STRATEGIC MANAGEMENT PROJECT

Introduction

Strategic management is that the management of an organization’s resources to

realize its goals and objectives. Strategic management involves setting
objectives, analysing the competitive setting, analysing the
interior organization, evaluating ways, and making certain that management
rolls out the ways across the organization.

Strategic management primarily suggests that the implementation and

formulation of assorted ways so as to realize the goals of the corporate.
This is the elaborate initiative that is taken by the highest management – these
strategic choices are taken on the idea of obtainable resources –
they additionally take into thought the consequences of the external and
internal setting on their choices.

Strategic management is split into many colleges of thought. A prescriptive

approach to strategic management outlines however ways ought to be
developed, whereas a descriptive approach focuses on however ways ought
to be place into observe. These colleges dissent on whether or
not ways are developed through AN analytic method, during which all threats
and opportunities are accounted for, or are additional like general guiding
principles to be applied. Following are the key features of strategic
management:
• Companies, universities, non-profits, and alternative
organizations will use strategic management as how to form goals and
meet objectives.
• Flexible firms could notice it easier to form changes to their structure and
plans, whereas inflexible firms could chafe at a dynamic setting.
• A strategic manager could manage strategic management plans and
devise ways that for organizations to fulfil their benchmark goals.

Business culture, the talents and competencies of workers,

and structure structure are all necessary factors that influence however a
corporation can do its expressed objectives.
Inflexible firms could notice troublesome to achieve a dynamic business setting.
Making a barrier between the event of ways and their implementation will build
it troublesome for managers to work out whether or not objectives are
expeditiously met. While an organisation’s higher management is ultimately
chargeable for its strategy, the ways themselves are typically sparked by
actions and ideas from lower-level managers and workers.

A corporation could have many workers dedicated to strategy instead

of relying exclusively on the chief military officer (CEO) for steering.
Because of this reality, structure leaders specialize in learning from
past ways and examining the setting at giant. The collective data is
then accustomed develop future ways and to guide the behaviour of workers to
make sure that the complete organization is moving forward. For these reasons,
effective strategic management needs each an inward and outward perspective.

Strategic management extends to internal and external communication

practices still on following, that ensures that the corporate meets goals
as outlined in its strategic management arrange. It facilitates the working of the
company and create a proper framework for the management and the
employees.
Objective
• To understand the core values, vision and mission.
• To perceive the interior and external setting during which Coca
Cola operates.
• To perceive the long run prospects of various merchandise.
• To decipher whether or not Coca Cola strikes a balance between its
profits and social responsibilities.
• To establish and characterize the various growth ways employed by Coca
Cola.
• To realize the Coca-Cola Company’s ways management method.
Limitation
Strategic management includes a group of future goals and objectives of the
corporate that leads to following limitations:
• Strategic management involves continuous assessments
of essential elements, like external and internal environments, short-
run and long objectives, structure structure, and strategic management.
These elements are reticular, thus a modification in one part could have
an effect on alternative areas.

• Managers pay an excellent deal of your time making ready, researching

and human activity the strategic management method, which
can impede regular operations and negatively impact the business. This
makes strategic management an awfully time intense method.

• Managers should endlessly develop and improve synergies

among workers to make sure buy-in and to garner support for the
company’s objectives and mission and this
becomes difficult for container still because the management.

• Although strategic plans facilitate scale back uncertainty in

meeting long objectives, the look method itself provides opportunities for
missteps. a corporation must anticipate the long
run, that involves numerous degrees of modification still as risks.
Table of Content Page

Industry Profile 1
Company Profile 2
Vision, Mission and Value 3
Scope of Business 4
Five forces Model 5-6
SWOT analysis 7-10
Industry Profile

beverage industry) produces drinks, especially able to drink products. Drink

production can vary greatly counting on the merchandise being made.
ManufacturingDrinks.com explains that, "bottling facilities differ within
the sorts of bottling lines they operate and therefore the sorts
of products they will run". Drinks could also be canned or bottled (plastic or
glass), hot-fill or cold-fill, and natural or conventional. Innovations within
the drink industry, catalysed by requests for non-alcoholic drinks, include:
drink plants, drink processing, and drink packing.

Beverage industry for its fruit crush products and fruit softening has been
using cell membrane degrading enzymes like pectinases, cellulases, and
proteases. The pectin within the middle lamella of plant tissues is
enzymatically degraded by protopectin’s, pectin methyl esterase, pectin
lyase, and polygalacturonate to completely hydrolyse the galacturonan
polymer to its constituent galacturonic acid. This improves the yield and
clarification of varied fruit juices.

