Research Methods for Managers - publié le 25/11/2014

Thèmes abordés

Research Methods, manager, Coca Cola Company

Résumé du document

In this document I will use the knowledge of research method for managers and try to apply the solution to an imaginary business problem. I'm going to use the techniques and tools practiced in class to a business case in the Coca-Cola Company. In this fictional case, the company wants to develop a new line of sodas for one of its biggest brand Sprite. The new line is composed of 3 new flavored sodas. Using tools like Excel and Solver, I will try to demonstrate how many cans of each new sodas the Coca-Cola company need to produce per day in order to maximize the profits given constraints of time, labor, raw materials etc.

The Coca Cola Company is one of the oldest and greatest international beverage firm. The product was invented by a pharmacian, John S. Pemberton in 1886. In 1888, Asa Candler begins to acquire personal control of the Coca Cola formula and patents from John Pemberton and his partners. He founded The Coca-Cola company in 1892 in Atlanta, Georgia (1). The company has grown to become quickly a national firm and a global firm. They have based their reputation based on a strong marketing policy. The annual advertising budget has passed from $11,000 in 1892 to a budget of 1 millions USD in 1911 (2). Some advertising are very famous around the world like the one with Santa, that help to create the modern interpretation of St Nick.

Extraits

[...] The annual advertising budget has passed from $11,000 in 1892 to a budget of 1 millions USD in 1911 Some advertising are very famous around the world like the one with Santa, that help to create the modern interpretation of St Nick. The success of the brand is due to a solid marketing strategy, a innovative design of the bottle shape and the famous taste of soft drink. They also continue to grow by purchasing others soft drinks company all over the world, investing in local company and developing new products with them. that's also a major part of what they are now. According to studies, Coca‐Cola is the most‐admired and best‐known trademarks in the world. [...]

[...] The time required to produce each soda also differ. Our problem is that we want to maximize the profit of the production line knowing that it's running 12 hours per day and produce all 3 products. The maximization model will be used to find how many cans of each product we need to produce each day. The following table summarizes the data of the problem. Product Sprite Strawberry Sprite Caramel Sprite Vanilla Production Time Water Needed 0.25 L 0.3 L 0.26 L Injected CO2 Taste Powder (Flavor) 0.22 mg 0.33 mg 0.27 mg 0.11 mg 0.13 mg 0.08 mg Packaging design cost 0.55 0.49 0.55 The production line has some limits that can't be exceeded like the daily running limitation of 12 hours. [...]

[...] In this fictional case, the company wants to develop a new line of sodas for one of its biggest brand Sprite. The new line is composed of 3 new flavored sodas. Using tools like Excel and Solver, I will try to demonstrate how many cans of each new sodas the Coca-Cola company need to produce per day in order to maximize the profits given constraints of time, labor, raw materials etc . Company Overview The Coca Cola Company is one of the oldest and greatest international beverage firm. The product was invented by a pharmacian, John S. Pemberton in 1886. [...]

[...] In this problem we will focus on the lemon soda Sprite. Let's imagine the company wants to develop the Sprite soda line, adding 3 new products flavored with Strawberry, Caramel and Vanilla. These products are produced in the same factory and production line but don't require the same amount of raw materials to be produced. The production costs for the drink include water, injected CO2 and the flavor (powder). Each product also has a different design printed on the can, so packaging have a different cost. [...]

[...] The Objective Function To determine how maximize the profit per day on the entire product line, we are going to use the following objective function. This will show how many cans of each soda we need to produce to be best profitable. Maximize Z = 2,37 x D1 + 2,18 x D2 + 2,56 x D3 The Constraints Time (in seconds) spend to produce one can of soda. Considering the factory is running during 12 hours consequently each day to produce the cans; the time constraint should not exceed the limit of 12 hours so seconds. [...]