...summary: Conducting a PEST and a Porter's five forces analysis on the entire business operations of Coca Cola Company will play part in deriving the various opportunities and threats that the company faces. The scope of the analysis will involve the entire coca cola company. The appropriate NAISCS code for the company is 312111 (DATAMONITOR: The Coca-Cola Company, 2011). Introduction: Coca Cola Company is the leading company in the production of non alcoholic beverages and drinks throughout the globe. The company has its headquarters in Atlanta where it has a total of 139,600 employees. The company serves over 200 countries around the globe (DATAMONITOR: The Coca-Cola Company, 2011). Porter's 5 Forces: Porter's five forces will provide an overview of the supplier power, the existing threats of new entrants, threat of substitutes, buyer power, and the degree of rivalry which results to rivalry being born. Various industrial characteristics available in the beverages industry where Coca cola is located has resulted to the development of rivalry. Low levels of product differentiation are one on the factors which has led to the development of rivalry. Looking at the threat of substitutes which is characterized as low, Coca cola's price elasticity is not affected by the substitute products since the company has a limited number of substitutes when it comes to the products that they purchase. The level of the existing price competition of Coca Cola Company is therefore considered...
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...……………………………………………...………………………..…..2 Introduction 4 Task 01 – Report 6 (LO 1.1) Strategic context 6 (LO2.3) Stakeholder analyzing 9 (LO2.1) Organizational audit 11 Porter’s Value Chain for Coca Cola Company 11 VRIO Framework 14 (LO 2.2) Environmental audit 16 PEST analysis 16 Porter’s five forces analysis 18 SWOT analysis for Coca Cola Company 20 (LO1.3) Different planning techniques 22 Product life cycle 24 BCG Matrix 25 GE Matrix 26 (LO1.2) Criticisms of strategic planning 27 (LO 3.1) Ansoff’s Growth Strategies 29 (LO3.2) Future strategy for the Coca Cola Company 33 (LO4.1) Roles and responsibilities for strategy implementation 34 (LO4.2) Resources requirements for new strategy (Water purification system) 36 (LO4.3) Time scale to monitor the strategy 37 Conclusion 38 References 39 List of Figures IV. IV. Figure Page Number Figure 01 – Stakeholder analyzing 9 Figure 02 - Porter’s Value Chain 11 Figure 03 - VRIO framework 15 Figure 04 - PEST analysis 16 Figure 05 - Porter’s five forces analysis 19 Figure 06 - BCG Matrix 25 Figure 07 - GE Matrix 26 Figure 08 - Ansoff’s Growth Strategies 29 Figure 09 - Ansoff’s Growth Strategies for Coca Cola 32 Figure 10 - Time scale……………………………………………………………………......37 Introduction In this assignment describe the strategies of the Coca-Cola Company. Because of this module can understand important of the business strategies for the organizations. These things are helping us to applying things into...
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...Cola Wars Continue: Coke and Pepsi Case Analysis 1. Soft Drink Industry (SDI) overview The industry considered in this analysis is Soft Drink Industry (SDI). SDI serves customer needs for refreshing and cold non-alcoholic beverages, with main industry sectors being: carbonated drinks, fruit punches, and bottled water sectors. There are three dominant companies in the industry, namely: Coca-Cola, Pepsi, and Schweppes. The soft-drink industry includes the following four major types of participating companies: • Producers of syrups and concentrates, • Bottlers, • Retail channels, and • Suppliers. 2. Porter’s Five Forces Analysis of the Soft Drink Industry (SDI): Soft Drink industry’s Carbonated Drink sector is 66 billion industry in US alone. Soft Drink industry remains very profitable, with pre-tax profits of 30% and 9% for concentrate producers and bottlers respectively. The following five forces analysis will attempt to show factors contributing to the profitability in the industry. Risk of entry by Potential Competitors: It is difficult for new entrants to enter the market because of few factors: First, in order to produce soft drinks a new company would have to have bottling or some other kind of packaging capacities or contracts with bottlers or packagers. To build a new bottling plant is very capital intensive and to enter in a contract with existing bottlers is difficult if not prohibited by the Coca-Cola and Pepsi’s agreements with existing bottlers. Because it...
