Andina Bottling Company Case
Andina is a major distributor of Coca-Cola products in Latin America. The market for soft drinks is very competitive in Latin America. The dominate brands are not necessarily Coca-Cola or Pepsi brands. For a company to succeed in the distribution and manufacturing of soft drinks in Latin America, they need to be efficient. The plants need to work at capacity or close to it. The distribution also has to be logical. It is not worth it for them to sell to less populated mountain areas. The point of the new system that Andina is introducing is going to make sales, distribution, and manufacturing easier. The three countries are going to share their information with each other. Control panel and the rest of the system will be successful if Andina can convince each country that they can trust it. Andina is doing a good job of trying to unite the three subsidiaries through Control Panel.
For Andina to succeed in the bottled drinks manufacturing and distribution business, they need to be the most efficient that they can be. There are many bottled drinks in Latin America. There are many knock-offs of Coca-Cola as well. Andina is facing a lot of competition. They need to make sure that they are selling to a larger audience and not to a smaller one. There is no point in concentrating a large amount of your sales force on a mountain area or one that is spread out over some distance unless there is a large population that the drink is marketed to. If the mountain region makes up less than 5% of the company’s sales, they should try to focus on a more populated area with more of a target market. In the case, it talks about how this happened in Argentina. They had 25,000 clients that accounted for only 3% of their sales, (10). The distribution costs were incredibly high on these customers. The smaller clients were raising their distribution costs because delivering a case here and a case there adds up.
When it comes to manufacturing, the company needs to make sure that they have enough outputs for the demand. Also the sales force needs to target the correct market. If the sales force focuses on a market with low consumption, their sales are not going to be as good as a market with high consumption.
With the implementation of the new system and control panel, Andina is trying to bring their company together. T...
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In order for Control Panel to work fully, Andina corporate needs to convince their Brazilian subsidiary that the Control Panel is here to help not hurt them. Also it seems like a case of the managers being afraid of losing their jobs to other managers such as one from Chile. The corporate headquarters needs to reassure them that Control Panel is not a way to fire the employee but there to help them do their job more effectively and efficiently. Maybe a training session with the employees could help boast their confidence in the system. For the managers in Brazil, they could hold like a managers retreat and inform them of how useful the whole system and it components are. They could also try to reassure them that they will not be losing their jobs because of the implementation of the new system.
Andina is making a very good effort to combine their company. They seem to be willing to work with each subsidiary to try and make the manufacturing and distribution processes easier. They need to continue to take the path they are currently on. They also need to keep reassuring their subsidiaries that this new system and all it components are there to help not destroy.
Pepsi needed a strong regional partner. Pepsi had been falling behind to Coke in Mexican market. However, changes in the regulatory environment had cut Coke’...
...sion of its plants, which resulted in an increase in production and a greater number of employees. This required the communication of too much technical detail, where it would be impossible to interact without changing their business environment. The solution to this fourth revolutionary stage is to move towards more collaboration.
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With that being said, knowing the routes products take in getting from point A to point B requires a planning process with the ability to create practical shipment arrangements by consolidating orders to optimal shipping volumes by also taking into consideration the variety of trucks, the number of stops in routes, and the potential for outside restrictions according to the Supply Chain Digest (Web, 2014). With most companies that process shipping trucks, drivers spend valuable time waiting for the trucks to be loaded and unloaded with product shipment, causing a loss in revenue gained through quicker delivery times customer. With proper planning and implementation of a network wide system throughout PepsiCo’s supply chain, the delivery function more specifically that shows outbound and inbound capacity, appointment schedules, and available times for delivery receipts, drivers can be aware of time slots that they can get in and out with to better utilize time and capital. With the determination between the differences of inbound and outbound shipments, PepsiCo will be able to further improve carrier efficiency and reduce their overall transportation costs.
...production could not be justified without wide distribution. Distribution needed the support of strong advertising from beginning the company with the conviction that fulfilling customer needs and desires is the only road to success (Perkins, 2001).
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1,000,000 boxes. Coca Cola company to market in China can 't made such a grate success without a successful international marketing strategy, so this paper mainly introduces the business strategy Coca Cola company in China has taken to.
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