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Fils-Aime 13
Valdirene Fils-Aime
Michael Matvichuk
CMGMT 4140 -- Strategic Management
Project: Five-Step Strategic Management Plan Analysis
Coca-Cola Company in the beverages industry
Step I. Corporate Mission and Goals
Brief history of the background and evolution of the
organization
Coca-Cola Company is the manufacturer of Coke or Coca-Cola
soft drinks. The company was founded in 1886 by John
Pemberton. He was inspired by his curiosity as he stirred up a
fragrant, caramel-colored liquid that he brought down to a place
called Jacobs’ Pharmacy. There he added carbonated water and
let several customers sample the new concoction. Although John
Pemberton invented Coca-Cola, which is a carbonated soft
drink, he later sold it to businessman Asa Griggs Candler,
whose smart marketing tactics made the soft drinks to dominate
the world of beverages in the entire 20th century. During the
introduction stage into the market, the company used to sell
nine drinks in Atlanta per day, but currently it is selling more
than 19400 beverages every second around the globe (Moran).
Its advertising strategies have changed to reach greater markets.
Today Coca-Cola is one of the best-known brands around the
world. However, when the company started, it used free
coupons to promote its product. When Griggs Candler acquired
the company, his budget to promote the product was $11,000. In
2011, the company allocated $4 billion for the marketing of its
products (Moran). Also, over the decades the bottling of the
beverages has changed to differentiate it from other close
substitutes. These changes have also been seen in the company
logos.
Mission and Vision
Coca-Cola has aimed to maximize its profit while keeping
long-term sustainable growth in the beverage industry. The
mission statement of the company states that it aims to refresh
the world, inspire the moments of happiness and optimism, and
create value and build a difference in the world. The vision of
the company is their road map and acts as a guide to every
aspect of their business by explaining what ought to be
accomplished to achieve sustainable and quality growth around
the world. It appears that the vision of Coca-Cola consists of 6
P’s which are people, portfolio, partners, planet, profit, and
productivity. The company’s values include integrity,
collaboration, accountability, diversity, leadership, passion, and
quality (“Mission, Vision & Values”). The winning culture of
the company explains its behaviors and attitudes that will make
their vision 2020 a reality.
General Structure and Leadership Style
The organizational structure of the company is structured in
such a way that it operates smoothly, and the growth of the
company is enhanced. The company is composed of fifteen
board members who include the CEO of the company James
Quincey. The board members are all divided, and each of the
board heads several other committees. Currently, the company
is now divided into three regional groups, which include EMEA
(Europe, Middle East, and Africa), Asia Pacific and Latin
America (“The Coca-Cola Company Announces New
International Structure, Promotes Key Leaders”). Whenever
major regional or divisional decisions are required, all members
overlook the decision to ensure that the growth of the company
is sustained. The leadership style in this company is delegative
style itself. The company believes in the need to delegate duties
and rule instead of taking every responsibility in the company.
The organization’s-based functions are divided, and it ensures
that all the functions are not under the control of one entity and
the use of SME’s to function in every functional division is a
very ingenious strategy. This is a clear example of delegative
leadership. It includes Innovative Leadership, Cross Cultural
Leadership, and Visionary Leadership.
Statement of Issues
Coca-Cola is one the most identifiable international brand in the
world. On, May1, 2017 James Quincey replaced Muhtar Kent as
the CEO of the company. Kent had been the face of the
company for almost a decade. He joined the company in the late
1970s but became the CEO of the company in 2008 (“Fresh
Challenges for New Leader at Coke”). Like any other
traditional non-alcoholic company, Coca-Cola Company is
facing strategic challenges that seem to shape the whole
industry in the next few years. Some of the challenges include
government policies which are aimed to reduce sugary drinks
consumption to fight obesity, the socials movements that are
against the bottled beverages to minimize environmental
pollution, and the economic retardation in the majority of the
emerging markets. The appointment of Quincey is in line with
the strategy of the company to tackle those challenges by
introducing healthier drinks, expanding the company’s
corporate sector by diversifying its products to include non-
soda drinks, and last bringing to market beverages that have a
smaller container and little or no calories. The company also,
must capitalize on consumer trends by acquiring smaller
competitors that can supplement their current offerings. As an
example, Coca-Cola recently invested in Body Armor, a new
trendy player in the sports drink world.
Step II: External analysis
By analyzing the external industry environment, the company is
able to identify its opportunities and threats in their operating
industry. Besides it is very important to select and formulate an
appropriate strategic planning, because external factors have the
effects on the organization in different aspects.
Threats
It’s been no secret that soft drink providers have suffered some
of late. A cultural shift towards natural and organic products
has led many to opt for nutritional waters, smoothies, and
various healthy beverage options. Thus, core soda offerings that
include high amounts of sugar, or diet items with artificial
sweeteners, have fallen out of favor with buyers. Also, health
professionals have called for the elimination of beverages
containing lofty amount of sugar. Also, the number of contracts
a company is likely to have with its supplier is highly
determined by its size. The bigger the company, the more
contracts it is likely to have with its supplier securing pricing.
The main ingredients for Coca-Cola drinks include carbonated
water, sugar, and phosphoric acid among others. Like any other
commodity, the prices of the product vary over time. The price
is also greatly affected by the availability of the products.
Sugarcane harvest might as well be affected by certain
unforeseen natural factors and this would directly affect the cost
of raw material. Indirect competition also, plays a big role,
threatening the company indirectly, companies such as
Starbucks and Dunkin’ Brands Group indirectly compete with
Coca-Cola, they do place a dent in the company’s market share.
Additionally, trends involving cafes can threaten the company
as well, with their smoothies, health tonics, and teas. These
products are taking over as people are looking for healthy
alternatives to less sugar.
Opportunities
Developing countries are still being introduced to the delight of
carbonated drinks and soft drinks. Countries like India which
are developing and have a hot summer, find the consumption of
cold drinks almost doubled during summers and environments
like this can be a good opportunity to capitalize for Coca-Cola.
Marketing the lesser selling products could also, help to
leverage the revenue for the company. Coca-Cola has many
products on their portfolio that haven’t found the acceptance in
the market; the company should concentrate on marketing these
products. Lastly, product diversification into healthy drinks and
packaged water can also bring revenue and profits. Porter's five
forces model was used to identify the existing industrial factors:
Potential Competitors: Within the beverage industry, there is
still high possibility of a new entry. Although Coca-Cola and its
major competitors have special licensing deals such as selling
their products in various distribution deals and fast food chains,
a new company might easily gain a foothold if it hit into the
trends. Once the new company gets its products in the market, it
would likely have a viral and very positive image and it would
create brand recognition that Coca-Cola is enjoying (Gertner
and Rifkin). In addition to that, when consumers opt to move
towards much healthier products, then it is likely to have
several new entrants to the beverage
industry at the same time and this could greatly affect Coca-
Cola’s bottom line.
Rivalry among existing competition: When one thinks of Coca-
Cola Company and its competitors, the biggest rival that is
likely to come in mind is probably Pepsi. Since the late
Nineteenth Century, Coca-Cola and Pepsi have been in
competition with each other. The products of these two
companies have very similar ingredients and they even offer
similar offerings. In addition to that, the two companies also
have similar non-sodas interests like bottled water and orange
juice. To change the manner in which it competes, Pepsi owns
Rice-A-Roni, Quaker Oats, as well as Doritos. If trends were to
go against bottled drinks and soda, Pepsi would be in a position
to hedge its bet with its various lines (Hitt). This is unlike
Coca-Cola, which does not have a similar opportunity. Apart
from Pepsi, another major competitor that Coca-Cola has to deal
with is Dr Pepper Snapple Group. Although Dr Pepper Snapple
Group does not have a cola. They feature some of the biggest
brands in the juice and soft drink market. As consumer trends
start to shift, Coca-Cola is likely to be left vulnerable. The
beverage company, however, has a loyal following moderating
the risk in this area.
Threat of substitute products: The Company is forced to contend
with what consumers might buy instead of its products. For
example, consumers might start taking coffee rather than coke.
Coca-Cola realized that people love taking coffee in the right
environment and having their coffee with the right flavor. It is
probably due to this reason that the company has Green
Mountain Coffee Roasters that makes Keurig (Hitt). Consumers
might as well opt to purchase beverages like fresh pressed juice
or freshly made smoothies rather than Coca Cola’s bottled
beverage.
The bargaining power of buyers: When considering the bottled
beverage market, consumers all over the world have a fair
bargaining power, which directly affects the company’s bottom
line. The company does not sell directly to their end users but
instead, it deals with various distribution companies. Coca-Cola
has been forced to sell its products to various distribution
networks at very low prices so as to enable the distribution
networks to sell to the end user at a price that would keep them
coming back. The bargaining power of suppliers for coca cola
and the bargaining power of its suppliers are considered to be
weak. This is due to the fact that the company has many
suppliers and can easily switch from one to the other. It is,
however, not easy for a supplier to switch away from the
company, as this would make then have create a huge loss.
While Coca-Cola has several suppliers, the individual suppliers
are either small or moderately large.
The bargaining power of suppliers: Although Coca-Cola is a
huge company and has many contracts with its suppliers
securing pricing, suppliers still have some powers. Some of it
may be out of their hands because sugar is a commodity, and
like other commodities, its price can vary over time and if a
natural disaster happens, it can affect sugar cane harvest and
impact the company’s raw materials costs.
Step III: Internal analysis
Strength
An internal analysis is an exploration of an organization’s
competency, cost position and competitive viability in the
marketplace. The data generated by an internal analysis is
important because you can use it to develop strategic planning
objectives to sustain and grow your business. As a worldwide
leader in producing beverages and soft drinks, Coca-Cola
company has a number of resources that play an important role
in all stages of production and make sure that both, the
productions as well as the delivery of its products and client
services are of very high standards. The coca cola company
also, has various tangible as well as intangible resources it in its
different stages of production and delivery (Hitt). The tangible
resources are inclusive of financial, human, and physical
resources. The company has many physical resources that it
possesses and manages. Some of these physical resources are
inclusive of the company’s equipment and as well as its
buildings. The company has constructed buildings in almost
every part of the world. By having a self-owned production
plant, it, therefore, means that the company maintains a low
cost of production. On the other hand, having self-owned
equipment ensures that coca cola as a company does not need to
rent or lease any equipment. This, therefore, manages a low cost
of production.
The company also, has a very strong financial position that
enables it to have stable financial resources that carry the entire
process of production without experiencing any major issues in
relation to a shortage in cash. With a positive flow of cash, the
company is able to conduct any activity that requires money.
Being in such a position, the company is able to prevent any
unnecessary debt financing. To add on to that, such a position
enables the company to maintain a highly motivated workforce.
Being in such a position has been the company’s primary force
in driving its products into people’s shopping lists. Coca-Cola
Company has also invested highly in employee development and
training and this has greatly ensured that all its workers are
delivering work that is of high quality. Training and developing
of employees also ensure that those responsible for marketing
ensure that the company’s products are purchased by the final
consumers.
Coca cola’s intangible resources are inclusive of goodwill,
intellectual as well as technical resources. For many years, the
company has been enjoying technical resources that have
greatly fostered its goals. Coca-Cola has successfully come up
with many enjoyable flavors in their soft drinks ranging from
ginger, lemon, black currant, pineapple, and orange flavors
among others. All these products are an indication that Coca-
Cola Company has knowledge, and it has used it to its
advantage in enabling it to stay ahead of its competitors
(Gertner and Rifkin). This has also, enabled the company to
enjoy an intellectual property of all the brands that it provides.
For many years, Coca-Cola has also enjoyed both goodwill and
customer loyalty (Hitt). This has indeed been an internal
strength that the company has used to its advantage since all its
brands and products have always enjoyed undying loyalty from
its customers. The visibility of the company’s brands also
ensures that people are able to easily access the product at any
time.
The company also, enjoys a great distinctive capability that has
enabled it to carry out its productions in ways that are much
superior compared to its competitors. Some of the distinctive
capabilities that the company has are inclusive of is
architecture, reputation, as well as its innovation. This has
enabled the company to continuously introduce newer products
into the market.
The Four Building Blocks of Competitive Advantage.
A company is said to have a competitive advantage, when its
profit rates are higher than its industry average. Similarly, a
company would have a sustainable competitive advantage when
it comfortably maintains a high-profit rate for many years.
Coca-Cola certainly has a competitive and has been able to
sustain this competitive advantage.
Efficiency: One of the factors that have led Coca-Cola to have a
competitive advantaged is by having superior efficiency. This
efficiency is seen when the company is able to extract more
tangible value for every dollar cost of labor and asset. The
company upgraded its physical distribution capability which
enables it to substantially improve order of efficiency, reducing
distribution and transport costs, and cutting greenhouse gas
emissions by utilizing the supply chain remodeling program
Project Jupiter. It was designed to ensure CCA can service their
14,000 route trade customers across the state from their Eastern
Creek distribution center (Crawford 2004).