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...THE COCA-COLA COMPANY Students’ name: Malvina Shahini TABLE OF CONTENTS THE COCA-COLA COMPANY 0 Students’ name: Malvina Shahini 0 EXECUTIVE SUMMARY 2 INTRODUCTION AND COMPANY BACKROUND 2 INDUSTRY 3 GEOGRAPHICAL MARKET 4 PRODUCTS AND SERVICES 4 MARKET SEGMENTATION 5 MISSION, VISION AND VALUES 6 COMPANY'S STAKEHOLDERS 8 PART I: EXTERNAL ANALYSIS 9 PESTLE ANALYSIS 9 PORTER'S 5 FORCES OF COMPETITION MODEL 11 PART II: INTERNAL ANALYSIS 14 VALUE CHAIN MODEL 14 VRIO FRAMEWORK 16 BCG ANALYSIS 17 POSITIONING 17 PART III: COMPANY’S CORPORATE AND BUSINESS STRATEGY 19 PART IV: IDENTYFYING ISSUES AND CHALLENGES FACING THE COMPANY 20 PART V: IDENTIFICATION AND EVALUATION OF THE MAIN STRATEGIC OPTIONS FOR GROWTH 22 ANSOFF MATRIX MODEL 22 PART VI: RECOMMENDATION AND CONCLUSION 24 REFERENCE LIST 24 EXECUTIVE SUMMARY This paper is a strategic analysis of The Coca-Cola Company, a leader in the beverage industry. Coca-Cola, the world’s leading soft drink maker, operates in more than 200 countries and owns or licenses more than 500 brands of non-alcoholic beverages. The company faces challenges in today’s market because of market changes, socio-economic changes and globalization. The purpose of this assignment is to assess the current situation of the Coca-Cola Company and to provide recommendations on strategies that the firm can pursue in the future. In detail, an external analysis of the company is performed to understand the impact of...
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...Business/Financial Analysis Team Project Name Institution Business/Financial Analysis Team Project 1.0 Executive Summary The Company for analysis is the Coca-Cola Company. It operates in the soft drinks industry. This company is known to be among the oldest companies that manufacture non-alcoholic beverages. Among the main competitors of Coca-Cola is Pepsi. Coca-Cola is a multinational that has subsidiaries in almost every corner of the globe. It is a publicly traded company with a current market price for its stock at 46.39 % as at 31st March 2016 which translates to a deviation of 0.41%.An analysis of Coca-Cola Company reveals that Coca-Cola is currently grappling with issues related to its market share, quality of its soft drinks and production processes. These problems have in turn decreased their market share and its competitive advantage. Competitors have taken this as the advantage to increase their sales and revenue. The notable competitors for Coca-Cola Company are Pepsi, Nestle S.A, Dr. Pepper Snapple group inc., and Nestle Waters France. This study undertakes an analysis of Coca-Cola's industry with an aim of finding the root causes of these problems and how Coca-Cola can overcome them. Michael Porter’s five forces model, ratio analysis, analysis of market capitalization, business model, and strategy are some of the main approaches that this study applies in analyzing the Coca-Cola Company. Nevertheless, the Coca-Cola Company remains competitive, and investors...
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...The company has implemented different strategies to protect its unique product as well as the market share from other competing companies such as Samsung. Although the company produces other household product, Nokia mobile is the main product of the company (Worley et al., 2011). Porter’s five forces of Nokia Company. The Nokia Company faces the porter’s five forces of completion in its daily operation. The forces include the entry by other firms, power of the buyer, power of supply, competitive rivalry and substitute goods (Rampersad & Hussain, 2014). 1. Entry by new firms The threat to entry by other firms in the market is quite low as the company has established its strong market share in the mobile phone industry. The forces are low because new companies who wish to venture into the industry have to invest heavily in terms of innovation and marketing (Rampersad & Hussain, 2014). 2. Power of suppliers The threat of power of supply is moderate as the company can acquire the new materials from many equipment suppliers. Therefore, the company can easily negotiate and bargain with the willing mobile phone hardware (Steers et al., 2010). 3. Powers of buyers The company faces a high force of power of buyers because the consumer can decide to buy the product from other companies. The mobile phone industry is very wide, and the consumer are face with a variety of product to choose if they fell that the Nokia products are not the best (Garratt, 2003). 4. Substitute of...
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...Structure 2 2.2 Organizational Culture 5 2.3 Relationship between An Organizational Structure and Culture. 6 3.0 Individual Behavior at Work 7 3.1 Internal Factors. 7 3.2 External Environments 8 4.0 Different Leadership Styles 10 4.1 Compare the Effectiveness of Different Leadership Styles. 10 4.2 Leadership Styles between Haier and Uniqlo Co., Ltd.. 10 5.0 Management Approach 11 5.1 Functions of Management.. 11 5.1.1 A Basic Framework. 11 5.1.2 Framework between Haier and Uniqlo Co., Ltd. 11 5.2 Different Approaches to Management Used.. 12 5.3 Management Though between Haier and Uniqlo Co., Ltd... 13 6.0 Conclusion 14 References 15 Contents 1.0 Introduction 1 2.0 Various Elements of Marketing Process 2 2.1 Definition of Marketing 2 2.2 Company’s Marketing Philosophy 2 2.3 Holistic Marketing-Oriented Philosophy. 4 3.0 Benefits and Costs of a Marketing Orientation 6 3.1 Customer Satisfaction for Coca-Cola 6 3.2 Customer Retention for Coca-Cola 7 4.0 Macro and Micro Environmental Factors 8 4.1 Porter’s Five Forces Analysis. 8 4.2 PEST Analysis 9 5.0 Segmentation Criteria to Be Used for Products in Different Markets 11 5.1 Introduction of New Products 11 5.2 Market Segmentation 11 6.0 A Targeting Strategy for a Selected Product 13 6.1 Definition of Target Market 13 6.2 A Targeting Strategy for Coca-Cola 13 7.0 New Positioning Strategy for...
