Coca-Cola The 1
Running Head: COCA-COLA: THE BALANCED SCORECARD APPROACH
Coca-Cola
The Balanced Scorecard Approach
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Coca-Cola The 2
Coca-cola: The Balanced Scorecard Approach
SLP. I.
Coca-cola Company (hereafter referred to as “the Company” or “the Organization”) is the
owner of four of the world's top five nonalcoholic sparkling beverage brands known to almost every
American. Coca-cola was established in 1886 and presently, it is operational in at least 200 countries
having at the minimum 90,500 associates worldwide and serving “1.5 billions” ( The Coca-cola
2008 p.1 )of customers each day .The Company’s overall goal, which is its mission is to “refresh the
world in body, mind and spirit, inspire moments of optimism through their brands and actions and to
create value and make a difference in all their engagements” ( Mission, Vision, 2006)
The Company is a manufacturer and seller of soft (carbonated) drinks with various brands,
the most popular of which is the banner brand, Coke. In assessing its success, the Organization does
not only count its monetary sales and profits but as well as its effect to the world in general. Coca-
cola Company tries to be open and accessible to everyone who needs information on anything it
does. Financial records, company information, customer-goal, investor values and press releases are
all accessible at the Company’s website, www.thecoca-colacompany.com.
Aside from the abovementioned mission, the Organization’s vision include the following
(Mission, Vision, 2006):
People: Being a great place to work where people are inspired to be the best they can
be.
Planet: Being a responsible global citizen that makes a difference.
Portfolio: Bringing to the world a portfolio of beverage brands that anticipate and
satisfy peoples' desires and needs.
Partners: Nurturing a winning network of partners and building mutual loyalty.
Profit: Maximizing return to shareowners while being mindful of our overall
responsibilities
Moreover, the Company’s strategies are incorporated in its values which include the
following:
Leadership: “The courage to shape a better future”
Passion: “Committed in heart and mind”
Integrity: “Be real”
Accountability: “If it is to be, it's up to me”
Collaboration: “Leverage collective genius”
Innovation: “Seek, imagine, create, delight”
Quality: “What we do, we do well”
SLP II.
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Indeed, customer is very important. Without a customer, any financial organization would not
survive As Coca-cola’s way to retain existing customers and to encourage potential ones they have the
following guidelines:
Vision: Bringing to the world a portfolio of beverage brands that anticipate and satisfy peoples' desires
and needs.
Mission: Refresh the world in body, mind and spirit.
Strategy: “What we do, we do well”
To follow the guidelines and achieve what it wants, a set of very specific objectives must be met.
The achievement of customer level objective, which includes “the satisfaction of customers, their
retention, and larger market share” (The Balanced Scorecard) makes the business perform better.Why is
the customer very important? Because there is a "direct correlation between financial results and
customer.”(Shaw, 2000, p. 37) The Company, to satisfy its mission and vision, through its strategies for
its existing and potential customers, the following objectives are setul:
To satisfy customers with the gratifying taste of high quality products;
The introduction to customers of products with diverse and fortified products that are
healthier.
Production of healthy beverages lines which are tasty yet they are not damaging to
health.
The three objectives above are very important. The Company has acknowledge that “obesity and
other health problems” (The Coca-cola, 2008, p.12) may endanger the potential income of the Company
as well as its name, which can be fatal to a company that” established reputations world-wide, and
branding has enabled international reputations to be created" (Kay, 1995, p. 15). Looking from these
objectives, it can be seen that the third one is the most specific of the three. “production of healthy
beverages lines which are tasty yet they are not damaging to health” would result to the “introduction of
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products taste diversity and fortification making them healthier” that would make customers satisfied
with gratifying high-quality (healthy) beverages. This achieves the strategy of the Company stating,
“What we do, we do well” and also its mission stating. “Refresh the world in body, mind and spirit”: an
unhealthy drink would not satisfy the mind and spirit.
“The following matrices represent the Coca-cola’s customer-level objectives and their
corresponding performance metrics and targets as well as innovative means and the relations to the
Company’s strategy, mission and vision:
Table 1. Identified Objectives and the Corresponding Metrics and Targets
for the Coca-cola Company
Objectives (1) Performance Measure/Metric (2) Level of Performance/ Target (3)
Bringing to the world a portfolio The amount of worldwide sales and World recognition of the Coca-cola
of beverage brands that anticipate profits. brands.
and satisfy peoples' desires and
needs Obtaining overall positive reputation Positive responses to various products
worldwide. offered by the Company..
