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WEEK 8 ASSIGNMENT 3 1
WEEK 8 ASSIGNMENT 3 9Week 8 Assignment 3
Student’s Full Name
BUS499 Business Administration Capstone
Professor’s Name
Date
Week 8 Assignment 3
Coca-cola being a leading organization in the beverage industry
contributes largely to the sales of soft drinks globally. With
today’s stiff competition, organizations need strategies to gain
competitive advantage. This paper will analyze Coca-Cola in
regards to its business-level strategies, corporate-level
strategies, competitive environment, and market cycles.
Business-Level Strategies
A business-level strategy is concerned with the position of
organizations in a given industry while considering factors
comparison to the competition (Schermerhorn & Bachrach,
2010). Coca-Cola's business-level strategy is a differentiation
strategy. This strategy is based on offering product that is
unique hence an organization ends up acquiring a greater market
share and defending the higher pricing of products. Therefore,
this strategy differentiates an organization from its competitors.
Coca-Cola uses a differentiation strategy for it to remain
unique. With the high competition that it is facing, this strategy
separates Coca-Cola from its competitors. With this strategy,
Coca-Cola has been able to develop products that are unique
and valued by its customers. For instance, most of the
consumers opted for healthy drinks as compared to flavored
drinks and this had a negative impact on Coca-Cola. The taste
and preferences of customers keep on changing and hence an
organization has to develop ways that will help it remain
relevant in the market. Coca-Cola, therefore, developed Coca-
Cola Zero Sugar which was branded and marketed as a healthy
drink but a version of the original sugar-sweetened. The
production of this product was for it to remain relevant and
continue to be successful even with the transition of consumer’s
tastes and preferences. This indicates that Coca-Cola has a
unique capacity that is used for customization of its products
and services to ensure that the wants and the needs of the target
market are met. For instance, Coca-Cola provides Diet Coke and
vitamin to the old consumers who are health conscious. It also
meets the needs and expectations of its young customers
through the provision of cherry and vanilla coke.
Coca-Cola management invests a lot of time and money in
research and development. The main aim is to acquire an
understanding of the different market segments about
customer’s age, income, and lifestyle. This information is then
used in marketing for the products right and achieving the right
development. Coca-Cola packaging has remained unique as
compared to its competitors and hence it has been able to
remain adaptable in different market sections (Schermerhorn &
Bachrach, 2010). With its functional packaging, it has been able
to make its products appear different in the form of its sizes and
forms. Coca-Cola has achieved the production of cans and
bottles based on different sizes and shapes and hence this has
eased the operations of the vending machine. It also uses
materials that are recyclable hence promoting environmental
sustainability. Coca-Cola has also embraced image
differentiation. Its logo is essential in establishing the brand.
The main core competency of Coca-Cola is brand building. This
has been concerning its differentiation strategy. This is evident
from its logo which can be easily differentiated by its
competitors and consumers. Coca-Cola has embraced image
differentiation and this has been achieved by the logo. The logo
is important for every organization and with this; Coca-Cola has
been able to establish its brand name. Its brand and logo are
well recognizable by the consumers and hence makes it
comfortable for consumers to purchase Coca-Cola products.
Coca-Cola's motto is sharing happiness. This indicates that the
strategy is not only aimed at selling its products but to also
share a good relationship and communication with its
consumers. Every aspect of differentiation is related to brand
building. For instance, Coca-Cola has made its bottle in a
manner that will save the design and remain relevant in the
market. The bottle has proved to have an easy-grasp handle and
recognizable by the consumers. Corporate-Level Strategies
A corporate-level strategy is involved in decision making that
affects the organization as a whole. The strategy tends to impact
the products, human resources, management, and finances of an
organization (Schermerhorn & Bachrach, 2017). The products
produced by Coca-Cola are limited to non-alcoholic beverages.
This is different from its main competitor, PepsiCo, who
produces soft drinks as well as a snack food (Schermerhorn &
Bachrach, 2010). Coca-Cola’s main corporate-level strategy
focuses on vertical integration through acquiring bottle
companies and horizontal diversification which focuses on the
product range through the development of new products.
Vertical integration is based on the fact that the supply chain of
an organization is owned by that organization. It can also be
used in describing the management styles which incorporated
the large portion of the supply chain into the corporation. Coca-
Cola remains to be the largest bottler. In 2010 and 2011, it
strategically advanced its operations through partnerships. For
instance, Coca-Cola acquired Coca-Cola Enterprises (CCE)
which was a North American business. With this, Coca-Cola
was able to acquire more than 90% of the North American
market. For instance, Coca-Cola produces juice drinks, and to
develop these drinks, it had to purchase the minute maid
company whose main activities were the production of juice
products. The purchasing was done in 1960. However, by 1987,
Coca-Cola had introduced a new line of minute maid soft drinks
in the US. Coca-Cola also purchased a 40% stake of the Honest
Tea Inc at $43 million. The purchasing of the stake from this
company was aimed towards acquiring more resources for its
business (Schermerhorn & Bachrach, 2017).
With the vertical integration utilized by Coca-Cola, it has been
able to increase its operational effectiveness and efficiency
through integration of the manufacturing and distribution
capabilities into one company. The changes and partnerships
that Coca-Cola has made have strengthened its commitment to
the provision of sustainability and the provision of opportunity
for increased momentum. Initially, Coca-Cola limited its
activities in the manufacturing of extracts and marketing of the
final product. It, however, sold the extracts to local bottlers
who manufactured the products. With the increased product line
in Coca-Cola and high transaction costs with the independent
bottlers, Coca-Cola opted for forward integration processes. The
main aim of this involvement in this process was to reduce the
costs and gain more control over its distribution and production
processes.
Coca-Cola has dedicated much time and resources on brand
building. It developed a new mission which was to refresh the
world and inspire moments and happiness. This was to be done
through the creation of value and making a difference.
Therefore, the mission was targeted on the beverages and the
strategy management changes. Coca-Cola is committed towards
the provision of value and refreshment to its stakeholders and
hence this resulted in the nurturing and protection of its brands.
The key strategic objectives of Coca-Cola include;
strengthening alliances, acquisitions, and eradicating weakening
purchasing power among others (Schermerhorn & Bachrach,
2017). To meet these objectives, Coca-Cola acquired other
companies. It still invests in the traditional popularity of its
brands. For instance, Coca-Cola developed a “three cola
strategy” whose main aim was to focus on Coca-Cola, Diet
Coke, and Coca-Cola zero brands.
Coca-Cola, therefore, concentrates on a single business since
diversifying into a new market is risky. This hence helps
minimize risks through diversification of the opportunities
within its existing capabilities and resources. To portray its
corporate growth strategies, Coca-Cola focuses on its products
and the potential products and markets that it may have in the
future. Coca-Cola considers; expanding product lines within its
existing product range, offer new products in the existing brand,
and increasing market share and developing new products.
Competitive Environment
A competitive environment is an external system in which an
organization competes and functions. The most significant
competitor of Coca-Cola is Pepsi. The competition between
Coca-Cola and Pepsi has affected the profits in the beverage
industry. In the 1960s and ’70s, they both had a different
differentiation and advertising strategy. For instance, in 1974,
Pepsi developed a Pepsi Challenge where Pepsi hosted blind
taste tests to differentiate itself from its main competitor at the
time, Coca-Cola. In the 1990s, Coca-Cola and Pepsi adopted
low priced strategies in the supermarket channel. The main aim
was to compete with the store brands. However, this has a
negative impact on both Coca-Cola and Pepsi. Between the two,
Coca-Cola has proved to be a dominating organization in the
international market as compared to Pepsi. The main strategy
that led to this success is through entering markets early while
Pepsi entered new markets last (Schermerhorn & Bachrach,
2010). However, Pepsi is still competing aggressively in
emerging economies.
Coca-Cola and Pepsi have been able to sustain their profits in
the industry due to several reasons. The first reason is that they
have operated in the beverage industry for long and hence have
accumulated brand equity which has highly contributed to their
sustainability. They both use the strategy of brand equity in
diversifying its business by leveraging their brand. The second
reason is that the industry for a long time had no new threats
from new competitions. The third reasons are due to
globalization. Due to globalization, individuals have raised
from the emerging economies to the economic ladder. This has
provided a better opportunity for both the organization. The
fourth reason is the huge potential for growth presented to both
companies. This is due to the per capita consumption in the
emerging economies which has proved to be relatively small as
compared to the US (Hitt, Ireland & Hoskisson, 2010). The last
reason is due to the opportunity that Coca-Cola and Pepsi can
both diversify into the non-carbonated drinks. This can be a
solution to the reduced demand in the carbonated drinks.
For the business-level strategy, Coca-Cola uses a differentiation
strategy that has helped in remaining unique in the market. On
the other hand, Pepsi uses low-cost differentiation. It achieves
this strategy through the use of economies of scale. This is done
through production in mass. With this strategy, Pepsi has been
able to offer its products at a low price as compared to Coca-
Cola to stimulate demand and increase its market share. For the
corporate-level strategy, Coca-Cola has been developing new
products whenever it enters a new market. On the other hand,
the corporate-level strategy used by Pepsi is the use of mergers
and acquisitions (Hitt, Ireland & Hoskisson, 2010). The main
aim of this strategy is to expand into the international market. It
also seeks to gain access to competencies and infrastructure.
With this, Pepsi has been able to limit its direct costs for it to
achieve organic growth. Coca-Cola, as compared to Pepsi, has a
high chance of remaining successful in the long-term.Market
Cycles
The slow cycle market is a market where resources are secured
and the monopoly is maintained. On the other hand, a fast cycle
market is where the competitive advantage of an organization is
not protected from imitation, and imitation may happen quickly.
From the business-level and corporate-level strategies of Coca-
Cola and Pepsi discussed above, both companies have different
marketing operations. Today’s business environment is
showcased by the slow and fast cycle market. A segmentation
strategy can be applied to the groups' diverse markets based on
performance and characteristics. For both companies, market
segmentation may benefit both as they will be able to promote
their products in different and specific target markets. This will
hence help in ensuring that Coca-Cola fulfills the needs of the
market and increase its purchases by the consumers.
Sources Hitt, Ireland, &Hoskisson. 2020. Strategic management:
Concepts and cases: Competitiveness and globalization (13th
ed.). Mason, OH: South-Western Cengage Learning
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2010). Strategic
management: Concepts: Competitiveness and globalization.
Schermerhorn, J. R., & Bachrach, D. G. (2010). Introduction to
management.
Schermerhorn Jr, J. R., & Bachrach, D. G. (2017). Exploring
management. John Wiley & Sons.
Differing Experiences of Americans from the Colonial Era
through the Civil War
In the past, many Americans went through challenging
times as they fought for equal treatment in society. A majority
of the minority groups were discriminated against and denied
the freedom of expression. Long before the civil war, the rights
of some groups, such as the African American slaves and
women, were dismissed. In many instances, the groups
experienced severe suffering as a result of unequal treatment.
However, there have been many changes in modern societies as
there is more focus and emphasis on the need to respect and
honor the rights of Americans, especially the minority groups.
In the period between 1492- 1867, there were mixed reactions
on whether the feelings of the people based on the availability
of opportunities and the freedom to express themselves.
Therefore, the analysis will focus on evaluating the differing
experiences of Americans based on their independence and
respect for human rights from the colonial era through to the
civil war.
Differing Experiences of Americans from the Colonial Era
through the Civil War
Between the colonial eras through to the civil war, there were
mixed perceptions of the treatment of different groups in
society. At the time, there were cases of slavery among the
Native Americans living in the United States of America. The
communities had established different tribal territories that
resulted in insecurity and other issues. In many instances, the
Native Americans held the war captives as slaves who would
work in their farms. The slave trade took place between
different Native Americans who captured and sold the weak
people in society as slaves (American History, 2020). There
were mixed reactions to the feelings of freedom of expression
among the different groups of Native Americans. The groups
with power were very ruthless and were responsible for the
unfair treatment of the less privileged person in the community.
The Native Americans engaged in different activities, such as
small scale farming. In an attempt to facilitate the smooth flow
of operations in their farms, there were incidences of the small-
scale slave trade that sought to secure labor for short durations
(American History, 2020). Other Native Americans would
engage in different activities, such as gambling. Those who lost
in the gambling games would commit themselves to serve as
slaves in the short term. In some instances, there were
incidences of torturing as the groups engaged in different
religious rituals. Some natural calamities, such as severe
famine, would force some Native Americans to sell their
children in exchange for food (Higginbotham & Meinig, 1988).