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...2010-2011 SEMESTER 2 BBA 353 STRATEGIC MANAGEMENT Group Case Study Project The Coca-Cola Company Tsang Hoi Ki Chan Ho Yin Fung Tsun Wai Chan Ka Po Yuen Sze Wing Chan Tai Hoi Yan Yue Kan (200826001H, (200826002H, (200826004H, (200826019H, (200826020H, (200826027H, (200926024E, FNE) FNE) FNE) FNE) FNE) FNE) FNE) Abstract This paper is a strategic analysis of The Coca-Cola Company (Coca-Cola), a leader in the beverage industry. Coca-Cola, the world’s leading soft drink maker, operates in more than 200 countries and owns or licenses more than 500 brands of nonalcoholic beverages. The company faces challenges in today’s market because of market changes, socio-economic changes and globalization. An external analysis of the soft drink industry is performed to understand the impact of environment. An internal analysis of Coca-Cola is performed to understand the internal capabilities. The conclusion of this case study emphasizes that the company needs to reduce its dependence on carbonated beverage and diversify its product portfolio into the noncarbonated sector to remain competitive. 2 Table of Contents Abstract .............................................................................................................................. 2 Section 1: Introduction ................................................................................................... 5 1.1 1.2 1.3 Mission and Objectives ...................................................
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...computers in American. Their famous hardware products include Macintosh computers, the iPod, the iPhone and the iPad. These hardware products lead Apple Inc get success and control all the electronic products market. For example from 2007 the first iPhone was sold to now there are over 51 million iphone was sold which mean it control over 16.1% of the cell phone market. When the iPod began sale it pretty easy to sale over 1million iPads and this just take 28 day. Why the apple company can very easy to get success and how can they hold the market. We can from the Michael Porter's Five Forces Model five parts find out the answer. Michael Porter's Five Forces: 1. The bargaining power of suppliers (who can charge higher prices) 2. The bargaining power of customers (who may demand better quality at a lower price) 3. The threat of new entrants into the industry 4. The threat of substitute products or services 5. The rivalry amongst current competitors in the industry (which can lead to price wars, new product development and special offers) Firstly we need talk about the bargaining power of suppliers, for a company the supplier is a very important part because it decides the price and quality of every stuff. So whether the company can get lots of profit or not, it depends on the bargaining power of suppliers. Such as Apple one of the reason about why it can get lots of profit from the supplier, is that apple’s product hold the market that make the supplier must follow their...
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...The Coca Cola Company: Marketing Strategy Contents Introduction and Summary of the Company ............................................................................................ 3 Environmental Analysis ........................................................................................................................... 3 Political ............................................................................................................................................... 4 Economic............................................................................................................................................. 4 Social................................................................................................................................................... 4 Technological ...................................................................................................................................... 5 Customer analysis – STP analysis ............................................................................................................. 5 Segmentation ...................................................................................................................................... 6 Targeting ............................................................................................................................................. 6 Positioning .............................................................................
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...2010-2011 SEMESTER 2 BBA 353 STRATEGIC MANAGEMENT Group Case Study Project The Coca-Cola Company Tsang Hoi Ki Chan Ho Yin Fung Tsun Wai Chan Ka Po Yuen Sze Wing Chan Tai Hoi Yan Yue Kan (200826001H, (200826002H, (200826004H, (200826019H, (200826020H, (200826027H, (200926024E, FNE) FNE) FNE) FNE) FNE) FNE) FNE) Abstract This paper is a strategic analysis of The Coca-Cola Company (Coca-Cola), a leader in the beverage industry. Coca-Cola, the world’s leading soft drink maker, operates in more than 200 countries and owns or licenses more than 500 brands of nonalcoholic beverages. The company faces challenges in today’s market because of market changes, socio-economic changes and globalization. An external analysis of the soft drink industry is performed to understand the impact of environment. An internal analysis of Coca-Cola is performed to understand the internal capabilities. The conclusion of this case study emphasizes that the company needs to reduce its dependence on carbonated beverage and diversify its product portfolio into the noncarbonated sector to remain competitive. 2 Table of Contents Abstract .............................................................................................................................. 2 Section 1: Introduction ................................................................................................... 5 1.1 1.2 1.3 Mission and Objectives ...................................................
