strategic management presentation

1. STRATEGIC MANAGEMENT (301)
SUBMITTED TO :- SUBMITTED BY :
DR.VANDANA BHARTI RISHAV JAISWAL (MBAN1MG22115)
SUMANA PRADHAN BBAI1MG19002.INT
ARYAN AGARWAL (MBAN1MG22146)
ANUSHKA SHARMA (MBAN1MG22160)
AYUSHI JAIN (MBAN1MG22110)

2. COMPANY NAME :- COCO-COLA
TABLE OF CONTENT
• EXECUTIVE SUMMARY
• BRANDS OF COMPANY
• COMPANY BACKGROUND
• STATEMENT OF PROBLEMS
• ANALYSIS SECTION
• ALTERNATIVES
• DECISION CRITAREA
• DECISIONS
• IMPLEMENTATIONS&CONTIGENCY PLAN
• EXHIBITS
• REFERENCES

3. Executive summary of COCO-COLA
Coca-Cola, the product that has given the world its best-known taste was born in Atlanta, Georgia, on May 8,
1886. Coca-Cola Company is the world’s leading manufacturer, marketer and distributor of non-alcoholic
beverage concentrates and syrups, used to produce nearly 400 beverage brands. It sells beverage concentrates
and syrups to bottling and canning operators, distributors, fountain retailers and fountain wholesalers. Coca
Cola was first introduced by John Styth Pemberton, a pharmacist, in the year 1886 in Atlanta, Georgia when he
concocted caramel-colored syrup in a three-legged brass kettle in his backyard. 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. Carbonated water was teamed with the new syrup, whether by accident or otherwise,
producing a drink that was proclaimed “delicious and refreshing”, a theme that continues to echo today
wherever Coca-Cola is enjoyed. Coca-Cola originated as a soda fountain was only when a strong bottling
system developed that Coca-Cola became the world-famous brand it is today. The Company’s beverage
products comprises of bottled and canned soft drinks as well as concentrates, syrups and not-ready-to-drink
powder products. In addition to this, it also produces and markets sports drinks, tea and coffee

4. Brands of COCO-COLA
The Coca-Cola Company controls and markets more than 500 beverage brands, whose goods fall into various
categories such as energy, water, juice drinks, sports drinks, ready-to-drink teas and coffees, and sparkling
beverages.

5. Company background of COCO-COLA
The Coca-Cola Company, founded in 1886 in Atlanta, Georgia, by John S. Pemberton, has evolved
into one of the world's foremost beverage conglomerates. Initially sold at local soda fountains, it
quickly gained popularity and transitioned to a franchised bottling system, which fueled its expansion.
Coca-Cola's iconic script logo and innovative advertising campaigns, such as the creation of the
modern image of Santa Claus and the beloved polar bear mascots, have left an indelible mark on
popular culture. While its flagship product, Coca-Cola Classic, remains globally renowned, the
company has diversified its portfolio with offerings like Diet Coke, Sprite, and various acquisitions,
establishing a presence in over 200 countries. Coca-Cola is committed to corporate responsibility,
supporting environmental initiatives and community engagement while addressing challenges related to
health concerns and water usage. Despite these challenges, Coca-Cola continues to be a major player in
the global beverage industry, shaping consumer tastes and maintaining a consistent brand image
worldwide.

6. Statement of Problems for Coca-Cola (Strategic):
1. Declining Market Share: Coca-Cola faces a significant strategic challenge with its declining
market share in the carbonated soft drink industry, resulting in potential revenue loss and a weakened
competitive position. The magnitude of this problem is substantial, as it affects the core business.
2. Health and Wellness Trends: The increasing consumer shift towards healthier beverage options
poses a strategic problem for Coca-Cola, as it may lead to reduced demand for its sugary and calorie-
laden products. The consequence is moderate but could escalate if not addressed promptly.
3. Regulatory Pressure: Stricter government regulations and taxes on sugary drinks pose a strategic
problem for Coca-Cola, potentially increasing operational costs and impacting profit margins. This
issue has a moderate consequence.
4. Environmental Sustainability: The growing concern for environmental sustainability and plastic
waste is a strategic issue for Coca-Cola. Failure to address this problem adequately could result in
reputational damage and potential legal consequences, with a moderate consequence.

