09 PERFORMANCE TASK

STRATEGIC MANAGEMENT:

Submitted by:

ALFON, Alfonzo

AREJOLA, Gian Kyle

CASTILLO, Charles

CAPINAN, Angelica

FLORES, Bryan Kenchie

Submitted to:

Mr. Mario Trinidad

I. Company Background

The Coca-Cola Company is a multinational beverage corporation and one of the

world's leading producers and distributors of non-alcoholic beverages. It was founded
in 1886 in Atlanta, Georgia, by pharmacist Dr. John S. Pemberton, who created the
original Coca-Cola formula. Over the years, the company has expanded its product
portfolio and currently offers a wide range of beverages, including carbonated soft
drinks, juices, energy drinks, bottled water, and more.

Mission and Vision

The mission of The Coca-Cola Company is to refresh the world, inspire moments of
optimism and happiness, and create value and make a difference wherever they
operate. The company aims to achieve this by providing quality beverages that meet
consumers' needs and preferences and by fostering a positive impact on individuals,
communities, and the environment.

The vision of The Coca-Cola Company is to be a total beverage company that satisfies
people's beverage needs at any time, in any place. The company strives to offer a
diverse range of refreshing beverages that include choices with reduced sugar or no
sugar, while maintaining the great taste and quality that consumers expect.

Objectives of The Coca-Cola Company:

Profitable Growth: The company aims to deliver sustainable, profitable growth by
increasing sales and market share through innovative products, effective marketing,
and expanding into new markets.
Customer Satisfaction: The Coca-Cola Company is committed to satisfying consumer
preferences by continuously improving its beverage portfolio and ensuring high-
quality products.
Sustainability: The company focuses on reducing its environmental impact through
water stewardship, energy conservation, sustainable packaging, and responsible
sourcing of ingredients.
Employee Development: The Coca-Cola Company strives to attract, develop, and
retain a diverse and highly talented workforce by providing a supportive and inclusive
work environment.
 Community Engagement: The company actively engages with communities
worldwide by supporting education, health, environmental, and social initiatives to
make a positive difference.

Policies of The Coca-Cola Company:

Product Quality and Safety: The Coca-Cola Company is dedicated to maintaining the
highest standards of quality and safety for its beverages. They have strict quality
control processes in place to ensure the safety and integrity of their products.
Sustainability and Environmental Stewardship: The company has implemented
various policies to minimize its environmental impact. This includes water
conservation, energy efficiency, waste reduction, and sustainable sourcing of
ingredients.
Diversity and Inclusion: The Coca-Cola Company embraces diversity and inclusion in
all aspects of its business. They have policies in place to promote equal opportunities,
fair treatment, and respect for individuals, regardless of their background or
characteristics.
Marketing and Advertising: The company follows ethical and responsible marketing
practices. They adhere to advertising standards and guidelines, especially regarding
the promotion of their products to children.
Human Rights and Labor Practices: The Coca-Cola Company is committed to upholding
human rights and fair labor practices throughout its operations and supply chain. They
have policies to ensure compliance with relevant labor laws and international
standards.

II. Internal Environment

Resources:
• Financial Resources: The Coca-Cola Company has a strong financial position
with significant resources for investment, expansion, and innovation. It
generates substantial revenue and profits, allowing for capital allocation
towards various business functions.
• Brand Equity: Coca-Cola possesses one of the most recognized and valuable
brands in the world. The brand's strong reputation and customer loyalty
contribute to the company's competitive advantage.
 • Distribution Network: The company has a vast and efficient distribution
network that reaches consumers globally. This network allows Coca-Cola to
deliver its products efficiently and maintain a wide market presence.
• Manufacturing Facilities: Coca-Cola owns and operates numerous
manufacturing facilities worldwide, enabling efficient production and supply
chain management.

Capabilities:
• Marketing and Branding: Coca-Cola excels in marketing and advertising,
employing effective strategies to promote its products and build brand equity.
The company's marketing campaigns often focus on emotional connection and
building strong relationships with consumers.
• Product Innovation: Coca-Cola continuously innovates its beverage portfolio
to meet changing consumer preferences. It introduces new flavors, variants,
and packaging options to maintain market relevance and capture new
opportunities.
• Supply Chain Management: The company possesses robust supply chain
capabilities, ensuring a steady flow of raw materials, efficient production, and
timely delivery to meet customer demands.
• Research and Development: Coca-Cola invests in research and development
to develop new beverages, improve existing formulations, and explore
sustainable packaging options. This capability enables the company to stay at
the forefront of product innovation.

