UNIVERSITY OF EDUCATION, WINNEBA

SCHOOL OF BUSINESS
DEPARTMENT OF BANKING AND FINANCE

BBA 481: STRATEGIC MANAGEMENT

TAKE-HOME EXAMS
LECTURER: Dr Emmanuel Yamoah

STEPHEN BOTCHWAY 5161530010

JULY, 2020.
Table of Contents
introduction .................................................................................................................................1
Swot For Coca-Cola ....................................................................................................................1
Strengths .................................................................................................................................1
Weaknesses .............................................................................................................................2
Opportunities ...........................................................................................................................2
Threats ....................................................................................................................................2
Swot For Pepsi Company ............................................................................................................3
Strenghs ..................................................................................................................................3
Weaknesses .............................................................................................................................3
Opportunities ...........................................................................................................................4
Threats ....................................................................................................................................4
Question 2 ...................................................................................................................................5
 INTRODUCTION
SWOT analysis is a business analysis process that ensures that objectives for a project are clearly
defined and that all factors related to the project are properly identified. The SWOT analysis
process involves four areas: Strengths, Weaknesses, Opportunities and Threats. Both internal and
external components are considered when doing SWOT Analysis, as they both have the potential
to impact the success of a project or venture.

Strengths in SWOT analysis are the attributes within an organization that are considered to be
necessary for the ultimate success of a project. The factors within the SWOT analysis formula that
could prevent successful results within a project are Weaknesses. Opportunities are classified as
external elements that might be helpful in achieving the goals set for the project. These external
factors could gravely affect the success of the project or business venture.

It helps businesses discover good opportunities and take advantage of them. You can also track
and scrub out risks by knowing the company's vulnerabilities that will normally catch the business
unaware.

SWOT FOR COCA-COLA

STRENGTHS
Firstly unique marketing and advertising. Coca-Cola uses marketing and advertising strategies
which are unique. It had a series of ads hits with taglines like "Coke Is It", "Still Coca-Cola" and
"The Real Thing." Appearances include bell-bottom jeans, yellow smiley faces, peace signs and
iconic TV ads that featured children from all over the world swaying while singing. Notable
marketing strategies and celebrity endorsement including banking on a tie-in to the successful
movie, Harry Potter and the Sorcerer’s Stone to fuel sales. All of this distinct marketing,
advertisement and promotional strategy has made Coca-Cola a beverage market leader.

Also brand image and awareness. The strength of Coca Cola lies in its brand-value. Securing a
large part of the market with such reputable brand image has made coca cola one of the biggest
players in the soft drinks industry. It has more than 230 brands in 200 countries and is known as
the most popular brand in the world. Coke markets Thumps up in India for example, and Inca Cola
in Peru for example. Coke offers Marocha Green Tea in Japan, and has produced a carbonated
soda in Brazil that incorporates a common local flavour.

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WEAKNESSES
Declining market share and earnings. After the year 2000 the Coca-Cola Corporation has
suffered a declining market share. In 2001 the company had its third straight year of stagnant or
declining market share in the United States. In 1999 and 2000, however, its domestic revenues
decreased. Moreover, earnings declined, too. Their beverages also experienced a declining market
share.

Also inadequate diversification. Coca-Cola has made no major strategic move to beat the market.
Aside from the few low calorie choices, it has continued to focus on the success of its established
brands. It has gotten harder to market internationally.

OPPORTUNITIES
Firstly penetrating emerging markets. Across the developing markets, Coca-Cola has big
opportunities before it. This will thrive in those markets by brand expansion. It has a probability
of rising and widening markets internationally. It may, for example, expand its markets to include
India, China, Brazil and Russia.

Secondly opportunity to diversify: Diversification into various markets enables companies to

take advantage of and gain flexibility outside their conventional operational sphere. Via the
purchase of a small but proven sportswear company, it has the potential to diversify its product
offering into sectors beyond carbonated drinks, such as sport wear. But Coca-Cola may also
diversify its products to match the desire of consumers. It really should widen its Non-carbonated
soft drinks like juice, sport, energy, bottled water, vitamin water, odwalla, gatarode, etc.

THREATS
First of all strong rivalry and competition. The danger of rivalry against Coca Cola has continued
to increase. The biggest competitor at Coca Cola is Pepsi, offering a very popular soda. On the
domestic cola market, Pepsi started making slight gains on share of cokes. The Pepsi Company
began to fight aggressively with coke for every vending machine, contract restaurants, and
supermarket shelf that came to be available. Coca Cola has to be more careful not to expand Pepsi
to be more of a good product. Threats include other products such as fruits, chocolate, and milk.

