How Coca Cola HBCs practices enable it to achieve strategic goals

How Coca Cola HBCs practices en conciliateed it to come across strategic goalsExecutive SummaryThe purpose of this report is to assess how Coca Cola HBCs practices enable it to achieve their strategic goals. It is aimed to provide a comprehensive understanding of the make-up and in nisusation factors which affect the be after, coverment and delivery of its products.Coca Cola HBCs strategic depict mountain compass c be and operations undertake is a success story enable them to achieve . The company has been able to identify the real fusss in production and their ca mappings, which has enabled it to properly address them. Theyve also had targets for improvement and accomplishment, which has aided the throughout the path.Coca Cola HBC is a solid and very well managed company and its approach to establishing long-lasting relationships with nodes, suppliers and retailers is a secern aspect to success in todays challenging and aggressive crinkle environment.IntroductionH umble beginnings for Hellenic Bottling Company S.A. were marked by a single cushioned drink packed in small glass bottles at its modest headquarters in Greece in 1969 . This single product was a response to the bare(a) business environment encountered by the company then. Operations were straightforward and supply replenishment to distribution centres were a simple job for the drivers who would only expect to stretch the trucks, determine a route and drop off supplies.Throughout the days, with the impact of globalisation upon world consumption and production, the business environment was transformed and the company steady grew and adapted to these changes. More products were begined, production increased and its operations became much competitive and complex. In 1981 a private holding company acquired majority interest in the firm. After this, the organisation expanded its business through acquisitions.Coca Cola Hellenic Bottling Company was formed in 2000 as a result of the jointure of the Hellenic Bottling Company and London-based Coca-Cola Beverages. Today, the company is one of the largest bottlers and vendors of The Coca Cola Companys products in the world, and the largest one based in Europe.The company produces markets and cheats to customers one of the most well-known defect in the world, Coca Cola.1 Operations Management PracticesCritically assess the extent to which CCHBCs operations management practices enable it to achieve strategic goals as hostel out in the Four As credo.Coca Cola HBC foc practises on a Four As credo in order to sustain its unbroken and growing collects in its marketsAvailabilityAffordabilityAcceptabilityActivationTheir operations strategy cleverly brings their processes together to form a supply chain that extends beyond the fleshly walls of the organisation and strive further involving suppliers and customers. According to Krajeski et al (2010) a firm competes non only by offering fresh products, ripe selli ng or expert finances, but also through its unique competencies in operations and solid management of core processes.The Sand Cone Model suggests that firms female genital organ develop four sustainable competitive advantages following a particular order of strategic priorities. The proposed order is prime(a), dependability, flexibility and cost. subtle operations achievement in whole tone gives the company the ability to deliver high quality products. Excellent operations performance dependability go forth give the company the ability to compete on fast and reliable deliveries ( accessibility). Excellent operations management in flexibility gives the company the ability to deliver on a wider range of products and sore products (activation). Excellent operations performance in cost gives the company the ability to deliver on low price (affordability). The model suggests that if this focus is followed, organisations are then able to build up their advantages concerning all the elements.Considering the Hayes Wheelw mightily four-stage model for manufacturing competitiveness, Coca Cola HBC muckle easily be described as externally jut outive, or stage 4. Their operations are managed proactively to drive the business strategy of the entire organisation. Operations are world class and seen as the heart and soul to achieve customer satisfaction.The establishment of mutual beneficial relationships with suppliers enables them to deliver the best value in damage of quality, cost, service and innovation, suspensoring to achieve the four As in their credo. These relationships have regular collaboration over long-term direction of these partnerships and generally cover operational issues, but great deal also accommodate business issues such as joint investments and operations. Relationships are so skew-whiff that various international suppliers have established local production in different countries. y in orderProduct entropy and information sharing with trade partners is also a critical part of operations management practices. New product developments, promotions and other marketing initiatives, new advances in operational processes, supply availability, pricing strategies, costing, logistics plans should be undertaken in a sharing culture between all involved where there is a high level of honesty and trust.Nowadays bar codes are an essential technology for supply systems, independent of the product. The use of this technology enables the unique identification and bring in of all products through the supply intercommunicate. Like many another(prenominal) firms, Coca Cola HBCs operations strategies are only feasible with the use of bar codes, electronic information interchange (EDI) and point of sale (PoS) data sharing, which firmly link all activity in the supply system to real time customer demand.