Coca Coco Outsourcing Strategy

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For nearly 126 years, Coca Cola has been functioned as the world largest beverage company. The United States, as Coca Cola international headquarters has on the largest population where Coke is the main beverage for most of the consumers. Coca-Cola Company is the most valuable and visible brand companies in the world. It has the best opportunity worldwide to get into success in all the aspects or the divisions of business performance (Fraedrich, & Ferrell, 2008). Coke however, is said to have a lot in their product branding name in the all world not because they have all the required raw materials but because they outsource raw materials from other companies, that is, their product brand is achieved from processes within the company and processes …show more content…
The second reason came as a result of a growing pressure on the management to remain competitive by accomplishing its objectives more with very fewer resources at a faster pace. The competitive pressure is however a constant driver to enhance efficiency in service delivery.
Outsourcing is also a result of it being reoriented, downsize and reengineered in an unsuccessful or relentless attempt to achieve a state of efficiency, effectiveness and agility expected to deliver an increased productivity.
Analysis Coca Cola Outsourcing Decision
Outsourcing involves the contracting out of a business process to another party. The Coca-Cola Company had shortage in the past, that is why they have decided to outsource the following into the company:
• Merchandising system
• POS application
• Operating
…show more content…
Coca-Cola lacked these systems and it decided to outsource the project and the systems with Macro Integration Services, Inc. to enable them select and implement a new POS and host merchandising system. Together, they agreed to choose a JDS Solutions’ WinRetail™, a system that is meant to handle inventory, sales reporting, replenishment, and also chose a DataVantage’s Trade wind application meant for POS application to which Coke Company lacked. A different system of NCR was selected to help in provision of the POS hardware in such a form of NCR RealPOS™ 80c terminals also with Dynakey™. The ergonomic system design and USB powered connectivity of the NCR RealPOS 80c will help the Coca Cola Company enhance the appearance of cash wraps and also aid in reducing cable

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