Quality: The second factor is quality that has allowed more
differentiation by having to pay much closer attention to details.
Innovation: Coca-Cola Company is well known for innovation
(Gertner and Rifkin). The company’s innovations have greatly
contributed to differentiation by finding newer ways of
achieving the desired result of the current product. The
company itself is an example of a company with sustained
competitive advantage, innovation, an extensive business
model, and an intelligent distribution network. From producing
the sweet fizzy drink to the world’s most recognized brand.
Customer Responsiveness: The fourth factor has been on
customer responsiveness. The manner in which consumers of
Coca-Cola products respond has contributed to low costs.
Customer responsiveness has contributed to differentiation by
incorporating features that customers would want to have.
Step IV: Strategy formation
Coca-Cola could build its strengths to take advantage of its
opportunity. The Company should build on its strengths to take
advantage of its opportunities. One way in which the company
could effectively do this is through diversification. In any
health and food business, diversification helps to improve the
business’s offerings. Coca-Cola’s supply chain that distributes
it beverages should also, be used to distribute snacks produced
by the company. By doing this, it would help to share the cost
of supply. How Coca-Cola could mitigate its threat by
minimizing its weaknesses? The Company also needs to
mitigate its threats by minimizing its weaknesses. One of the
major raw material that the company uses is water. In the recent
years water scarcity has been on the rise. There have been
changes in climate which have caused this scarcity. At this early
stage, the company should look for ways to either reduce the
amount of water it uses in its processes or to complete remove it
from its processes. Coca-Cola should make investments on new
technologies as well as new operating procedures that would
help to reduce or replace water usage in its manufacturing
operations. To do this, the company needs to find out where
exactly it uses water and where it might have opportunity for
improvements.
Functional strategy
The structuring of any organization does not only involve
organizing its internal relationship and coca cola is one
company that has certainly understood that. The company has
managed to build a well-structured relationship with both
internal as well as external groups. The relationship that Coca
Cola has developed with its bottlers has provided them with
great strength. Coca Cola works together with its bottlers and
make sure that syrups and concentrates have been made into
finished beverages that are then distributed to customers
through the world. Coca Cola Company like most other
companies has its own culture. One particular aspect of culture
that is of great importance is the fact that it emphasizes on
empowering and teamwork. The company considers its
employees to be the most important assets that it has. On that
note, Coca Cola strives to motivate its employees as it believes
motivated employees would effectively drive the company’s
growth.
Business-level strategy
Coca Cola makes use of the followings three business level
strategy for both its local as well as it international operations
Differentiation: Firms use differentiation to operate in a
competitive as well as in a unique manner within their
respective industries. Since the Coca Cola was incepted back in
1886, it has at all times paid much focus on how to differentiate
its products from other products produced by its competitors so
as to establish its unique position within the beverage industry
(Gertner, and Rifkin). The company’s top most brand such as
Fanta, Sprite, and Coca Cola have always been manufactured
under strict standards and using formulations that are also quite
unique from the company’s competitors. The company uses
differentiation in many other aspect of its operation this has
made it maintain a leading market position.
Cost: Other than delivering to its customers top quality
products, Coca Cola has always kept a closer eye on the
increasing marketing as well as operational expenditures. Coca
Cola Company has recognized the essence of cost control in
order to gain a competitive advantage within its industry and
consequently be able to operate in manner that is more
competitive. Therefore, one of the company’s major business
level strategy has been low cost leadership. Coca-Cola
Company has always maintained a tight cost control over its
marketing, overhead, and manufacturing.
Focus (Niche): Coca-Cola used focus or Niche strategy in
differentiation as well as in cost dimension. For the niche low
cost strategy, the company has been able to define particular
lines of beverage products that it cans target specified market
and be able to achieve low cost through manufacture of its
products under processes that are highly efficient (Cunningham
and Harney). Coca Cola is said to produce its Coke for all its
target market so as to achieve a low-cost leadership. The
company then keeps the target market under a complete niche
while it selects its distribution network and designs its
marketing campaigns.
Corporate Strategy
Coca-Cola has invested a large sum of money on expansion of
its business. Currently, the company is present in more than 200
countries and this is a big indicator of the focus it has on its
growth strategy. As a large scale corporation, the Company uses
different growth strategy, in different situations, and in varying
needs of its operations (Gertner and Rifkin). For instance, when
the company plans to target a new market, it would often pursue
a horizontal growth strategy. Throughout its history, Coca-Cola
has also used diversification strategy. The company was
basically founded to be a soft drink manufacturer. However, as
time passed, the Company entered into different similar
industries such as fruit juice, coffee, tea, and mineral water
among others. For many years, the Company has worked hard
ensuring that it utilizes its ample war chest and has built a
major presence in the rapidly growing beverage industry.
Today, Coca-Cola own about 16 per cent of Keurig Green
Mountain and it is also said to be in the process of developing a
fresh Keurig Kold device. The other major opportunity that coca
cola has is on its extended reach (Gertner and Rifkin). As the
population continues to increase, the company has capitalized
on consumers’ shift towards healthier living by focusing on
bolstering a number of its business line. For instance, the
Chinese, as well as the Indian market, have ramped up a demand
for Coca-Cola’s latest coffee and juice offerings. Thanks to
these diversification strategies, the Company’s business
portfolio has greatly increased.
At times, Coca-Cola has had to suspend its growth strategies so
as to take a stand in its market position. Coca-Cola has used
this strategy many times before. However, its growth strategies
have not been a feasible choice in some internal issues. The
company therefore, stops at its present position and pays more
attention on its supply chain, marketing efforts, R&D, and
quality control. As for the business units where the company
observes not to have any growth, it uses retrenchment strategy.
Coca-Cola retrenches such business units in various ways that
include; R&D, marketing, or budget cut for production. The
company also, uses acquisitions to change the manner in which
it competes, just like Pepsi owns Rice-A-Roni, Quaker Oats, as
well as Doritos, Coca-Cola acquire Honest Tea among other
companies.
Global Strategy
In most cases when domestic markets have matured, companies
would expand their operations to other nations. Coca-Cola is a
company that has expanded globally after the maturity of its
domestic market. As a matter of fact, globalization is the key
concern of Coca-Cola. The Company has a total control in cost
pressure, so the cost pressure is low. Therefore, Coca-Cola can
operate under the Multidomestic Strategy. Thus, by running the
local responsiveness of Coca-Cola is high. The company
customizes both their product offering and marketing strategies
in different places with different national conditions. They also,
are operating in seven regional operating groups such as, North
America Group, Latin America Group, Europe Group, Eurasia &
Africa Group, Pacific Group, Bottling Investments Group, and
McDonald's Division. The reason is simple; they are trying to
create their value innovation activities by doing the market and
product research in different potential national market. There
are various global strategies that Coca-Cola has used. One of
the Company’s global strategies has been standardization. Coca-
Cola has used standardization strategy in their centralized
management system and has helped it achieve great economic
scale by discount through purchasing in bulk (Cunningham and
Harney). The other global strategy Coca-Cola uses has been
adoption. Through adoption, Coca- Cola creates a customized
marketing mix for every nation and every region. Although
adoption strategy might cost the company more, it provides
benefits of consumer diversity.
Step V: Recommendation(s)
The primary goal of Coca-Cola Company is to ensure that they
have satisfied their customers while they still promote their
good social and ethic responsibility to the public. With the
company’s tremendous success, there is no doubt that Coca-
Cola has something that most of its competitors do not have.
For instance, Coca-Cola has money that it still puts back into its
business. This ensures that the business continues to grow.
Coca-Cola does everything in its power to satisfy all its
customers to the maximum. The company plans to use some of
its money to update older equipment (Cunningham and Harney).
This would ensure that all its facilities are able to operate more
effectively. By updating its equipment, the company will reduce
the damage done to the environment. On that note, the company
should also consider putting some of its money towards having
a cleaner environment. The company should recycle and reuse
various materials such as plastic bottles. By doing this, Coca-
Cola would certainly minimize environmental pollution. The
company should also actively support policies that are dealing
with fair quality water. In addition to that, Coca-Cola should
engage in discussions that would impact the environment in
general.
The company faces some challenges such as government
policies which are aimed to reduce sugary drinks consumption
to fight obesity. As a way to fight obesity, some governments
around the world have imposed high taxes on some of the
products that Coca-Cola produces and that have high sugar
content. On this point, the company should join forces with its
competitors and together request the government to lower its
taxes on sugary products. For the company to do that
effectively, Coca-Cola should warn governments of job losses.
High taxes would increase the company’s operational cost and
hence force them to send some of its employee’s home. Another
way is for Coca-Cola to offer a plethora of new sugar-free
alternatives like Coke Zero Sugar. This effectively provides a
safety net of products protected from taxation.
Work Cited
Hitt, Michael A. Strategic Management. Cengage Learning,
2017.
Cunningham, James, and Brian Harney. Strategy & Strategists.
Oxford University Press, 2012.
Gertner, David, and Laura Rifkin. "Coca-Cola and the Fight
against the Global Obesity Epidemic". Thunderbird
International Business Review, vol 60, no. 2, 2017, pp. 161-
173. Wiley, doi:10.1002/tie.21888.
“Fresh Challenges for New Leader at Coke.” Global Finance
Magazine.
“Mission, Vision & Values.” The Coca-Cola Company.
Moran, Porcshe. “The Evolution of the Coca-Cola Brand.”
Investopedia, Investopedia, 15 Oct. 2012.
“The Coca-Cola Company Announces New International
Structure, Promotes Key Leaders.” The Coca-Cola Company, 24
May 2016.
Crawford C. (2004) Coca-Cola Amatil-Marketing, Business
studies update, Vol. 4 No.2
https://www.slideshare.net/YOUNUS92/competitive-advantage-
of-cocacola
https://slideplayer.com/slide/4688281/
Week 1
Reflective Journal: Mindset
For this reflection, you are encouraged to step outside of your
comfort zone, dig deep, and be honest with yourself. Keep in
mind that there are no right or wrong answers. Therefore, you
will not be graded on specific content in your journal. You will
be assessed on the depth of your reflection, so take this
opportunity to inspire personal thought and ideas. Note: This
journal template has two parts that you need to complete.
…………………………………………………………………………
……………………………
Part 1
Directions: Respond thoroughly and honestly to each prompt.
1.Describe how you felt when you read through your results of
the Mindset Assessment. Were you surprised? Did you agree?
Why or why not? Provide examples to support your response.
2. Choose three strategies from the “25 Ways to Develop a
Growth Mindset” article and explain how you will use each
strategy in your academic, personal, or professional life to help
you develop a growth mindset.
3. Explain what you learned about how a growth mindset can
help you learn.
(Scroll down for Part 2.)
…………………………………………………………………………
……………………………
Part 2
Directions: Did you know that what you say to yourself or
others can boost your productivity, confidence, and relieve
stress? When you replace negative phrases with more positive
ones, you can change your outlook and your outcomes.
Below are some common negative statements that students tell
themselves. Restate them using a growth mindset perspective.
The first two are done for you as an example.
Original Statement
Statement Reframed
This stuff is too hard. I’m not going to pass the test.
EXAMPLE: The test is hard, but if I get help and study, I can
pass the test.
I am no good at math.
EXAMPLE: I struggle with math because I don’t work very
hard at it. When I work hard and solve the problem I grow my
brain capacity.
I got a terrible grade. My teacher must hate me.
This assignment is impossible.
This is a waste of my time. It has nothing to do with my major.
I don’t get it. I give up.
I’m worried I might make a mistake.
I’m too embarrassed to post my response.
I don’t think I’m advanced enough. I’m not prepared.
I don’t know if this is for me. I’m too old.
I’ve never been a good student.
This task looks too hard. Why bother trying?
Take it one step further. (Optional) You’re encouraged to start
a log of your own reframed statements. When you catch
yourself exhibiting a fixed mindset or engaging in negative self-
talk, take a moment to rephrase your thinking with a positive
statement. Use this chart below to get started.
Original Statement
Statement Reframed
1
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Valdirene Fils-Aime
Michael Matvichuk
CMGMT 4140 -- Strategic Management
(Per MLA, your paper should not have a title page. The page
number in the top right corner should be preceded by your last
name. MLA also prefers use of Times New Roman, 12-point
font throughout the entire paper. Consider rechecking the
assignment description for formatting guidelines?)
Five-Step Strategic Management Plan
Analysis
Coca-Cola Company in the beverages industry
(Per MLA, your paper would only have one page number)
(MLA has a set of rules in formatting level and sublevel
headings. Consider checking MLA guidelines or assignment
description for instructor preferences.)
