STRATEGIC MANAGEMENT CASE OF COCA COLA

PREPARED AND PRESENTED BY Group-2 Ser "# 2# ,# +# %# /# ID number 2$"$$"$$$%"%" 2$"$$"$$$%$+, 2$"$$"$$$%$/0 2$"$$"$$$%$%3 2$"$$"$$$%$ 2$"$$"$$$%$/6 Name Sa&emur Ra'man S'e'abu)) n -a..an A1am! r 2ab r Maru4 -o..a n B ))ut B .5a. M) A1am! r Sect on B Pro!ram MBA(Fr )a&*

TABLE OF CONTENTS Item Page

1. Executive summary ................................................................................................ 4

2. Ack !"#e$geme t..........................................................................................................%

2. &ist!ry !' C!ca(C!#a.....................................................................................................)

*. Bra $s !' C!ca( C!#a..............................................................................................+

4. I tr!$ucti! ..................................................................................................................11

%. Aim.............................................................................................................................11

). Existi g ,isi! a $ -issi! stateme t . O/0ectives a $ Strategies.......................11

1. A a#ysis !' ,isi! a $ -issi! Stateme t.................................................................1*

2. -a0!r C!m3etit!rs................................................................................................1*

+. Exter a# Fact!r Eva#uati! -atrix 4EFE5.........................................................1%

16. C!m3etitive Pr!'i#e -atrix 4CP-5..................................................................1)

11. Organisational Chart....................................................................................................17

12. Marketing Strategy/ Position of the Company............................................................ 17

13. Internal Factor !al"ation Matri# 4IFE5............................................................... 1$

14. S7OT A a#ysis..................................................................................................12

1%. PEST A a#ysis......................................................................................................21

1). P!rter8s Five F!rces -!$e#.......................................................................................2*

11. Strategic P!siti! a $ Acti! Eva#uati! -atrix 4SPACE5.............................2%

12. BC9 -atrix................................................................................................................21

1+. Fi a cia# P!siti! !' C!m3a y...........................................................................22

26. Fi a cia# P!siti! i 2616.........................................................................................*6

26. :ec!mme $ati! s.................................................................................................*1 21. Concl"sion...................................................................................................................31

E;EC<TI,E S<--A:= Coca%Cola& the pro'"ct that has gi!en the (orl' its )est%kno(n taste (as )orn in *tlanta& +eorgia& on May $& 1$$,. Coca%Cola Company is the (orl'-s lea'ing man"fact"rer& marketer an' 'istri)"tor of non%alcoholic )e!erage concentrates an' syr"ps& "se' to pro'"ce nearly .// )e!erage )ran's. It sells )e!erage concentrates an' syr"ps to )ottling an' canning operators& 'istri)"tors& fo"ntain retailers an' fo"ntain (holesalers. 0he Company-s )e!erage pro'"cts comprises of )ottle' an' canne' soft 'rinks as (ell as concentrates& syr"ps an' not%rea'y%to% 'rink po('er pro'"cts. In a''ition to this& it also pro'"ces an' markets sports 'rinks& tea an' coffee. 0he Coca%Cola Company )egan )"il'ing its glo)al net(ork in the 112/s. 2o( operating in more than 2// co"ntries an' pro'"cing nearly .// )ran's. 0he Coca%Cola Company an' its net(ork of )ottlers comprise the most sophisticate' an' per!asi!e pro'"ction an' 'istri)"tion system in the (orl'. 0his "ni3"e (orl'(i'e system has ma'e 0he Coca%Cola Company the (orl'-s premier soft%'rink enterprise. From 4oston to 4ei5ing& from Montreal to Mosco(& Coca%Cola& more than any other cons"mer pro'"ct& has )ro"ght pleas"re to thirsty cons"mers aro"n' the glo)e. For more than 116 years& Coca%Cola has create' a special moment of pleas"re for h"n're's of millions of people e!ery 'ay. 0he Company aims at increasing shareo(ner !al"e o!er time. It accomplishes this )y (orking (ith its )"siness partners to 'eli!er satisfaction an' !al"e to cons"mers thro"gh a (orl'(i'e system of s"perior )ran's an' ser!ices& th"s increasing )ran' e3"ity on a glo)al )asis. 0hey aim at managing their )"siness (ell (ith people (ho are strongly committe' to the Company !al"es an' c"lt"re

an' pro!i'ing an appropriately controlle' en!ironment& to meet )"siness goals an' o)5ecti!es.

AC>NO7LE?9E-ENT 7e are gratef"l to the general people (ho ha!e helpe' "s )y gi!ing their !al"a)le comments on Coca%cola '"ring o"r analysis. 7e also thank o"r s")5ect teacher for pro!i'ing "s an opport"nity to (ork on the strategic analysis on Coca%cola as a Management of 4"siness *'ministration trainees an' helping "s to learn a)o"t the market pro'"cts an' cons"mer perception a)o"t )e!erage pro'"cts of Coca%Cola.

&ISTO:= OF COCA COLA Coca%Cola8 originate' as a so'a fo"ntain )e!erage in 1$$, selling for fi!e cents a glass. arly gro(th (as impressi!e& )"t it (as only (hen a strong )ottling system 'e!elope' that Coca%Cola )ecame the (orl'%famo"s )ran' it is to'ay. 12+4 @ A m!$est start '!r a B!#$ I$ea In a can'y store in 9icks)"rg& Mississippi& )risk sales of the ne( fo"ntain )e!erage calle' Coca%Cola impresse' the store:s o(ner& ;oseph *. 4ie'enharn. <e )egan )ottling Coca%Cola to sell& "sing a common glass )ottle calle' a <"tchinson. 4ie'enharn sent a case to *sa +riggs Can'ler& (ho o(ne' the Company. Can'ler thanke' him )"t took no action. One of his nephe(s alrea'y ha' "rge' that Coca%Cola )e )ottle'& )"t Can'ler foc"se' on fo"ntain sales. 12++ TAe 'irst /!tt#i g agreeme t 0(o yo"ng attorneys from Chattanooga& 0ennessee )elie!e' they co"l' )"il' a )"siness aro"n' )ottling Coca%Cola. In a meeting (ith Can'ler& 4en5amin F. 0homas an' ;oseph 4. 7hitehea' o)taine' e#cl"si!e rights to )ottle Coca%Cola across most of the =nite' States >specifically e#cl"'ing 9icks)"rg? %% for the s"m of one 'ollar. * thir' Chattanooga la(yer& ;ohn 0. @"pton& soon 5oine' their !ent"re. 1+66(1+6+ B :a3i$ gr!"tA 0he three pioneer )ottlers 'i!i'e' the co"ntry into territories an' sol' )ottling rights to local entreprene"rs. 0heir efforts (ere )ooste' )y ma5or progress in )ottling technology& (hich impro!e' efficiency an' pro'"ct 3"ality. 4y 11/1& nearly .// Coca%Cola )ottling

