The document provides details on Coca-Cola's strategic analysis and implementation plan. It discusses Coca-Cola's background, mission/vision, environmental scan, SWOT analysis, and recommended strategies. The key recommendations are to pursue a focus strategy combining cost leadership and differentiation, a market growth grand strategy, and utilize all three value disciplines. An implementation plan is proposed to build on Coca-Cola's structure and continue growth through investment, innovation, and analyzing costs/opportunities in current markets.
1. Coca-Cola Strategic Analysis Implementation
STR/581
Coca-Cola Strategic Analysis Implementation
1
Executive Summary
Largest Beverage Provider
Almost $2 Billion in sales
Presence in 200 countries
Mission, Vision, and Value Statements
Environmental Scan
Internal and External
SWOT Analysis
The Coca-Cola Company is an almost $2 Billion company that
is arguable the world’s largest beverage provider. With presence
in over 200 countries Coca-Cola has grown to become a
household name since its start in Atlanta, Georgia in 1886.
Coca-Cola’s mission “To refresh the world...To inspire
moments of optimism and happiness...To create value and make
a difference” is achieved in conjunction with its vision that is
2. surrounding six “Ps”. People, Portfolio, Partners, Planet, Profit,
and Productivity all working together to be a great place to
work, offer drinks consumers want while being conscious of the
world and Coca-Cola stakeholders.
In order to be a continually successful company, Coca-Cola
understands the need for environmental analysis to include
internal and external forces driving the business. Social factors
such as the fact that consumers are becoming more health
conscious and economic factors such as inflation, recession and
unemployment rate should be considered in the environmental
scan.
The industry environment should also be considered which
includes demographics, competitors, and consumer preferences.
Internal and external environments can be evaluated with the
help of a SWOT analysis.
The SWOT analysis for The Coca-Cola Company reveals that
the major strength of the firm is the brand name and the
recognizable aspects of it. A weakness as well as an opportunity
is the increased awareness of healthy options even with
beverages. Another opportunity is that of additional flavors. A
threat, as with all companies, is Coca-Cola’s competitors.
Keeping ahead of competitors in terms of technology, flavors,
and overall customer service will help alleviate the threat of
competing firms.
2
Executive Summary Continued
Generic, Grand, Global Strategies
Value Disciplines
Implementation Plan
Risk Management Plan
3. Generic, grand, and global strategies are recommended in
addition to value disciplines. Focus strategies of both cost
leadership and differentiation are recommended along with
market growth. Each of the three value disciplines of
operational excellence, product leadership, and customer
intimacy are recommended as there are benefits for each in
different areas of the Coca-Cola business. These strategies will
support the implementation plan that begins with building upon
the already successfully developed business structure of Coca-
Cola, and continuing a successful path for the growth of the
business.
The same strategies will be applied for organizational change
management. Both long term and short term goals will be
addressed and a risk management plan put in place. The risk
management plan will identify and prioritize risks that include
new government regulations and potential major changes to the
operations. The Coca-Cola Company will look at expanding its
product line globally creating a wider consumer market and
consider offering new products in other segments of the market.
Patent infringement and poor product performance will also be
addressed in the risk management plan.
3
Company Background
Coca-Cola Start
Dr. John S. Pemberton
1886
Atlanta, Georgia
Sold at Jacob’s Pharmacy
Coca-Cola Name
Frank M. Robinson
Advertising
4. In 1886, Dr. John S. Pemberton, a pharmacist from Atlanta,
Georgia created a flavored syrup and took it to his
neighborhood pharmacy where it was mixed with a carbonated
water. The beverage that came from this mixture was called
refreshing and delicious by those who tasted it. Dr. Pemberton’s
bookkeeper, Frank M. Robinson, suggested the name Coca-Cola
because the two letter “C”s would look well in advertising and
the Coca-Cola brand was born. Mr. Robinson was also the man
who penned the well-known Coca-Cola script still used today
(The Coca-Cola Company, 2012). Coca-Cola was sold for just
five cents per glass and averaged only nine servings per day.
4
Company Background Continued
1888
Portions of Company sold
Distribution beyond Atlanta
1894
Moved Beyond Soda Fountains
1899
Purchase of bottling rights
1977
Bottle trademarked
In 1888, Dr. Pemberton sold portions of his business with the
majority going to Asa Candler, an aTlanta businessman. Candler
5. began distributing Coca-Cola beyond Atlanta. Coca-Cola was
originally sold only in soda fountains and in in 1894, Joseph
Biedenharm installed a bottling company in the back of his soda
fountain making Coca-Cola “portable”. Fiver years later the
bottling rights were purchased from Candler by three
businessmen for just $1. It wasn’t until 1977 that the unique
Coca-Cola bottle was trademarked ("Coca-Cola
Journey", 2017).