Step I. Corporate Mission and Goals
Brief history of the background and evolution of the
organization
Coca-Cola Company is the manufacturer of coke (Should this be
capitalized?) or Coca-Cola soft drinks. (Check spacing?) The
company was founded in 1886 by John Pemberton, (Comma
splice. You incorrectly connect two independent clauses with
only a comma. Start a new sentence?) he was inspired by his
curiosity as he stirred up a fragrant, caramel-colored liquid that
he brought down to a place called Jacobs’ Pharmacy. (Check
spacing throughout?) There he added carbonated water and let
several customers sample the new concoction. Although, (Do
you need this comma?) John Pemberton invented Coca-Cola,
which is a carbonated soft drink, he later sold it to businessman
Asa Griggs Candler, whose smart marketing tactics made the
soft drinks to dominate the world of beverages in the entire 20th
(Per MLA, spell out numbers that can be written as one or two
words. For example: eighteenth-century literature) century.
During the introduction (Should this be an adjective?) stage into
the market, the company used to sell nine drinks in Atlanta per
day (Review use of commas with coordinate conjunctions?) but
currently it is selling more than 19400 beverages every second
around the globe (Moran). Its advertising strategies have
changed over the course (Unidiomatic. Over the course of
what?) to reach greater markets. Today Coca-Cola is one of the
best-known brands around the world, (Comma splice. Start a
new sentence or try using a semicolon?) however, when the
company started, it used free coupons to promote its product.
When Griggs Candler acquired the company, his budget to
promote the product was $11,000. In 2011, the company
allocated $4 billion for the marketing of its products (Moran).
Also, over the decades the bottling of the beverages has
changed to differentiate it from other close substitutes. These
changes have also been seen in the company logos. (Passive,
awkward construction. Can this be stated more clearly?)
Mission and Vision
Coca-Cola has aimed to maximize its profit while keeping
long-term sustainable growth in the beverage industry. The
mission statement of the company states that it aims to refresh
the world, inspire the moments of happiness and optimism
(MLA favors the use of the oxford comma, or a comma used
after the last item in a list of three or more things, before
“and.”) and create value and build a difference in the world.
The vision of the company is their road-map (Does this word
require a hyphen?) and acts as a guide to every aspect of their
business by explaining what ought to be accomplished to
achieve sustainable and quality growth around the world. It
appears that the vision of Coca Cola consists of 6 P’s. People,
portfolio, partners, planet, profit and productivity. The
company’s values include integrity (Do you need a comma
between integrity and collaboration or is this one value?)
collaboration, accountability, diversity, leadership, passion, and
quality (“Mission, Vision & Values”). The winning culture of
the company explains its behaviors and attitudes that will make
their vision 2020 a reality.
General Structure and Leadership Style
The organizational structure of Coca-Cola is structured in such
a way that it operates smoothly and the growth of the company
is enhanced (Awkward construction. Rephrase for ease of
reading and clarity?). The company is comprised (Check word
choice to confirm this fits your intended meaning.) of 15 (Spell
out, per MLA) Boards (Should this word be capitalized and
plural?) members who includes (Subject-verb disagreement.
“Members” is plural and does not agree with “includes”) the
CEO of the company James Quincey. The board members are all
divide (Check word choice. Do you mean divided?), and each of
the board heads several other committees. Currently, the
company is now divided into three regional groups (Review use
of commas to set off dependent clauses?) which include EMEA
(Europe, Middle East, and Africa), Asia Pacific and Latin
America (“The Coca-Cola Company Announces New
International Structure, Promotes Key Leaders”). Whenever
major regional or divisional decisions are required, all 12
members overlook the decision to ensure that the growth of the
company is sustained. The leadership style in this company is
delegative style itself. The company believes in the need to
delegate duties and rule instead of taking every responsibility in
the company. The organization's based functions are divided,
and its (What’s the difference between it’s and its? Which word
do you need here?) ensured that all the functions are not under
the control of one entity and the use of SME’s to function in
every functional division is a very ingenious strategy
(Confusing wording. Can this be better explained?). This is a
clear example of delegative leadership. It includes, (Do you
need this comma?) Innovative Leadership, Cross Cultural
Leadership, and Visionary Leadership.
Statement of issues (Should this be capitalized?)
Coca-Cola is one the most identifiable international brand in the
world. In, 1st may 2017 (Unclear. Do you mean on May 1,
2017?) James Quincey replaced Muhtar Kent as the CEO of the
company. Kent has been the face of the company for almost a
decade. He joined the company in the late 1970s but became the
CEO of the company in 2008 (“Fresh Challenges For New
Leader At Coke”). Like any other traditional non-alcoholic
company, Coca-Cola Company is facing strategic challenges
that seem to shape the whole industry in the next few years.
Some (Are you missing a word/preposition here?) the challenges
includes, government policies which are aimed to reduce sugary
drinks consumption to fight obesity, the socials movements that
are against the bottled beverages to minimize environmental
pollution, and the economic retardation in the majority of the
emerging markets. The appointment of Quincey is in line with
the strategy of the company to tackle those challenges by
introducing healthier drinks, expanding the company’s
corporate sector by diversifying its products to include non-
soda drinks (Use an oxford comma?) and last bringing to market
beverages that have a smaller container and little or no calories.
The company also, has to capitalize on consumers (Should this
be possessive? How would that be indicated?) trends by
acquiring smaller competitors that can supplement their current
offerings. (Check spacing?) As an example,Coca Cola recently
invested in Body Armor, a new trendy player in the sports drink
world.
Step 2: External analysis (Capitalize title/subheadings to be
consistent? Also, the first “step” uses a roman numeral. Should
this be roman numeral II?)
By analyzing the external industry environment, the company is
able to identify its opportunities and threats in their operating
industry. Besides it is very important to select and formulate an
appropriate strategic planning, because external factors have the
effects on the organization in different aspects.
Threats: It’s been no secret that soft drink providers have
suffered some of late. A cultural shift towards natural and
organic products has led many to opt for nutritional waters,
smoothies, and various healthy beverage options. Thus, core
soda offerings that include high amounts of sugar, or diet items
with artificial sweeteners, have fallen out of favor with buyers.
Also, health professionals have called for the elimination of
beverages that containing (Check verb form choice? Should this
be simple present?) lofty amount of sugar. The number of
contracts a company is likely to have with its supplier is highly
determined by its size. The bigger the company, the more
contracts it is likely to have with its supplier securing pricing.
The mains ingredient (Should “mains” be plural here and
“ingredient” singular?) for coca cola (Should this be
capitalized?) drinks includes carbonated water, sugar,
phosphoric acid (Use and oxford comma?) among others. Like
any other commodity, the prices of the product vary over time.
The price is also, (Do you need this comma?) greatly affected
by the availability of the products. Sugarcane harvest might as
well be affected by certain unforeseen natural factors and this
would directly affect the cost of raw material. Coca Cola was
also, suspected of using pesticides in their water and water is
becoming limited because of climate changes and considering
that the company needs plenty water to create their soft drinks,
if water become scarce, they would be in trouble (Run-on
sentence. Write as multiple complete sentences?). Indirect
competition also, plays a big role, indirect threatening the
company, companies such as Starbucks and Dunkin’ Brands
Group indirectly compete with Coca Cola, they do place a dent
in the company’s market share (Confusing run-on sentence.
How can this be rephrased as multiple sentences? Try using the
adverb “indirectly”?). Additionally, trends involving cafes can
threaten the company as well, with their smoothies, health
tonics, and teas. These products are taking over as people are
looking for healthy alternatives to less sugar.
Opportunities: Developing countries are still being introduced
to the delight of carbonated drinks and soft drinks. Countries
like India which are developing and have a hot summer, find the
consumption of cold drinks almost doubled during summers
(Review use of commas with coordinate conjunctions?) and
environment (Should this be plural?) like this can be a
good opportunity to capitalize for Coca cola. Marketing the
lesser selling products could also, help to leverage the revenue
for the company, (Comma splice. Start a new sentence?) Coca
Cola has many products on their portfolio that haven’t found the
acceptance in the market, (Comma splice) they should
concentrate on the marketing of these products. Apart from it
(Ambiguous pronoun. What is “it” in this context?), product
diversification into healthy drinks and packaged water can also
bring revenue and profits.
For this section, the Porter's five forces model was used to
identify the existing industrial factors:
Potential Competitors: Within the beverage industry, there is
still (Why is “high” plural? Is this an adjective to describe
possibility?) highs possibility of a new entry. Although Coca-
Cola and its major competitors have special licensing deals such
as selling their products in various distribution deals and fast
food chains, a new company might easily gain a foothold if it
hit into the trends (Unclear wording. Revise for clarity?). Once
the new company gets its products in the market, it would likely
have a viral and very positive image and it would create a brand
recognition that coca cola (Capitalize?) is enjoying(Gertner, and
Rifkin) (Per MLA, include the name(s) of author and page
number if available in the in-text citation. No commas are
needed if only two names are listed). In addition to that, when
consumers opt to move towards much healthier products, then it
is likely to have several new entrants to the beverage industry at
the same time and this could greatly affect coca cola’s bottom
line. (Be consistent with capitalization?)
Rivalry among existing competition: When one thinks of Coca-
Cola Company and its competitors, the biggest rival that is
likely to come in mind is probably Pepsi. Since the late 19th
(Spell out?) century, Coca-Cola and Pepsi have been in
competition with each other. The products of these two
companies have very similar ingredients and they even offer
similar offerings, ie coke and Pepsi (Is it necessary to restate
this?). In addition to that, the two companies also have similar
non-sodas interests like bottled water and orange juice. To
change the manner in which it competes, Pepsi owns Rice-A-
Roni, Quaker Oats, as well as Dorito (Spellcheck?). If trends
were to go against bottled drinks and soda, Pepsi would be in a
position to hedge its bet with its various line(Hitt) (Check
spacing?). This is unlike Coca-Cola (Review use of commas to
set off dependent clauses?) which does not have a similar
opportunity. Apart from Pepsi, another major competitor that
Coca-Cola has to deal with is Dr Pepper Snapple Group.
Although Dr Pepper Snapple Group does not have a cola,
(Comma splice. Start a new sentence?) they, however, feature
some of the biggest brands in the juice and soft drink market.
As consumer trends start to shift, coca cola is likely to be left
vulnerable. The beverage company, however, has a loyal
following moderating the risk in this area.
Threat of substitute products: The company is forced to contend
with what consumers might buy instead of its products. For
example, consumers might start taking coffee rather than coke.
Coca-Cola realized that people love taking coffee in the right
environment and having their coffee with the right flavor. It is
probably due to this reason that the company has Green
Mountain Coffee Roasters that makes Keurig(Hitt). Consumers
might as well opt to purchase beverages like fresh pressed juice
or freshly made smoothies rather than coca cola’s bottled
beverage.
The bargaining power of buyers: When considering the bottled
beverage market, consumers all over the world have a fair
bargaining power (Review use of commas with dependent
clauses) which directly affects the company’s bottom line. The
company does not sell directly to their end
(Check page numbers? The number in the top right has reverted
to 1)
users but instead, it deals with various distribution companies.
Coca-Cola has been forced to sell its products to various
distribution networks at very low prices so as to enable the
distribution networks to sell to the end user at a price that
would keep them coming back. The bargaining power of
suppliers for coca cola (Be consistent in how you write the
brand? Does it require a hyphen or capitalization?) and the
bargaining power of its suppliers is considered to be weak. This
is due to the fact that the company has many suppliers and can
easily switch from one to the other. It is, however, not easy for
a supplier to switch away from the company, as this would make
then have create a huge loss. While Coca Cola has several
suppliers, the individual suppliers are either small or
moderately large.
The bargaining power of suppliers: Although, (Do you need this
comma. Compare this construction: According to the author, the
common potato is native to the Americas) Coca Cola is a huge
company and has many contracts with its suppliers securing
pricing, suppliers still have some powers, (Comma splice)
however, some of it may be out of their hands because sugar is
a commodity, and like other commodities, its price can vary
over time and if a natural disaster happen, it can affect sugar
cane harvest and impact the company’s raw materials costs.
(Run-on. Revise as multiple sentences?)
(This paper has only been reviewed to this point because the
tutor has reached the end of the time frame of the tutoring
session. Consider submitting the remainder of the document to
complete the review)
Step3: Internal analysis
An internal analysis is an exploration of an organization’s
competency, cost position and competitive viability in the
marketplace. The data generated by an internal analysis is
important because you can use it to develop strategic planning
objectives to sustain and grow your business. As a worldwide
leader in producing beverages and soft drinks, Coca Cola
company has a number of resources that play an important role
in all stages of production and make sure that both, the
productions as well as the delivery of its products and client
service are of very high standards. The coca cola company also,
has various tangible as well as intangible resources it in its
different stages of production and delivery (Hitt). The tangible
resources are inclusive of financial, human, and physical
resources. The company has many physical resources that it
possess and manages. Some of these physical resources are
inclusive of the company’s equipment and as well as its
buildings. The company has constructed buildings in almost
every part of the world. By having a self-owned production
plant, it, therefore, means that the company maintains a low
cost of production. On the other hand, having self-owned
equipment ensures that coca cola as a company does not need to
rent or lease any equipment. This, therefore, manages a low cost
of production.
