Strategic objectives of coca cola

Coca-Cola Strategic Analysis Implementation

STR/581

Coca-Cola Strategic Analysis Implementation

1

Executive Summary

Largest Beverage Provider

Almost $2 Billion in sales

Presence in 200 countries

Mission, Vision, and Value Statements

Environmental Scan

Internal and External

SWOT Analysis

The Coca-Cola Company is an almost $2 Billion company that is arguable the world’s largest beverage provider. With presence in over 200 countries Coca-Cola has grown to become a household name since its start in Atlanta, Georgia in 1886. Coca-Cola’s mission “To refresh the world...To inspire moments of optimism and happiness...To create value and make a difference” is achieved in conjunction with its vision that is surrounding six “Ps”. People, Portfolio, Partners, Planet, Profit, and Productivity all working together to be a great place to work, offer drinks consumers want while being conscious of the world and Coca-Cola stakeholders.

In order to be a continually successful company, Coca-Cola understands the need for environmental analysis to include internal and external forces driving the business. Social factors such as the fact that consumers are becoming more health conscious and economic factors such as inflation, recession and unemployment rate should be considered in the environmental scan. The industry environment should also be considered which includes demographics, competitors, and consumer preferences. Internal and external environments can be evaluated with the help of a SWOT analysis.

The SWOT analysis for The Coca-Cola Company reveals that the major strength of the firm is the brand name and the recognizable aspects of it. A weakness as well as an opportunity is the increased awareness of healthy options even with beverages. Another opportunity is that of additional flavors. A threat, as with all companies, is Coca-Cola’s competitors. Keeping ahead of competitors in terms of technology, flavors, and overall customer service will help alleviate the threat of competing firms.

2

Executive Summary Continued

Generic, Grand, Global Strategies

Value Disciplines

Implementation Plan

Risk Management Plan

Generic, grand, and global strategies are recommended in addition to value disciplines. Focus strategies of both cost leadership and differentiation are recommended along with market growth. Each of the three value disciplines of operational excellence, product leadership, and customer intimacy are recommended as there are benefits for each in different areas of the Coca-Cola business. These strategies will support the implementation plan that begins with building upon the already successfully developed business structure of Coca-Cola, and continuing a successful path for the growth of the business.

The same strategies will be applied for organizational change management. Both long term and short term goals will be addressed and a risk management plan put in place. The risk management plan will identify and prioritize risks that include new government regulations and potential major changes to the operations. The Coca-Cola Company will look at expanding its product line globally creating a wider consumer market and consider offering new products in other segments of the market. Patent infringement and poor product performance will also be addressed in the risk management plan.

3

Company Background

Coca-Cola Start

Dr. John S. Pemberton

1886

Atlanta, Georgia

Sold at Jacob’s Pharmacy

Coca-Cola Name

Frank M. Robinson

Advertising

In 1886, Dr. John S. Pemberton, a pharmacist from Atlanta, Georgia created a flavored syrup and took it to his neighborhood pharmacy where it was mixed with a carbonated water. The beverage that came from this mixture was called refreshing and delicious by those who tasted it. Dr. Pemberton’s bookkeeper, Frank M. Robinson, suggested the name Coca-Cola because the two letter “C”s would look well in advertising and the Coca-Cola brand was born. Mr. Robinson was also the man who penned the well-known Coca-Cola script still used today (The Coca-Cola Company, 2012). Coca-Cola was sold for just five cents per glass and averaged only nine servings per day.

4

Company Background Continued

1888

Portions of Company sold

Distribution beyond Atlanta

1894

Moved Beyond Soda Fountains

1899

Purchase of bottling rights

1977

Bottle trademarked

In 1888, Dr. Pemberton sold portions of his business with the majority going to Asa Candler, an aTlanta businessman. Candler began distributing Coca-Cola beyond Atlanta. Coca-Cola was originally sold only in soda fountains and in in 1894, Joseph Biedenharm installed a bottling company in the back of his soda fountain making Coca-Cola “portable”. Fiver years later the bottling rights were purchased from Candler by three businessmen for just $1. It wasn’t until 1977 that the unique Coca-Cola bottle was trademarked ("Coca-Cola Journey", 2017).

5

Current Company Status

World’s largest beverage company

500 brands

3900 beverage choices

1.9 Billion servings daily

Over 200 countries

The Coca-Cola Company is now the world’s largest beverage company with more than 500 brands and almost 3,900 beverage choices. More than 1.9 billion servings of Coca-Cola’s beverages are consumed in over 200 countries each day. According to “Coca-Cola Journey” (2017), “each Coca-Cola product undergoes nearly 450 different tests to ensure that the ingredient and packaging quality meets Company standards (About Us: Coca-Cola Beverages and Products).

6

Mission Statement

Our mission is:

To refresh the world in mind, body and spirit

To inspire moments of optimism and happiness through our brands and actions

To create value and make a difference.

7

Vision Statement

People: Inspiring each other to be the best we can be by providing a great place to work

Portfolio: Offering the world a portfolio of drinks brands that anticipate and satisfy people's desires and needs

Partners: Nurturing a winning network of partners and building mutual loyalty

Planet: Being a responsible global citizen that makes a difference by helping to build and support sustainable communities

Profit: Maximizing long-term return to shareholders, while being mindful of our overall responsibilities

Productivity: Being a highly effective, lean and fast-moving organization.

Coca-Cola’s mission and vision work in cohesion, they both support each other. Both mission and vision addresses customer market; “to inspire moments of optimism and happiness and in its 4vision it’s to; bring the world a portfolio of quality beverage brands that anticipate and satisfy peoples desires and need” (coca -cola.com).

8

Value Statement

Leadership: The courage to shape a better future

Collaboration: Leverage collective genius

Integrity: Be real

Accountability: If it is to be, it's up to me

Passion: Committed in heart and mind

Diversity: As inclusive as our brands

Quality: What we do, we do well

9

Environmental Scan

Monitoring of external and internal environments

Remote environment

Social factors

Economic factors

Industry environment

Demographics

Competitors

Consumers preference

One thing to look at when doing an environment scan is the remote environment. Remote environment as described by Business Dictionary (2016) is the “ecological, political, social, and technical factors or forces that affect a firm’s decision-making abilities and freedom, but are beyond its control or influence.” One such social factor is the fact that consumers are becoming more health conscious.

A second important aspect is the economic factor. Economic factors such as inflation, recession and unemployment rate can impact Coca Cola negatively or positively depending on how low or high the numbers are.

10

Internal Environment

Firm’s Resources

Employees

Management

Corporate Culture

Vision

People, Portfolio, Partners, Planet, Profit, Productivity

Values

Leadership, Collaboration, Integrity, Accountability, Passion, Diversity, Quality

The Coca-Cola Company’s internal environment includes the firm’s resources such as employees, management, and corporate culture including its vision and values. The company’s vision which concentrates on people, portfolio, partners, planet, profit, and productivity guides all aspects of the employees at The Coca-Cola Company. The company’s values which include leadership, collaboration, integrity, accountability, passion, diversity, and quality will allow Coca-Cola to grow in the future. Coca-Cola’s leadership value is based on the courage to shape a better future and the company has recently changed leadership with the intention of continuing down this path.