GROUP PROJECT ON
STRATEGIC MANAGEMENT
TOPIC:
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
EXTERNAL ENVIRONMENT
EXTERNAL ENVIRONMENT
COMPETITIVE FORCES
SWOT ANALYSIS
WEAKNESS
•Negative publicity
•Low profits in strong area
STRENGTHS •Decline in cash flow
•Supply is restricted
•Global presence
•Many variants.
•Brand awareness
•Logo famous
•Strong marketing THREATS
and advertising
•Intense competition
OPPORTUNITIES •Slowdown in rural
•Demand
•Negative health effect
•Aggressive
acquisitions
•Increase in demand
for bottled water
•Growth of Hispanics
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