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 network. This technology is capable of extending the interconnection between retailer and supplier to an entire network. EDI is also used as a means to support 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 save on costs whilst addressing and influencing consumer preferences at the point of sale. For this type of company, point of sale (PoS) data collection is vital, but it would be of little use if well-kept only by the organization. This data is essential for a flexible and responsive supply and demand can only be met using forward fund builds and forecasting rather than operating in-line with real time demand patterns. This helps to support 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 information can drive operational schedules and replenishment is direct from production output rather than stock holding.These tight relationships also help them to involve customers, retailers and suppliers in the processes of product development, modification and readiness. 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, look sharp and agility. Despite high initial costs and time to fully implement, many supplier manufacturers are increasing the use of this form of production organization as long term benefits are very worthy. both of these practices are important building blocks of Coca Cola HBCs operations strategy. These are the forces that help shape them into a customer-driven and customer-focused organisation. Their operations function provides the basis of competitive advantage and set standards for the entire indus soften.Todays grocery is increasingly complex. The retail landscape is ever-changing, consumers are seeking greater potpourri and our customers are demanding higher service levels. In this vibrant and self-propelling environment, we are constantly evaluating the way we do business as we strive to achieve remunerative and sustainable growth.To ensure that the business results we deliver are sustainable over the longer-term, we implemented a new strategic initiative in 2006. Excellence across the Board focuses on developing best-in-class commercial and distribution capabilities, as well as streamlining the management of financial resources. In particular, we are building powerful route-to-market systems and dynamic partnerships with customers to ensure that our execution in the marketplace is unparalleled. At the same time, we seek to optimise the use of our financial working capital and rethink internal p rocesses 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 guide to our long term growth prospects while we remain committed to Explore other adjacent business areas to leverage our infrastructure, facultyen customer relationships and explore new avenues for growth and value.We also manage our business following the six prioritiesto increase our boozing 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 channel in order to enhance marginsto manage capital for growth and valueto drive cost efficiency throughout our businessto create superior sustainable returnsHere are some examples that show how we fulfill these objectives.Customer 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 in force(p) means to ensure the full availability of our products in the marketplace and build lasting relationships with outlet owners.Excellence in marketplace executionExcellence in marketplace execution is supported by our sustained investments in building salesforce soundness. We invest in merchandising equipment to generate impulse sales and equip our sales people with mobile devices to enhance order taking, invoicing and asset tracking.The indorsement key element of our business imperatives is to develop each of our markets by pr oviding 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 phone number of customer- circumstantial programmes. This aims to facilitate a cross-functional approach to preparation 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. Improved preparation of joint annual plans encompassing promotional planning and r eventideue growth initiatives, livestock management and customer-specific cooler placement strategies, are examples of what we believe will bring additional value to our customer relationships.In serving consumers our blueprint can be summarised in four words availability, affordability, acceptability and activation. AvailabilityWe place our range of products within easy reach of consumers in the skilful 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 whitethorn desire a non-alcoholic beverage.AffordabilityWe offer a wide variety of desirable, premium quality products, in packages attach 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 purchasing power in the countries in which we operate.AcceptabilityWe supply an extensive and growing range of products that get word 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 utile communications channels. Combined with our experience in quality control, customer service and efficient distribution, we are able to reach out to customers and consumers in each of our markets and meet their demands.ActivationWe motiv ate consumers to choose our products by improving 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 machinesthe 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 capacity 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 changes 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 c ompany risks having many dissatisfied customers and losing prospect sales as consumer demand cant be properly met. If capacity is excessive, costs will generally be higher than necessary as resources wont be fully apply.Coca Cola HBCs approach to capacity management is certainly to try and match capacity to demand. This strategy relies heavily 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 appropriate 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 learn time. Barnes (2008) points out that decisions involving adding capacity should be made within the necessary lead time as in some cases it can take years to devise the necessary structure and equipment.Coca Cola HBC consider that production planning based on long term forecasting is no longer necessary. Instead, they have opted to operate a continuous planning process. Krajeski et al (2010) agree, as they control 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 sententious term scenarios. He defends