5
Current Company Status
World’s largest beverage company
500 brands
3900 beverage choices
1.9 Billion servings daily
Over 200 countries
The Coca-Cola Company is now the world’s largest beverage
company with more than 500 brands and almost 3,900 beverage
choices. More than 1.9 billion servings of Coca-Cola’s
beverages are consumed in over 200 countries each day.
According to “Coca-Cola Journey” (2017), “each Coca-Cola
product undergoes nearly 450 different tests to ensure that the
ingredient and packaging quality meets Company standards
(About Us: Coca-Cola Beverages and Products).
6
6. Mission Statement
Our mission is:
To refresh the world in mind, body and spirit
To inspire moments of optimism and happiness through our
brands and actions
To create value and make a difference.
7
Vision Statement
People: Inspiring each other to be the best we can be by
providing a great place to work
Portfolio: Offering the world a portfolio of drinks brands that
anticipate and satisfy people's desires and needs
Partners: Nurturing a winning network of partners and building
mutual loyalty
Planet: Being a responsible global citizen that makes a
difference by helping to build and support sustainable
communities
Profit: Maximizing long-term return to shareholders, while
being mindful of our overall responsibilities
Productivity: Being a highly effective, lean and fast-moving
organization.
Coca-Cola’s mission and vision work in cohesion, they both
7. support each other. Both mission and vision addresses customer
market; “to inspire moments of optimism and happiness and in
its 4vision it’s to; bring the world a portfolio of quality
beverage brands that anticipate and satisfy peoples desires and
need” (coca -cola.com).
8
Value Statement
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
9
Environmental Scan
Monitoring of external and internal environments
Remote environment
Social factors
Economic factors
Industry environment
Demographics
Competitors
8. Consumers preference
One thing to look at when doing an environment scan is the
remote environment. Remote environment as described by
Business Dictionary (2016) is the “ecological, political, social,
and technical factors or forces that affect a firm’s decision-
making abilities and freedom, but are beyond its control or
influence.” One such social factor is the fact that consumers are
becoming more health conscious.
A second important aspect is the economic factor. Economic
factors such as inflation, recession and unemployment rate can
impact Coca Cola negatively or positively depending on how
low or high the numbers are.
10
Internal Environment
Firm’s Resources
Employees
Management
Corporate Culture
Vision
People, Portfolio, Partners, Planet, Profit, Productivity
Values
Leadership, Collaboration, Integrity, Accountability, Passion,
Diversity, Quality
9. The Coca-Cola Company’s internal environment includes the
firm’s resources such as employees, management, and corporate
culture including its vision and values. The company’s vision
which concentrates on people, portfolio, partners, planet, profit,
and productivity guides all aspects of the employees at The
Coca-Cola Company. The company’s values which include
leadership, collaboration, integrity, accountability, passion,
diversity, and quality will allow Coca-Cola to grow in the
future. Coca-Cola’s leadership value is based on the courage to
shape a better future and the company has recently changed
leadership with the intention of continuing down this path.
11
External Environment
Key insight into outside factors that influence a business’s
operations.
Organization needs to act/react to these changes to continue
flow of operations.
Information gathered can be utilized for enhanced operation
strategies.
External environment consists of two main types of
environments
Micro Environment
Macro Environment
Conducting an evaluation of The Coca-Cola Company's external
operating environment gives valuable insight into the outside
factors that can influence the organizations operations. The
organization itself will need to be able to adapt to these changes
in order to continue the flow of its operations. The information
and data collected can be utilized through additional analysis
10. and tools for enhancing operations strategies of the
organization. The external environment can be classified into
two types of environments: a micro environment and a macro
environment.
12
Micro and Macro Environment
Micro Environment: specific factors that affect the activities of
the organization and are directly closer to the operations.
Market structure
Consumers
Competition
suppliers
Macro Environment: general outside factors that affect the
organization; has no control over.
Global
Technological
Social culture
Economy
Government/ political
As mentioned in the previous slide, the external environment
can be classified into two types. the micro environment which
focuses on specific factors that affect the activities of The
Coca-Cola Company's operations and generally directly
influence the operating process. These factors include the
market structure, the consumers or customers who purchase
Coca-Cola products, the competition from other major
companies in the industry, and suppliers who provide the raw
materials.