plants (ere operating& most of them family%o(ne' )"sinesses. Some (ere open only '"ring hot%(eather months (hen 'eman' (as high. 1+1) B BirtA !' tAe c! t!ur /!tt#e 4ottlers (orrie' that the straight%si'e' )ottle for Coca% Cola (as easily conf"se' (ith imitators. * gro"p representing the Company an' )ottlers aske' glass man"fact"rers to offer i'eas for a 'istincti!e )ottle. * 'esign from the Aoot +lass Company of 0erre <a"te& In'iana (on enth"siastic appro!al in 1116 an' (as intro'"ce' in 111,. 0he conto"r )ottle )ecame one of the fe( packages e!er grante' tra'emark stat"s )y the =.S. Patent Office. 0o'ay& it:s one of the most recogniBe' icons in the (orl' % e!en in the 'arkC 1+26s B B!tt#i g !vertakes '!u tai sa#es *s the 112/s 'a(ne'& more than 1&/// Coca%Cola )ottlers (ere operating in the =.S. 0heir i'eas an' Beal f"ele' stea'y gro(th. Si#%)ottle cartons (ere a h"ge hit after their 1123 intro'"ction. * fe( years later& open%top metal coolers )ecame the forer"nners of a"tomate' !en'ing machines. 4y the en' of the 112/s& )ottle sales of Coca%Cola e#cee'e' fo"ntain sales. 1+26s a $ *6s B I ter ati! a# ex3a si! @e' )y longtime Company lea'er Ao)ert 7. 7oo'r"ff& chief e#ec"ti!e officer an' chairman of the 4oar'& the Company )egan a ma5or p"sh to esta)lish )ottling operations o"tsi'e the =.S. Plants (ere opene' in France& +"atemala& <on'"ras& Me#ico& 4elgi"m& Italy& Per"& Spain& *"stralia an' So"th *frica. 4y the time 7orl' 7ar II )egan& Coca%Cola (as )eing )ottle' in .. co"ntries. 1+46s B P!st("ar gr!"tA D"ring the (ar& ,. )ottling plants (ere set "p aro"n' the (orl' to s"pply the troops. 0his follo(e' an "rgent re3"est for )ottling e3"ipment an' materials from +eneral isenho(er:s )ase in 2orth *frica. Many of these (ar%time plants (ere later con!erte' to ci!ilian "se& permanently enlarging the )ottling system an' accelerating the gro(th of the Company:s (orl'(i'e )"siness. 1+%6s B Packagi g i !vati! s

For the first time& cons"mers ha' choices of Coca%Cola package siBe an' type %% the tra'itional ,.6%o"nce conto"r )ottle& or larger ser!ings incl"'ing 1/%& 12% an' 2,%o"nce !ersions. Cans (ere also intro'"ce'& )ecoming generally a!aila)le in 11,/. 1+)6s B Ne" /ra $s i tr!$uce$

Follo(ing Fanta8 in the 116/s& Sprite8& Min"te Mai'8& Fresca8 an' 0a48 5oine' )ran' Coca%Cola in the 11,/s. Mr. Pi))8 an' Mello Eello8 (ere a''e' in the 117/s. 0he 11$/s )ro"ght 'iet Coke8 an' Cherry Coke8& follo(e' )y PO7 A*D 8 an' D*S*2I8 in the 111/s. 0o'ay h"n're's of other )ran's are offere' to meet cons"mer preferences in local markets aro"n' the (orl'. 1+16s a $ 26s B C! s!#i$ati! t! serve cust!mers *s technology le' to a glo)al economy& the retailers (ho sol' Coca%Cola merge' an' e!ol!e' into international mega%chains. S"ch c"stomers re3"ire' a ne( approach. In response& many small an' me'i"m%siBe )ottlers consoli'ate' to )etter ser!e giant international c"stomers. 0he Company enco"rage' an' in!este' in a n"m)er of )ottler consoli'ations to ass"re that its largest )ottling partners (o"l' ha!e capacity to lea' the system in (orking (ith glo)al retailers. 1++6s B Ne" a $ gr!"i g markets Political an' economic changes opene' !ast markets that (ere close' or "n'er'e!elope' for 'eca'es. *fter the fall of the 4erlin 7all& the Company in!este' hea!ily to )"il' plants in astern "rope. *n' as the cent"ry close'& more than F1.6 )illion (as committe' to ne( )ottling facilities in *frica. 21st Ce tury 0he Coca%Cola )ottling system gre( "p (ith roots 'eeply plante' in local comm"nities. 0his heritage ser!es the Company (ell to'ay as people seek )ran's that honor local i'entity an' the 'istincti!eness of local markets. *s (as tr"e a cent"ry ago& strong locally )ase' relationships )et(een Coca%Cola )ottlers& c"stomers an' comm"nities are the fo"n'ation on (hich the entire )"siness gro(s.

B:AN?S OF COCA(COLA

E ergy ?ri ks For those (ith a high%intensity approach to life& Coca Cola-s )ran's of nergy Drinks contain ingre'ients s"ch as ginseng& caffeine an' 4 !itamins.

CuicesDCuice ?ri ks

7e )ring inno!ation to the goo'ness of 5"ice in Coca Cola-s more than 2/ 5"ice an' 5"ice 'rink )ran's& offering )oth a'"lts an' chil'ren n"tritio"s& refreshing an' fla!orf"l )e!erages

S!'t ?ri ks

Coca Cola-s 'oBens of soft 'rink )ran's pro!i'e fla!or an' refreshment in a !ariety of choices. From the original Coca%Cola to most recent intro'"ctions& soft 'rinks from 0he Coca%Cola Company are )oth icons an' inno!ators in the )e!erage in'"stry.

S3!rts ?ri ks

Car)ohy'rates& fl"i's& an' electrolytes team together in Coca Cola-s Sports Drinks& pro!i'ing rapi' hy'ration an' terrific taste for fitness%seekers at any le!el

Tea a $ C!''ee

4ottle' an' canne' teas an' coffees pro!i'e cons"mers: fa!orite 'rinks in con!enient take% any(here packaging& satisfying )oth tra'itional tea 'rinkers an' to'ay:s gro(ing coffee c"lt"re.

7ater Smooth an' essential& o"r 7aters an' 7ater 4e!erages offer hy'ration in its p"rest form.

