Coca Cola Company

Case study
Strategic
Management
Prepared by:
Afsheen Qureshi 15893
Muhammad Wahab
16798
Sadia Gul 16901
Farah Irfan 16301

Introduction
Coca cola Company was founded in Atlanta Georgia on
May 8, 1886.
Coca cola company is the worlds leading manufacturer,
marketer and distributor of non alcoholic beverage and
syrups etc.
Coca Cola produce nearly 400 brands consisting of 3000
of beverage products including;
Water, Juices, sport drinks, energy drinks, tea, coffee etc

Vision Statement (Current)

Coca Colas Vision Statement is:
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 peoples desire 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.

Vision Statement (Proposed)

Coca-Colas vision is to
inspire moments of
happiness while
refreshing the world.

Mission Statement (Current)

To refresh the world
To inspire moments of optimism and
happiness
To create value and make a
difference

Components & Characteristics

COMPONENT

YES/NO

Customers

NO

Product or Services

NO

Markets

YES

Technology

NO

Concern for Survival,

growth & profitability

YES

TO REFRESH THE
WORLD

Philosophy

YES

TO CREATE VALUE
AND MAKE A
DIFFERENCE

Self Concept

YES

TO INSPIRE MOMENTS
OF OPTIMISM AND
HAPPINESS

Concern for Public

Image

NO

WORLD

Mission Statement (Proposed)

Coca cola is committed to refresh the
world(5) with a mission to bring quality
products for our valuable consumers
around the world(1)(2)(3). Through
modern technology(4), brand equity(7)
and our dedicated employees(9) we strive
to be responsible citizens(8), while
maximizing long-term return to
shareowners(6).

EFE Matrix
OPPORTUNITIES
WEIGHTAGE
More Health Conscious Customers (inc in
demand for energy drinks)
0.12
Expected growth in global beverage industry
0.1
Snacks or food business growth
0.08
Acquisitions
0.07
increasing demand for mineral water
0.07
Plant based recyclable packaging
0.05

THREATS
Government policies for fight against obesity
0.1
Increasing preference for non carbonated healthy
drinks
0.09
High Unemployment
0.08
Cost conscious Consumers
0.07
Seasonality
0.06
Competition
0.06
unstable economic conditions in foreign
countries
0.05

Total

RANKING

WEIGHTED
SCORE

3
3
1
4
2
4

0.36
0.3
0.08
0.28
0.14
0.2

0.2

3
4
4
2
3

0.27
0.32
0.28
0.12
0.18

0.15

2.88

IFE Matrix
KEY INTERNAL FACTORS

WEIGHTED
WEIGHTS RATING
SCORE

STRENGTHS

Largest beverage manufacturers globally

Owns four of the worlds top five nonalcoholic beverage
brands including Coca-Cola, Diet Coke, Sprite and Fanta

0.12

0.48

0.1

0.4

Broad Product portfolio

0.09

0.36

Acquired CCE bottlers in North America

Coca-Cola sells 1.7 Billion servings of beverages per day in
over 200 countries

0.08

0.32

0.07

0.21

Increase in Cashflows up by 16% over 2009

0.05

0.15

WEAKNESSES
Does not hold a snacks segment

0.15

0.15

0.1

0.2

No strong water brand or the leading sports drink

0.09

0.18

Additional $7.9 billion in debt for acquiring CCE

0.08

0.16

Interest expense increased $733 million from $355 million

0.07

0.14

Weak performance in Europe achieving no growth in 2010

Total

2.75

CPM
COKE
CRITICAL
SUCCESS
FACTORS WEIGHTS RATING
Market Share
0.15
4
Customer
Loyalty
0.12
4
Financial
Position
0.12
3
Global
Expansion
0.1
4
Advertising
0.1
4
Product
Quality
0.09
4
Brand Equity
0.08
4
Price
0.07
4
Distribution
0.07
4
Production
Capacity
0.05
4
Diversified
portfolio
0.05
3

