Analysis of the Balanced Scorecard for Coca-Cola Company

free essayInformation Technology issues at Coca-Cola Company are integrated expressly in Customers and Community and the People and Organization points of view. According to Corporate Sustainability requirements, IT targets are also present in the Internal Process viewpoint within of the classes of efficiency and quality. These general objectives are fell through the company. According to Damanppour and Aravind (2011), the framework is managed through programming and Coca-Cola outside (triple primary concern) reporting is a consequence of the information accumulated in it. Besides rewards of administrators depend on the criteria sketched out in the BSC. The general goals are then combined with pertinent pointers and agreed upon targets.

The division that champions Information Technology issues in Coca-Cola is known as the Stakeholder Relations (SR) Department. The top chief of this division is an individual from the official advisory group. The SR division likewise has a BSC. The endeavour to identify with the Corporate BSC is of certainty (i.e. no graphical representation of the relationship). As we comprehend IT department, the Social responsibility BSC appears to take three “courses” to convey worth to the firm (i) Enhance the nature of the SR dialog with external partners (ii) Enhance the SR ability to discover powerful and effective approaches to convey these issues to top management (iii) Enhance the SR ability to convey these problems down to the business unit level.

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In Coca-Cola, there is a substantial push from the top to have IT targets integrated at each level of the organization. This dedication is evident in the Corporate BSC. The path forward in this field for Coca-Cola is portrayed as following the VP of Stakeholder relations “We have to go more to the external partners to look for information. We likewise might want to see more supportability issues on the BSC. Particularly imperative is, however, getting further down in the business with the BSC work.

Goals and Objectives of Coca-Cola

The Coca-Cola Company is a pioneer in the refreshment business with a recognized brand and reliable worldwide presence. According to the Coca-Cola Company’s statement of purpose and 2020 Vision, some of its objectives include:

  • Increase benefit by reducing expenses through effective and proficient production facilities;
  • Focus on environment-friendly packaging development and upholding its sustainability;
  • Continue to enhance its portfolio through events and organizations remembering customer demands;
  • Increase yearly operating income by 6-8% with an aim of doubling revenues by 2020.

Vision: “The Coca-Cola Company exists to refresh and benefit everybody it touches. The fundamental recommendation of our business is timeless, reliable, and simple. When we bring refreshment, worth, bliss and amusing to our partners, then we support and secure our brands, especially Coca-Cola. That is the way to satisfy our absolute commitment to give reliably alluring come backs to the proprietors of our business.”

Mission: “All that we do is propelled by our persisting mission:

  • To Refresh the World in the body, brain, and soul.
  • To Inspire Moments of Optimism through our brands and our activities.
  • To Create Value and Make a Difference all over the place we lock in.”

Coca-Cola’s Business Play to Win Strategy

Coca-Cola’s 2020 Play to Win Strategic Framework depends on its key qualities and four vital objectives: group trust, buyer significance, client inclination and cost initiative. The management “Play to Win” with The Coca-Cola Company and its accomplices are in constant development. Unparalleled ability and superior mentality are key empowering agents of its endeavours to accomplish its optimistic targets (Meyer, 2009).

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Community Trust

To accomplish this need, the management uses its Values to fabricate a society of working capably and the management cooperating with its major partners to offer some assistance with understanding where the management can have the best positive effect. The management concentrates on enhancing all parts of its ecological and social performance and coordinating them into the heart of its operations.

Consumer Significance

The management works intimately with The Coca-Cola Company and utilizes shopper experiences to catch unmistakably characterized market opportunities. Its attention to this territory empowers the company to react quickly and suitably to market patterns, which use this prompt accomplishment at the purpose of an offer.

Client Inclination

The management cooperates with its customers to make economic quality and productive development over every single key channel for the benefit of the clients and the company. The management builds community client connections and guarantees brilliance in financial key performance through streamlined operations and procedures intended to implant a manageable offering society within Coca-Cola HBC.

Cost Leadership

Compelling cost management is a key part of its comprehensive methodology for business sector initiative and supportable development. The management intends to make the company more aggressive by making an incline association and ready to endeavour efficiencies over its business sectors. Its key zones incorporated tight in working capital management, working costs control and reliable open income era. Such accomplishments will allow Coca-Cola HBC to catch future development opportunities through vital and esteem accretive speculations. Steps the management have taken to satisfy this need incorporate framework streamlining, distribution centre establishment and logistics greatness using SAP, as well as moving a percentage of the value-based procedures of Finance and Human Resources to a joint management’s focus.