1/

OtAer ?ri ks So m"ch more than soft 'rinks& Coca Cola-s )ran's also incl"'e milk pro'"cts& so"p& an' more so yo" can choose a Coca Cola Company pro'"ct anytime& any(here for n"trition& refreshment or other nee's#

ST:ATE9IC -ANA9E-ENT CASE OF COCA COLA 1. I tr!$ucti! . a. Coca%Cola& the pro'"ct that has gi!en the (orl' its )est%kno(n taste (as )orn in *tlanta& +eorgia& on May $& 1$$,. Coca%Cola Company is the (orl'-s lea'ing man"fact"rer& marketer an' 'istri)"tor of non%alcoholic )e!erage concentrates an' syr"ps& "se' to pro'"ce nearly .// )e!erage )ran's. It sells )e!erage concentrates an' syr"ps to )ottling an' canning operators& 'istri)"tors& fo"ntain retailers an' fo"ntain (holesalers. 0he Company-s )e!erage pro'"cts comprises of )ottle' an' canne' soft 'rinks as (ell as concentrates& syr"ps an' not%rea'y%to%'rink po('er pro'"cts. In a''ition to this& it also pro'"ces an' markets sports 'rinks& tea an' coffee. 0he Coca%Cola Company )egan )"il'ing its glo)al net(ork in the 112/s. 2o( operating in more than 2// co"ntries an' pro'"cing nearly .// )ran's& the Coca%Cola system has s"ccessf"lly applie' a simple form"la on a glo)al scaleG HPro!i'e a moment of refreshment for a small amo"nt of money% a )illion times a 'ay.I ). 0he Coca%Cola Company an' its net(ork of )ottlers comprise the most sophisticate' an' per!asi!e pro'"ction an' 'istri)"tion system in the (orl'. More than anything& that system is 'e'icate' to people (orking long an' har' to sell the pro'"cts man"fact"re' )y the Company. 0his "ni3"e (orl'(i'e system has ma'e 0he Coca%Cola Company the (orl'-s premier soft%'rink enterprise. From 4oston to 4ei5ing& from Montreal to Mosco(& Coca%Cola& more than any other cons"mer 11

pro'"ct& has )ro"ght pleas"re to thirsty cons"mers aro"n' the glo)e. For more than 116 years& Coca%Cola has create' a special moment of pleas"re for h"n're's of millions of people e!ery 'ay. c. 0he Company aims at increasing shareo(ner !al"e o!er time. It accomplishes this )y (orking (ith its )"siness partners to 'eli!er satisfaction an' !al"e to cons"mers thro"gh a (orl'(i'e system of s"perior )ran's an' ser!ices& th"s increasing )ran' e3"ity on a glo)al )asis. 0hey aim at managing their )"siness (ell (ith people (ho are strongly committe' to the Company !al"es an' c"lt"re an' pro!i'ing an appropriately controlle' en!ironment& to meet )"siness goals an' o)5ecti!es. 0he associates of this Company 5ointly take responsi)ility to ens"re compliance (ith the frame(ork of policies an' protect the Company-s assets an' reso"rces (hilst limiting )"siness risks. 0he coca cola is responsi)le for the mfg. 'istri)"tion J sales of pro'"ct across the co"ntry. 2. 3. Aim. 0he aim of this paper is to gi!e yo" an o!er!ie( of Coca%Cola Company. Existi g ,isi! . -issi! . O/0ectives a $ Strategies. a. ,isi! . 0o achie!e s"staina)le esta)lishe' a !ision (ith clear goals. gro(th& . the company has

>1? Pr!'it. Ma#imiBing ret"rn to shareo(ners (hile )eing min'f"l of o"r o!erall responsi)ilities. >2? Pe!3#e. 4eing a great place to (ork (here people are inspire' to )e the )est they can )e. >3? P!rt'!#i!. 4ringing to the (orl' a portfolio of )e!erage )ran's that anticipate an' satisfy peoplesK 'esires an' nee's. >.? Part ers. 2"rt"ring a (inning net(ork of partners an' )"il'ing m"t"al loyalty. >6? P#a et. 'ifference. 4eing a responsi)le glo)al citiBen that makes a

). -issi! . 0he Aoa'map starts (ith the mission& (hich is en'"ring. It 'eclares the p"rpose as a company an' ser!es as the stan'ar' against (hich the company (eighs the actions an' 'ecisions. It is the fo"n'ation of company manifesto. >1? 0o refresh the (orl' in )o'y& min' an' spirit. 4-arket. Cust!mer. PAi#!s!3Ay5 >2? 0o inspire moments of optimism thro"gh the )ran's an' actions. 4Pr!$ucts5 12

>3? c.

0o create !al"e an' make a 'ifference. 4Se#' c! ce3t5

O/0ectives. >1? 0o engage Coca%Cola in e#ploring the !ia)ility an' options for "sing their 'istri)"tion net(orks in 'e!eloping co"ntries to 'istri)"te Lsocial pro'"cts- s"ch as oral rehy'ration salts >OAS? an' relate' e'"cational materials on health& hygiene an' sanitation. >2? 0o s"pport Coca%Cola an' its partners in mo'eling 'ifferent scenarios (hich com)ine Coca%Cola-s 'istri)"tion net(ork (ith local health initiati!es in or'er to achie!e the aim. >3? 0o esta)lish a core gro"p of ena)lers an' acti!ists to lea' on the 'ifferent aspects of this campaign. >.? 0o monitor the progress of the campaign an' ens"re that any trials an' roll%o"ts are effecti!ely monitore' an' e!al"ate'.

'. Strategies. 0he strategic goals are 'eci'e' )y the top management. <o(e!er& they are re!ie(e' e!ery year in the ann"al meeting to make s"re that they are in line (ith the changing en!ironment. 0hese areG >1? 0o contin"e to )e an organiBation pro!i'ing the 3"ality pro'"cts to the !al"a)le c"stomers. >2? >3? 0o select an' retain the professional people for the organiBation. 0o pro5ect an o"tstan'ing corporate image.

>.? 0o satisfy the c"stomer thro"gh e#tra or'inary ser!ice an' an e#cellent ser!ice along (ith the complete tactical an' operational s"pport. .. A a#ysis !' ,isi! a $ -issi! Stateme t !' C!ca( C!#a. a. ,isi! A a#ysis. 7hile (e talk a)o"t 9ision statement of Coca%cola& it simply tells "s that this company (ants to achie!e something ne( in f"t"re (hich (ill consist s"staina)ility& M"ality an' gro(th. 0his is not an easy task to achie!e )"t apart from this& (e can see that statement is clear an' ha!ing )rief meanings (hich e#plains a lot& a)o"t (hat coca%cola (ants accor'ingly. Moreo!er this statement tells "s that& they are going to achie!e these three things (hich are s"staina)ility& M"ality an' gro(th )y the help of si# !aria)les (hich are people& Portfolio partners& planet& profit an' pro'"cti!ity. 0here people& partners& pro'"cti!ity an' portfolio (ill gi!e them to achie!e )etter 3"ality an' gro(th in f"t"re (here as there responsi)ility to(ar's planet an' partners (ill help them to achie!e s"staina)ility. So 9ision of Coca%Cola is clear an' goo' for f"t"re.

