1.

0 Background of the Agency 

The Coca-Cola company is a beverage company. The Company owns or licenses and markets
non-alcoholic beverages, mainly spirituous beverages and a selection of still beverages, such as
water, flavored and extra water, fruit juices and juices, ready-made beverages and coffee, sports
drinks, dairy and soft drinks. Parts of the company are Europe, the Middle East and
Africa; Hispanic America; North America; Pacific Asia; Bottling investments and
companies. The company owns and markets a number of non-alcoholic sparkling brands,
including Coca-Cola, Diet Coke, Fanta and Sprite. The company owns or licenses and markets
over 500 non-alcoholic brands. The company markets, manufactures and sells beverage
concentrations, referred to as beverage powders, and syrups, including spring syrup and finished
sparkling wine and still beverages.
 
 
 
 
 
Coca-Cola extends to customers through the largest beverage distribution system in the world,
consisting of companies owned or managed bottling and distribution, as well as independently
owned bottling, distributors, wholesalers and retailers. The company is a world-class ad, known
for many popular advertising campaigns spanning many decades. It continues to keep its brand
foremost in the minds of consumers with huge investments in advertising and spends about $ 4
billion a year in recent years.
 
 
 
Coca-Cola is faced with two main areas: changing consumer tastes towards healthier drinks and
saturated products in mature markets. Expanding its self-described “consumer-focused” portfolio
- quickly expanding market-to-market profits and embracing experimentation, testing and
learning approaches - is how the company plans to grow.
 
 
2.0 Analysis of external planning environment 
 
 
 
 
3.1 Five analyzers
Today, external environmental analysis of business activity takes a very important place in the
development of all institutions. This is due to the fact that the modern external environment of
companies is characterized by extreme power, complexity and uncertainty.
 
 
 
 
 
 
 
 
 
3.2 Analysis of the business environment with tools
 
 
Porter Five Forces of Coca Cola
3.2a: Threats of new entry
 
Coca-Cola spends tremendous money on advertising products and marketing goals. In 2013,
Coca-Cola spent $ 3.37 billion on advertising, representing 7% of total revenue in 2013. The
current market is in a stable position, making new competitors difficult to expand visibly. Coca-
Cola is promoted as a lifestyle and investment of Coca-Cola in advertising and marketing
throughout the existence of Coca-Cola has attracted a very popular and strong brand. This has a
negative impact on potential competitors, their entrance into the soft drink industry is almost
impracticable. (Bailey, Advertising is the Key Strategy for Coca-Cola Growth, 2014)
 
3.2b: competitive competition
 
Coca-Cola's main competitor is PepsiCo. Coca-Cola and PepsiCo have been the two key players
in the non-alcoholic beverage industry. Of all soft drink companies, Coca-Cola accounts for 40%
of the industry and PepsiCo 20%. (Maverick, nd)
 
 
 
3.2c: Threat of non-standard
 
The soft drink industry has an aggressive environment, there is a wide range of substitutes that
are presented to consumers such as tea, water, juice, coffee, other cocoa brands ... Today,
consumers' health concerns increase awareness of Coca-Cola products, making water of bottles,
sports drinks and juice sought after. However, most substitutes are weak market players
compared to Coca-Cola because of the huge advertising, brand loyalty and the supply offered by
Coca-Cola. To achieve these goals and make loyal customers, companies spend enormous
money on advertising and marketing. (Data Research Department, 2015)
 
3.2d: Buyer's power
 
The most important buyers of the soft drinks industry are restaurants / fast food chains, dining
rooms, grocery stores. The goal of distributing soft drinks to these buyers is resale. Buyers have
high bargaining power because of the large quantity they buy, the availability of a large choice of
drinks causes a contraction in unhealthy soft drinks. There is a negligible switching cost. (Bailey,
why is growth slow in the non-alcoholic beverage industry? 2014)
 
3.2e: Power supplier
 
Coca-Cola could not live without its suppliers. Coca-Cola suppliers are responsible for
joint value creation efforts, packaging organizations, sustainable sources, annual inventory
conference, and supplier guidance. (The Coca-Cola Company, nd) Coca-Cola suppliers offer
products such as products, services, ingredients, packaging and machinery. Suppliers have low
contracting power. Nevertheless, rising prices for the raw materials have a direct effect on Coca-
Cola's profits. Basic products or raw materials are readily available to all manufacturers, the
manufacturers also have a low cost which provides an opportunity to switch to other
suppliers. (The Coca-Cola Company, nd)
 
