1

Bus 5116 - Written assignment Unit 1- Introduction to Operations Management and Strategy

Bus 5116 - Written assignment – Operations Management

UNIT 1: Introduction to Operations Management and Strategy

Instructor: Juancho Lim

University Of The People

 2
Bus 5116 - Written assignment Unit 1- Introduction to Operations Management and Strategy

Coca cola SWOT Analysis

The Coca-Cola drink was invented in 1886 by Dr John Styth Pemberton and the company

was founded in 1892. Coca-Cola Company is now the world's leading and largest producer of

alcohol-free beverages. Its business revolves mainly around 2 divisions:

- Selling Beverages: sodas, fruit juices, tea-based drinks, etc. commercialized under the Coca-

Cola, Fanta, Sprite, Nestea, etc. brands;

- Bottling. (The Coca-Cola Company, n.d.)

The group's other activities represent 0.3% of turnover while 68.6% of its total turnover is

generated internationally. The Coca-Cola Company has 211 factories. The company estimates

its sales at 1 billion bottles per day through its 10 million points of sale worldwide. At the end

of 2019, the group had 137 production sites around the world. (The Coca-Cola Company,

n.d.).

Widely perceived as being by far the symbol of globalization, surveys indicate that the

brand is known by 94% of the world's population Indeed, every 10 seconds, more than

126,000 people around the word buy a product from them. (The Coca-Cola Company, n.d.)

The SWOT analysis of the Coca Cola Company will allow us to assess the company and

find the areas of improvement that will give it a customer advantage. In this way we can

define its strategic potential to improve its strategic position. To achieve this, we are going to

look at the strengths and weakness of the company and explain some of them. Then, we are

going to look at which opportunity is capable of evolving soon. Last but not the least, we

would try to address the threats that the company could face.
 3
Bus 5116 - Written assignment Unit 1- Introduction to Operations Management and Strategy

Strengths of the Coca-Cola Company

Leader in the non-alcoholic beverage market - The number one strength of the Coca-Cola

Company is that it is the leader in the non-alcoholic beverage market. Its sales are estimated at

1 billion bottles per day through its 10 million points of sale worldwide. Every 10 seconds,

more than 126,000 people around the word buy a Coca Cola product. (The Coca-Cola

Company, n.d.).

Brand image and loyalty – Coca Cola is widely known around the globe. About 94% of the

world population know the Coca Cola brand. Its logo is known worldwide. Also, its campaign

about happiness (“Open Happiness” in 2009) has yielded great result. Coca Cola doesn’t only

sell the drink, but it also sells happiness. The feeling happiness is now associated with a bottle

of coke whenever someone buys it. (What Makes Coca-Cola World`s Most Recognizable

Brands - Yereone, 2017)

Strong distribution channels – The Coca-Cola Company reaches more customers than its

rivals through its extensive distribution network. This advantage makes it easier for the

company to introduce new products, as it is confident that these products will reach its

billions of customers around the world. (Jurevicius, 2013)

Other strengths we could identify are: Huge marketing budget – High bargaining power

and High Corporate Social Responsibility.

Weaknesses of the Coca-Cola Company

Debt - Over the past three years, Coca-Cola’s liabilities have grown by 21%.

(Understanding Coca-Cola’s Capital Structure (KO), n.d.). Also, since CCE’s acquisition, its
 4
Bus 5116 - Written assignment Unit 1- Introduction to Operations Management and Strategy

interest rate and borrowing cost has risen. (Internal Environment Report | Operations

Management Homework Help, n.d.)

Its only focus is carbonated drinks – Coca Cola Company doesn’t diversify. Its mainly

focus is non-alcoholic beverages. If there is a small change in client behavior, the company

can be negatively impacted.

Opportunities of the Coca Cola Company

Growth in bottled water consumption – According to Businesswire, the Global Bottled

Water Market is expected to reach $403.5 billion by 2026, rising at a market growth of 14.1%

CAGR, and Coca Cola Company is one the forerunners of that market.(Businesswire, 2021).

Growing beverages consumption in emerging markets - In emerging markets, the

consumption of soft drinks is increasing significantly. This is mainly due to an increase in

purchasing power in these markets. (Internal Environment Report | Operations Management

Homework Help, n.d.)

Other opportunity is that Coca Cola Company is quickly expanding because of the

acquisitions it has made. (Internal Environment Report | Operations Management Homework

Help, n.d.)

Threats of the Coca Cola Company

Changes in consumer preference – People are more wary about sodas because of the high

sugar content and because of health issues.

Saturated Soda market – There are more and more smaller companies coming up with

beverages to tap in the available market.

 5
Bus 5116 - Written assignment Unit 1- Introduction to Operations Management and Strategy

Water is getting scarce: Criticism is being levelled at the Coca Cola Company for their use

of huge volumes of water at a time when water is becoming an increasingly scarce commodity

in the world.

References

Internal environment report | Operations Management homework help. (n.d.). Homework

Market | Your Homework Helper.

https://www.homeworkmarket.com/sites/default/files/qx/16/10/16/09/sample_internal_analysi

s-1.docx

Jurevicius, O. (2013, February 16). Coca Cola SWOT Analysis (6 Key Strengths in 2020) -

SM Insight. SM Insight; https://www.facebook.com/strategicmanagementinsight.

https://strategicmanagementinsight.com/swot-analyses/coca-cola-swot-analysis.html

Understanding Coca-Cola’s Capital Structure (KO). (n.d.). Investopedia.

https://www.investopedia.com/articles/financial-analysis/090216/understanding-cocacolas-

capital-structure-ko.asp

What makes Coca-Cola world`s most recognizable brands - Yereone. (2017, November

13). Yereone; https://www.facebook.com/yereonecompany/.

https://www.yereone.com/blog/coca-cola-brands-success-story/

Businesswire, (n.d). Global Bottled Water Industry Analysis and Forecast 2020-2026 -

Nestle, PepsiCo, and The Coca Cola Company are the Forerunners of the Market -

ResearchAndMarkets.com.

https://www.businesswire.com/news/home/20210407005454/en/Global-Bottled-Water-

Industry-Analysis-and-Forecast-2020-2026---Nestle-PepsiCo-and-The-Coca-Cola-Company-

are-the-Forerunners-of-the-Market---ResearchAndMarkets.com