The acidic pectinases are used extensively in fruit crush manufacturing

individually or synergistically with cellulases and proteases. Various
microbial fungal and bacterial sources are employed for production of
pectinases using solid state also as submerged fermentation. The purified or
partially purified polygalacturonate and pectin methyl esterase are employed
for clarification of varied fruit juices in solutions or by using bioreactors.
Pectinases are a crucial biochemical tool for fruit liquefaction, pressing,
clarification, and production of clear concentrated fruit juices. This chapter
contemplates the pectin structure, the hydrolysing enzymes, their sources,
production, and their application within the beverage industry.
Company Profile

The Coca-Cola Company is an American multinational beverage corporation

headquartered in Atlanta, Georgia. The Coca-Cola Company has
interests within the manufacturing, retailing and marketing of non-alcoholic
beverage concentrates and syrups. the corporate produces Coca-Cola,
invented in 1886 by pharmacist John Stith Pemberton. In 1889, the formula
and brand were sold for $2,300 to Asa Griggs Candler, who incorporated
The Coca-Cola Company in Atlanta in 1892.

The company—headquartered in Atlanta, Georgia, but incorporated in

Delaware—has operated a franchised distribution system since 1889: the
corporate largely produces syrup concentrate, which is then sold to
varied bottlers throughout the planet who hold exclusive territories. the
corporate owns its anchor bottler in North America, Coca-Cola
Refreshments. The company's stock is listed on the NYSE and is a
component of DJIA and therefore the S&P 500 and S&P 100 indexes. The
Coca-Cola Company is that the world's largest producer of plastic waste,
producing over 3 million plenty of plastic packaging annually including 110
billion plastic bottles.

A leading manufacturer, distributor and marketer of non-alcoholic beverage

concentrates and syrups. the corporate owns or licenses quite 500 brands. It
operates in additional than 200 countries. the corporate is headquartered in
Atlanta, Georgia. In July 1886, pharmacist John Stith Pemberton from
Columbus, Georgia invented the first Coca-Cola drink, which was advertised
as helpful within the relief of headache, to be placed totally on sale in
drugstores as a medicinal beverage, Pemberton continued mixing
experiments, and reached during the month of May his goal, the new
product so far unnamed nor a carbonated drink, was ready for the market and
was made available purchasable . Coca-Cola was first introduced by John
Smyth Pemberton. He first distributed the merchandise by carrying it during
a jug down the road to Jacob’s Pharmacy and customers bought the drink for
five cents at the soda fountain.
Vision
• People: Be a great place to work where people are inspired to be the best
they can be.
• Portfolio: Bring to the world a portfolio of quality beverage brands that
anticipate and satisfy people's desires and needs.
• Partners: Nurture a winning network of customers and suppliers,
together we create mutual, enduring value.
• Planet: Be a responsible citizen that makes a difference by helping build
and support sustainable communities.
• Profit: Maximize long-term return to shareowners while being mindful
of our overall responsibilities.
• Productivity: Be a highly effective, lean and fast-moving organization.

Mission
• To refresh the world in body, mind and spirit
• To inspire moments of optimism through our brands and our actions
• To create value and make a difference everywhere we engage.
Values

• Leadership: The courage to shape a better future

• Collaboration: Leverage collective genius
• Integrity: Be real
• Accountability: If it is to be, it's up to me
• Passion: Committed in heart and mind
• Diversity: As inclusive as our brands
• Quality: What we do, we do well
Scope of Business

We are a global business that operates on a local scale, in every community

where we do business. We are able to create global reach with local focus
because of the strength of the Coca-Cola system, which comprises our company
and our nearly 225 bottling partners worldwide. While many views our
company as simply Coca-Cola our system operates through multiple local
channels. The primary way that our products reach the marketplace starts with
Coca-Cola, which manufactures and sells concentrates, beverage bases and
syrups to bottling operations. Coca-Cola also owns the brands and is responsible
for consumer brand marketing initiatives.
Our bottling partners manufacture, package, merchandise and distribute final
branded beverages to our customers and vending partners, who then sell our
products to consumers. All bottling partners work closely with customers –
grocery stores, restaurants, street vendors, convenience stores, movie theatres
and amusement parks, among many others –to execute localized strategies
developed in partnership with our company. Customers then sell our products to
consumers at a rate of 1.9 billion servings a day.
Micro Environment and five forces Model
Coca-Cola, established in 1892 has been a number one player within the potable
trade since a few years. the subsequent section discusses the trade dynamics of
the potable trade and therefore the forces that have an effect on the firm’s
strategic direction and money performance.

Threat of recent Entrants

The potential of a trade determines the new businesses coming into within the
market. aside from the expansion prospects, the barriers to entry and exit are
key factors that have an effect on the market entry choices of companies. just in
case of the potable trade, the barriers to entry are low attributable to the low
value of fitting a production unit and selling expenses to form the merchandise
on the market to the target market. There are tiny scale firms coming into within
the potable trade that suggests the benefit of market entry for brand spanking
new companies (Whalen, Baginski and Bradshaw, 2014). Since Coca-Cola may
be a globally recognized complete that's consumed in additional than two
hundred countries, the presence of tiny scale players and new entrants has no
important impact on the operations of Coca-Cola. firms like Coca-Cola will
have the benefit of the market dynamics by exploitation its sturdy market
presence to expand its portfolio and more penetrate into new markets (Trefis
Team, 2016).

