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Contents
Coca-Cola History
Vision, Mission & Objectives
PEST Analysis
Porter's 5 Forces
SOWT Analysis
Corporate Strategy
Business Strategy
Coca-Cola Life Cycle
BCG Matrix
Recommendations
COCA-COLA History
 Coca-Cola history began in 1886 when the curiosity of
an Atlanta pharmacist, Dr. John S. Pemberton, led him
to create a distinctive tasting soft drink that could be
sold at soda fountains.
 He created a flavored syrup, took it to his
neighborhood pharmacy, where it was mixed with
carbonated water and deemed "excellent" by those
who sampled it.
 Dr. Pemberton's partner and bookkeeper, Frank M.
Robinson, is credited with naming the beverage "CocaCola" as well as designing the trademarked, distinct
script, still used today
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
Coca-cola Products
Our vision serves as the framework for our road
map and guides every aspect for 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 shareowners
while being mindful of our overall responsibilities.
 Productivity : Be a highly effective, lean and fastmoving organization
Our Roadmap start with our mission, which is
enduring. It declares our purpose as a company and
serves as the standard against which we weigh our
action and decisions.

 To refresh the world.
 To inspire moments of optimism
happiness.
 To create value and make a difference .

and
The main objectives for the Coca-Cola Company are

 To be globally knows as a business that
conducts business responsibility and ethically.

 To accelerate sustainable growth to operate in
tomorrow’s world.
 To maximize share owner value over time.
 To maximize long-term cash flow
 To ensure the strongest and most efficient
production, distribution, and marketing
systems possible
By having these objectives , it forms the
foundations for companies in decision making
process .
Political Forces:
*Stability of government ( after 25th Jan. and

30 June
*Tax Law
* Attitude towards foreign companies

Economic Forces

*Interest Rate
*Inflation Rate
*Energy cost &availability
*Wages ( Low labor cost
Social Forces:

*Population growth rate

*Life style changes
*Religious orientation (Ramadan
Season)
* Age distribution: 0-14 years:
32.3% - 15-24 years: 18% - 25-54
years: 38.3% (2013 estimate)

Technological Forces:
*Spending on R&D
*Telecom Infrastructure
*Internet availability
*Media(TV&Radio
Medium
Pressure

Entry Barriers
Low
pressure

High
Pressure

Bargaining Power
of Suppliers

Medium to High
pressure

Rivalry among
Competition

Threat of
Substitute

Low
pressure

Bargaining
Power of Buyers
Threat of New Entrants: Medium Pressure






Economies of scale
Switching costs
Capital requirement
Product differentiation (variety)
Access to distribution channels
Threat of Substitute: Medium to High pressure

 Availability of substitutes
 Switching costs

Coca-cola doesn’t really have an entirely unique
flavor. In a blind taste test, people can’t tell the difference

between Coca-Cola and Pepsi.
Bargaining Power of Buyers: Low pressure
 The individual buyer has small pressure on
Coca-Cola
 Large retailers, like Carrefour, have bargaining
power because of the large order quantity, but
the bargaining power is lessened because of
the end consumer brand loyalty.
Bargaining Power of Suppliers: Low pressure
Raw materials of soft drink industry include CO2,
water, sugar, syrup, plastic, glass, tins, etc.
 Amount purchased from supplier
 Switching costs
 Suppliers forward integration
Rivalry Among Competition : High Pressure

 Monopolistic competition
 Product characteristics
Strengths
1.
2.
3.
4.
5.
6.
7.
8.

Global presence
Brand awareness
Logo famous
Strong marketing and advertising
Customer loyalty
Bargaining power over suppliers
Corporate social responsibility
Strong distribution channels

Weaknesses
1.
2.
3.
4.
5.

Negative publicity
Low profits in strong areas
Decline in cash flow
Supply is restricted
Significant focus on carbonated
drinks
6. Brand failures or many brands
with insignificant amount of
revenues
7. Carbonated drinks have bad
physical effects
Opportunities
1. Bottled water consumption growth
2. Increasing demand for healthy food
and beverage
3. Growth through acquisitions

Threats
1.
2.
3.
4.

Changes in consumer preferences
Water scarcity
Negative health effect
Decreasing gross profit and net
profit margins
5. Competition from PepsiCo
6. Saturated carbonated drinks
market
New Region

New Products

Horizontal Integration
High

Relative Cost
Low

Low

High

Degree of Differentiation
Money

Emerging

Growth

Maturity

Declining

SALES
PROFIT

Time

Coca-Cola has more than Life Cycle , on which had a new products
and in the same time they are on the Maturity stage
High

Star

Question Mark

Cash Caw

Dog

Low
High

Low








Coca-Cola should try to have product differentiation for carbonated drinks through R&D
Coca-Cola should spend more R&D on avoiding bad physical effects of carbonated drinks.
Coca-Cola should focus on non carbonated drinks as bottled water and healthy drinks
Coca-Cola should start producing new products rather than beverages as food and snacks
to enter a new life cycle
Coca-Cola should think about Vertical Integration :
- Backward Integration: Produce raw Material
- Forward Integration : Distribution ( Coca-Cola Stores )
Coca-Cola's distribution channel is mostly through retails. Whereas the competitors also
concentrates more on Restaurants and Coffee shops. Coca-Cola should try to increase
their distribution in these areas .
Coca cola strategic management

