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