..................................................................................................................................7

4BUSINESS MANAGEMENT AND INNOVATION TECHNIQUES
Introduction
The idea of business management aims to develop strategies and techniques that are
competitive and of advantageous nature. The paper chooses Coca Cola as an organization to
study the same. It tries to focus on the competitive market structure of the beverage company
and investigate into its opportunities for innovation. Coca-Cola is one of the largest brands in
the production of non-alcoholic beverages with 500 non-alcoholic and 3000 other forms of
beverage products (The Coca-Cola Company, 2019). It produces a line of carbonated drinks
and captures the market, leading in the beverage industry. The company has certain
prominent rivals and a large scale of production. When the market of a brand spreads
globally, understanding the factors that affect the business in various geographical locales
becomes important. This knowledge is necessary to have an idea about the critical factors
associated with a new product development (NPD), if so. Thus, it helps the company to
realize the blueprints of success with such detailed and discrete analysis and approach a
strategy or innovation to boost its business market (Nelson, 2014). The paper also looks at the
affordability and viability of an innovation plan in a market where the organization depicts an
integrated business model.
Discussion
Analysis of the current System
Impacts:
The Company has presently been using plastic bottles that has increased the
sales of the beverage manifold. However, this has led to the creation of a huge amount
of toxic plastic wastes, where, most of these do not undergo recycling. The company
also uses water at an increasing amount to add to its production as water remains as
the main ingredient of the Company’s line of beverage (Elmore, 2014).

5BUSINESS MANAGEMENT AND INNOVATION TECHNIQUES
Objectives:
The Company is aiming to reduce the plastic wastes, produced by the
Company using the various alternative approaches in the United States. However,
such situations remain completely absent in the developing nations where the
Company is established and manages its line of integrated system of production from
these units. It is aims to achieve a higher rate of sustainable development and
empower women to encourage its social market structure.
Existing Barriers:
The major barrier that the largest beverage Company faces is the saturated line
of production where it majorly focuses on the production of beverages with less sugar.
With people becoming more health conscious, they are relying on healthier versions
of drinks that use less sugar and remain organic.
Competitor’s Analysis:
There is also a significant competition from PepsiCo, which has
recently gained 2.95 percent of the market shares in the last two years while 30.64
percent in the last five years. It is beating Coca Cola though Coca Cola is still
managing to exist as the leader because Coca Cola has last 1.45 percent of the market
shares in the last two years and 9.25 percent in the last five years (Forbes.com, 2019).
Resources required to foster innovation:
The resources required by the Company at this point to foster an innovation
plan shall be the increase in the capital investment as the Company runs a huge risk in
the financial market for its large amount of debts (Lu, 2013). The Company needs to
focus on the sustainable development and use water efficiently as water crisis is
increasing at an alarming rate across the globe. The Coca Cola company is

6BUSINESS MANAGEMENT AND INNOVATION TECHNIQUES
continuously accused of water crisis as the company uses an average of 600,000 liters
of water per day(www.theguardian.com, 2019)
Generation of system concepts and options
Concepts and Ideas to foster innovation:
The Company is majorly in a line of production that is saturated. This means
that the Company does not have much alternatives or options in its line of beverage
production of food production. The Coca Cola Company only produces a line of
carbonated drinks that requires alternatives or substitutes like alcoholic beverages,
fruit juices, cold coffee, green tea, ice tea and similar healthier versions of beverages.
These options can be explored if the Company does not want to introduce itself into
the food industry but only rest to the beverage one (Arcese. et al., 2015).
Techniques to discuss with stakeholders:
The techniques that the Company can discuss with its stakeholders are
producing a line of innovation and segmentation or differentiation in the product
market (Uhl & Gollenia, 2016). Like PepsiCo caters to a wide scale of customers by
making its presence across the range of soft drinks, snacks and also healthier versions
of drinks like Tropicana and mineral water brand, like Aquafina (PepsiCo, Inc.
Official Website, 2019).
Justification of the chosen idea and challenge:
The above idea has been chosen by looking at the growing trends in the
market shares of PepsiCo besides its diverse products availability in the market. It
also helps in motivating the customers and making them stay within the brand
dimension even while opting for healthier versions of food or catering to a larger base
of customers across nations and preferences.

