Question: The Coca - Cola ( Coke ) as the world s largest non - alcoholic beverage company, has built 1 5 billion - dollar brands
The CocaCola Coke as the worlds largest nonalcoholic beverage company, has built billiondollar brands and also claims four of the top five softdrink brands Coke Diet Coke, Fanta and Sprite Although it fell to the numberthree spot in each year since global brand consulting firm Interbrand, in conjunction with Bloomberg BusinessWeek, has identified Coke as the numberone best global brand. CocaColas executives and managers are focusing on ambitious, longterm growth for the company doubling CocaColas business by A big part of achieving this goal is building up its Simply Orange juice business into a powerful global juice brand. Decision making is playing a crucial role as managers try to beat rival PepsiCo, which has a per cent market share in the notfromconcentrate juice category compared to CocaColas per cent share. And those managers are not leaving anything to chance in this hot umm, cold pursuit! In CocaColas case, a glass of per cent OJ is possible only through satellite imagery, complicated data algorithms, and even a juice pipeline Standardisation is what it takes for CocaCola to make this work profitably. And producing a juice beverage is far more complicated than bottling soda. Using what it calls its Black Book model Coke wants to ensure that customers have consistently fresh, tasty OJ available months a year despite a peak growing season that is only three months long. To help in this, Coke is relying on a revenue analytic consultantOrange juice is definitely one of the most complex applications of business analytics, he says. To consistently deliver an optimal blend given the challenges of nature requires some quintillion that is followed by zeroes decisions. There is no secret formula to Black Book, it is simply an algorithm. It includes detailed data about the more than different flavours that make up an orange and about customer preferences. This data is correlated to a profile of each batch of raw juice. The algorithm then determines how to blend batches to match a certain taste and consistency. At the juice bottling plant, blend technicians carry out Black Book instructions prior to bottling The weekly OJ recipe they use is tweaked constantly. Black Book also includes data on external factors such as weather patterns, crop yields and other cost pressures. This is useful for CocaColas decision makers as they ensure they will have enough supplies for at least months. One CocaCola executive says, If we have a hurricane or freeze, we can quickly replan the business in or minutes just because weve mathematically modelled it Discussion questions Which decisions in this case information could be considered unstructured problems? Structured problems?
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