Strategic management

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Strategic Management Project
Coca cola
Presented to:
Prof. Dr. Ashraf Labib
By
Ahmed Rashad Abou Elseoud Reg No.18221088
Mohamed Helmy Mohamed El Mekawy Reg No.19121044
Mostafa Mohamed Alaa Reg No.18221088
Group (S3)

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Organization Description and background
The Coca Cola Company is the most valuable brand name and world’s largest non-alcoholic
beverage company. This company was founded in 1886 in United States of America. Now it
operates in more than 200 countries. Coca cola also distributes juice, energy drinks, water, and
coffee. The company has partnership with more than 300 bottling and canning company
worldwide. Who produce and sell coca cola beverages worldwide? The bottling partners are
responsible for consumer brand marketing initiatives, handle manufacturing and merchandising.
John Pemberton invented the original recipe of coca wine. Which was inspired by Vin Mariana,
a popular coca wine invented by Angelo Mariani. John Pemberton developed coca cola which
was non-alcoholic version of coca wine. When Pemberton was making drinks for his friend
accidently, he added carbonated water. His friend liked the test and he adjust the formula. In
1888 company sold by three companies. Calder purchased one company with exclusive rights
to the Coca Cola formula from Woolfolk Walker, Margate Dozier and john Pemberton cut out of
competition. In 1982 company started marketing the product and achieved status of national
icon for the USA by its 50th anniversary. Coca cola started sold bottles in 1894 and cans in
1955. In 1899 Coca Cola Company made first bottling agreement with Chattanooga and
Tennessee. In 1985, company introduce new coke by changing original formula. Most
consumers preferred the test of original coca cola. Many people stop to buy the Product then
company shift back to its original Formula.
Board of directors
Herbert A. Allen
• Management Development Committee (Chair)
• Executive Committee
• Finance Committee
Ronald W. Allen
• Audit Committee (Chair)
Marc Bolland
• Audit Committee
Ana Botín
• Committee on Directors and Corporate Governance
• Finance Committee
Christopher C. Davis
• Human Capital Management and Compensation
• Finance Committee
Barry Diller
• Finance Committee (Chair)
• Executive Committee
• Committee on Directors and Corporate Governance

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• Management Development Committee
Helene D. Gayle
• Human Captial Management and Compensation Committee (Chair)
• Public Issues and Sustainability Committee
Alexis Herman
• Public Policy and Sustainabilty Committee (Chair)
• Human Capital Management and Compensation Committee
Bobby Kotick
• Finance Committee
• Management Development Committee
Maria Elena Lagomasino
• Committee on Directors and Corporate Governance (Chair)
• Management Development Committee
• Human Capital Management and Compensation Committee
James Quincey
• Executive Committee (Chair)
Caroline Tsay
• Public Issues and Diversity Review Committee
• Audit Committee
David B. Weinberg
• Management Development Committee
• Audit Committee
Vision:
Our vision is to craft the brands and choice of drinks that people love, to refresh
them in body & spirit. And done in ways that create a more sustainable business
and better shared future that makes a difference in people’s lives, communities
and our planet.

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MISSION:
“To refresh the world in mind, body, and spirit, to inspire moments of optimism
and happiness through our brands and actions, and to create value and make a
difference”
GENERIC STRATEGIES
The main generic strategy used by Coca Cola is that of cost leadership. This is a strategy
employed by several big brands of the world that are leading in the market. Cost leadership is
a very effective strategy that helps brands quickly increase market share and gain popularity
The main generic strategy used by Coca Cola is that of cost leadership. This is a strategy
employed by several big brands of the world that are leading in the market. Cost leadership is
a very effective strategy that helps brands quickly increase market share and gain popularity.
Everyone wants to spend less on any product. Especially, the middle class which forms a very
large part of Coca Cola’s customer base loves low prices of products. Coca Cola has kept the

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prices of its products low. These are affordable products and available easily in every corner of
the world. Coca Cola has ensured both affordability and accessibility which has led to both
higher sales and popularity. This has proved to be a source of sustainable competitive
advantage for Coca Cola.
While cost leadership is the main generic strategy sued by Coca Cola, it has also used
differentiation to gain an advantage over the competitors. It has introduced a few healthy
products including health drinks and juices that are aimed at the health-conscious customers.
So, Coca Cola has used a mix of cost leadership and differentiation to gain competitive
advantage and to build customer loyalty.
Intensive Strategy:
here are four intensive strategies for a brand’s growth and market expansion. They are – market
penetration, market development, product development and diversification. Below is a
discussion of the intensive strategies used by Coca Cola to grow its market and sales
Market penetration:
This is the strategy of selling more to the existing customer base. It is one of the key strategies
Coca Cola has used to grow its sales. Apart from keeping prices affordably low, the brand also
uses promotional tactics like seasonal discounts to push sales among its existing customers. It
releases new packages and runs promotional campaigns that are aimed at increasing the sales
of its products worldwide.
Product development:
Product development is the strategy of bringing more products to the market to increase sales
and revenue. Overtime, the product array of Coca Cola has grown quite broad. Its large product
portfolio is made up of 500 sparkling and still brands and it serves nearly 3900 beverage choices.
Now, there are 21 billion-dollar brands in its portfolio. In this way, Coca Cola has achieved a lot
of growth through product development.
conclusion
This was a hint of the generic and intensive strategies that Coca Cola has used to grow its
brand and earn a competitive advantage. It is the leading brand in the beverages industry and
this position has been achieved with the help of a sustainable competitive advantage. Its global
growth story is a testimony of its use of generic and intensive strategies.