The company also, has a very strong financial position that
enables it to have stable financial resources that carry the entire
process of production without experiencing any major issues in
relation to a shortage in cash. With a positive flow of cash, the
company is able to conduct any activity that requires money.
Being in such a position, the company is able to prevent any
unnecessary debt financing. To add on to that, such a position
enables the company to maintain a highly motivated workforce.
Being in such a position has been the company’s primary force
in driving its products into people’s shopping lists. Coca-Cola
Company has also invested highly in employee development and
training and this has greatly ensured that all its workers are
delivering work that is of high quality. Training and developing
of employees also ensure that those responsible for marketing
ensure that the company’s products are purchased by the final
consumers.
Coca cola’s intangible resources are inclusive of goodwill,
intellectual as well as technical resources. For many years, the
company has been enjoying technical resources that have
greatly fostered its goals. Coca-Cola has successfully come up
with many enjoyable flavors in their soft drinks ranging from
ginger, lemon, black currant, pineapple, orange flavor, among
others. All these products are an indication that Coca-Cola
Company has knowledge, and it has used it to its advantage in
enabling it to stay ahead of its competitors (Gertner, and
Rifkin). This has also, enabled the company to enjoy an
intellectual property of all the brands that it provides.
For many years, Coca-Cola has also enjoyed both goodwill and
customer loyalty (Hitt). This has indeed been an internal
strength that the company has used to its advantage since all its
brands and products have always enjoyed undying loyalty from
its customers. The visibility of the company’s brands also
ensures that people are able to easily access the product at any
time.
The company also, enjoys a great distinctive capability that has
enabled it to carry out its productions in ways that are much
superior compared to its competitors. Some of the distinctive
capabilities that the company has are inclusive of is
architecture, reputation, as well as its innovation. This has
enabled the company to continuously introduce newer products
into the market.
The four building blocks of competitive advantage.
A company is said to have a competitive advantage, when its
profit rates are higher than its industry average. Similarly, a
company would have a sustainable competitive advantage when
it comfortably maintains a high-profit rate for many years.
Coca-Cola Company certainly has a competitive and has been
able to sustain this competitive advantage.
Efficiency: One of the factors that have lead Coca-Cola to have
a competitive advantaged is by having superior efficiency. This
efficiency is seen when the company able to extract more
tangible value for every dollar cost of labor and asset. The
company upgraded its physical distribution capability which
enables it to substantially improve order of efficiency, reduce
distribution and transport costs, and cut greenhouse gas
emissions by utilizing the supply chain remodeling program
Project Jupiter. It was designed to ensure CCA can service their
14,000 route trade customers across the state from their Eastern
Creek distribution centre (Crawford, 2004).
Quality: The second factor is quality that has allowed more
differentiation by having to pay much closer attention to details.
Innovations: Coca cola company is well known for (Gertner,
and Rifkin). The company’s innovations have greatly
contributed to differentiation by finding newer ways of
achieving the desired result of the current product. The
company itself, is an example of a company with sustained
competitive advantage, innovation, an extensive business model
and a intelligent distribution network. From producing the sweet
fizzy drink to the world’s most recognized brand.
Customer Responsiveness: The fourth factor has been on
customer responsiveness. The manner in which consumers of
coca cola products respond has contributed to low costs.
Customer responsiveness has contributed to differentiation by
incorporating features that customers would want to have.
Step 4: Strategy formation
Coca Cola could build its strengths to take advantage of its
opportunity Coca Cola Company should build on its strengths so
as to take advantage of its opportunities. One way in which the
company could effectively do this is through diversification. In
any health and food business, diversification helps to improve
the business’s offerings. Coca-Cola’s supply chain that
distributes it beverages should also be used to distribute snacks
produced by the company. By so doing this would help share
cost of supply. How Coca Cola could mitigate its threat by
minimizing its weaknesses Coca Cola Company also needs to
mitigate its threats by minimizing its weaknesses. One of the
major raw material that the company uses is water. In the recent
years however, water scarcity has been on the rise. There have
been changes in climate which have caused these scarcity. At
this early stage, the company should look for ways to either
reduce the amount of water it uses in its processes or to
complete remove it from its processes. Coca Cola should
therefore make investment on new technologies as well as new
operating procedures that would help reduce or replace water
usage in its manufacturing operation. To do this, the company
needs to find out where exactly it uses water and where it might
have opportunity for improvements.
A) Functional strategy
The structuring of any organization does not only involve
organizing its internal relationship and coca cola is one
company that has certainly understood that. The company has
managed to build a well-structured relationship with both
internal as well as external groups. The relationship that Coca
Cola has developed with its bottlers has provided them with
great strength. Coca Cola works together with its bottlers and
make sure that syrups and concentrates have been made into
finished beverages that are then distributed to customers
through the world. Coca Cola Company like most other
companies has its own culture. One particular aspect of culture
that is of great importance is the fact that it emphasizes on
empowering and teamwork. The company considers its
employees to be the most important assets that it has. On that
note, Coca Cola strives to motivate its employees as it believes
motivated employees would effectively drive the company’s
growth.
B) Business-level strategy
Coca Cola makes use of the followings three business level
strategy for both its local as well as it international operations
· Differentiation:Firms use differentiation to operate in a
competitive as well as in a unique manner within their
respective industries. Since the Coca Cola was incepted back in
1886, it has at all times paid much focus on how to differentiate
its products from other products produced by its competitors so
as to establish its unique position within the beverage industry
(Gertner, and Rifkin). The company’s top most brand such as
Fanta, Sprite, and Coca Cola have always been manufactured
under strict standards and using formulations that are also quite
unique from the company’s competitors. The company uses
differentiation in many other aspect of its operation this has
made it maintain a leading market position.
· Cost: Other than delivering to its customers top quality
products, Coca Cola has always kept a closer eye on the
increasing marketing as well as operational expenditures. Coca
Cola Company has recognized the essence of cost control in
order to gain a competitive advantage within its industry and
consequently be able to operate in manner that is more
competitive. Therefore, one of the company’s major business
level strategy has been low cost leadership. Coca Cola Company
has always maintained a tight cost control over its marketing,
overhead, and manufacturing.
· Focus (Niche): Coca Cola used focus or Niche strategy in
differentiation as well as in cost dimension. For the niche low
cost strategy, the company has be able to define particular lines
of beverage products that it cans target specified market and be
able to achieve low cost through manufacture of its products
under processes that are highly efficient(Cunningham, and
Harney). Coca Cola is said to produce its Coke for all its target
market so as to achieve a low cost leadership. The company
then keeps the target market under a complete niche while it
selects its distribution network and designs its marketing
campaigns.
C) Corporate strategy
Coca Cola has invested a large sum of money on expansion of
its business. Currently, the company is present in more than 200
countries and this is a big indication of the focus it has on its
growth strategy. As a large scale corporation, the company uses
different growth strategy, in different situations, and in varying
needs of its operations(Gertner, and Rifkin). For instance, when
the company plans to target a new market, it would often pursue
a horizontal growth strategy. Throughout its history, the coca
Cola Company has also used diversification strategy. The
company was basically founded to be a soft drink manufacturer.
However, as time passed, the company entered into different
similar industries such as fruit juice, coffee, tea, mineral water,
among others. For many years, the company has worked hard in
ensuring that it utilizes its ample war chest and has built a
major presence in the rapidly growing beverage industry.
Today, coca cola own about 16 per cent of Keurig Green
Mountain and it is also said to be in the process of developing a
fresh Keurig Kold device. The other major opportunity that coca
cola has is on its extended reach (Gertner, and Rifkin). As the
population continues to increase, the company has capitalized
on consumers’ shift towards healthier living by focusing on
bolstering a number of its business line. For instance, the
Chinese, as well as the Indian market, have ramped up a demand
for coca cola’s latest coffee and juice offerings. Thanks to
these diversification strategies, the company’s business
portfolio has greatly increased.
At times, Coca Cola has had to suspend its growth strategies so
as to take a stand in its market position. Coca cola has used this
strategy whenever it feels as though its growth strategies have
not been a feasible choice in some internal issues. The company
therefore, stops at its present position and pays more attention
on its supply chain, marketing efforts, R&D, and quality
control. As for the business units where the company observes
not to have any growth, it uses retrenchment strategy. Coca
Cola retrenches such business units in various ways that
include; R&D, marketing, or budget cut for production. The
company also, uses acquisitions to change the manner in which
it competes, just like Pepsi owns Rice-A-Roni, Quaker Oats, as
well as Dorito, Coca Cola acquire Honest Tea among other
companies.
D) Global strategy
In most cases when domestic markets have matured, companies
would expand their operations outside to other nations. Coca
Cola is a company that has expanded globally after the maturity
of its domestic market. As a matter of fact, globalization is the
key concern of Coca-Cola. The company has a total control in
cost pressure, so the cost pressure is low. Therefore, Coca-Cola
can operate under the Multidomestic Strategy. Thus, by running
the local responsiveness of Coca-Cola is high. The company
customize both their product offering and marketing strategies
in different place with different national conditions. They also,
are operating in seven regional operating groups such as, North
America Group, Latin America Group, Europe Group, Eurasia &
Africa Group, Pacific Group, Bottling Investments Group and
McDonald's Division and the reason is simple,they are trying to
create their value innovation activities by doing the market and
product research in different potential national market. There
are various global strategies that Coca Cola has used. One of
the company’s global strategy has been standardization. Coca
Cola has used standardization strategy in their centralized
management system and has help it achieve great economic
scale by discount through purchasing in bulk(Cunningham, and
Harney). The other global strategy Coca cola uses has been
adoption. Through adoption, Coca Cola creates a customized
marketing mix for every nation and every region. Although
adoption strategy might cost the company more, it however
provides benefits of consumer diversity.
Step 5: Recommendation(s)
The primary goal of Coca-Cola Company is to ensure that they
have satisfied their customers while they still promote their
good social and ethic responsibility to the public. With the
company’s tremendous success, there is no doubt that coca cola
has something that most of its competitors do not have. For
instance, coca cola has money that it still puts back into its
business. This ensures that the business continues to grow.
Coca-Cola does everything in its power to satisfy all its
customers to the maximum. The company plans to use some of
its money to update older equipment (Cunningham, and
Harney). This would ensure that all its facilities are able to
operate more effectively. By updating its equipment, the
company will reduce the damage done to the environment. On
that note, coca cola should also consider putting some of its
money towards having a cleaner environment. The company
should recycle and reuse various materials such as the plastic
bottles. By doing this coca cola would certainly have helped to
reduce the damage done to the environment.
The company however faces some challenges such as
government policies which are aimed to reduce sugary drinks
consumption to fight obesity. As a way to fight obesity, some
governments around the world have imposed high taxes on some
of the products that Coca Cola produce and that have high sugar
content. On this point, the company should join forces with its
competitors and together request the government to lower its
taxes on sugary products. to effectively do this, the company
should tell the government know the number of people it has
employed and that high taxes would increase the company’s
operational cost and hence force them to send some of its
employees home. The company should as well let the
government know of the numerous investment that it has done
and that it is still doing. The government should be made to
understand that high taxes would crumble the company’s
investment.
The other challenge facing Coca Cola Company is the socials
movements that aimed at minimizing environmental pollution.
The company work hard to minimize its manufacturing and
distribution impacts. Coca Cola should also actively support
policies that are dealing with fair quality water. In addition to
that coca cola should as well also engage in discussions that
that would impact the environment in general.
Work Cited
Hitt, Michael A. Strategic Management. Cengage Learning,
2017.
Cunningham, James, and Brian Harney. Strategy & Strategists.
Oxford University Press, 2012.
Gertner, David, and Laura Rifkin. "Coca-Cola And The Fight
Against The Global Obesity Epidemic". Thunderbird
International Business Review, vol 60, no. 2, 2017, pp. 161-
173. Wiley, doi:10.1002/tie.21888.
“Fresh Challenges For New Leader At Coke.” Global Finance
Magazine.
“Mission, Vision & Values.” The Coca-Cola Company.
Moran, Porcshe. “The Evolution Of The Coca-Cola
Brand.” Investopedia, Investopedia, 15 Oct. 2012.
“The Coca-Cola Company Announces New International
Structure, Promotes Key Leaders.” The Coca-Cola Company, 24
May 2016.
