Strategic Management

Coca-Cola Co.

PRESENTED BY:

MAHA SADDIQUESAAD ALIHASINA SADIQASAD SIDDIQUE ANAM MUSTAFA

Overview1. Company Overview

A brief history about Coca Cola

Existing Mission and Vision Statement

Existing Objectives and Strategies

New Mission and Vision Statement

2. External Audit

Industry Analysis

Current Opportunities and Threats

CPM Matrix

EFE Matrix

3. Internal Assessment

Strengths and Weaknesses

IFE Matrix

4. Strategy Formation SWOT matrix

Space Matrix

BCG Matrix

Grand Strategy Matrix

Matrix Analysis

QSPM Matrix

5. Strategic Plan for the Future

Strategies

6. Implementation

The Coca-Cola Bottle from the Beginning,

to Present

Vision Statement

Existing vision:

Be the outstanding beverage company leading the market,

inspiring people, adding value through excellence.

Proposed vision:

• We are dedicated to upholding standards, while maintaining the leadership

position in the beverages category when delivering superior customer

service in a highly efficient and profitable manner.

Mission Statement

Existing:

Be the outstanding beverage company leading the market, inspiring

people, adding value through excellence.Proposed:

Our mission is to bring consumers quality refreshments that anticipate and

satisfy their desires and needs Through modern technology and inspiring

employees to be the best they can be we know we can continue to provide the

best products on the market.

Our GoalsPeople and Organizational Leadership

• Commercial Leadership

• Supply Chain

• Operational Excellence

• Sustainability

Porter's five forces

1.Threat of new entrants

2. Rivalry among existing competitors

3. The bargaining power of buyers

4. The bargaining power of suppliers

5. Threat of substitute product

1. Vertical Integration

Backward integration

2. Diversification Strategy

• Related diversification

3. Intensive strategies

• Market penetration:

• Product development

4. Strategic Alliance

5. Global Strategy

Current Strategies Of Coca Cola

1. Focused Low Cost:

Achieving economies of scale in the mass production

Long learning, knowledge and experience in production and process

Sharing of research and development, advertising and promotions

Efficiency and effectiveness in manufacturing and distribution network.

Broad Differentiation

Offering of wide range of its drink products around 230

High brand image and recognition

Packaging and bottling, the use of contoured shape bottle

Porter’s Generic Strategies

CPM – Competitive Profile Matrix

SWOT Analysis

Internal Factor Evaluation Weighting Rate Weighted

Score

Opportunities

Bottled water consumption growth 0.1 4 0.4

Increasing demand for healthy food and

beverages

0.15 3 0.45

Enter into new market 0.10 3 0.3

Availability of Products 0.05 4 0.2

Threats

Changes in consumer tastes 0.05 4 0.2

Legal requirements to disclose negative

information on product labels

0.10 1 0.1

Local Manufacturers

0.15 3 0.45

Rumors of Coke being Un-Healthy 0.10 3 0.3

Competition from PepsiCo 0.1 4 0.4

Saturated carbonated drinks market 0.10 4 0.4

Total 1.00 3.2

External Factor Evaluation Weighting Rate Weighted Score

Strengths

Financially strong

0.1 4 0.4

Loyal Customers 0.05 4 0.2

Most extensive beverage distribution

channel

0.1 3 0.3

Hi tech & up-to date Technology 0.1 4 0.4

Sustained Quality & Brand name 0.10 4 0.4

Working Environment 0.1 4 0.4

Weaknesses

Less Focus on Small Cities 0.05 4 0.2

Utilization of Resources 0.05 4 0.2

Significant focus on carbonated

drinks

0.1 3 0.3

Undiversified product portfolio 0.15 3 0.45

Brand failures 0.1 3 0.3

Total 1.00 3.55

GRAND STRATEGY MATRIX

BCG Matrix

Revenues of Pepsi were 85 Billion in 2013. And Pepsi is a market leader in Pakistan.

