INTERNAL ENVIRONMENTAL SCANNING:

• CORPORATE STRUCTURE
 Coca-Cola's organizational structure is a matrix structure, which means that employees report to both a
geographic division head and a functional head (e.g., marketing, finance, supply chain). This can help to
ensure that employees are focused on both the needs of their region and the overall needs of the
company.
 The Coca-Cola Company’s operational structure includes four geographic operating segments: Europe,
Middle East & Africa; Latin America; North America; and Asia Pacific. The company reporting structure
also includes the non-geographic segments of Global Ventures (GV) and Bottling Investments Group
(BIG). Geographic operating segments are then further divided into smaller geographic regions, such as
Europe, Japan & South Korea, and ASEAN and South Pacific. This geographic structure means that
overall, the company’s organizational structure is relatively tall and complex. The Coca-Cola Company is
controlled through a vertical top-down hierarchy, with decision-making authority residing with the
company’s upper management and flowing down the organizational hierarchy.

 Geographic Divisions:
Each geographic division is responsible for all aspects of the Coca-Cola business in its respective region,
including marketing, sales, and distribution. The divisions are further divided into smaller geographic
units, such as countries or groups of countries. Coca-Cola has a total of six business segments, with four
of these geographic divisions and the remainder business-type units for the company’s acquired brands
and bottling operations. In 2021, the company introduced 9 new business units to eliminate the
duplication of resources and introduce new products more quickly.

 Business-Type Units:
Global Ventures (GV): This unit is responsible for identifying and acquiring new brands and businesses
that are a good fit for Coca-Cola's portfolio.

Bottling Investments Group (BIG): This unit owns and operates Coca-Cola bottling plants in a number of
countries around the world.

 Product-based divisions help Coca-Cola manage a portfolio of approximately 200 brands, while there are
also various functional groups to support business operations in multiple departments.

Key benefits of Coca-Cola's organizational structure:

 Global reach: The company's geographic divisions allow it to reach a wide range of customers around the
world.
 Local focus: The divisions are also able to tailor their strategies to the specific needs of each market.
 Brand focus: The business-type units allow the company to focus on its core brands and businesses.
 Innovation: The matrix structure can help to encourage innovation by bringing together employees from
different parts of the organization.

Challenges of Coca-Cola's organizational structure:

 Complexity: The matrix structure can be complex and bureaucratic, which can make it difficult to make
decisions quickly.
 Duplication of effort: There can be duplication of effort between the geographic divisions and the
business-type units.
 Communication challenges: It can be difficult to communicate effectively across the different parts of
the organization.
• CORPORATE CULTURE

Coca-Cola boasts a vibrant internal culture built on five core pillars: passion, integrity, leadership,
collaboration, and diversity. This translates into a global mindset with a strong community focus,
encouraging innovation and continuous learning. The culture fosters empowerment, collaboration, and a
competitive spirit among employees, driving strategic flexibility and adaptation. However, maintaining
consistency across diverse regions and balancing adherence to core values with necessary change can pose
challenges. Overall, Coca-Cola's strong culture serves as a key asset, potentially translating into strategic
advantages if carefully managed and adapted to evolving trends.

Core Values:
 Leadership: Fostering a culture of empowerment and ownership.
 Passion: Emphasizing an enthusiastic and dedicated approach to work.
 Integrity: Upholding ethical conduct and building trust.
 Collaboration: Encouraging teamwork and open communication.
 Diversity: Embracing inclusivity and valuing different perspectives.
 Quality: Striving for excellence in all aspects of the business.
 Accountability: Taking ownership of individual and collective performance.

Culture Highlights:
 Global Mindset: Coca-Cola operates in over 200 countries, fostering a diverse and inclusive work
environment.
 Community Focus: Actively involved in social responsibility initiatives and community engagement.
 Innovation Drive: Encourages experimentation and embraces new ideas.
 Learning Culture: Provides ample opportunities for employee development and growth.
 Competitive Spirit: Maintains a high-performance focus while encouraging healthy competition.

• CORPORATE RESOURCES
Coca Cola value chain analysis is a big step towards learning about business models. The company has a global
presence with many activities covered locally while running some operations from the headquarters.

Michael Porter's Value Chain

A value chain is a combination of the systems a company or organization uses to make money. It is made up of
various subsystems that are used to create products or services. This includes the process from start to finish.