Crawford C. (2004) Coca-Cola Amatil-Marketing, Business
studies update, Vol. 4 No.2
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  • 1. Fils-Aime 13 Valdirene Fils-Aime Michael Matvichuk CMGMT 4140 -- Strategic Management Project: Five-Step Strategic Management Plan Analysis Coca-Cola Company in the beverages industry Step I. Corporate Mission and Goals Brief history of the background and evolution of the organization Coca-Cola Company is the manufacturer of Coke or Coca-Cola soft drinks. The company was founded in 1886 by John Pemberton. He was inspired by his curiosity as he stirred up a fragrant, caramel-colored liquid that he brought down to a place called Jacobs’ Pharmacy. There he added carbonated water and let several customers sample the new concoction. Although John Pemberton invented Coca-Cola, which is a carbonated soft drink, he later sold it to businessman Asa Griggs Candler, whose smart marketing tactics made the soft drinks to dominate the world of beverages in the entire 20th century. During the introduction stage into the market, the company used to sell nine drinks in Atlanta per day, but currently it is selling more than 19400 beverages every second around the globe (Moran). Its advertising strategies have changed to reach greater markets. Today Coca-Cola is one of the best-known brands around the world. However, when the company started, it used free coupons to promote its product. When Griggs Candler acquired the company, his budget to promote the product was $11,000. In 2011, the company allocated $4 billion for the marketing of its products (Moran). Also, over the decades the bottling of the beverages has changed to differentiate it from other close substitutes. These changes have also been seen in the company logos.
  • 2. Mission and Vision Coca-Cola has aimed to maximize its profit while keeping long-term sustainable growth in the beverage industry. The mission statement of the company states that it aims to refresh the world, inspire the moments of happiness and optimism, and create value and build a difference in the world. The vision of the company is their road map and acts as a guide to every aspect of their business by explaining what ought to be accomplished to achieve sustainable and quality growth around the world. It appears that the vision of Coca-Cola consists of 6 P’s which are people, portfolio, partners, planet, profit, and productivity. The company’s values include integrity, collaboration, accountability, diversity, leadership, passion, and quality (“Mission, Vision & Values”). The winning culture of the company explains its behaviors and attitudes that will make their vision 2020 a reality. General Structure and Leadership Style The organizational structure of the company is structured in such a way that it operates smoothly, and the growth of the company is enhanced. The company is composed of fifteen board members who include the CEO of the company James Quincey. The board members are all divided, and each of the board heads several other committees. Currently, the company is now divided into three regional groups, which include EMEA (Europe, Middle East, and Africa), Asia Pacific and Latin America (“The Coca-Cola Company Announces New International Structure, Promotes Key Leaders”). Whenever major regional or divisional decisions are required, all members overlook the decision to ensure that the growth of the company is sustained. The leadership style in this company is delegative style itself. The company believes in the need to delegate duties and rule instead of taking every responsibility in the company. The organization’s-based functions are divided, and it ensures that all the functions are not under the control of one entity and the use of SME’s to function in every functional division is a very ingenious strategy. This is a clear example of delegative
  • 3. leadership. It includes Innovative Leadership, Cross Cultural Leadership, and Visionary Leadership. Statement of Issues Coca-Cola is one the most identifiable international brand in the world. On, May1, 2017 James Quincey replaced Muhtar Kent as the CEO of the company. Kent had been the face of the company for almost a decade. He joined the company in the late 1970s but became the CEO of the company in 2008 (“Fresh Challenges for New Leader at Coke”). Like any other traditional non-alcoholic company, Coca-Cola Company is facing strategic challenges that seem to shape the whole industry in the next few years. Some of the challenges include government policies which are aimed to reduce sugary drinks consumption to fight obesity, the socials movements that are against the bottled beverages to minimize environmental pollution, and the economic retardation in the majority of the emerging markets. The appointment of Quincey is in line with the strategy of the company to tackle those challenges by introducing healthier drinks, expanding the company’s corporate sector by diversifying its products to include non- soda drinks, and last bringing to market beverages that have a smaller container and little or no calories. The company also, must capitalize on consumer trends by acquiring smaller competitors that can supplement their current offerings. As an example, Coca-Cola recently invested in Body Armor, a new trendy player in the sports drink world. Step II: External analysis By analyzing the external industry environment, the company is able to identify its opportunities and threats in their operating industry. Besides it is very important to select and formulate an appropriate strategic planning, because external factors have the effects on the organization in different aspects. Threats It’s been no secret that soft drink providers have suffered some of late. A cultural shift towards natural and organic products has led many to opt for nutritional waters, smoothies, and
  • 4. various healthy beverage options. Thus, core soda offerings that include high amounts of sugar, or diet items with artificial sweeteners, have fallen out of favor with buyers. Also, health professionals have called for the elimination of beverages containing lofty amount of sugar. Also, the number of contracts a company is likely to have with its supplier is highly determined by its size. The bigger the company, the more contracts it is likely to have with its supplier securing pricing. The main ingredients for Coca-Cola drinks include carbonated water, sugar, and phosphoric acid among others. Like any other commodity, the prices of the product vary over time. The price is also greatly affected by the availability of the products. Sugarcane harvest might as well be affected by certain unforeseen natural factors and this would directly affect the cost of raw material. Indirect competition also, plays a big role, threatening the company indirectly, companies such as Starbucks and Dunkin’ Brands Group indirectly compete with Coca-Cola, they do place a dent in the company’s market share. Additionally, trends involving cafes can threaten the company as well, with their smoothies, health tonics, and teas. These products are taking over as people are looking for healthy alternatives to less sugar. Opportunities Developing countries are still being introduced to the delight of carbonated drinks and soft drinks. Countries like India which are developing and have a hot summer, find the consumption of cold drinks almost doubled during summers and environments like this can be a good opportunity to capitalize for Coca-Cola. Marketing the lesser selling products could also, help to leverage the revenue for the company. Coca-Cola has many products on their portfolio that haven’t found the acceptance in the market; the company should concentrate on marketing these products. Lastly, product diversification into healthy drinks and packaged water can also bring revenue and profits. Porter's five forces model was used to identify the existing industrial factors: Potential Competitors: Within the beverage industry, there is
  • 5. still high possibility of a new entry. Although Coca-Cola and its major competitors have special licensing deals such as selling their products in various distribution deals and fast food chains, a new company might easily gain a foothold if it hit into the trends. Once the new company gets its products in the market, it would likely have a viral and very positive image and it would create brand recognition that Coca-Cola is enjoying (Gertner and Rifkin). In addition to that, when consumers opt to move towards much healthier products, then it is likely to have several new entrants to the beverage industry at the same time and this could greatly affect Coca- Cola’s bottom line. Rivalry among existing competition: When one thinks of Coca- Cola Company and its competitors, the biggest rival that is likely to come in mind is probably Pepsi. Since the late Nineteenth Century, Coca-Cola and Pepsi have been in competition with each other. The products of these two companies have very similar ingredients and they even offer similar offerings. In addition to that, the two companies also have similar non-sodas interests like bottled water and orange juice. To change the manner in which it competes, Pepsi owns Rice-A-Roni, Quaker Oats, as well as Doritos. If trends were to go against bottled drinks and soda, Pepsi would be in a position to hedge its bet with its various lines (Hitt). This is unlike Coca-Cola, which does not have a similar opportunity. Apart from Pepsi, another major competitor that Coca-Cola has to deal with is Dr Pepper Snapple Group. Although Dr Pepper Snapple Group does not have a cola. They feature some of the biggest brands in the juice and soft drink market. As consumer trends start to shift, Coca-Cola is likely to be left vulnerable. The beverage company, however, has a loyal following moderating the risk in this area. Threat of substitute products: The Company is forced to contend with what consumers might buy instead of its products. For example, consumers might start taking coffee rather than coke. Coca-Cola realized that people love taking coffee in the right
  • 6. environment and having their coffee with the right flavor. It is probably due to this reason that the company has Green Mountain Coffee Roasters that makes Keurig (Hitt). Consumers might as well opt to purchase beverages like fresh pressed juice or freshly made smoothies rather than Coca Cola’s bottled beverage. The bargaining power of buyers: When considering the bottled beverage market, consumers all over the world have a fair bargaining power, which directly affects the company’s bottom line. The company does not sell directly to their end users but instead, it deals with various distribution companies. Coca-Cola has been forced to sell its products to various distribution networks at very low prices so as to enable the distribution networks to sell to the end user at a price that would keep them coming back. The bargaining power of suppliers for coca cola and the bargaining power of its suppliers are considered to be weak. This is due to the fact that the company has many suppliers and can easily switch from one to the other. It is, however, not easy for a supplier to switch away from the company, as this would make then have create a huge loss. While Coca-Cola has several suppliers, the individual suppliers are either small or moderately large. The bargaining power of suppliers: Although Coca-Cola is a huge company and has many contracts with its suppliers securing pricing, suppliers still have some powers. Some of it may be out of their hands because sugar is a commodity, and like other commodities, its price can vary over time and if a natural disaster happens, it can affect sugar cane harvest and impact the company’s raw materials costs. Step III: Internal analysis Strength An internal analysis is an exploration of an organization’s competency, cost position and competitive viability in the marketplace. The data generated by an internal analysis is important because you can use it to develop strategic planning objectives to sustain and grow your business. As a worldwide
  • 7. leader in producing beverages and soft drinks, Coca-Cola company has a number of resources that play an important role in all stages of production and make sure that both, the productions as well as the delivery of its products and client services are of very high standards. The coca cola company also, has various tangible as well as intangible resources it in its different stages of production and delivery (Hitt). The tangible resources are inclusive of financial, human, and physical resources. The company has many physical resources that it possesses and manages. Some of these physical resources are inclusive of the company’s equipment and as well as its buildings. The company has constructed buildings in almost every part of the world. By having a self-owned production plant, it, therefore, means that the company maintains a low cost of production. On the other hand, having self-owned equipment ensures that coca cola as a company does not need to rent or lease any equipment. This, therefore, manages a low cost of production. The company also, has a very strong financial position that enables it to have stable financial resources that carry the entire process of production without experiencing any major issues in relation to a shortage in cash. With a positive flow of cash, the company is able to conduct any activity that requires money. Being in such a position, the company is able to prevent any unnecessary debt financing. To add on to that, such a position enables the company to maintain a highly motivated workforce. Being in such a position has been the company’s primary force in driving its products into people’s shopping lists. Coca-Cola Company has also invested highly in employee development and training and this has greatly ensured that all its workers are delivering work that is of high quality. Training and developing of employees also ensure that those responsible for marketing ensure that the company’s products are purchased by the final consumers. Coca cola’s intangible resources are inclusive of goodwill, intellectual as well as technical resources. For many years, the
  • 8. company has been enjoying technical resources that have greatly fostered its goals. Coca-Cola has successfully come up with many enjoyable flavors in their soft drinks ranging from ginger, lemon, black currant, pineapple, and orange flavors among others. All these products are an indication that Coca- Cola Company has knowledge, and it has used it to its advantage in enabling it to stay ahead of its competitors (Gertner and Rifkin). This has also, enabled the company to enjoy an intellectual property of all the brands that it provides. For many years, Coca-Cola has also enjoyed both goodwill and customer loyalty (Hitt). This has indeed been an internal strength that the company has used to its advantage since all its brands and products have always enjoyed undying loyalty from its customers. The visibility of the company’s brands also ensures that people are able to easily access the product at any time. The company also, enjoys a great distinctive capability that has enabled it to carry out its productions in ways that are much superior compared to its competitors. Some of the distinctive capabilities that the company has are inclusive of is architecture, reputation, as well as its innovation. This has enabled the company to continuously introduce newer products into the market. The Four Building Blocks of Competitive Advantage. A company is said to have a competitive advantage, when its profit rates are higher than its industry average. Similarly, a company would have a sustainable competitive advantage when it comfortably maintains a high-profit rate for many years. Coca-Cola certainly has a competitive and has been able to sustain this competitive advantage. Efficiency: One of the factors that have led Coca-Cola to have a competitive advantaged is by having superior efficiency. This efficiency is seen when the company is able to extract more tangible value for every dollar cost of labor and asset. The company upgraded its physical distribution capability which enables it to substantially improve order of efficiency, reducing