7. 5. Emerging Market Challenges: Coca-Cola's expansion into emerging markets faces challenges
related to local preferences, distribution, and competition, affecting growth opportunities. The
magnitude varies by region but is of strategic importance for long-term global expansion.
6. Supply Chain Disruptions: Disruptions in the supply chain, such as natural disasters or
geopolitical issues, can have a significant impact on Coca-Cola's operations and product availability,
with a moderate consequence.
7. Brand Perception: Maintaining a positive brand image in the face of evolving consumer
expectations and social media scrutiny is a strategic concern for Coca-Cola. Negative 10 perceptions
could harm customer loyalty and market position, with a moderate consequence.
8. Innovation and Diversification: Coca-Cola needs to continuously innovate and diversify its
product portfolio to adapt to changing consumer preferences and stay competitive in a rapidly
evolving beverage market. The consequence of not doing so is moderate but can grow over time.
9. E-commerce and Digital Transformation: The need to adapt to e-commerce trends and digitally
transform its business is a strategic challenge for Coca-Cola, impacting its ability to reach consumers
effectively in the digital age. The magnitude of this problem is moderate but growing.

8. Environmental analysis of coco- cola
PESTLEANALYSISOf Coca Cola

9. Porter’s Five Force Model used in Coca-Cola
1.Bargaining Power of Suppliers
• Many companies would not want to lose a huge customer like Coca-Cola.
• Coca-Cola has a large number of suppliers on the market.
• The switching costs for Coca-Cola are not so high that is why it likely has the largest customer of any of these suppliers.
2.Bargaining Power of Buyers
• The buyers can compare different alternatives easily with the other brands.
• There are a lot of buyers that are loyal to Coca-Cola.
• There are a lot of choices between different brands.
3. Threat of New Entrants
More brands are appearing in the market just like the Oishi products, and Zest-O products which are one of the leading food and beverages
companies here in the Philippines that usually have lower costs than the Coca-Cola products.
4.Threats of substitutes
There are many substitute brands of Coca-Cola in the market that are also good and with cheaper prices like the different beverages that we can
see in any store and market, just like Zest-O products. We all know that this company became one of the famous brands because of its non- 18
carbonated fruit juices which are made from a wide variety of fruits, including oranges, apples, grapes, pineapples, mangoes, and so forth.

10. 5.Competitive Rivalry between the Existing Players:There are a lot of beverage brands in the market that
becomes popular just like the top 10 most popular soft drinks which are: Coca-Cola, Pepsi, Diet Coke, Dr. Pepper, Mountain
Dew, SprDiet Pepsi, Coke Zero, Fanta and Mountain Dew because of their different and unique flavors (Foster, 2021).
SWOT Analysis of coco-cola

11. Competitive Profile Matrix
Based on the Competitive Profile Matrix, each company was evaluated based on their crucial success
factors. It shows here that Coca-Cola is the most competitive company among the three companies
with the highest spike of 3.8. Meanwhile, Pepsi is in the second position with a total score of 3.35.
Dr. Pepper is in the third position with a total point of 2.78. With this, in terms of industry key
success factors, Coca-Cola has the highest ranking.

12. On the Finances Leverage, it shows that as time goes by, the finance of the Coca-Cola Company increases as they sell more
products and earn more profit which will generate revenue in the future. Based on the graph, it shows that the number of sales
through the years is not that far from each other, however, it is projected that 2023 has the highest sales and EBITDA
Alternatives
1. Pepsi: One of the most well-known competitors to Coca-Cola, Pepsi offers a similar range of
carbonated beverages.
2. Dr Pepper: This unique soft drink has a distinct flavor that sets it apart from traditional colas.
3. Sprite: A lemon-lime flavored soda produced by The Coca-Cola Company. It's caffeine-free and
clear in color