PRIMARY ACTIVITIES:
The five primary activities in a value chain are inbound logistics, operations, outbound logistics, marketing and
sales, and service. These activities are all directly involved in the production and sale of a good.
1. Inbound Logistics:
Inbound logistics includes the activities and processes involved in purchasing, receiving, storing, and
managing raw materials from suppliers to create products. The large supply chain of the coca-cola company
helps create a competitive business advantage at the primary steps. It enables the company to maintain the
advantage as the processes move forwards till the final product is created and distributed to sale channels.
Tens of thousands of farmers work for the Coca-Cola supply chain, and the company regards them as
partners. They purchase raw materials from fixed suppliers, and all of them get a guide from the company
that gives them details about some regulations and principles. The Coca-Cola value chain also promotes
environmentally friendly workplace activities and policies.

2. Operations:
 Coca-Cola is the most recognized worldwide beverage brand, operating in more than 200 countries.
Although it is a global business, the company has the tradition of working through local channels that add
to its trust with related companies and bottling partners making them stay loyal to the company and gain
more success. The operation activities in the Coca-Cola value chain include headquarters administrations
and the development of each process. Coca-Cola does not control or run its bottling partners, but it is
responsible for the consumer brand marketing initiatives.

3. Outbound Logistics:
Outbound logistics refers to the activities, processes, and distributors involved with delivering the
company’s products and services to customers. Coca Cola managed to reach the top with its high-quality
services and delicious soft drinks that everyone likes to drink. Thousands of retailers work with Coca-Cola,
and the company makes sure that there is no limited stock or shortage of products available in warehouses
and facilities. Bottling partners and distributors are the main stars of outbound logistics in the Coca-Cola
value chain. They create the packaging and Coca-Cola merchandise and are responsible for timely deliveries
of the final product to customers and vendors.

4. Marketing and Sales:

Marketing
Coca-Cola got its current success and became the world's leading beverage company from its innovative
marketing strategies. The company has been advertising its products with promotions, merchandising,
sponsorships, and media for a long time. Everyone knows the never-changing great taste of Coca-Cola
drinks, and the red color represents the brand.
Coca-Cola Marketing Mix

1. Product Mix
Product is the first component of the 4Ps of marketing of Coca-Cola. The company boasts an extensive
showcase of product portfolio summing up to 500 still and sparkling brands. With this number, it provides
more than 3000 beverage options. The company's leading product, Coca-Cola is one of the most popular
and valuable brands globally. Some of the most famous brands from the company's portfolio are as follows:

Coca-Cola. One of the most recognized and top-selling soft drinks globally.
Sprite. This is another popular brand from Coca-Cola with a lemon-lime flavor. This was introduced to the
market in 1961.
Fanta. This beverage comes in an orange flavor and is the second oldest drink from Coca-Cola that was
introduced in 1940.
Diet coke. Those who are health-conscious opt to choose this drink as this is a calorie and sugar-free soft
drink first made in 1982. Some call this Coca-Cola light.
Coca-Cola zero. This is the latest addition to the product portfolio of Coca-Cola which contains zero sugar.
Coca-Cola Life. It's a low-calorie beverage containing Stevia leaf extract and cane sugar.
Minute Maid. This is a juice drink by Coca-Cola acquired in 1960.
Ciel. Coca-Cola introduced this non-carbonated purified drinking water in 1960.
Powerade. This is a beverage for hydration and energy which contains electrolytes, carbohydrates, and
fluids.
Powerade zero. Fitness and sports drinks contain electrolytes but without calories.
Powerade. This is a beverage for hydration and energy which contains electrolytes, carbohydrates, and
fluids.
Simply orange. A 100% premium orange juice is available in six varieties.
Fresca. A soft drink with a distinct citrus taste and caffeine-free.
Glaceau Vitamin water. This is drinking water enhanced with nutrients and is available in 26 different
countries.
Del Valle. A premium line of nectars and juices exclusively sold in Central and Latin America.

2. Price Mix
Another component of the Coca-Cola marketing mix is the price. The company follows the price
discrimination approach to its marketing mix. The approach allows the company to charge varying prices for
its products in several segments. Oligopoly is typically a market with a small number of companies realizing
that they are independent in terms of output policies and pricing. The beverages industry practices
oligopoly having several purchasers but only with limited manufacturers.
The various price points of Coca-Cola are generally driven by the kind of consumption. Hence, the pricing
power relies on several components including product usage and location. When Coca-Cola attempts to
penetrate a new market, especially those sensitive to pricing, the company usually lowers the prices of its
products than its competition. By the time it has solidified its position in the new market, it repositions its
strategy as a premium brand using several promotional initiatives.

