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 identify and characterize the different growth strategies used by Coca Cola• To know about the Coca-Cola Company’s strategies management process
COMPANY OVERVIEWType Soft Drink (Cola)Manufacturer The Coca- Cola CompanyFounder (s) John S. PembertonCountry of Origin United StatesIntroduced 1886Area Served Over 200 countriesFlavors Cola, Cola Green Tea, Cola Lemon, Cola Lemon Lime, Cola Lime, Cola Orange and Cola Raspberry.Employees 92,400Servings per Day 1.6 Billion
• Coca-Cola was first sold to the public in Atlanta at Jacob’s Pharmacy• Only 9 servings of the soft drink were sold each day• Sales for the first year were only $50• Today it has 3000 brands-200 nations
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 peoples 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.
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• Leadership: The courage to shape a better future• Collaboration: Leverage collective genius• Integrity: Be real• Accountability: If it is to be, its up to me• Passion: Committed in heart and mind• Diversity: As inclusive as our brands• Quality: What we do, we do well
Coca-Cola Bottles 1894 was the first time Coca-Cola was bottled1894- early 1900s 1905-1916 1915- today
EXTERNAL ENVIRONMENT POLITICAL ANALYSISENVIRONMENTAL ANALYSIS ECONOMIC ANALYSIS PESTLE ANALYSIS LEGAL SOCIO-ANALYSIS CULTURAL ANALYSIS TECHNOLOGY ANLYSIS
INDUSTRY ANALYSIS• The food and beverage industry encompasses harvesting, processing, milling, packaging, transport and distribution of products to consumers.• In 1999, the value of food and beverage industry shipments reached an estimated $487 billion.• The needs that customer might be seeking to satisfy are: ∙ Physiological: the need of special food items ∙ Economic: the need for good value for the price paid ∙ Social: a friendly atmosphere, to express feelings frankly ∙ Psychological: the need for enhancement of self‐esteem ∙ Convenience: the desire for someone else to do the work.
PORTER’s FIVE FORCEs MODEL Potential entrants Threat of new entrants Bargaining power Industry competitors of suppliersSuppliers Buyers Rivalry among Bargaining power existing firms of buyers Threat of substitutes Substitute products
Competitors Analysis• Competitors: PepsiCo, Parle Agro Products• Pepsi gives tough fight with almost similar investment, advertisement, Strategies and Products• Parle resurges with refreshing drinks as Appy Fizz, Fruity, LMN• PepsiCo also has a snack product line including Lays, Cheetos and Quaker OAT’s• PepsiCo provide carbonated drinks, Fruit Drinks and Packaged Drinking Water.
Comparison of financial highlightsCOMPANY NAME Coca cola Pepsi.coProfit Margin 33.768046 10.958194Asset Turnover 0.577 1.071Return on Assets 19.506218 11.736928Earning Per Share 5.12 3.97
Comparison b/w Coke vs. Pepsi slice cola 20%pepsi 35%45% thum mazza sup 80% 20% mirinda 25% fanta 75%
STRENGTHS- Strong brand image- Financially stable-Strong distribution channel-Heavy promotionalactivities-70% revenue-outside USA WEAKNESS -Health care issues. -Product offering restricted to beverages -Inability to launch new product.
OPPORTUNITIES- Large domestic market-Export potential-- Alliances and Merges THREATS - Changing consumers preference -legal issues -competition (Pepsi) -Large number of substitutes - Increased prices of raw materials