GROUP PROJECT ON STRATEGIC MANAGEMENT

TOPIC:

Presentation made bysameer omle-47

chinnaiah-33Shankar jadhav-26

pratik parte-50pratik devekar-15

Presentation made bySameer Omles-47chinnaiah-33Shankar jadhav-26pratik parte-50pratik devekar-15

COMPANY OVERVIEW

• A leading manufacturer, distributor and marketer of non-alcoholic beverage concentrates and syrups

• The company owns or licenses more than 500 brands

• It operates in more than 200 countries• The company is headquartered in Atlanta,

Georgia

HISTORY OF COCA COLA

• Coca-Cola was first introduced by John Smyth Pemberton

• He first distributed the product by carrying it in a jug down the street to Jacob’s Pharmacy and customers bought the drink for five cents at the soda fountain

VISION

Our vision serves as the framework for our Road map and guides every aspect of our business by describing what we need to accomplish in order to continue achieving sustainable, quality growth.

• People: Be a great place to work where people are inspired to be the best they can be

• Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people’s desires and needs

• Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value

• Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities

• Profit: Maximize long-term return to share owners while being mindful of our overall responsibilities

• Productivity: Be a highly effective, lean and fast-moving organization

MISSION

• To refresh the world...

• To inspire moments of optimism and happiness...

• To create value and make a difference

VALUES

• Leadership: The courage to shape a better future

• Collaboration: Leverage collective genius

• Integrity: Be real

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

• Passion: Committed in heart and mind

• Diversity: As inclusive as our brands

• Quality: What we do, we do well

OBJECTIVES

• To know the core values, vision and mission

• To understand the internal and external environment in which Coca Cola operates.

• To understand the future prospects of different products

• To decipher whether Coca Cola strikes a balance between its profits and social responsibilities.

• To identify and characterize the different growth strategies used by Coca Cola

• To know about the Coca-Cola Company’s strategies management process

Coca-cola bottles

• 1894 was the first time Coca-Cola was bottled

1894- early 1900s 1905-1916 1915- today today

Product Portfolio of CCI

coca cola17%

thums up36%

limca11%

sprite10%

kinley11%

others15%

Product Portfolio of CCI

Coca-Cola Recognition

• Coca-Cola is recognized by 94% of the world’s population

• Approximately 10,450 Coca-Cola brand drinks are consumed around the world each second of every day

COMPETITORS

Competitors AnalysisCompetitors: PepsiCo, Parle Agro ProductsPepsi gives tough fight with almost similar investment, advertisement, Strategies and ProductsParle resurges with refreshing drinks as Appy Fizz, Fruity, LMNPepsiCo also has a snack product line including Lays, CheetosPepsiCo provide carbonated drinks, Fruit Drinks and Packaged Drinking Water.

Comparison of financial highlights

COMPANY NAME Coca cola Pepsi.co

Profit Margin 33.768046 10.958194

Asset Turnover 0.577 1.071

Return on Assets 19.506218 11.736928

Earning Per Share 5.12 3.97

Strategic planning process

A. Strategy formulation

Framing mission statement

Analysis of internal environment

Analysis of external environment

Set up objectives

Framing alternative strategies

Analysis of strategies

Choice of strategy

Strategic planning process

B . Strategy implementation

Formulations of plans

Identification of activities

Grouping activity

Organizing recourses

Allocate the resources

Strategic planning process

B . Strategy evaluation

Measurement of performance

Comparison of performance

Finding derivation

Analysis derivation

Taking corrective measure

SWOT ANYLASIS

• The best global brand

• World’s largest market share

• Strong marketing & advertising

• Corporate social responsibility

•Aggressive acquisitions•Increase in demand for bottled water•Growth of beverage consumption

•Negative publicity•Low profits in strong areas •Supply is restricted•Brand failures