13

). -issi! A a#ysis. In Mission statement of Coca%Cola Company& it contains Philosophy& Self concept& c"stomers& Pro'"cts an' ser!ices& market. 0he mission statement is satisfactory )eca"se it is containing fi!e components o"t of nine. 9ision is clear an' mission statement of Coca%cola is also s"pporting its !ision. 6. I $ustry A a#ysis. a. -a0!r C!m3etit!rs. >1? Pe3si. Cale) 4ran'h"m& a 2orth Caroline Pharmacist& str"ct"re Pepsi Cola in the 1$1/-s as c"re of Dyspepsia >in'igestion?. In 11/2& 4ra'h"m applie' for a tra'e mark& iss"e' ninety se!en share of stock an' )egan selling Pepsi syr"p in earnest. In his first year of )"siness he spen's F11// on a'!ertising a h"ge s"m that he sol' only $/// gallons of syr"p. In 11/6 4ra'h"m )"ilt Pepsi-s )ottling plant. 4y 11/7 he (as selling 1/&/// gallons a year& t(o years laterK he hire' a 2e( Eork a'!ertising agency.

*fter passing thro"gh many tro")les for some perio' no( Pepsi is a market lea'er in internationally an' is a!aila)le in 1$7 2ations thro"gho"t the (orl'. >3? Pra . PA*2 keeps its presence in car)onate' soft 'rink pro'"cing cola& @ime an' lemon.

Its refreshing pro'"cts are (i'ely accepte' in 4angla'esh an' international market. >.? :C C!#a. Since 11/6& the refreshing taste of Aoyal Cro(n pro'"cts has )een 'elighting cola 'rinkers. Cons"mers en5oy AC in more than ,/ co"ntries (orl'(i'e. Aoyal Cro(n Cola International pro'"cts

1.

are sol' thro"gh a glo)al net(ork of more than 1// franchise' )ottling plants an' 'istri)"tors.

AC cola has (i'ely 'isperse' in 4angla'esh. It has )ecome one of the )ig competitors of coca%cola in 4angla'esh. In r"ral areas AC cola is a !ery pop"lar than that of coca%cola.

).

Exter a# Fact!r Eva#uati! 4EFE5 -atrix. >1? #ternal factors e!al"ation > F ? of Coke is as follo(sG 7eigAt /./76 /.1 /./6 /./6 /./6 /./76 /./376 /./76 /./376 :ate 1 . 3 3 3 3 3 2 1 7t. Sc!re /./76 /.. /.16 /.16 /.16 /.226 /.1126 /.16 /./376

Fact!rs OPPO:T<NITIES 2"tritional offering +lo)al e#pansion Inno!ation Pro'"ct 'i!ersification #plore ne( markets Digital programs Sensiti!ity marketing De!elop c"stomer relation Coffee/tea 'ispensing technology T&:EATS

16

Changing tren' of healthy eating an' 'rinking Strong competitors S")stit"te pro'"cts 4ottle' tea market of competitor <igh cost of pro'"ction =n)ran'e' pro'"cts Aising price of inp"ts Decreasing !al"e of 'ollar 0ailore' )ran's T!ta#

/.1 /./6 /./6 /./376 /./6 /./6 /./376 /./6 /./6 1.6

2 2 2 1 2 2 1 2 2

/.2 /.1 /.1 /./376 /.1 /.1 /./376 /.1 /.1 2.*2%

>2? A a#ysis !' EFE -atrix !' C!ke. *ccor'ing to the analysis of F & the rating is 2.32& (hich is slightly )elo( a!erage. 0his sho(s that the threats )eing face' )y Coca Cola are fierce& an' it sho"l' take some actions to pre!ent the threats an' "tiliBe the "pcoming opport"nities.

'.

C!m3etitive Pr!'i#e -atrix 4CP-5. >1? CPM is as follo(sG C!ca(c!#a :ati g Sc!re . 3 . 6 6 . /.32 /./76 /.1, /..6 /.2/ /.1, Pe3si C! :ati g Sc!re 3 3 6 . 6 . /.2. /./76 /.2/ /.3, /.2/ /.1,

>ey Success 7eigAt Fact!r +ro(th of Cash /./$ Flo( Declines in the /./26 Material Cost Marketing of Core /./. 4ran's Intro'"ction of /./1 2e( Pro'"cts *'!ertising an' /./. Promotional Spen'ing Penetration into /./. 2ontra'itional 1,

Distri)"tion Channels Financial Strength /./$ Market Share /.13 International /./1 Prospects Aisk *ssessment /./3 Cre'it Aating /./3 Pro'"ct Portfolio /./3 *c3"isitions in the /.12 F"t"re 9olatility to /.12 #change Aates *c3"iring 2e( /./$ 0echnology of 4ottling T!ta# 1.66

6 3 . 3 6 . 3 . 2

/../ /.31 /.6, /./1 /.16 /.12 /.3, /..$ /.1,

. . . 2 3 . 2 3 1

/.32 /.62 /.6, /./, /./1 /.12 /.2. /.3, /./$

4.61%

*.%2%

>2? It can )e concl"'e' from the a)o!e gi!en Competiti!e Profile Matri# >CPM? that Coca% Cola Company is stronger in comparison (ith PepsiCo. PepsiCo is the ma5or competitor of Coca%Cola gi!en the partic"lar s"ccess factors& the strategic position of Coke is )etter than that of PepsiCo as it is e!i'ent from the score of )oth the companies. It represents the o!erall comparison of the t(o companies is relation to the factors gi!en an' the importance of the (eights to the in'"stry. ,. I ter a# Assessme t. a. Existi g Orga iEati! a# CAart.

17

CEO

9P/ Presi'ent 4ottling In!est/ S"pply Chain

CFO an' 9P

9P/ Presi'ent MN0 Strategy

Presi'ent J COO

S9P J +eneral Co"nsel

S9P J Director <"man Aeso"rces

S9P J Director P")lic *ffairs/ Comm"ni% %cation

Presi'ent of "rasia +ro"p

Presi'ent "ropean =nion Market

Presi'ent of *frican +ro"p

Presi'ent @atin *merica +ro"p

Presi'ent of Pacific +ro"p

).