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Coca cola strategic management

  • 1.
  • 2.
  • 3. Contents Coca-Cola History Vision, Mission & Objectives PEST Analysis Porter's 5 Forces SOWT Analysis Corporate Strategy Business Strategy Coca-Cola Life Cycle BCG Matrix Recommendations
  • 4. COCA-COLA History  Coca-Cola history began in 1886 when the curiosity of an Atlanta pharmacist, Dr. John S. Pemberton, led him to create a distinctive tasting soft drink that could be sold at soda fountains.  He created a flavored syrup, took it to his neighborhood pharmacy, where it was mixed with carbonated water and deemed "excellent" by those who sampled it.  Dr. Pemberton's partner and bookkeeper, Frank M. Robinson, is credited with naming the beverage "CocaCola" as well as designing the trademarked, distinct script, still used today
  • 5. 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
  • 7. Our vision serves as the framework for our road map and guides every aspect for 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.
  • 8.  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 fastmoving organization
  • 9. Our Roadmap start with our mission, which is enduring. It declares our purpose as a company and serves as the standard against which we weigh our action and decisions.  To refresh the world.  To inspire moments of optimism happiness.  To create value and make a difference . and
  • 10. The main objectives for the Coca-Cola Company are  To be globally knows as a business that conducts business responsibility and ethically.  To accelerate sustainable growth to operate in tomorrow’s world.  To maximize share owner value over time.
  • 11.  To maximize long-term cash flow  To ensure the strongest and most efficient production, distribution, and marketing systems possible By having these objectives , it forms the foundations for companies in decision making process .
  • 12. Political Forces: *Stability of government ( after 25th Jan. and 30 June *Tax Law * Attitude towards foreign companies Economic Forces *Interest Rate *Inflation Rate *Energy cost &availability *Wages ( Low labor cost
  • 13. Social Forces: *Population growth rate *Life style changes *Religious orientation (Ramadan Season) * Age distribution: 0-14 years: 32.3% - 15-24 years: 18% - 25-54 years: 38.3% (2013 estimate) Technological Forces: *Spending on R&D *Telecom Infrastructure *Internet availability *Media(TV&Radio
  • 14. Medium Pressure Entry Barriers Low pressure High Pressure Bargaining Power of Suppliers Medium to High pressure Rivalry among Competition Threat of Substitute Low pressure Bargaining Power of Buyers
  • 15. Threat of New Entrants: Medium Pressure      Economies of scale Switching costs Capital requirement Product differentiation (variety) Access to distribution channels
  • 16. Threat of Substitute: Medium to High pressure  Availability of substitutes  Switching costs Coca-cola doesn’t really have an entirely unique flavor. In a blind taste test, people can’t tell the difference between Coca-Cola and Pepsi.
  • 17. Bargaining Power of Buyers: Low pressure  The individual buyer has small pressure on Coca-Cola  Large retailers, like Carrefour, have bargaining power because of the large order quantity, but the bargaining power is lessened because of the end consumer brand loyalty.
  • 18. Bargaining Power of Suppliers: Low pressure Raw materials of soft drink industry include CO2, water, sugar, syrup, plastic, glass, tins, etc.  Amount purchased from supplier  Switching costs  Suppliers forward integration
  • 19. Rivalry Among Competition : High Pressure  Monopolistic competition  Product characteristics
  • 20. Strengths 1. 2. 3. 4. 5. 6. 7. 8. Global presence Brand awareness Logo famous Strong marketing and advertising Customer loyalty Bargaining power over suppliers Corporate social responsibility Strong distribution channels Weaknesses 1. 2. 3. 4. 5. Negative publicity Low profits in strong areas Decline in cash flow Supply is restricted Significant focus on carbonated drinks 6. Brand failures or many brands with insignificant amount of revenues 7. Carbonated drinks have bad physical effects
  • 21. Opportunities 1. Bottled water consumption growth 2. Increasing demand for healthy food and beverage 3. Growth through acquisitions Threats 1. 2. 3. 4. Changes in consumer preferences Water scarcity Negative health effect Decreasing gross profit and net profit margins 5. Competition from PepsiCo 6. Saturated carbonated drinks market
  • 24. Money Emerging Growth Maturity Declining SALES PROFIT Time Coca-Cola has more than Life Cycle , on which had a new products and in the same time they are on the Maturity stage
  • 26.       Coca-Cola should try to have product differentiation for carbonated drinks through R&D Coca-Cola should spend more R&D on avoiding bad physical effects of carbonated drinks. Coca-Cola should focus on non carbonated drinks as bottled water and healthy drinks Coca-Cola should start producing new products rather than beverages as food and snacks to enter a new life cycle Coca-Cola should think about Vertical Integration : - Backward Integration: Produce raw Material - Forward Integration : Distribution ( Coca-Cola Stores ) Coca-Cola's distribution channel is mostly through retails. Whereas the competitors also concentrates more on Restaurants and Coffee shops. Coca-Cola should try to increase their distribution in these areas .