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INTRODUCTION

The Coca-Cola Company was founded in 1892 and established its Headquarters in Atlanta. The Coca
Cola Franchise is the World’s biggest Beverage Industry. It dominated a 48% of the global Market
share. In total the Franchise is responsible for over 160 different beverages within a market
consisting of 200 Countries. Examples of their products are Coke, Sprite, Dasani and many more.
Their products range from Sport’s Beverages, Juices, Tea, Coffee and Water.

OUR PURPOSE
Refresh the world. Make a difference.

MISSION
to refresh the world/to inspire moments of optimism and Happiness/to create value and Make a
difference.

VISION
our vision is to craft the brands and choice of drinks that people love, to refresh them in body & spirit.
And done in ways that create a more sustainable business and better shared future that makes a
difference in people’s lives, communities and our planet.

OBJECTIVES
are a great place to work where people are inspired to be the best they can be.
Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people’s desires
and needs.
Nurture a winning network of customers and suppliers, together we create mutual, enduring value.
Be a responsible citizen that makes a difference by helping build and support sustainable
communities.
Maximize long-term return to shareowners while being mindful of our overall responsibilities.
Be a highly effective, lean and fast-moving organization.

VALUES
Leadership: The courage to shape a better future.
Collaboration: Leverage Collective Genius/Integrity: Be real/Accountability: If it is to be, it is up to
me/Passion: Committed in Heart and Mind/Diversity: As inclusive as our Brands/Quality: What we
do, we do well.

Core competencies
the total core competencies of Coca Cola can be summarized as strong brand value, franchise
network, cost controls, distribution network and administrative control. The figure below shows the
method Coke uses to interface between strategy and firm.

Apply appropriate methods to analyze the impact and impact of the overall environment on a
selected organization and its strategies.

PESTEL ANALYSIS

P for Political Factors

Coca-Cola can have a direct impact on the laws and regulations of the government on food products.
These laws may vary from country to country. Earlier due to some trade sanctions of the US and
Burma, the sale of Coca-Cola was banned in Burma. After nearly six decades the sale was started in
the year 2012 when the sanction was suspended. There are still two countries Cuba and North Korea
where Coca-Cola cannot be bought or sold due to the political condition of these countries. The
recent tiff between the US and China resulting in a trade war has a major impact on the prices of
Coca-Cola canned products. The company is facing cost pressure due to a rise in the tariffs on steel
and aluminum.

My opinion (threat). Because of state influences from policies, laws, disputes, and sanctions
E for Economic Factors

There is no doubt Coca-Cola is a leading company in the beverage market and supplies its products
to hundreds of locations in the world. As every country has its own rules, customs, desires, cultures,
and tastes, so it’s a big challenge for Coca-Cola to meet the requirements. But, Coca-Cola
understands the needs and requirements of their customers that’s why they are creating new flavors
and beverages to fulfill the desires of users. The current market value of Coca-Cola is more than 80
billion dollars. The major portion of its income (nearly 70-percent) is generated from regions outside
America. But now, people are moving towards healthy drinks, and Coca-Cola is also adopting this
way to fulfill the needs of consumers.

My opinion (A threat.) The company's success is largely determined by the buying power of its
consumers.

S for Socio-Cultural Factors

The biggest social factor that affects Coca-Cola is the mentality change in its consumers. The
millennial and Gen-X consumers are readily shifting to energy drinks instead of carbonated drinks
due to the health concerns that the latter brings. Diseases such as obesity are associated with the
long-term consumption of Coca Cola and these factors are being brought to light in recent times. The
mindset of the general population has turned towards healthy living, and in such a state Coca Cola is
not a beneficial product.
One of the ways in which the brand has reintroduced itself is through products such as ‘Coke Zero’
and other low-calorie products. Since the current generation is quite health-specific, these aerated
drinks have been accepted by them. However, looking at matters globally, soda and aerated drinks
have faced a staunch decrease in sales across the world.
There are also cultural issues that are associated with Coca-Cola. The brand has been considered
quite destructive towards environments and livelihoods in many third-world countries and is thus not
accepted by people. Many Middle Eastern countries still continue to disallow the launching of the
brand due to it being an American product. Coca-Cola still pursues developing markets to be its
primary zone of expansion.

My opinion (A threat) is due to consumers' awareness of the harmful effects of soft drinks and
associated diseases.

T for Technological Factors

Coca-Cola is using innovative machinery in its manufacturing process which results in a higher and
better quantity of products. They are considered as a top innovative company in terms of machinery
and quality. Moreover, Coca-Cola has used a strong marketing strategy with the help of social
media. So, they can directly connect with consumers through digital ads. Recently, Coca-Cola
launched the ‘’name campaign’’ which results in an increase in its sales and profits. People love to
take their photos with names on the bottles which increase the popularity of Coca-Cola. This kind of
marketing campaign can give a major boost to this company.

My opinion (An opportunity.) Because a company like Coca-Cola used artificial intelligence to its
advantage and used it in its manufacturing processes, which helped increase production further
and improve products and its products became available all over the world, Coca-Cola uses
internet marketing strategy to reach customers from different Diaspora around the world. This
strategy helped the company increase its clientele reach across the globe.)