-arketi g Strategy !' tAe C!m3a y >1? Target -arket Coke-s commercials )asically )ase' on yo"ng generations& so& the yo"ng generation is the target market of Coke )eca"se they (ant to represent Coke (ith the yo"th an' energy )"t they also consi'er a)o"t the ol' people they take then as a co%target market. >2? -a0!r Segme ts Ma5or segments are )asically those people (ho take this 'rink 'aily an' those areas (here the 'eman's is higher then the other areas. 0here are so many people (ho take this 'rink 'aily an' those people (ho take (eekly an' those (ho take less often are al(ays there as (ell. So& their )asic segments are those people (ho take this 'rink reg"larly. >3? Fact!rs E''ecti g Sa#es 0here are so many factors& (hich affects the sale of coke. 0hese three factors are Per capita income Competitors& 7eather >.? -arketi g P!#icy !' C!ke i Ba g#a$esA. Coke has anno"nce' plans to commence its o(n sales an' 'istri)"tion operations in 4angla'esh. 0he company s")mitte' a proposal to the 4angla'eshi go!ernment for setting "p a man"fact"ring plant in the co"ntry to ha!e 'irect presence in local market. Coca Cola pro'"cts ha!e )een prepare'& package' an' sol' in 4angla'esh for aro"n' 6/ years. 4"t it has )een marketing its pro'"cts thro"gh local representati!es. 7ith the imminent la"nch of sales an' 'istri)"tion operations& the company (ill 'istri)"te its flagship pro'"cts %% Coca Cola& Sprite an' Fanta to the local market 'irectly. 0a)ani 4e!erage& a state%o(ne' company of 4angla'esh& "se' to )ottle an' market Coca Cola pro'"cts in 4angla'esh "ntil Septem)er last year. 4"t 0a)ani stoppe' its operation in Septem)er (hen Coca Cola ma'e a 1$

partnership (ith a pri!ate company for )ottling an' marketing of its pro'"cts. 0he plan for setting "p a plant an' commence o(n sales an' 'istri)"tions sho(e' the company:s keen interest in )oosting its )"siness an' in!estment in 4angla'esh. 0he sales an' 'istri)"tion operations (ill shortly )e la"nche' in capital Dhaka an' (estern Aa5shahi city. >6? 0he marketing strategy ena)les Coke to listen to all the !oices aro"n' the (orl' asking for )e!erages that span the entire spectr"m of tastes an' occasions. 7hat people (ant in a )e!erage is a reflection of (hich they are& (here they li!e& ho( they (ork an' play& an' ho( they rela# an' recharge. 0he company is 'etermine' not only to make great 'rinks& )"t also to contri)"te to comm"nities aro"n' the (orl'. c. I ter a# Fact!r Eva#uati! 4IFE5 -atrix. >1? Internal factor e!al"ation >IF ? of Coke is as follo(sG 7eigAt /.12 /.1 /.1 /.1 /.1 /./6 /./6 /./6 /./6 :ate . 3 3 . 3 3 . . 3 7t. Sc!re /..$ /.3 /.3 /.. /.3 /.16 /.2 /.2 /.16

Fact!rs Stre gtAs 4ran' 2ame 9ariety of pro'"cts <igh market share Financial strength Strong glo)al presence Pro'"ct 3"ality +eographic sprea' 2e( pro'"cts Inno!ati!e packing 7eak esses Strong J to"gh competition S")stit"te pro'"cts *'!ertising J promotion 2on a!aila)ility of all fla!ors/ pro'"cts in e!ery operating gro"p

/.1 /./6 /./$

1 1 2

/.1 /./6 /.1,

/./6

/./6

*ffor'a)ility of coke pro'"cts in 4angla'esh /./76 2 /.16 T!ta# 1.6 2.++ >2? A a#ysis !' IFE matrix !' C!ke. *ccor'ing to the analysis of IF & the score of Coke is 2.11& (hich is a)o!e a!erage. 0his sho(s that Coca%Cola is internally strong an' goo' eno"gh. So )y "sing their strengths& the can o!ercome their (eaknesses.

11

7.

Strategy F!rmu#ati! . a. S7OT A a#ysis. >1? Stre gtA >a? Str! g Bra $ Name 0he (orl':s most !al"a)le )ran'. It is the most recogniBa)le (or' across the (orl' after Ok is Coke. #tremely recogniBa)le )ran'ing is one of Coca%Cola-s 36 greatest strengths. Coca%Cola-s )ran' name is kno(n (ell thro"gho"t )y 16O of the (orl' to'ay. >)? C!r3!rate I$e tity It has a !ery strong corporate i'entity as it is !ery recogniBe' company in all the parts of the (orl' an' it is in e#istence since 1$$/-s. >c? 9#!/a# ?istri/uti! Coca cola is a!aila)le in each an' e!ery part of the (orl' as it is operating glo)ally in more than 2// co"ntries (ith its hea' office locate' in *tlanta& =S* an' 'aily more than 1./, )illion 'ollar are cons"me' aro"n' the (orl'. >'? I !vati! D Ne" Pr!$uct It al(ays la"nches inno!ati!e pro'"cts like 'iet coke& !anilla coke an' many other. >e? L!ca# A33r!acA It con'"cts )"siness on a glo)al scale (hile at the same time maintain a local approach (hich is p"rely !isi)le from its a'!ertisement. >f? Bra $ L!ya#ty Coca cola en5oys the )ran' loyalty from the c"stomers. >g? Fi a cia# Sta/i#ity It is their in company as it is a !ery ol' an' prestigio"s )ran'. >h? Pr!$uct Fua#ity. 0hey 'on-t compromise (ith the stan'ar's. 0hey maintain the 3"ality at any cost. >2? 7eak ess. >a? Str! g G T!ugA C!m3etiti! . Other than Pepsi& in 4angla'esh Coca%Cola has !ery to"gh competitors. Pran an' AC cola are some of them. >)? Su/stitute Pr!$ucts. Many infamo"s )ran's of )e!erage are penetrating into the market an' making a s")stit"te soft 'rink of coca%cola. >c? A$vertisi g G Pr!m!ti! . In comparison to its competitor-s a'!ertisement& the a'!ertising campaign of coke is

2/

!ery meager. It has )ecome mainly a city )iase' soft 'rinks. In r"ral areas many people e!en are not a(are of this )ran' at all. >'? N! Avai#a/i#ity !' a## Pr!$ucts i Every O3erati g 9r!u3. Coca%cola has not concentrate' on all age gro"ps e3"ally. 0heir main concentrations are )asing on the choice of yo"ng generation. >e? A''!r$a/i#ity !' C!ke Pr!$ucts i Ba g#a$esA. In 4angla'esh people from all (alks of life cannot really affor' to ha!e coke an' its pro'"cts )eca"se of its price.
P

>3?

