ISLAMIA UNIVERSITY OF BAHAWALPUR, PAKISTAN.

Report on ------------------------

Submitted By

(1). Tahmeena Javid (Roll No. -----------------)

(2). Mariyum Irshad (Roll No. -----------------)

Supervisor: Dr. Tasawar Javed

Department:

Institute of Business, Management & Administrative Sciences

(IBMAS) Faculty of Management sciences

March 2022

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INTRODUCTION:

The Coca-Cola Company is an American multinational beverage

corporation founded in 1892, best known as the producer of Coca-Cola. The
Coca-Cola Company also manufactures, sells, and markets other non-alcoholic
beverage concentrates and syrups, and alcoholic beverages. The company's
stock is listed on the NYSE and is part of the DJIA and the S&P 500 and S&P 100
indexes. The soft drink was developed in 1886 by pharmacist John Stith
Pemberton. At the time it was introduced, the product contained cocaine from
coca leaves and caffeine from kola nuts which together acted as a stimulant.
The coca and the kola are the source of the product name, and led to Coca-
Cola's promotion as a "healthy tonic". Pemberton had been severely wounded
in the American Civil War, and had become addicted to the pain medication
morphine. He developed the beverage as a patent medicine in an effort to
control his addiction. In 1889, the formula and brand were sold for $2,300
(roughly $71,000 in 2022) to Asa Griggs Candler, who incorporated the Coca-
Cola Company in Atlanta in 1892. The company has operated a franchised
distribution system since 1889.[3] The company largely produces syrup
concentrate, which is then sold to various bottlers throughout the world who
hold exclusive territories. The company owns its anchor bottler in North
America, Coca-Cola Refreshments.

(The Coca-Cola Company, 2020.)

VISION STATEMENT

Inspiring each other to be the best we can be by providing a great place to

work.

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MISSION STATEMENT

To refresh the world in mind, body, and spirit, to inspire moments of optimism
and happiness through our brands and actions, and to create value and make a
difference.

(Coca Cola Mission and Vision Statement Analysis, n.d.)

Components of mission statement

 Concern for public happiness  Make difference from the competitors 

Concern for brand image

SWOT ANALYSIS OF COCA-COLA

Strengths

 Coca cola is the world’s most valuable brand  Broad verity of products 
Coca cola is the leader brand of global soft drink industry  High market share
 Heavy advertisement  Coca cola enjoys customer loyalty

Weakness

 Pepsi gave coca cola a tough time to a great extent over market share. 
Coca-Cola company’s soft drinks contain chemicals that are harmful to health.
 Coca-Cola has only made the beverage products they have not made any
other product like food etc.  Coca-Coca has not focused on making healthy
products.

Opportunities

 The Company can target health conscious consumers.  A lot of customers

can be captured by linking up with a food company.  It can compete PepsiCo
by expanding their product line. Like introducing some snacks.  To improve
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the supply chain, Coca-Cola can deliver its product to countries where Coca-
Cola products are not yet available.  The expansion of Kinley has not yet
reached the level of Bisleri. it can increase its business by improving packaged
drinking water.

Threats

 In today’s age people are less using soft drinks due to health concerns. 
There are many alternative of Coca-Cola which are available at lower rates.  A
huge competition with Pepsi etc.  Increasing prices of sugar and other
materials  Increasing demand of chemical fee beverages

(Coca Cola SWOT Analysis, n.d.)

PESTEL ANALYSIS OF COCA-COLA

PESTEL analysis of a company shows how the factors like politics, economy,
sociology, technology, environment, and law can accelerate or decelerate the
development of a company. Though Coca-Cola is one of the biggest beverage
companies operating their business in more than 200 countries, it gets
influenced by these external factors

Political Factors

Political factor can affect the business condition of company. If the political
situation of any country changes, everything in that country changes in a
positive or negative aspect. Here a few political conditions which can affect the
business of Coca-Cola.

 If there is any change in taxes, or any labor force it can affect the sales of
CocaCola.  If the government supports any of its favor able product it can
affect Coca-Cola sales.  Business relationships with other countries can also

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affect Coca-Cola sales for example, due to the trade relation between Burma
and the US, Coca-Cola cannot sell its product in Burma.

