Coke | Coca-Cola | Varun Daahal


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The Presentation is about :

- Coca Cola Comapny
- Internal & External factors analysis
- Strategic decision matrix
- Coca Cola's Strategy

This Presentation done as a part of MBA class assessment in 2010

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  • * All the data is collected from Internet. I don't hold any ownership. Analysis is purely based on my understanding and perception
  • Coke | Coca-Cola | Varun Daahal

    1. 1. * All the data is collected from Internet. I don't hold any ownership. Analysis is purely based on my understanding and perception Varun Daahal (MD 8017)
    2. 2. Brief History <ul><li>The Coca-Cola Company was originally established as the J. S. Pemberton Medicine Company, a co-partnership between Dr. John Stith Pemberton and Ed Holland . </li></ul><ul><li>In 1884, the company became a stock company and the name was changed to Pemberton Chemical Company. </li></ul><ul><li>Finally in October 1888, the company received a charter with an authorized capital of $50,000 </li></ul>
    3. 3. Mission <ul><li>Our Roadmap starts with our mission, which is enduring. It declares our purpose as a company and serves as the standard against which we weigh our actions and decisions. </li></ul><ul><li>To refresh the world... </li></ul><ul><li>To inspire moments of optimism and happiness... </li></ul><ul><li>To create value and make a difference. </li></ul>
    4. 4. Vision <ul><li> Our vision serves as the framework for our Roadmap and guides every aspect of our business by describing what we need to accomplish in order to continue achieving sustainable, quality growth. </li></ul><ul><li>People: Be a great place to work where people are inspired to be the best they can be. </li></ul><ul><li>Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs. </li></ul><ul><li>Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value . </li></ul><ul><li>Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities . </li></ul><ul><li>Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities. </li></ul><ul><li>Productivity: Be a highly effective, lean and fast-moving organization. </li></ul>
    5. 5. SWOT Analysis <ul><li>Strengths   </li></ul><ul><li>Coca Cola is an extremely recognizable company. Popularity is one of its superior strengths that is virtually incomparable.  </li></ul><ul><li>Coca Cola is known very well worldwide.  </li></ul><ul><li>It's branding is obvious and easily recognized. </li></ul><ul><li>Things like, logos and promos shown on t-shirts, hats, and collectible memorabilia. </li></ul><ul><li>Without a doubt, no beverage company compares to Coca Cola's social popularity status. </li></ul><ul><li>Some people buy coke, not only because of its taste, but because it is widely accepted and they feel like they are part of something so big and unifying. </li></ul>
    6. 6. <ul><li>Weakness </li></ul><ul><li>Word of mouth is probably a strength and weakness of every company. While many people have good things to say, there are many individuals who are against Coca Cola as a company, and the products in which they produce. </li></ul><ul><li>Another aspect that could be viewed as a weakness is the lack of popularity of many of Coca Cola’s drinks . Many drinks that they produce are extremely popular such as Coke and Sprite but this company has approximately 400 different drink types </li></ul><ul><li>Another weakness that has been greatly publicized is the health issues that surround some of their products. It is known that a popular product like coke is not very beneficial to your body and your health. </li></ul>
    7. 7. <ul><li>Opportunities </li></ul><ul><li>An opportunity that we have seen being put to use before is the ability for Coca Cola to buy out their competition </li></ul><ul><li>Coca Cola also has the opportunity to advertise its less popular products. </li></ul><ul><li>Coca Cola is known well throughout 90% of the world population today . </li></ul><ul><li>Coca Cola has an opportunity to continue to widen the gap between them and their competitors. </li></ul>
    8. 8. <ul><li>Threats </li></ul><ul><li>Despite the fact that Coca Cola dominates its market, it still has to deal with many threats. </li></ul><ul><li>Even though Coca Cola and Pepsi control nearly 40% of the entire beverage market, the changing health-consciousness attitude of the market could have a serious effect on Coca Cola. </li></ul><ul><li>In today’s world, people are constantly trying to change their eating and drinking habits. This could directly affect the sale of Coca Cola’s products. </li></ul><ul><li>Other threats are of course the competition. </li></ul><ul><li>Coca Cola needs to be careful that Pepsi does not grow to be a more successful drink. </li></ul><ul><li>Other product such as juices, coffee, and milk are threats. </li></ul>
    9. 9. Internal And External Analysis…