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PESTEL ANAYSIS
1- Political environment
The political environment can especially be problematic for multinational companies because
it can hinder business developments by its new governments or tough regulatory environment.
As coca cola is operating in different countries then it will be facing a lot of political problems
as each country has its own regulations that could have a negative impact on its operations.
o Foreign policy with Nabors
a. Egyptian-Turkish relations will be antagonistic
b. Egypt will retrench to its 'buffer' aim in Libya
c. The nearly completed mega-dam has a source of immense friction between Egypt
, Ethiopia and Sudan, but recent developments could create space to de-escalate
o RISKS
Coronavirus puts Egypt tourism and remittances at risk People's Assembly
Elections

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2- Economic environment
2017 saw the Egyptian inflation rate skyrocket from 10.2 percent in 2016 to more than
double that at 23.5 percent. Ever since, inflation has recovered only slowly, although
projections today see it levelling off below ten percent in the future. Around the same
year, Egypt’s GDP dropped to below 240 billion U.S. dollars, a historical
low. Unemployment, another key indicator, has steadily been between 12 to 13 percent -
one reason for this is Egypt’s reliance on agriculture, which does not factor into the
unemployment rate. National debt has also increased dramatically over the last few years.
All in all, the times of economic unrest are not yet over
a. Market growth rate
Egypt: Growth rate of the real gross domestic product (GDP) from
2009 to 2021(compared to the previous year)
b. Inflation rate in Egypt 2021
Published by H.Plecher , Apr 29, 2020 in 2018, the average inflation rate in Egypt amounted
to about 20.86 percent, a slight decrease compared to the previous year, when it peaked at 23.54
percent.
Egypt: Inflation rate from 1984 to 2021*(compared to the previous year)

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3- Technological Factors:
The technology of television and internet which affects companies advertising, marketing
and promotional programs. Media advertise product attractively it helps to increase sales of the
product. Introduction of plastic bottles and cans have increased the sales of coca cola. It is easy
to use and bin them. The advancement in technology led to company crate new product like
cherry cock in 1985 but consumer prefers original test of coca cola so that some time technology
can affect badly.
Coca Cola Company introduces new technology all the time because of introduction of new
machine company’s production level increase tremendously. Ardagh glass is the latest
technological achievement by Coke Company which is environmentally friendly bottle. It has won
several awards for its light weight.
4- Social Factors:
Many people are spending healthier lifestyle. Change in lifestyle, population growth rate and
carrier attitudes affect nonalcoholic industry so that many people like to have bottle water and
colas instead of beer. The need of healthy products, bottle water, and juice is more important in
the daily life.
Consumers from the age of 37 to 55 are more concerned with nutrition. Older age people are
becoming more concerned with increasing their long life. This kind of social trend can effect on
demand of non-alcoholic beverage industry. Increase in awareness among consumer and
modern lifestyle might be challenge to the coca cola company. However, company recognized
the consumers’ needs and began to produce diet coke, like beverage, juice and sport drinks.
Many nutritionists advise that maximum consumption of coca cola might be harmful to health
especially to young children. Drinking of coca cola daily can effect on health after few years.

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5- Legal Factors:
Coca Cola retains all rights related to their business, including past and future products
developed with a patented process.
6- Environmental Factors:
Coca Cola is affected by water accessibility. Water is necessary for soft drink development.
But should something happen, like climate change, the company may be under fire.
This affects their competitor, Pepsi, as well. But since Coca Cola’s products are primarily soft
drinks, with a water accessibility issue, the company will suffer losses.
Remote analysis using issue priority matrix
Description Probability impact of
corporate
Factor high Med. Low
P Political (threat)
Probability
of
occurrence
High 1
Med
Low
E
Economic Growth rate
(Opp.)
High 2
Med
Low
S Life style (opp.)
High
Med 3
Low
T Technology (opp.)
High 1
Med
Low
E
Inflation (threat)
High
Med 3
Low