The children were sold temporarily to serve as slaves in the
buyer's farms. At the time, the slaves from the Native American
groups were not subjected to severe treatment. In most cases,
the slaves would be integrated into the communities slowly over
time. In some instances, the captured people would be
assimilated into the communities and allowed to establish their
own families within the tribes. Therefore, there was regard for
the rights and freedoms of the Native American slaves.
In the history of the United States, from the pre-colonial era
towards the civil war, there was a slave trade that included
many African Americans. By the 1640s, the practices of
enslaving African Americans for life had been established
throughout the country; this resulted in problems for the
immigrants who were brought in as slaves (American History,
2020). In many instances, African Americans were enslaved for
life. There was the permanent enslavement of the children of
the slaves, and within no time, the practices of the slave trade
received legal recognition in Virginia. The increased
importation of different products, such as tobacco by English
men, increased the demand for the slaves. Following the
legalization of slavery in Georgia, 1750, there was the
importation of slaves directly from Africa. There was the
establishment of a system of Black bondage. The slaves from
the African origin were mistreated and had to persevere through
immense suffering. Even though a few Native Americans were
taken in as slaves, a majority of the African Americans were
considered as prime bondsmen. In many instances, it was very
challenging for the Africans to escape from bondage, as it was
easy to identify them based on their skin color. For the
Europeans and the Native Americans, it was easy to escape from
slavery, as they would blend easily with other groups in society
(New Jersey State Library, 2020). In most cases, the Indians
were familiar with the terrains of the land; this made it easier
for them to escape from slavery. Besides, there were fears that
the enslavement of the Indians would result in increased
warfare, and this would disrupt the lucrative slave trade
business. Therefore, the Africans were exposed to severe
treatments in comparison to other groups, such as Native
Americans.
During the colonial era, a majority of African Americans were
opposed to slavery and adopted different approaches to resist
their bondage. The freedoms and rights of the African
Americana were violated, and they never had the chance to lead
ordinary lives. In most cases, the Black Americans were denied
different opportunities, such as the ability to own property in
various areas throughout the country (Jordan & Wright, 1992).
In their efforts to protest against the injustices of slavery, the
African American slaves would stage demonstrations against
their masters. In some instances, the slaves would kill their
owners and destroy the crops and animals within the firms. In
some cases, some of the slaves would succeed in running away
from slavery and would be able to lead normal lives. Following
the escape, it was very challenging for the Black Americans to
survive in the community as they were always looked down
upon (Roper, 2006). Some of the runaways from different
regions, such as Carolina and Georgia, came together to
establish maroon communities. In many instances, the maroon
communities would raid the plantations in search of food.
There were incidences of revolt, where the slaves would come
together and establish rebellions against their masters. For
instance, in 1739, there was a significant rebellion that resulted
in the deaths of fifty slaves and twenty-five Whites.
Later there were attempts made to control the behaviors of the
slaves in the community. Black codes were developed to reduce
the possibilities of uprisings and rebellion from the slaves. The
laws were against the rights of the people. In many instances,
there was an increase in unfair treatment against black
communities in society (Jordan & Wright, 1992). Few
opportunities were availed for the slaves, as they spent a
considerable chunk of their time in the plantations working for
their masters. Despite the increased freedom for the Whites in
the community, the African Americans felt oppressed. There
was a denial of freedom of movement for the slaves following
the establishment of the black codes. In most cases, the slaves
were required to obtain written permission from their masters in
instances where they needed to travel. The slaves were
prohibited from gathering in groups in the absence of their
masters. There was severe punishment s for those who went
against the black codes. In most cases, slaves found guilty of
petty offenses were hanged.
Towards the end of the colonial period, the population of the
blacks had rapidly increased throughout the country. At the
time, a majority of the African Americans had come into the
country as slaves, and their numbers had multiplied. The
Blacks consisted of approximately 20 percent of the American
population toward the end of the colonial era (Roper, 2006). A
majority of the blacks in the country were native-born, and this
resulted in the formation of African Americans. There were
changes in different groups throughout the country, which
resulted in the creation of new cultural groups. The African
Americans managed to retains some aspects of their cultures,
such as music, religion, and different types of dances. The
slaves also managed to learn different customs and manners of
their land of enslavement. Many African Americans learned
how to communicate in English and other languages, such as
Dutch. The changes in cultural aspects also influenced the
Whites. The blacks become empowered over time and managed
to establish different institutions, such as churches that were
non- African in nature. A majority of the blacks were converted
into Christianity (New Jersey State Library, 2020). At the time,
African Americans started experiencing an increase in their
freedoms and the opportunities to engage in different activities
in the community. The African Americans secured access to
formal education, which was instrumental in their movement
towards independence.
During the pre-colonial period, the roles executed by the women
were defined by their cultures. In most cases, the women never
had any rights unless they were either married or had a male
guardian. The women, especially those coming from the African
American families, were forced to undertake difficult tasks, and
in most cases, their efforts were never recognized. The African
American women who had arrived in the country as slaves
suffered from discrimination based on their race. The women
also suffered from sexism from men. In the colonial era, the
young girls would be forced to start working early by engaging
in different tasks, such as fetching water. The women at the
time were considered to be inferior (Higginbotham & Meinig,
1988). In many instances, the women suffered in the hands of
their husbands who would commit acts of violence. There was a
disregard for women's rights in society, especially for the Black
Americans who had arrived in the country as slaves. However,
the treatment of women in the community improved, and they
were provided with more opportunities in society.
Conclusion
Through the analysis, the study has developed a concrete
understanding of America's history during the pre-colonial era
through the civil war. The study has examined the stories of
ever-increasing freedoms and opportunities for different groups,
such as the Native Americans, the African Americans, and the
women from the slave communities. Based on the study, it is
clear there was an increase in opportunities and freedoms for
different groups over the pre-colonial era.
References
American History. (2020). Native Americans in the Colonial
Period. American-history.net. Retrieved 30 May 2020, from
https://american-history.net/colonial-period-2/native-americans-
olonial-period/.
Higginbotham, D., & Meinig, D. (1988). The Shaping of
America: A Geographical Perspective on 500 Years of History.
I. Atlantic America, 1492-1800. Journal Of Interdisciplinary
History, 19(1), 137. https://doi.org/10.2307/204246
Jordan, W., & Wright, D. (1992). African Americans in the
Colonial Era: From African Origins through the American
Revolution. Ethnohistory, 39(1), 90.
https://doi.org/10.2307/482579
New Jersey State Library. (2020). Unit 4 Blacks in the
Revolutionary Era, 1776-1789 | New Jersey State Library. New
Jersey State Library. Retrieved 30 May 2020, from
https://www.njstatelib.org/research_library/new_jersey_resourc
es/highlights/african_american_history_curriculum/unit_4_revol
utionary_era_blacks/.
Roper, L. (2006). Betty Wood, Slavery in Colonial America,
1619–1776. The African American History Series. Lanham,
MD: Rowman and Littlefield2005. xi + 131 pp. ISBN: 0-7425-
4418-4 (hbk.); 0-7425-4419-2 (pbk.). Itinerario, 30(2), 210-212.
https://doi.org/10.1017/s0165115300014376
running head: week 6 assignment 2 1
week 6 assignment 2 9Week 6 Assignment 2
Student’s Full Name
BUS499 Business Administration Capstone
Professor’s Name
Date
Week 6 Assignment 2
Businesses operate in a dynamic environment that impacts
business directly on their operations and whether the objectives
can be achieved. This paper will analyze Coca-Cola in regards
to its general environment, forces of competition, how it can
improve its ability to address the forces, eternal threats, and its
greatest strengths and weaknesses and strategy that it can use to
take maximum advantage of its strength and reduce its
weakness. General Environment
The two segments that I would rank the highest are the political
segment and social segment. Although Coca Cola stands to be a
giant in the production of beverages, changes in the general
environment may impact it. Coca Cola undertakes its activities
globally and hence it is subjected to pressure. The world market
is highly globalized and hence they are affected by certain
factors. Coca Cola profits and revenue can be impacted by any
change in the global business environment.
Political segment
Laws and regulations from the government on food
products may impact Coca Cola directly. For instance, Coca
Cola operates in the US and hence is impacted and should
follow the Food and Drug regulations. Laws are different from
country to country. Given the global nature of Coca Cola, it
must conform to all the relevant laws in countries that it
operates in. Coca Cola is also required to adhere to all the
quality standards as it applies to a country that it operates in.
Additionally, it is required to conform to common accounting
and business regulations. Tax laws also apply differently in
countries. To do business effectively in a given market, Coca
Cola has to follow all the relevant laws. However, a change in
these laws may impact the revenue and profit of Coca Cola.
Additionally, when tax rates are prone to any increase or
decrease, it may impact the profits. Further, when a political
situation changes such as political uncertainties, this may
impact Coca Cola negatively.
Coca Cola has undergone through several lawsuits and remains
a target due to the overconsumption or over usage of water.
Coca Cola highly relies on water, which is a scarce resource, for
production. For instance, it has received several protests in
India. In Kerala state India, a case was filed against Coca Cola
as its high consumption had led to an increase of water
shortage. Villagers from the stated that they had a shortage of
water near the Coca Cola plants due to the high consumption
(Doshi, 2017). Coca Cola has also received lawsuits relating to
the use of ingredients that are harmful for consumption and
some lawsuits related to the quality standards. It was alleged
that Coca Cola was using pesticides in its products. These
issues negatively affect their brand image and revenue.
Social segment
Consumer needs, tastes and wants to keep on changing and
hence an organization must keep up with the changes. Most
consumers have transited from flavored drinks to healthy
drinks. Such trends impact Coca Cola as it leads to reduced
popularity of its products. This indicates the changes in the
taste and preference of the consumers affect the profits of Coca
Cola. Its products are of different flavors and hence that has
gained popularity over the years. However, with the transition
to healthier drinks, Coca Cola will be required to focus and
invest more in the efforts of marketing. Media has also played a
vital role in changing the perception of the consumer from the
consumption of soda drinks due to its calorie count. Obesity has
been an issue globally and there are efforts made for people to
change their choice of food products. This has led to a global
decline in the consumption of junk food and soda beverages.
Coca Cola can hence receive declined sales as most people are
adopting lifestyles that are healthier and shifting from products
such as soda which can add weight.
Due to the changes in taste and preferences, Coca Cola
introduced products that have a low calorie count. This was an
effort to adapt to the changes. Coca Cola is also affected by
other social trends such as a change in attitudes towards brands.
Culture also plays a vital role in international trade as it
impacts businesses. However, it can be used as a marketing
tool. In developing countries, Coca Cola has to factor in culture
as it is highly respected. Therefore, it must adopt a marketing
strategy that incorporates local markets and their culture. Five
Forces of Competition
Five forces of competition is a tool that can be used by business
in analyzing the critical forces that affect competition in an
industry. The five forces present an evaluation of every part of
the market and industry. The forces can be analyzed and be used
as strategies to increase the profitability of the business. The
two forces of competition chosen are; bargaining power of
suppliers and the threat of new entrants.
Bargaining power of suppliers
Coca Cola’s bargaining power of suppliers is weak. This is
attributed to the fact that it has a high number of suppliers and
it has low switching costs. This indicates that Coca Cola can
easily switch from a supplier to another but a supplier cannot
switch easily. Suppliers can lose easily as compared to the
organization. The products that may be supplied to Coca Cola
include sugar and flavor among other ingredients. This indicates
that suppliers have limited control over price and hence cannot
change the price structure. The suppliers are also required to
observe the guiding principles such as the Agriculture Guiding
principles. Such a principle suggests that suppliers have a lower
bargaining power hence giving organizations a higher influence
on pricing and contracts.
The threat of new entrants
Coca Cola has a low entry to barriers hence leads to the
low cost of production and marketing expenses. The market
entry is easy as there are small scale companies that entering
this industry. Coca Cola, however, is a global organization
whose products are consumed in more than 200 countries and
hence the small scale companies and new entrants may have no
significant impact on its operations. Coca Cola has a strong
market presence and hence it can easily expand and penetrate in
new markets. It also has moderate customer loyalty in the
industry. Future Improvements
The two forces that have been assessed are; bargaining power of
suppliers and the threat of new entrants. The bargaining power
of suppliers may be addressed in several ways in the near
future. To improve its ability to address this force in the near
future, Coca Cola needs to develop programs that will ensure
that diversity is promoted among suppliers for a valid reason. It
should also make efforts in developing strategic partnerships
and agreements with its suppliers. This will ensure that the
bargaining power of suppliers standardizes the pricing in case
of future fluctuations.