DR PEPPER

WEIGHTED
SCORE

PEPSI

WEIGHTED
WEIGHTED
RATING
SCORE
RATING
SCORE

0.6

0.3

0.45

0.48

0.36

0.36

0.36

0.36

0.48

0.4

0.2

0.4

0.4

0.3

0.4

0.36

0.27

0.36

0.32

0.16

0.24

0.28

0.21

0.28

0.28

0.21

0.28

0.2

0.1

0.15

0.15

0.1

0.2

GENERIC STRATEGY

STRATEGIC TARGET

STRATEGIC ADVANTAGE
Uniqueness perceived by the
Low Cost Position
Customer

Industry
wide

Particular
Segment
only

DIFFERENTIATION

COST LEADERSHIP

Spending enormous amounts

of money in advertising to
differentiate and create a
unique image for their
products.
It provides different products
to the customers and has been
very much successful in
gaining a leading position
among the competitors.

Coca-Cola is already well

established around the world,
they do not need to apply an
overall cost leadership strategy.
The price of their products do
not need to be cheaper than
their competitors in order to
gain an advantage.

FOCUS
They also do not use a Focus strategy, because Coca-Cola offers many
different beverages to market to a broad scope of people.

SWOT Matrix
STRENGTHS
1. Largest beverage
manufacturers global.
2. Acquired bottlers in
North America
3. Top brands

WEAKNESSES
1. No growth in Europe
2. No snack segment
3. Weak water brands

OPPORTUNITIES
1. Health consciousness
2. Acquisitions
3. Growth in food
business
4. Growth in beverage
industry

SO:
- Variety of healthy juices
& drinks (S1,O1)
-signing contracts with
others for bottle making
(S2,O4)

WO:
-Acquisitions in Europe.
(W1, O2)
-Start snacks business
(W2, O3)

THREATS
1. Preference for non
carbonated drinks
2. Seasonality
3. Govt. policies against

ST:
- Ventures with top hot
beverage companies (S3,
T2)
- New products in non

WT:
- Diversify into snacks
market (W2, T3)
- Promote water brands
(W3, T3)

FINANCIAL
POSITION

SPACE MATRIX
RATINGS

EPS

P/E RATIO

NET INCOME

WC

LEVERAGE

Average

COMPETITIVE
POSITION

4.8

RATINGS

STABILITY
POSITION

RATINGS

PRICE ELASTICITY

-5

RATE OF INFLATION

-6

COMPETITIVE PRESSURE

-1

ENTRY BARRIERS

-3

Average

INDUSTRY
POSITION

-3.75

RATINGS

MARKET SHARE

-1

GROWTH POTENTIAL

PRODUCT QUALITY

-2

PROFIT POTENTIAL

CUSTOMER LOYALTY

-2

PRODUCTIVITY

CAPACITY UTILIZATION

-3

FINANCIAL STABILITY

Average

-2

Average

5.25

SPACE MATRIX

+7

FP

+6
+5

Conservative

Aggressive

+4
+3
+2

CP

+1
-7

-6

-5

-4

-3

-2

-1

-1

+1

+2

+3

+4

+5

+6

+7

IP

-2

Defensive

-3

Competitive

-4
-5
-6

X AXIS

5.25+(-2)

3.25

SP -7

Y AXIS

4.8+(-3.75)

1.05

BCG MATRIX

GRAND STRATEGY MATRIX

3..QUADRANT II
No Coca cola product lies in this quadrant

QUADRANT I
1.Market penetration for Coke zero in North america and new product
development .
2.Market penetration for Eurasia like coke studio
3.Market penetration in Pacific for developed products like NARTD( Japan),
minute maid palpy ,Coke studio launching in other countries too. Product
development for ready to drink tea in other markets like China , India ,
Pakistan.
4. Market penetration in Latin america by increasing promotion of Coke and
do aggressive market development for falvored water and Cepita juice in other
countries of Latin America too.

QUADRANT IV
Quadrant III
Related diversification like offering bottling services to other
beverage companies

1.Joint ventures with Food chains like KFC , Pizza hut, 14th Street in Europe
2.Unrelated diversification can be coke studio in Europe launching their own
music albums.