GROUP PROJECT ON STRATEGIC MANAGEMENT TOPIC:

OBJECTIVES
To know the core values, vision and mission To understand the internal and external environment in which Coca Cola operates. To understand the future prospects of different products To decipher whether Coca Cola strikes a balance between its profits and social responsibilities. To identify and characterize the different growth strategies used by Coca Cola

To know about the Coca-Cola Companys strategies management process

COMPANY OVERVIEW
A leading manufacturer, distributor and marketer of non-alcoholic beverage concentrates and syrups The company owns or licenses more than 500 brands It operates in more than 200 countries The company is headquartered in Atlanta, Georgia
HISTORY OF COCA COLA

Coca-Cola was first introduced by John Smyth Pemberton He first distributed the product by carrying it in a jug down the street to Jacobs Pharmacy and customers bought the drink for five cents at the soda fountain

VISION
People: Be a great place to work where people are inspired to be the best they can be. Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs. Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value. Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities. Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities Productivity: Be a highly effective, lean and fast-moving organization.

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

VALUES
Leadership: The courage to shape a better future Collaboration: Leverage collective genius Integrity: Be real Accountability: If it is to be, it's up to me Passion: Committed in heart and mind Diversity: As inclusive as our brands Quality: What we do, we do well

EXTERNAL ENVIRONMENT
POLITICAL ANALYSIS
DEMOGRAPHIC ANALYSIS

ECONOMIC ANALYSIS PESTLE ANALYSIS

LEGAL ANALYSIS
TECHNOLOGY ANLYSIS

SOCIOCULTURAL ANALYSIS

EXTERNAL ENVIRONMENT
Changes in laws and regulations Changes in the non-alcoholic business environment Political conditions including civil unrest, government changes Their ability to penetrate developing and emerging markets, which also depends on economic and political conditions After the attacks on September 11, 2001, Coca Cola sales were down. Consumers are now resuming their normal habits The Federal Reserve cut the interest rate to recover from recession & this excited consumer demand . CocaCola borrowed money for investing in other products The non-alcoholic beverage industry has high sales in countries outside the U.S. Many U.S. Citizens are practicing healthier lifestyles. Many are switching to bottled water and diet colas instead of beer and other alcoholic beverages. Time management has increased .The need for bottled water and other more convenient and healthy products are in important in the average day-to-day life.

POLITICAL ANALYSIS

ECONOMIC ANALYSIS

SOCIOCULTURAL ANALYSIS

EXTERNAL ENVIRONMENT
The new technology of internet and television which use special effects for advertising through media. Introduction of cans and plastic bottles have increased sales for coca-cola as these are easier to carry and you can bin them once used. There has been introduction of new machineries all the time. The Wakefield factory has the technology to produce cans of coca-cola faster than bullets from a machine gun.

Soft drink Interbrand competition act of 1980 secured the right of concentrate
Producers (cps) to grant exclusive territories to bottlers The company was granted a trademark for the name coke in 1945. Pressure from the scientific community for the FDA to enforce caffeine labels warning of the dangers of caffeine consumption Obstacles in international operations included regulations, price controls, advertising restrictions and lack of infrastructure

Educated people belonging to upper and middle-income groups also commonly use Coca-Cola. Major emphasis of Coca-Cola is to attract teenagers. Diet Coca-Cola offered by Company is Very popular among diabetic patients. Consumers from the ages of 37 to 55 are also increasingly concerned with nutrition.

TECHNOLOGY ANALYSIS

LEGAL ANALYSIS

DEMOGRAPHIC ANALYSIS

COMPETITIVE FORCES
BARRIERS TO ENTRY SUPPLIER BARGAINING POWER INTENSITY OF COMPETITION

CUSTOMER BARGAINING POWER

COMPETITIVE FORCES

THREAT OF SUBSTITUTES

SWOT ANALYSIS

WEAKNESS

STRENGTHS

Negative publicity Low profits in strong area Decline in cash flow Supply is restricted

Global presence Many variants. Brand awareness Logo famous Strong marketing and advertising

THREATS

OPPORTUNITIES
Aggressive acquisitions Increase in demand for bottled water Growth of Hispanics

Intense competition Slowdown in rural Demand Negative health effect

GROWTH STRATEGY
CORPORATE LEVEL STRATEGY FORWARD INTEGRATION STRATEGY JOINT VENTURES MARKET DEVELOPMENT PRODUCT DEVELOPMENT

BCG MATRIX OF COCA-COLA

BCG PRODUCT LIFE CYCLE

CORPORATE SOCIAL RESPONSIBILITY

The coca-cola system in Vietnam and the local peoples committee launched a new community water initiative in December 2006. The company continued to champion various initiatives such as rainwater harvesting, restoring groundwater resources, going in for sustainable packaging and recycling, and serving the communities where it operated. Canadas first-ever live positively stakeholder awareness campaign Coca-cola India has been awarded the social and corporate governance award for best practices in corporate social responsibility 2009.

RECOMMENDATIONS

For the products like diet coke, pulpy orange and kinlely soda it better to stop manufacturing these products
Invest profits for future growth and for earning more of market share and profits

Invest heavily into products like fanta and sprite in order to push the products to star status.
For coca-cola -cost management, product differentiation and marketing have become more important as growth slows and market share becomes the key determinant of profitability The organization has to carefully study external environment moves and accordingly devise strategies to gain competitive advantage

Coca cola has to make every possible move to ensure that its image remains that of an FMCG giant that would never compromise on the quality front