For the threat of new entrants, Coca Cola should strengthen its
market presence. This can be done through penetration into new
markets as well as expanding its portfolio. This will help Coca
Cola in acquiring a stronger base and will also gain part of the
competitor’s market share by gaining the competitor’s
customers. It may take some time for a new entrant to build
customer loyalty. This is an advantage that Coca Cola has over
the new small businesses. Greatest External Threat
The greatest external threat that Coca Cola is facing is new and
existing competitors. In the past, Coca Cola was suspected to be
using pesticides. Most people are opting for healthier options
that soda beverages which contain high calories count. There
are trends and development of cafes which pose danger to Coca
Cola. Other products such as smoothies, healthy tonics, and teas
are being supplemented by many consumers and this threatens
Coca Cola. People are looking for alternatives that are healthy
and for products that have less sugar. Companies such as
Starbucks are taking over and hence could affect Coca Cola
sales. Governments and media are publicizing for obesity
concerns and are promoting the need for a healthier lifestyle. As
compared to other external threats, this stands to be the greatest
as it impacts the financial performance of Coca Cola.
The strategy that would help in combating this threat is for
Coca Cola to develop low and zero-calorie drinks. With these
products, Coca Cola will be able to compete effectively with
companies offering healthier options brands. Coca Cola will see
an improvement in its performance report after considering this
solution. It should consider other innovation plans which will
help stay ahead of the competition. It already has made some
efforts such as the provision of water. It should have a
continued effort in developing and innovating new health and
wellness brands. Greatest Opportunity
The greatest opportunity that Coca Cola has lies outside of the
U.S. Coca Cola can invest worldwide and mostly in developing
markets such as Russia, China, and India among others over the
next five years. Coca Cola should put more emphasis on
emerging-market growth. It should have more penetration in
developing countries. Without penetration, its major competitor
Pepsi will gain market share in the developing countries
(Craft.co, 2020). Therefore, its opportunity is to develop future
investments in an emerging market. Other opportunities that
Coca Cola has include the creation of new products among
others. However, this opportunity remains the greatest as it will
be able to find the niches that are untouched by its competitors
and to penetrate in new markets.
The strategy that Coca Cola should choose is a market
development strategy. This strategy will involve finding new
buyers for its existing product. Coca Cola has launched
products such as Diet Coke. Coca Cola can find new markets for
its products. Strengths and Weaknesses
The greatest strength that Coca Cola has is brand image and
high brand awareness (Raben, 2019). Coca Cola is known in
almost every part of the world and hence has a high degree of
popularity. With its global presence, it enjoys the largest market
share of around 48% in the industry. In history, Coca Cola’s
soft drinks still stand the most-selling drinks. Another greatest
strength is extended global reach. According to research, it has
a serving of 9 billion per day. It also has the largest brand
valuation as its estimated brand value is around $79.96 billion.
The greatest weakness of Coca Cola is aggressive competition.
Pepsi stands out as its greatest competitor and this impact Coca
Cola greatly (Craft.co, 2020). The second weakness is product
diversification. Coca Cola has a low product diversification as
Pepsi have developed many snacks. The third weakness is health
concerns. Carbonated drinks have high calories and hence may
pose health issues such as obesity and diabetes.
Strategy or Tactic
To maximize its strengths, it has to focus on the market
and growth strategy. It should focus on developing more
opportunities in developing markets. It should do this by
leveraging its scale as well as reaching its system to shape and
capture value. This strategy is a good choice as Coca Cola will
be able to penetrate the emerging markets and countries before
its competitor, Pepsi (Craft.co, 2020).
The strategy that can fix its weakness is through
developing healthier specialty brands. It should also consider
expanding its corporate sector, diversifying its products and
provision of beverages with less to no calories. This strategy is
the best choice as it will be able to compete effectively with
other companies in the industry. Resources, Capabilities, and
Core Competencies
Coca Cola has tangible and intangible assets. Its intangible
assets can be directed in increasing market position and dealing
with competition. Coca Cola has strong and sustainable
financial resources. With its strong financial resources, it
invests billions in major markets. For its physical capital, Coca
Cola has a strong telecommunication infrastructure and multiple
facilities. Its employees are also impacted by their required
skills, expertise, and credibility. Coca Cola’s capabilities act as
its basis for strategy and primary source of returns. Its
capabilities have also led to the creation of a competitive edge.
It has enabled the expansion of Coca Cola. This has led to
increased sales and increased market share. For its
competencies, Coca Cola has a strong brand, distribution
system, and human assets. In history, it is the company with a
popular and high rate of sales of soft drinks. It has around 400
brands and hence shows how diversified its products are (Porth,
2003). Its employees contribute highly to business model
success.
Sources
Craft.co. (2020). The Coca-Cola Company competitors.
Retrieved from, https://craft.co/the-coca-cola-
company/competitors
Doshi, V. (2017). Indian traders boycott Coca-Cola for
‘straining water resources’. Retrieved from
https://www.theguardian.com/world/2017/mar/01/indian-
traders-boycott-coca-cola-for-straining-water-resources
Porth, S. J. (2003). Strategic management: A cross-functional
approach. Prentice Hall.
Raben, N. (2019). Coca-Cola’s Timeless Brand Identity.
Retrieved from https://ibrandstudio.com/articles/coca-cola-
timeless-brand-identity
1
8Week 3 Assignment
Student’s Full Name
Strayer University
BUS499 Business Administration Capstone
Professor’s Name
Date
Week 3 Assignment
The success of a business is dependent on various factors that
could be either internal or external. Such elements include
technology, size and location of the business, economic, social,
and political factors, and the composition of stakeholders and
the workforce. Therefore, the purpose of this paper is to analyze
the Coca-Cola Company in line with globalization, technology,
industrial organization model, resource-based model, vision and
mission, and stakeholders, and how these components influence
its overall success. Globalization
Globalization is a process that allows a company to defy
boundaries and sell products, skills, ideas, and labor across
markets other than their home's. The Coca-Cola Company is
known worldwide, with operations in over 200 countries and
84,000 suppliers (Saylor.org, 2013). Most of the company's
income comes from the international market, based on the
ability of the company to expand to a multimillion-dollar status.
Coca-Cola began its globalization journey in the 1900s with the
company starting operations in South America by building
bottling plants that later grew to Europe, Asia, and Africa
(Saylor.org, 2013). This journey has benefited the host
countries in many ways; empowering their economies, creating
employment, contributing tax, and supply of affordable foods
and beverages.
The various aspects of globalization involve the impact on
political, economic, social, and technological factors of the
local country. Politically, the company conforms with the
prevailing laws and regulations, and any other business laws of
the host countries. Although the company has numerous positive
influences on politics, they have occasionally faced lawsuits
accusing them of consuming a lot of local water to a magnitude
that causes water shortages (Pratap, 2018). Another allegation is
that the company uses harmful ingredients in their products that
compromise the quality of their foods and beverages.
Economically, the corporation ensures the utilization of locally
available raw materials that promote agriculture, energy,
production, logistics, transportation, distribution, retail,
cooling, advertising, and media and packaging (CCI, 2020). For
example, the branch in Turkey and Pakistan has seen their
economies receive over 3.5 billion dollars, generated over 2.5
billion revenue for farmers and taxes for the government, and
employment of over 30,000 people (CCI, 2020). For social
development, the company has ensured the fostering of local
cultures by creating marketing strategies that capture
indigenous activities, producing products that comply with their
tastes and preferences, and production of healthy products that
reduce lifestyle diseases such as obesity (Pratap, 2018).
Technology
Technology affects the operations of a company in three
different ways; technology diffusion and disruptive
technologies, the information age, and increasing knowledge
intensity (Hitt, Ireland, & Hoskisson, 2020). For Coca-Cola,
most of its operations are dependent on technology from
production, packaging, and distribution to sales and marketing.
Over the years, the organization has seen an improvement in the
transportation of products across markets with faster semi-
trucks, cargo ships, jet aircraft, and cost-effective trains
(Saylor.org, 2013). Besides, with the advancement of
technology, the company has increased access to information
that allows suppliers and warehouses to track inventory
quantities and documentation that reduces overhead costs.
Additionally, computerization and automation of all the
company's activities have helped in increasing the speed and
volumes in production. Technological advancement has seen the
business compete with other companies with ease, and reduced
cost of production and delivery, for instance, the introduction of
vending machines to aid in distribution. Similarly, the
worldwide rise in the use of internet products such as social
media has improved the availability of information and
advertising for products and reaching a wide range of
consumers. Social media may be seen as a disruptive technology
by nature as it has changed several conventional approaches and
has increased the use of smartphone technology to stamp
dominance. The company has been using social media to make
contact with the customers and get immediate feedback; the
impact has seen taking advertising to the next level by
addressing the needs of each specific market. Industrial
Organization Model
The corporation can attribute its accomplishments to their
ability to conduct a thorough market analysis to stay ahead of
their competition. Market analysis assists in identifying any
internal and external factors that would affect the operations of
a business, such as political, economic, social, technological,
environmental, and legal considerations. The general
environment consists of food and beverage companies that
produce almost similar products in the market and show
persistent competition for Coca-Cola. These companies are;
Pepsi, Tropicana, Britvic, Red Bull, Monster, among others. The
industry is majorly oligopoly competition, whereby some fewer
sellers control sales in the market, and there are barriers to
entry and characterized by prevalent advertising allowing the
company to dominate the few available businesses.
What makes Coca-Cola excel in the food and beverage industry
is due to the following aspects they have been nurturing since
its inception. These are; assurance, strategic investment,
determined marketing, and public relations, great products or
services to sell, excellent customer service, efficient facilities,
and paying attention to details (CCI, 2020). Specifically, the
use of robust marketing and public relations strategies have
ensured that the company stays ahead of their competition.
These approaches require employees with excellent marketing
skills, customer relations, and dedicated to providing quality
services. Mostly, this strategy is implemented by the marketing
team, which is one of the crucial components that determine a
company's success. In the long-run, the company manages to
have a considerable consumer base who has continuous
satisfaction and loyalty and, in return, makes high sales that
impact performance on capital.Resource-Based Model
The resource-based model contributes to understanding the
success of The Coca-Cola Company by pointing out the unique
features that it possesses. For instance, the corporation has the
following as the opportunities and advantages; having well-
organized distribution channels, a mighty brand name, being the
initial market producers, highly automated and production
capacity, and computerized communication and information
systems (Tunaiji, 2019). Others are; prioritizing staff training
and having qualified staff, indulging in corporate social
responsibility activities, holding the patent for Coca-Cola
formula that prevents imitation by competitors, and having the
highest market share in the sector.
Moreover, the company uses brand dependency and the Coca-
Cola formula as a strategy to drive its sales and increase
revenue. The company has a powerful message that sticks and
promotes the brand name by investing in positive qualities,
benefits, personal and enterprise values (Tunaiji, 2019).
Similarly, it produces products that adapt to consumer needs in
terms of production volumes and customer satisfaction. The
company achieves this feature by having customized goods and
services, marketing strategies, and distribution channels that
suit the local markets. These activities allow the business to
exploit the opportunities in the market and maximize its
resources and capabilities towards achieving above-average
profits. Vision
The vision of the company is to ensure an excellent workplace
for employees to maintain high productivity, bringing high-
quality beverages to satisfy different tastes while supporting
sustainable communities for future generations and maximum
profits for shareholders (Tunaiji, 2019). It is evident from the
vision statement that the company's destiny is great
achievements; whereby, the center of operation is on the
satisfaction of the customer and the employees that improve
loyalty and effective productivity, respectively. Furthermore,
the vision involves being a responsible corporation by
promising to be reliable in supporting the future and producing
the desired profits for the shareholders. In line with the vision,
the company has taken measures in promoting environmental
conservation, providing quality products, maintaining a vast
customer base, and making sufficient return on capital (Tunaiji,
2019). Mission
The mission statement of the company inspires;
· To refresh the world
· To inspire moments of optimism and happiness
· To create value and make a difference
· To satisfy consumers taste in the beverage industry
(Tunaiji, 2019).