The macro environment focuses on the general outside factors
11. that a can affect the organization and has no control over. These
can be global factors, technological advancement especially
with research and development, the social culture and attitudes
towards soda products, the economy of the country such as GDP
as well as the economical and political stability, and
government rules and regulation policies for consumer products.
13
S.W.O.T
Strengths
The brand
Global presence
Loyal customers
Weaknesses
Water management
Healthy options
Branching out
Coca-Cola brand posses the largest portfolio of product in the
beverages industry. By already having a strong brand Coca-Cola
is able to introduce a number of new product flavors like
Vanilla Coke and Limon Coke. Its unique product along with its
global population has allowed for the brand to be found in over
200 countries across the world and worth about 79.2 billion
dollars. It is important with having such a large brand that the
distribution network is where it needs to be to allow the cut of
cost along with the mass production needed to produce the
quality of product that the loyal consumers are used to. A part
of Coca-Cola’s weakness is its lack of healthy options. For a
company to produce so many different products and team with
12. so many other companies, it still lacks availability of a healthy
options for those looking to have a healthier lifestyle. Unlike its
competitor, Pepsi, Coca-Cola has yet to branch out beyond
beverages. Pepsi has teamed with Lays to increase their revenue
and Coca-Cola could do the same (Bhasin, 2017).
14
S.W.O.T
Opportunities
Expansion
Diversification
Developing nations
Threats
Competitors
Healthier Options
There are a number of opportunities available for the company.
To start, because of the points mentioned in the strengths Coca-
Cola has the opportunity to become more innovated with
products offered. This would included adding more favor
options and teaming with other company’s and brands to expand
on the different product types offered. There is also an
opportunity in introducing carbonated drinks to developing
countries especially those who may suffer from hotter summers
and may not be as familiar with the products (Bhasin,
2017). Some threats that the company can face is there are a
number of different direct and indirect competitors. There are
different beverage companies who are offering another
alternative to healthy drinking that can maybe one day become a
problem for Coca-Cola. Another threat is the lack of a healthy
options. Carbonated drinks are not the best option for a healthy
13. beverage and with Obesity at an all time high, people are being
to try to develop a healthier lifestyle and right now Coca-Cola
does not give them many options to do that.
15
Strategic Recommendation
Generic Strategy: Focus
Grand Strategy: Market Growth
Global Strategy
Value Disciplines:
Operational Excellence
Product Leadership
Customer Intimacy
After reviewing the strategic recommendations of each team
member, it is decided that a combination of the generic focus
strategy, the grand strategy market growth, global strategy, and
all three value disciplines operational excellence, product
leadership, and customer intimacy will be utilized.
16
Generic Strategy: Focus
Cost Strategy
Differentiation Strategy
The focus strategy incorporates both cost and differentiation
strategies cohesively to produce a focus strategy that can more
14. accurately strategize our market and achieve our business goals.
The focus strategy will allow Coca-Cola to provide products at
acceptable costs while remaining differentiated from the rest of
the beverage market.
17
Grand Strategy: Market Growth
The grand strategy market growth will add customers in
channels where Coca-Cola is already located. Coca-Cola will
need to focus on each factor to accommodate the niche of each
of its regions throughout the world to accomplish the market
growth goals.
18
Global Strategy
The global strategy is recommended simply because Coca-Cola
is a global company and there needs to be a strategy to
accommodate our current global markets. The strategy will be
beneficial to include new means of acquiring more countries
around the world for business with the goal of acquiring every
country in the world.
19
15. Implementation Plan: Objectives
The objectives of the strategic plan are to build upon the
already successfully developed business structure for Coca-
Cola, and continue a successful path for the growth of the
business. The strategic plan will allow Coca-Cola to create
goals and more value for the business and its brands.
20
Functional Tactics:
Separate each strategy recommended, develop them
Analyze cost and differentiation of current markets
Analyze current markets and regions for growth opportunities
Finding new global markets to move into
Coca-Cola will separate each strategy recommended and
develop upon them immediately. In the generic strategy Coca-
Cola will analyze cost and differentiation of their current
markets and provide feedback of the current conditions. In the
grand strategy Coca-Cola will analyze the current markets and
regions for necessary changes or innovations that may be
necessary for growth. The global strategy will focus on
supporting our current global markets while finding new global
markets to move into.
