direct procuring locally sources raw resources B u s i n e s s F i n a n c e

direct procuring locally sources raw resources B u s i n e s s F i n a n c e


In two to three paragraphs, use required course materials or other research to move the discussion forward and explain the ‘why and how.’ Do not repeat what has been stated but consistently brings in new ideas or aspects related to discussion topic to enhance discussion.

Discussion Topic:

Reflect on the firm’s core competency and its competitive advantage, incorporate the observations made by your classmates during the week 1 discussion. Now consider what four performance factors that are most important to monitor. Rank order them from most to least important. Justify why each performance factor should be monitored and suggest a means to monitor it.

Student’s Response: (Need to respond to this discussion)

Cost Leadership

1) Operating Efficiency (Dess & Davis, 1984)

2) Procurement of Raw Material (Dess & Davis, 1984)

Product Differentiation

3) Innovative marketing techniques (Dess & Davis, 1984)

Integrated Cost Leadership and Differentation

4) Product Quality Control (Dess & Davis, 1984)

Performance factors that are most important to monitor for a well-established company such as Coca Cola are comprised of cost leadership and differentiation factors that may impact their business. Operating efficiencies should be monitored because they “identify weak controls so that they can be corrected” (Garg, 2015). Actionable items are rendered concerning the analysis of production, equipment, time, safety, and savings that can directly impact the cost of good sold (COGS). The expense associated with COGS has a direct impact on the profitability of the company. The procurement of raw materials also has a direct impact of the cost of goods sold. It also has an impact on the social perception of the company and their environmental impact. The direct procuring locally sources raw resources that enhance the economic stability of the general population should generate support locally and politically. Completing routine analysis of corporate financial statements to monitor COGS figures and raw materials expenses should suffice.

Coca-Cola has done an excellent job in their marketing techniques. They use their commercial advertisements to target relatable lifestyle attitudes. They continue to find ways to break cultural barriers and integrate their products in countries all around the world. The Cola-Cola brand is “recognized by 94% of the world’s population” (Who We Are, 2020). Their ability to impact the global market place is impressive and should be monitored for continued growth. Brand recognition is an excellent way to monitor the impact of marketing techniques, but it does not reveal the perception that people have toward the product. To monitor this, I believe that independent analysis could be performed on the Internet surveys, social media pages, and online reviews. This analysis can be used to identify brand perception and product opinions.

Coca Cola operates in five regions around the world. To demonstrate awareness in the social and environmental impact of procuring local raw materials, it is also important that quality standards are upheld. Changes and resources may present difficulties in quality standards and controls that have been successful in other regions. Domestic and internal authorities should routinely audit regional centers. These operations are commonplace for companies such as Coca-Cola and high standards should be maintained to ensure continued success.


Dess, G. & Davis, P. (1984) Porter’s (1980) Generic Strategies as Determinants of Strategic Group Membership and Organizational Performance The Academic Management Journal

Reputation Management. (2019) Retrieved from

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