7BUSINESS MANAGEMENT AND INNOVATION TECHNIQUES
Explanation of the selected idea:
The selected idea encourages Coca Cola to implement two of its major aims or
challenge of reducing plastic wastes and attaining a sustainable development. The
Company needs to focus on three major domains:
 It needs to stop the use of plastic packaging and make it available only
for larger quantities. While, use aluminum cans, other metallic
containers or glassfor smaller quantities.
 Introducing a wide line of beverages that cater as both substitutes and
complementary drinks as well as food items for every taste bud and
health conscious beings.
 The Company needs to reduce the usage of water, which will only
occur if it uses more of fruit juices or other food items to fill that gap.
Development of plan for the system
Need for a specialized assistance:
The Company requires chemical engineers as well as nutrition and health
experts besides environmentalists in its panel of Boards and cohesively innovate
products and strategies to maximize its gain from the capital invested, in a sustainable
manner. This is essential in the changing scenario of market where the adaptation is
taking place very fast.
Potential impact:
The major impact of this will certainly be in the sales of the Company.
However, it will set a high brand image and identity of the Company in the global
market with these initiatives. Reducing the content of sugar, sodium and saturated fat
in the beverages can be curbed down sufficiently with the adoption of strategies that

8BUSINESS MANAGEMENT AND INNOVATION TECHNIQUES
aim to promote a healthier and happier living. The intake of more sugar and salt also
leads to the formation of kidney stones (Jumaah, 2016). The Company will also have
an alternative line of products to depend on in case of worse situations of water crisis
where its production can get affected significantly for its single, saturated line of soft
drink production.
Operational Plan:
The Company can operate from the perspective of the buyers and
stakeholders. It helps to encourage the situation of the Company and encourage
investments by promoting a socially responsible status of the Company. The
Company has used the Design-Collect-Partner program to recycle the vast expanse of
plastic waste, which the company produces. The company states that in the year,
2018, 58% of the containers, including the cans were collected, refilled and
recycled(The Coca-Cola Company, 2019). By the year, 2025, the Company also aims
to make their packaging 100% recyclable besides aiming to recycle at least 50% of
their manufactured containers by the year 2030 (The Coca-Cola Company, 2019). The
company has also undertaken a responsibility and is now striving with a goal to
empower 500,000 women by 2020 in China alone. The Coca-Cola Company has
committed to empower five million women by the year 2020 (The Coca-Cola
Company, 2019).
Communication Plan:
The Company can motivate buyers through persuasive approaches by raising
awareness about the social and climatic changes. It can launch products and conduct
press – conferences to do the same to reach out to a global audience and encourage
Corporate Social Responsibilities (CSR) strategies.

9BUSINESS MANAGEMENT AND INNOVATION TECHNIQUES
Learnings and Development Strategies:
The approaches of developing a sustainable environment with product
differentiation are essential in order to retain the market shares for the Company.
Trial of the system
Explanation of the procedure that is to be obtained, its analysis and integration
of feedback of the relevant stakeholders:
The Company is trying to use newer recipe for its carbonated drinks by using
less sugar, which lead to the discovery of Coke. The Company has attained a
remarkable volume of share in Mexico which measures at a percentage of 23 for the
newly launched recipe which has 30 percent less sugar (that is, 63,000 tons of sugar
removed) in the initial rollout of 2018 (Scrinis, 2016). This was implemented in the
nine international market domains in the year 2018 while the rest of the markets
would follow up in 2019.
Discussion of the parameters for trial:
The trial requires compliance with the consumer, it requires a loyal customer
base that will encourage such product diversification (Slavova, (2014). The Company
requires assurance and encouragement from shareholders and the administration of
the government to work efficiently. Any regulation or laws that hinder the Company’s
innovation process requires prior assessment.
Implementation plan:
The implementation plan should be announced and provided in the market
forquality controls checks. It should be precisely developed and implemented after
gathering market knowledge, data and analysis of the same to ensure successful
product service. The innovation plan should deliver the best possible outcomes in the

10BUSINESS MANAGEMENT AND INNOVATION TECHNIQUES
market to benefit the investors, shareholders, consumers, suppliers as well as the
owners.
Monitoring, attending reviews and continuous improvement procedures for a
developed system:
An effective mechanism for the development of the innovation product or
process, as described above, requires efficient monitoring of the product and
constantly checking and improvising the line of production to enhance the quality of
the product or service, being provided.
Recommendation
The Company requires us to produce a line of diverse products that could cater to the
all the consumers across ages and target towards discovering a healthier line of production. It
shall also emphasize on the development of environmentally sustainable practices. The
Company shall aim to look at the aspects of market sustenance and increase its value before
the shareholders to gather more market shares and profitability. Coca Cola being a
multinational company makes its presence in every nation and develops an integrated system
of production and supply, thereby, also using a lot of drinkable water (www.theguardian.com,
2019). Diversification and fragmentation in the production line will lead to a development of
a more competitive market for the Company (The Coca-Cola Company 2019). The strategies
to merge with other fast food chain retailers like Pepsi, can vehemently boost the consumer
base for Coca Cola.
Conclusion
Thus, the study reveals that the Coca-Cola Company needs to adapt itself with the
changing scenario, norms and market demands. This calls for updating its line of production
by introducing substitutes for carbonated drinks besides informing consumers about the

