Coca cola strategic management


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Coca cola strategic management

  1. 1. Contents Coca-Cola History Vision, Mission & Objectives PEST Analysis Porter's 5 Forces SOWT Analysis Corporate Strategy Business Strategy Coca-Cola Life Cycle BCG Matrix Recommendations
  2. 2. COCA-COLA History  Coca-Cola history began in 1886 when the curiosity of an Atlanta pharmacist, Dr. John S. Pemberton, led him to create a distinctive tasting soft drink that could be sold at soda fountains.  He created a flavored syrup, took it to his neighborhood pharmacy, where it was mixed with carbonated water and deemed "excellent" by those who sampled it.  Dr. Pemberton's partner and bookkeeper, Frank M. Robinson, is credited with naming the beverage "CocaCola" as well as designing the trademarked, distinct script, still used today
  3. 3. 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
  4. 4. Coca-cola Products
  5. 5. Our vision serves as the framework for our road map and guides every aspect for our business by describing what we need to accomplish in order to continue achieving sustainable , quality growth  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.
  6. 6.  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 fastmoving organization
  7. 7. Our Roadmap start with our mission, which is enduring. It declares our purpose as a company and serves as the standard against which we weigh our action and decisions.  To refresh the world.  To inspire moments of optimism happiness.  To create value and make a difference . and
  8. 8. The main objectives for the Coca-Cola Company are  To be globally knows as a business that conducts business responsibility and ethically.  To accelerate sustainable growth to operate in tomorrow’s world.  To maximize share owner value over time.
  9. 9.  To maximize long-term cash flow  To ensure the strongest and most efficient production, distribution, and marketing systems possible By having these objectives , it forms the foundations for companies in decision making process .
  10. 10. Political Forces: *Stability of government ( after 25th Jan. and 30 June *Tax Law * Attitude towards foreign companies Economic Forces *Interest Rate *Inflation Rate *Energy cost &availability *Wages ( Low labor cost
  11. 11. Social Forces: *Population growth rate *Life style changes *Religious orientation (Ramadan Season) * Age distribution: 0-14 years: 32.3% - 15-24 years: 18% - 25-54 years: 38.3% (2013 estimate) Technological Forces: *Spending on R&D *Telecom Infrastructure *Internet availability *Media(TV&Radio
  12. 12. Medium Pressure Entry Barriers Low pressure High Pressure Bargaining Power of Suppliers Medium to High pressure Rivalry among Competition Threat of Substitute Low pressure Bargaining Power of Buyers
  13. 13. Threat of New Entrants: Medium Pressure      Economies of scale Switching costs Capital requirement Product differentiation (variety) Access to distribution channels
  14. 14. Threat of Substitute: Medium to High pressure  Availability of substitutes  Switching costs Coca-cola doesn’t really have an entirely unique flavor. In a blind taste test, people can’t tell the difference between Coca-Cola and Pepsi.
  15. 15. Bargaining Power of Buyers: Low pressure  The individual buyer has small pressure on Coca-Cola  Large retailers, like Carrefour, have bargaining power because of the large order quantity, but the bargaining power is lessened because of the end consumer brand loyalty.
  16. 16. Bargaining Power of Suppliers: Low pressure Raw materials of soft drink industry include CO2, water, sugar, syrup, plastic, glass, tins, etc.  Amount purchased from supplier  Switching costs  Suppliers forward integration
  17. 17. Rivalry Among Competition : High Pressure  Monopolistic competition  Product characteristics
  18. 18. Strengths 1. 2. 3. 4. 5. 6. 7. 8. Global presence Brand awareness Logo famous Strong marketing and advertising Customer loyalty Bargaining power over suppliers Corporate social responsibility Strong distribution channels Weaknesses 1. 2. 3. 4. 5. Negative publicity Low profits in strong areas Decline in cash flow Supply is restricted Significant focus on carbonated drinks 6. Brand failures or many brands with insignificant amount of revenues 7. Carbonated drinks have bad physical effects
  19. 19. Opportunities 1. Bottled water consumption growth 2. Increasing demand for healthy food and beverage 3. Growth through acquisitions Threats 1. 2. 3. 4. Changes in consumer preferences Water scarcity Negative health effect Decreasing gross profit and net profit margins 5. Competition from PepsiCo 6. Saturated carbonated drinks market
  20. 20. New Region New Products Horizontal Integration
  21. 21. High Relative Cost Low Low High Degree of Differentiation
  22. 22. Money Emerging Growth Maturity Declining SALES PROFIT Time Coca-Cola has more than Life Cycle , on which had a new products and in the same time they are on the Maturity stage
  23. 23. High Star Question Mark Cash Caw Dog Low High Low
  24. 24.       Coca-Cola should try to have product differentiation for carbonated drinks through R&D Coca-Cola should spend more R&D on avoiding bad physical effects of carbonated drinks. Coca-Cola should focus on non carbonated drinks as bottled water and healthy drinks Coca-Cola should start producing new products rather than beverages as food and snacks to enter a new life cycle Coca-Cola should think about Vertical Integration : - Backward Integration: Produce raw Material - Forward Integration : Distribution ( Coca-Cola Stores ) Coca-Cola's distribution channel is mostly through retails. Whereas the competitors also concentrates more on Restaurants and Coffee shops. Coca-Cola should try to increase their distribution in these areas .