Economic Factors

Most companies are dependent on the nation's economic conditions to

determine how much they should invest in the country. Even when a country
has a good trade relationship, its economic stability can be another factor to
consider. Otherwise, the company may fail to earn profit and fail to develop.
The PESTEL analysis of Coca Cola shows how economic conditions can impact
the sales of the company

 Many companies started the carbonated drink business as a competitor of

CocaCola. But the loyal customers still purchased Coca-Coca which can help
company to survive in competitive market.  Rising costs of beverage raw
materials and trade deals with suppliers can affect company’s business.

Social Factors

When a company does a business in a particular area, their socio-cultural

condition significantly impacts the company. They need to come to terms with
the issues to run a business smoothly. Otherwise, the company may fail to
interest more customers. Here are a few sociological scenarios that can work
upon the development of Coca Cola

 The Coca-Cola company primarily deals with carbonated drinks. While many
health conscious people switch to alternatives like Coke zero which can target
health conscious consumers.  Coca-Cola has spread its business in many
countries. Coca-Cola needs to focus on these countries. They have already
introduced more than 30 different flavors in Japan. These experimental flavors
can be helpful for them to gain more consumers.
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Technological Factors

Though technological issues do not directly impact the growth of beverage

brands, there are certain other conditions related to technology that can
indirectly affect them. The PESTEL analysis of Coca Cola can give an idea about
how technical issues can impact the brand’s business

 The company need research to develop its product. The more they invest in
developing infrastructure, the better research will be possible.  Nowadays,
many people use smart phones, companies can use social networking to
promote and market their company.

Ecological Factors

For beverage companies, ecological issues may have a brand awareness-

related impact. The PESTEL analysis of Coca Cola can show how ecological
issues impact their business

 The Company needs eco-friendly packaging; they can change the plastic
bottle to another material that can be easily recycled.  Companies can
improve their brand impression by using innovative waste management
practices.  The company has been using water-smart farming methods like
RAIN and CARE. It has helped them to interest people who are concerned
about the environment.

Legal Factors

The legal issues may not have a direct impact on the brand’s business.
However, they can show some indirect influence. Here are some legal
conditions that can affect the brand’s development

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 Many countries have already issued a range for sugar usage in beverages. As
CocaCola has a wide area of services, they need to consider it. Failing to do so
may result in legal prosecution.

 The caffeine quantity in any beverage is fixed for most countries. Coca-Cola
has previously suffered for its excessive caffeine content and had to pay for the
lawsuits.  The company should take care of employment ethics If they do not
provide healthy working conditions to the labor, they can face legal problems.

(Coca Cola PESTEL Analysis, n.d.)

IFE (INTERNAL FACTOR EVALUATION)

Internal Factor Evaluation (IFE) matrix is a strategic management instrument

for assessing main strengths and weaknesses in useful areas of a company. IFE
matrix also gives a foundation for recognizing and assessing associations
among those parts. The IFE matrix is utilized in strategy formulation. An
example of internal factor evaluation matrix is given for the Coca-Cola
Company.

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Ife matrix of Coca-Cola

Internal factor evaluation Weight Rating Weight score

Strengths

 Coca cola is the world’s most valuable brand 0.10 4 0.4

 Broad verity of products 0.10 4 0.4

 Coca cola is the leader brand of global soft drink industry

0.09 4 0.36

 High market share 0.09 4 0.36

 Heavy advertisement 0.10 4 0.4

 Coca cola enjoys customer loyalty

0.12 4 0.48

Weaknesses

 Pepsi gave coca cola a tough time to a great extent over market share.
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0.09 1 0.09

 Coca-Cola has only made the beverage products they have not made any
other product like food etc.

0.12 1 0.12

 Coca-Coca has not focused on making healthy products

0.10 1 0.1

 Coca-Cola company’s soft drinks contain chemicals that are harmful to

health.

0.09 2 0.18

Total 1 3.7

The Coca-Cola Company's total weighted score is higher than average,

indicating that the company is internally strong.

(IFE Matrix of Coca-Cola Company, 2010)

EFE (EXTERNAL FACTOR EVALUATION)

A strategic management tool that is frequently used for evaluating the current
business environment is the External Factor Evaluation (EFE) matrix. To
priorities and visualize the opportunities and threats that a company is facing,
the EFE matrix is a superior tool. The EFE Matrix includes social, political, legal,
economic, and other external forces as external factors. For the Coca-Cola
Company, an example of an external factor evaluation (EFE) matrix is provided.