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Porter’s five forces analysis:
Porter’s five forces model, named after its developer Michael E Porter, is a strategic analysis
tool that helps to analyze some critical forces affecting the level of competition in an industry.
This is a Five Forces analysis of the soda giant Coca Cola. Coca Cola is the leading brand in
beverages sector and has a global presence. Its only major competitor is Pepsi.
1- Bargaining power of suppliers:
The bargaining power of suppliers of Coca Cola is weak. It is so because the number of suppliers
is high and the switching costs for Coca Cola low. While Coca Cola can easily switch from one
supplier to another, it is not possible for any supplier to switch away from Coca Cola as easily.
That can lead to losses for any of the suppliers. While there are several suppliers, the size of
individual suppliers is small or moderately large. Moreover, forward integration is a distant
possibility for most of its suppliers. Even if there are no substitutes for raw materials like sugar,
the number of suppliers is still high. So, the main factors that have come to light regarding the
bargaining power of suppliers are:
• Large number of suppliers
• Small to moderately large size of individual suppliers.
• Forward integration difficult for the suppliers.
• Switching costs for Coca Cola not so high
2- Bargaining power of buyers:
Coca-Cola customers make high involvement and high habituation decisions when purchasing
Coke products. As a result, customers develop a loyalty to the brand and what it means to them.
For example, customers were outraged over the “new Coke” released in 1985. The original
Coca-Cola evoked feelings of nostalgia that customers were accustomed to, and the company
was forced to go back to the original formula even though customers had been choosing Pepsi
in the blind taste tests.
Since customers are loyal to the Coca-Cola brand, Coca-Cola relies upon emotional appeal in
their advertisements. Coke ads utilize celebrities, family figures, and Santa Claus to create
familiarity for their customers. This method is known as affect referral.
According to official statistics, an amazing 1.9 billion products of Coca-Cola are sold around the
world every day.
The Coca-Cola Company is a global business that operates on a local scale, in every community
where they do business. The term is second most well-known after okay, making it recognizable
in nearly all communities and cultures across the globe. The Company can create a global a
global reach with local focus because of the strength of its system, which comprises the Coca-
Cola Company and their more than 250 bottling partners worldwide.
The system has numerous legal and managerial departments and sections, all independent of
each other, and it does not own or control all of it bottling partners worldwide.

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While it is generally perceived that Coca-Cola runs all its operations globally it, this process it
done through various local channels. The Company manufactures and sells concentrates,
beverage bases and syrups to bottling operators. It still however, owns the brand and is
responsible for consumer brand marketing initiative. The bottling partners manufacture, package
and distribute the final branded beverages to customers and vending partners, who then sell
products to consumers.
All bottling partners work closely with suppliers- grocery stores, restaurants, convenience stores,
amongst many others- to execute localized strategies developed in partnership with Coca-Cola.
More precisely, although Coca-Cola is a global company, its products never have to travel far to
reach the final consumer, making the product more local than you may think, the product is made
local to the market where it is sold.
Their business is a local business, typically products aren’t shipped more than a few hundred
miles; it’s all about being responsive to the customer’s needs and the local tastes of the
consumers in every market. The Coca-Cola Company sells its products to bottling and canning
operations, distributers, fountain wholesalers and some fountain retailers. They then distribute
them to retail outlets, corner stores, restaurants, petrol stations and many more.
Arrays of points of sales that Coca-Cola products can roughly be categorized into are:
– Wholesalers/ distributers
– Retail/ corner stores/ supermarkets
– Restaurants/ cafes/ night clubs
– Petrol stations
– Automated teller machines (AMTs)
3- Threat of new entrants:
In the beverages industry there are several factors that discourage new brands from entering.
Growing a brand overnight is impossible. There are significant investments to be made. From
operations to marketing every part requires a large investment. Some local brands may start it
at smaller scale and still marketing and hiring qualified staff requires generous investment. The
level of customer loyalty in the industry is moderate and for any brand to build customer loyalty
it will take some time. So, while new entrants can compete with brands like Coca Cola at a
smaller or local level, to build a brand as big is a mammoth task requiring both capital and skilled
human resources.
4- Threat of substitutes:
Main substitutes of Coca Cola products are the beverages made by Pepsi, fruit juices,
and other hot and cold beverages. The number of substitutes of Coca Cola products is
high. There are several juices and other kinds of hot and cold beverages in the market.
The switching costs are low for the customers. Apart from it, the quality of the substitute
products is also generally good. So, based on these factors the threat from substitutes is
strong.

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5- Intensity of rivalry:
There are two major players in the soda industry, and they are Coca Cola and Pepsi.
There is intense rivalry between the two major players. There are a few smaller players
too, but they do not pose a major competitive threat. The two main players are nearly of
the same size and they have similar products and strategies. The level of differentiation
between the two brands is also low and therefore the price competition is intense. People
have already heard of the Cola wars. So, the level of competitive rivalry between the
existing firms is a strong force.
Description Probability impact of corporate
Factor High Med. Low
Substitutes (threat)
Probability
of
occurrence
High 1
Med
Low
New entrance
High
Med 3
low
Bargaining of buyer
High 2
Med
Low
Bargaining of supplier
High
Med 3
Low
Rivalry
• industry attractiveness – number of competitors
market growth - product diff. – cost – barriers of entry or exit
• strategic Map
• strategic Type
• value discipline