that long term forecasts are needed 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 manager is responsible for using historical sales information and consumer data to produce a weekly demand plan. Whilst this approach is based on the use of scientific methods and data excavation tools, accuracy is still an issue. Unfortunately, independent of the number of forecasting methods used by an organisation, none of them are particularly accurate in predicting demand. Barnes (2008) affirms 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 by to predict the future, which might not always be the case. A everyday analysis should also be utilised in order to help them identify relationships between demand and relevant happenings, such as exceptional weather, ad 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 again cannot plug accurate forecasts.Their continuous planning process is also heavily dependent on achieving a consensus plan amongst all relevant senior managers. This approach can be considered valuable as it is designed to satisfy 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 individualistic 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 truly global mindset withCoca Cola HBC has a global sourcing network with facilities in a number of countries. All activities (purchasing, etc ) are integrated and coordinated 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 smaller 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 Group 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 compliance 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 achievement of its A for availability credo? Support your answer with specific examples that demonstrate the value of your chosen reports and information.It is widely known that good-decision making abilities and problem-solving skills enable organisations to reach its objectives and goals. Managing information systems (MIS) can help an organisation to achieve these goals by providing an insight into the day-to-day operations of the company so that they can control, organise and plan more effectively and efficiently.According to stride et al (2008) a management information systems (MIS) is an inte grated 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 supporting internal operations, management information systems also enable collaboration between companies in the supply chain. Using high repair 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 as the relevant information for decision making is available.Minimizes information overload it transforms a large amount of data into summarized form and avoid confusion that may arise when information is too detailed.Coordination facilitates the integration of activities an d 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 grant 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 provide an insight to the companys regular operations.To guarantee availability of its products, Coca Cola HBC could use scheduled reports, produced periodically to monitor and control manufacturing output. The SCM manager could use a daily summary report to ensure he is group meeti ng 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 firm 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 exception 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 key suggests, drill-down reports provide very detailed data about a specific situation. This report could be used to analyse 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 corporate policies. Production scheduling, bloodline 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 successfully 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 Coc a 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 giving 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. 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 achievement of the Availability credo identify problem areas and opportunities for improvement. By aligning company goals with customers desires and needs, they can pr ovide 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 an(prenominal) 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 periodic glance at a business report or may involve complex analysis using the latest software tools.Data mining is utilized because it can improve customer service, better 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 start costs during research and development.I t 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 winces.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 efficient 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 shop 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 unprofitable customers. They can also use this to predict which customers are likely to switch to an alternative brand in the future.Recently, Coca Cola started using a new vending machine, equipped with a flat screen, which displays the different products available. The machine offers a wide range of drinks, many that are not yet available in retail. The main objective of this new vending machine is to extract data regarding individuals consumption. With this data, Coca Cola is then able to recognise 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 busines s to serving 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.Identify 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 meshwork-based Tools for Service and SupportThe Web continues to put an indelible stamp on the way people live and work, impacting the way they communicate,do business, and conduct social interactions. It has empowered the population in unmeasured 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 loudest 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-c entric, to customer-managed relationships, says MichaelMaoz, an analyst with Stamford, Ct.-based Gartner Inc. You can spend 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 break 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 Tom 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 customer 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 sha pe the wisdom of your company, sometimes inaccurately,without you