16. 21
Action Items:
Investment in technology and more efficient logistics
Find lower priced ingredients for the manufacturing process
Action on current markets with advertising and innovation
The current action items for Coca-Cola are the investment in
technology and more efficient logistics to support the analysis
of costs for the focus strategy. Cost leadership will require
Coca-Cola to find lower priced ingredients for the
manufacturing process or purchasing the ingredients in larger
bulk for a lower price. The grand strategy will require
immediate action upon the current markets with advertising and
innovation for domination and growth.
22
Milestones & Deadlines
Monthly Progress Reports
Quarterly Review and Reevaluation
Milestones will include monthly progress reports for each
strategy, the successful execution of action items, and the
overall success of each strategic plan and its goals for the
company. The deadline for the strategic plan’s full
implementation will be 2 years after the start date. The strategic
plan will be reevaluated and adjusted each quarter as necessary.
17. 23
Tasks & Task Ownership
Tasks will be given by the CEO to each of the team members as
necessary. Each team member will be placed on one of the
strategic plans exclusively with another member and expected to
work cohesively to carry out the plan. All team members will
collaborate each quarter and aid each other as necessary on all
plans.
24
Resource Allocation
Coca-Cola currently has multiple resources that will allow the
successful implementation of the strategic plan. All team
members are able to allocate resources as necessary to their
strategy. Each quarter the team will approve the initial plans of
resource allocation and be available for collaboration if
necessary to reevaluate.
25
Organizational Change Management Strategies
Utilizing a combination of strategies to enhance organization
18. change management.
Generic Strategy.
Cost Leadership strategy.
Value Discipline.
Operational Excellence.
The organizational change management strategies to be applied
for The Coca-Cola company are a combination of generic,
grand, and international strategies as well as value disciplines.
Generic strategies in the cost leadership strategy will provide
The Coca-Cola company with product positioning through
strategic pricing methods as compared to key competitors in the
industry by reducing production costs as well as producing
products on a large scale to minimize operating costs. Value
discipline in operational excellence focuses on cost, efficiency,
and product volume will tie into the cost leadership strategy by
streamlining the process and standardization of products for
overall cost reduction.
26
Organizational Change Management Strategies
Grand Strategy.
Growth strategies.
Expansion of operations and product development.
Horizontal integration by acquisition growth.
International Strategy.
Globalization.
Company reinvestment.
Grand strategies are aimed in achieving the long term goals and
19. objectives of The Coca-Cola Company and will focus on
growth. Growth strategies can be applied that focus on
expansion of operations, product development by modifying
existing products that can be remarketed to consumers as well
as introducing new products to consumers to earn premium
margins for new products and horizontal integration by
acquisition growth of similar companies. . The International
strategy will be focused on globalization. Since The Coca-Cola
Company has already established recognizable logos and
trademarks as well as the foundation of the company operating
in soda production, The Coca-Cola Company can maximize on
efficiency along with continued investment in the company as a
global strategy.
27
Risk Management Plan
Identify and address risks to carry out implementation plan.
Identify and prioritize risks and establish measurement for
minimizing risks.
A continuous process to monitor risks.
Identifying and addressing risks are necessary in being able to
carry out the implementation plan. There are different risks that
that are presented that must be addressed early on to minimize
its impact and any complications that can arise further along the
process and the risk management plan should be considered a
continuous process in monitoring identified risks and external
factors that can also impact the company negatively.
28
20. Risk Management Plan
New regulations posed by government bodies that restrict
marketing and production or require additional regulations for
soda production.
Food and Drug Administration, European Food Safety Authority
etc.
Adaptable to major changes to meet compliance.
Economic Downturn.
Pose a threat to operations and sales of company.
Procedures set in place for economic shifts.
Reducing resources, reroute product volume, reevaluate budget
criteria.
Some of the risks identified are new regulations by government
bodies that restrict marketing and production or require
additional regulations for soda production. Government body
regulations such as through the Food and Drug Administration
and European Food Safety Authority may introduce new laws or
amend acts that can impact the company and major changes will
require adaption in order to be in compliance with the law.
Economic downturns can also pose a threat to the operations
and sales of The Coca-Cola Company. Certain procedures will
need to be set in place when these economic shifts take place to
sustain its business. these procedures can include reducing
resources or raw materials, rerouting product volume and
reevaluating budget criteria needs.
29
21. Risk Management Plan
Oversaturation of local market.
Numerous competitors offering the same product.
Consider offering new products in other segments of the market.
Look into countries with wider consumer market.
Patent infringement concerns.
Branding awareness concerns.
New or enhanced product ideas.
Poor product performance.
Product image and taste
Understanding consumer responsiveness to soda products.