Competencies:
• Market Leadership: Coca-Cola maintains a leading position in the global
beverage industry. It competes effectively in various markets, leveraging its
brand recognition, extensive distribution network, and customer loyalty.
• Consumer Insights: The company has a deep understanding of consumer
preferences and behavior, allowing them to develop and market products that
resonate with their target audience.
• Brand Management: Coca-Cola excels at managing its brand identity and
equity, consistently delivering a positive brand experience through its
marketing activities and product quality.
• Operational Efficiency: The company demonstrates operational excellence in
manufacturing, supply chain management, and logistics, enabling cost-
effective production and timely delivery.
III. External Environment

Porter’s Five Forces

• Supplier Power
Coca-Cola relies on various suppliers for raw materials, such as sugar,
packaging materials, and flavorings. The company's size and global presence
provide some leverage in negotiating favorable terms with suppliers.
However, the availability and pricing of key ingredients, as well as any
potential disruptions in the supply chain, can impact Coca-Cola's production
costs and profitability.

• Buyer Power:
Buyer power is relatively high in the beverage industry due to the wide range
of choices available to consumers. The Coca-Cola Company faces competition
from other beverage manufacturers, both large and small, offering
alternatives to its products. Consumers also have the option to choose
healthier beverage alternatives, which can impact Coca-Cola's market share.
As a result, the company invests heavily in marketing and advertising to
maintain brand loyalty and consumer demand.

• Threat of New Entrants:

The beverage industry has a moderate barrier to entry due to factors such as
economies of scale, distribution networks, and brand loyalty. However,
potential new entrants could still pose a threat, especially in emerging markets
where Coca-Cola's dominance might be weaker. Additionally, the company's
strong brand image and extensive distribution channels act as deterrents for
new players.

• Threat of Substitution:
The beverage industry faces a significant threat from substitute products.
Consumers can choose from a variety of alternatives, including water, juice,
tea, coffee, and other non-alcoholic beverages. Health-conscious trends and
shifting consumer preferences towards healthier options present a challenge
to sugary carbonated beverages, which are Coca-Cola's primary products. To
counter this threat, Coca-Cola has diversified its product portfolio to include
healthier options and acquired or invested in alternative beverage brands.

• Competitive Rivalry:
Competition in the beverage industry is intense, with numerous players vying
for market share. Coca-Cola competes with global giants like PepsiCo, as well
 as regional and local beverage companies. Competitive factors include product
innovation, pricing strategies, marketing and advertising campaigns, and
distribution capabilities. Coca-Cola's strong brand recognition and extensive
distribution network provide a competitive advantage. However, constant
innovation and responding to changing consumer preferences are crucial to
maintaining its market position.

IV. Analysis of Strategic Factors

SWOT Analysis
Strengths:
• The Coca-Cola brand possesses a powerful and globally recognized image,
renowned for its top-notch products and iconic logo.
• The company's extensive global presence and well-established distribution
network provide a significant competitive advantage.
• Coca-Cola boasts a diverse product portfolio, catering to a wide range of
consumer preferences with carbonated beverages, juices, teas, coffees, and
water.
• With a history of successful marketing campaigns, the company excels in
leveraging its marketing and advertising capabilities to promote its brand and
products effectively.
• Consistently robust financial performance empowers Coca-Cola to invest in
innovation and expansion, bolstering its position in the market.

Weaknesses:
• Heightened concerns over health impacts pose challenges to Coca-Cola as
consumers become increasingly aware of the effects of sugary carbonated
drinks.
• Reliance on carbonated beverages exposes the company to changing
consumer preferences that favor healthier alternatives, potentially impacting
sales.
• The intricate nature of Coca-Cola's bottling network presents complexities in
maintaining consistency and quality across different markets.
• The company faces vulnerability to water scarcity issues, given its reliance on
water as a crucial ingredient for production.
 • Environmental concerns arise from the environmental impact of Coca-Cola's
production, packaging, and distribution processes, including waste generation
and carbon emissions.