O33!rtu ities. >a? Nutriti! O''eri g. In 1// ml of coke there are ..O of energy an' 11O of car)ohy'rate. 0his n"trition gi!es a 'i!i'en' on gro(ing a healthy physi3"e. >)? 9#!/a# Ex3a si! . #pansion of the coke aro"n' the glo)e is highly enco"raging. In one si'e 'ay )y 'ay it is e#pan'ing its market an' also getting into ne( markets other than soft 'rink market. *s coke is en5oying so goo' )ran' name& then if they enter in any other in'"stry (ith same )ran' name it can also s"ccee' in that in'"stry. >c? I !vati! . <as a potential to inno!ate an' 'ifferentiate the company:s pro'"cts to s"stain a competiti!e a'!antage. >'? Pr!$uct ?iversi'icati! . pro'"cts line in its in!entory. Coke has a 'i!ersifie'

>e? Ex3#!re Ne" -arkets. 0he company is e#ploring ne( markets thro"gho"t the (hole (orl'. >f? Cust!mer :e#ati! . 0he relations (ith the c"stomers are 3"ite congenial. So& Coke has to e#plore this great opport"nity. >.? TAreats. >a? CAa gi g Tre $ !' &ea#tAy Eati g. ?ri ki g. People (ill prefer to take 5"ice or more n"tritio"s )e!erages instea' of tra'itional 'rinks. D"e to the a)sence of other pro'"cts of coke in 4angla'esh& general mass may resort to other pro'"cts. >)? Str! g C!m3etit!rs. In 4angla'esh other than Pepsi& Pran an' AC are the main competitors. 0he market e#pansion of Pran an' AC is praise (orthy. >c? Su/stitute Pr!$ucts. Many infamo"s )ran's of )e!erage are penetrating into the market an' making a s")stit"te soft 'rink of coca%cola 21

>'? < /ra $e$ Pr!$uctsDTai#!re$ Bra $s. Se!eral "n)ran'e' )e!erage pro'"cts a!aila)le in the market an' those are posing a s")stantial threat to Coke. >e? ?ecreasi g ,a#ue !' ?!##ars. *nother tren' affecting Coca%Cola is the relati!e strength of the =.S. Dollar >=SD? . *ltho"gh the company is )ase' in the =S& company 'eri!es a)o"t 76O of its operating income from o"tsi'e =nite' States. 4eca"se of this& the company is !ery sensiti!e to the strength of the 'ollar. *s foreign c"rrencies (eaken relati!e to the 'ollar& goo's sol' in foreign markets are s"''enly (orth fe(er 'ollars )ack in the =S& lo(ering earnings. 0h"s& if the 'ollar strengthens >as it 'i' in the secon' half of 2//$ an' 2//1?& it has a negati!e effect on company:s earnings. Company has )roa' e#pos"re to foreign c"rrencies an' acti!ely he'ges a large portion of these to a!oi' (i'e s(ings in earnings from c"rrency fl"ct"ations. *ltho"gh this he'ging ins"lates from the potential 'o(nsi'e of a strengthening 'ollar& it also limits larger gains from 'rastic 'o(ns(ings in the 'ollar:s !al"e. ). PEST A a#ysis. follo(s. >1? 0he P S0 analysis of Coca%Cola Company is as

P!#itica# ,aria/#es a $ A a#ysis. Str! g#y E''ecte$ QQ S!me "Aat E''ecte$ RQ N! E''ect Q% 2 S!me "Aat E''ecte$ H Str! g#y E''ecte$ SS

P!#itica# varia/#es ffects of go!ernment reg"lations J 'ereg"lations ffect of en!ironmental protection la(s if any Import an' e#port reg"lations ffect of political con'itions in certain co"ntries of Coke

E S

2 2

22

*s far as the a)o!e ta)le is concerne' it co"l' )e seen that there are !ery little chances of Hpolitical !aria)lesI to effect the coke-s pro'"ction an' selling )eha!ior. In the Hpolitical !aria)lesI most of the things are relate' to +o!ernmental acti!ities. So& they 'on-t lea!e any goo' or )a' impact in the In'"stry of coke. >2? Ec! !mic ,aria/#es a $ A a#ysis. Str! g#y E''ecte$ RQQ S!me "Aat E''ecte$ RQ N! E''ect Q% S!me "Aat E''ecte$ H Str! g#y E''ecte$ SS Ees

Ec! !mic varia/#es

Soaring interest rates make )"siness task any har'er *ny effect '"e to inflation *nything 'one Ees to re'"ce "nemployment

Ees

It co"l' )e seen that Heconomical !aria)lesI highly affects the Coke-s resol"tion. conomic factors are those actors (ho affect the pro'"ction of any in'"stry. So& Coke is not the o"t of 3"estion. >3? S!cia# ,aria/#es a $ A a#ysis. Str! g#y E''ecte$ RQQ Ees S!me "Aat E''ecte$ RQ N! E''ect Q% S!me "Aat E''ecte$ H Str! g#y E''ecte$ SS

S!cia# varia/#es ffects of a'!ertisement of Coke on P")lic pop"larity <o( (ill 'o Coke-s contri)"tion affect charity organiBations

Ees

23

<as rising conscio"sness of nat"ral reso"rces in people effecte' yo"r Hsa!e en!ironment acti!ities. >.?

Ees

TecA !#!gica# ,aria/#es a $ A a#ysis Str! g#y E''ecte$ RQQ Ees S!me "Aat E''ecte$ RQ N! E''ect Q% S!me "Aat E''ecte$ H Str! g#y E''ecte$ SS

TecA !#!gica# varia/#es <a!e )"siness inno!ations effecti!ely promote' the )"siness <as the go!ernment-s reg"lations e!er hin'ere' in importing technical e3"ipment Does Coke help in promoting paperless en!ironment

Ees

Ees

Of co"rse )"siness inno!ation lea!es highly goo' impacts in the )"siness of Coke. *s coke "se more a'!ance technology in its pro'"ction process& it (ill res"lt in increment of their pro'"ction thro"gh o"t the co"ntry. *s the coke helping in promoting Hpaperless en!ironmentI .it impact is goo'& )eca"se comp"ters are the )asic nee' of any person no( a 'ays. *n' tho"gh it-s a )ig in'"stry so it is promoting the tren' of paperless en!ironment. *n' it is gi!ing the (ay of other in'"stries to come to ne( technologies an' into a ne( (orl' of )"siness. 0hro"gh comp"ters coke can increase the efficiency of its )"siness an' can ha!e "p Tto%'ate 'ata a)o"t their pro'"ctions.