  • 9. distribution and transport costs, and cutting greenhouse gas emissions by utilizing the supply chain remodeling program Project Jupiter. It was designed to ensure CCA can service their 14,000 route trade customers across the state from their Eastern Creek distribution center (Crawford 2004). Quality: The second factor is quality that has allowed more differentiation by having to pay much closer attention to details. Innovation: Coca-Cola Company is well known for innovation (Gertner and Rifkin). The company’s innovations have greatly contributed to differentiation by finding newer ways of achieving the desired result of the current product. The company itself is an example of a company with sustained competitive advantage, innovation, an extensive business model, and an intelligent distribution network. From producing the sweet fizzy drink to the world’s most recognized brand. Customer Responsiveness: The fourth factor has been on customer responsiveness. The manner in which consumers of Coca-Cola products respond has contributed to low costs. Customer responsiveness has contributed to differentiation by incorporating features that customers would want to have. Step IV: Strategy formation Coca-Cola could build its strengths to take advantage of its opportunity. The Company should build on its strengths to take advantage of its opportunities. One way in which the company could effectively do this is through diversification. In any health and food business, diversification helps to improve the business’s offerings. Coca-Cola’s supply chain that distributes it beverages should also, be used to distribute snacks produced by the company. By doing this, it would help to share the cost of supply. How Coca-Cola could mitigate its threat by minimizing its weaknesses? The Company also needs to mitigate its threats by minimizing its weaknesses. One of the major raw material that the company uses is water. In the recent years water scarcity has been on the rise. There have been changes in climate which have caused this scarcity. At this early stage, the company should look for ways to either reduce the
  • 10. amount of water it uses in its processes or to complete remove it from its processes. Coca-Cola should make investments on new technologies as well as new operating procedures that would help to reduce or replace water usage in its manufacturing operations. To do this, the company needs to find out where exactly it uses water and where it might have opportunity for improvements. Functional strategy The structuring of any organization does not only involve organizing its internal relationship and coca cola is one company that has certainly understood that. The company has managed to build a well-structured relationship with both internal as well as external groups. The relationship that Coca Cola has developed with its bottlers has provided them with great strength. Coca Cola works together with its bottlers and make sure that syrups and concentrates have been made into finished beverages that are then distributed to customers through the world. Coca Cola Company like most other companies has its own culture. One particular aspect of culture that is of great importance is the fact that it emphasizes on empowering and teamwork. The company considers its employees to be the most important assets that it has. On that note, Coca Cola strives to motivate its employees as it believes motivated employees would effectively drive the company’s growth. Business-level strategy Coca Cola makes use of the followings three business level strategy for both its local as well as it international operations Differentiation: Firms use differentiation to operate in a competitive as well as in a unique manner within their respective industries. Since the Coca Cola was incepted back in 1886, it has at all times paid much focus on how to differentiate its products from other products produced by its competitors so as to establish its unique position within the beverage industry (Gertner, and Rifkin). The company’s top most brand such as Fanta, Sprite, and Coca Cola have always been manufactured
  • 11. under strict standards and using formulations that are also quite unique from the company’s competitors. The company uses differentiation in many other aspect of its operation this has made it maintain a leading market position. Cost: Other than delivering to its customers top quality products, Coca Cola has always kept a closer eye on the increasing marketing as well as operational expenditures. Coca Cola Company has recognized the essence of cost control in order to gain a competitive advantage within its industry and consequently be able to operate in manner that is more competitive. Therefore, one of the company’s major business level strategy has been low cost leadership. Coca-Cola Company has always maintained a tight cost control over its marketing, overhead, and manufacturing. Focus (Niche): Coca-Cola used focus or Niche strategy in differentiation as well as in cost dimension. For the niche low cost strategy, the company has been able to define particular lines of beverage products that it cans target specified market and be able to achieve low cost through manufacture of its products under processes that are highly efficient (Cunningham and Harney). Coca Cola is said to produce its Coke for all its target market so as to achieve a low-cost leadership. The company then keeps the target market under a complete niche while it selects its distribution network and designs its marketing campaigns. Corporate Strategy Coca-Cola has invested a large sum of money on expansion of its business. Currently, the company is present in more than 200 countries and this is a big indicator of the focus it has on its growth strategy. As a large scale corporation, the Company uses different growth strategy, in different situations, and in varying needs of its operations (Gertner and Rifkin). For instance, when the company plans to target a new market, it would often pursue a horizontal growth strategy. Throughout its history, Coca-Cola has also used diversification strategy. The company was basically founded to be a soft drink manufacturer. However, as
  • 12. time passed, the Company entered into different similar industries such as fruit juice, coffee, tea, and mineral water among others. For many years, the Company has worked hard ensuring that it utilizes its ample war chest and has built a major presence in the rapidly growing beverage industry. Today, Coca-Cola own about 16 per cent of Keurig Green Mountain and it is also said to be in the process of developing a fresh Keurig Kold device. The other major opportunity that coca cola has is on its extended reach (Gertner and Rifkin). As the population continues to increase, the company has capitalized on consumers’ shift towards healthier living by focusing on bolstering a number of its business line. For instance, the Chinese, as well as the Indian market, have ramped up a demand for Coca-Cola’s latest coffee and juice offerings. Thanks to these diversification strategies, the Company’s business portfolio has greatly increased. At times, Coca-Cola has had to suspend its growth strategies so as to take a stand in its market position. Coca-Cola has used this strategy many times before. However, its growth strategies have not been a feasible choice in some internal issues. The company therefore, stops at its present position and pays more attention on its supply chain, marketing efforts, R&D, and quality control. As for the business units where the company observes not to have any growth, it uses retrenchment strategy. Coca-Cola retrenches such business units in various ways that include; R&D, marketing, or budget cut for production. The company also, uses acquisitions to change the manner in which it competes, just like Pepsi owns Rice-A-Roni, Quaker Oats, as well as Doritos, Coca-Cola acquire Honest Tea among other companies. Global Strategy In most cases when domestic markets have matured, companies would expand their operations to other nations. Coca-Cola is a company that has expanded globally after the maturity of its domestic market. As a matter of fact, globalization is the key concern of Coca-Cola. The Company has a total control in cost
  • 13. pressure, so the cost pressure is low. Therefore, Coca-Cola can operate under the Multidomestic Strategy. Thus, by running the local responsiveness of Coca-Cola is high. The company customizes both their product offering and marketing strategies in different places with different national conditions. They also, are operating in seven regional operating groups such as, North America Group, Latin America Group, Europe Group, Eurasia & Africa Group, Pacific Group, Bottling Investments Group, and McDonald's Division. The reason is simple; they are trying to create their value innovation activities by doing the market and product research in different potential national market. There are various global strategies that Coca-Cola has used. One of the Company’s global strategies has been standardization. Coca- Cola has used standardization strategy in their centralized management system and has helped it achieve great economic scale by discount through purchasing in bulk (Cunningham and Harney). The other global strategy Coca-Cola uses has been adoption. Through adoption, Coca- Cola creates a customized marketing mix for every nation and every region. Although adoption strategy might cost the company more, it provides benefits of consumer diversity. Step V: Recommendation(s) The primary goal of Coca-Cola Company is to ensure that they have satisfied their customers while they still promote their good social and ethic responsibility to the public. With the company’s tremendous success, there is no doubt that Coca- Cola has something that most of its competitors do not have. For instance, Coca-Cola has money that it still puts back into its business. This ensures that the business continues to grow. Coca-Cola does everything in its power to satisfy all its customers to the maximum. The company plans to use some of its money to update older equipment (Cunningham and Harney). This would ensure that all its facilities are able to operate more effectively. By updating its equipment, the company will reduce the damage done to the environment. On that note, the company should also consider putting some of its money towards having
  • 14. a cleaner environment. The company should recycle and reuse various materials such as plastic bottles. By doing this, Coca- Cola would certainly minimize environmental pollution. The company should also actively support policies that are dealing with fair quality water. In addition to that, Coca-Cola should engage in discussions that would impact the environment in general. The company faces some challenges such as government policies which are aimed to reduce sugary drinks consumption to fight obesity. As a way to fight obesity, some governments around the world have imposed high taxes on some of the products that Coca-Cola produces and that have high sugar content. On this point, the company should join forces with its competitors and together request the government to lower its taxes on sugary products. For the company to do that effectively, Coca-Cola should warn governments of job losses. High taxes would increase the company’s operational cost and hence force them to send some of its employee’s home. Another way is for Coca-Cola to offer a plethora of new sugar-free alternatives like Coke Zero Sugar. This effectively provides a safety net of products protected from taxation. Work Cited Hitt, Michael A. Strategic Management. Cengage Learning, 2017. Cunningham, James, and Brian Harney. Strategy & Strategists. Oxford University Press, 2012. Gertner, David, and Laura Rifkin. "Coca-Cola and the Fight against the Global Obesity Epidemic". Thunderbird International Business Review, vol 60, no. 2, 2017, pp. 161- 173. Wiley, doi:10.1002/tie.21888. “Fresh Challenges for New Leader at Coke.” Global Finance Magazine.
  • 15. “Mission, Vision & Values.” The Coca-Cola Company. Moran, Porcshe. “The Evolution of the Coca-Cola Brand.” Investopedia, Investopedia, 15 Oct. 2012. “The Coca-Cola Company Announces New International Structure, Promotes Key Leaders.” The Coca-Cola Company, 24 May 2016. Crawford C. (2004) Coca-Cola Amatil-Marketing, Business studies update, Vol. 4 No.2 https://www.slideshare.net/YOUNUS92/competitive-advantage- of-cocacola https://slideplayer.com/slide/4688281/ Week 1 Reflective Journal: Mindset For this reflection, you are encouraged to step outside of your comfort zone, dig deep, and be honest with yourself. Keep in mind that there are no right or wrong answers. Therefore, you will not be graded on specific content in your journal. You will be assessed on the depth of your reflection, so take this opportunity to inspire personal thought and ideas. Note: This journal template has two parts that you need to complete. ………………………………………………………………………… …………………………… Part 1 Directions: Respond thoroughly and honestly to each prompt. 1.Describe how you felt when you read through your results of
  • 16. the Mindset Assessment. Were you surprised? Did you agree? Why or why not? Provide examples to support your response. 2. Choose three strategies from the “25 Ways to Develop a Growth Mindset” article and explain how you will use each strategy in your academic, personal, or professional life to help you develop a growth mindset. 3. Explain what you learned about how a growth mindset can help you learn. (Scroll down for Part 2.) ………………………………………………………………………… …………………………… Part 2 Directions: Did you know that what you say to yourself or others can boost your productivity, confidence, and relieve stress? When you replace negative phrases with more positive ones, you can change your outlook and your outcomes. Below are some common negative statements that students tell themselves. Restate them using a growth mindset perspective. The first two are done for you as an example. Original Statement Statement Reframed
  • 17. This stuff is too hard. I’m not going to pass the test. EXAMPLE: The test is hard, but if I get help and study, I can pass the test. I am no good at math. EXAMPLE: I struggle with math because I don’t work very hard at it. When I work hard and solve the problem I grow my brain capacity. I got a terrible grade. My teacher must hate me. This assignment is impossible. This is a waste of my time. It has nothing to do with my major. I don’t get it. I give up. I’m worried I might make a mistake. I’m too embarrassed to post my response. I don’t think I’m advanced enough. I’m not prepared. I don’t know if this is for me. I’m too old. I’ve never been a good student. This task looks too hard. Why bother trying? Take it one step further. (Optional) You’re encouraged to start a log of your own reframed statements. When you catch yourself exhibiting a fixed mindset or engaging in negative self- talk, take a moment to rephrase your thinking with a positive statement. Use this chart below to get started. Original Statement
  • 18. Statement Reframed 1 Brainfuse Provider Response Form Welcome to the Writing Lab! Analysis and recommendations about specific parts of your paper are included in the tutor response form. A copy of your paper is also posted below this form, and it includes additional comments in brackets. If you do not see the tutor’s comments or a tutor’s review appears to be missing, please contact [email protected]. For specific questions about your paper, please resubmit through the Brainfuse Writing Lab. Thank you for choosing the Writing Lab, and best wishes with your revisions! Grammar, Usage, and Mechanics:
  • 19. As you review your paper, please focus on identifying and correcting the types of errors that are addressed below. Some examples of these errors are pointed out in the in-text comments on your paper, but you should use these guidelines to check all parts of your work. Note that there may be other issues with grammar, usage, and mechanics in this paper as well. Summary of Reoccurring Grammar Concerns: Per your request, this review focuses on grammar, mechanics, and style. Some issues include missing words, incorrect word choices, misspellings, comma splices, run-on sentences, missing or misplaced commas, subject-verb disagreement, inconsistent capitalization, style errors, and irregular formatting. Though you identified MLA as your preferred style, the paper incorporates elements inconsistent with MLA, such as a separate title page and bottom page numbers. See assignment description or MLA guidelines regarding proper formatting of the paper and in-text citations. When available, refer to the page number of the source. For example: (Smith and Colby 24) Also note that due to time constraints, this review covers only approximately half of the document. Useful Links: To catch other types of errors, please refer to The Brainfuse Essential Grammar Guide. You can view the guide by clicking on this link and logging in to Brainfuse: http://www.brainfuse.com/curriculumupload//1381694219673.ht ml If you would like a review focused on your content, in the future, please request a content review in the comments box. Formatting Please use the Brainfuse Style Guides for information on
  • 20. citation formatting. APA https://admin.brainfuse.com/curriculumupload//1514394321264. pdf MLA https://admin.brainfuse.com/curriculumupload//1514393937280. pdf Chicago Style https://admin.brainfuse.com/curriculumupload//1515512833067. pdf Valdirene Fils-Aime Michael Matvichuk CMGMT 4140 -- Strategic Management (Per MLA, your paper should not have a title page. The page number in the top right corner should be preceded by your last name. MLA also prefers use of Times New Roman, 12-point font throughout the entire paper. Consider rechecking the assignment description for formatting guidelines?) Five-Step Strategic Management Plan Analysis Coca-Cola Company in the beverages industry (Per MLA, your paper would only have one page number) (MLA has a set of rules in formatting level and sublevel headings. Consider checking MLA guidelines or assignment description for instructor preferences.)