Analysis of the BSC of Coca-Cola Company

Financial and Learning growth perspective: Coca-Cola assesses the benefit of the technique and considers cost reduction on competition expenses and sales development (an essential activity) while the financial viewpoint concentrates on some operating income results from decreasing costs and offering more units of the product. Client viewpoint: it focuses on business sector portions and measures the company’s achievement in the fragment. It similarly considers the quantity of new customers and consumer loyalty rating (Sanders, 2008).

Internal Business and Client Perspective: through the utilization of financial explanations, winning costs, mechanical specialists and financial examination, it concentrates on internal operations that create value for customers. The management utilizes vital activity, products, services, and procedures to address client issues. Given this, quality is another key characteristic of securing the consideration of clients; enhancing service delivery time by a method of the reduction in the time is taken for products or services to achieve the customers’ needs. In addition, the creation procedure is reengineered to meet client requests for quick and on the spot conveyance or conveyance by post (Sanders, 2008). To improve the achievement of internal procedures that create value for the clients and shareholders, it is important to distinguish company abilities that can upgrade an active re-engineering process. Each of the four points of view is connected to the company’s methodology and ought to decidedly influence the financial viewpoint.

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Secondary Goals and Objectives for the IT office

The accompanying objectives and goals represent the activity plan for the ICT Department.

Goal 1: Effectively deal with the delivery of Coca – Cola Technological Services and needs

Delivering and supporting critical innovation services is indispensable to each department. It provides the workforce with the fundamental resources, which is important for the company to operate profitably. The Department will move toward accomplishing this objective on the following objectives:

  • Centralize Coca-Cola IT capacities to deliver essential framework services;
  • Deploy and guarantee support of a standard structure that meets the company’s business needs;
  • Forecast and budget to provide the best essential services to other departments.

Goal 2: Guide innovation choice making to guarantee consistency with the Coca-Cola business course

The ICT investments and responsibilities achieved in the interest of the company must mirror its general fundamental needs. The administration process supports community decision-making and accountability to organise limited IT resources. Inability to accomplish this procedure would result in systems, services, and equipment that do not appropriately support the workforce. This would cause redundancy and absence of interoperability. The ICT Department will move toward accomplishing this goal on the following objectives:

  • Implement and maintain compelling IT administration;
  • Ensure IT speculations are adjusted to the Company’s Strategic Plan, special business needs, and IT guidelines.

Perspectives of the ICT Department

Perspective 1: Orientation of Users (End-Client View):

Mission: deliver value-adding products and services to end clients

Goals: build up and maintain the decent image and notoriety with end customers; abuse IT opportunities, set up positive associations with the customer group, satisfy end-client prerequisites, and be seen as the preferred supplier of IT products and services.

Discussion of the Metrics

Despite the difficult economic situation, the company’s performance in 2015 is a demonstration of the ability and astuteness of its kind. During FY 2016, the management will do its best to inspire and add to the majority of its kin, especially its cutting edge leaders. 100% of its General Managers and 66% of its capacity heads were advanced from within its ability pipeline. Recharging this pipeline through enlistment and continuous advancement of its ability seat continue to be a necessity. The management selected 197 management students of 26 nationalities, with 51% being female (Ryan, 2014).

The management seeks to provide an operating environment that motivates employees to perform as well as they are to, and its 2014 employee engagement study results exhibit progress on this front. Its commitment and qualities files were 82% and 81% individually, and are at a level that contrasts positively its industry peers.

The IT department seeks to offer an operating environment where employees are propelled to perform at their best. The IT division realizes that drew in, persuaded employees, attempting to their full ability and ready to understand their profession objectives are the basis of the Company’s long term achievement. In the meantime, the IT division strives to ensure that every worker comprehends their role within the business and understands how their individual exertion makes an immediate commitment to the achievement of Coca-Cola HBC. To quantify company advance, the IT department directs a worker engagement review every year. In 2014, the IT division took engagement to the measuring so as to follow manageable level engagement and join the maintainable engagement study and the benchmarking pool of consulting firm Towers Watson (Noe, 2012). This new centre considers experiences on feasible engagement measuring essential contributing components; for example, worker association and inspiration, the interior environment as an empowering agent of superior, differences and incorporation, wellbeing and employee quality suggestion. Support rates expanded for the 2014 engagement review a rise by 5% compared with 2013, with incorporate 95% of all workers. Company Group level records for engagement and qualities were 82% and 81%, separately, for 2014. Amongst 300 Senior Leaders, the engagement file was 93% while the qualities record achieved 95% (Sanders, 2008).