11BUSINESS MANAGEMENT AND INNOVATION TECHNIQUES
unhealthy effects of consumption of such aerated drinks. If the company fails to update and
adapt itself, the rivals, who are undertaking measures to introduce substitutes and
complementary goods for their beverages like PepsiCo, will soon capture a major percentage
of shares in the market, in the near future (Ross, Pandey & Ross, 2015).
In addition, the concept of merging with fast food brands who are sellers of
complementary goods, is an additional advantage for PepsiCo. Presence of strong rivals like
PepsiCo who are now collaborating with brands like KFC and Domino’s Pizza are now
replacing the presence or possibility of Coca-Cola in whatsoever form to grasp in a larger
market (www.thehindubusinessline.com, 2019). PepsiCo also announced the use of 100%
rPET, that is, recycled polyethylene terephthalate, a form of plastic packaging, in New York.
Besides, the company’s water brand, Aquafina also has its root embedded strongly in the
market. The company is now taking endeavors to package water in aluminum can and sell the
same (www.bevnet.com, 2019).
The fast-food supply chain is ever growing, especially in the busy cities of the United
States. It is a moderate demand if consumers are opting for healthier versions of beverages
like coffee, tea or fruit juices instead of aerated drinks when they are visiting fast food
junctions, regularly, while heading for their work or on their way back home.

12BUSINESS MANAGEMENT AND INNOVATION TECHNIQUES
References
Arcese, G., Flammini, S., Lucchetti, M., & Martucci, O. (2015). Evidence and experience of open
sustainability innovation practices in the food sector. Sustainability, 7(7), 8067-8090.
Chaudhuri, A. (2015). Supply chain innovations in healthcare. Innovations in healthcare
management: Cost-effective and sustainable solutions, 261-272.
Elmore, B. J. (2014). Citizen Coke: The Making of Coca-Cola Capitalism. WW Norton &
Company.
Forbes.com. (2019). Pepsi Beats Coke. Retrieved 1 September 2019, from
https://www.forbes.com/sites/panosmourdoukoutas/2018/07/14/pepsi-beats-coke/
#7ffca28a11d0
Jumaah, I. A. M. (2016). Effect of Coca Cola Consumption on Urinary Crystals Formation
and Some Blood Biochemical Parameters. Diyala Journal For Pure Science, 12(4-
part 1), 147-159.
Lu, A. D. (2013). Harnessing social innovation through inclusive thinking. Japan Social Innovation
Journal, 3(1), 56-61.
Nelson, J. (2014). Innovative Platforms for Public-Private Dialogue. The paper presented at the.
PepsiCo, Inc. Official Website. (2019). Product Information. Retrieved 1 September 2019,
from https://www.pepsico.com/brands/product-information
Ross, R. B., Pandey, V., & Ross, K. L. (2015). Sustainability and strategy in US agri-food
firms: An assessment of current practices. International Food and Agribusiness
Management Review, 18(1030-2016-83052), 17-47.

13BUSINESS MANAGEMENT AND INNOVATION TECHNIQUES
Scrinis, G. (2016). Reformulation, fortification and functionalization: Big Food corporations’
nutritional engineering and marketing strategies. The Journal of Peasant Studies,
43(1), 17-37.
Slavova, M. (2014). Consumerism as a source for innovation and product development.
The Coca-Cola Company. (2019). Economic Opportunities. Retrieved 17 July 2019, from
https://www.coca-colacompany.com/stories/economic-opportunity
Uhl, A., & Gollenia, L. A. (2016). Digital enterprise transformation: A business-driven approach to
leveraging innovative IT. Routledge.
www.bevnet.com/news/2019/pepsico-announces-100-recycled-plastic-lifewtr-packaging-
elimination-of-bubly-plastic-bottles. (2019).
www.theguardian.com/environment/2003/jul/25/water.india. (2019).
www.thehindubusinessline.com/companies/pepsico-replaces-coca-cola-as-dominos-
beverage-partner/article25371040.ece. (2019).