Basing on the above statement, The Coca-Cola company has
ensured constants supply of foods and beverages, the
satisfaction of customer needs across the world, involved in
activities of social responsibility to elevate the lives of the
people, and indulged in creative and innovative events to
nurture talents and promote confidence. Stakeholders
The company has various stakeholders that contribute to the
success of the business. The capital market stakeholders
include; Berkshire Hathaway, The Vanguard Group, Inc.,
Capital Research & Management Co., SSgA Funds Management,
Inc., BlackRock Fund Advisors, Wellington Management Co.
LLP, Capital Research & Management Co., Capital Research &
Management Co., Geode Capital Management LLC, and
Northern Trust Investments, Inc. (Market Screener, 2020). Each
of these companies has committed investment that totals to USD
1,530,264,455 in 2019. The impact of this enormous investment
would be the duty of the management to ensure they work
tirelessly to ensure each stakeholder has the required return on
capital and that the company is making profits.
The following are the regions that represent the product market
stakeholders; the United States, with over 11 million sales, and
Global with over 9 million. Europe, Middle East, and Africa
with over 6 million sales, Asia pacific with over 4 million,
Latin America with over 4 million, North America 191 million,
and Corporate with 94 million (Market Screener, 2020). The
contribution of sales by each region shows how endowed the
company is and how its marketing strategy is working to ensure
the attainment of maximum profits. The organization
stakeholders involve the employees and management staff, the
CEO, COO, vice president, among others, that provide
consistent running of everyday activities. Their impact would be
the generation and implementation of new ideas, running daily
business activities, marketing, human resource management,
and evaluation of set goals.
Sources
CCI, (2020). Sustainability. CCI. Retrieved 19 April 2020 from,
https://www.cci.com.tr/en/sustainability
Hitt, Ireland, & Hoskisson. 2020. Strategic management:
Concepts and cases: Competitiveness and globalization (13th
ed.). Mason, OH: South-Western Cengage Learning
Market Screener, (2020). The Coca-Cola company (KO).
Superperformnce. Retrieved 19 April 2020 from,
https://www.marketscreener.com/THE-COCA-COLA-
COMPANY-4819/company/
Pratap, A. (2018). Coca-Cola pest analysis. Notesmatic.com.
Retrieved 19 April 2020 from,
https://notesmatic.com/2016/08/coca-cola-pest-analysis/
Saylor.org, (2013). Globalization and the Coca-Cola Company.
Retrieved 19 April 2020 from,
https://resources.saylor.org/wwwresources/archived/site/wp-
content/uploads/2013/02/BUS208-2.5.6-Globalization-and-The-
Coca-Cola-Company-FINAL.pdf
Tunaiji, N. (2019). Coca cola strategy project. Johnson &
Johnson. Retrieved 19 April 2020
from,https://www.researchgate.net/publication/334746764_Coca
_Cola_Strategy_Project
1
Week 3 Assignment
Student’s Full Name
Strayer University
BUS499 Business Administration Capstone
Professor’s Name
Date
1
Week 3 Assignment
Student’s Full Name
Strayer University
BUS499 Business Administration Capstone
Professor’s Name
Date
How To Earn Full Credit on Assignment 4
Switch to Slide Show and click the to watch the video on
each slide
1
Log into the Blackboard course
Navigate to the Course Info section
Click the linked file titled:
“BUS499 Assignment 4 Template 2020.docx”
Open the downloaded file
Click “Enable Editing”
Save the file to your computer
Download the Template
2
Review the Instructions
Navigate to Week 10 in Blackboard
Read the Capstone section
Navigate to the Course Info page in Blackboard
“Download the Course Guide”
Review the Scoring Guide in the Course Guide
Open the previously saved BUS499 Assignment 4 Template
2020 template
Read the entire template
Be sure to also read all announcements and email
3
Complete the To-Do List in weeks 1 - 10
Review Chapters 1 - 13
Study Course Concepts
4
You will use the same company you researched for assignments
1, 2, and 3
The Overview section of the assignment instructions include
tips on choosing a public corporation
Papers on non-publicly-traded corporations earn a score of zero
Company to Research
5
Template Instructions
Each slide needed in your submission is provided in this
template.
Do not add slides
Do not delete slides (except the “How to Use This Template”
slide)
Replace the “blue” font on each slide with your presentation
content
Change all font to black
Use bullet points on the slides
Do not type every word you plan to say on the slide
Enter the text/transcript of your talk in the speaker notes section
The speaker notes section is the gray area below each slide
Do not enter your speaker notes in comment boxes
Do not include audio or video clips
6
Title Slide
The first slide of your submission should be the Title slide
Replace the text that reads “Insert Student Name Here” with
your name
Replace the text that reads “Professor’s Name” with your
professor
Highlight your name then change the font color to black
Use the Speaker Notes section to transcribe exactly what you
would say as you introduce your presentation
Select “Save”
7
SWOT Analysis
Include the name of the company you researched
Use the pre-formatted table in the slide to describe one or two:
Strengths
Weaknesses
Opportunities
Threats
Transcribe your presentation in the speaker notes section.
Remember this is a 15-minute presentation
8
SWOT Analysis Strategy
Strengths and Opportunities
Identify specific strategies needed to address the firms strengths
and opportunities
Insert a bullet describing the strategy to capitalize on strengths
and opportunities
Insert another bullet describing the strategy to capitalize on
strengths and opportunities
Use the Speaker Notes section to transcribe exactly what you
would say as you discuss the slide content
9
SWOT Analysis Strategy
Weaknesses and Threats
Identify specific strategies needed to address the firms strengths
and opportunities
Insert a bullet describing the strategy to minimize weaknesses
and threats
Insert another bullet describing the strategy to minimize
weaknesses and threats
Use the Speaker Notes section to transcribe exactly what you
would say as you discuss the slide content
10
Competitiveness Strategy
Identify specific levels and strategies needed to maximize
competitiveness
Remember that the levels studied in this class are business-level
and corporate level
1st bullet point: Clearly state in the bullet that you are
discussing the “business-level strategy” and clearly state which
business-level strategy discussed in the course you have
selected
2nd bullet point: Clearly state in the bullet that you are
discussing the “corporate-level strategy” and clearly state which
corporate-level strategy discussed in the course you have
selected
In each bullet include a few words describing the key points
regarding why the selected strategy is appropriate for your firm
11
Profitability Strategy
Identify specific levels and strategies needed to maximize
profitability
Remember that the levels studied in this class are business-level
and corporate level
1st bullet point: Clearly state in the bullet that you are
discussing the “business-level strategy” and clearly state which
business-level strategy discussed in the course you have
selected
2nd bullet point: Clearly state in the bullet that you are
discussing the “corporate-level strategy” and clearly state which
corporate-level strategy discussed in the course you have
selected
In each bullet include a few words describing the key points
regarding why the selected strategy is appropriate for your firm
12
Communications Plan
Competitiveness
Include a bullet point on your plan to communicate the
competitiveness strategies to stakeholders
Include a second bullet point on your plan to communicate the
competitiveness strategies to stakeholders
Hint: don’t overthink this one. A communication plan is simply
how you are going to inform your stakeholders of your
strategies.
A plan is a detailed proposal for doing or achieving something
13
Communications Plan
Profitability
Include a bullet point on your plan to communicate the
profitability strategies to stakeholders
Include a second bullet point on your plan to communicate the
competitiveness strategies to stakeholders
Hint: don’t overthink this one. A communication plan is simply
how you are going to inform your stakeholders of your
strategies.
A plan is a detailed proposal for doing or achieving something
14
Corporate Social Responsibility
Responsible (ethical) corporate citizen
1st bullet point on the assessment of efforts by the corporation
to be a responsible (ethical) corporate citizen – specific
example
2nd bullet point on the assessment of efforts by the corporation
to be a responsible (ethical) corporate citizen – specific
example
Impact of efforts on company’s bottom line
1st bullet point on the impact the efforts have on the company’s
bottom line – specific example
2nd bullet point on the impact the efforts have on the
company’s bottom line – specific example
15
You should use at least three (3) quality references, one of
which should be the course textbook. Wikipedia and similar
websites do not quality as academic resources.
Do not use cheat sites as sources (i.e. coursehero,
ukessays.com, etc., or any site claiming to provide you with the
“answers” to any assignment whether paid or free)
References
16
Not submitting by the due date
Not using the template – Do not create your own template or
change the format
Not including speaker notes – EVERY slide should have
speaker notes
Not adhering to the 15-minute time limit
Not using the textbook
Course-related material is required
Not including all of the required slides (the template provides
all the slides needed)
Frequently Missed Points
17
Grading Timeline
Your submitted assignment will be graded in the order in which
it is received
If submitted on time, expect your grade and feedback no later
than 7 days after the assignment due date
Late submissions are graded after all on-time assignments have
been graded
It is not necessary to send an email asking when your
assignment will be graded.
All submitted assignments are graded
It is not necessary to send an email telling us that you submitted
your assignment.
These emails have no baring on when your submission is graded
18
Congratulations on reaching the end of your capstone course.
Your professors wish you the very best in the future.
19
How to Use This Template
Each slide needed in your submission is provided in this
template.
Do not add slides
Do not delete slides (except the “How to Use This Template”
slide)
Replace the “blue” font on each slide with your presentation
content
Change all font to black
Use bullet points on the slides
Do not type every word you plan to say on the slide
Enter the text/transcript of your talk in the speaker notes section
The speaker notes section is the gray area below each slide
Do not enter your speaker notes in comment boxes
Do not include audio or video clips
Delete this slide before submitting your assignment
Delete this slide before submitting your assignment
Notes: This is the speaker notes section of the PowerPoint
presentation.
Do Not type every word you plan to say on the slide.
Everything you would say if you were giving a live presentation
should be provided in text form in the speaker notes section of
each slide.
1
BUS499 Capstone
Assignment 4
Insert Student’s Name Here
Insert what you would said to introduce yourself to your
executive audience and tell them what you are going to cover in
your presentation
2
SWOT Analysis of Company NameStrengths
Insert a bullet or two describing strengths of the
firmWeaknesses
Insert a bullet or two describing weaknesses of the
firmOpportunities
Insert a bullet or two describing opportunities available to the
firmThreats
Insert a bullet or two describing threats to the firm
Insert exactly what you would say to your executive audience to
describe each bullet point on this slide
3
SWOT Analysis Strategy
Strengths and Opportunities
Insert a bullet describing the strategy to capitalize on strengths
and opportunities
Insert another bullet describing the strategy to capitalize on
strengths and opportunities
Insert exactly what you would say to your executive audience to
describe each bullet point on this slide
You should thoroughly outline a strategy for the company to
capitalize on its strengths and opportunities.
4
SWOT Analysis Strategy
Weaknesses and Threats
Insert a bullet describing the strategy to minimize weaknesses
and threats
Insert another bullet describing the strategy to minimize
weaknesses and threats
Insert exactly what you would say to your executive audience to
describe each bullet point on this slide
You should thoroughly outline a strategy for the company to
minimize its weaknesses and threats.
5
Competitiveness Strategy
Competitiveness
1st bullet point of levels and types of strategies to maximize
competitiveness
2nd bullet point of levels and types of strategies to maximize
competitiveness
Insert exactly what you would say to your executive audience to
describe each bullet point on this slide
You should thoroughly discuss the various levels and types of
strategies the firm may use to maximize its competitiveness.
6
Profitability Strategy
Profitability
1st bullet point of levels and types of strategies to maximize
profitability
2nd bullet point of levels and types of strategies to maximize
profitability
Insert exactly what you would say to your executive audience to
describe each bullet point on this slide
You should thoroughly discuss the various levels and types of
strategies the firm may use to maximize its profitability.
7
Communications Plan
Competitiveness Strategies
1st bullet point on the plan to communicate the competitiveness
strategies to stakeholders
2nd bullet point on the plan to communicate the competitiveness
strategies to stakeholders
Insert exactly what you would say to your executive audience to
describe each bullet point on this slide
You should thoroughly outline a communications plan the
company could use to make the strategies you recommended on
the previous slide known to all stakeholders.
8
Communications Plan
Profitability Strategies
1st bullet point on the plan to communicate the profitability
strategies to stakeholders
2nd bullet point on the plan to communicate the profitability
strategies to stakeholders
Insert exactly what you would say to your executive audience to
describe each bullet point on this slide
You should thoroughly outline a communications plan the
company could use to make the strategies you recommended
known to all stakeholders.