  • 21. Step I. Corporate Mission and Goals Brief history of the background and evolution of the organization Coca-Cola Company is the manufacturer of coke (Should this be capitalized?) or Coca-Cola soft drinks. (Check spacing?) The company was founded in 1886 by John Pemberton, (Comma splice. You incorrectly connect two independent clauses with only a comma. Start a new sentence?) he was inspired by his curiosity as he stirred up a fragrant, caramel-colored liquid that he brought down to a place called Jacobs’ Pharmacy. (Check spacing throughout?) There he added carbonated water and let several customers sample the new concoction. Although, (Do you need this comma?) John Pemberton invented Coca-Cola, which is a carbonated soft drink, he later sold it to businessman Asa Griggs Candler, whose smart marketing tactics made the soft drinks to dominate the world of beverages in the entire 20th (Per MLA, spell out numbers that can be written as one or two words. For example: eighteenth-century literature) century. During the introduction (Should this be an adjective?) stage into the market, the company used to sell nine drinks in Atlanta per day (Review use of commas with coordinate conjunctions?) but currently it is selling more than 19400 beverages every second around the globe (Moran). Its advertising strategies have changed over the course (Unidiomatic. Over the course of what?) to reach greater markets. Today Coca-Cola is one of the best-known brands around the world, (Comma splice. Start a new sentence or try using a semicolon?) however, when the company started, it used free coupons to promote its product. When Griggs Candler acquired the company, his budget to promote the product was $11,000. In 2011, the company allocated $4 billion for the marketing of its products (Moran). Also, over the decades the bottling of the beverages has changed to differentiate it from other close substitutes. These changes have also been seen in the company logos. (Passive, awkward construction. Can this be stated more clearly?) Mission and Vision
  • 22. Coca-Cola has aimed to maximize its profit while keeping long-term sustainable growth in the beverage industry. The mission statement of the company states that it aims to refresh the world, inspire the moments of happiness and optimism (MLA favors the use of the oxford comma, or a comma used after the last item in a list of three or more things, before “and.”) and create value and build a difference in the world. The vision of the company is their road-map (Does this word require a hyphen?) and acts as a guide to every aspect of their business by explaining what ought to be accomplished to achieve sustainable and quality growth around the world. It appears that the vision of Coca Cola consists of 6 P’s. People, portfolio, partners, planet, profit and productivity. The company’s values include integrity (Do you need a comma between integrity and collaboration or is this one value?) collaboration, accountability, diversity, leadership, passion, and quality (“Mission, Vision & Values”). The winning culture of the company explains its behaviors and attitudes that will make their vision 2020 a reality. General Structure and Leadership Style The organizational structure of Coca-Cola is structured in such a way that it operates smoothly and the growth of the company is enhanced (Awkward construction. Rephrase for ease of reading and clarity?). The company is comprised (Check word choice to confirm this fits your intended meaning.) of 15 (Spell out, per MLA) Boards (Should this word be capitalized and plural?) members who includes (Subject-verb disagreement. “Members” is plural and does not agree with “includes”) the CEO of the company James Quincey. The board members are all divide (Check word choice. Do you mean divided?), and each of the board heads several other committees. Currently, the company is now divided into three regional groups (Review use of commas to set off dependent clauses?) which include EMEA (Europe, Middle East, and Africa), Asia Pacific and Latin America (“The Coca-Cola Company Announces New International Structure, Promotes Key Leaders”). Whenever
  • 23. major regional or divisional decisions are required, all 12 members overlook the decision to ensure that the growth of the company is sustained. The leadership style in this company is delegative style itself. The company believes in the need to delegate duties and rule instead of taking every responsibility in the company. The organization's based functions are divided, and its (What’s the difference between it’s and its? Which word do you need here?) ensured that all the functions are not under the control of one entity and the use of SME’s to function in every functional division is a very ingenious strategy (Confusing wording. Can this be better explained?). This is a clear example of delegative leadership. It includes, (Do you need this comma?) Innovative Leadership, Cross Cultural Leadership, and Visionary Leadership. Statement of issues (Should this be capitalized?) Coca-Cola is one the most identifiable international brand in the world. In, 1st may 2017 (Unclear. Do you mean on May 1, 2017?) James Quincey replaced Muhtar Kent as the CEO of the company. Kent has been the face of the company for almost a decade. He joined the company in the late 1970s but became the CEO of the company in 2008 (“Fresh Challenges For New Leader At Coke”). Like any other traditional non-alcoholic company, Coca-Cola Company is facing strategic challenges that seem to shape the whole industry in the next few years. Some (Are you missing a word/preposition here?) the challenges includes, government policies which are aimed to reduce sugary drinks consumption to fight obesity, the socials movements that are against the bottled beverages to minimize environmental pollution, and the economic retardation in the majority of the emerging markets. The appointment of Quincey is in line with the strategy of the company to tackle those challenges by introducing healthier drinks, expanding the company’s corporate sector by diversifying its products to include non- soda drinks (Use an oxford comma?) and last bringing to market beverages that have a smaller container and little or no calories. The company also, has to capitalize on consumers (Should this
  • 24. be possessive? How would that be indicated?) trends by acquiring smaller competitors that can supplement their current offerings. (Check spacing?) As an example,Coca Cola recently invested in Body Armor, a new trendy player in the sports drink world. Step 2: External analysis (Capitalize title/subheadings to be consistent? Also, the first “step” uses a roman numeral. Should this be roman numeral II?) By analyzing the external industry environment, the company is able to identify its opportunities and threats in their operating industry. Besides it is very important to select and formulate an appropriate strategic planning, because external factors have the effects on the organization in different aspects. Threats: It’s been no secret that soft drink providers have suffered some of late. A cultural shift towards natural and organic products has led many to opt for nutritional waters, smoothies, and various healthy beverage options. Thus, core soda offerings that include high amounts of sugar, or diet items with artificial sweeteners, have fallen out of favor with buyers. Also, health professionals have called for the elimination of beverages that containing (Check verb form choice? Should this be simple present?) lofty amount of sugar. The number of contracts a company is likely to have with its supplier is highly determined by its size. The bigger the company, the more contracts it is likely to have with its supplier securing pricing. The mains ingredient (Should “mains” be plural here and “ingredient” singular?) for coca cola (Should this be capitalized?) drinks includes carbonated water, sugar, phosphoric acid (Use and oxford comma?) among others. Like any other commodity, the prices of the product vary over time. The price is also, (Do you need this comma?) greatly affected by the availability of the products. Sugarcane harvest might as well be affected by certain unforeseen natural factors and this would directly affect the cost of raw material. Coca Cola was also, suspected of using pesticides in their water and water is becoming limited because of climate changes and considering
  • 25. that the company needs plenty water to create their soft drinks, if water become scarce, they would be in trouble (Run-on sentence. Write as multiple complete sentences?). Indirect competition also, plays a big role, indirect threatening the company, companies such as Starbucks and Dunkin’ Brands Group indirectly compete with Coca Cola, they do place a dent in the company’s market share (Confusing run-on sentence. How can this be rephrased as multiple sentences? Try using the adverb “indirectly”?). Additionally, trends involving cafes can threaten the company as well, with their smoothies, health tonics, and teas. These products are taking over as people are looking for healthy alternatives to less sugar. Opportunities: Developing countries are still being introduced to the delight of carbonated drinks and soft drinks. Countries like India which are developing and have a hot summer, find the consumption of cold drinks almost doubled during summers (Review use of commas with coordinate conjunctions?) and environment (Should this be plural?) like this can be a good opportunity to capitalize for Coca cola. Marketing the lesser selling products could also, help to leverage the revenue for the company, (Comma splice. Start a new sentence?) Coca Cola has many products on their portfolio that haven’t found the acceptance in the market, (Comma splice) they should concentrate on the marketing of these products. Apart from it (Ambiguous pronoun. What is “it” in this context?), product diversification into healthy drinks and packaged water can also bring revenue and profits. For this section, the Porter's five forces model was used to identify the existing industrial factors: Potential Competitors: Within the beverage industry, there is still (Why is “high” plural? Is this an adjective to describe possibility?) highs possibility of a new entry. Although Coca- Cola and its major competitors have special licensing deals such as selling their products in various distribution deals and fast food chains, a new company might easily gain a foothold if it hit into the trends (Unclear wording. Revise for clarity?). Once
  • 26. the new company gets its products in the market, it would likely have a viral and very positive image and it would create a brand recognition that coca cola (Capitalize?) is enjoying(Gertner, and Rifkin) (Per MLA, include the name(s) of author and page number if available in the in-text citation. No commas are needed if only two names are listed). In addition to that, when consumers opt to move towards much healthier products, then it is likely to have several new entrants to the beverage industry at the same time and this could greatly affect coca cola’s bottom line. (Be consistent with capitalization?) Rivalry among existing competition: When one thinks of Coca- Cola Company and its competitors, the biggest rival that is likely to come in mind is probably Pepsi. Since the late 19th (Spell out?) century, Coca-Cola and Pepsi have been in competition with each other. The products of these two companies have very similar ingredients and they even offer similar offerings, ie coke and Pepsi (Is it necessary to restate this?). In addition to that, the two companies also have similar non-sodas interests like bottled water and orange juice. To change the manner in which it competes, Pepsi owns Rice-A- Roni, Quaker Oats, as well as Dorito (Spellcheck?). If trends were to go against bottled drinks and soda, Pepsi would be in a position to hedge its bet with its various line(Hitt) (Check spacing?). This is unlike Coca-Cola (Review use of commas to set off dependent clauses?) which does not have a similar opportunity. Apart from Pepsi, another major competitor that Coca-Cola has to deal with is Dr Pepper Snapple Group. Although Dr Pepper Snapple Group does not have a cola, (Comma splice. Start a new sentence?) they, however, feature some of the biggest brands in the juice and soft drink market. As consumer trends start to shift, coca cola is likely to be left vulnerable. The beverage company, however, has a loyal following moderating the risk in this area. Threat of substitute products: The company is forced to contend with what consumers might buy instead of its products. For example, consumers might start taking coffee rather than coke.
  • 27. Coca-Cola realized that people love taking coffee in the right environment and having their coffee with the right flavor. It is probably due to this reason that the company has Green Mountain Coffee Roasters that makes Keurig(Hitt). Consumers might as well opt to purchase beverages like fresh pressed juice or freshly made smoothies rather than coca cola’s bottled beverage. The bargaining power of buyers: When considering the bottled beverage market, consumers all over the world have a fair bargaining power (Review use of commas with dependent clauses) which directly affects the company’s bottom line. The company does not sell directly to their end (Check page numbers? The number in the top right has reverted to 1) users but instead, it deals with various distribution companies. Coca-Cola has been forced to sell its products to various distribution networks at very low prices so as to enable the distribution networks to sell to the end user at a price that would keep them coming back. The bargaining power of suppliers for coca cola (Be consistent in how you write the brand? Does it require a hyphen or capitalization?) and the bargaining power of its suppliers is considered to be weak. This is due to the fact that the company has many suppliers and can easily switch from one to the other. It is, however, not easy for a supplier to switch away from the company, as this would make then have create a huge loss. While Coca Cola has several suppliers, the individual suppliers are either small or moderately large. The bargaining power of suppliers: Although, (Do you need this comma. Compare this construction: According to the author, the common potato is native to the Americas) Coca Cola is a huge company and has many contracts with its suppliers securing pricing, suppliers still have some powers, (Comma splice) however, some of it may be out of their hands because sugar is a commodity, and like other commodities, its price can vary over time and if a natural disaster happen, it can affect sugar
  • 28. cane harvest and impact the company’s raw materials costs. (Run-on. Revise as multiple sentences?) (This paper has only been reviewed to this point because the tutor has reached the end of the time frame of the tutoring session. Consider submitting the remainder of the document to complete the review) Step3: Internal analysis An internal analysis is an exploration of an organization’s competency, cost position and competitive viability in the marketplace. The data generated by an internal analysis is important because you can use it to develop strategic planning objectives to sustain and grow your business. As a worldwide leader in producing beverages and soft drinks, Coca Cola company has a number of resources that play an important role in all stages of production and make sure that both, the productions as well as the delivery of its products and client service are of very high standards. The coca cola company also, has various tangible as well as intangible resources it in its different stages of production and delivery (Hitt). The tangible resources are inclusive of financial, human, and physical resources. The company has many physical resources that it possess and manages. Some of these physical resources are inclusive of the company’s equipment and as well as its buildings. The company has constructed buildings in almost every part of the world. By having a self-owned production plant, it, therefore, means that the company maintains a low cost of production. On the other hand, having self-owned equipment ensures that coca cola as a company does not need to rent or lease any equipment. This, therefore, manages a low cost of production. The company also, has a very strong financial position that enables it to have stable financial resources that carry the entire process of production without experiencing any major issues in relation to a shortage in cash. With a positive flow of cash, the company is able to conduct any activity that requires money.