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...This report is based upon the information from the Harvard business case: “Cola Wars Continue: Coke and Pepsi in the Twenty-First Century”. Both Coca Cola Company and PepsiCo are the largest players in the Carbonated Soft Drinks (CSD) industry. The purpose of this report is to gain insight into the possible strategies that can be applied, in order to expand the overall throat share in the future. History revealed that a highly competitive strategy that was utilized in the past by both companies resulted in a ‘Nash Equilibrium’. Because of this, the report is described from the perspective of both Coca-Cola and Pepsi. The scope of this report covers not only on the increase of overall market share, but also finding new opportunities in unrevealed markets. The analysis is also based upon the eight key concept model. In addition the PEST-analysis and the five forces model of Porter is also utilized to gain insight into the ‘macro-environment’ and ‘meso-environment’ 1. Analysis The eight key concepts analysis is applied to identify the key issues with regard to both Coca-Cola and Pepsi. The outcome of the analysis is utilized to establish the new strategy for both companies. The key issues for each concept are described in this paragraph. Direction The mission and vision of the two companies, described in the case, differ on one major issue. The Coca-Cola Company direction limits its market to a product portfolio of beverage brands, whereas PepsiCo does not only focus...
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..................................3 1. Information System: An Overview............................................................3-4 2. Brief history of Coca-Cola.........................................................................4-5 2. Analysis of Internal and External Forces............................................................5 1. The Coca-Cola SWOT Analysis...................................................................5-7 1. Internal Forces.......................................................................................8-9 2. External Forces.....................................................................................9-10 3. Information System Incorporated.....................................................................11 1. Value of Information System......................................................................12 1. Value Chain Analysis...........................................................................12-13 2. Competitive Advantage..............................................................................14 4. CONCLUSION....................................................................................................15 5. REFERENCES......................................................................................................16 ...
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...Coca-Cola Inc. Financial Analysis & Valuation Table of Content Executive Summary and Financial Inputs 2 5 Force Analysis 3 Strategies to Create and Sustain Competitive Advantage 3 Accounting Analysis 5 Ratio Analysis 5 Executive Summary In our analysis of Coca-Cola Inc., we estimate an Enterprise Value of $71.3B and an Equity Value of $60.9B, or a value per common share of $25.16. Given the current share price of $44.28, our recommendation for the stock is a “SELL”. Listed below are our key assumptions for the above valuation as well as the conclusions drawn from the analysis of financial statements that led to these assumptions. Key Estimates and Assumptions: * The estimates for financial inputs for the explicit period 2005 through 2009 are as follows: % | 2005 | 2006 | 2007 | 2008 | 2009 | Sales Growth | 5% | 5% | 5% | 5% | 5% | Cost Of Goods Sold % | 36% | 36% | 36% | 36% | 36% | Selling & Administrative Expenses % | 37% | 37% | 37% | 37% | 37% | NFA/Revenues | 89% | 89% | 89% | 89% | 89% | WCR/Revenues | 0% | 0% | 0% | 0% | 0% | * Percentages applied for the explicit 5-year period are largely in-line with the performance ratios that Coca-Cola experienced during 2003 and 2004. * Over-performance Period: This time period represents a scenario where Coca-Cola will continue to enjoy a competitive advantage, resulting in positive NPV investments through the forecasted horizon. ...
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...Cola Wars Continue: Coke and Pepsi in 2010 Table of Contents 1 Overview 2 General environmental analysis 3 Industry Analysis 3.1 Industry Structure - U.S. soft drink market share of concentrate producers - Suppliers within the carbonated soft drink industry 3.2 Market Structure - U.S. Liquid Consumption Trend (gallons/capita) - U.S. non-alcoholic refreshment beverage volume 2009 - U.S. soft drink market share – soft drink brands 3.3 Marketing Channels 3.4 Porter’s five forces 4 5 4 2 2 2 2 4 Competitive / corporate strategies of Coke and Pepsi 5 SWOT Analysis 6 Questions 6.1 How has the competition between Coke and Pepsi affected the industry’s profit? 6.2 If it has been such a profitable industry, why have so few firms successfully entered this business over the last century? What are the barriers? Why have Coke and been so successful in launching their products? 6.3 Why, historically, has the soft drink industry been so profitable? 6.4 Compare the economics of the concentrate business to that of the bottling business: Why is the profitability so different? 6.5 How can Coke and Pepsi sustain their profits in the wake of flattening demand and the growing popularity of non-CSDs? 7 9 11 Exam Case Study Cola Wars Continue: Coke and Pepsi in 2010 1 Overview (Power Point Page (PPP) 2) For more than a century, Coke and Pepsi compete for market share within the world’s beverage market. The most intense battles were fought over the $74 billion carbonated soft drink (CSD)...
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