Threat of Substitute
Consumers will choose a potable from the wide selection of choices on the
market within the market. There are completely different firms supply soft
drinks, juices and drinking water that will increase the threat of substitute
product. However, shoppers that like the style of soppy drinks created by Coca-
Cola don't seem to be seemingly to modify to different beverages. yet, the
supply of different brands besides Coca-Cola affects the trade dynamics because
the shoppers have the choice to pick different beverages (Wahlen et al., 2014).
It will be terminated that the threat of substitute product within the potable trade
is moderate, so the switch choices of the shoppers have the potential to possess
some impact on the money performance of Coca-Cola.
Bargaining Power of consumers
The potable trade contains company consumers similarly as individual
consumers. Coca-Cola has established its market presence through forming
favourable ties with its leading company consumers like victuals chains.
additionally, the corporate has taken advantage of the opposite distribution
choices like selling machines and convenience stores to expand the reach to the
target market (Thompson and Martin, 2010). supported this background, it will
be seen that the customer power is higher once it involves the retail stores and
victuals retailers that purchase the beverages in bulk amount. On the opposite
hand, individual shoppers appear to possess restricted negotiation power. thus, it
will be explicit that the negotiation power of consumers is moderate.
Bargaining Power of Suppliers
The suppliers of the potable trade embrace companies that offer basic artifact
things like sugar, caffeine, flavours and different ingredients needed to
manufacture beverages. The suppliers providing these things have restricted
management over the worth shift and can’t exert a major influence on the worth
structure. Since provider read their contract with massive scale potable firms
like Coca-Cola as a crucial a part of their distribution network, they're unlikely
to exert a lot of influence or use negotiation power in fitting worth of the
ingredients. additionally, the suppliers ought to abide by the guiding principles
like Agriculture Guiding Principles (Journey employees, 2017), suggesting that
they need low negotiation power and therefore the company has bigger
influence on provider contracts and evaluation.
Competitive group action
The intensity of competitive group action within the potable trade is moderate.
the most contender of Coca-Cola is cola whereas the opposite producers of
soppy drinks, drinking water and juices have a relatively lower market share
(Lamb, Hair and McDaniel, 2011). Moreover, the little scale firms don't have
the potential to have an effect on the market share of Coca-Cola to a major
degree, so indicating that the most competition is among cola and Coca-Cola,
that has crystal rectifier to the term Cola Wars to outline the group action
between the 2 companies. Since Coca-Cola contains a well-established
complete determine and a loyal set of shoppers, it's unlikely to be suffering from
competitors. This competitive landscape suggests that there's moderate threat of
competitive group action, with the most competition originating from cola Co.
SWOT Analysis
Coca Cola has several products in its arsenal. Here is that the SWOT analysis of
Coca Cola.
Strengths within the SWOT of Coca Cola
1. complete Equity – Interbrand in 2011 awarded Coca Cola with the best
complete equity award. Coca Cola with its huge international presence and
distinctive complete identity is certainly one in all the costliest completes with
the best brand equity.
2. Company valuation – one in all the foremost valuable firms within the world,
Coca Cola is valued around seventy-nine.2 billion greenbacks. This valuation
includes the complete price, the various factories and assets opened up across
the globe and also the complete operations value and profit of Coca Cola.
3. huge international presence – Coca Cola is gift in two hundred countries
across the globe. chances are high that, any country that you just move to, you'll
notice Coca Cola gift in this market. This huge international presence of Coca
Cola has conjointly contributed to the building of the mammoth brand.
4. Largest market share – There are solely a pair of huge competitors within the
food section – Pepsi Cola and Coca Cola. Out of those a pair of, Coca Cola is
that the clear winner and therefore has the biggest market share. Amongst all
beverages, Coke, Thums up, Sprite, Diet coke, Fanta, Limca and Maaza are the
expansion drivers for Coca Cola.
5. Fantastic promoting ways – Coca Cola not like Pepsi Cola continuously tries
to win peoples heart. wherever Pepsi’s target is incessantly dynamic, and is
targeted towards children, Coca Cola targets folks of all ages. The targeting is
additionally done by celebrities United Nations agency are well likable – as an
example – Amitabh Bacchan, Sachin Tendulkar, Aishwarya Rai, Aamir Khan
etc
6. client Loyalty – With such robust product, it's natural that Coca Cola includes
a heap of client loyalty. The product mentioned higher than like Coca Cola and
Fanta have a large fan following. folks can like these soft drinks over others.
attributable to the nice style of Coca Cola, finding substitutes becomes
troublesome for the client.
7. Distribution network – Coca Cola has the biggest distribution network