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Also change of customers’ taste. Consistent changes in consumers' tastes and attitudes may
directly affect the selling of Coca Cola’s products. This need to be seen as a predominant threat.
Citizens of today's society actively try to change their food and eating habits, a situation where
people decided to stop taking carbonated drinks. The unhealthy factor associated with its products
can take a toll on the health conscious customers and might lose them.

SWOT FOR PEPSI COMPANY

STRENGHS
First of all high level of brand positioning and recognition. Pepsi Company produces and sells
some of the world's most famous brands, including Tropicana, Gatorade, Mountain Dew,
Aquafina and others. In the US, Pepsi becomes the biggest seller of non-carbonated drinks. It
claimed 32 per cent of the 61.7 billion market in 2001.

Also highly level of diversification. The business sells almost every form of snack or beverage.
Changes in consumer preferences also don't impact the business as badly as other firms would. For
starters, in 1998 Pepsi bought Tropicana to compete with Coke’s brand Minute Maid. In 2001
Tropicana collected 39 percent of the freezing orange juice and ranked third in sales of all drinks
on the supermarket. With its large assortment of popular products, it is well positioned to address
the demands of its clients.

WEAKNESSES
Firstly product dependence. They are only present in the food and beverage industry which may
be harmful in the longer run. They need to diversify their business to other product segments to
become a global leader. Pepsi said that they wanted to become a total drink company. PepsiCo
mainly works in the food and beverage market. That is a drawback, because it maximizes the
company's risk exposure in the food and drink industry. Over-dependence on carbonated soft
beverages and processed foods threatens the resilience and strength of the businesses in this market
in the event of turbulence.

Secondly highly dependent on American market. Pepsi Business is too heavily focused on the
US market. Outside Americas there is poor coverage. Pepsi drives around 70 percent of its
revenues from North American and South American markets. This means the company has not yet
maximized future non-American sales.

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OPPORTUNITIES
First of all avenue to penetrate markets of developing countries: To produce additional sales
from countries outside the Americas, Pepsi Company has the potential to expand its presence
outside the emerging world. This has the potential to expand its markets in countries such as
China, Russia, India, Africa and others.

Secondly global partnerships. Businesses which try and maintain strong alliances and
partnerships are more competitive in a globalized marketplace. Pepsi Company will establish
complementary business partnerships to increase its position in the industry. Pepsi Company, for
example, can expand the new relationship with Starbucks to other markets and take advantage of
all the opportunities of the various coffee locations of their company.

THREATS
First of all threat of global recession in food market: Pepsi may suffer losses as its product line
is concentrated with goods that are typically among the first expenditures to be lowered during
economic distress by customers.

Secondly high level of competition: Aggressive rivalry poses a major challenge to the client.
Coca-Cola Company’s impact against Pepsi Business is extremely crucial. Tough competition
from Coca Cola challenges Pepsi’s profitability and market share. The rivalry also affects long-
term competitiveness and productivity, as it increases the cost to keep consumers, win market
share, deals etc.

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 QUESTION 2

This basically looks at the changes that happen in the market due Political, Economic, Social and
Technological parameters. Macro-environment factors are forces outside the organization which
are not within the control of management of business but still affects the business up large extends.

One of these micro-environment factors that will affect both Coca-Cola and Pepsi is technology.
Technology has helped in the area of advertising, marketing and other programs of promotion.
Internet and television technology has evolved to the extent that special effects can be used. If
management of both Pepsi and Coca-Cola should advertise more on the internet via social media
platforms it will help get to millions of people with a single advert since social media is the thing
of the day now.

By the use of technology, products are more attractive and therefore, attracting more sales. Bottles
and cans have increased Coca-Cola and Pepsi sales because they are portable and also easily
disposed off.

Technology has also been felt in the production line. New and sophisticated machines can increase
production of Coca-Cola and Pepsi products.

Technology has also led to automatic serving machines that have increased sales and efficiency
when serving customers. If management of both Coca-Cola and Pepsi can take advantage of this
technology and put automatic serving machines at vantage points such as malls, schools, stadiums,
beaches and recreational centers, it will help make their products easily available to customers and
this will in turn increase their level of sales.