2.

c. P!rter8s Five F!rces -!$e# A a#ysis. *pplying Porter-s 6 forces allo(s the potential attracti!eness in terms of profita)ility of the company. 0he analysis )elo( (ill concentrate on the in'"stry from COC* CO@* perspecti!eG >1? Bargai i g P!"er !' Su33#ier. Inp"ts& s"ch as materials& la)or& s"pplies& etc. are stan'ar' rather than "ni3"e or 'ifferentiate'. 0his allo(s !aria)le s")stit"tes of inp"ts rea'ily an' res"lte' in n"mero"s potential s"ppliers. S"ppliers themsel!es (ill fin' it har' to enter )"siness like COC* CO@* an' perform f"nction in%ho"se. Since COC* CO@* is pro'"cing at large scale& to s"ppliers& this )"siness is !ery importantK ho(e!er the cost of p"rchase has significant infl"ence on o!erall costs. 0his re3"ires COC* CO@* to caref"lly choose its s"ppliers to s"ppress cost pro)lem. Most of the s"ppliers in the in'"stry are the strategic partners of 'ifferent players in the in'"stry an' there are many s"ppliers a!aila)le. 0herefore the s"ppliers are not in a position to threaten the companies. >2? Bargai i g P!"er !' Buyers. 0here are a large n"m)er of )"yers an' c"stomer relati!e to the n"m)er of firms in the in'"stry& each (ith relati!ely small p"rchases. <o(e!er& there is no cost inc"rre' in s(itching s"ppliers. COC* CO@*-s pro'"ct is !ery "ni3"e to some 'egree an' has accepte' )ran'ing. <o(e!er& c"stomers are !ery highly sensiti!e to price& therefore choosing the most cost efficient s"ppliers are !ery cr"cial to minimiBe cost& th"s ma#imiBing profit. 0he )"yers are also not in a position to )argain the prices from the companies as there are a fe( 'ominant sellers in the in'"stry (ho ha!e the ma5or market share of non%alcoholic 'rinks. >3? TAreats !' Su/stitute. It cost the c"stomers nothing to s(itch to COC* CO@*-s s")stit"tes& s"ch as coffee& tea an' 5"ice. 4esi'es& there has )een a high potential of c"stomers to s")stit"te COC* CO@* pro'"cts. >.? :iva#ry am! g C!m3eti g Firms. COC* CO@*-s main ri!al is Pepsi an' in 4angla'esh Pran an' AC cola are the )iggest threat that they pose is price. 7hen prices change& the effect on )e!erage in'"stry to(ar's the cons"mption of soft 'rink is 'rastic. *ltho"gh the pro'"ct is not comple#& (hich makes it easier for other companies to compete against COC* CO@*K they 'o not o(n a share in the market as large as either COC* CO@* or Pepsi are. 0his is )eca"se it is har' to commit into this in'"stry& as it (ill )e har' to get o"t of this )"siness& in!ol!ing specialiBe' skills& facilities an' long%term contract commitments. Capital nee'e' to enter the )"siness line is !ery large. 0his (ill res"lt in less competition& th"s ena)ling COC* CO@*-s chance to gain more market share. 0he intensity of the ri!alry in the in'"stry is not !ery strong as the pro'"cts are 'ifferentiate'. >6? TAreats !' Ne" E tra ts. @arge companies like COC* CO@*& ha!e a cost or performance a'!antage in the )e!erage in'"stry& )eca"se of 26

esta)lishe' )ran' i'entities. 4esi'e Pepsi& there are proprietary pro'"ct 'ifferences in the in'"stry. 0he capital nee'e' to enter the in'"stry an' to )e frontline in the in'"stry like COC* CO@* to'ay is !ery e#pensi!e& for the reason to )"il' pro'"ction plant& managing the company& commercialiBation& etc. an' also a long time frame to )"il' the confi'ence an' loyalty in the target market. 2e(comers also face 'iffic"lty in accessing the 'istri)"tion channels an' it may )e more costly compare' to (hat COC* CO@* has to pay& gi!en their le!el of e#perience in the in'"stry. @icenses& ins"rance an' 3"alifications are 'iffic"lt to o)tain. <o(e!er& "pon entering the in'"stry& ne(comer can e#pect a strong retaliation in the market. 7hen this happens& their position may pose a threat to COC* CO@* an' COC* CO@* may fin' more challenges in implementing strategies to o)tain more market share an' maintain c"stomer-s loyalty. O!erall& COC* CO@* are not competing mainly against Pepsi. 0he fight is against its s")stit"tes. * ne( entrant is also not likely to )e s"ccessf"l )eca"se of possi)le retaliation from the e#isting in'"stry players. 0here are many s")stit"tes a!aila)le to non%alcoholic )e!erages therefore this lo(ers the attracti!eness an' profita)ility of the in'"stry. 4"t the relati!e pricing of the s")stit"tes are higher therefore the in'"stry 'oes not s"ffer. '. Strategic P!siti! a $ Acti! Eva#uati! 4SPACE5 -atrix. I20 A2*@ S0A*0 +IC POSI0IO2 COMP 0I0I9 *D9*20*+ Market share %1 Pro'"ct 3"ality %2 C"stomer loyalty %3 Control o!er s"ppliers an' 'istri)"tion %1 *9 A*+ (1.1% 0O0*@ U%*UIS SCOA FI2*2CI*@ S0A 2+0< Aet"rn on in!estment 6 @i3"i'ity 6 7orking capital 6 Cash flo( from operations , *9 A*+ % 0O0*@ E%*UIS SCOA U0 A2*@ S0A*0 +IC POSI0IO2 I2D=S0AE S0A 2+0< +ro(th potential 6 Profit potential 6 Financial sta)ility , ase of entry into market

*9 A*+ 4.2% 2.% 29IOAM 20*@ S0*4I@I0E Aate of inflation %, Deman' !aria)ility %. Price range of competing pro'"cts 4arriers to entry %2 Competiti!e press"re %1 *9 A*+ (2 (*

%2

2,

SPACE -AT:I;

e. B9C -atrix. 0he 4C+ matri# of coca%cola company in regar's to 4angla'esh is as follo(sG

27

&I9&

LO7

IN,EST

LIF<I?ATE

LO7 f. A a#ysis !' B9C -atrix C"rrently& TAums <3 an' -aaEa are the STA:S of Coca% Cola Company. 0he market shares of Fa ta, S3rite an' ?iet C!ke are 3"ite lo( e!en tho"gh they are gro(ing at a goo' rate. 0hey are F<ESTION -A:>S for the company. 2 #iters /!tt#e of coke an' ca s are the CAS& CO7S for the company an' 'o not nee' promotions to )"lk "p their sales. 0he g#ass /!tt#e !' Aa#' #iter /!tt#e Coca Cola is a ?O9 for the company an' nee' to )e remo!e' o"t of the market or a ne( strategy has to )e a'opte' for the same. 2$

$.