attributable to the demand within the marketplace for its product. On the
opposite hand, because of this prosperous distribution network, Coca Cola has
been ready to command such a high market presence.
Weaknesses within the SWOT of Coca Cola
1. Competition with Pepsi Cola – Pepsi Cola could be a thorn within the flesh
for Coca Cola. Coca Cola would be the clear market leader had it not been for
Pepsi Cola. The competition in these 2 brands is huge and that we don’t assume
Pepsi Cola can hand over therefore simply.
2. Product Diversification is low – wherever Pepsi Cola has created a wise
move and varied into the snacks section with product like Lays and Kurkure,
Coca Cola is missing from that section. The section is additionally a decent
revenue driver for Pepsi Cola and had Coca Cola been gift during this section,
these products would be an extra revenue driver for the corporate.
3. Absence in health beverages – If you watch the news, you'd understand that
blubber could be a major drawback touching folks today. The business
atmosphere is dynamic and folks are taking measures to confirm that they're not
weighty. effervescent beverages are one in all the key reasons for fat intake and
Coca Cola is that the largest manufacturer of effervescent beverages. The
reasoning is that the consumption of beverages in developed countries would
possibly go down as folks can like a healthy various.
4. Water management – Coca Cola has moon-faced flak within the late to its
water management problems. many teams have raised lawsuits within the name
of Coca Cola attributable to their huge consumption of water even in water
scarce regions. At constant time, folks have conjointly darned Coca Cola for
mix pesticides within the water to clear contaminants. so, water management
must be higher for Coca Cola.
Opportunities within the SWOT of Coca Cola
1. Diversification – Diversification within the health and food business can
improve the offerings of Coca Cola to their customers. this may conjointly
make sure that they convalesce revenue from existing customers by cross
commerce their product. the provision chain that is distributing their beverages
may also distribute these snacks thereby sharing the load of provide chain
prices.
2. Developing nations – though developed nations have a high presence of Coca
Cola; these countries are slowly moving towards healthy beverages. but
developing countries are still being introduced to the delight of effervescent
drinks and soft drinks. Countries like India that are developing and have a hot
summer, notice the consumption of cold drinks nearly doubled throughout
summers. so, the upper consumption in developing environment’s may be a
decent chance to capitalize for Coca Cola.
3. prepacked drink – With hygiene changing into a significant consider the
consumption of water, prepacked drink has found its manner into people’s
mind. Coca Cola includes a presence within the packed drink section although
Kinley. though Kinleys growth is slow as of currently, Kinley includes a large
potential of growth. so, Coca Cola as a corporation ought to specialize in the
growth of Kinley as a complete and take it up to Bisleri ‘s level of trust.
4. provide chain improvement – provide chain may be a significant value sink
hole with the transportation prices continuously rising. Coca cola’s complete
business relies on transportation and distribution. there'll continuously be
attainable enhancements during this space. so, Coca Cola ought to keep strict
watch on it provide chain and keep up to bring the price down.
5. Market the lesser commerce product – within the product portfolio of Coca
Cola, there are many products that haven't found acceptance within the market.
Coca Cola must consider the promoting of those product in addition. it's
understood that Coca Cola has created many expenses to launch these products.
Thus, the promoting and ulterior rise of sale of those products can facilitate
revenue of Coca Cola.
Threats within the SWOT of Coca Cola
1. staple sourcing – Water is that the solely threat to Coca Cola. The weakness
of Coca Cola was the suspected use of pesticides or huge consumption of water.
However, the threat here is that water insufficiency is on the increase. With the
climate dynamic, and regions of varied countries facing insufficiency of water,
sooner or later somebody would possibly raise fingers on food firms. Thus,
Water sourcing is associate axe which might fall anytime on the pinnacle of
Coca Cola. If water is proscribed or distributed, Coca Cola will expertise a
significant downfall in their revenue and capability of distribution. constant will
have an effect on its arch rival Pepsi Cola in addition.
2. Indirect competitors – low chains like Starbucks, restaurant low day, Costa
low are on the increase. These chains provide a healthy competition to Coca
colas effervescent drinks. they could not be an enormous competition for Coke;
however, they are doing provides a dent to its food market. Similarly, health
drinks like Real and Tropicana in addition as energy drinks like Red bull and
Gatorade are stealing away the market share indirectly.
Reference

https://www.sciencedirect.com/topics/agricultural-and-biological-sciences/beverage-industry
https://smallbusiness.chron.com/disadvantages-strategic-management-80740.html
https://www.investopedia.com/terms/s/strategic-management.asp
https://www.porteranalysis.com/porters-five-forces-of-coca-cola/