The Location of Coca-Cola Production and Whether They Centralize Production in Single Country

2021-07-26 15:08:42
4 pages
872 words
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Middlebury College
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Essay
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Coca-Cola is one of the Fortune 500 companies established in 1886 by Dr. John S Pemberton and located in Atlanta, Georgia. The company capitalizes on real production through a system of high monitoring of production processes using the sophisticated control measures and equipment to high-quality production meeting customers expectations CITATION Coc17 \l 2057 (Coca-Cola Company, 2017). Coca-Cola comprehensively capitalizes in the centralized production of syrup concentrate to ensure that they exceed the customer expectations. The centralized production of syrup concentrate in Atlanta Georgia is distributed over the world to franchises Coca-Cola bottlers producing filtered water which is mixed with syrup concentrate to produce different Coca-Cola drinks.

The Coca-Cola change of production strategy in moving from US centralized manufacturing to another country

Since the establishment of Coca-Cola, the company has concentrated on U.S. centralized production and had never configured the change on its production strategy of investing in production in other countries globally nor back to its centralized production unit after several years of outsourcing CITATION Coc17 \l 2057 (Coca-Cola Company, 2017). Thus, Coca-Cola production strategy is defined as centralized U.S. sole manufacturer of the syrup concentrate with lack of focus in manufacturing their product in other countries.

Factors to be considered by Coca-Cola when deciding manufacture abroad

The companys executive quality control department should capitalize on significant assessment of business risk when settling on moving to manufacture overseas. The firms should consider the following factors before manufacturing overseas.

Rules and regulations

The Coca-Cola company strategic controls over manufacturing abroad are subject to the business flexibility to adopt the international norms and regulations attached to the firm custom requirements, limitation on the currency repatriation as well as labor and employment laws CITATION Sar09 \l 2057 (Ireton, 2009). The trade rules can alter of promoting the external production of Coca-Cola company since the presence of restriction limits the imperative need of producing overseas. The U.S. customs clearance heightens the need to assess their international production decision to mitigates on suppressing measures that strain the production efficiency.

Cost of moving

The production unit department entails extensive cost attributable to production equipment and installation thus when deciding on producing oversees the business should consider in evaluating the cost relativeness of manufacturing overseas CITATION Coc17 \l 2057 (Coca-Cola Company, 2017). It is deemed to be expensive to Coca-Cola to capitalizes on the production of its products in several states as compared to production of the Syrup concentrate in its Atlanta Georgia headquarters for the well distributed Coca-Cola bottlers producing filtered water which is mixed with Syrup concentrate.

Products Quality control

Centralized production in Georgia ordains substantive regulation over the product quality control since diversified production can lead to reduced quality assurance hence prompting customers dissatisfaction and reduce earnings.

Culture

The international culture difference determines the need for the company to embrace on international production since the religious constraints and cultured lifestyle consideration affects the business production advancement CITATION Sar09 \l 2057 (Ireton, 2009).

How has technology enabled outsourcing?

Technology capitalizes on the pragmatic measures enhancing business outsourcing practices such as efficiency as well as cost-effective and premeditated service delivery that substantiates customers satisfaction CITATION Coc17 \l 2057 (Coca-Cola Company, 2017). Coca-Cola capitalizes on the use of business analytics to critically understand quality transactions channels using simple processes and better application of effective real-time and digital vendor payments as well as configuring extra cost savings opportunities.

Activity 2_Quality Control

Reason why quality control is significant for a service business for example Sprint Nextel

Quality control is considered fundamental operational measure within the service industry that substantiates the customers satisfaction as well as intensively ensuring a higher rate of customer flow to the business products CITATION Sar09 \l 2057 (Ireton, 2009). Sprint Nextel capitalization in American Telecommunication services ordains pragmatic measures of providing reliable wireless services meets the customers expectations. Quality control is a significant operational measure which should be comprehended within the business to ensure successful delivery of telecommunication services exceeding the customer expectation CITATION Sar09 \l 2057 (Ireton, 2009). Sprint Nextel faces high competition from most of well-established U.S. telecommunication business thus, its ability to configure the quality control measures ensures higher business competitive advantage. However, Sprint Nextel comprehensive adoption of quality control programs ensure high quality services which increase customer satisfaction and higher returns.

Benefits of quality control for a service business

Quality control is designed for a service business to ensure that set levels of service quality is achieved. The benefits of quality control include;

Quality control capitalizes on improving the business service delivery which earns the customers satisfaction and loyalty as well as ensuring high company's reputation.

Quality control configures rendering of quality services which go beyond the customers expectations thus ensuring business competitiveness in the market.

Methods use for controlling quality in service delivery

Conceptualizing on testing of services using third party organizations

The use third party is major method for controlling the quality of service delivery by assessing the services rendered based on the given a set of standards will substantiate the control of service standards service delivery.

The subsequent method of controlling the quality of service delivery is generating a customer service department which capitalizes on tracking the quality nature of service through phone calls and surveys.

References

BIBLIOGRAPHY Coca-Cola Company. (2017). Coca-Cola Company . Retrieved from http://www.coca-colacompany.com/our-company/the-coca-cola-system

Ireton, S. (2009, March 01). 10 Factors to Consider When Sourcing Globally. Retrieved from https://www.joc.com/content/10-factors-consider-when-sourcing-globally

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