3. Place Mix
With the success of Coca-Cola, it is no secret that the company has several global locations where its target
market can easily access all its products. It has an extensive and comprehensive distribution system selling
about 1.9 billion servings every day. Traditionally, Coca-Cola relied on the company's global bottling partners
for packaging and distribution processes. The system operates across multiple channels.
Coca-Cola manufactures and sells syrups, concentrates, beverage bases to bottling operations. The company
owns all the brands and is responsible for brand marketing initiatives. Instead of placing various retail stores
around the world, Coca-Cola maximizes the capabilities of its authorized bottlers to package, merchandise,
and distribute the beverages to the company's vending partners and customers. The authorized bottlers
also work closely with restaurants, grocery stores, convenience stores, street vendors, amusement parks,
and movie theaters to distribute Coca-Cola products. Together they effectively execute a localized marketing
strategy for the company.
4. Promotion Mix
The competition is tight in the soda industry; thus, most companies spend a huge amount of money to fund
several advertisements and other promotional initiatives. In 2016, Coca-Cola recorded a marketing
expenditure of $4 billion and increased to $4.1 billion in 2018.
It was also in 2016 where the company launched the Taste the Feeling promotional campaign which marks a
significant turnaround from its previous marketing approach. Besides televisions and outdoor advertising
campaigns, Coca-Cola has expanded its ads across several social media channels. Since digital marketing is
one of the more modern ways to promote a product, the company's social media accounts are utilized to
connect with followers and fans and for customer engagements. In its official YouTube account, there are
over 1,250 promotional videos where customers can view. As competition gets tougher, Coca-Cola aims to
strengthen its reputation in the industry through its social media platforms.
Surely digital marketing has played a significant role in modern marketing, however, over the years, Coca-
Cola has also been consistent with its promotional initiatives in marketing strategy. They never deviate from
the fundamental and household message to their customers, which is happiness. The company executes
diverse campaigns, but never forgets to instill in each ad the underlying theme throughout the company's
history.
Besides the fundamental promotional ads, Coca-Cola also invests in corporate social responsibility and
sustainability to develop a sustainable manufacturing network and supply chain.
7 Markets Model:
It goes without saying that all stakeholders are important for the Coca-Cola company. However, they cannot
all exert the same or similar power; nor will they be interested to do so. It can then be said that the Board
of directors and senior leaders are the most powerful stakeholders as they chart the strategic direction of
the company.

Stakeholder Power Interest Comment

It has provided quality product to its customers and put

forward customers trust at top priority. Coca Cola has heavily
Customers High High
invested in its research and development area to produce
high quality beverages.

It has recognized its employees as an asset and understand

the fact that a motivated employee strives for the growth of
Employees Low High the company. It has taken different measures to satisfy its
employee’s needs and provide them route to communicate
and express their feelings.

They want high return on their investment. As it is apparent

from the growth and development of coca cola. It is working
Shareholders High High hard to maximize the wealth of shareholder. Shareholders
may put enough pressure on the company that may influence
the strategic decisions, hence very important stakeholders.
 Governments Are also very important stakeholders of the Coca-Cola
High Low
and NGO’s company. Maintaining good relationship with them is vital

The most famous soft drink in the world has done an amazing
job of creating and maintaining its identity as a deliverer of
Referral
High Low happiness and unity. Word-of-mouth has a big part to play in
Market
their success. After all, Coca-Cola’s “thing” is all about
bringing people together.

It can then be said that the Board of directors and senior

Internal
High Low leaders are the most powerful stakeholders as they chart the
market
strategic direction of the company.

The Coca-Cola company sells concentrates, beverage bases

and syrups to bottling partners who manufacture the final
products to sell to organizational customers e.g., wholesalers,
Supplier
Low High retailers, independent outlets, restaurants, movie theatres to
Market
name but a few. These organizational customers then sell the
products to consumers. This shows that the bottling partners
are very important stakeholders of the company.

