Alberto L. Lumbayan Jr.

STRATEGIC MANAGEMENT – CBM 121

CASE STUDY OF COCA – COLA COMPANY
PDF Link of the Case Study:
https://www.scribd.com/doc/42761963/Strategic-Management-Case-Coca-Cola

I. INTRODUCTION
Nowadays, people are more health – conscious and more aware of the environmental problems.
This is the main reason why an organization or a company is enforced to improve their strategic
management every now and then.
The Coca – Cola Company is the leading manufacturer of soft drinks or non – alcoholic
beverages. It was first developed in Atlanta, Georgia on May 8, 1886. The company’s products
consist of bottled and canned drinks, concentrates, syrups, and powder drink products. Coca –
Cola company operates in not less than 200 countries around the world. Their system has
effectively used a method: “Provide a moment of refreshment for a small amount of money – a
billion times a day”. Coca – Cola company never stop improving to give consumers the drinks
that can satisfy them.
There are lots of difficulties faced by the coca – cola company. They created values to all people,
so that they are aware that too much consumption of carbonated soft drinks is harmful to health.
Also, plastic bottles used for soft drinks are harmful to environment. Another big challenge faced
by the coca – cola company is the increasing number of competitors in non – alcoholic
beverages.
In this case study, we will focus on Coca – Cola’s problems and suggest solutions to solve the
problem. We will study their company’s issues and challenges and provide solutions to maintain
its growth through innovation and evolution without making the environment harm and creating
healthier products.

II. BACKGROUND
Coca – Cola products has provided the world of its best among the best taste of carbonated soft
drinks. It was first distributed per glass and later packed in bottles. Aside from that, it also
produces drinks such as sports drinks, tea, and coffee. It is now operating in not less than 200
countries and produces 400 brands.
At the present time, people are more concern of their health specially now that we are facing a
pandemic COVID – 19. People are more conscious about their health by changing habits of
drinking soft drinks to water, specifically consumers at an elder age. This may be one of the
challenges that the company is facing. We all know that soft drinks or non – alcoholic beverages
contain high level of sugar content. Due to this, business strategic and business environment of
carbonated soft drinks required to change or evolve.
Alberto L. Lumbayan Jr.
STRATEGIC MANAGEMENT – CBM 121
It is claimed by all health agencies that carbonated soft drinks such as coca – cola have numerous
disadvantages, this comprise of high sugar intake, dehydration, weight gain, and calcium
depletion. Consuming a carbonated soft drink will result to weight gain because it contains a lot
of calories than your body burns. Soda’s in coca – cola beverage contains high amount of
phosphoric and citric acid that can distribute calcium from the bone, and leach calcium out of the
teeth and can cause the declination of calcium absorption.
Furthermore, industries of beverages are extremely competitive since lots of non – alcoholic
beverage industries are out on the market. Even though there are lots of competitors for Coca –
Cola company, there are a few of them that are closest competitor of the said company. One of
this is the PepsiCo. The great advantage of PepsiCo over Coca – Cola company is that they
created and uses “complementary” business lines. Also, PepsiCo and Coca – Cola have almost
the same price, the same taste and the same production. This is why, it is very easy for
consumers to buy PepsiCo products. With this circumstance, Coca – Cola company is required to
have a strong marketing strategy to beat the enemy.