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strategic map
identify direct competitor → Pepsi
competitive advantages of Pepsi and Cola products
1- taste
2- advertising power
Strategic type
1- Prospective type
For taste improvement throw R&D
2- Analyzer strategy
For advertising power
4.55
4.6
4.65
4.7
4.75
4.8
4.85
4.9
4.95
5
5.05
taste advertizing
Strategic map
pepsi cola

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Value discipline triad:
`
This tool looks at three areas or in which can focus:
• Operation excellence
Pepsi is the leading in operational excellence cause of its cost leadership strategy.
• Product leadership
Pepsi is leading group in product leadership because the big net rates
• Customer intimacy
Coca Cola is the leading company for customer intimacy
Value discipline Analysis using issue priority matrix
Description Probability impact of corporate
Factor High Med. Low
Product leadership
Probability
of
occurrence
High
Med 1
Low
Customer intimacy
High
Med 4
Low
Operational excellence
High
Med 4
Low
Operational
excellence
Customer
intimacy
Product Leadership
Coca Cola
Coca Cola
Coca Cola
Pepsi
Pepsi
Pepsi

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BCG Coca Cola
Boston consultant group
STAR
Coca cola
cans
Q. MARK
Sprite
CASH COW
Cola light
DOG
Plastic bottle
1. Star products: COCA COLA
A) high market shares and high growth rate.
2. Cash Cow: COLA LIGHT
A) it has a large market share but low growth rate.
3. Question Mark: SPRITE
It has low market share and low growth rate
4. Dog: COLA plastic bottle
Coca-Cola Industry Matrix:
Industry Success Factor Weight Rate Weighted Score
Inflation 0.2 3 0.6
Economic growth 0.1 5 0.5
Differentiation inputs 0.1 2 0.2
Products Differentiation 0.2 5 1
Brand Loyalty 0.1 5 0.5
Roles and regulation 0.2 2 0.4
Sum Weight 1 3.6

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6- Issues priority matrix
No. Item Definition
1 Changing competitive
environment
what is the IFAS means in strategic management ability to
respond to increasing competitive pressure through new
entrants or customer and competitor consolidation in the
marketplace.
2 Climate change risk and
resilience
Significant changes in weather patterns and increased
frequency and severity of natural disasters with resulting
impacts across the value chain. Includes the ability to
develop climate resilience across the Coca-Cola system.
3 Competition for talented
employee resources
Ability to recruit and retain highly skilled and diverse talent
with skills that can support future business growth.
4 Deforestation Deforestation in the supply chain as a result of the
production of agricultural raw materials used in the Coca-
Cola system and value chain.
5 Digital disruption Digital landscape and evolving shopping preferences and
patterns including artificial intelligence, robotics,
automation, and e-commerce.
6 Diversity and inclusion Efforts to promote diversity and equal opportunity at all
levels of the organization. Including women’s economic
empowerment.
7 Economic downturns and
periods of uncertainty
Unfavorable economic conditions, including recessions and
economic slowdowns.
8 Greenhouse gas emissions Greenhouse gas emissions and associated reduction
activities including via packaging, HFC-free cold-drink
equipment and fuel management.
9 Human and workplace
rights
Human rights and workplace conditions, in alignment with
the UN Guiding Principles on Business & Human Rights.
This also includes land rights and indigenous rights.

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10 Information protection and
cybersecurity
Protection of information systems against cyber incidents
including security breaches and data misappropriation.
11 Manufacturing waste
management
Manufacturing waste and effluent with regards to reliable
and environmentally responsible solutions.
12 Packaging Packaging safety and quality, renewable materials,
recyclability, recycling, addressing litter and innovation.
13 Political uncertainties and
regulation
Impact on business operations due to political uncertainty
and regulations.
14
Product preferences, health
and added sugar
Evolving consumer preferences relating to health, wellness,
nutrition and expectations for transparency. This includes
offering low- and no-calorie options, not marketing to
children and providing front-of-pack calorie information.
15 Product safety and quality Product safety and quality across beverage product
categories, including packaging and labeling.
16 Scarcity of ingredients and
raw materials
Ability to source raw materials for use in manufacturing
processes.
17
Social unrest and rising
inequality
Assessing the impact of the Coca-Cola system and value
chain on social unrest and rising inequality in global
markets and assessing opportunities to remedy unrest and
inequality
18
Third-party service
providers and partners
Ability to manage social and environmental challenges,
including anti-corruption, and ensure compliance within
third-party service provider and business partner
relationships, including upstream and downstream
suppliers.
19 Water stewardship Water use and efficiency, water withdrawal, water use
rights, mitigating water risk and replenishing water used in
the Coca-Cola system and value chain.