Coca-Cola uses creators to connect with digital natives and

create brand love around specific passion points. And
Influence influencer marketing is the latest trend to promote a brand.
High Low
Market Coca-Cola has already run some amazing campaigns utilizing
influencer marketing at its best as #ShareaCoke, #ThatsGold
and #ThisOnesFor

Power Interest Matrix

Minimal Effort Keep Informed

- Employees
- Supplier Market
Keep Satisfied Key Player
- Governments and NGO’s
- Referral Market - Customers
- Internal market - Share Holders
- Influence Market
 Key Customer Segment

Keep Informed Key Player

- Employees - Customers
- Supplier Market - Share Holders

Sales
Coca-Cola value chain analysis helps the company increase their sales in all 200+ countries through
partnerships with other brands like McDonald's. Coca-Cola scores more sales than other products because
customers can buy their drinks from stores, supermarkets, and vending machines.

5. Service:
Coca Cola is well-known for its fast and high-quality customer service. The company provides customer
care, answers queries, and tries to solve any problem that might be unpleasant to the customers through its
highly efficient call centers. The centers operate 24/7, where people worldwide can call for queries or file
complaints. The Coca-Cola value chain uses these primary activities to increase customer loyalty.

SUPPORT ACTIVITIES:
The four support activities of the value chain are infrastructure, technology development, human resources
management and procurement. These activities increase efficiency for primary activities and add value to
products.

1. Infrastructure:
Value chain analysis contains support activities like the infrastructure of the company. Coca Cola
infrastructure includes multiple activities essential for a successful business. The company's infrastructure
defines work efficiency, productivity, and critical planning to support its value chain. Its infrastructure
defines excellent work efficiency and productivity with a restaurant that focuses on green activities and a
pleasant workplace environment.
 Finance:
• Revenues: For the quarter, net revenues grew 7% to $10.8
billion, and organic revenues (non-GAAP) grew 12%, driven by
9% growth in price/mix and 3% growth in concentrate sales.
The quarter included one additional day, which resulted in a 1-
point tailwind to revenue growth. For the full year, net
revenues grew 6% to $45.8 billion, and organic revenues
(non-GAAP) grew 12%, driven by 10% growth in price/mix
and 2% growth in concentrate sales. For both the quarter and
the full year, organic revenue (non-GAAP) performance was
strong across all operating segments.

• Operating margin: For the quarter, operating margin was 21.0% versus 20.5% in the prior year, while
comparable operating margin (non-GAAP) was 23.1% versus
22.7% in the prior year. For the full year, operating margin was
24.7% versus 25.4% in the prior year, while comparable
operating margin (non-GAAP) was 29.1% versus 28.7% in the
prior year. Operating margin performance included items
impacting comparability and currency headwinds. For Exhibit
99.1 1 both the quarter and full year, comparable operating
margin (non-GAAP) expansion was primarily driven by strong
topline growth, partially offset by an increase in marketing
investments versus the prior year, as well as currency
headwinds.

• Earnings per share: For the quarter, EPS declined 2% to $0.46, while comparable EPS (non-GAAP) grew
10% to $0.49. EPS performance included the impact of a 14-point currency headwind, while comparable
EPS (non-GAAP) performance included the impact of a 13-point currency headwind. For the full year,
EPS grew 13% to $2.47, and comparable EPS (non-GAAP) grew 8% to $2.69. EPS performance included
the impact of an 8-point currency headwind, while comparable EPS (non-GAAP) performance included
the impact of a 7-point currency headwind.

• Market share: For both the quarter and the full year, the company gained value share in total
nonalcoholic readyto-drink (NARTD) beverages.

• Cash flow: Cash flow from operations was $11.6 billion for the full year, an increase of $581 million
versus the prior year, driven by strong business performance and working capital initiatives, partially
offset by a transition tax payment and currency headwinds. Free cash flow (non-GAAP) was $9.7 billion
for the full year, an increase of $213 million versus the prior year.
Coca-Cola's financial strategy revolves around driving sustainable, long-term shareholder value through four
key pillars:

1) Resource Allocation:
 Focusing on core and emerging markets: Prioritizing investments in established markets like North
America and Europe while expanding into high-growth emerging markets.
 Optimizing product portfolio: Investing in core brands like Coca-Cola and diversifying with healthier
options, acquisitions, and partnerships.
 Streamlining operations: Increasing efficiency and cost-effectiveness across the supply chain and
distribution network.

