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Strategic Management Assignement
1.
2. Presenter: Mohammad Sabir Seddiqi
Father Name: Haji Gulam Seddiqi
Lecturer: Mr. Sikandar Zaman
Subject: Strategic Management
Topic: Coca- cola
Class: BBA-J
Class ID: 20409-11
E-mail: sabir_sedddiqi@hotmail.com
contact no: 0788100902
3. Objectives of Coca Cola Inc.
History of coca cola
external environment
competitive forces
SWOT analysis
corporate social responsibility
5. 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 Company’s
strategies management process
6. 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 Jacob’s Pharmacy and customers
bought the drink for five cents at the
soda fountain
7. 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.
8. 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
•
•
•
•
•
•
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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
10. 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
POLITICAL
ANALYSIS
• 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.
ECONOMIC
ANALYSIS
• 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.
SOCIOCULTURAL
ANALYSIS
11. 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.
TECHNOLOGY
ANALYSIS
• 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
• 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.
• Obstacles in international
operations included regulations,
price controls, advertising
restrictions and lack of
infrastructure
LEGAL
ANALYSIS
DEMOGRAPHIC
ANALYSIS
14. WEAKNESS
STRENGTHS
•Global presence
•Many variants.
•Brand awareness
•Logo famous
•Strong marketing
and advertising
OPPORTUNITIES
•Aggressive
acquisitions
•Increase in demand
for bottled water
•Growth of Hispanics
•Negative publicity
•Low profits in strong area
•Decline in cash flow
•Supply is restricted
THREATS
•Intense competition
•Slowdown in rural
•Demand
•Negative health effect
15. GROWTH STRATEGY
– CORPORATE LEVEL
STRATEGY
– FORWARD
INTEGRATION STRATEGY
– JOINT VENTURES
– MARKET
DEVELOPMENT
– PRODUCT
DEVELOPMENT
19. CORPORATE SOCIAL RESPONSIBILITY
•
The coca-cola system in Vietnam and
the local people’s 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.
•
Canada’s 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.
20. 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