III. EVALUATION OF THE CASE

Waste on Plastic Bottles. Pollution in plastics is one of the biggest concerns in the environment.
We all know that as of today, there is a large amount of plastic wastes and one effective way to
solve the problem is to have a deep understanding of how plastic pollution is dangerous to health
and taking actions on how to reduce wastes on plastics. The growth in population is directly
proportional to the plastic waste consumed. It is a fact that plastics is not only harmful to
environment but also to animals and human – beings. One suggestion to solve the problem, the
Coca – Cola company can do investments on innovation of packaging the products that is a very
big help to minimize packaging of wastes issues.
Increase in Competition of Non – Alcoholic Beverage Industry. Non – alcoholic beverage
industry is one of the industries that extremely grow over time. The closest competitor of Coca –
Cola company in the market is the PepsiCo. This challenge can affect the coca – cola to its
profitability because it has to share portion of the market. Furthermore, coca – cola company
uses a structure that making or changing decision will be long and complicated. In order to solve
the problem, Coca – cola company can use a different method of structure, that is to minimize
people who are involve in making decisions and later will speed up the progress. Diversity of
products is one of the significant things the company should work on. Variety on products will
help the company to know all the preferences of consumers.
Smaller Size on Packaging. Coca – cola company should improve its production to smaller
sizes on products. In that way, consumers who are limiting their intake of soft drinks can choose
appropriate sizes to consume. In addition to this, coca – cola company should make small sizes
be available globally so that every consumer around the world can enjoy the products in smaller
sizes.
Alberto L. Lumbayan Jr.
STRATEGIC MANAGEMENT – CBM 121
No Sugar Availability. The coca – cola company can make products that has no added sugar in
it. So that, consumers can enjoy different varieties of products.
Healthier Lifestyle. Max consumption of Coca – cola products might be harmful to health.
Drinks that contains high level of sugar can be the main source of calories. If to much in take of
soft drinks can place you in a situation where obesity takes place, diabetes, heart problems, and /
or cancer. To solve the problem, coca – cola company can work on improvement of no sugar and
smaller sizes of packaging.

IV. PROPOSED SOLUTION / CHANGES

Evaluating New Marketing Opportunities. We all know that Coca – cola company is a
successful company around the world. But we cannot change a fact that other competitors are
also successful. Due to this, Coca – cola should introduce new brands that can help them beat the
rival. Introducing new flavored cola brand is very appealing and with precise marketing strategy,
will bring fruitful success in terms of growth in revenue.
Product Development. Development on products such as developing new bottled beverage is a
very helpful technique to have more consumers. Making new styles on bottles and packaging can
be more appealing to consumers.
Environment Friendly Bottles. Coca – Cola company should also improve the usage of plastics
since it is very harmful to environment. If it is not possible, then, the company can do the
recycling of bottles with incentives. For example, the incentive of 1 (295 mL) coke is equivalent
to P0.50 money. In that way, the company can reduce capital on buying plastics to form a bottle.
It can also help to lessen plastic wastes that can cause floods.

V. RECOMMENDATIONS
The following recommendations are listed below.
a. The Coca – Cola company can use advertisement media widely.
b. The Coca – Cola company can also use the recycled bottles from consumers by
providing a machine that is used for recycling of bottles. In return to this, a specific
incentive shall be given to the consumer. In that way, the company reduce capital on
buying raw materials for plastics.
c. The marketing team should also try to increase the availability of coca – cola products
in rural areas. Depending on the product that is most likely to consume by the buyers.
d. The company should also focus in all ages. They should have a product that is also
good in elder ages for they are more sensitive in sugar intake.
Alberto L. Lumbayan Jr.
STRATEGIC MANAGEMENT – CBM 121

VI. REFERENCES
 Alex Renton. (2019, January). Coca-Cola's sugar problem. Retrieved from
https://www.theguardian.com/lifeandstyle/wordofmouth/2013/jan/18/coca-cola-sugar-
problem
 Aimee Lutkin. (2019). Coca-Cola Is Looking for Someone to Solve Their Sugar Problem
For $1 Million. Retrieved from
https://www.greenmatters.com/food/2017/08/15/2srX82/coca- cola-sugar-problem-for-1-
million
 Jay Moye. (2019, January). A World Without Waste: Coca-Cola Announces Ambitious
Sustainable Packaging Goal. Retrieved from https://www.coca-
colacompany.com/stories/world-without-waste
 Journey Staff. (2017, December). How Coca-Cola is Helping to Reduce Sugar and Bring
the Industry’s Balance Calories Initiative to Life in East Los Angeles. Retrieved from
https://www.coca-colacompany.com/stories/how-coca-cola-is-helping-to-reduce- sugar-
and-bring-the-industry
 Markic, A., Gaertner, J., Gaertner-Mazouni, N., & Koelmans, A. (2019). Plastic ingestion
by marine fish in the wild. Critical Reviews In Environmental Science And Technology,
1-41. doi: 10.1080/10643389.2019.1631990
 The Coca-Cola Company. (2019, August): DASANI® Takes Steps to Reduce Plastic
Waste Through Increased Use of Recycled Materials, Expanded Package Innovation.
Retrieved from https://www.coca-colacompany.com/press-center/press-releases/dasani-
takes-steps-to-reduce-plastic-waste