MANAGEMENT OF WASTAGE AND COST IN COCA COLA COMPANY
This project's aim is to ascertain the most effective way of reducing the cost and wastage in the Coca Cola Company at the same time serving the customers in a better way that minimizes the operational cost. The purpose or objective of this business proposal is to introduce:
- Pilot project for 12 months to all coca cola vending machines in CBD of Melbourne.
- Reduce 10% of the waste of bottles at piloted vending machines, 12 months into the launch.
- Start making company profits 12 months into pilot launch.
4. Promote awareness on wastage and advertise ‘bring your own bottle’ solution
The pilot project as the name indicates is intended to test the practicability of the project in the market. Vendor machines in the Melbourne CBD have been used to help in sampling the viability of the proposal in the business. It is intended to ascertain how effective the vendor machines can serve the customers and how they can be efficiently implemented in the rest of the market to solve the problem of bottle wastage and cost associated in such a waste. The specific goal of the vendor machine is to serve customers satisfactorily with the minimum overhead cost. The Melbourne CBD has been selected to aim at specific town dwellers and the people of higher social class to determine the market consumption and intake. (Hair, 2007)
The second objective is to reduce the cost with a certain percentage. The progress in cost reduction can be ascertained as ten percent of the total overhead cost within a specified period. This objective can be achieved in advocating for customers to come with their own bottles as they purchase drinks from the vendor machine. The reduction in percentage cost is a great step in achieving the cost effective operation in the company.
At exactly twelve months after the launch of the pilot project, the company can start earning some revenue that has been increased by higher efficiency. The optimal implementation of the proposal would lead the company into earning its first profit twelve months into the launch (Freed, Freed, & Romano, 2003).
Promotion of awareness on wastage is another objective of this proposal. There is a need for customers to be educated on the relevance and importance of conservation by requiring them to come with their own bottles as they exchange with the one containing the drink. Awareness on the side of the consumer is one of the integral parts in successful implementation of this proposal. Customer base and awareness towards a product determines sales volume and profitability.
There are a number of strengths that would determine the success of this proposal. The first one is that Coca-Cola Company is well known worldwide and has a greater market share in the local and international market. Therefore, this proposal would be successful since a number of consumers are loyal to the company thus making this move acceptable. Another advantage is that this move of saving on the bottles would signal that the company is setting a good precedent in matters concerning corporate social responsibility by avoiding unnecessary environmental pollution. The company’s opportunity in this proposal is manifested through the increased customer base and as well as increased profitability. The weakness of the large sum of capital committed before the proposal is feasible can be overcome when the project starts earning some returns. Threats have been seen through the activities of competitors who have gone far to introduce substitutes of Coca Cola products. Another threat facing the company and adoption of this proposal is the global financial crisis that faces the Coca Cola Company. Nevertheless the proposal’s benefits outweigh the risks and cost that it becomes a feasible project to embark on.
Hair, J. F 2007, Research methods for business, Chichester, West Sussex, England, John Wiley & Sons.
Freed, R. C., Freed, S., & Romano, J. D 2003, Writing winning business proposals: Your guide to landing the client, making the sale, persuading the boss, New York, McGrawHill.
Hubbard, D. W, 2010, How to measure anything: Finding the value of "intangibles" in business. Hoboken, N.J, Wiley.
Brock, S. L 1992, Writing business proposals and reports: Strategies for success, Los Altos, Calif: Crisp Publications.
Hays, C. L 2004, The real thing: Truth and power at the Coca-Cola Company, New York, Random House.