 
 
PESTLE Analysis of Coca Cola
politically
 
Coca-Cola is heavily involved in political lobbyists, as stated on their website. (Coca-Cola,
2017). Earlier in 2017, Donald Trump revealed to the United States that he had a tendency for
Coke, where his office had a special button to order Coca-Cola from (Oppenheim, 2017). This,
together with the US president constantly encouraging the success of American brands, suggests
that Coca-Cola has the superiority of its management countries.
 
economic
 
               Coca Cola revenues have exceeded Wall Street's expectations as more healthy drinks
are in short supply (Thomas, 2017). Revenue is said to be $ 9,702 billion as opposed to a $ 9,652
billion forecast, with earnings per share adjusted 59 cents compared to a 57 cents estimate
(Thomas, 2017). This is beneficial to the company in light of the fact that analysts predict that
the global recession in the coming years will be possible due to the uncertainty of Brexit and the
uncertainty over Trump's US administration (de la Mere, 2017).
 
 
society Culture
 
               The latest figures indicate that the United States is the most overweight country in the
world where a large proportion of its population is classified as obese, due to easy access and
high speed advertising (Bedard, 2017). In July 2017, Coca Cola announced that they would
replace Coke Zero with a new non-sugary drink in the United States, with the organization
exploring and promoting potentially healthier and sugarless versions of the original Coca-Cola,
perhaps as an attempt to prevent the prevention of obesity. , 2017).
 
 
technical
 
               Coca Cola is now considered a pioneer in adopting the latest technology where the
organization uses a unique program called the 'Bridge' program aimed at using new technologies
within the company faster than competitors (Forbes, 2017a).
 
 
Environment
 
               Although Coca Cola sells more than 100 billion disposable plastic bottles a year, the
association intends to increase its recycled plastic use to just 50%, indicating a lack of ambition
from the association to address one of the biggest environmental challenges presented plastic
pollution in the ocean (Sauven, 2017).
 
 
legal
 
               With increased pressure on food and beverage manufacturers to control the ingredients
of their products and ensure that products are free of excessive amounts of harmful substances, a
growing number of multinational companies have found legal disputes. Most recently, Coca Cola
has come to an end in a lawsuit in America where two prominent priests have sued both Coca
Cola and the American Beverage Association with the claim that carbonated beverage
manufacturers are deceiving consumers about the health risks associated with sugar-sweetened
drinks (Associated Press) , 2017).
 
 
Competitor analysis
PepsiCo is now a strong leader worldwide in the food and beverage industry. With its growth, it
has stuck to its mission and goals while at the same time becoming a dominant force within the
United States as well as abroad. PepsiCo, known around the world for quality products and
customer care, should not make major strategic changes to its plan. But as in all business
situations, there are areas that PepsiCo can add.
 
 
 
 
 
 
 
The most dangerous territory of PepsiCo is to expand their market and market areas. Coca-Cola
should also look at its aging tools, as it is also a dangerous sector that PepsiCo can
overcome. PepsiCo has its greatest development in human sustainability. In business operations,
PepsiCo can also cut its spending, but this is not that important for Coca-Cola in the
competition. (Widhaningrat, 2012)
 
 
 
4.0 Corporate Policy Proposals
 
 
4.1 Theories of corporate policy
The companies' policies take on the entire strategic direction of the company. It is a "big picture"
overview of the organization and involves deciding on which, product or service market to
compete and in which geographical areas to operate.
 
According to Wheelen et al. (2017), all business level strategies can be grouped into three groups
of Stability Plans, Growth / Expansion Strategy and Retraining Strategies.
 
According to Dessler (2016), there are four corporate strategies that include diversity, vertical
integration, integration and geographical expansion policies.
 
 
 
 
 
 
 
 
 
4.2 Relevant corporate policies at Coca Cola level
At the corporate level, it is proposed that the Coca-Cola Company's policy revolve around two
main axes: vertical integration with the acquisition of bottling companies and the horizontal
distribution of its product range by developing new products. These two components of Coca-
Cola's strategy will reflect new policies that evolve following changes in market and industry
conditions. The reason for choosing this policy is that the company has implemented vertical
integration by purchasing several independent bottling companies that were previously managed
as a franchise and formed Coca-Cola Enterprises in 1986 (Coca-Cola, 2009) which subsequently
bought many bottling companies for all over the world. In 2010, the Coca-Cola Company
continued to buy additional Coca-Cola business interests, acquiring more than 90% of the North
American market (ChangeLab Solutions, 2012). Due to the increase in the product line and in
view of the high transport costs of operating with independent bottlers, Coca-Cola is proposed to
continue to integrate forward integration to reduce costs and gain greater control over its
production and distribution processes (IbisWorld, 2015a).
 