2) Margin Expansion:
 Pricing initiatives: Utilizing data-driven pricing strategies to optimize profit margins across different
regions and products.
 Cost management: Implementing cost-saving measures and leveraging economies of scale.
 Revenue growth initiatives: Driving organic revenue growth through innovation, marketing, and
expansion into new categories.
3) Asset Optimization:
• Managing working capital: Optimizing inventory management and receivables to improve cash flow.
• Investing in high-return projects: Focusing capital allocation on initiatives with strong potential for
return on investment.
• Leveraging existing assets: Maximizing the utilization of existing manufacturing facilities and
distribution networks.

4) Cash Flow Generation:

• Strong free cash flow conversion: Maintaining a disciplined approach to operating expenses and
capital expenditures.
• Dividend payments and share buybacks: Returning value to shareholders through consistent dividends
and potential share buybacks.
• Investing in growth: Balancing cash flow generation with strategic investments for future growth.

2. Technological Development:
Coca-Cola has developed six research and development centers around the world. The company focuses
heavily on research and development for innovative products. Social service is another segment covered in
technology development as they invest in startups and research in the universities. Apart from products,
Coca Cola value chain also invests in innovation in packaging, equipment, manufacturing, and marketing.

The Coca-Cola Company makes use of technological advancement for achieving economies of scale. The
presence across various global locations has allowed the Coca-Cola Company to develop a seamless
technological infrastructure for knowledge sharing. The Coca-Cola Company is also able to implement
processes of improvement internally .

Coca Cola Digital Transformation Strategies Report Overview

Coca-Cola’s digital transformation strategies are primarily focused on operational efficiency leveraging data
and technology, enhancing customer experience through both online and offline channels, and
strengthening its digital culture. The annual ICT spending of Coca-Cola was estimated at $925 million in
2022. A major share of this spending is earmarked for acquiring ICT services, software, and hardware from
vendors. Coca-Cola is a producer, distributor and marketer of non-alcoholic beverages, its product portfolio
comprises of sparkling beverages and a variety of still beverages including juices and juice drinks, waters,
enhanced waters, ready to drink teas and coffees, and energy and sports drinks.

The Coca-Cola Digital Transformation Strategies report will act as a reference point to understand a
company/competitor’s digital strategy. It will also help in understanding the digital preparedness of the
company against its peers. Information included in these reports are sourced from a mix of our very own
internal database and authentic secondary research links such as company’s annual report, presentations,
press releases etc. The report covers overview of the company, its digital transformation strategies,
technology focus areas, technology initiatives, technology introductions, investments, acquisitions, ICT
spending among others.
 Total ICT Spending 2022
ICT Spend by Function
ICT Spend by Channel
External ICT Spend by
Segment
Technology Theme Focus
$925 million
Data Center, Communications, Network, Application, End-User
Computing, Service Desk, and Management
Internal Development and Maintenance, Technology Vendors
(Direct), Local Resellers, Telcos, ICT Services Providers/Consulting
Firms, Specialist Outsourcers, and Systems integrators
ICT services, Software (including Cloud SaaS), Hardware (including
Cloud Iaas), Consulting, Network and communications, and Others
Artificial Intelligence, Big Data, and Cloud Computing

Digital Transformation Strategies

Coca-Cola is extensively leveraging AI in marketing to collect and analyze huge volumes of data on various
brands and products it offers. Across its vending machines Coca-Cola is applying big data analytics and AI
algorithms to interact with its customers. In social media, Coca-Cola uses AI algorithms to understand
when, where, and how its customers like to consume their products and derive popularity of individual
products by location.

3. HR Management:
Coca-Cola is a huge multinational company, hence a considerable number of employees. Coca Cola value
chain analysis shows that human resource management is delegated to the local offices for a more focused
approach. They hire and develop talent and help them learn and grow in a healthy environment. Coca-Cola
focuses on motivation and company culture engagement through remuneration packages, reward
packages, and an encouraging environment.

4. Procurement:
Coca-Cola procures raw materials from various suppliers. It focuses heavily on quality standards in every
step of procurement, from buying to delivering the product. Apart from this, Coca Cola value chain also
shows that the company procures the products internally too. So, a complex infrastructure is required for
running all these processes independently yet in harmony.