Efe Matrix of Coca-Cola

External factor evaluation Weight Rating Weight score

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Opportunities

 The Company can target health conscious consumers.

0.10 4 0.4

 A lot of customers can be captured by linking up with a food company.

0.12 4 0.4

 introducing some snacks.

0.10 4 0.4

 To improve the supply chain 0.10 4 0.4

 improving packaged drinking water.

0.09 4 0.36

Threats

 In today’s age people are less using soft drinks due to health concerns.

0.10 3 0.3

 There are many alternative of Coca-Cola which are available at lower rates.

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0.09 2 0.18

 A huge competition with Pepsi etc.

0.12 1 0.12

 Increasing prices of sugar and other materials

0.09 3 0.27

 Increasing demand of chemical fee beverages 0.09 2 0.18

Total 1 3.01

In the case of Coca-Cola Company, the total weighted score is above average,
indicating that the company's strategies are effective and that it is capitalizing
on existing opportunities while mitigating the potential negative effects of
external threats.

(EFE Matrix of Coca-Cola Company, 2010)

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COMPETITIVE PROFILE MATRIX OF COCA-COLA

A competitive profile matrix (CPM) classifies a firm's main competitors as well

as its specific strengths and weaknesses in relation to the strategic position of a
design firm. In a Competitive Profile Matrix, an organization evaluates itself as
well as its competitors by assigning ratings and weights to critical/key success
factors. It then recognizes its strategic competitive position in relation to its
major rivals. A company with more weighted points than its competitors will
have a stronger competitive position. The following is the construction of a
competitive profile matrix for the Coca-Cola company

Coca-Cola Pepsi Cadbury

Key success factor

Weight Rating Weighted score

Rating Weighted score

Rating Weighted score

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Financial Position

0.08 4 0.32 3 0.24 3 0.24

Advertising 0.12 4 0.48 4 0.48 3 0.36

Market Share 0.12 4 0.48 3 0.36 2 0.24

Brand Image 0.10 4 0.40 4 0.40 3 0.30

Customer Loyalty

0.10 3 0.30 3 0.30 2 0.20

Product Quality

0.12 4 0.48 4 0.48 4 0.48

Product Range 0.08 3 0.24 4 0.32 3 0.24

Distribution 0.10 4 0.40 3 0.30 3 0.30

Price Completion

0.08 3 0.24 3 0.24 3 0.24

Geographical Expansion

0.10 4 0.40 3 0.30 2 0.20

Total 1.00 3.74 3.42 2.80

This Matrix also shows that Coca-Cola is strong in all aspects of rivalry and has
a strong market position.

(Competitive Profile Matrix of Coca-Cola, 2010)

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SWOT MATRIX OF COCA-COLA

Strengths –S

 World’s most valuable brand  Broad verity of products  Leader brand 

High market share  Heavy advertisement  Customer loyalty

Weakness – W

 Pepsi gave coca cola a tough time.  Soft drinks contain chemicals.  Only
made the beverage products  Not focused on making healthy products.

Opportunities – O

 Can target health conscious consumers.  Captured customer by linking up

with a food company.  Expand their product line.  To improve the supply
chain.  Improving packaged drinking water.

SO – Strategies

 Can do food business using customer loyalty  Can expand their product line
through advertising.  Coca-Cola is a leading brand; they can reach their supply
to countries where it has no access.

WO – Strategies

 Soft drinks contain chemicals and can target customers by creating a new
product for health conscious people.  They only make beverage products,
they can link to food companies or make their own food products.

Threats – T

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 Health concerns.  Alternatives available at lower rates.  A huge
competition with Pepsi etc.  Increasing prices of sugar and other materials 
Increasing demand of chemical free beverages

ST– Strategies

 They can compete Pepsi using their customer loyalty.  Coca-Cola has a high
market share they can reduce increasing prices threat.

