Understanding of Business Management and Its Importance

Business management is a set of doable that must be performed before initiating the project for achieving better results. This report will discuss about issues and problems that Coca Cola faces while performing business management. This report will also discuss about the opportunities Coca Cola will enjoy during their expansion. SMART objectives of Coca Cola is also discussed in this report.   

SMART objective is one of the most important objective parameter that measures efficiency in goal setting of an organization. SMART objective initiates business management plan and increases its efficiency. SMART objectives include terminologies namely, Specific, Measurable, Achievable, Relevant, Time oriented (Wolf and Akkaraju, 2014). Analysis of Coca Cola with the SMART objective will help in generating the processing of proficiency of Coca Cola.

Specific: Specific knowledge regarding business will help Coca Cola to reach heights that are achievable only with the highest efficiency. Specific goal identification technique helps Coca Cola in identifying the target that is to be achieved. This factor helps in determining short term goals for the company. Short term goals helps Coca Cola to maintain efficiency in business management throughout the period during which entire project is prosecuted. Prosecution of business management helps Coca Cola to arrange and complete business proceeding with ease. Specific risks that are threatening Coca Cola are as follows: –

• Lessening of sales in soda around the globe
• Ban in sugary drinks in United States has been a serious backlash for Coca Cola
• Lack of introduction of innovation in beverage sector by Coca Cola has been one of the major risk that has been harming Coca Cola to a great extent

Measurable feature: Measurable feature of SMART objectives also pays an important role in increasing efficiency of business management. Measurability of organization helps in understanding the terminologies of limitations that Coca Cola possesses (Dekhil, Jridi and Farhat, 2017). This process of measuring limitation helps in avoiding obstacles that might be heading towards Coca Cola. Calculation of risk management is done with help of SMART objectives. This is the major reason that Coca Cola has been very efficient in dealing with problems that come their way. Profit margin of Coca Cola in the year 2017, was nearly 12.37%, marking a 7% hike in profit margin since 2016.  This allows in measuring an increase in sales of Coca Cola. This process also acts as a reference in understanding the position of Coca Cola in global market.

Achievable: The goal that higher authorities of Coca Cola set for their employees are achievable. This is the reason that the employees of Coca Cola works with proper efficiency. The task that is set for the employees of Coca Cola is achievable, which leads to increase in proficiency of business management. In the year 2015 Coca Cola had a profit of 5.83%. Higher authorities of Coca Cola decided to hike the profit to 10%. Authorities demanded a viable increase in profit which is achievable. Coca Cola managed to earn a profit of 12.73% instead of 10% that was initially set by higher authorities. This was possible only because the goal that was set was achievable in nature.

SMART Objectives

Relevance: Relevance of creating new products procurement increases the brand popularity of the product. Understanding of the global needs and producing products according to the demands of clients helps in increasing the brand loyalty of the clients as the clients get their necessity products under a same roof. After considering the fact that United States have banned sugary drinks, Coca Cola has been trying to launch a diet drink especially for existing clients of Coca Cola in United States. This step was taken due to the fact that Coca Cola wanted to maintain relevance in product management and wanted to expand globally. 

Time orientation: Time orientation has been a major reason behind the success of Coca Cola. Processing of products must be made in accord to demands of the existing clients. In case the products that are produced by Coca Cola are not very relevant to the time of their production, then the products are sure to fail in their life cycle. Coca Cola has been trying to update their products as per the trend and are planning to introduce diet coke in market in order to increase their life cycle in global market   

The main advantage of deploying project plan is that employees of Coca Cola will understand the objectives of the higher authorities. Major advantages of using project plan are as follows: –