  • 29. Being in such a position, the company is able to prevent any unnecessary debt financing. To add on to that, such a position enables the company to maintain a highly motivated workforce. Being in such a position has been the company’s primary force in driving its products into people’s shopping lists. Coca-Cola Company has also invested highly in employee development and training and this has greatly ensured that all its workers are delivering work that is of high quality. Training and developing of employees also ensure that those responsible for marketing ensure that the company’s products are purchased by the final consumers. Coca cola’s intangible resources are inclusive of goodwill, intellectual as well as technical resources. For many years, the company has been enjoying technical resources that have greatly fostered its goals. Coca-Cola has successfully come up with many enjoyable flavors in their soft drinks ranging from ginger, lemon, black currant, pineapple, orange flavor, among others. All these products are an indication that Coca-Cola Company has knowledge, and it has used it to its advantage in enabling it to stay ahead of its competitors (Gertner, and Rifkin). This has also, enabled the company to enjoy an intellectual property of all the brands that it provides. For many years, Coca-Cola has also enjoyed both goodwill and customer loyalty (Hitt). This has indeed been an internal strength that the company has used to its advantage since all its brands and products have always enjoyed undying loyalty from its customers. The visibility of the company’s brands also ensures that people are able to easily access the product at any time. The company also, enjoys a great distinctive capability that has enabled it to carry out its productions in ways that are much superior compared to its competitors. Some of the distinctive capabilities that the company has are inclusive of is architecture, reputation, as well as its innovation. This has enabled the company to continuously introduce newer products into the market.
  • 30. The four building blocks of competitive advantage. A company is said to have a competitive advantage, when its profit rates are higher than its industry average. Similarly, a company would have a sustainable competitive advantage when it comfortably maintains a high-profit rate for many years. Coca-Cola Company certainly has a competitive and has been able to sustain this competitive advantage. Efficiency: One of the factors that have lead Coca-Cola to have a competitive advantaged is by having superior efficiency. This efficiency is seen when the company able to extract more tangible value for every dollar cost of labor and asset. The company upgraded its physical distribution capability which enables it to substantially improve order of efficiency, reduce distribution and transport costs, and cut greenhouse gas emissions by utilizing the supply chain remodeling program Project Jupiter. It was designed to ensure CCA can service their 14,000 route trade customers across the state from their Eastern Creek distribution centre (Crawford, 2004). Quality: The second factor is quality that has allowed more differentiation by having to pay much closer attention to details. Innovations: Coca cola company is well known for (Gertner, and Rifkin). The company’s innovations have greatly contributed to differentiation by finding newer ways of achieving the desired result of the current product. The company itself, is an example of a company with sustained competitive advantage, innovation, an extensive business model and a intelligent distribution network. From producing the sweet fizzy drink to the world’s most recognized brand. Customer Responsiveness: The fourth factor has been on customer responsiveness. The manner in which consumers of coca cola products respond has contributed to low costs. Customer responsiveness has contributed to differentiation by incorporating features that customers would want to have. Step 4: Strategy formation Coca Cola could build its strengths to take advantage of its opportunity Coca Cola Company should build on its strengths so
  • 31. as to take advantage of its opportunities. One way in which the company could effectively do this is through diversification. In any health and food business, diversification helps to improve the business’s offerings. Coca-Cola’s supply chain that distributes it beverages should also be used to distribute snacks produced by the company. By so doing this would help share cost of supply. How Coca Cola could mitigate its threat by minimizing its weaknesses Coca Cola Company also needs to mitigate its threats by minimizing its weaknesses. One of the major raw material that the company uses is water. In the recent years however, water scarcity has been on the rise. There have been changes in climate which have caused these scarcity. At this early stage, the company should look for ways to either reduce the amount of water it uses in its processes or to complete remove it from its processes. Coca Cola should therefore make investment on new technologies as well as new operating procedures that would help reduce or replace water usage in its manufacturing operation. To do this, the company needs to find out where exactly it uses water and where it might have opportunity for improvements. A) Functional strategy The structuring of any organization does not only involve organizing its internal relationship and coca cola is one company that has certainly understood that. The company has managed to build a well-structured relationship with both internal as well as external groups. The relationship that Coca Cola has developed with its bottlers has provided them with great strength. Coca Cola works together with its bottlers and make sure that syrups and concentrates have been made into finished beverages that are then distributed to customers through the world. Coca Cola Company like most other companies has its own culture. One particular aspect of culture that is of great importance is the fact that it emphasizes on empowering and teamwork. The company considers its employees to be the most important assets that it has. On that note, Coca Cola strives to motivate its employees as it believes
  • 32. motivated employees would effectively drive the company’s growth. B) Business-level strategy Coca Cola makes use of the followings three business level strategy for both its local as well as it international operations · Differentiation:Firms use differentiation to operate in a competitive as well as in a unique manner within their respective industries. Since the Coca Cola was incepted back in 1886, it has at all times paid much focus on how to differentiate its products from other products produced by its competitors so as to establish its unique position within the beverage industry (Gertner, and Rifkin). The company’s top most brand such as Fanta, Sprite, and Coca Cola have always been manufactured under strict standards and using formulations that are also quite unique from the company’s competitors. The company uses differentiation in many other aspect of its operation this has made it maintain a leading market position. · Cost: Other than delivering to its customers top quality products, Coca Cola has always kept a closer eye on the increasing marketing as well as operational expenditures. Coca Cola Company has recognized the essence of cost control in order to gain a competitive advantage within its industry and consequently be able to operate in manner that is more competitive. Therefore, one of the company’s major business level strategy has been low cost leadership. Coca Cola Company has always maintained a tight cost control over its marketing, overhead, and manufacturing. · Focus (Niche): Coca Cola used focus or Niche strategy in differentiation as well as in cost dimension. For the niche low cost strategy, the company has be able to define particular lines of beverage products that it cans target specified market and be able to achieve low cost through manufacture of its products under processes that are highly efficient(Cunningham, and Harney). Coca Cola is said to produce its Coke for all its target market so as to achieve a low cost leadership. The company then keeps the target market under a complete niche while it
  • 33. selects its distribution network and designs its marketing campaigns. C) Corporate strategy Coca Cola has invested a large sum of money on expansion of its business. Currently, the company is present in more than 200 countries and this is a big indication of the focus it has on its growth strategy. As a large scale corporation, the company uses different growth strategy, in different situations, and in varying needs of its operations(Gertner, and Rifkin). For instance, when the company plans to target a new market, it would often pursue a horizontal growth strategy. Throughout its history, the coca Cola Company has also used diversification strategy. The company was basically founded to be a soft drink manufacturer. However, as time passed, the company entered into different similar industries such as fruit juice, coffee, tea, mineral water, among others. For many years, the company has worked hard in ensuring that it utilizes its ample war chest and has built a major presence in the rapidly growing beverage industry. Today, coca cola own about 16 per cent of Keurig Green Mountain and it is also said to be in the process of developing a fresh Keurig Kold device. The other major opportunity that coca cola has is on its extended reach (Gertner, and Rifkin). As the population continues to increase, the company has capitalized on consumers’ shift towards healthier living by focusing on bolstering a number of its business line. For instance, the Chinese, as well as the Indian market, have ramped up a demand for coca cola’s latest coffee and juice offerings. Thanks to these diversification strategies, the company’s business portfolio has greatly increased. At times, Coca Cola has had to suspend its growth strategies so as to take a stand in its market position. Coca cola has used this strategy whenever it feels as though its growth strategies have not been a feasible choice in some internal issues. The company therefore, stops at its present position and pays more attention on its supply chain, marketing efforts, R&D, and quality control. As for the business units where the company observes
  • 34. not to have any growth, it uses retrenchment strategy. Coca Cola retrenches such business units in various ways that include; R&D, marketing, or budget cut for production. The company also, uses acquisitions to change the manner in which it competes, just like Pepsi owns Rice-A-Roni, Quaker Oats, as well as Dorito, Coca Cola acquire Honest Tea among other companies. D) Global strategy In most cases when domestic markets have matured, companies would expand their operations outside to other nations. Coca Cola is a company that has expanded globally after the maturity of its domestic market. As a matter of fact, globalization is the key concern of Coca-Cola. The company has a total control in cost pressure, so the cost pressure is low. Therefore, Coca-Cola can operate under the Multidomestic Strategy. Thus, by running the local responsiveness of Coca-Cola is high. The company customize both their product offering and marketing strategies in different place with different national conditions. They also, are operating in seven regional operating groups such as, North America Group, Latin America Group, Europe Group, Eurasia & Africa Group, Pacific Group, Bottling Investments Group and McDonald's Division and the reason is simple,they are trying to create their value innovation activities by doing the market and product research in different potential national market. There are various global strategies that Coca Cola has used. One of the company’s global strategy has been standardization. Coca Cola has used standardization strategy in their centralized management system and has help it achieve great economic scale by discount through purchasing in bulk(Cunningham, and Harney). The other global strategy Coca cola uses has been adoption. Through adoption, Coca Cola creates a customized marketing mix for every nation and every region. Although adoption strategy might cost the company more, it however provides benefits of consumer diversity. Step 5: Recommendation(s) The primary goal of Coca-Cola Company is to ensure that they
  • 35. have satisfied their customers while they still promote their good social and ethic responsibility to the public. With the company’s tremendous success, there is no doubt that coca cola has something that most of its competitors do not have. For instance, coca cola has money that it still puts back into its business. This ensures that the business continues to grow. Coca-Cola does everything in its power to satisfy all its customers to the maximum. The company plans to use some of its money to update older equipment (Cunningham, and Harney). This would ensure that all its facilities are able to operate more effectively. By updating its equipment, the company will reduce the damage done to the environment. On that note, coca cola should also consider putting some of its money towards having a cleaner environment. The company should recycle and reuse various materials such as the plastic bottles. By doing this coca cola would certainly have helped to reduce the damage done to the environment. The company however faces some challenges such as government policies which are aimed to reduce sugary drinks consumption to fight obesity. As a way to fight obesity, some governments around the world have imposed high taxes on some of the products that Coca Cola produce and that have high sugar content. On this point, the company should join forces with its competitors and together request the government to lower its taxes on sugary products. to effectively do this, the company should tell the government know the number of people it has employed and that high taxes would increase the company’s operational cost and hence force them to send some of its employees home. The company should as well let the government know of the numerous investment that it has done and that it is still doing. The government should be made to understand that high taxes would crumble the company’s investment. The other challenge facing Coca Cola Company is the socials movements that aimed at minimizing environmental pollution. The company work hard to minimize its manufacturing and
  • 36. distribution impacts. Coca Cola should also actively support policies that are dealing with fair quality water. In addition to that coca cola should as well also engage in discussions that that would impact the environment in general. Work Cited Hitt, Michael A. Strategic Management. Cengage Learning, 2017. Cunningham, James, and Brian Harney. Strategy & Strategists. Oxford University Press, 2012. Gertner, David, and Laura Rifkin. "Coca-Cola And The Fight Against The Global Obesity Epidemic". Thunderbird International Business Review, vol 60, no. 2, 2017, pp. 161- 173. Wiley, doi:10.1002/tie.21888. “Fresh Challenges For New Leader At Coke.” Global Finance Magazine. “Mission, Vision & Values.” The Coca-Cola Company. Moran, Porcshe. “The Evolution Of The Coca-Cola Brand.” Investopedia, Investopedia, 15 Oct. 2012. “The Coca-Cola Company Announces New International Structure, Promotes Key Leaders.” The Coca-Cola Company, 24 May 2016. Crawford C. (2004) Coca-Cola Amatil-Marketing, Business studies update, Vol. 4 No.2 1