Corporate Diplomacy is the highest level of capability to build and maintain the relation between the company and the external stakeholders as they meet greatest needs or achieve the set objectives of the stakeholders such that all the shareholder values are delivered. In corporate company diplomacy is very crucial because the company is looking for expansion and growth as they try to maximize profits in the existing markets, emerging markets, and foreign markets. When the gain entry into the foreign markets they get a chance to interact with many stakeholders who have different ideas, backgrounds and experiences in the market (wild, 2014)
Coca-cola company is a global company that produces and distribute refreshing beverages and it was founded in 1886 by DR. John S. Pemberton. They have one of the most highly reputable brands in the world and it is the universal beverage company in the market. The companys strategies are plans to increase growth in the market share, and they have achieved this through programs like Share a coke which has main them gain entry into the households and increased consumption rate and increased the brand loves grading. Another strategy is expanding their brands beverage investments, and this is by creating a high-value quality brands in the market.
Third, the company is focused on improving the media spending as a way of achieving the long-term profitable increase. Again the company aims at winning at the point of sale, and this is by working with the marketing partners globally to improve delivery. Last the group is to have the best workforce by hiring the highly qualified personnel, train, retain and maintaining the best. These strategies can be achieved by maintaining a good relationship with the various stakeholders.
Coca-Cola Company has corporate diplomacy because they have different external stakeholder and they have tried to build good relationships with them. These stakeholders include all those stakeholders who are most affected by or who most to affect the way they do business. This includes Consumers/Customers, Suppliers, Government & regulators, and creditors.
Stakeholder has own interest in the Company and ask for different needs from them. The Company tries to interact with each one of them basing toothier needs, using different approaches as appropriate. The company engages their stakeholders not only by talking to them but engaging the in the business strategy and communication effectively on third goals and the specific objectives and working with them closely to meet the set objectives of the organization.
Coca-Cola company has achieved corporate diplomacy because they believe that true value can be created by nurturing them based on trust and getting to understand their needs. They address the most important sustainability challenge by engaging different stakeholders on a continuous basis, and this engagement varies according to the stakeholder needs and demands.
In Coca-Cola Company customers are the most important and the company cannot do without them. They have the greatest influence on the company long term goal because they make frequent visits to purchase the company products of their own choice, and also they play a role in value creation because the company relies on needs and demands and this is achieved through good customer care service so as to provide useful feedback.
The company builds and maintains good relationships with customers through their products and services by producing high-quality products. Giving goods and services of good value and innovative through these customers will get satisfied and delighted thus maintaining the loyalty to the company. Coca-Cola maintains good partnerships with clients who can buy and provide useful information and feedback about the enterprise. The company is also doing good to retain the customer trust by making their prices contents for several year, and they also regulate and standardize the retail price of the products so as to ensure their clients are not exploited.
These are the companys business partners who distribute the company product to the various part of the world so that the product can reach the consumers. These stakeholders have an impact role in the growth of the company because they have a sound, consistent and ethical supply chain and the reputation that they build in the local community about the company.
The company should have standards they hold to their suppliers which are same as the one provided by law. They achieve a good relation with the supplies through the production of high-quality products and services that make them marketable, good communication and transparency. The company has formed partnership with suppliers a business plan and strategy through this the companies production as increased giving them exclusive rights to sell their products and services
Government agencies and civil society
Coca-Cola Company has several commitments to meet because they produce products that are consumed by man and, therefore, they should meet these commitments such as the action of diet, health, and physical activity. Also their union union of European beverage associations provides them with the best practices o how to build and maintain these commitments. The company also works with the national government agencies so as the implement the sports and physical fitness programs for their various stakeholders. The government is very crucial because they provide the different laws and regulation for the companys products to be acceptable in the market e.g. the packaging management schemes and promotes recycling.
The government will ensure that the companys growth is achieved especially when there is good resource mobilization, good political good will and thus becomes influential at a greater level. The company maintains the corporate diplomacy with government by following and adhering to the set rules, and regulation does food and drug administration ant other federal state and local health agencies. Thus, the company can maintain the trust of its stakeholders.
These are the stakeholders who provide and participate in assessment and analysis of the company as the conduct briefing for socially participative and responsible community. They do frequent sustainability performance assessment in their yearly financial audits and reports and provide the company with the feedback that is very useful in decision making to ensure the long-term goals and vision of the company are met.
The company has showed higher performance against competitors and demonstrated prospects for growth and has a record of profitability. These make the creditors stay on board because theist interest are being met and because the company provides accountability which can be used nee creditors to access the cost-effectiveness and cost benefit of the business makes them maintain the trust with the company.
In conclusion coca cola has an annual stakeholder forums that form an integral part of stakeholder involvement and engagement process which aims at assessing the sustainability of the company and to demonstrate the creation of real value of the business through leadership and innovation. These forum assist the company in getting useful information and feedback, and new ideas which will assist them in identifying and prioritizing on economic, social and environmental issues that will make the company create value over short-term and long-term goals and remain sustainable as ensure increased growth of the enterprise.
Corporate diplomacy can create real and lasting business value because: it contributes to corporate brand image in the following ways creating a good public image that increase the consumer of the product or service satisfaction and safeguarding the reputation and profits while avoiding unnecessary costs, brand value and quality and by engaging the different stakeholders the company can get diverse view from them and will be able to get brand of good value, company reputation for being creative, innovative and positive thus remaining relevant in the market.
Additionally corporate diplomacy contributes to the competitive advantage that is enjoyed buy the company, ant thesis achieved by producing products they are of high value rare in the market, on-imitable in that the products and services should not be easily reproduced by competitors and sustainable products which can stay in the market for a longer period of time.
Corporate Diplomacy also is important because it reinforces the interest of all stakeholders in the company. This is because corporate diplomacy puts into consideration the interest, needs and demands of all stakeholders and by so doing stakeholders will remain committed, and the long-term business strategy will be achieved. They also maintain a close contact between the stakeholders and the main players in the business and describing the key decision makers and the great influencers.
Globalization has created complexity in the business environment, corporate diplomacy will create influence by creating transparency in the way things are done, ethical consideration among the different competitors and make sure they are responsible, organized and highly reputable socially. Competition can time be unhealthy, and, therefore, corporate diplomacy brings in the moderations on how the different companies should compete and thus ensuring that they create real value and lasting business values. Therefore corporate diplomacy provides the link between the company and the political, social and economic society and this will facilitate negotiation for the growth of markets and problem solving.
In conclusion, the companies that are involved in corporate diplomacy have increasing growth in their business and revenue opportunities in the market. Corporate diplomacy provides the companies with real life tools to analyze all the stakeholder opinions and views and to quantify its impact on business value creation and develop and maintain relationships with stakeholders to create real and lasting business value.
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