Perspectives 2: Business value (Management’s View)

Mission: Make a contribution to the value of the business.

Goals: set up and maintain a decent image and notoriety with the management, guarantee that IT anticipates providing business value, control IT expenses, and offer suitable IT products and services to external stakeholders.

How It Works

Discussion of the Metrics

Building a robust pipeline of leaders is a significant constituent of the company’s methodology. At the heart of company processes, there are three keys to advancement: appraisal, test, and support. The IT division evaluates the performance and capability of all leaders yearly against the setup gauges reflecting the company techniques, key convictions and examination based division of management aspects. Subsequently, the IT department checked, surveyed and offered input to roughly 15,000 employees during the People Development Forums in 2014 (Lundgaard, 2014). The IT department maintains and deals with the performance of the company’s employees comprehensively. The company concentrates on results, for example, advancement, supportability, and employee’s improvement, alongside with financial metrics; it supports suitable harmony between short and long term objectives in the performance of the daily operations and decision making.

After an effective move, Leadership Training programs provide substantial support. They offer an organized learning environment where all around scrutinized methods for intuition and managing the new difficulties are adjusted, with gaining from associates and practicing in a protected situation. To guarantee long-term achievement, a critical initial step is drawing in and enlisting employees with authority potential. During 2014, the IT department recruited 197 management students for 19 of company’s 20 specialty units (Carr et al., 2010). Among the company’s 2014 volunteers, 51% were female supporting company goals on sexual orientation parity. Management students are offered an institutionalized system that is normally two years old. The IT division is resolved to maintain the company’s current level of interest in student advancement chasing after contracting 200 learners annually throughout the previous two years.

Perspectives 3: Internal Procedures (Operations-Based Perspective):

Mission: successfully deliver IT products and services in a proficient way.

Objectives: foresee and impact demands from end clients and services, be proficient in arranging and developing IT applications, be productive in operating and keeping up IT applications, be skilled in gaining and testing new equipment and programming, and give savvy preparation that satisfies end-user clients.

Discussion of the Metrics

Constant effectiveness improvements are developed in its culture at each level of the Group, and the management continues performing exceptionally well during the year. The management diminished the quantity of creation lines by ten, without relinquishing limit potential, and the number of stockrooms and deliverance focuses by 17 to 307. The management accomplished further efficiencies in operating costs while supporting the company with the right level of ICT.

The conpany’s Shared Services Centre in Sofia, Bulgaria houses some of its back end office forms. Having implemented the initial two stages, which included the exchange of money, HR, value-based and information management exercises for the huge larger role of its business sectors, the management is presently beginning the last stage. The management is exceptionally satisfied to see that the company is turning into a hatchery for skills and ability notwithstanding its essential part, which is to streamline and concentrate its back end office strategies, pick up efficiencies and apply best practices (Meyer, 2009). With Nigeria going ahead as a new market from January 2016, the strategy of the SAP coordinated information management stage is presently ending over the Group. The procedure institutionalization and effectiveness picked up as an aftereffect of this speculation will quicken system enhancement in the coming years, and the management anticipates profiting.

Winning in the Industry

Considering its outcomes in the connection of its key objectives, the management reported a significant advancement. The management will continue expanding in its business sector driving positions taking into account its need to develop classification and shining refreshments. During 2014, the management adopted the offer from nearby brands extending its volume offer in 16 out of its 24 measured markets. In the general non-alcoholic, ready-to-drink class, the management kept up or extended its position in 10 out of 21 markets (Ryan, 2014).

According to Abdulkadir et al., (2012), when incomes bulged in a year, its income development management activities will be instrumental in enhancing cash unbiased net sales income per case by 2.5%. This represents a quickening over its current reputation and is upheld by its implemented OBPPC (occasion-based brand, package, price, and channel) activities.

Creating Shared Value

The management marked the United Nations’ Global Compact leadership activity to advance manageable and moral business practices in 2005, and has given its ten standards an important role in the company methodology, daily operations, and society representing these over its whole value chain. In this regard, the management adds to the Millennium Development Goals through the company exercises, promotion, and group associations freely imparting its encouraging in the fits need zones of human rights, work, and environment and against debasement to its partners each year. As UNGC CEO, Water Mandate signatories the management continue putting resources into water-proficient innovations, work with suppliers on sustainable water management and with its groups and NGO partners towards its water renewal objectives.