9
Corporate Social Responsibility
Responsible (ethical) corporate citizen
1st bullet point on the assessment of efforts by the corporation
to be a responsible (ethical) corporate citizen – specific
example
2nd bullet point on the assessment of efforts by the corporation
to be a responsible (ethical) corporate citizen – specific
example
Impact of efforts on company’s bottom line
1st bullet point on the impact the efforts have on the company’s
bottom line – specific example
2nd bullet point on the impact the efforts have on the
company’s bottom line – specific example
Insert exactly what you would say to your executive audience to
describe each bullet point on this slide
You should thoroughly assess efforts by this corporation to be a
responsible (ethical) corporate citizen and thoroughly determine
the impact these efforts (or lack thereof) have on the company's
bottom line. Provide specific examples to support your
response.
10
References
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2013). Strategic
management: Concepts and cases: Competiveness and
globalization (10th ed.). Mason, OH: South-Western Cengage
Learning.
Insert second source
Insert third source
Insert any additional sources
You should use at least three (3) quality references, one of
which should be the course textbook. Wikipedia and similar
websites do not quality as academic resources.
11

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WEEK 8 ASSIGNMENT 3 1WEEK 8 ASSIGNMENT 3 9Week 8 Assignment 3.docx

  • 1. WEEK 8 ASSIGNMENT 3 1 WEEK 8 ASSIGNMENT 3 9Week 8 Assignment 3 Student’s Full Name BUS499 Business Administration Capstone Professor’s Name Date Week 8 Assignment 3 Coca-cola being a leading organization in the beverage industry contributes largely to the sales of soft drinks globally. With today’s stiff competition, organizations need strategies to gain competitive advantage. This paper will analyze Coca-Cola in regards to its business-level strategies, corporate-level strategies, competitive environment, and market cycles. Business-Level Strategies A business-level strategy is concerned with the position of organizations in a given industry while considering factors comparison to the competition (Schermerhorn & Bachrach, 2010). Coca-Cola's business-level strategy is a differentiation strategy. This strategy is based on offering product that is unique hence an organization ends up acquiring a greater market share and defending the higher pricing of products. Therefore, this strategy differentiates an organization from its competitors. Coca-Cola uses a differentiation strategy for it to remain unique. With the high competition that it is facing, this strategy separates Coca-Cola from its competitors. With this strategy, Coca-Cola has been able to develop products that are unique and valued by its customers. For instance, most of the consumers opted for healthy drinks as compared to flavored drinks and this had a negative impact on Coca-Cola. The taste and preferences of customers keep on changing and hence an organization has to develop ways that will help it remain relevant in the market. Coca-Cola, therefore, developed Coca- Cola Zero Sugar which was branded and marketed as a healthy
  • 2. drink but a version of the original sugar-sweetened. The production of this product was for it to remain relevant and continue to be successful even with the transition of consumer’s tastes and preferences. This indicates that Coca-Cola has a unique capacity that is used for customization of its products and services to ensure that the wants and the needs of the target market are met. For instance, Coca-Cola provides Diet Coke and vitamin to the old consumers who are health conscious. It also meets the needs and expectations of its young customers through the provision of cherry and vanilla coke. Coca-Cola management invests a lot of time and money in research and development. The main aim is to acquire an understanding of the different market segments about customer’s age, income, and lifestyle. This information is then used in marketing for the products right and achieving the right development. Coca-Cola packaging has remained unique as compared to its competitors and hence it has been able to remain adaptable in different market sections (Schermerhorn & Bachrach, 2010). With its functional packaging, it has been able to make its products appear different in the form of its sizes and forms. Coca-Cola has achieved the production of cans and bottles based on different sizes and shapes and hence this has eased the operations of the vending machine. It also uses materials that are recyclable hence promoting environmental sustainability. Coca-Cola has also embraced image differentiation. Its logo is essential in establishing the brand. The main core competency of Coca-Cola is brand building. This has been concerning its differentiation strategy. This is evident from its logo which can be easily differentiated by its competitors and consumers. Coca-Cola has embraced image differentiation and this has been achieved by the logo. The logo is important for every organization and with this; Coca-Cola has been able to establish its brand name. Its brand and logo are well recognizable by the consumers and hence makes it comfortable for consumers to purchase Coca-Cola products. Coca-Cola's motto is sharing happiness. This indicates that the
  • 3. strategy is not only aimed at selling its products but to also share a good relationship and communication with its consumers. Every aspect of differentiation is related to brand building. For instance, Coca-Cola has made its bottle in a manner that will save the design and remain relevant in the market. The bottle has proved to have an easy-grasp handle and recognizable by the consumers. Corporate-Level Strategies A corporate-level strategy is involved in decision making that affects the organization as a whole. The strategy tends to impact the products, human resources, management, and finances of an organization (Schermerhorn & Bachrach, 2017). The products produced by Coca-Cola are limited to non-alcoholic beverages. This is different from its main competitor, PepsiCo, who produces soft drinks as well as a snack food (Schermerhorn & Bachrach, 2010). Coca-Cola’s main corporate-level strategy focuses on vertical integration through acquiring bottle companies and horizontal diversification which focuses on the product range through the development of new products. Vertical integration is based on the fact that the supply chain of an organization is owned by that organization. It can also be used in describing the management styles which incorporated the large portion of the supply chain into the corporation. Coca- Cola remains to be the largest bottler. In 2010 and 2011, it strategically advanced its operations through partnerships. For instance, Coca-Cola acquired Coca-Cola Enterprises (CCE) which was a North American business. With this, Coca-Cola was able to acquire more than 90% of the North American market. For instance, Coca-Cola produces juice drinks, and to develop these drinks, it had to purchase the minute maid company whose main activities were the production of juice products. The purchasing was done in 1960. However, by 1987, Coca-Cola had introduced a new line of minute maid soft drinks in the US. Coca-Cola also purchased a 40% stake of the Honest Tea Inc at $43 million. The purchasing of the stake from this company was aimed towards acquiring more resources for its business (Schermerhorn & Bachrach, 2017).
  • 4. With the vertical integration utilized by Coca-Cola, it has been able to increase its operational effectiveness and efficiency through integration of the manufacturing and distribution capabilities into one company. The changes and partnerships that Coca-Cola has made have strengthened its commitment to the provision of sustainability and the provision of opportunity for increased momentum. Initially, Coca-Cola limited its activities in the manufacturing of extracts and marketing of the final product. It, however, sold the extracts to local bottlers who manufactured the products. With the increased product line in Coca-Cola and high transaction costs with the independent bottlers, Coca-Cola opted for forward integration processes. The main aim of this involvement in this process was to reduce the costs and gain more control over its distribution and production processes. Coca-Cola has dedicated much time and resources on brand building. It developed a new mission which was to refresh the world and inspire moments and happiness. This was to be done through the creation of value and making a difference. Therefore, the mission was targeted on the beverages and the strategy management changes. Coca-Cola is committed towards the provision of value and refreshment to its stakeholders and hence this resulted in the nurturing and protection of its brands. The key strategic objectives of Coca-Cola include; strengthening alliances, acquisitions, and eradicating weakening purchasing power among others (Schermerhorn & Bachrach, 2017). To meet these objectives, Coca-Cola acquired other companies. It still invests in the traditional popularity of its brands. For instance, Coca-Cola developed a “three cola strategy” whose main aim was to focus on Coca-Cola, Diet Coke, and Coca-Cola zero brands. Coca-Cola, therefore, concentrates on a single business since diversifying into a new market is risky. This hence helps minimize risks through diversification of the opportunities within its existing capabilities and resources. To portray its corporate growth strategies, Coca-Cola focuses on its products
  • 5. and the potential products and markets that it may have in the future. Coca-Cola considers; expanding product lines within its existing product range, offer new products in the existing brand, and increasing market share and developing new products. Competitive Environment A competitive environment is an external system in which an organization competes and functions. The most significant competitor of Coca-Cola is Pepsi. The competition between Coca-Cola and Pepsi has affected the profits in the beverage industry. In the 1960s and ’70s, they both had a different differentiation and advertising strategy. For instance, in 1974, Pepsi developed a Pepsi Challenge where Pepsi hosted blind taste tests to differentiate itself from its main competitor at the time, Coca-Cola. In the 1990s, Coca-Cola and Pepsi adopted low priced strategies in the supermarket channel. The main aim was to compete with the store brands. However, this has a negative impact on both Coca-Cola and Pepsi. Between the two, Coca-Cola has proved to be a dominating organization in the international market as compared to Pepsi. The main strategy that led to this success is through entering markets early while Pepsi entered new markets last (Schermerhorn & Bachrach, 2010). However, Pepsi is still competing aggressively in emerging economies. Coca-Cola and Pepsi have been able to sustain their profits in the industry due to several reasons. The first reason is that they have operated in the beverage industry for long and hence have accumulated brand equity which has highly contributed to their sustainability. They both use the strategy of brand equity in diversifying its business by leveraging their brand. The second reason is that the industry for a long time had no new threats from new competitions. The third reasons are due to globalization. Due to globalization, individuals have raised from the emerging economies to the economic ladder. This has provided a better opportunity for both the organization. The fourth reason is the huge potential for growth presented to both companies. This is due to the per capita consumption in the
  • 6. emerging economies which has proved to be relatively small as compared to the US (Hitt, Ireland & Hoskisson, 2010). The last reason is due to the opportunity that Coca-Cola and Pepsi can both diversify into the non-carbonated drinks. This can be a solution to the reduced demand in the carbonated drinks. For the business-level strategy, Coca-Cola uses a differentiation strategy that has helped in remaining unique in the market. On the other hand, Pepsi uses low-cost differentiation. It achieves this strategy through the use of economies of scale. This is done through production in mass. With this strategy, Pepsi has been able to offer its products at a low price as compared to Coca- Cola to stimulate demand and increase its market share. For the corporate-level strategy, Coca-Cola has been developing new products whenever it enters a new market. On the other hand, the corporate-level strategy used by Pepsi is the use of mergers and acquisitions (Hitt, Ireland & Hoskisson, 2010). The main aim of this strategy is to expand into the international market. It also seeks to gain access to competencies and infrastructure. With this, Pepsi has been able to limit its direct costs for it to achieve organic growth. Coca-Cola, as compared to Pepsi, has a high chance of remaining successful in the long-term.Market Cycles The slow cycle market is a market where resources are secured and the monopoly is maintained. On the other hand, a fast cycle market is where the competitive advantage of an organization is not protected from imitation, and imitation may happen quickly. From the business-level and corporate-level strategies of Coca- Cola and Pepsi discussed above, both companies have different marketing operations. Today’s business environment is showcased by the slow and fast cycle market. A segmentation strategy can be applied to the groups' diverse markets based on performance and characteristics. For both companies, market segmentation may benefit both as they will be able to promote their products in different and specific target markets. This will hence help in ensuring that Coca-Cola fulfills the needs of the market and increase its purchases by the consumers.