Oversaturation of the local market is another risk when there
are numerous competitors offering the same product. The Coca-
Cola Company will need o consider offering new products in
other segments of the market, capitalizing on brand awareness
and consider operating and increasing sales in countries that
have a wider consumer market. Patent infringement concerns
are another risk in terms of new or enhanced product ideas that
may have been patented by others as well as branding concerns.
Poor product performance is the last identified risk which can
be influenced through product image and tastes to consumers. It
is necessary to understand consumer responsiveness to soda
products which can vary from country to country and ad in
determining well a product will perform on the market.
30
Conclusion
Understanding internal and external factors
SWOT Analysis
Strategic Recommendation
22. Implementation Plan
Risk Management Plan
In conclusion, Coca-Cola is a company that has been around for
a long time. Its mission, vision and value statement gives its
consumers an understanding of where and what they stand for as
a company. Assessing the company’s internal and external
environment helps to provide major insight on information
needed to help further the company’s operations. This
information can also help the company make the necessary
changes to help improve on sales and company/ customer
relationship. An evaluation on the company’s current
competitive position showed different opportunities available to
further the company’s competitive advantage as well as to
maintain it. Conducting a SWOT analysis gives the company a
focal point on different areas to help increase productivity.
Strategic recommendations can help Coca-Cola evaluate what is
working and what is not and implement any changes
accordingly. Coca-Cola’s implementation plans will allow all
employees to be on the same page as well as give employees a
clear understand of their role within the company. The
implementation plans must be realistic, achievable and
measurable and a risk management plan should be in place in
case anything from the plan needs to be changed or removed.
31
References
Bhasin, H.SWOT of Coca Cola. (2017). Retrieved from
http://www.marketing91.com/swot-coca-cola/
Coca-Cola Company. (2016). Retrieved from http://www.coca-
colacompany.com/our-company/leadership
Coca-Cola Company. (2017). Mission, Vison and
Value. Retrieved from http://www.coca-colacompany.com/our-
company/mission-vision-values
23. The Coca-Cola Company. (2016). Coca-Cola Journey. Retrieved
from http://www.coca-colacompany.com/press-center/press-
releases/the-coca-cola-company-announces-senior-leadership-
succession-plan
32
Executive Summary
The Coca-Cola Company is an almost $2 Billion company that
is arguable the world’s largest beverage provider. With presence
in over 200 countries Coca-Cola has grown to become a
household name since its start in Atlanta, Georgia in 1886.
Coca-Cola’s mission “To refresh the world...To inspire
moments of optimism and happiness...To create value and make
a difference” is achieved in conjunction with its vision that is
surrounding six “Ps”. People, Portfolio, Partners, Planet, Profit,
and Productivity all working together to be a great place to
work, offer drinks consumers want while being conscious of the
world and Coca-Cola stakeholders.
In order to be a continually successful company, Coca-Cola
understands the need for environmental analysis to include
internal and external forces driving the business. Social factors
such as the fact that consumers are becoming more health
conscious and economic factors such as inflation, recession and
unemployment rate should be considered in the environmental
scan.
The industry environment should also be considered which
includes demographics, competitors, and consumer preferences.
Internal and external environments can be evaluated with the
help of a SWOT analysis.
The SWOT analysis for The Coca-Cola Company reveals that
the major strength of the firm is the brand name and the
recognizable aspects of it. A weakness as well as an opportunity
24. is the increased awareness of healthy options even with
beverages. Another opportunity is that of additional flavors. A
threat, as with all companies, is Coca-Cola’s competitors.
Keeping ahead of competitors in terms of technology, flavors,
and overall customer service will help alleviate the threat of
competing firms.
Generic, grand, and global strategies are recommended in
addition to value disciplines. Focus strategies of both cost
leadership and differentiation are recommended along with
market growth. Each of the three value disciplines of
operational excellence, product leadership, and customer
intimacy are recommended as there are benefits for each in
different areas of the Coca-Cola business. These strategies will
support the implementation plan that begins with building upon
the already successfully developed business structure of Coca-
Cola, and continuing a successful path for the growth of the
business.
The same strategies will be applied for organizational change
management. Both long term and short term goals will be
addressed and a risk management plan put in place. The risk
management plan will identify and prioritize risks that include
new government regulations and potential major changes to the
operations. The Coca-Cola Company will look at expanding its
product line globally creating a wider consumer market and
consider offering new products in other segments of the market.
Patent infringement and poor product performance will also be
addressed in the risk management plan.