13. 3. Sprite: A lemon-lime flavored soda produced by The Coca-Cola Company. It's caffeine-free and
clear in color.
4. Mountain Dew: Known for its citrus flavor and higher caffeine content compared to many
other sodas.
5. Root Beer: Brands like A&W and Barb’s offer a non-caffeinated, root beer-flavored alternative.
6. Ginger Ale: A non-caffeinated option, ginger ale is a popular choice for those looking for a
lighter, less sweet beverage.
7. Iced Tea: Unsweetened or lightly sweetened iced tea is a popular non-carbonated alternative.
8. Lemonade/Limeade: Freshly squeezed or commercially available lemonade or limeade
provides a refreshing and non-carbonated beverage option.
9. Flavored Water: Brands like LaCroix, Perrier, and other flavored sparkling waters offer a
carbonated, calorie-free alternative.
10. Fruit Juices: 100% fruit juices, like orange juice, apple juice, or grape juice, can be
alternatives, although they are usually higher in natural sugars.
11. Coffee: For a caffeinated alternative, coffee in various forms, such as iced coffee or cold brew,
is a popular choice.
12. Tea: Hot or cold tea, whether black, green, or herbal, is a diverse category with many flavor
options.

14. Decision criteria
1. Brand Image: Protecting and enhancing the brand image is vital for Coca-Cola. Decisions are likely made to
maintain a positive perception of the brand in the eyes of consumers.
2. Cost Efficiency: Operational efficiency and cost control are critical for any business. CocaCola is likely to
make decisions that optimize its supply chain, production processes, and distribution networks to manage costs
effectively.
3. Sustainability: As consumer awareness of environmental issues grows, companies are increasingly focused
on sustainability. Coca-Cola may have decision criteria related to environmentally friendly practices, including
packaging, sourcing, and production methods.
4. Regulatory Compliance: Adhering to local and international regulations is crucial for a multinational
company like Coca-Cola. Decision-making likely involves ensuring that products comply with health and safety
standards, labeling requirements, and other relevant regulations.
5. Distribution Channels: Decisions about how and where to distribute products are critical. Coca-
Cola likely assesses the most effective distribution channels to reach its target markets efficiently.
6. Risk Management: Identifying and mitigating risks is an important aspect of decisionmaking. Coca-Cola
likely assesses potential risks, including supply chain disruptions, geopolitical issues, and changes in consumer
behavior.

15. Implementation and contingency plan
Implementation Plan:
1. Define Objectives: Coca-Cola should clearly define the objectives of implementing a contingency plan.
This could include goals such as ensuring uninterrupted production and distribution, minimizing disruptions
to the supply cha
2. Risk Assessment: Conduct a comprehensive risk assessment to identify potential threats and
vulnerabilities that could impact the company's operations. This could involve analyzing factors such as
natural
3. Develop Contingency Strategies: Based on the identified risks, Coca-Cola should develop a range of
contingency strategies to address each potential threat. This may involve establishing backup production
facilities, diversifying suppliers, creating contingency stockpiles of key raw
4. Communication and Training: It is crucial to effectively communicate the contingency plan across all
levels of the organization and provide adequate training to employees.
5. Testing and Evaluation: Regularly test the contingency plan through simulation exercises and drills to
ensure its effectiveness and identify any gaps or areas for improvement.

16. Contingency Plan:
1. Production Continuity: In the event of a production facility shutdown, Coca-Cola should have backup
facilities or alternative production sites identified, which can be quickly activated to ensure production
continuity.
2. Supply Chain Management: To minimize disruptions in the supply chain, Coca-Cola should maintain a
diversified supplier base across different regions and establish solid relationships with alternative suppliers.
3.
4. Crisis Communication: Coca-Cola should have a well-defined crisis communication plan in place. This
includes designating a team responsible for communicating with stakeholders, including employees,
customers, investors, and the media during emergencies.
5. Business Continuity: A robust business continuity plan should be developed to outline steps for
maintaining essential functions and services during a crisis.
6. Regular Review and Update: The contingency plan should be regularly reviewed, updated, and tested to
ensure its relevance and effectiveness.

17. Exhibits (tables and charts)
Coca-Cola’s first-quarter 2021 results and provided an update on progress against its strategic initiatives:
Revenues: Net revenues grew 5% to $9.0 billion, and organic revenues (non-GAAP) grew 6%. This was driven by
a 5% growth in concentrate sales, while price/mix grew 1%. The quarter included five additional days, which
resulted in an approximate 6-point benefit to revenue growth.

18. The Income Statement Evolution shows the graph of the financial statement of the Coca-Cola Company starting from 2018,
2019, 2020, and in the projected years 2021, 2022, and 2023. Based on the coming years, Sales, Net Margin, Operating
Profit, Operating Margin, and Net Income will increase as indicated on the graph.