  • 7. Sources Hitt, Ireland, &Hoskisson. 2020. Strategic management: Concepts and cases: Competitiveness and globalization (13th ed.). Mason, OH: South-Western Cengage Learning Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2010). Strategic management: Concepts: Competitiveness and globalization. Schermerhorn, J. R., & Bachrach, D. G. (2010). Introduction to management. Schermerhorn Jr, J. R., & Bachrach, D. G. (2017). Exploring management. John Wiley & Sons. Differing Experiences of Americans from the Colonial Era through the Civil War In the past, many Americans went through challenging times as they fought for equal treatment in society. A majority of the minority groups were discriminated against and denied the freedom of expression. Long before the civil war, the rights of some groups, such as the African American slaves and women, were dismissed. In many instances, the groups experienced severe suffering as a result of unequal treatment. However, there have been many changes in modern societies as there is more focus and emphasis on the need to respect and honor the rights of Americans, especially the minority groups. In the period between 1492- 1867, there were mixed reactions on whether the feelings of the people based on the availability of opportunities and the freedom to express themselves. Therefore, the analysis will focus on evaluating the differing experiences of Americans based on their independence and respect for human rights from the colonial era through to the civil war. Differing Experiences of Americans from the Colonial Era through the Civil War Between the colonial eras through to the civil war, there were mixed perceptions of the treatment of different groups in society. At the time, there were cases of slavery among the Native Americans living in the United States of America. The
  • 8. communities had established different tribal territories that resulted in insecurity and other issues. In many instances, the Native Americans held the war captives as slaves who would work in their farms. The slave trade took place between different Native Americans who captured and sold the weak people in society as slaves (American History, 2020). There were mixed reactions to the feelings of freedom of expression among the different groups of Native Americans. The groups with power were very ruthless and were responsible for the unfair treatment of the less privileged person in the community. The Native Americans engaged in different activities, such as small scale farming. In an attempt to facilitate the smooth flow of operations in their farms, there were incidences of the small- scale slave trade that sought to secure labor for short durations (American History, 2020). Other Native Americans would engage in different activities, such as gambling. Those who lost in the gambling games would commit themselves to serve as slaves in the short term. In some instances, there were incidences of torturing as the groups engaged in different religious rituals. Some natural calamities, such as severe famine, would force some Native Americans to sell their children in exchange for food (Higginbotham & Meinig, 1988). The children were sold temporarily to serve as slaves in the buyer's farms. At the time, the slaves from the Native American groups were not subjected to severe treatment. In most cases, the slaves would be integrated into the communities slowly over time. In some instances, the captured people would be assimilated into the communities and allowed to establish their own families within the tribes. Therefore, there was regard for the rights and freedoms of the Native American slaves. In the history of the United States, from the pre-colonial era towards the civil war, there was a slave trade that included many African Americans. By the 1640s, the practices of enslaving African Americans for life had been established throughout the country; this resulted in problems for the immigrants who were brought in as slaves (American History,
  • 9. 2020). In many instances, African Americans were enslaved for life. There was the permanent enslavement of the children of the slaves, and within no time, the practices of the slave trade received legal recognition in Virginia. The increased importation of different products, such as tobacco by English men, increased the demand for the slaves. Following the legalization of slavery in Georgia, 1750, there was the importation of slaves directly from Africa. There was the establishment of a system of Black bondage. The slaves from the African origin were mistreated and had to persevere through immense suffering. Even though a few Native Americans were taken in as slaves, a majority of the African Americans were considered as prime bondsmen. In many instances, it was very challenging for the Africans to escape from bondage, as it was easy to identify them based on their skin color. For the Europeans and the Native Americans, it was easy to escape from slavery, as they would blend easily with other groups in society (New Jersey State Library, 2020). In most cases, the Indians were familiar with the terrains of the land; this made it easier for them to escape from slavery. Besides, there were fears that the enslavement of the Indians would result in increased warfare, and this would disrupt the lucrative slave trade business. Therefore, the Africans were exposed to severe treatments in comparison to other groups, such as Native Americans. During the colonial era, a majority of African Americans were opposed to slavery and adopted different approaches to resist their bondage. The freedoms and rights of the African Americana were violated, and they never had the chance to lead ordinary lives. In most cases, the Black Americans were denied different opportunities, such as the ability to own property in various areas throughout the country (Jordan & Wright, 1992). In their efforts to protest against the injustices of slavery, the African American slaves would stage demonstrations against their masters. In some instances, the slaves would kill their owners and destroy the crops and animals within the firms. In
  • 10. some cases, some of the slaves would succeed in running away from slavery and would be able to lead normal lives. Following the escape, it was very challenging for the Black Americans to survive in the community as they were always looked down upon (Roper, 2006). Some of the runaways from different regions, such as Carolina and Georgia, came together to establish maroon communities. In many instances, the maroon communities would raid the plantations in search of food. There were incidences of revolt, where the slaves would come together and establish rebellions against their masters. For instance, in 1739, there was a significant rebellion that resulted in the deaths of fifty slaves and twenty-five Whites. Later there were attempts made to control the behaviors of the slaves in the community. Black codes were developed to reduce the possibilities of uprisings and rebellion from the slaves. The laws were against the rights of the people. In many instances, there was an increase in unfair treatment against black communities in society (Jordan & Wright, 1992). Few opportunities were availed for the slaves, as they spent a considerable chunk of their time in the plantations working for their masters. Despite the increased freedom for the Whites in the community, the African Americans felt oppressed. There was a denial of freedom of movement for the slaves following the establishment of the black codes. In most cases, the slaves were required to obtain written permission from their masters in instances where they needed to travel. The slaves were prohibited from gathering in groups in the absence of their masters. There was severe punishment s for those who went against the black codes. In most cases, slaves found guilty of petty offenses were hanged. Towards the end of the colonial period, the population of the blacks had rapidly increased throughout the country. At the time, a majority of the African Americans had come into the country as slaves, and their numbers had multiplied. The Blacks consisted of approximately 20 percent of the American population toward the end of the colonial era (Roper, 2006). A
  • 11. majority of the blacks in the country were native-born, and this resulted in the formation of African Americans. There were changes in different groups throughout the country, which resulted in the creation of new cultural groups. The African Americans managed to retains some aspects of their cultures, such as music, religion, and different types of dances. The slaves also managed to learn different customs and manners of their land of enslavement. Many African Americans learned how to communicate in English and other languages, such as Dutch. The changes in cultural aspects also influenced the Whites. The blacks become empowered over time and managed to establish different institutions, such as churches that were non- African in nature. A majority of the blacks were converted into Christianity (New Jersey State Library, 2020). At the time, African Americans started experiencing an increase in their freedoms and the opportunities to engage in different activities in the community. The African Americans secured access to formal education, which was instrumental in their movement towards independence. During the pre-colonial period, the roles executed by the women were defined by their cultures. In most cases, the women never had any rights unless they were either married or had a male guardian. The women, especially those coming from the African American families, were forced to undertake difficult tasks, and in most cases, their efforts were never recognized. The African American women who had arrived in the country as slaves suffered from discrimination based on their race. The women also suffered from sexism from men. In the colonial era, the young girls would be forced to start working early by engaging in different tasks, such as fetching water. The women at the time were considered to be inferior (Higginbotham & Meinig, 1988). In many instances, the women suffered in the hands of their husbands who would commit acts of violence. There was a disregard for women's rights in society, especially for the Black Americans who had arrived in the country as slaves. However, the treatment of women in the community improved, and they
  • 12. were provided with more opportunities in society. Conclusion Through the analysis, the study has developed a concrete understanding of America's history during the pre-colonial era through the civil war. The study has examined the stories of ever-increasing freedoms and opportunities for different groups, such as the Native Americans, the African Americans, and the women from the slave communities. Based on the study, it is clear there was an increase in opportunities and freedoms for different groups over the pre-colonial era. References American History. (2020). Native Americans in the Colonial Period. American-history.net. Retrieved 30 May 2020, from https://american-history.net/colonial-period-2/native-americans- olonial-period/. Higginbotham, D., & Meinig, D. (1988). The Shaping of America: A Geographical Perspective on 500 Years of History. I. Atlantic America, 1492-1800. Journal Of Interdisciplinary History, 19(1), 137. https://doi.org/10.2307/204246 Jordan, W., & Wright, D. (1992). African Americans in the Colonial Era: From African Origins through the American Revolution. Ethnohistory, 39(1), 90. https://doi.org/10.2307/482579 New Jersey State Library. (2020). Unit 4 Blacks in the Revolutionary Era, 1776-1789 | New Jersey State Library. New Jersey State Library. Retrieved 30 May 2020, from https://www.njstatelib.org/research_library/new_jersey_resourc es/highlights/african_american_history_curriculum/unit_4_revol utionary_era_blacks/. Roper, L. (2006). Betty Wood, Slavery in Colonial America, 1619–1776. The African American History Series. Lanham, MD: Rowman and Littlefield2005. xi + 131 pp. ISBN: 0-7425- 4418-4 (hbk.); 0-7425-4419-2 (pbk.). Itinerario, 30(2), 210-212. https://doi.org/10.1017/s0165115300014376 running head: week 6 assignment 2 1
  • 13. week 6 assignment 2 9Week 6 Assignment 2 Student’s Full Name BUS499 Business Administration Capstone Professor’s Name Date Week 6 Assignment 2 Businesses operate in a dynamic environment that impacts business directly on their operations and whether the objectives can be achieved. This paper will analyze Coca-Cola in regards to its general environment, forces of competition, how it can improve its ability to address the forces, eternal threats, and its greatest strengths and weaknesses and strategy that it can use to take maximum advantage of its strength and reduce its weakness. General Environment The two segments that I would rank the highest are the political segment and social segment. Although Coca Cola stands to be a giant in the production of beverages, changes in the general environment may impact it. Coca Cola undertakes its activities globally and hence it is subjected to pressure. The world market is highly globalized and hence they are affected by certain factors. Coca Cola profits and revenue can be impacted by any change in the global business environment. Political segment Laws and regulations from the government on food products may impact Coca Cola directly. For instance, Coca Cola operates in the US and hence is impacted and should follow the Food and Drug regulations. Laws are different from country to country. Given the global nature of Coca Cola, it must conform to all the relevant laws in countries that it operates in. Coca Cola is also required to adhere to all the quality standards as it applies to a country that it operates in. Additionally, it is required to conform to common accounting and business regulations. Tax laws also apply differently in countries. To do business effectively in a given market, Coca Cola has to follow all the relevant laws. However, a change in
  • 14. these laws may impact the revenue and profit of Coca Cola. Additionally, when tax rates are prone to any increase or decrease, it may impact the profits. Further, when a political situation changes such as political uncertainties, this may impact Coca Cola negatively. Coca Cola has undergone through several lawsuits and remains a target due to the overconsumption or over usage of water. Coca Cola highly relies on water, which is a scarce resource, for production. For instance, it has received several protests in India. In Kerala state India, a case was filed against Coca Cola as its high consumption had led to an increase of water shortage. Villagers from the stated that they had a shortage of water near the Coca Cola plants due to the high consumption (Doshi, 2017). Coca Cola has also received lawsuits relating to the use of ingredients that are harmful for consumption and some lawsuits related to the quality standards. It was alleged that Coca Cola was using pesticides in its products. These issues negatively affect their brand image and revenue. Social segment Consumer needs, tastes and wants to keep on changing and hence an organization must keep up with the changes. Most consumers have transited from flavored drinks to healthy drinks. Such trends impact Coca Cola as it leads to reduced popularity of its products. This indicates the changes in the taste and preference of the consumers affect the profits of Coca Cola. Its products are of different flavors and hence that has gained popularity over the years. However, with the transition to healthier drinks, Coca Cola will be required to focus and invest more in the efforts of marketing. Media has also played a vital role in changing the perception of the consumer from the consumption of soda drinks due to its calorie count. Obesity has been an issue globally and there are efforts made for people to change their choice of food products. This has led to a global decline in the consumption of junk food and soda beverages. Coca Cola can hence receive declined sales as most people are adopting lifestyles that are healthier and shifting from products
