STI COLLEGE SAN JOSE DEL MONTE BULACAN 1

STRATEGIC MANAGEMENT PAPER OF:

THE COCA-COLA COMPANY

Presented to the Faculty of the Business Management Department

of STI College San Jose Del Monte Bulacan

In Partial Fulfillment of the Requirements in

Strategic Management Subject

by

Almerino, Rosallie Annes

Esio, Vhanessa

Lorenzo, Zyra Niki

Naag, Arabella

Ragay, Carl Jefferson

Vargas, Genevieve

March 2023
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TABLE OF CONTENTS

EXECUTIVE SUMMARY

I. Introduction

a. Company History and Background

b. Company Profile

c. Corporate Social Responsibility Initiatives

d. Corporate Governance

II. Research Design and Methodology

a. Research Design

b. Scope and Limitation

ANALYSES

III. Vision and Mission Statement Analysis

IV. External Analysis

a. Economic

b. Political

c. Social

d. Technological

e. Environmental

V. Internal Analysis

a. Employees

b. Organizational Chart

VI. Industry and Market Analysis

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a. Market Segment and Trends

b. Pricing

c. Advertising and Promotion

d. Buyer and Consumer Profile

VII. Competitors Analysis

a. Michael Porter’s 5 Forces of Competitive Analysis

b. Competitor’s Profile (3)

STRATEGY FORMULATION

VIII. Matrix

a. SWOT Matrix

b. SPACE Matrix

c. GRAND Strategy Matrix

d. BCG Matrix

IX. Strategic Management Recommendation and Formulation

a. 4Ps Recommendations

b. External Recommendations

c. Internal Recommendations

d. Vision and Mission Recommendations

e. SWOT Analysis Recommendations

f. Competitive Advantage Recommendations

g. Market Trends Recommendations

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I. INTRODUCTION

The Coca Cola Company is a leading multinational company involved in the

manufacturing, distribution, and marketing of non-alcoholic beverages. The company owns

over 400 brands including water, juice drinks, diet, tea, energy, and coffee. The company

has made significant strides in unit sales, customer loyalty, product portfolio growth and

profitability. This white paper seeks to examine the strategic processes and growth

strategies that may be responsible for this trending growth.

A. Company History and Background

The Coca-Cola Company is an American company founded in 1892 and today

primarily engaged in the manufacture and sale of Coca-Cola syrups and concentrates.

Coca-Cola is an American cultural institution and a global icon of sweetened soda,

American taste. The company also manufactures and markets other soft drinks and citrus

beverages. With more than 2,800 products sold in more than 200 countries, Coca-Cola is

the world's largest beverage manufacturer and distributor, one of the largest corporations in

the United States, and one of the most successful brands in marketing history. The Coca-

Cola drink was created in 1886 by Atlanta pharmacist John S. Pemberton (1831–88) at his

Pemberton Chemical Company. His accountant, Frank Robinson, chose the name of the

drink and wrote it in the flowing script that has become Coca-Cola's trademark. Promoted

his drink based on cocaine from coca leaves and caffeine-rich extracts of cola nut. Cocaine

was removed from the Coca-Cola formula around 1903. Pemberton sold the syrup to local

soda fountains and advertised the drink to tremendous success. By 1891, another Atlanta

pharmacist, Asa Griggs Candler (1851–1929), had secured full ownership of the company

(a total cash outlay of $2,300 plus a partial ownership exchange), and the following year
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established the Coca-Cola Company in the "Coca-Cola" trademark was registered with the

US Patent Office in 1893.

B. Company Profile

The Coca-Cola Company (NYSE: KO) is a total beverage company with products sold

in more than 200 countries and territories. Our company’s purpose is to refresh the world

and make a difference. Our portfolio of brands includes Coca-Cola, Sprite, Fanta, and other

sparkling soft drinks. Our hydration, sports, coffee, and tea brands include Dasani,

smartwater, vitaminwater, Topo Chico, Powerade, Costa, Georgia, Gold Peak, Ayataka,

and BodyArmor. Our nutrition, juice, dairy and plant-based beverage brands include Minute

Maid, Simply, innocent, Del Valle, fairlife and AdeS. They are constantly transforming our

portfolio, from reducing sugar in our drinks to bringing innovative new products to market.

We seek to positively impact people’s lives, communities and the planet through water

replenishment, packaging recycling, sustainable sourcing practices and carbon emissions

reductions across our value chain. Together with their bottling partners, we employ more

than 700,000 people, helping bring economic opportunity to local communities worldwide.

C. Corporate Social Responsibility Initiatives

In 2013, The Coca-Cola Foundation gave $100 million, positively impacting 134

million people in 122 countries. Coca-Cola commits to donating 1% of operating profits

each year through donations from foundations and corporations.The Coca-Cola Foundation

has three main priorities:

1. Woman

Economic strength and entrepreneurship

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2. Water

Access to clean water, water conservation and recycling

3. Wellbeing

Active and healthy living, education, and youth empowerment. We all

know this is a giant operating in a multi-billion-dollar industry. Still, the

company recognizes the importance of a unified brand. When a consumer

looks at a company, they know he is only looking at one brand and not

considering the inner workings of the company structure.