Products Revenue

$

%age of

Revenues

Profits

$

%age of

Profits

Relative

Market Share

Industry

Growth Ratio

Coca Cola 50 billion --- 280 million --- 0.58 7%

ANALYSIS ON BCG MATRIX

SPACE Matrix

SPACE Matrix

X-axis: -1.4 + 5.0 = 3.6

Y-axis: 5.4 + -3.2 = 2.2; Coordinate: (3.6, 2.2)

Opportunities

1: Bottled water

consumption growth

2: Increasing demand for

healthy food and

beverages

3: Enter into new market

4: Availability of

Products

Threats

1: Changes in consumer

tastes

2: Legal requirements to

disclose negative

information on product

labels

3: Competition from

PepsiCo.

4: Saturated carbonated

drinks market

5: Local Manufacturers

6: Rumors of Coke being

Un-Healthy

Strengths 1: Financially strong 2: Loyal Customers 3: Most extensive

beverage distribution channel 4: Hi tech & up-to date

Technology 5: Sustained Quality & Brand name 6: Working Environment

SO

1.Increasing the

marketing campaigns to

capture the maximum

share in the emerging

economies S1,O2

2. Making alliances with

emerging fast-food

chains S4,O2

3. Entering in rural areas

which will ensure the

availability of the

product in the whole

country. S2,04

ST

1-Market penetration

through which further

efforts will be made to

increase market share of

products.S1,T4

2-Making the unrelated

diversification such as

entering in snacks

division.S1T1

3-Increasing the marketing

budget in order to fight

with competitor. S1,T3

4-Introducing reward

schemes to make further

growth.S3,T5

Weaknesses

1: Less Focus on Small

Cities

2: Utilization of

Resources

3: Brand failures

4: Undiversified

product portfolio

5: Significant focus on

carbonated drinks

WO

1. Allocation of budget

on failed brands to cater

new markets w3, 03

2. Market the products to

rural areas in all

countries like the way its

marketed in Pakistan

w1,O4

WT

1-Product development by

using best market

techniques in order to cater

rumors w4,T6

2-market penetration in

rural areas through which

loyalty will be increased in

order to beat the local

manufacturers.w1,T5

TOWS MATRIX

Quantitative strategic planning matrix

Key Internal Factors Weight

Increasing the advertisement / Marketing Budget

Introducing Snacks

Strengths AS

TAS AS TAS

1: Financially strong 0.1 3 0.3 2 0.2

2: Loyal Customers 0.05 2 0.1 4 0.2

3: Most extensive beverage distribution

channel

0.1 2 0.2 3 0.3

4: Hi tech & up-to date Technology 0.1 2 0.2 3 0.3

5: Sustained Quality & Brand name 0.1 3 0.3 2 0.2

6: Working Environment 0.1 --- --- --- ---

Weaknesses

1: Less Focus on Small Cities 0.05 2 0.10 1 0.05

2: Utilization of Resources 0.05 --- --- --- ---

3: Brand failures 0.1 --- --- --- ---

4: Undiversified product portfolio 0.15 2 0.3 3 0.45

5: Significant focus on carbonated drinks 0.1 4 0.4 3 0.3

SUBTOTAL 1.00 1.9 2

Key External Factors Weight

Acquire KKD and GLDC

Produce new diet drinks that have healthier sugar substitutes

Opportunities AS TAS AS TAS

1: Bottled water consumption growth 0.1 --- --- --- ---

2: Increasing demand for healthy food and beverages

0.15 2 0.30 2 0.3

3: Enter into new market 0.10 2 0.2 4 0.4

4: Availability of Products 0.05 4 0.2 3 0.15

Threats

1: Changes in consumer tastes 0.05 --- --- --- ---

2: Legal requirements to disclose negative information on product labels

0.10 --- --- --- ---

3: Competition from PepsiCo. 0.15 4 0.6 3 0.45

4: Saturated carbonated drinks market 0.10 --- --- --- ---

5: Local Manufacturers 0.1 2 0.2 3 0.3

6: Rumors of Coke being Un-Healthy 0.10 3 0.3 2 0.2

SUB TOTAL 1.00 1.8 1.8

SUM TOTAL ATTRACTIVENESS SCORE 3.7 3.8

IMPLEMENTATION OF STRATEGY

Research and development

Matrix structure

Long term goal

Finance department objectives

Production department

Marketing department

Resource allocation

For production department

Conclusion