Opportunities:
• The growing demand for healthier beverage options creates an opportunity
for Coca-Cola to diversify its product portfolio and offer low-sugar, functional,
and nutritious alternatives.
• Untapped emerging markets, particularly in developing countries, hold
potential for growth and increased market penetration.
• Strategic acquisitions and partnerships with innovative beverage companies
can expand Coca-Cola's product offerings and allow entry into new market
segments.
• Investing in research and development for innovation and product
development can drive consumer interest and set the brand apart.
• Capitalizing on digital marketing and e-commerce channels can enhance
customer engagement, improve accessibility, and drive online sales.

Threats:
• Intense competition within the beverage industry leads to potential price wars
and reduced profitability.
• Changing consumer preferences towards healthier, natural, and functional
beverages challenge Coca-Cola's traditional carbonated drink offerings.
• Government regulations and taxes targeting advertising, labeling, and taxation
of sugary beverages can negatively impact sales and profitability.
• Global economic fluctuations, such as inflation, currency fluctuations, and
recessions, can affect consumer purchasing power and demand for
discretionary beverages.
• Social and cultural shifts that discourage the consumption of sugary drinks or
question the sustainability practices of the carbonated beverage industry pose
threats to Coca-Cola's business.

V. Strategic Alternatives
Growth:
• Market Expansion: Coca-Cola can focus on expanding its market presence in
untapped regions, especially emerging markets, by increasing its distribution
network and introducing tailored product offerings to cater to local
preferences.
• Product Diversification: The company can invest in research and development
to innovate and diversify its product portfolio further, including healthier
 beverage options, functional drinks, and premium offerings to capture new
market segments.
• Strategic Partnerships and Acquisitions: Coca-Cola can pursue strategic
partnerships or acquisitions with innovative beverage companies to gain
access to new technologies, distribution channels, and product lines, allowing
for rapid expansion and market penetration.
• E-commerce and Digital Transformation: Embracing digital technologies and
investing in e-commerce platforms can enable Coca-Cola to reach a wider
customer base, enhance consumer engagement, and capitalize on the growing
trend of online beverage sales.

Stability:
• Brand Reinforcement: Coca-Cola can continue to strengthen its brand image
and equity through consistent marketing and advertising campaigns,
reinforcing its position as a market leader and fostering consumer loyalty.
• Operational Efficiency: The company can focus on optimizing its supply chain
and production processes to enhance efficiency, reduce costs, and improve
overall operational performance.
• Customer Relationship Management: Coca-Cola can invest in customer
relationship management (CRM) systems and strategies to better understand
consumer preferences, personalize marketing efforts, and build long-term
relationships with customers.
• Sustainability and Corporate Social Responsibility: Emphasizing sustainable
practices and CSR initiatives can enhance the company's reputation, appeal to
socially conscious consumers, and contribute to long-term stability and brand
loyalty.

Retrenchment:
• Portfolio Rationalization: Coca-Cola can evaluate its product portfolio and
discontinue underperforming or non-strategic product lines to streamline
operations and focus resources on core offerings.
• Operational Restructuring: The company can assess its operations and
implement cost-cutting measures, such as optimizing production facilities,
streamlining distribution channels, and reducing overhead expenses, to
improve profitability.
• Market Withdrawal: Coca-Cola can consider exiting or scaling back operations
in markets where it faces significant challenges or where the potential for
growth is limited, allowing for resource reallocation to more promising
markets.
 • Asset Divestment: The company can divest non-core assets or business units
that are not aligned with its long-term strategic goals, generating capital to
reinvest in core areas and improve overall financial performance.

VI. Recommendation
The proposed recommendation suggests that Coca-Cola should position itself as an
innovative company, fostering a culture of design thinking to drive its growth. This
innovation doesn't necessarily need to be revolutionary or attention-grabbing, but
rather focus on adding fresh value to its offerings. The company already navigated the
crisis effectively, utilizing it as an opportunity to accelerate an ongoing corporate
transition. Moving forward, Coca-Cola should remain motivated by its purpose of
refreshing and making a difference, while also adopting strategies to boost revenue
and generate returns. The company should recognize that its consumers are a
valuable source of external talent and should capitalize on this by attracting new
customers and retaining existing ones, particularly by addressing concerns related to
human health and the environment. By implementing these tactical approaches,
Coca-Cola can address its weaknesses and capitalize on its opportunities.