E for Environmental Factors

Coca-Cola is facing major challenges due to water accessibility. Water is an important item for these
drinks, but climate change has threatened the company’s sustainability. There are some other
companies like Pepsi that are also facing similar problems. Basically, Coca-Cola is a soft drink
company, so water accessibility can create issues in the future and they will experience huge losses.
Also, Coca-Cola follows all the environmental laws in the manufacturing of its products. In case of
any mistake, they will face severe consequences. Additionally, Coca-Cola is trying to target humid
regions to sell its drinks because in these regions the demand for these drinks is very huge. In short,
Coca-Cola is giving tough competition to its competitors in terms of sales and reach.

My opinion (the threat.) Due to the measures taken by the government to preserve the
environment and the sustainability of climate and water, this may lead to a large financial loss for
such companies.

L for Legal Factors

Coca-Cola has designed a patent that protects its past and future products. Moreover, they also hold
all rights connected to their working. Well, there are very few legal factors of Coca Cola but due to
the global brand, they should follow the rules and regulations of each country for smooth and easy
distribution of their products.

My opinion (opportunity) because it protects current and future brand and products.
BCG Matrix (Growth Share Matrix):

Definition
BCG Matrix helps business to analyze growth opportunities by reviewing the market growth and
market share of products and further help in deciding where to invest, to discontinue or develop
products. BCG Model puts each of a firm’s businesses into one of four categories. The categories
were all given remarkable names- Cash Cows, Stars, Dogs, and Question Marks.

Question Marks (High Growth, Low Market Share)


Fanta, a Coca-Cola product, is one such example where the business units can be seen as a question
mark. As the brand has not been able to gain widespread popularity similar to Coke. Therefore, the
brand is losing its popularity. However, in some areas, it has been able to obtain a generous sales
volume.

Cash Cows (Low Growth, High Market Share)


Coca-Cola is one such example of Cash Cows. This product is sold across 200 countries in a mature
beverage industry. The bottling partners in different regions help in making the finished beverages
available to the market. This is how the organization is earning a significant amount of revenues
from its finished products. In a mature industry, it is advisable for a company to keep the sales
volume high as the business unit is comparatively a good source to generate revenue.

Stars (High Growth, High Market Share)


The bottled water produced by the Coca-Cola Company can be categorized as a star for the
organization. The reason for this classification is that the mineral water industry is still viewed as a
gradually evolving segment on an international scale. The rising number of people increases the need
to produce more bottled water to fulfil the needs of the expanding population. In Europe and Asian
regions, Kinley is being sold while Dasani bottled water is targeting the US and UK market. Both of
these business units are stars for the Coca-Cola Company as the rising need of bottled water opens
up growth opportunities in the industry. Even though the company faces competition from other
bottled water producers, the growing market offers it significant opportunities to attain a large
market share and expand it further in future. Nevertheless, an important consideration for the
management is to ensure that the bottled water brands remain a source of significant sales as
decline in sales can reduce the revenues.

Dogs (Low Growth, Low Market Share)


Diet coke, a Coca-Cola product, is on such example of Dogs. It was launched with the motive to offer
consumers relatively healthier beverage option in terms of calories consumed. However, the brand
has not been able to fetch consumers’ interest, which led to declined sales of this business unit. The
soda industry has been matured in recent years; therefore, the growth prospects for new products
are limited now.

The BCG model helps in strategic planning, but like any other marketing model, it works in some
situation and in others. It helps companies to assess which products need to be promoted to
generate revenue and which one needs to be discontinued. In short, BCG Model gives a true picture
of how marketing efforts will affect business’s overall cash flow.

SWOT Analyze of Coca-Cola Company


A SWOT analysis is a compilation of your company's strengths, weaknesses, opportunities and
threats.
The primary objective of a SWOT analysis is to help organizations develop a full awareness of all the
factors involved in making a business decision.

STRENGTH WEAKNESS
Coca-Cola utilizes a strong marketing strategy and various
enterprise Advertisements that entice consumers to buy their A consumer Stereotype of Coca-Cola is that their beverages
products. are not healthy.

The Brand logo and Image of the Coca Cola Franchise is This is widely due to the fact that Coke contains caffeine,
cemented within the majority of consumers in the market sugar, and various other ingredients.
and has almost become a daily part of their consumption.
Negative publicity.
Coca-Cola has managed to keep its formula a secret. Giving
them a huge advantage over their competitors. High debt level due to acquisitions
Brand failures or many brands with an insignificant amount
They Have the ability to produce innovative products via a of revenues.
well-established research and development team.

Due to the fact that they dominate a high market share,


their products are mostly products that lead the market.

The products the Coca Cola Franchise is responsible for have


the characteristics of being convenient, reasonably priced,
and a unique flavor.
OPPORTUNITY THREAT

As is known to all, carbonated drinks suit better with the There is still a high possibility that the other non-coke
demand of young people. Also, the proportion of young carbonated beverage will take place of Coca-Cola, for
people is increasing fast, especially in some countries in Latin example, Pepsi, one of Coke’s biggest competitor’s.
America and the Asia Pacific. This would therefore be a
positive sign that Sales in the future should increase and If the general consensus decided to forgo a healthier
therefore bring in more revenue. lifestyle it would almost certainly cause a decrease in sales
for some of Coca-Cola’s main products i.e. Classic Coke.
American fast-food culture coordinates with the carbonated
drinks Legal requirements to disclose negative information on the
product labels.
Big Events such as The World Cup withdraws millions of
viewers, by sponsoring and or basing advertisements around
such events increases sales.

.Defining and communicating strategic management decisions

Increase the company's earnings and market its goods more aggressively to gain a larger market .1
.share

.Penetrating the market further by distributing all of the company's goods in all countries .2

.Develop the gaseous substance and strive to minimize the harm it does .3

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