• COMPETENCIES
CORE COMPETENCIES

o Strong Brand Image

The company has successfully built a brand that is recognized and trusted worldwide. Coca Cola's red and
white logo is instantly recognizable, and the company has created a powerful
emotional connection with consumers. The brand is associated with happiness, joy,
and refreshment. Coca Cola has been able to cultivate this brand image through
consistent marketing and advertising efforts.

o Strong Financial Position:

Coca-Cola is a very profitable company with a strong balance sheet. This gives the
company the financial resources to invest in new products, marketing, and distribution.

o Strong Management Team:

Coca-Cola has a strong management team with a deep understanding of the beverage industry. This gives the
company the ability to make sound strategic decisions and execute on those decisions.
 o Cost Control:
Coca-Cola is a very efficient company. The company has a number of initiatives in place to control costs, which
helps it to maintain its profitability.

o Customer Loyalty
Customer is the biggest power for Coca-Cola. With such impressive products that tastes good and
overwhelming consistency of quality over a decade, the customers are attracted to Coca-Cola brand always.
Wide reach of audience will not only increase the brand awareness, but also help the company target more
customers. Coca-Cola has a phenomenal fan-following throughout the world which is unbeatable and can only
grow more.

DISTINCTIVE COMPETENCIES:

o Secret Recipe
The Coca-Cola recipe remains a closely guarded secret, fueling brand legend and consumer curiosity. This
unique taste profile, combined with decades of successful marketing, has created an iconic and irreplaceable
brand image.

o Global Presence and Distribution Network

Coca-Cola's franchised bottling system, spanning over 200
countries, is unparalleled in its reach and efficiency. This
network allows for deep market penetration, local
adaptation, and rapid product distribution, giving them a
significant edge over competitors.

o Marketing and Storytelling Magic

Coca-Cola excels at crafting emotionally resonant stories
and campaigns that connect with consumers across cultures
and generations. They've woven their brand into cultural
events and traditions, creating a powerful emotional
connection that goes beyond just selling a drink.

o Continuous Innovation
While holding onto its core assets, Coca-Cola doesn't shy away from innovation. They actively experiment with
new flavors, packaging formats, and distribution channels, constantly adapting to changing consumer
preferences and market trends.

o Skilled human resources

The development of skills and experiences is crucial for their employees to achieve their aspirations and reach
new career heights. By investing in one another, They unlock unparalleled potential and collectively build a
better shared future. At the heart of it lies their most valuable resource: Their people, whose incredible talents
drive them forward. Employees are encouraged to build their enterprise and functional skills to prepare for the
future. This is achieved through organized learning, collaborating with colleagues throughout the organization,
and undertaking developmental tasks that offer hands-on experiences. They supply a diverse range of digital
learning resources for both individual exploration at one’s own pace and group-based sessions to learn
collectively and from each other.
VRIO Framework:

Competitive
Valuable? Rare? Inimitable? Organized? Sustainability:
Advantage
Yes Yes Yes Yes
This is something Sustainable
Secret The differentiated flavor of
accessible to only a
1 Coca Cola gives the Not possible to Competitive
Recipe few people in the
entire Coca Cola
company an edge in terms imitate Advantage
of competition.
system
Yes Yes No Yes
Global it is an important
Presence Possessed by only a few Temporary
resource enabling
other firms in the soda Pepsi also has a
2 and Coca Cola to serve Competitive
industry and helps coca global network of
Distribution the global market
Cola manage its global distributors Advantage
Network and maintain a
reach.
global presence.
Yes No No Yes
Coca Cola’s marketing
expenses are around $4
it helps Coca Cola
billion which is far higher
manage a It’s imitable but it’s Competitive
than that of its
3 Marketing differentiated brand difficult to copy
image and connect
competitors. While
because of the
Parity
marketing skills can be
with its audience high expenses
matched matching the
better.
high level of expenses is
very difficult for any firm.
Yes Yes No Yes
it helps Coca Cola to
Continuous continuously Competitive
4 But Pepsi too places heavy Other firms invest
Innovation innovate and
focus on R&D also in the R&D
Parity
respond to changing
market situations.
Yes Yes Yes Yes
Skilled Coca Cola is ahead of all A high expenditure Sustainable
it helps Coca Cola the other companies in is involved in
5 Human Competitive
manage its large the soda industry in terms hiring, training,
Resources system efficiently of human resource and paying skilled Advantage
management. professionals.
Internal Factors Analysis Summary (IFAS)

Overall
Overall Weighted
# Internal Factors Explanation
Weight Score
Rate
Geographic The company's geographic divisions allow it to reach a wide range
S1 0.05 4 0.2
Divisions of customers around the world.

Business Type The business-type units allow the company to focus on its core
S2 0.025 3 0.075
Units brands and businesses.