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For the present year, the management enhanced its position in the Dow Jones Sustainability Index. This is the seventh year that the company has been incorporated into the files and the first year it has driven both the World and Europe figures in the refreshment section. The management has additionally been recompensed an A rating by the Carbon Disclosure Project (CDP) and a spot in the CDP Global Climate Performance Leadership Index 2014.

Perspective 4: Future Preparedness (Advancement and Learning View):

Mission: deliver continuous change and consider future difficulties.

Objectives: envision and get ready for IT issues that could emerge, consistently overterm IT aptitudes through preparing and improvement, frequently update IT applications portfolio, routinely redesign equipment and programming, conduct financially savvy research into rising innovations and their suitability for the business.

Discussion of the Metrics

The management expects the difficulties it has already faced to manage in 2016. On-going geopolitical pressures are prone to fuel unfavourable outside trade patterns, and frail oil costs might continue, with negative results for economies in a percentage of the Emerging markets, in which the management works. The management will continue pursuing its procedure with an extensive variety of arranged activities from enhancing volumes through advertising activities and concentrating on reasonableness to proceed with the usage of its demonstrated self-improvement effectiveness measures. These endeavours, alongside with tangibly reduced data expenses, will relieve the adverse effects of cash instability and related vulnerability in some of its key markets. The management expects a testing year and is hopeful that the company will demonstrate its qualities in misfortune. There are numerous motivations to be amped up for the eventual fate of the enterprise. The management has considerable resources including a world-class brand portfolio and a different geographic foot shaped impression. The management work in business sectors where moderately low per capita utilization of shining beverages and the potential for the piece of the pie extension present the open doors for development. Its rebuilding endeavours in the course of the recent five years have made a more powerful cost-cognizant society and an incline fabricating foundation. Consolidated, these components fortify the trust in the company’s capacity to deliver on its methodology, augment value and create sustainable, long-term development.

Conclusion

The rare significance of the Balanced Scorecard in the practice today makes management question whether the issue of joining of Information Technology issues in a Balanced Scorecard is a helpful exchange. If such a limited number of organizations are utilizing this instrument accurately, what use would it be able to do to incorporate in it? In any case investigating the four groups that were found to have both the Balanced Scorecard and a solid IT concentrate some preliminary conclusions can be drawn. Coca-Cola’s management had initially noted that there was need to adjust IT management to the Balanced Scorecard. The EMS and the important policy cycle (managed through the BSC) are in this way running in parallel, which is seen by the management to curb various inefficiencies. In this admiration, Coca-Cola’s methodology of coordinating Information Technology issues expressly on the Corporate BSC appeared to have tackled this problem and enhanced the achievement of company goals and objectives. All things considered, this is precisely what the BSC is attempting to do, produce a range of goals, targets, activities and procedures, specific to the company and department.

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The second intriguing issue that we might want to underline is the causal relationship between the Balanced Scorecard use and Sustainability management. Is the utilization of the BSC structure upgrading Sustainability management? The proof of our ownership to a great extent lacks to give a distinct answer. However, a couple of contemplations may help management to outline future theory. Firstly, one of the primary points of interest of the BSC is that it foster dialog in the top management on critical issues and coordinates focussing. This implies the nonappearance of an IT/Sustainability Management from the ‘choice table’ will no doubt result without these matters in the BSC. Assets that were already given to the IT work might be pulled back to “focus” on the apparent new vital matters. To management, this is by all accounts an exceptionally hazardous component. Moreover, given the current abuse of the tool most organizations appear not to be overhauling the markers all the time (if by any means). It seems that once the markers have been chosen the controllers like to keep them as they are and they need powerful systems to scrutinize their value. As such, in a firm utilizing the BSC, it appears that if the Information Technology issues are not “in” they will scarcely ever be.

In Coca-Cola, there is near the first thought of the BSC. There is currently developed value for Sustainability issues that is satisfactorily reflected in their BSC. The historical proof accumulated by management so far appears to propose that the enthusiasm for Sustainability of a firm is, (best case scenario) reflected in their BSC yet evidently not a consequence of the exchange that pushes Coca-Cola to develop it. Coca-Cola case does not disconfirm this discernment. Moreover, they feel that the BSC is offering them to carry these issues some assistance with closing to the Business Units and eventually closer to every last worker in the firm. They likewise see the BSC as only a useful tool. Their absence of utilization of the idea of procedure maps unquestionably hampers exchange on the significance of the picked markers and to some degree affirms the observation within Coca-Cola of the BSC as a performance (or control) tool. All together for the BSC to be the event for learning speculative cause-impact relationship ought to be drawn and their checking results examined, which might just be Coca-Cola next stride in the use of this apparatus.