WT – Strategies

 The company can eliminate the threat of health concern by eliminating the
weakness of chemicals in its soft drink.  The company can mitigate the threat
of increasing demand for beverages by focusing on healthy products

SPACE MATRIX OF COCA-COLA

X Axis

Internal Strategic position External Strategic position

Competitive position Industry Position

-1 Market Share

-1 Brand Image

-2 Customer loyalty

-1 Product life cycle

-2 Control over supplier

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-2 Technological know-how

Average -1.5

+5 Growth Potential

+6 Resource utilization

+6 Financial stability

+4 Profit potential

+5 Ease of entry

+4 Consolidation

Average +5

Total X axis score +3.5

Y Axis

Financial Position Stability Position

+5 Working Capital

+6 Liquidity

+5 Net income

+6 Return on investment

+4 Leverage

+4 Return on assets

Average +5

-1 Technological changes
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-4 Competitive pressure

-2 Inflation rates

-2 Barriers to entry

-1 Price elasticity of demand

-1 Demand Variability

Average -1.83

Total Y axis score +3.17

Total score of x axis is +3.5

Total score of y axis is +3.17

BCG MATRIX OF COCA-COLA

Question Marks

Question marks are products that are still in development and have not yet
received a strong response from the market. They have only achieved a small
market share so far, and there is still a lot of risk involved in investing in them.
They could either become very successful.

Coca-Cola is branching out into new, healthy product lines including Diet Coke,
Smart water, Honest Tea, Sparkling Water, and Minute Maid. They are
investing heavily in these products in order to raise awareness and grow the
healthy non-carbonated drinks market. As these products are relatively new,
they are considered question marks for the company.

Stars
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A company's products with low growth and market share and no promising
growth chances are called dogs.

Coca-Cola Watered bottle comes in star products Coca-Cola has two water
products Kinley and Dasani. Kinley is offered in Europe market while Dasani is
popular in U.S market. If the healthy water product is expanded Coca-Cola take
advantage from this product. And they gain high market share.

Cash Cow

Cash cows are products that have low growth markets but high market share.
As we can see Coke is a market leader in carbonated soft drink industry. And
Coke generates a lot of revenue for the company. They have been around the
world for years. Coke is a cash cow for the Coca-Cola company.

Dogs

A company's products with low growth and market share and no promising
growth chances are called dogs. Management does not look at such products
and invest money in it because it has no profit or less chance of profit. We can
see Coca-Cola has a product which is now decreasing in demand which is
carbonated soft drinks while demand of healthy products is increasing
however Coke is a cash cow, can become a low market share.

(Coca Cola BCG Matrix Analysis, 2022)

IE MATRIX OF COCA-COLA

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The internal-external matrix consists of 3 quadrants. I, II, IV which is grow and
build. III, V, VII which is hold and maintain. VI, VII, IX which consist of
harvesting and diver sting. The EFE weighted score is 3.01 with similarity in the
IFE weighted score is 3.7. Coca-Cola falls in quadrant I with a strong high
growth.

References Coca Cola BCG Matrix Analysis. (2022, March 14). Retrieved from
https://www.edrawmax.com/article/coca-cola-bcg-matrix-analysis.html

Coca Cola Mission and Vision Statement Analysis. (n.d.). Retrieved from
https://missionstatement.com/coca-cola/

Coca Cola PESTEL Analysis. (n.d.). Retrieved from

https://www.edrawmax.com/article/cocacola-pestel-analysis.html

Coca Cola SWOT Analysis. (n.d.). Retrieved from

https://www.edrawmax.com/article/coca-colaswot-analysis.html

Competitive Profile Matrix of Coca-Cola. (2010, Nov 15). Retrieved from

https://mbalectures.com/management/principles-of-management/1091/comp
etitive-profile-matrixof-coca-cola.html

EFE Matrix of Coca-Cola Company. (2010, Nov 15). Retrieved from

https://mbalectures.com/management/strategic-management/1094/efe-
matrix-of-coca-colacompany.html

3.0-4.0 Strong 2.0-2.99 Average 1.0-1.99 Weak

THE IFE TOTAL WEIGHTED SCORES

High

3.0-4.0

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THE EFE TOTAL WEIGHTED SCORES

I II III

Medium

2.0-2.99

IV V VI

Weak

1.0-1.99

VII VIII IX

IFE Matrix of Coca-Cola Company. ( 2010, Nov 15). Retrieved from

https://mbalectures.com/management/strategic-management/1097/ife-
matrix-of-coca-colacompany.html

The Coca-Cola Company. ( 2020., February ,September 5, 24). Retrieved from

"2019 Annual Report (Form 10-K)"

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