Strategic Leadership and Sustainability at Coca Cola
Multinational corporations operate in dynamic global environments. The ability to respond accordingly, and in a timely fashion, determines how successful they become. Consequently, they take the role of strategic leadership seriously and have extensive and inclusive plans to accomplish it. Coca Cola is one of the multinational entities that stand to enhance the ability to attain objectives and become resilient and sustainable with the right strategic leadership.
Assessment of Internal and External Drivers
Coca Cola’s internal drivers of change are also its strengths. The corporation is a market leader in the sector of the non-alcoholic beverage and runs a vast brand portfolio of more than 500 brands that stabilizes revenue flow. About 94% of the world’s population form its clientele base (Coca Cola Company, 2020). The firm runs four of the world’s top non-alcoholic beverage brands entailing Diet Coke, Sprite, Fanta, and Coca Cola. Moreover, it enjoys a resilient distribution network that ensures access to each of its commodities as preferred in different locations. It has over 250 bottling partners in more than 200 countries and with more than 27 million client outlets (Coca Cola Company, 2020).
Besides the strong internal drive Coca Cola enjoys, some aspects keep it from profiting fully. Firstly, there are serious health concerns about its high sugar carbonated drinks. The entity is also absent in other beverage and food segments, which limits its potential. Also, many communities have blamed it for being insensitive to water management.
Apart from the internal, there are also external drivers. The high growth rates of developing markets offer an opportunity to grow the corporation’s market share. Also, the advent and subsequent use of e-commerce offer an opportunity to sell and deliver bottled water and drinks to a broader market base without spending significant promotional campaigns.
Still, Coca Cola faces a tight contest from PepsiCo. Indirect competition from alternative drinks is also straining its market share (Coca Cola Company, 2020). But perhaps the most significant threat is the growing eco-friendly clientele bases and alliances that oppose unsustainable operations.
The Role of Strategic Leadership
Strategic leaders have a responsibility to ensure present and future competitiveness. To attain these objectives, they must employ internal and external growth drivers while at the same time addressing weaknesses and threats.
Most importantly, developing and implementing a relevant sustainability plan is critical. An effective plan will help Coca Cola tap into the new eco-friendly customer base and fend off competition from the other non-compliant beverage makers.
Sustainability is the basis of strategic wellness. Balancing economic, environmental, and social concerns are paramount to having a balanced growth, especially for Coca Cola, which has a global footprint and hence international responsibilities. The approach might involve modernizing or increasing the relevance of the existing environmental and social responsibility plans by integrating emerging issues. The C.E.O will need to make critical tradeoffs between the economic benefits of the high-sugar carbonated content and the emerging preferences for healthy drinks. Also, the matter of sustainable water management and employment needs consideration. Eventually, the growing base of eco-friendly clients will become a significant market determinant, and Coca Cola can benefit from early preparations.
Beyond, environmental and health issues, Nyangara and Aila (2018) encourage leaders to need to be proactive on social concerns. Modernized social responsibility programs are essential. Sound policies on employee relations and community engagement enhance the quality of life. For example, a policy that bans the sourcing of child labor or supplies from dealers who employ child labor is vital.
These policies boost company image and acceptance, as well as a result of a motivated stakeholder base. According to Christmann (2015), people like dealing with genuinely involved companies that have the interest of the masses at heart beyond just profits. Eventually, performance and resilience will increase.
Overall, strategic leadership at Coca Cola can help retain or even enhance long-term competitiveness. Leaders with long-term thinking recognize the emerging sustainability matter and will be willing to make critical tradeoffs to benefit the company. Strategic realignment in the face of environmental and social concerns is essential for every other firm with a global footprint that seeks to remain competitive in the future.
References
Nyangara, C. A., & Aila, F. O. (2018). Adding customer value through effective distribution
strategy: the case of Coca-Cola’s Equator Bottlers Limited, Kenya. Saarbruecken: VDM Publishing.
Christmann, P. (2015). Multinational companies and the natural environment: Determinants of
global environmental policy standardization. Academy of Management Journal, 47(5), 747–760.
Coca Cola Company. (2020). 2019 Annual Report and Form 10K. United States Securities And
Exchange Commission