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Issues priority:
Probability Impact on corporation
High Medium Low
Probability of
occurrence
High 3&12&14&15 5&10 1
Medium 7&16 2&9&18 4&8&17
Low 11&13 19 6

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EFAS
FACTORS WIEGHT Rate Weighted
score
OPPORTUNITY
Economic growth 0.32 5 1.6
Multi channel Distributers 0.02 4 0.08
Products Differentiation 0.1 5 0.5
New market penetration 0.06 4 0.24
Life style 0.08 4 0.32
Technology 0.1 5 0.5
THREATS
Substitutes 0.09 4 0.36
Political 0.03 1 0.03
Power of supplier 0.05 2 0.1
New entrance 0.1 2 0.2
Power of buyer 0.05 1 0.05
Total
1 3.98

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Internal Environment Analysis:
Value chain analysis (VCA):
Coca Cola is one of the most recognizable brands globally. Known for its strong brand image
and global presence, Coca Cola has several billion-dollar brands in its portfolio. However,
creating such a large and successful brand also requires managing the value chain successfully.
A value chain includes all the activities starting from obtaining the raw materials from various
sources to the final sales and after sales service. There are several activities in the middle which
form the value chain. Managers can obtain a picture of how each stage in the value chain adds
value to the product and accordingly optimize the value chain to obtain better results.
Optimization will not just bring efficiency, but it can also generate new sources of competitive
advantage. Here is a detailed value chain analysis of Coca Cola. There are primary and support
activities in the value chain which are discussed below:
a- Primary activity:
are the activities involved in the creation of product, marketing, and transfer to buyer
and after sales support.
b- Support activities:
assist the firm by providing infrastructure or inputs that allow primary
activities to take place.
Primary activities
• Inbound Logistics:→ COST- Quality – time
Coca Cola has managed a very large supply chain which consists of tens of thousands
of farmers and suppliers. It treats its suppliers as business partners. These business
partners provide its system with raw material including ingredients, packaging, and
machinery as well as goods and services. However, it has also set guiding principles for
the suppliers to follow. At a minimum, these suppliers are required to comply with all the
applicable laws and regulations. In its guidelines Coca cola also emphasizes on
responsible environmental and workplace policies and practices. It has managed
excellent relationship with its suppliers and that helps it maintain a continuous and
uninterrupted flow of raw material.
• Efficiency of supply chain management

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Operation:
The operations function of Coca Cola includes concentrate development and all the
administrative functions of headquarters. Coca Cola is a global business that operates at
a local scale in every community where it does business. The Coca cola system operates
through many local channels. However, it does not own or control all its bottling partners.
The company just manufactures and sells beverage bases and syrups to bottling
operations. The company owns the brand and is responsible for the consumer brand
marketing initiatives.
• Productivity of equipment compared to competitors
• Efficient scheduling
- Outbound Logistics:
-
This part of Coca Cola’s Value chain consists of its bottling partners and distributors. It is
bottling partners manufacture, package, merchandise and distribute the final product to
the customers and vending partners. These vending partners then sell the product to the
customers. The customers of Coca Cola include the grocery stores, restaurants, street
vendors, convenience stores, movie theatres and amusement parks. The bottling
partners of Coca Cola work with the customers to execute localized strategies developed
in partnership with Coca Cola company.
• Efficiency of delivery of services
- Marketing:
Coca Cola is a globally recognized brand. However, it has not become as famous without
focusing on marketing. The coca cola logo is one of the most recognizable logos. Its brand
is also known for a very heavy expenditure on marketing. Apart from digital channels and
social media, Coca Cola also uses print media and outdoor marketing to promote its brand
and products. It also runs campaigns from time to time. Last year it brought a major shift
in its marketing strategy and rather than promoting its brands separately, it is now
focusing on promoting the entire brand together. Its products are sold in more than 200
countries worldwide. From retail stores to restaurants and theatres, Coca Cola products
can be seen everywhere decorating the shelves.
• Effectiveness of market research to better understand customers'
needs and wants
• Effective sales packages and advertising
• Innovation of integrated services
• Marinating a good quality image
• Expanding customers base and increasing customer loyalty for the group
name.

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- Service:
Coca Cola maintains its customer service practices via online chat with a virtual agent in
official website of the company dedicated customer service phone. Coca Cola website
has a comprehensive FAQ that covers the most aspects of their products in a detailed
manner and the website also addresses a wide range of rumors related to the brand direct
and indirect ways.
• Effective addressing of customer complaints
Support activities
• Financial Ratio Analysis:
Growth Rate Percent Coke Industry
Sales (Qtr vs year ago qtr) 45.40 30.50
Net Income (YTD vs YTD) NA NA
Net Income (Qtr vs year ago qtr) 8.10 7.90
Sales (5-Year Annual Avg.) 8.74 9.85
Net Income (5-Year Annual Avg.) 19.37 14.68
Dividends (5-Year Annual Avg.) 9.46 9.67
Profit Margin Percent
Gross Margin 60.7 56.1
Pre-Tax Margin 33.6 23.2
Net Profit Margin 27.7 19.3
5Yr Gross Margin (5-Year Avg.) 64.4 58.2
Liquidity Ratios
Debt/Equity Ratio 0.88 0.94
Current Ratio 1.1 1.2
Quick Ratio 1.0 1.1
Profitability Ratios
Return On Equity 41.5 34.6
Return On Assets 18.8 14.3
Return On Capital 27.6 20.3
Return On Equity (5-Year Avg.) 33.0 32.0
Return On Assets (5-Year Avg.) 16.7 15.2
Return On Capital (5-Year Avg.) 23.9 20.9
Efficiency Ratios
Income/Employee 91,289 67,398
Revenue/Employee 329,484 338,900
Receivable Turnover 10.4 9.7
Inventory Turnover 6.7 7.5