Strategy Im3#eme tati! . a. Fi a cia# Stateme t !' tAe C!m3a y.

Peri!$ E $i g

F=266+ F=2662 F=2661 F=266) F=266%

F 21 ,.6 F 21 $/7 F 2/ 13, F 11 $/. F 1$

2et Sales/Ae!en"es

Cost of +oo's Sol' > #cl"'ing 1.$2 4 Depreciation?

1/.16 4

1.23 4

7.22 4

7.31 4

Depreciation& Depletion an' *mortiBation

1.2. 4

1.23 4

1.1, 4

13$.// 132.// M M

+ross Income

2/./2 4 2/.67 4

1$.., 4 16.13 4 1..$, 4

Selling& +eneral J *'min #penses

11.3$ 4 11.77 4

1/.1. 4 1..3 4

$.7. 4

Other Operating #pense

1/7.// M

66.// M

/.//

/.//

/.//

Operating #penses % 0otal

3.,6 4

3.,$ 4

..13 4

3./6 4

1.21 4

Operating Income

$.63 4

$.7. 4

7.62 4

,.6/ 4

,.12 4

#traor'inary Cre'it % Preta#

1.1.// M

/.//

/.//

/.//

.7.// M

21

Peri!$ E $i g

F=266+ F=2662 F=2661 F=266) F=266%

#traor'inary Charge % Preta#

263.// M

1.1$ 4 2,$.// M 1$1.// $1.// M M

2on%operating Interest Income 2.1.// 333.// M 23,.// M 113.// 236.// M M M

Other Income/ #penses % 2et

%1,,.// 63.// M 173.// M 116.// %7/.// M M M

arnings 4efore Interest J 0a#es > 4I0?

$.61 4

7.16 4

7.,, 4

,.7/ 4

,.26 4

Interest #penses On De)t

3.1.// .3$.// M .6,.// M 22/.// 2./.// M M M

Preta# Income

$.1, 4

,.71 4

7.2/ 4

,..$ 4

,./1 4

Income 0a#es

2./. 4

1.,3 4

1.$1 4

1.6/ 4

1.$2 4

C"rrent Domestic Income 0a#

6$$.// 7,1.// M 731.// M ,66.// M M

1./, 4

C"rrent Foreign Income 0a#

1.1/ 4

1.23 4

1./. 4

$7$.// $.6.// M M

Deferre' Domestic Income 0a#

3./.// %3$,.// M $6.// M %.2.// %17.// M M M

3/

Peri!$ E $i g

F=266+ F=2662 F=2661 F=266) F=266%

Deferre' Foreign Income 0a# 13.// M 26.// M 2..// M 7.// M

1.// M

Minority Interest

$2.// M

/.//

/.//

/.//

/.//

3"ity in arnings

7$1.// 72,.// M ,,$.// M 1/2.// ,$..// M M M

2et Income 4efore #tra Items/Preferre' Di!

,.$2 4

6.$1 4

6.1$ 4

6./$ 4

..$7 4

2et Income 4efore Preferre' Di!i'en's

,.$2 4

6.$1 4

6.1$ 4

6./$ 4

..$7 4

Net I c!me Avai#a/#e t! C!mm!

).

).22 B

%.21 B

%.+2 B %.62 B

4.21 B

Fi a cia# P!siti! i 2616 >1? First Fuarter In the first 3"arter of 2/1/& the Coca%Cola Company poste' re!en"es of F7.63 )illion& an increase of nearly 6O from the pre!io"s yearK operating income increase' 17O to F2.1$ )illion. 2et income for the 3"arter gre( more than 11O to F1., )illion. 7orl'(i'e& )oth "nit case an' concentrate !ol"mes increase' 3O compare' to M1 2//1. >2? Sec! $ Fuarter In the secon' 3"arter of 2/1/& Coca%Cola Company poste' re!en"es of F$.,7 )illion& an increase of 6O from M2 2//1K operating income increase' 13O to F2.7, )illion. 2et income for the 3"arter rose 1,O to F2.37 )illion. 7orl'(i'e& )oth "nit case !ol"me an' concentrate sales increase' 6O.

31

c. A a#ysis !' Fi a cia# P!siti! . 0he financial position is !ery enco"raging. !ery year the net income of coca%cola is gro(ing. 0his is )eca"se of their so"n' marketing strategy& fine h"man reso"rce management etc. 1. :ec!mme $ati! s. Some recommen'ations are as follo(sG a Coca% cola m"st "se a'!ertisement me'ia e#tensi!ely. ) 0he Coca%Cola Company has a high le!el of "ncertainty (hen it comes to the ra( materials it "ses. For a fe( of the ingre'ients& the company only has one or t(o !ia)le s"ppliers. 0his co"l' )e e#tremely pro)lematic for a !ariety of reasons. *nother pro)lem co"l' arise if a s"pplier e#periences an e!ent that economically 'e!astates them. If a s"pplier goes )ankr"pt& or is in some type of nat"ral 'isaster& the Coca% Cola Company (o"l' s"ffer greatly as (ell. 0he Coca%Cola Company can impro!e an' sec"re relationships (ith s"ppliers. 0he most optimal metho' (o"l' )e to "se )ack(ar' !ertical integration an' p"rchase a s"pply. c. Marketing team sho"l' try to increase the a!aila)ility of Coke in r"ral areas. '. 0hey sho"l' also foc"s on all age gro"ps not only concentrating on the yo"ng generation. 1/. C! c#usi! . 0he Coca Cola Company has a !ery rich history an' sprea' o!er the (orl'. Coca Cola Company has a strong competiti!e position in the market (ith rapi' gro(th. It nee's to "se its internal strengths to 'e!elop a market penetration an' market 'e!elopment strategy. 0his incl"'es foc"s on 7ater an' ;"ices pro'"cts& an' catering to health conscio"sness of people thro"gh intro'"ction of 'ifferent coke fla!or an' maintaining )asic coke fla!or. Inno!ation in )ran'ing an' aggressi!e marketing strategy can )ring long term profita)ility.

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