Stratigic Management assignement

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Stratigic Management assignement

  1. 1. Presenter: Mohammad Sabir Seddiqi Father Name: Haji Gulam Seddiqi Lecturer: Mr. Sikandar Zaman Subject: Strategic Management Topic: Coca- cola Class: BBA-J Class ID: 20409-11 E-mail: sabir_sedddiqi@hotmail.com contact no: 0788100902
  2. 2. Objectives of Coca Cola Inc. History of coca cola external environment competitive forces SWOT analysis corporate social responsibility
  3. 3. STRATEGIC MANAGEMENT TOPIC:
  4. 4. OBJECTIVES • To know the core values, vision and mission • To understand the internal and external environment in which Coca Cola operates. • To understand the future prospects of different products • To decipher whether Coca Cola strikes a balance between its profits and social responsibilities. • To identify and characterize the different growth strategies used by Coca Cola • To know about the Coca-Cola Company’s strategies management process
  5. 5. COMPANY OVERVIEW • A leading manufacturer, distributor and marketer of non-alcoholic beverage concentrates and syrups • The company owns or licenses more than 500 brands • It operates in more than 200 countries • The company is headquartered in Atlanta, Georgia HISTORY OF COCA COLA • Coca-Cola was first introduced by John Smyth Pemberton • He first distributed the product by carrying it in a jug down the street to Jacob’s Pharmacy and customers bought the drink for five cents at the soda fountain
  6. 6. VISION • People: Be a great place to work where people are inspired to be the best they can be. • Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs. • Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value. • Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities. • Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities • Productivity: Be a highly effective, lean and fast-moving organization.
  7. 7. MISSION • To refresh the world in body, mind and spirit • To inspire moments of optimism through our brands and our actions • To create value and make a difference everywhere we engage. VALUES • • • • • • • Leadership: The courage to shape a better future Collaboration: Leverage collective genius Integrity: Be real Accountability: If it is to be, it's up to me Passion: Committed in heart and mind Diversity: As inclusive as our brands Quality: What we do, we do well
  8. 8. EXTERNAL ENVIRONMENT POLITICAL ANALYSIS DEMOGRAPHIC ANALYSIS ECONOMIC ANALYSIS PESTLE ANALYSIS SOCIOCULTURAL ANALYSIS LEGAL ANALYSIS TECHNOLOGY ANLYSIS
  9. 9. EXTERNAL ENVIRONMENT • Changes in laws and regulations • Changes in the non-alcoholic business environment • Political conditions including civil unrest, government changes • Their ability to penetrate developing and emerging markets, which also depends on economic and political conditions POLITICAL ANALYSIS • After the attacks on September 11, 2001, Coca Cola sales were down. Consumers are now resuming their normal habits • The Federal Reserve cut the interest rate to recover from recession & this excited consumer demand . CocaCola borrowed money for investing in other products • The non-alcoholic beverage industry has high sales in countries outside the U.S. ECONOMIC ANALYSIS • Many U.S. Citizens are practicing healthier lifestyles. Many are switching to bottled water and diet colas instead of beer and other alcoholic beverages. • Time management has increased .The need for bottled water and other more convenient and healthy products are in important in the average day-to-day life. SOCIOCULTURAL ANALYSIS
  10. 10. EXTERNAL ENVIRONMENT • The new technology of internet and television which use special effects for advertising through media. • Introduction of cans and plastic bottles have increased sales for coca-cola as these are easier to carry and you can bin them once used. • There has been introduction of new machineries all the time. • The Wakefield factory has the technology to produce cans of coca-cola faster than bullets from a machine gun. TECHNOLOGY ANALYSIS • Soft drink Interbrand competition act of 1980 secured the right of concentrate • Producers (cps) to grant exclusive territories to bottlers • The company was granted a trademark for the name “coke” in 1945. • Pressure from the scientific community for the FDA to enforce caffeine labels warning of the dangers of caffeine consumption • Educated people belonging to upper and middle-income groups also commonly use Coca-Cola. • Major emphasis of Coca-Cola is to attract teenagers. • Diet Coca-Cola offered by Company is Very popular among diabetic patients. • Consumers from the ages of 37 to 55 are also increasingly concerned with nutrition. • Obstacles in international operations included regulations, price controls, advertising restrictions and lack of infrastructure LEGAL ANALYSIS DEMOGRAPHIC ANALYSIS
  11. 11. COMPETITIVE FORCES BARRIERS TO ENTRY SUPPLIER BARGAINING POWER CUSTOMER BARGAINING POWER INTENSITY OF COMPETITION COMPETITIVE FORCES THREAT OF SUBSTITUTES
  12. 12. SWOT ANALYSIS
  13. 13. WEAKNESS STRENGTHS •Global presence •Many variants. •Brand awareness •Logo famous •Strong marketing and advertising OPPORTUNITIES •Aggressive acquisitions •Increase in demand for bottled water •Growth of Hispanics •Negative publicity •Low profits in strong area •Decline in cash flow •Supply is restricted THREATS •Intense competition •Slowdown in rural •Demand •Negative health effect
  14. 14. GROWTH STRATEGY – CORPORATE LEVEL STRATEGY – FORWARD INTEGRATION STRATEGY – JOINT VENTURES – MARKET DEVELOPMENT – PRODUCT DEVELOPMENT
  15. 15. BCG MATRIX OF COCA-COLA
  16. 16. BCG PRODUCT LIFE CYCLE
  17. 17. CORPORATE SOCIAL RESPONSIBILITY • The coca-cola system in Vietnam and the local people’s committee launched a new community water initiative in December 2006. • The company continued to champion various initiatives such as rainwater harvesting, restoring groundwater resources, going in for sustainable packaging and recycling, and serving the communities where it operated. • Canada’s first-ever live positively stakeholder awareness campaign • Coca-cola India has been awarded the social and corporate governance award for best practices in corporate social responsibility 2009.
  18. 18. RECOMMENDATIONS • For the products like diet coke, pulpy orange and kinlely soda it better to stop manufacturing these products • Invest profits for future growth and for earning more of market share and profits • Invest heavily into products like fanta and sprite in order to push the products to star status. • For coca-cola -cost management, product differentiation and marketing have become more important as growth slows and market share becomes the key determinant of profitability • The organization has to carefully study external environment moves and accordingly devise strategies to gain competitive advantage • Coca cola has to make every possible move to ensure that its image remains that of an FMCG giant that would never compromise on the quality front
  19. 19. • www.slideshare.com • Wikipedia, the free encyclopedia
  20. 20. Thanks For Your Attention

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