    10. 10. Internal Factors <ul><li>STRENTHS </li></ul><ul><li>Inventory management </li></ul><ul><li>Employee moral </li></ul><ul><li>Customer loyalty </li></ul><ul><li>Expertise </li></ul><ul><li>Expands product line </li></ul><ul><li>Collaboration </li></ul><ul><li>Advertisements </li></ul><ul><li>Global expansion </li></ul><ul><li>RATING </li></ul><ul><li>3 </li></ul><ul><li>4 </li></ul><ul><li>3 </li></ul><ul><li>4 </li></ul><ul><li>3 </li></ul><ul><li>2 </li></ul><ul><li>4 </li></ul><ul><li>3 </li></ul>
    11. 11. Internal Factor <ul><li>Weaknesses </li></ul><ul><li>Weak in non carbonated sector </li></ul><ul><li>Obesity issue </li></ul><ul><li>Less control over the management </li></ul><ul><li>More trend towards healthy eating and drinking </li></ul><ul><li>Rating </li></ul><ul><li>2 </li></ul><ul><li>3 </li></ul><ul><li>3 </li></ul><ul><li>4 </li></ul>
    12. 12. External Factors <ul><li>Opportunities </li></ul><ul><li>Untapped snacks market </li></ul><ul><li>Favorable trade regulation </li></ul><ul><li>Global culture </li></ul><ul><li>Presence in many market </li></ul><ul><li>Rating </li></ul><ul><li>1 </li></ul><ul><li>4 </li></ul><ul><li>4 </li></ul><ul><li>4 </li></ul>
    13. 13. External Factor <ul><li>Threats </li></ul><ul><li>Ban of soft drinks in public schools </li></ul><ul><li>Low value of dollar in competitive market </li></ul><ul><li>Majority of coke revenues come from outside of US </li></ul><ul><li>Competitors already in snacks market </li></ul><ul><li>Health conscious </li></ul><ul><li>Rating </li></ul><ul><li>3 </li></ul><ul><li>3 </li></ul><ul><li>4 </li></ul><ul><li>4 </li></ul><ul><li>2 </li></ul>
    14. 14. Summary <ul><li>The Coca-Cola Company is the world's largest beverage company, largest manufacturer, distributor and marketer of non-alcoholic beverage concentrates and syrups in the world, and one of the largest corporations in the United States. Coca-cola can enter into the snacks market as coke has many favorable conditions as its in different product line as well as expertise. </li></ul>
    15. 15. Porter’s 5 forces <ul><li>Entry Barriers are –HIGH </li></ul><ul><li>Rivalry among competitors – HIGH </li></ul><ul><li>Bargaining power of suppliers – Moderate </li></ul><ul><li>Bargaining power of Consumers – Moderate </li></ul><ul><li>Threat of substitute - Moderate </li></ul>
    16. 16. Facts about Coca-cola <ul><li>Coca-cola was first green color </li></ul><ul><li>Coca-Cola is called “Coca-Cola” because of the original ingredients used in the medicine, Coca leaves and Kola seeds </li></ul><ul><li>It was made for a hangover cure & cure for headaches </li></ul>
    17. 17. <ul><li>Coca-Cola' is the most recognized trademark, recognized by 94% of the world's population </li></ul><ul><li>In a competition “who can drink the most coke in one go” one drank 8 bottles of coke and died on the spot </li></ul><ul><li>coca-cola means “to make mouth happy” in Chinese </li></ul><ul><li>In Hong Kong it is sometimes served hot as a remedy for colds! </li></ul>
    18. 18. Competitor Profile Matrix <ul><li>Pepsi co </li></ul><ul><li>Cadbury Schweppes PLC </li></ul>
    19. 19. <ul><li>Critical Success Factors </li></ul><ul><li>Product Line </li></ul><ul><li>Advertisement </li></ul><ul><li>Financial Position </li></ul><ul><li>Product Quality </li></ul><ul><li>Global Expansion </li></ul><ul><li>Relations (Employee/Union) </li></ul><ul><li>Market Share </li></ul><ul><li>Experience/Expertise </li></ul><ul><li>Ranking </li></ul><ul><li>4 </li></ul><ul><li>3 </li></ul><ul><li>3 </li></ul><ul><li>3 </li></ul><ul><li>3 </li></ul><ul><li>3 </li></ul><ul><li>2 </li></ul><ul><li>3 </li></ul>* 1=Major Weakness, 2= Minor weakness, 3= Minor strength, 4=Major strength
    20. 20. <ul><li>Critical Success Factors </li></ul><ul><li> Ranking </li></ul><ul><li>4 </li></ul><ul><li>3 </li></ul><ul><li>3 </li></ul><ul><li>3 </li></ul><ul><li>2 </li></ul><ul><li>3 </li></ul><ul><li>4 </li></ul><ul><li>3 </li></ul><ul><li>Product Line </li></ul><ul><li>Advertising </li></ul><ul><li>Financial Position </li></ul><ul><li>Product Quality </li></ul><ul><li>Global Expansion </li></ul><ul><li>Relations (Employee/Union) </li></ul><ul><li>Market Share </li></ul><ul><li>Experience/Expertise </li></ul>* 1=Major Weakness, 2= Minor weakness, 3= Minor strength, 4=Major strength
    21. 21. Recommendations <ul><li>Most of the snack market is tapped by Pepsi & Cadbury. So it is better to enter into Snack market with help of strategic alliance with any market follower </li></ul><ul><li>By following growth strategy with Diversification strategy Utilizing its distribution channels </li></ul>
    22. 22. Conclusion <ul><li>Even though Pepsi & Cadbury are market challengers& followers, most of their revenues(60%) are from the Snack market. This gives them an advantage in Earnings, investment in diversified product lines </li></ul><ul><li>Coke entering into snack market provides an advantage of more revenue generation </li></ul>
    23. 23. <ul><li>Thank You </li></ul>Any Queries?