Business Strategies
Coca Cola Company Case Analysis
Strategy Recommendation in Business
The Coca Cola Company (Case Analysis)
The Coca cola Corporation is among the most successful and well-known company in the globe. Its reputable existence is analyzed with its performance and efficient management. The company has dominated and controlled the beverage industry for many years, and has often proven its abilities in innovation, creativity and consumer satisfaction. The company has also set extremely high standards in terms of competition. In fact, its trademark is recognized with over 90% of the entire global population. Many factors contribute to the success of the organization, but also there are many hindrances. Opportunities and external threats are also evident in its positional market. After critical analysis, the following report was acquired, for the purpose of planning the company's future strategies.
Coca Cola's present strategies
The company has implemented a well-designed technological framework, to improve its efficiency and also to help in communication with the consumers through their website. The technology has also reduced the costs of the company and the organization feels more secure, in terms of data and information recording. Providing quality and well-designed products and services is priority in the company's strategy, with their products being consumed internationally and ensuring consumer satisfaction. The company also strategizes towards limiting the costs of designing their products, to cut on the production costs. The company has ensured to sustain a standard rather than customized product (Coke). Coca cola also operates a strong and efficient dealer network, making the product accessible to most of the people, including those in the interior setting. However, the company has not specialized in any direct sales.
Coca cola's annual report
The report provided the main force of the company, indicating both its strengths and weaknesses, including the opportunities and threats surrounding the company (The report is tabulated in figure 1.1).
Coca cola Company comparison with competitors (Summation)
Figure 1.1
The success factors of the two companies (Coca cola and Pepsi )
Total weight
Coca cola (Weighted score)
Pepsi (Weighted score)
2.71 (Average)
2.63 (Average)
Coca cola's strengths
The Coca cola Company's strengths were the following; well equipped with technology, advantage over the competitors due to global dominance, the Company's advertising and promotion capabilities and the good quality of their products.
Weaknesses
The major weaknesses are; the inefficiency in price competitiveness, rigid organization structure (Bad organization culture), lack of employee motivation and satisfaction and also the unfavorable market share in U.S.
Company's opportunities and threats
Opportunities
After analysis of the external factors, the total weighted score came to 2.97 with a total weight of 100%. The Company's opportunities included the following; consumer satisfaction, global development to other countries, using the trademark of the product, increasing the environment awareness by producing health drinks and preventing pollution of the environment and the advantage of weak dollar, (this would reduce product prices in the global market).
Threats
The harshest threats facing the organization included the economic recession, which was a global hindrance to most companies, high costs of the raw materials used in production, lower prices by opposing producers (incumbents especially Pepsi), and the presence of substitutes in the international markets.
The SWOT Matrix
The SWOT analysis is one way of deciding of the organization's strategies, by combining; 1) the strengths of the company to the opportunities and threats, and 2) the weaknesses to the external opportunities and threats (Bohm, 2009). Illustration is shown in figure 1.2.
Figure 1.2
Weaknesses
Strengths
(WT) Strategies
(ST) Strategies
(WO)
Strategies
(SO)
Strategies
Threats
Opportunities
The illustration suggests that the strategies should be in such a way that, the company uses its strengths to enforce its opportunities, its opportunities to counter the weaknesses, its strengths to overcome the threats, and finally its strengths and opportunities to eliminate the weaknesses and the overcome the strength.
Coca Cola's SWOT Matrix (Figure 1.3)
(WT)
Measures have to be discussed on the best move to cushion the company from recession. Better communications will also lead to the motivation of employees, and this definitely means better service to the consumers. The end result of this I n most cases is profit increase
Threats;
There is global economic recession, affecting all companies though. The cost of raw materials is much too high, leading to high production costs. Reducing of product prices by the incumbent companies like...
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