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• General Administration:
The role of a firm’s infrastructure is central to its success. Coca Cola has managed a large
infrastructure including its management, human resources, financial and technological
infrastructure. It is also educating its suppliers and focusing on innovation through its R&D
centers.
• Capability to identify new product market opportunities and potential
environmental threats
• Strategic planning to achieve corporate objectives
• Public image and corporate citizenship
• Coordination and integration of all value chain activities among
organization submit
• Level of info systems support in making strategic and routine decisions
• Timely and accurate management info on general and competitive
environment
• Human Resource:
This is also a very important area of Coca Cola’s value chain. The company has focused on
hiring and developing talent and creating an environment of learning and growth. It pays them
good salaries and complements the payments with rewards. Coca cola focuses on employee
motivation and engagement. Apart from it, the focus is on performance management to
provide the employees with career growth.
• Effectiveness of procedures for recruiting, training and promoting all
levels of employees
• A work environment that minimize absenteeism and keeps turnover at
desirable levels
• Levels of employee motivation and job satisfaction
• Active participations by managers and technical personal in professional
organization

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• Technology:
Coca Cola also maintains heavy focus on technology and research and
development. From production to distribution and sales, everywhere it has invested in
technology. Apart from that it also focuses on technological innovation through R&D. It
has six R& D centers around the world that are connected to external technology and
assessment hubs connecting it with partners, tech startups and university
researchers. The company collaborates with partners in the other industries to fuel
innovation across products, packaging, equipment, and the other things. In this way, Coca
Cola is continuously focusing on innovation for growth.
Success of research and development activities in leading to product and
process innovation
• Quality of working relationships between health informatics and other
departments
• Success of research and development activities in leading to product and
process innovation
• Ability of work environment to encourage creativity and innovation
• Procurement:
Coca Cola procures from thousands of farmers and suppliers. It uses technology to
make the entire process easier and efficient. It has maintained good relationships
with its suppliers and provided guidelines that the suppliers are required to follow.
• Development of alternate sources for inputs to minimize dependence on single
supplier
• Procedures of procurement of workshop machine
• Good long-term relationship with reliable suppliers

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Value Rareness Imitability Organization Matrix (VRIO):
It is a tool in strategic planning, used by firms to make efficient
business decisions. The analysis provides information, and the
results will provide a competitive advantage.
Activities
VRIO
Value Rare Costly to
imitate
Organized
Inbound Logistic √ √ √ √
Efficiency of supply chain Management √ √ √
Operation
Productivity of equipment compared to key
competitors
√ √ √
Efficient scheduling √ √
Outbound Logistics
Efficiency of transportation, shipping and
delivery
√ √ √ √
Marketing
Effectiveness of market research to better
understand customers' needs and wants
√ √
Effective sealed promotions and advertising √ √ √ √
Innovation of promotions √ √ √
Marinating a good quality image √ √ √
Expanding customers base and increasing
customer loyalty for the brand
√ √ √
Service
Effective addressing of customer
complaints
√ √ √
General Administration
Capability to identify new product market
opportunities and potential environmental
threats
√ √ √

26. Page | 26
Strategic planning to achieve corporate
objectives
√ √ √
Public image and corporate Citizenship √ √ √
Coordination and integration of all value chain
activities among organization submit
√ √ √
Level of info systems support in making
strategic and routine decisions
√ √
Timely and accurate management info. on
general and competitive environment
√ √ √
Human Resource
Effectiveness of procedures for recruiting,
training, and promoting all levels of employees
√ √
A work environment that minimizes absent and
keeps turnover at desirable levels
√ √ √
Levels of employee motivation and job
satisfaction
√ √ √ √
Active participations by managers and
technical personal in professional organization
√ √ √
Technology
Success of health informatics activities in
leading to service and process innovation
√ √ √
Quality of working relationships between
health informatics and other departments
√ √ √
Ability of work environment to encourage
creativity and Innovation
√ √ √ √
Procurement
Development of alternate sources for inputs to
minimize dependence on single supplier
√
Procedures of procurement of workshop
machine
√ √ √
Good long-term relationship with reliable
suppliers
√ √ √ √

27. Page | 27
IFAS
FACTORS WIEGHT Rate Weighted
score
Strengths
Varity of products
0.20 5 1
Effective promotions and
advertising 0.11 4 0.44
Levels of employee motivation
and job satisfaction 0.10 4 0.4
High qualify staff.
0.09 3 0.27
Good long-term relationship
with reliable suppliers 0.04 3 0.12
customer loyality for the
brand. 0.16 5 0.8
Weaknesses
Innovation of promotions
0.07 4 0.28
Level of info systems support
in making strategic and routine
Decisions
0.05 4 0.2
Effective addressing of
customer complaints 0.1 2 0.2
Capability to identify new
product 0.05 1 0.05
Total
1 3.76