              Most importantly, it is proposed to approve the acquisition policy based on the
successful acquisitions of the company in the past. The growth of Coca-Cola is driven by both
acquisitions and internal development of new products. The company has acquired brands such
as Minute Maid, Odwalla, Honest Tea and Innocent and developed strategic partnerships with
existing brands such as its acquisition of a 16.7% stake in the energy beverage maker Monster
Beverage Corporation (Coca-Cola, 2015c).
 
 
 
 
 
 
 
 
 
3.0 Suggestions for Business Directory Methods -level 
5.1 Theories of Business Plans
 
 
 
 
If we look specifically at the choice of the two frameworks, then Porter's leadership costs against
Ansoff's market planning a few similar to them. They both aim to increase market share but with
only a different approach. Although a cost leader usually involves pushing for larger volumes
and lowering prices, market research focuses on selling to existing customers or finding new
customers for the same products. Both methods are the least risky in both frameworks where the
change is usually in marketing, by reducing internal costs or changing production methods.
 
There is also a similarity between the Porter differentiation strategy where "the company
develops a product or service that offers unique features ..." and Ansoff's product development
plan where the company "retains existing products that have new and different features so that
will improve the success of the project. “As we both see product development and both aim to be
a unique offer for the customer where the company can charge higher prices. The difference
between these two is that it is not specifically stated whether products within the inclusion policy
are new or can be new features as in Ansoff's policy. If the focus is on gaining higher market
share, the similarity between Porter's and Ansoff's policy of separation is a breakthrough. Both
argue that the use of marketing technology is one way of offering unique services and that
customer retention is a major part of gaining market share.
One final conclusion when looking at frame two is that it seems to me that Porter has a more
external view of the company within the industry while Ansoff is both external and internal at
the same time. Ansoff saw the company and the product in relation to the market and seems to
me to be a more flexible strategy than Porter who looks at the market and how the company is
best located within this space. In many ways, Porter's general policy seems to be more rigid as he
says that it is not possible to mix, but as Ansoff's policy seems to be more flexible as he says it
will be a healthy signal if companies think of these methods at the same time.
 
 
 
5.2 Appropriate Business Plans for IBM
 
 
Regarding Porter's general policy, the Coca-Cola Company is proposed to operate on a broad
market as it has diversified its product offering, not including carbonated soft drinks such as fruit
juice, tea and coffee, bottled water, etc. In addition, the Coca-Cola company is also proposed to
achieve both packaging, marketing, brand image and cost leadership distinctions due to efficient
distribution and bottling networks, as well as economies of scale.
 
The Coca-Cola Company's marketing strategy corresponds to an external perspective. Indeed, it
has expanded its product range following changes in the external environment to seize attractive
opportunities in the market such as demand for healthier products and the development of energy
drinks. Given that consumer tastes are changing from traditional carbonated soft drinks to
healthier and lower calories, the company is proposing to continue developing its product range
by adding bottled water, fruit juice and smoothies, while also leveraging its economies of
scale. In addition, it is recommended that the overall growth of the company is in line with an
external perspective given that it has acquired brands that were able to develop with growing
market share and thus take control of the competition (such as its acquisition of the Innocent
smoothie brand in 2010 (Lucas, 2013) , as well as developing partnerships in new products such
as Monster Energy Drink Label (McGrath, 2014).
 
 
 
 
 
4.0 Result 
This report has shown that business-level and corporate policies are crucial to the development
of sustainable organizations. As discussed above, the long-term success of a company depends
on the efforts of diverse stakeholders to formulate a policy that best serves the interests of the
company. Coca-Cola is a well-respected company globally and has become the concept of
strategic management in an ever-growing market. Therefore, the formulation of an effective
strategy adequately ignores the steps a company needs to take to achieve its goal. In addition,
business and corporate policies offer business solutions, such as how to create and capture value
in a particular product market. After reviewing the Coca-Cola Company's current external and
internal environment in the soft drink industry, it appears necessary for the Coca-Cola Company
to take action as carbonated beverage sales are falling due to growing awareness of the health
associated with the consumption of soft drinks.