  • 15. such as soda which can add weight. Due to the changes in taste and preferences, Coca Cola introduced products that have a low calorie count. This was an effort to adapt to the changes. Coca Cola is also affected by other social trends such as a change in attitudes towards brands. Culture also plays a vital role in international trade as it impacts businesses. However, it can be used as a marketing tool. In developing countries, Coca Cola has to factor in culture as it is highly respected. Therefore, it must adopt a marketing strategy that incorporates local markets and their culture. Five Forces of Competition Five forces of competition is a tool that can be used by business in analyzing the critical forces that affect competition in an industry. The five forces present an evaluation of every part of the market and industry. The forces can be analyzed and be used as strategies to increase the profitability of the business. The two forces of competition chosen are; bargaining power of suppliers and the threat of new entrants. Bargaining power of suppliers Coca Cola’s bargaining power of suppliers is weak. This is attributed to the fact that it has a high number of suppliers and it has low switching costs. This indicates that Coca Cola can easily switch from a supplier to another but a supplier cannot switch easily. Suppliers can lose easily as compared to the organization. The products that may be supplied to Coca Cola include sugar and flavor among other ingredients. This indicates that suppliers have limited control over price and hence cannot change the price structure. The suppliers are also required to observe the guiding principles such as the Agriculture Guiding principles. Such a principle suggests that suppliers have a lower bargaining power hence giving organizations a higher influence on pricing and contracts. The threat of new entrants Coca Cola has a low entry to barriers hence leads to the low cost of production and marketing expenses. The market entry is easy as there are small scale companies that entering
  • 16. this industry. Coca Cola, however, is a global organization whose products are consumed in more than 200 countries and hence the small scale companies and new entrants may have no significant impact on its operations. Coca Cola has a strong market presence and hence it can easily expand and penetrate in new markets. It also has moderate customer loyalty in the industry. Future Improvements The two forces that have been assessed are; bargaining power of suppliers and the threat of new entrants. The bargaining power of suppliers may be addressed in several ways in the near future. To improve its ability to address this force in the near future, Coca Cola needs to develop programs that will ensure that diversity is promoted among suppliers for a valid reason. It should also make efforts in developing strategic partnerships and agreements with its suppliers. This will ensure that the bargaining power of suppliers standardizes the pricing in case of future fluctuations. For the threat of new entrants, Coca Cola should strengthen its market presence. This can be done through penetration into new markets as well as expanding its portfolio. This will help Coca Cola in acquiring a stronger base and will also gain part of the competitor’s market share by gaining the competitor’s customers. It may take some time for a new entrant to build customer loyalty. This is an advantage that Coca Cola has over the new small businesses. Greatest External Threat The greatest external threat that Coca Cola is facing is new and existing competitors. In the past, Coca Cola was suspected to be using pesticides. Most people are opting for healthier options that soda beverages which contain high calories count. There are trends and development of cafes which pose danger to Coca Cola. Other products such as smoothies, healthy tonics, and teas are being supplemented by many consumers and this threatens Coca Cola. People are looking for alternatives that are healthy and for products that have less sugar. Companies such as Starbucks are taking over and hence could affect Coca Cola sales. Governments and media are publicizing for obesity
  • 17. concerns and are promoting the need for a healthier lifestyle. As compared to other external threats, this stands to be the greatest as it impacts the financial performance of Coca Cola. The strategy that would help in combating this threat is for Coca Cola to develop low and zero-calorie drinks. With these products, Coca Cola will be able to compete effectively with companies offering healthier options brands. Coca Cola will see an improvement in its performance report after considering this solution. It should consider other innovation plans which will help stay ahead of the competition. It already has made some efforts such as the provision of water. It should have a continued effort in developing and innovating new health and wellness brands. Greatest Opportunity The greatest opportunity that Coca Cola has lies outside of the U.S. Coca Cola can invest worldwide and mostly in developing markets such as Russia, China, and India among others over the next five years. Coca Cola should put more emphasis on emerging-market growth. It should have more penetration in developing countries. Without penetration, its major competitor Pepsi will gain market share in the developing countries (Craft.co, 2020). Therefore, its opportunity is to develop future investments in an emerging market. Other opportunities that Coca Cola has include the creation of new products among others. However, this opportunity remains the greatest as it will be able to find the niches that are untouched by its competitors and to penetrate in new markets. The strategy that Coca Cola should choose is a market development strategy. This strategy will involve finding new buyers for its existing product. Coca Cola has launched products such as Diet Coke. Coca Cola can find new markets for its products. Strengths and Weaknesses The greatest strength that Coca Cola has is brand image and high brand awareness (Raben, 2019). Coca Cola is known in almost every part of the world and hence has a high degree of popularity. With its global presence, it enjoys the largest market share of around 48% in the industry. In history, Coca Cola’s
  • 18. soft drinks still stand the most-selling drinks. Another greatest strength is extended global reach. According to research, it has a serving of 9 billion per day. It also has the largest brand valuation as its estimated brand value is around $79.96 billion. The greatest weakness of Coca Cola is aggressive competition. Pepsi stands out as its greatest competitor and this impact Coca Cola greatly (Craft.co, 2020). The second weakness is product diversification. Coca Cola has a low product diversification as Pepsi have developed many snacks. The third weakness is health concerns. Carbonated drinks have high calories and hence may pose health issues such as obesity and diabetes. Strategy or Tactic To maximize its strengths, it has to focus on the market and growth strategy. It should focus on developing more opportunities in developing markets. It should do this by leveraging its scale as well as reaching its system to shape and capture value. This strategy is a good choice as Coca Cola will be able to penetrate the emerging markets and countries before its competitor, Pepsi (Craft.co, 2020). The strategy that can fix its weakness is through developing healthier specialty brands. It should also consider expanding its corporate sector, diversifying its products and provision of beverages with less to no calories. This strategy is the best choice as it will be able to compete effectively with other companies in the industry. Resources, Capabilities, and Core Competencies Coca Cola has tangible and intangible assets. Its intangible assets can be directed in increasing market position and dealing with competition. Coca Cola has strong and sustainable financial resources. With its strong financial resources, it invests billions in major markets. For its physical capital, Coca Cola has a strong telecommunication infrastructure and multiple facilities. Its employees are also impacted by their required skills, expertise, and credibility. Coca Cola’s capabilities act as its basis for strategy and primary source of returns. Its capabilities have also led to the creation of a competitive edge.
  • 19. It has enabled the expansion of Coca Cola. This has led to increased sales and increased market share. For its competencies, Coca Cola has a strong brand, distribution system, and human assets. In history, it is the company with a popular and high rate of sales of soft drinks. It has around 400 brands and hence shows how diversified its products are (Porth, 2003). Its employees contribute highly to business model success. Sources Craft.co. (2020). The Coca-Cola Company competitors. Retrieved from, https://craft.co/the-coca-cola- company/competitors Doshi, V. (2017). Indian traders boycott Coca-Cola for ‘straining water resources’. Retrieved from https://www.theguardian.com/world/2017/mar/01/indian- traders-boycott-coca-cola-for-straining-water-resources Porth, S. J. (2003). Strategic management: A cross-functional approach. Prentice Hall. Raben, N. (2019). Coca-Cola’s Timeless Brand Identity. Retrieved from https://ibrandstudio.com/articles/coca-cola- timeless-brand-identity 1 8Week 3 Assignment Student’s Full Name Strayer University BUS499 Business Administration Capstone Professor’s Name Date
  • 20. Week 3 Assignment The success of a business is dependent on various factors that could be either internal or external. Such elements include technology, size and location of the business, economic, social, and political factors, and the composition of stakeholders and the workforce. Therefore, the purpose of this paper is to analyze the Coca-Cola Company in line with globalization, technology, industrial organization model, resource-based model, vision and mission, and stakeholders, and how these components influence its overall success. Globalization Globalization is a process that allows a company to defy boundaries and sell products, skills, ideas, and labor across markets other than their home's. The Coca-Cola Company is known worldwide, with operations in over 200 countries and 84,000 suppliers (Saylor.org, 2013). Most of the company's income comes from the international market, based on the ability of the company to expand to a multimillion-dollar status. Coca-Cola began its globalization journey in the 1900s with the company starting operations in South America by building bottling plants that later grew to Europe, Asia, and Africa (Saylor.org, 2013). This journey has benefited the host countries in many ways; empowering their economies, creating employment, contributing tax, and supply of affordable foods and beverages. The various aspects of globalization involve the impact on political, economic, social, and technological factors of the local country. Politically, the company conforms with the prevailing laws and regulations, and any other business laws of the host countries. Although the company has numerous positive influences on politics, they have occasionally faced lawsuits accusing them of consuming a lot of local water to a magnitude that causes water shortages (Pratap, 2018). Another allegation is
  • 21. that the company uses harmful ingredients in their products that compromise the quality of their foods and beverages. Economically, the corporation ensures the utilization of locally available raw materials that promote agriculture, energy, production, logistics, transportation, distribution, retail, cooling, advertising, and media and packaging (CCI, 2020). For example, the branch in Turkey and Pakistan has seen their economies receive over 3.5 billion dollars, generated over 2.5 billion revenue for farmers and taxes for the government, and employment of over 30,000 people (CCI, 2020). For social development, the company has ensured the fostering of local cultures by creating marketing strategies that capture indigenous activities, producing products that comply with their tastes and preferences, and production of healthy products that reduce lifestyle diseases such as obesity (Pratap, 2018). Technology Technology affects the operations of a company in three different ways; technology diffusion and disruptive technologies, the information age, and increasing knowledge intensity (Hitt, Ireland, & Hoskisson, 2020). For Coca-Cola, most of its operations are dependent on technology from production, packaging, and distribution to sales and marketing. Over the years, the organization has seen an improvement in the transportation of products across markets with faster semi- trucks, cargo ships, jet aircraft, and cost-effective trains (Saylor.org, 2013). Besides, with the advancement of technology, the company has increased access to information that allows suppliers and warehouses to track inventory quantities and documentation that reduces overhead costs. Additionally, computerization and automation of all the company's activities have helped in increasing the speed and volumes in production. Technological advancement has seen the business compete with other companies with ease, and reduced cost of production and delivery, for instance, the introduction of vending machines to aid in distribution. Similarly, the worldwide rise in the use of internet products such as social
  • 22. media has improved the availability of information and advertising for products and reaching a wide range of consumers. Social media may be seen as a disruptive technology by nature as it has changed several conventional approaches and has increased the use of smartphone technology to stamp dominance. The company has been using social media to make contact with the customers and get immediate feedback; the impact has seen taking advertising to the next level by addressing the needs of each specific market. Industrial Organization Model The corporation can attribute its accomplishments to their ability to conduct a thorough market analysis to stay ahead of their competition. Market analysis assists in identifying any internal and external factors that would affect the operations of a business, such as political, economic, social, technological, environmental, and legal considerations. The general environment consists of food and beverage companies that produce almost similar products in the market and show persistent competition for Coca-Cola. These companies are; Pepsi, Tropicana, Britvic, Red Bull, Monster, among others. The industry is majorly oligopoly competition, whereby some fewer sellers control sales in the market, and there are barriers to entry and characterized by prevalent advertising allowing the company to dominate the few available businesses. What makes Coca-Cola excel in the food and beverage industry is due to the following aspects they have been nurturing since its inception. These are; assurance, strategic investment, determined marketing, and public relations, great products or services to sell, excellent customer service, efficient facilities, and paying attention to details (CCI, 2020). Specifically, the use of robust marketing and public relations strategies have ensured that the company stays ahead of their competition. These approaches require employees with excellent marketing skills, customer relations, and dedicated to providing quality services. Mostly, this strategy is implemented by the marketing team, which is one of the crucial components that determine a
  • 23. company's success. In the long-run, the company manages to have a considerable consumer base who has continuous satisfaction and loyalty and, in return, makes high sales that impact performance on capital.Resource-Based Model The resource-based model contributes to understanding the success of The Coca-Cola Company by pointing out the unique features that it possesses. For instance, the corporation has the following as the opportunities and advantages; having well- organized distribution channels, a mighty brand name, being the initial market producers, highly automated and production capacity, and computerized communication and information systems (Tunaiji, 2019). Others are; prioritizing staff training and having qualified staff, indulging in corporate social responsibility activities, holding the patent for Coca-Cola formula that prevents imitation by competitors, and having the highest market share in the sector. Moreover, the company uses brand dependency and the Coca- Cola formula as a strategy to drive its sales and increase revenue. The company has a powerful message that sticks and promotes the brand name by investing in positive qualities, benefits, personal and enterprise values (Tunaiji, 2019). Similarly, it produces products that adapt to consumer needs in terms of production volumes and customer satisfaction. The company achieves this feature by having customized goods and services, marketing strategies, and distribution channels that suit the local markets. These activities allow the business to exploit the opportunities in the market and maximize its resources and capabilities towards achieving above-average profits. Vision The vision of the company is to ensure an excellent workplace for employees to maintain high productivity, bringing high- quality beverages to satisfy different tastes while supporting sustainable communities for future generations and maximum profits for shareholders (Tunaiji, 2019). It is evident from the vision statement that the company's destiny is great achievements; whereby, the center of operation is on the