28. Page | 28
Coca Cola Grand Strategy:
Under the grand strategy matrix, Coca-Cola Company falls under Quadrant 1; the company
enjoys a strong competitive position in the market and is experiencing rapid market growth over
the years. It is essential for the company to actively participate in the current market through
developing strategies such as market
It is essential for the company to actively participate in the current market through developing
strategies such as market concentration and development. This will help to avoid losing focus
from the competitive advantage enjoyed in the market. Additionally, the company should
practice related diversification to reduce the risks in dealing with a single product in the market.
Even though forward and horizontal integration is appropriate for Coca-Cola Company, it must
do an informative analysis to avoid the loss which may occur in the process.
As figure identify that Coca-Cola comes in the 1st quadrant. The company management must
focus on current market and achieve growth by adopting product development, market
development and market penetration strategies. The company has abundant resources and
competitive advantage through which it can achieve growth by adopting the backward and
forward integration strategies. Coca-Cola can also adopt the related diversification strategy to
reduce its risk with broad portfolio or product line. Coca-Cola can afford to take benefit of external
opportunities in many areas. It can also take risks being aggressive when necessary

29. Page | 29
Product /Market Focus
Coca Cola Company wants to continue focusing their needs for consumers with regards
to delivering innovative food products which includes energy drinks, vitamins, and
antioxidant drinks. Furthermore, Coca Cola is focusing on creating a healthy and active
lifestyle that is more adaptive to consumer behavior. Coca cola is working with their
bottling partners to enhance customer relationships and make their products widely
known and distributed everywhere
Growth Strategy/Goals
• Hard goals
In terms of its growth strategy, which is their market position in the beverage industry, Coca
Cola Company is concentrating in opening more opportunities in developing markets by
leveraging the scale & reach of the Coca Cola system to shape & capture value. The company
intends to accomplish it by sharpening their execution at the point of sale and expanding the
brand portfolio. The company has projected that these developing markets are expected to
contribute approximately 20 percent of incremental population growth over the next 10 years.
Personal expenditure per capita in these markets is expected to increase by 65% over the next
decade. Furthermore, Coca Cola company anticipates that developing markets will contribute
approximately ¼ of the incremental unit case volume by 2020.
• Rationale
The coca cola company’s long term growth strategy of investing in emerging markets, is
related to the Coca Cola Company projections in these markets. The CCC attributes this to a
positive correlation between wealth and the increase in consumption of Nonalcoholic ready-to-
drink(NARTD) beverages. From now to 2020, more than 1 billion people will join the middle
class, and the per capita wealth for individuals will increase by nearly 30 percent. They have
the ability to invest in new plants in places like china & India. Over the next 3 years Coca Cola
company plans to invest $2 billion, 3 new plants are expected to be finished in that time period.
The company clearly understands in order for intended strategy to be attained, consumer
access and system alignment is key to their growth in these emerging markets. This means
placing more coolers throughout these countries, in order to drive on-the-go consumption.
• Soft goals
The Coca Cola company is also encouraging their partners in the value chain, to enhance their
soft skills within these developing markets. The company is focused on growing annual
consumption of beverage products. The company intends to work with its bottling partners to
establish new customer relationships & grow existing ones, from street vendors & restaurants,
to large-scale grocers.

30. Page | 30
Market Penetration:
Find New Customers
Rather than compete with existing businesses, you can penetrate the market by finding new
customers. Diet Coke has been a success for Coca-Cola, but its drinkers are overwhelmingly
female. Men don't drink it because they think of it as a girly soft drink. Coca-Cola's solution:
Coke Zero. It offers the same benefits as Diet Coke (Coke taste with no calories) but it's seen
as more of a "guy's drink." That opened up a whole new market.
backward and forward integration strategies
This vertical integration increases operating effectiveness and efficiency by combining the
current manufacturing and distribution capabilities into one unified organization. These
changes strengthen Coke's commitment to work toward sustainability and provide an
opportunity for further momentum in North America. In January 2006, Company-owned bottling
operations were brought together to form the Bottling Investments operating group, now the
second-largest bottling partner. In April 2007, partners met to discuss the development of a
core set of performance indicators for the Coca-Cola system. Bottling partners produce their
own corporate responsibility reports which can be viewed in the Sustainability Reports section.
Coca-Cola manufactures and sells concentrates, beverage bases and syrups to bottling
operations, owns the brands and is responsible for consumer brand marketing initiatives. Our
bottling partners manufacture, package, merchandise and distribute the final branded
beverages to our customers and vending partners, who then sell our products to consumers
diversification strategy
The Coca-Cola Company recently announced that it had entered into a binding agreement to
acquire initial minority equity shareholding in Chi Ltd. a Nigeria based leading dairy and juice
company, creating a strategic relationship between the two companies. While Coca Cola has
made an initial 40 percent equity investment in Chi Ltd., it intends to increase its ownership to
100 percent within the next three years, subject to regulatory approval. With this investment
Coca Cola is well poised to expand its regional footprint in Africa as well as its product
portfolio. Chi Ltd. has a leading position in the value added dairy and juice products market in
Nigeria and Coca Cola will get the advantage of establishing itself in this market through a
prominent player in the region. We believe product diversification and international expansion
are two key drivers of growth for Coca Cola and this strategic investment should act a catalyst
in future growth.