• Goal Setting: Understanding demands of higher authorities of Coca Cola ensures that employees can perform accordingly and the business management is made with utmost proficiency by employees of Coca Cola. This leads to the fact that goals that are set by company officials are very much valid in nature. The knowledge regarding the objective helps the employees to function accordingly (Pastore, 2015). 
• Estimation of risks: The fact that Coca Cola uses project planning helps them to understand the risks that might arise and take steps against the risk before they occur. This is a major reason that the risk mitigation processes is done.
• Risk mitigation: The risk mitigation theory helps in decreasing the costs that are incurred in dealing with risks that approach Coca Cola. Milestones can be set with the usage of project management by Coca Cola.
• Setting milestone: Milestone setting helps in planning of the entire project accordingly and small steps can be taken by Coca Cola to get the job done by employees of Coca Cola (Matso and Potter, 2018). On reaching the milestone that is set by higher authorities of Coca Cola, the organization sets another milestone for themselves. This is a major reason behind constant expansion of Coca Cola.
• Resource allocation: Project planning also helps in the allocating resources efficiently. In case project planning is done previously, the resources that are to be used in business processing is planned initially before starting the project. This helps in decreasing the cost of the resources that are used is the processing of business management. This helps in proper maintenance of business orientation with ease. The cost incurred associated with resources used decreases to a huge extent.    

The major disadvantage of project planning is that, in case the project planning is not done by a skilled personnel, the planning might not be very efficient in nature. The major disadvantages are as follows: –

• Lack of robustness in framework: This leads to inefficient project planning. In case the project plan is inefficient in nature, processing of the business also gets more difficult (Kerzner and Kerzner, 2017). This might lead to excess usage of resources and inefficient cost procurement. This is one of the major risk that is present due to project planning.
• Lack of innovation: In case of project planning is previously done by Coca Cola, innovations can never be brought in during functioning of the business management. As the process of business management is pre-planned by project planners, new ideas are not entertained during the processing of Coca Cola manufacturing process.   

The major advantage of project scope is that project scope helps in understanding the vision of the higher authorities of Coca Cola. The major advantages of Project Scope are as follows: –

• This help in understanding the way of prosecuting the business management. The business management plan that is used for determining project scope for Coca Cola has been acting as a major reason of success (Kerzner and Kerzner, 2017).
• Employees of Coca Cola has their vision regarding the completion of their business management. This fact helps in confirming the goal for Coca Cola. Project Scope also helps in decision making of Coca Cola. This fact of decision making before the initiation of the project, helps in efficient processing of the project. Project scope also provides a reference for the higher authorities of Coca Cola.
• The reference is set by the scope that is previously set by the organization during the time of scope decision terminologies (Käkölä and Forselius, 2015). The scope management also helps in proper delivering of the product as the number of products before the initiation of the project is set.
• This scope is initially set for the delivering of the products efficiently. This fact takes into consideration the process that the number of products that might be needed is pre calculated, leading too efficient delivering of the product.

Disadvantages regarding Project Scope are as follows: –

• The major disadvantage of project scope is that it does not prepare Coca Cola for sudden problems that might arise in the course of the business management system (Breneman, Brady and Johnson, 2015). Coca cola stays prepared for the obvious obstacles that can come during business processing but is never prepared for sudden obstacles that might come. This obstacle might offer huge range of problems for Coca Cola.
• In case of unplanned problems, project scope will not be of much use.
• Project scope prevents low order employees to add innovation to their working procedure.

References

Breneman, D., Brady, V. and Johnson, L.B., 2015. Cook County Soil and Water Conservation District Biological Sampling for the Poplar River Quality Assurance Project Plan.

Dekhil, F., Jridi, H. and Farhat, H., 2017. Effect of religiosity on the decision to participate in a boycott: The moderating effect of brand loyalty–the case of Coca-Cola. Journal of Islamic Marketing, 8(2), pp.309-328.

Käkölä, T. and Forselius, P., 2015. Validating the Design Theory for Managing Project Scope during Software Sourcing and Delivery.

Kerzner, H. and Kerzner, H.R., 2017. Project management: a systems approach to planning, scheduling, and controlling. John Wiley & Sons.

Matso, K. and Potter, J.D., 2018. Great Bay Estuary Tidal Tributary Monitoring Program: Quality Assurance Project Plan, 2018.

Pastore, R., 2015. Week 7 Course Project Assignment: Instructional Design Project Plan Steve Hoagland Walden University.        

Wolf, A. and Akkaraju, S., 2014. Teaching Evolution: From SMART Objectives to Threshold Experience. Journal of Effective Teaching, 14(2), pp.35-48.