Project Risk Management Case Study: Coca Cola - PRMA6049, GSM London

This case study delves into the project and risk management strategies employed by Coca Cola, focusing on the importance of business management practices and the application of SMART objectives (Specific, Measurable, Achievable, Relevant, Time-oriented) to enhance efficiency. It identifies specific risks faced by Coca Cola, such as declining soda sales and lack of innovation, and explores how measurable features of SMART objectives aid in risk management and profit margin analysis. The report also discusses the advantages and disadvantages of project planning and project scope, highlighting their impact on goal setting, risk mitigation, resource allocation, and innovation within the company. The analysis includes real-world examples of Coca Cola's performance and strategic decisions, such as introducing diet drinks in response to changing consumer preferences and regulations. Desklib offers more solved assignments.

Running Head: PROJECT RISK MANAGEMENT: CASE STUDY OF COCA COLA
Project and Risk Management: Case Study of Coca Cola
Name of the Student
Name of the University
Author note

2PROJECT RISK MANAGEMENT: CASE STUDY OF COCA COLA
Table of Contents
Importance of the project.................................................................................................................3
Project Plan......................................................................................................................................5
Advantages of Project Plan..........................................................................................................5
Disadvantages of Project planning..............................................................................................6
Project Scope...................................................................................................................................7
Advantages of Project Scope.......................................................................................................7
Disadvantages of project scope...................................................................................................8
References........................................................................................................................................9

3PROJECT RISK MANAGEMENT: CASE STUDY OF COCA COLA
Importance of the project
Business management is a set of doable that must be performed before initiating the
project for achieving better results. This report will discuss about issues and problems that Coca
Cola faces while performing business management. This report will also discuss about the
opportunities Coca Cola will enjoy during their expansion. SMART objectives of Coca Cola is
also discussed in this report.
SMART objective is one of the most important objective parameter that measures
efficiency in goal setting of an organization. SMART objective initiates business management
plan and increases its efficiency. SMART objectives include terminologies namely, Specific,
Measurable, Achievable, Relevant, Time oriented (Wolf and Akkaraju, 2014). Analysis of Coca
Cola with the SMART objective will help in generating the processing of proficiency of Coca
Cola.
Specific: Specific knowledge regarding business will help Coca Cola to reach heights
that are achievable only with the highest efficiency. Specific goal identification technique helps
Coca Cola in identifying the target that is to be achieved. This factor helps in determining short
term goals for the company. Short term goals helps Coca Cola to maintain efficiency in business
management throughout the period during which entire project is prosecuted. Prosecution of
business management helps Coca Cola to arrange and complete business proceeding with ease.
Specific risks that are threatening Coca Cola are as follows: -
 Lessening of sales in soda around the globe
 Ban in sugary drinks in United States has been a serious backlash for Coca Cola

4PROJECT RISK MANAGEMENT: CASE STUDY OF COCA COLA
 Lack of introduction of innovation in beverage sector by Coca Cola has been one
of the major risk that has been harming Coca Cola to a great extent
Measurable feature: Measurable feature of SMART objectives also pays an important
role in increasing efficiency of business management. Measurability of organization helps in
understanding the terminologies of limitations that Coca Cola possesses (Dekhil, Jridi and
Farhat, 2017). This process of measuring limitation helps in avoiding obstacles that might be
heading towards Coca Cola. Calculation of risk management is done with help of SMART
objectives. This is the major reason that Coca Cola has been very efficient in dealing with
problems that come their way. Profit margin of Coca Cola in the year 2017, was nearly 12.37%,
marking a 7% hike in profit margin since 2016. This allows in measuring an increase in sales of
Coca Cola. This process also acts as a reference in understanding the position of Coca Cola in
global market.
Achievable: The goal that higher authorities of Coca Cola set for their employees are
achievable. This is the reason that the employees of Coca Cola works with proper efficiency. The
task that is set for the employees of Coca Cola is achievable, which leads to increase in
proficiency of business management. In the year 2015 Coca Cola had a profit of 5.83%. Higher
authorities of Coca Cola decided to hike the profit to 10%. Authorities demanded a viable
increase in profit which is achievable. Coca Cola managed to earn a profit of 12.73% instead of
10% that was initially set by higher authorities. This was possible only because the goal that was
set was achievable in nature.
Relevance: Relevance of creating new products procurement increases the brand
popularity of the product. Understanding of the global needs and producing products according
to the demands of clients helps in increasing the brand loyalty of the clients as the clients get

5PROJECT RISK MANAGEMENT: CASE STUDY OF COCA COLA
their necessity products under a same roof. After considering the fact that United States have
banned sugary drinks, Coca Cola has been trying to launch a diet drink especially for existing
clients of Coca Cola in United States. This step was taken due to the fact that Coca Cola wanted
to maintain relevance in product management and wanted to expand globally.
Time orientation: Time orientation has been a major reason behind the success of Coca
Cola. Processing of products must be made in accord to demands of the existing clients. In case
the products that are produced by Coca Cola are not very relevant to the time of their production,
then the products are sure to fail in their life cycle. Coca Cola has been trying to update their
products as per the trend and are planning to introduce diet coke in market in order to increase
their life cycle in global market
Project Plan
Advantages of Project Plan
The main advantage of deploying project plan is that employees of Coca Cola will
understand the objectives of the higher authorities. Major advantages of using project plan are as
follows: -
 Goal Setting: Understanding demands of higher authorities of Coca Cola ensures
that employees can perform accordingly and the business management is made
with utmost proficiency by employees of Coca Cola. This leads to the fact that
goals that are set by company officials are very much valid in nature. The
knowledge regarding the objective helps the employees to function accordingly
(Pastore, 2015).