31. Page | 31
SFAS
FACTORS WIEGHT Rate Weighted score
Strengths
Varity of products
0.08 5 0.4
Effective promotions and advertising
0.06 4 0.24
Levels of employee motivation and
job satisfaction 0.08 4 0.32
High qualify staff.
0.1 3 0.3
Good long-term relationship with
reliable suppliers 0.18 3 0.54
customer loyalty for the brand.
0.13 5 0.65
Weaknesses
Innovation of promotions
0.04 4 0.16
Product diversification
0.04 4 0.16
Health corner
0.01 2 0.02
Aggressive competition
0.04 1 0.04
Opportunity
Economic growth
0.04 5 0.2
Multi-channel Distributers
0.02 5 0.1
Life style- new product
0.02 4 0.08
Technology
0.04 4 0.16
New market
0.02 5 0.1
THREATS
New entrance
0.02 4 0.08
Substitutes
0.03 1 0.03
Power of supplier
0.02 2 0.04
Power of buyer
0.02 2 0.04
Political
0.01 1 0.01
Total 1 3.67

32. Page | 32
TOWS Matrix
internal
external
Strength weakness
Opportunity
- Economic growth
-Products Differentiation
-Good long-term relationship with
reliable suppliers
-New entrance
-Capability to identify new product
-Innovation of promotions
-Technology
-Effective sealed promotions and
advertising
- Substitutes
Threats New entrance
Brand Loyalty
Effective sealed promotions and
advertising
Capability to identify new product
Health corner
Product diversification
Aggressive competition
New entrance
Multi-channel Distributers
High qualify staff.

33. Page | 33
Quantitative Strategic Planning Matrix
QSPM
KEY FACTOR WT
MARKET
PENETATION
PRODUCT
DEV.
ATTRA
CTIVE
T.A ATTRACTIVE T.A
Varity of products 0.08 4 0.32 3 0.24
Effective promotions and
advertising
0.06 4 0.24 4 0.24
Levels of employee
motivation and job
satisfaction
0.08 5 0.4 5 0.4
High qualify staff. 0.1 5 0.5 5 0.5
Good long-term
relationship with reliable
suppliers
0.18 4 0.72 4 0.72
customer loyalty for the
brand.
0.13 4 0.52 4 0.52
Innovation of promotions 0.04 3 0.12 3 0.12
Product diversification 0.04 3 0.12 3 0.12
Health corner 0.01 3 0.03 5 0.05
Aggressive competition 0.04 4 0.16 5 0.2
New entrance 0.02 4 0.08 3 0.06
Substitutes 0.03 4 0.12 5 0.15
Power of supplier 0.02 2 0.04 2 0.04
Power of buyer 0.02 3 0.06 4 0.08
Political 0.01 2 0.02 2 0.02
Economic growth 0.04 5 0.2 5 0.2
Multi-channel Distributers 0.02 4 0.08 3 0.06
Life style- new product 0.02 3 0.06 4 0.08
Technology 0.04 5 0.2 5 0.2
New market 0.02 5 0.1 4 0.08
Total
1 4.09 4.08

34. Page | 34
Strategic Position and Action Evaluation
SPACE Matrix
Competitive advantages Rate Industry strategy Rate
Aggressive competition -1 Power of supplier 2
Innovation of
promotions
-4 Multi-channel
Distributers
5
Product diversification -4 New entrance 4
Health corner -2 Substitutes 1
Varity of products -4 new product
Effective promotions and
advertising
-4
Levels of employee
motivation and job
satisfaction
-4
High qualify staff. -3
Good long-term
relationship with reliable
suppliers
-3
customer loyalty for the
brand.
-5
New market -5
Average -3.25 3
Total X score - 0.25
Environmental stability Rate Financial strength Rate
Political -5
Economic growth -5 ROI 5
Life style -4 Liquidity 5
Technology -4
Average -4.5 5
Total Y score +0.5

35. Page | 35
Strategic Objective
financial
Conservative
Competitive str. Industry strength
Environmental stability
Balanced score card
BSC
Strategic
Objective objectives Target KPI
TIME
2021 2022 2023
Product
development
Financial Profit growth 7%
Actual
/
target
2% 2% 3%
customers Average price
Special package
Special offers
Market share
The same as Pepsi
2 liter & 400ml
Prize
20%
5% 10% 5%
Process Equipment
High soda
Four products 1 2 1
Learning&
Training
Staff team &
training program
100 person
3 train. Programs
30
1
50
1
20
1