Product-based divisions help Coca-Cola manage a portfolio of

Product based
S3 0.025 3 0.075 approximately 200 brands, while there are also various functional
divisions
groups to support business operations in multiple departments.

built on five core pillars: passion, integrity, leadership,

collaboration, and diversity. This translates into a global mindset
S4 Vibrant Culture 0.01 3 0.03
with a strong community focus, encouraging innovation and
continuous learning.
Coca-Cola operates a truly impressive and intricate supply chain,
Large Supply
S5 0.02 4 0.08 spanning the globe and involving numerous partners and
Chain
processes.
By constantly innovating, adapting, and connecting with
Strong consumers on an emotional level, Coca-Cola's marketing mix
S6 0.1 4 0.4
Marketing Mix remains a powerhouse, ensuring its place as a global beverage
leader.

Coca Cola is well-known for its fast and high-quality customer

High Quality
service. The company provides customer care, answers queries,
S7 Customer 0.02 3 0.06
and tries to solve any problem that might be unpleasant to the
Service
customers through its highly efficient call centers.
Strengths

Their 2023 cash flow from operations reached $11.6 billion,

Strong Financial demonstrating their ability to generate ample cash. heir 2023 cash
S8 0.05 4 0.2
Position flow from operations reached $11.6 billion, demonstrating their
ability to generate ample cash.

Coca-Cola has developed six research and development centers

Technological
S9 0.05 4 0.2 around the world. The company focuses heavily on research and
Advancement
development for innovative products.

They hire and develop talent and help them learn and grow in a
Skilled healthy environment. Coca-Cola focuses on motivation and
S10 0.05 3 0.15
Employees company culture engagement through remuneration packages,
reward packages, and an encouraging environment.

Coca-Cola's management team plays a crucial role in their

Strong continued success.The executive team boasts extensive experience
S11 Management 0.02 3 0.06 in the beverage industry, with James Quincey, the CEO, having
Team over 20 years at Coca-Cola. This provides deep understanding of
the market, challenges, and opportunities.

S12 Strong Brand 0.18 4 0.72 Coca-Cola's strong brand image, carefully nurtured through
Image consistent messaging, emotional storytelling, and positive
associations, plays a crucial role in its global success.
 Global Coca-Cola boasts an impressive global presence and distribution
Presence & network, reaching billions of consumers in over 200 countries and
S13 0.1 4 0.4
Distribution territories. This vast network is key to their success, making their
Network products readily available to a diverse audience.

The recipe itself holds significant mythical status, contributing to

Coca-Cola's brand mystique and fueling curiosity. Coca-Cola
S14 Secret Recipe 0.05 3 0.15
leverages the "secret recipe" in marketing campaigns, further
enhancing its brand image and allure.

Complex Matrix The matrix structure can be complex and bureaucratic, which can
W1 0.02 2 0.04
Structure make it difficult to make decisions quickly.

Duplication of There can be duplication of effort between the geographic

W2 0.01 2 0.02
Effort divisions and the business-type units.

Communication It can be difficult to communicate effectively across the different

W3 0.01 3 0.03
Challenges parts of the organization.

It's true that Coca-Cola has historically relied heavily on sugary

Reliance on drinks, like its flagship Coca-Cola Classic, for its revenue and
W4 0.02 2 0.04
Sugary Drinks success. This reliance has drawn criticism due to concerns about
the health impacts of sugary drinks, such as obesity and diabetes.

Coca-Cola's foray into food products has been relatively limited

Weaknesses

Limited Food compared to their beverage dominance. While they've dabbled in

W5 0.01 2 0.02
Products some initiatives, large-scale food diversification remains a prospect
rather than a reality.

Coca-Cola uses vast amounts of water for beverage production,

High Water
W6 0.05 2 0.1 bottling, and cleaning. Estimates suggest they use 2.7 liters of
Consumption
water for every 1 liter of beverage produced.

Coca-Cola is one of the world's largest producers of plastic

packaging, generating millions of tons of plastic waste annually.
Plastic waste pollutes oceans, landfills, and ecosystems, harming
W7 Plastic Waste 0.01 2 0.02
wildlife and contributing to microplastics in the food chain.Coca-
Cola has invested in recycling infrastructure and partnered with
various organizations to collect and recycle plastic waste.

Coordinating and optimizing such a vast network across various

Supply Chain
W8 0.02 4 0.08 countries and cultures requires constant innovation and
Complexity
collaboration.
Total 1 3.15 Rate is based on Fred David's score system