6PROJECT RISK MANAGEMENT: CASE STUDY OF COCA COLA
 Estimation of risks: The fact that Coca Cola uses project planning helps them to
understand the risks that might arise and take steps against the risk before they
occur. This is a major reason that the risk mitigation processes is done.
 Risk mitigation: The risk mitigation theory helps in decreasing the costs that are
incurred in dealing with risks that approach Coca Cola. Milestones can be set with
the usage of project management by Coca Cola.
 Setting milestone: Milestone setting helps in planning of the entire project
accordingly and small steps can be taken by Coca Cola to get the job done by
employees of Coca Cola (Matso and Potter, 2018). On reaching the milestone that
is set by higher authorities of Coca Cola, the organization sets another milestone
for themselves. This is a major reason behind constant expansion of Coca Cola.
 Resource allocation: Project planning also helps in the allocating resources
efficiently. In case project planning is done previously, the resources that are to be
used in business processing is planned initially before starting the project. This
helps in decreasing the cost of the resources that are used is the processing of
business management. This helps in proper maintenance of business orientation
with ease. The cost incurred associated with resources used decreases to a huge
extent.
Disadvantages of Project planning
The major disadvantage of project planning is that, in case the project planning is not
done by a skilled personnel, the planning might not be very efficient in nature. The major
disadvantages are as follows: -

7PROJECT RISK MANAGEMENT: CASE STUDY OF COCA COLA
 Lack of robustness in framework: This leads to inefficient project planning. In
case the project plan is inefficient in nature, processing of the business also gets
more difficult (Kerzner and Kerzner, 2017). This might lead to excess usage of
resources and inefficient cost procurement. This is one of the major risk that is
present due to project planning.
 Lack of innovation: In case of project planning is previously done by Coca Cola,
innovations can never be brought in during functioning of the business
management. As the process of business management is pre-planned by project
planners, new ideas are not entertained during the processing of Coca Cola
manufacturing process.
Project Scope
Advantages of Project Scope
The major advantage of project scope is that project scope helps in understanding the
vision of the higher authorities of Coca Cola. The major advantages of Project Scope are as
follows: -
 This help in understanding the way of prosecuting the business management. The
business management plan that is used for determining project scope for Coca
Cola has been acting as a major reason of success (Kerzner and Kerzner, 2017).
 Employees of Coca Cola has their vision regarding the completion of their
business management. This fact helps in confirming the goal for Coca Cola.
Project Scope also helps in decision making of Coca Cola. This fact of decision
making before the initiation of the project, helps in efficient processing of the

8PROJECT RISK MANAGEMENT: CASE STUDY OF COCA COLA
project. Project scope also provides a reference for the higher authorities of Coca
Cola.
 The reference is set by the scope that is previously set by the organization during
the time of scope decision terminologies (Käkölä and Forselius, 2015). The scope
management also helps in proper delivering of the product as the number of
products before the initiation of the project is set.
 This scope is initially set for the delivering of the products efficiently. This fact
takes into consideration the process that the number of products that might be
needed is pre calculated, leading too efficient delivering of the product.
Disadvantages of project scope
Disadvantages regarding Project Scope are as follows: -
 The major disadvantage of project scope is that it does not prepare Coca Cola for
sudden problems that might arise in the course of the business management
system (Breneman, Brady and Johnson, 2015). Coca cola stays prepared for the
obvious obstacles that can come during business processing but is never prepared
for sudden obstacles that might come. This obstacle might offer huge range of
problems for Coca Cola.
 In case of unplanned problems, project scope will not be of much use.
 Project scope prevents low order employees to add innovation to their working
procedure.

9PROJECT RISK MANAGEMENT: CASE STUDY OF COCA COLA
References
Breneman, D., Brady, V. and Johnson, L.B., 2015. Cook County Soil and Water Conservation
District Biological Sampling for the Poplar River Quality Assurance Project Plan.
Dekhil, F., Jridi, H. and Farhat, H., 2017. Effect of religiosity on the decision to participate in a
boycott: The moderating effect of brand loyalty–the case of Coca-Cola. Journal of Islamic
Marketing, 8(2), pp.309-328.
Käkölä, T. and Forselius, P., 2015. Validating the Design Theory for Managing Project Scope
during Software Sourcing and Delivery.
Kerzner, H. and Kerzner, H.R., 2017. Project management: a systems approach to planning,
scheduling, and controlling. John Wiley & Sons.
Matso, K. and Potter, J.D., 2018. Great Bay Estuary Tidal Tributary Monitoring Program:
Quality Assurance Project Plan, 2018.
Pastore, R., 2015. Week 7 Course Project Assignment: Instructional Design Project Plan Steve
Hoagland Walden University.
Wolf, A. and Akkaraju, S., 2014. Teaching Evolution: From SMART Objectives to Threshold
Experience. Journal of Effective Teaching, 14(2), pp.35-48.