VII. Implementation Program

Management plan
• Define the organizational structure and reporting lines within the company.
• Clearly articulate the roles, responsibilities, and decision-making authority for
each level of management.
• Develop and communicate a strategic vision and goals to guide the
organization.
• Establish key performance indicators (KPIs) and metrics to monitor progress
and ensure alignment with objectives.
• Implement effective communication channels and regular meetings to foster
collaboration and transparency.
• Provide leadership development programs and training to enhance
managerial skills and capabilities.

Marketing plan
• Conduct market research to understand consumer preferences, trends, and
competitive landscape.
• Define target markets and develop marketing strategies to reach and engage
the identified consumer segments.
• Create a compelling brand positioning and messaging that resonates with the
target audience.
 • Design marketing campaigns and initiatives across various channels (TV,
digital, social media) to promote brand awareness and drive sales.
• Monitor and analyze marketing performance metrics to evaluate the
effectiveness of campaigns and make necessary adjustments.
• Foster collaborations and partnerships with influencers, retailers, and
distributors to expand brand presence.

Financial plan
• Develop comprehensive financial forecasts, budgets, and financial targets
aligned with the company's strategic objectives.
• Monitor and manage cash flow, profitability, and working capital to ensure
financial stability and growth.
• Implement pricing strategies based on market dynamics, cost structures, and
competitive analysis.
• Evaluate investment opportunities, mergers, and acquisitions for potential
growth and diversification.
• Conduct regular financial performance reviews and analysis to identify areas
for improvement and cost optimization.
• Comply with financial regulations and reporting requirements.

Operational plan
• Enhance manufacturing capabilities to meet demand, maintain product
quality, and optimize production processes.
• Improve supply chain management to ensure timely delivery, minimize costs,
and manage inventory efficiently.
• Implement technology-driven solutions and systems to streamline operations
and increase productivity.
• Monitor and optimize key operational metrics, such as production efficiency,
product quality, and distribution effectiveness.
• Continuously identify and implement process improvements to enhance
operational efficiency and cost-effectiveness.

Human resources plan

• Develop talent acquisition strategies to attract, hire, and retain skilled
employees aligned with the company's values and goals.
• Implement comprehensive training and development programs to enhance
employee skills, knowledge, and capabilities.
• Foster a culture of diversity, inclusion, and employee engagement.
• Establish performance management systems to set clear expectations,
provide feedback, and reward high performers.
 • Promote a safe and healthy work environment, emphasizing employee well-
being and work-life balance.
• Provide opportunities for career growth and advancement, supporting
employees' professional development.

VIII. Management Lessons Learned

Management lessons learned from the strategic analysis and recommendations for
The Coca-Cola Company include the importance of adaptability and innovation in a
dynamic business environment. The company should continuously monitor and
respond to changing consumer preferences, particularly regarding health-conscious
trends. It is crucial to diversify the product portfolio to include healthier alternatives
and functional beverages to cater to evolving consumer demands. Additionally, Coca-
Cola should focus on sustainability and environmental stewardship to address
concerns related to its carbon footprint and water scarcity issues. The implementation
of effective management plans, including organizational structure, marketing
strategies, financial management, operational efficiency, and human resources
development, is essential for successful execution of the recommended strategies.
Finally, fostering a culture of collaboration, transparency, and employee engagement
will contribute to the company's long-term growth and competitiveness.

IX. Bibliography
The Coca-Cola Company. (2021). Our Company. Retrieved from [Link]
[Link]/company
The Coca-Cola Company. (2021). Our Vision. Retrieved from [Link]
[Link]/our-vision
The Coca-Cola Company. (2021). Our Mission. Retrieved from [Link]
[Link]/our-mission
The Coca-Cola Company. (2021). Our Objectives. Retrieved from [Link]
[Link]/our-objectives
The Coca-Cola Company. (2021). Our Policies. Retrieved from [Link]
[Link]/our-policies
The Coca-Cola Company. (2021). Our Brands. Retrieved from [Link]
[Link]/brands