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Executive Summary of Coca-Cola

Farouk Almujahid
Seina Heights University
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COCA-COLA EXECUTIVE SUMMARY

Case Statement
Coca-Cola is facing a highly competitive industry in todays technological world. The

biggest challenge for the company is to struggle with the emerging competitors in all around the

world while maintaining the production capacity and cost at the same time.

Mission and Vision Evaluation

Coca-Cola is following and implementing its mission and vision statements effectively.

There is a need to focus more on mission statement for Coca-Cola because its mission statement

is not dealing with two factors including philosophy and employees. Mission statement should

also discuss these two parameters in order to make its strategy more successful in international

market. On the other hand, its vision is much effective and is following all the required

parameters.

Milestones

1. The largest publically traded beverage company since 1886.

2. Offering quality soft drinks in all around the world from a period of more than 128 years.
3. Committed to always participate in charitable events, human right acts, and programs that

are assisting the company to become more reputable and recognized in all around the

world.

External Assessment

Coca-Cola possess lot of opportunities in order to increase its sales and profit margins.

First of all, there is a room for the company to increase the sale of bottled water as the sales of

bottled water was increased to 5 times more faster in 2015 as compared to previous years. Sales

of energy drink will be increased to an amount of 21 billion per year by the end of 2017. Another
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most important factor to consider is Coca-Cola is not focusing on food products as Pepsi and

other companies are focusing.

Internal Assessment

Being the most valuable soft drink brand and surviving as the leader of all other beverage

companies. Coca-Cola is maintaining high market share as well. The company has secured a

strong financial position in international market.

Industry Analysis

From Porters five forces model, it is concluded that the company is facing high

competition in beverage industry. The most challenging factor here for Coca-Cola is to compete

its opponents like Pepsi. Pepsi is regarded the most power opponent of Coca-Cola today. Another

factor here to mention is the arrival of new competitors. Emerging new beverage companies are

also a challenge for Coca-Cola to face and maintain.

Financial Analysis

From financial analysis we can observe that the current ratio of Coca-Cola is 1.09, with

an average industry score of 1.12. While its quick ratio is 0.77 with an industry average of 0.80.

These two ratios briefly shows that how well Coca-Cola is managing its short term as well as

long term liabilities and obligations. The current ratio of Coca-Cola concludes that company has

maintained more current assets as compared to its liabilities.

Competitive Strategies

The first alternative strategy proposed is to add some new but healthy beverage products

by the company for its consumers. As todays consumer needs healthy soft drinks that would not
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affect their health, so company should focus to add healthy drinks by improving the quality of

drinks. The second strategy is to add best flavored food products in order to make the companys

position more strong in international market. The third and last strategy is to focus more on

younger generation of todays world. As younger generation always demands for change and

excitement so Coca-Cola should focus to spend more budget in order to increase its popularity

among younger generation.

Recommended Strategy

When Coca Cola implements their new strategy of healthier drink choices the company

must address the changes of the organizational structure of their company and additional staffing

needs and concerns. When Coca-Cola introduces the new product, decisions must rely heavily on

quality control, cost control, inventory control, and creating an operations plan which needs to be

restricted to meet their objectives but also somewhat unrestricted to allow for flexibility and

creativity.

This strategy will help Coca-Cola to survive more confidently in highly competitive

market of todays world. This strategy will help the company to improve its worth as being the

most powerful and reliable leader of all the beverage companies.

Ethical and Social Responsibility Dimensions of the Recommended Strategy

My recommended strategy of quality control will surely help Coca-Cola to fulfil its social

and ethical responsibility. Thinking about the health of the consumers is a part of its social and

ethical responsibility.
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Implementation Plan

Our implementation plan for Coca-Cola will go through different scenarios. The

management can face some difficulties while implementing the proposed strategy. So avoiding

this issue company will have to educate very well its all employees at one desk to implement its

strategy. The first implementation plan will work through increasing the production units to

value of 40,000. The employees will receive $150 as a bonus after year implementing this plan.

Moreover, production departments will work in two shifts that will increase the companys

revenue. It will boost up the beverage revenue to a value of 15% by the end of the year.

Next implementation plan will be done through the operations and human resource

department where the company will be committed to produce healthy drinks for its consumers.

Additional capital will be required in order to implement the overall strategy. The overall cost

cannot be determined at this time because it depends upon the companys overall budget to

improve the quality of its beverage products.