•Intense competition •Change in customer preferences•Negative health effect

•Water scarcity

STRENGTHS

WEAKNESS

OPPORTUNITIES

THREATS

PESTLE ANALYSIS

POLITICAL ANALYSIS

ECONOMIC ANALYSIS

SOCIO-CULTURAL ANALYSIS

TECHNOLOGY

ANLYSIS

LEGAL ANALYSIS

DEMOGRAPHIC ANALYSIS

BCG MATRIX OF COCA-COLA

Question Mark

STAR

CASH COW

DOG

HIGH LOW

HIGH

LOW

BUSINESS GROWTH RATE

MARKET SAHRE

PLC

TYPES OF STRATEGY FOLLOWED BY COCA COLA

Advertising strategy

Horizontal integration strategy

Forward integration strategy

Intensive strategies

Market penetration

Market development

Product development

TYPES OF STRATEGY FOLLOWED BY COCA COLA

MARKET PENETRATION

Brand development

Coca cola seek to increase market share through its intensive marketing effort which would be through •Increasing no of sales representative•Doing more advertisement•Increasing publicity effort•By reducing price

The brand development strategy of Coca Cola comprised redesigning of its brand development policies and techniques to keep up with the changing mindset of its consumers. Earlier, this brand believed in the following:• Afford ability• Availability• Acceptability

TYPES OF STRATEGY FOLLOWED BY COCA COLA

Market development strategy

Product development strategy

Coca cola follows market development strategy .It involved introducing present product & services of the company into new geographical area .This strategy is suitable for coca cola because coca cola is very successful at what it does

Coca cola company seek to increase sales by improving or modifying present product or services

TYPES OF STRATEGY FOLLOWED BY COCA COLA

Forward integration strategy

Horizontal integration

Coca cola has gaining ownership. And has control over distributer or retailer Company like coca cola produce own and sell own

Yes , coca cola company has control over its competitors Coca cola try to facilitated by mergers , acquisition and friendly take over among competitors which allows for greater economies of scale and enhancing transfer of recourses and competencies

TYPES OF STRATEGY FOLLOWED BY COCA COLA

Corporate level strategy

Advertising strategy

•Coca-Cola has long been committed to a product development strategy.

•This allow Coca-Cola to penetrate existing markets with new products due to their high brand awareness.

•This strategy capitalizes on Coca-Cola’s favorable trademark reputation.

Through this strategy coca cola try to increase sale and relations.

a) The main strategy is always designed to "achieve customer happiness".b) In order to achieve that goal, the company does research and offers

surveys to see what consumers like and dislike about their brand and product.

c) Coca-Cola offers products for all different ages, except for children who have not yet become toddlers.

d) However, there are many products that satisfy both genders, people with diseases such as diabetes, customers who are trying to lose weight, those who live on low income, etc.

e) The Coca-Cola Company offers products and service to "energetic, sportive, tired working people", people who are financially unstable, and simply those who are thirsty .

OTHER STRAREGIES

The strategy of the Coca Cola Company according to its website is to,

“Be the world’s most recognized family brands, not just of soft drinks, but of juice drinks, sports drinks, water and milk,

To maintain a trusted local presence in every community served,

To increase annual marketing budget sustainability launched by many new products,

And to develop a model to help retail customers maximize their sales while the company continues to plan for the next one, five, and ten years in business”.

Is coca cola Market leader ?

60%

35%

5%

coca cola pepsi.co others

Strategy evaluation & control

Strategy can neither be formulated nor adjusted to changing circumstances without process of evaluation

Strategy evaluation is an attempt to look beyond the obvious facts regarding the short term health of business

For evaluation we have made three questions?

1. Are the objective of business appropriate?

2. Are the major policies and plan appropriate?

3. Check that all is set very well as per the plan?

RECOMMENDATIONS

• For the products like diet coke, pulpy orange and kinlelysoda it better to stop manufacturing these products

• Invest profits for future growth and for earning more ofmarket share and profits

• Invest heavily into products like fanta and sprite in orderto push the products to star status.

• For coca-cola -cost management, product differentiationand marketing have become more important as growthslows and market share becomes the key determinant ofprofitability

• The organization has to carefully study externalenvironment moves and accordingly devise strategies togain competitive advantage

• Coca cola has to make every possible move to ensure thatits image remains that of an FMCG giant that would nevercompromise on the quality front

Please enjoy a delicious and refreshing Coca-Cola Classic!

Thank You!