Internationally achieve popular and
excellent Company name.
Vision-Level Objective
Refresh the world in body, mind The sales volume and sales amount and All products are salable and customers
and spirit (through highly driven profit of the Company. do not have reasons not to buy them.
sales)
Mission- Level Objective
“What we do, we do well” The popularity of products and services Excellent product range.
as well as Company recognition by the
public.
Strategy-Level Objective
To satisfy customers with the The number of additional customers The products must have appealing taste
gratifying taste of high quality buying the products. to customers yet they are of high quality
products beverages.
Sales volume and amount to “health-
conscious” market.
Customer Perspective
The introduction to customers of Customer response through the volume The availability of a wide variety of
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Table 1. Identified Objectives and the Corresponding Metrics and Targets
for the Coca-cola Company
Objectives (1) Performance Measure/Metric (2) Level of Performance/ Target (3)
products with diverse and fortified of sales of the newly introduced vitamins and minerals-fortified, healthy
products that are healthier. products. and “non-obesity causing” products from
which the customers may choose from.
Responses of the “health-conscious”
market
Internal Process Perspective
Production of healthy beverage The Company’s dedication on providing Continued research and development of
lines which are tasty yet they are healthy products through provision of existing and potential products.
not damaging to health. additional budget for the research and
development department.
Internal Learning and Growth Perspective
Table 2. Identified Objectives and the Corresponding Initiatives/Programs
for the Coca-cola Company
Objectives (1) Initiatives/Programs (4)
Bringing to the world a portfolio of beverage brands that Widening the reach of the Company by establishing strong
anticipate and satisfy peoples' desires and needs affiliations in various countries.
Flexible implementation of organizational policies depending
on the country governance where the Company chooses to
operate and sell.
Vision-Level Objective
Refresh the world in body, mind and spirit (through Heavy product and and brand promotions.
highly driven sales)
Providing greater returns to customers, adhering to their level
of satisfaction by providing good customer service, reliable
and affordable tasty products and selling them only the “real
thing”.
Mission- Level Objective
“What we do, we do well” Implementation of quality assurance, be it in the Coca-cola’s
products or in its service.
Strategy-Level Objective
To satisfy customers with the gratifying taste of high Create awareness on the quality of products and of products
quality products. themselves, either through media commercials or giving
away of free items.
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Table 2. Identified Objectives and the Corresponding Initiatives/Programs
for the Coca-cola Company
Objectives (1) Initiatives/Programs (4)
Customer Perspective
The introduction to customers of products with diverse Additions of compatible vitamins and/or minerals to
and fortified taste and ingredients, respectively, that are products.
healthier.
Internal Process Perspective
Production of healthy beverages lines which are tasty yet Reduction of fattening, obesity-causing ingredients from the
they are not damaging to health. products.
Greater research and development efforts from the Company
personnel involve on continuous improvement and product
innovation.
Internal Learning and Growth Perspective
The above targets aim "to improve the quality, performance and accountability" (Stevens, Stokes
& O'Mahony, 2006) of the Company. The metrics on the other hand which are the measures of the
performance must be properly defined or “owned” according to Arthur M. Schneiderman (2006) for it to
be useful. Additionally, initiatives provide “systematic methodology for managers, and employees, to
establish a wide variety of goals and objectives, into targeted and business-aligned viewpoints, and then
render detailed assessments and judgments” (Balanced Scorecard) as to the objectives’ success.
With the above identified performance targets, metrics as well as new programs and Company
initiatives to satisfy the customer-level objectives going upwards to its vision, the Company would have
a well-defined sets of activities and processes to truly achieve what their biggest goal is. Balanced
scorecard is indeed a very useful tool for organizations because it contains. "variables that make or break
a firm in the intensely competitive businesses " (Epstein & Birchard, 2000, p. 82) Although it is not
really the total measure, per se, it is something that “attempts to understand the phenomena” (Milgate,
2004, p. 8) of the business from various aspects.
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