  • 24. satisfaction of the customer and the employees that improve loyalty and effective productivity, respectively. Furthermore, the vision involves being a responsible corporation by promising to be reliable in supporting the future and producing the desired profits for the shareholders. In line with the vision, the company has taken measures in promoting environmental conservation, providing quality products, maintaining a vast customer base, and making sufficient return on capital (Tunaiji, 2019). Mission The mission statement of the company inspires; · To refresh the world · To inspire moments of optimism and happiness · To create value and make a difference · To satisfy consumers taste in the beverage industry (Tunaiji, 2019). Basing on the above statement, The Coca-Cola company has ensured constants supply of foods and beverages, the satisfaction of customer needs across the world, involved in activities of social responsibility to elevate the lives of the people, and indulged in creative and innovative events to nurture talents and promote confidence. Stakeholders The company has various stakeholders that contribute to the success of the business. The capital market stakeholders include; Berkshire Hathaway, The Vanguard Group, Inc., Capital Research & Management Co., SSgA Funds Management, Inc., BlackRock Fund Advisors, Wellington Management Co. LLP, Capital Research & Management Co., Capital Research & Management Co., Geode Capital Management LLC, and Northern Trust Investments, Inc. (Market Screener, 2020). Each of these companies has committed investment that totals to USD 1,530,264,455 in 2019. The impact of this enormous investment would be the duty of the management to ensure they work tirelessly to ensure each stakeholder has the required return on capital and that the company is making profits. The following are the regions that represent the product market stakeholders; the United States, with over 11 million sales, and
  • 25. Global with over 9 million. Europe, Middle East, and Africa with over 6 million sales, Asia pacific with over 4 million, Latin America with over 4 million, North America 191 million, and Corporate with 94 million (Market Screener, 2020). The contribution of sales by each region shows how endowed the company is and how its marketing strategy is working to ensure the attainment of maximum profits. The organization stakeholders involve the employees and management staff, the CEO, COO, vice president, among others, that provide consistent running of everyday activities. Their impact would be the generation and implementation of new ideas, running daily business activities, marketing, human resource management, and evaluation of set goals. Sources CCI, (2020). Sustainability. CCI. Retrieved 19 April 2020 from, https://www.cci.com.tr/en/sustainability Hitt, Ireland, & Hoskisson. 2020. Strategic management: Concepts and cases: Competitiveness and globalization (13th ed.). Mason, OH: South-Western Cengage Learning Market Screener, (2020). The Coca-Cola company (KO). Superperformnce. Retrieved 19 April 2020 from, https://www.marketscreener.com/THE-COCA-COLA- COMPANY-4819/company/ Pratap, A. (2018). Coca-Cola pest analysis. Notesmatic.com. Retrieved 19 April 2020 from, https://notesmatic.com/2016/08/coca-cola-pest-analysis/ Saylor.org, (2013). Globalization and the Coca-Cola Company. Retrieved 19 April 2020 from, https://resources.saylor.org/wwwresources/archived/site/wp- content/uploads/2013/02/BUS208-2.5.6-Globalization-and-The- Coca-Cola-Company-FINAL.pdf Tunaiji, N. (2019). Coca cola strategy project. Johnson & Johnson. Retrieved 19 April 2020 from,https://www.researchgate.net/publication/334746764_Coca _Cola_Strategy_Project
  • 26. 1 Week 3 Assignment Student’s Full Name Strayer University BUS499 Business Administration Capstone Professor’s Name Date 1 Week 3 Assignment Student’s Full Name Strayer University BUS499 Business Administration Capstone Professor’s Name Date
  • 27. How To Earn Full Credit on Assignment 4 Switch to Slide Show and click the to watch the video on each slide 1 Log into the Blackboard course Navigate to the Course Info section Click the linked file titled: “BUS499 Assignment 4 Template 2020.docx” Open the downloaded file Click “Enable Editing” Save the file to your computer Download the Template
  • 28. 2 Review the Instructions Navigate to Week 10 in Blackboard Read the Capstone section Navigate to the Course Info page in Blackboard “Download the Course Guide” Review the Scoring Guide in the Course Guide Open the previously saved BUS499 Assignment 4 Template 2020 template Read the entire template Be sure to also read all announcements and email 3 Complete the To-Do List in weeks 1 - 10 Review Chapters 1 - 13 Study Course Concepts
  • 29. 4 You will use the same company you researched for assignments 1, 2, and 3 The Overview section of the assignment instructions include tips on choosing a public corporation Papers on non-publicly-traded corporations earn a score of zero Company to Research 5 Template Instructions Each slide needed in your submission is provided in this template. Do not add slides Do not delete slides (except the “How to Use This Template” slide) Replace the “blue” font on each slide with your presentation content Change all font to black Use bullet points on the slides Do not type every word you plan to say on the slide Enter the text/transcript of your talk in the speaker notes section
  • 30. The speaker notes section is the gray area below each slide Do not enter your speaker notes in comment boxes Do not include audio or video clips 6 Title Slide The first slide of your submission should be the Title slide Replace the text that reads “Insert Student Name Here” with your name Replace the text that reads “Professor’s Name” with your professor Highlight your name then change the font color to black Use the Speaker Notes section to transcribe exactly what you would say as you introduce your presentation Select “Save” 7 SWOT Analysis Include the name of the company you researched
  • 31. Use the pre-formatted table in the slide to describe one or two: Strengths Weaknesses Opportunities Threats Transcribe your presentation in the speaker notes section. Remember this is a 15-minute presentation 8 SWOT Analysis Strategy Strengths and Opportunities Identify specific strategies needed to address the firms strengths and opportunities Insert a bullet describing the strategy to capitalize on strengths and opportunities Insert another bullet describing the strategy to capitalize on strengths and opportunities Use the Speaker Notes section to transcribe exactly what you would say as you discuss the slide content 9
  • 32. SWOT Analysis Strategy Weaknesses and Threats Identify specific strategies needed to address the firms strengths and opportunities Insert a bullet describing the strategy to minimize weaknesses and threats Insert another bullet describing the strategy to minimize weaknesses and threats Use the Speaker Notes section to transcribe exactly what you would say as you discuss the slide content 10 Competitiveness Strategy Identify specific levels and strategies needed to maximize competitiveness Remember that the levels studied in this class are business-level and corporate level 1st bullet point: Clearly state in the bullet that you are discussing the “business-level strategy” and clearly state which business-level strategy discussed in the course you have selected 2nd bullet point: Clearly state in the bullet that you are discussing the “corporate-level strategy” and clearly state which corporate-level strategy discussed in the course you have selected In each bullet include a few words describing the key points regarding why the selected strategy is appropriate for your firm
  • 33. 11 Profitability Strategy Identify specific levels and strategies needed to maximize profitability Remember that the levels studied in this class are business-level and corporate level 1st bullet point: Clearly state in the bullet that you are discussing the “business-level strategy” and clearly state which business-level strategy discussed in the course you have selected 2nd bullet point: Clearly state in the bullet that you are discussing the “corporate-level strategy” and clearly state which corporate-level strategy discussed in the course you have selected In each bullet include a few words describing the key points regarding why the selected strategy is appropriate for your firm 12 Communications Plan Competitiveness
  • 34. Include a bullet point on your plan to communicate the competitiveness strategies to stakeholders Include a second bullet point on your plan to communicate the competitiveness strategies to stakeholders Hint: don’t overthink this one. A communication plan is simply how you are going to inform your stakeholders of your strategies. A plan is a detailed proposal for doing or achieving something 13 Communications Plan Profitability Include a bullet point on your plan to communicate the profitability strategies to stakeholders Include a second bullet point on your plan to communicate the competitiveness strategies to stakeholders Hint: don’t overthink this one. A communication plan is simply how you are going to inform your stakeholders of your strategies. A plan is a detailed proposal for doing or achieving something
  • 35. 14 Corporate Social Responsibility Responsible (ethical) corporate citizen 1st bullet point on the assessment of efforts by the corporation to be a responsible (ethical) corporate citizen – specific example 2nd bullet point on the assessment of efforts by the corporation to be a responsible (ethical) corporate citizen – specific example Impact of efforts on company’s bottom line 1st bullet point on the impact the efforts have on the company’s bottom line – specific example 2nd bullet point on the impact the efforts have on the company’s bottom line – specific example 15 You should use at least three (3) quality references, one of which should be the course textbook. Wikipedia and similar websites do not quality as academic resources. Do not use cheat sites as sources (i.e. coursehero,
  • 36. ukessays.com, etc., or any site claiming to provide you with the “answers” to any assignment whether paid or free) References 16 Not submitting by the due date Not using the template – Do not create your own template or change the format Not including speaker notes – EVERY slide should have speaker notes Not adhering to the 15-minute time limit Not using the textbook Course-related material is required Not including all of the required slides (the template provides all the slides needed) Frequently Missed Points 17 Grading Timeline
  • 37. Your submitted assignment will be graded in the order in which it is received If submitted on time, expect your grade and feedback no later than 7 days after the assignment due date Late submissions are graded after all on-time assignments have been graded It is not necessary to send an email asking when your assignment will be graded. All submitted assignments are graded It is not necessary to send an email telling us that you submitted your assignment. These emails have no baring on when your submission is graded 18 Congratulations on reaching the end of your capstone course. Your professors wish you the very best in the future. 19
  • 38. How to Use This Template Each slide needed in your submission is provided in this template. Do not add slides Do not delete slides (except the “How to Use This Template” slide) Replace the “blue” font on each slide with your presentation content Change all font to black Use bullet points on the slides Do not type every word you plan to say on the slide Enter the text/transcript of your talk in the speaker notes section The speaker notes section is the gray area below each slide Do not enter your speaker notes in comment boxes Do not include audio or video clips Delete this slide before submitting your assignment Delete this slide before submitting your assignment Notes: This is the speaker notes section of the PowerPoint presentation. Do Not type every word you plan to say on the slide.
  • 39. Everything you would say if you were giving a live presentation should be provided in text form in the speaker notes section of each slide. 1 BUS499 Capstone Assignment 4 Insert Student’s Name Here Insert what you would said to introduce yourself to your executive audience and tell them what you are going to cover in your presentation 2 SWOT Analysis of Company NameStrengths Insert a bullet or two describing strengths of the firmWeaknesses Insert a bullet or two describing weaknesses of the firmOpportunities Insert a bullet or two describing opportunities available to the firmThreats Insert a bullet or two describing threats to the firm
  • 40. Insert exactly what you would say to your executive audience to describe each bullet point on this slide 3 SWOT Analysis Strategy Strengths and Opportunities Insert a bullet describing the strategy to capitalize on strengths and opportunities Insert another bullet describing the strategy to capitalize on strengths and opportunities Insert exactly what you would say to your executive audience to describe each bullet point on this slide You should thoroughly outline a strategy for the company to capitalize on its strengths and opportunities. 4 SWOT Analysis Strategy Weaknesses and Threats Insert a bullet describing the strategy to minimize weaknesses and threats Insert another bullet describing the strategy to minimize
  • 41. weaknesses and threats Insert exactly what you would say to your executive audience to describe each bullet point on this slide You should thoroughly outline a strategy for the company to minimize its weaknesses and threats. 5 Competitiveness Strategy Competitiveness 1st bullet point of levels and types of strategies to maximize competitiveness 2nd bullet point of levels and types of strategies to maximize competitiveness Insert exactly what you would say to your executive audience to describe each bullet point on this slide You should thoroughly discuss the various levels and types of strategies the firm may use to maximize its competitiveness. 6
  • 42. Profitability Strategy Profitability 1st bullet point of levels and types of strategies to maximize profitability 2nd bullet point of levels and types of strategies to maximize profitability Insert exactly what you would say to your executive audience to describe each bullet point on this slide You should thoroughly discuss the various levels and types of strategies the firm may use to maximize its profitability. 7 Communications Plan Competitiveness Strategies 1st bullet point on the plan to communicate the competitiveness strategies to stakeholders 2nd bullet point on the plan to communicate the competitiveness strategies to stakeholders
  • 43. Insert exactly what you would say to your executive audience to describe each bullet point on this slide You should thoroughly outline a communications plan the company could use to make the strategies you recommended on the previous slide known to all stakeholders. 8 Communications Plan Profitability Strategies 1st bullet point on the plan to communicate the profitability strategies to stakeholders 2nd bullet point on the plan to communicate the profitability strategies to stakeholders Insert exactly what you would say to your executive audience to describe each bullet point on this slide You should thoroughly outline a communications plan the company could use to make the strategies you recommended known to all stakeholders. 9 Corporate Social Responsibility Responsible (ethical) corporate citizen 1st bullet point on the assessment of efforts by the corporation to be a responsible (ethical) corporate citizen – specific example 2nd bullet point on the assessment of efforts by the corporation to be a responsible (ethical) corporate citizen – specific
  • 44. example Impact of efforts on company’s bottom line 1st bullet point on the impact the efforts have on the company’s bottom line – specific example 2nd bullet point on the impact the efforts have on the company’s bottom line – specific example Insert exactly what you would say to your executive audience to describe each bullet point on this slide You should thoroughly assess efforts by this corporation to be a responsible (ethical) corporate citizen and thoroughly determine the impact these efforts (or lack thereof) have on the company's bottom line. Provide specific examples to support your response. 10 References Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2013). Strategic management: Concepts and cases: Competiveness and globalization (10th ed.). Mason, OH: South-Western Cengage Learning. Insert second source Insert third source Insert any additional sources
  • 45. You should use at least three (3) quality references, one of which should be the course textbook. Wikipedia and similar websites do not quality as academic resources. 11