Analysis Of The Transformation Process On The Example Of Coca-Cola Company
Inputs in the transformation process include both the various resources used to make the transformation process occur as well the resources that are to be processed whether converted or changed. The resources include things like material, information and customers. Material can be used as inputs and may be processed or unprocessed. For example the inputs for a gold mine would be gold ore. Customers can be inputs when they are the subject being transformed. An example would be a customer having their hair done. Information can be an input when it is being transformed for example information being processed as news for a newspaper.
Erasmus, et al. (2017) further mentions that the inputs that are used to make the transformation process happen include human resources, technology and equipment. The respective authors explain that human resources are the workers involved in the transformation process. Equipment can be in any form for various industries for example machinery and factories for manufacturers and operating rooms for hospital. Technology according to the authors helps the transformation process more efficient and can include satellite communication and automation.
The transformation process occurs when inputs are converted to outputs. The nature of the process will depend on the types of inputs being transformed whether they be in the form of materials, information or customers. For example the transformation process changes the shape or composition of materials thus manufacturers use this type of process. Information being processed results in its shape or composition being changed. It can also be stored or change in ownership. Customers being transformed can change in physical appearance (beauty parlour) or their physiological condition through medical treatments. Outputs are the final products processed during the transformation process. They include cars, bottles, haircuts or transports.
The above information can be applied to Coca Cola’s bottles. The inputs would include the plastic or glass used to make the bottles. The input aids include the equipment and facilities (machinery and bottler factories) and the employees of the factory. The transformation process is the whole bottling process which includes making the bottles and inserting the drink into the bottles. This is all done in bottler factories. The output is the actual bottle of Coca-Cola.
According to Erasmus et al. , (2017) there are five process types which include project, jobbing, batch, mass and continuous. Coca Cola use continuous processing. Continuous processing as defined by Erasmus et al. , (2017) occurs when products are produced at greater volumes and at low varieties. This implies that the same product is made on a continuous basis with no need for machinery maintenance and upgrading. This process matches the process that Coca Cola uses to make its products. The beverage company manufactures the same coca cola bottle or can for countries across the world as mentioned in the case study. It would make sense for them to use this type of processing.
According to Erasmus et al. , (2017) there are four layout types which include fixed position, process/flexible-flow, product/line-flow, and cellular/hybrid. Coca-Cola use the product layout because as mentioned in the case study they produce and serve at a rate of 1. 8 billion every day. Inman (2018) states that this type of layout is best suited for manufacturers who produce high volumes of products through repetitive processes. Coca-Cola produces the same product in greater volumes so it would make sense that they use this layout type.
Employees in the workplace have certain motives or needs they want to satisfy. These motives can be explained by Maslow’s Hierarchy of Needs and Herzberg’s Two-Way Factor. Maslow’s Hierarchy of Needs is a well known model of motivation. It represents human needs in a hierarchical manner and they are physiological, safety and security, esteem and self actualisation needs. Herzberg’s Two Factor Theory is quite similar to Maslow’s Hierarchy but has simplified the needs to either motivational factors (recognition, status, advancement, responsibility) or maintenance factors (social network, supervision, job security, salary, working conditions). These two theories of motivation can be applied to employees in the work place and help explain what motivates them.
According to the case study Coca-Cola has applied the two theories of motivation. For example it was mentioned that employees at Coca-Cola are provided with a safe working environment this satisfies the safety and security needs from Maslow’s Hierarchy and Herzberg’s Two-Factor Theory. Also mentioned in the case study is that Coca-Cola encourages open communication in their workplace. Employees can freely express their ideas and opinions with others. This satisfies the social needs of Maslow’s Hierarchy and one of the maintenance factors (social network) of Herzberg’s Two-Factor Theory. The case study mentions that Coca-Cola provides a rewarding environment in the workplace for their employees. This is done by giving employees programmes that focus on pay, benefits and a working environment. Coca-Cola also provide for its employees competitive rewards and opportunities for career growth through their compensation programmes. This satisfies both the motivational factors (work itself, advancement, status, recognition) and maintenance factors (job security, salary and working conditions) of Herzberg’s Two-Factor Theory. Safety and security needs, esteem needs, physiological needs and self actualisation needs of Maslow’s Hierarchy are also being satisfied.
Many business organisations use segmentation to market and sell their products and services to consumers. Market segmentation involves taking a heterogeneous market of consumers and dividing it into smaller homogeneous parts. Different market offerings are directed to these homogeneous parts or groups. There are three approaches to market segmentation and they are total market approach, single segment approach and multi-segment approach. Total market segmentation involves directing one market strategy to one market. Single-segment approach involves directing one market strategy to different markets. Multi-segment approach involves directing different market strategies to different markets. Based on Coca Cola’s various brands seen on their website, the beverage manufacture mainly uses a multi-segment approach which means that they have different market strategies for different target markets. According to Coca-Cola (2018) they offer various brands such as Fanta, Sprite and Bonaqua. They also have extended their product line and now manufacture Coca-Cola Light, Zero and Life. According to Coca-Cola (2018) both Coca-Cola Light and Zero have no sugar and are therefore targeted to diabetic consumers. Coca-Cola has also decided to target those consumers who are health conscious by providing them with Coca-Cola Life and their Bonaqua water brand. In terms of demographics Adweek (2009) state that Coca-Cola has targeted teenagers with their Fanta brand. This is evident that Coca-Cola use a multi-segment approach to market their products.
A channel captain in terms of product distribution is a business that has dominance in the distribution channel. Either the manufacturer or the retailer can act as a channel captain. If the manufacturer is a channel captain various intermediaries can be induced to distribute a product. The manufacturer can either convince intermediaries to create demand for a product or help push more sales for a product. For example a manufacturer may ask a retailer to push sales of its products through store competitions and may supply special shelves. A lot of products especially cool drinks are marketed like this. Alternatively if a retailer is a channel captain they have the ability to push or pull products. The retailer can have the privilege to advertise the manufacturer’s products and run promotions for those products. Coca-Cola can be seen as a channel captain because they are very well known thus they will dominate the channel.