D. Corporate Governance

The company has a strong and effective governance system across the group. With

operations spread across three continents, in diverse economic and regulatory

environments, and in a variety of countries, they rely on strong governance and effective

leadership to help the Group achieve its strategic objectives. I have long recognized that it

is essential. Their commitment to best practices in corporate governance plays a key role in

managing risks and opportunities and maintaining stakeholder trust. They recognize the

value of effective corporate governance and have regularly monitored and adopted best

practices since the Group's founding.

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II. Research Design and Methodology

A. Research Design

The techniques and processes to use in order to gather the necessary data are laid

out in a research design. The project's overall operational framework or operational pattern

specifies what data is to be gathered from which sources using what techniques. Based on

the aforementioned definitions, it can be determined that this study is descriptive research

because it describes the attitudes of the consumers who purchase the products. We are

attempting to investigate the numerous variables that may contribute to the preference for

Coca-Cola products through this study.

B. Scope and Limitation

Every work has room for growth, and each paper that makes reference to other

papers has touched on a fresh angle of the research done on the particular topic and

opened up a brand-new arena for study. There are undoubtedly restrictions when a brand-

new field of study is introduced, which encourages the publication of more articles in that

area. The lack of funds for this project prevented us from looking into additional marketing

facets of Coca-Cola, which is one of this paper's shortcomings. As a result, we were only

able to analyze the data we collected.

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III. Vision and Mission Statement Analysis

MISSION

"To refresh the world in mind, body and spirit. To inspire moments of optimism and

happiness through our brands and actions."

 To refresh the world...

  To inspire moments of optimism and happiness...

  To create value and make a difference.

The statement emphasizes the importance of providing refreshment for both the body and

mind/spirit, suggesting a holistic approach to well-being. The mission of the company is to

deliver products that quench thirst and promote positive emotions and a healthy lifestyle.

VISION

"Our vision is to craft the brands and choice of drinks that people love, to refresh them in

body & spirit. And be 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. “

The statement aims to create brands and offer drinks that people love, which will refresh

them both physically and mentally. The statement also emphasizes the importance of

sustainability in their business operations and their commitment to creating a better future for

people, communities, and the planet.

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IV. External Analysis

A.Economic

 The beverage sector is economically dependent on the state of various nations,

particularly the largest markets, such the United States. Beverage consumption is

influenced by consumer spending power, which in turn is influenced by global economic

conditions as measured by indices like employment rates. Governmental acts, such the

distribution of food stamps, have an impact on the financial status of The Coca-Cola

Company as well. Given that the company's revenue sources are dispersed across the

globe, it nonetheless faces somewhat significant economic challenges.

B.Political

 Operational restrictions are placed on the company by political considerations that affect

Coca-Cola Company. For instance, popular campaigns against the consumption of

sugary beverages are putting more and more pressure on government. New regulations

for beverage consumption are being implemented by governments, which has an effect

on the market demand for goods made by firms like Coca-Cola. Also, Tax rises on

carbonated sweetened beverage products may also have an effect on The Coca-Cola

Company's demand and financial performance. As a result, beverage corporations are

coming under growing pressure from potent political forces that have an effect on the

way their businesses are run.

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C.Social

 Trends in beverage consumption are among the socio-cultural aspects affecting Coca-

Cola performance. For instance, consumer views about the health and wellness

implications of sweetened beverages have an impact on how profitable the company's

products are. Since different health and wellness trends are supported by different

segments of the customer community, sociocultural variables have a somewhat

substantial impact on the company's operations.

D.Technological

 The technological aspect of Coca-Cola external environment can be viewed in relation to

the technological advancement of businesses in the beverage sector, with a focus on

these businesses' growing reliance on automated operations. The present trends in

innovation for environmental conservation or protection also have an impact on industry

participants. These businesses must, for instance, adopt cutting-edge technology that

enables clients to take part in recycling efforts. As a result, Coca-Cola feels some

pressure from the industry's technological factors.

E.Environmental

 For beverage companies, environmental issues may have a brand awareness-related

impact. The external analysis of Coca Cola can show how environmental issues impact

their business:

 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.
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 The company needs to consider more eco-friendly packaging options. They can

substitute their plastic bottle with other materials which are easily recyclable.

V.

References

The Coca-Cola Company. (2023). Investor Relations: The Coca-Cola Company (KO)

Retrieved 2023 from

https://r.search.yahoo.com/_ylt=Awrjedj8MRhkMa0z3_dXNyoA;_ylu=Y29sbwNncTEEcG9z

AzEEdnRpZAMEc2VjA3Ny/RV=2/RE=1679336061/RO=10/RU=https%3a%2f

%2fwww.coca-colacompany.com%2f/RK=2/RS=g14ypUvYnu8m5zg4CsrPmsvxZmc-