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A Report on

Strategic Planning
Of
COCA COLA

Subject: Strategic Management

[MBA – Evening Program]

Faculty: Sir Yousuf

Prepared & Presented by:

Rohail Riaz (51515)


Strategic Planning
Table of Contents

1- EXECUTIVE SUMMARY ................................................................................... 3


2- HISTORY OF COCA COLA ................................................................................ 4

3- BRANDS OF COCA COLA ................................................................................. 7

3.1- Energy Drinks ................................................................................................... 7


3.2- Juices/Juice Drinks ........................................................................................... 7
3.3- Soft Drinks ........................................................................................................ 8
3.5- Tea and Coffee .................................................................................................. 8
3.6 Water ..................................................................................................................8
3.7- Other Drinks .....................................................................................................9
4- CONSUMER CHOICE AT A GLANCE ...........................................................10
5- DIFFERENT PLAYERS IN THE SOFT DRINKS MARKET ........................ 11
6- OUR MISSION .....................................................................................................11
7- OUR VISION ....................................................................................................... 11
8- IMPROVED MISSION STATEMENT ............................................................. 12
9- IMPROVED VISION STATEMENT .................................................................12
10- CURRENT ORGANIZATIONAL CHART .................................................... 14
11- E-COMMERCE .................................................................................................. 14
12- VALUE OF THE FIRM .................................................................................... 15
13- KEY INTERNAL FACTORS ...........................................................................17
14- KEY EXTERNAL FACTOR ...........................................................................18
15- COMPETITORS .................................................................................................19
16- SWOT ANALYSIS ..............................................................................................20
17- BCG MATRIX .................................................................................................... 22
18- STRATEGIC GOALS ........................................................................................ 23
19- TACTICAL GOALS ......................................................................................... 24

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20- OPERATIONAL GOALS ..................................................................................24
21- CONCLUSION ................................................................................................... 25

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1- EXECUTIVE SUMMARY
Coca-Cola, the product that has given the world its best-known taste was born in Atlanta,
Georgia, on May 8, 1886. Coca-Cola Company is the world’s leading manufacturer, marketer
and distributor of non-alcoholic beverage concentrates and syrups, used to produce nearly 400
beverage brands. It sells beverage concentrates and syrups to bottling and canning operators,
distributors, fountain retailers and fountain wholesalers. Coca-Cola was first introduced by John
Syth Pemberton, a pharmacist, in the year 1886 inAtlanta, Georgia when he concocted caramel-
colored syrup in a threelegged brass kettle in his backyard. 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. Carbonated water was teamed with the new syrup, whether by
accident or otherwise, producing a drink that was proclaimed “delicious and refreshing”, a theme
that continues to echo today wherever Coca-Cola is enjoyed. Coca-Cola originated as a soda
fountain beverage in 1886 selling for five cents a glass. Early growth was impressive, but it was
only when a strong bottling system developed that Coca-Cola became the world-famous brand it
is today. Coca- Cola was the leading soft drink brand in India until 1977, when it left rather than
reveal its formula to the Government and reduce its equity stake as required under the Foreign
Regulation Act (FERA) which governed the operations of foreign companies in India. In the new
liberalized and deregulated environment in 1993, Coca-Cola made its re-entry into India through
its 100% owned subsidiary, HCCBPL, the Indian bottling arm of the Coca-Cola Company.

The main objective of this study lies in understanding the organization and studying and
understanding the consumers’ perception and opinion about the latest product, Minute Maid
Pulpy Orange, introducedinto India, by the Coca-Cola Company. A consumer sampling involving
5.5 lakh people was conducted in a span of 30 days across major cities in order to give the
product the required marketing push and to recognize the prospective consumers and their
opinion in order to develop and market the product in a better way in the near future. The
methodology used in studying and understanding the perceived views of consumers towards the
product was ‘SAMPLING’. The findings of the activity have been drawn out in form of graphs
and suggestions have been offered there from.

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2- HISTORY OF COCA COLA

Coca-Cola® originated as a soda fountain beverage in 1886 selling for five cents a glass. Early
growth was impressive, but it was only when a strong bottling system developed that Coca-Cola
became the world-famous brand it is today.

1894 – A modest start for a Bold Idea


In a candy store in Vicksburg, Mississippi, brisk sales of the new fountain beverage called Coca-
Cola impressed the store's owner, Joseph A. Biedenharn. He began bottling Coca-Cola to sell,
using a common glass bottle called a Hutchinson.

Biedenharn sent a case to Asa Griggs Candler, who owned the Company. Candler thanked him
but took no action. One of his nephews already had urged that Coca-Cola be bottled, but Candler
focused on fountain sales.
1899 The first bottling agreement
Two young attorneys from Chattanooga, Tennessee believed they could
build a business around bottling Coca-Cola. In a meeting with Candler,
Benjamin F. Thomas and Joseph B. Whitehead obtained exclusive
rights to bottle Coca-Cola across most of the United States (specifically
excluding Vicksburg) -- for the sum of one dollar. A third Chattanooga
lawyer, John T. Lupton, soon joined their venture.
1900-1909 … Rapid growth
The three pioneer bottlers divided the country into territories and sold bottling rights to local
entrepreneurs. Their efforts were boosted by major progress in bottling technology, which
improved efficiency and product quality. By 1909, nearly 400 Coca-Cola bottling plants were
operating, most of them family-owned businesses. Some were open only during hot-weather
months when demand was high.
1916 … Birth of the contour bottle
Bottlers worried that the straight-sided bottle for Coca- Cola
was easily confused with imitators. A group representing the
Company and bottlers asked glass manufacturers to offer
ideas for a distinctive bottle. A design from the Root
Glass Company of Terre Haute, Indiana won enthusiastic
approval in 1915 and was introduced in 1916. The
contour bottle became one of the few packages ever
granted trademark status by the U.S. Patent Office.
Today, it's one of the most recognized icons in the world - even in the
dark!

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1920s … Bottling overtakes fountain sales
As the 1920s dawned, more than 1,000 Coca-Cola bottlers were operating in the U.S. Their ideas
and zeal fueled steady growth. Six-bottle cartons were a huge hit after their 1923 introduction. A
few years later, open-top metal coolers became the forerunners of automated vending machines.
By the end of the 1920s, bottle sales of Coca-Cola exceeded fountain sales.
1920s and 30s … International expansion
Led by longtime Company leader Robert W. Woodruff, chief
executive officer and chairman of the Board, the Company began a
major push to establish bottling operations outside the U.S. Plants were
opened in France, Guatemala, Honduras, Mexico, Belgium, Italy, Peru, Spain, Australia and
South Africa. By the time World War II began, Coca-Cola was being bottled in 44 countries.
1940s … Post-war growth

During the war, 64 bottling plants were set up around the world to supply
the troops. This followed an urgent request for bottling equipment and
materials from General Eisenhower's base in North Africa. Many of these
war-time plants were later converted to civilian use, permanently
enlarging the bottling system and accelerating the growth of the
Company's worldwide business.
1950s … Packaging innovations

For the first time, consumers had choices of Coca-Cola package size
and type -- the traditional 6.5-ounce contour bottle, or larger
servings including 10-, 12- and 26-ounce versions. Cans were also
introduced, becoming generally available in 1960.
1960s … New brands introduced
Following Fanta® in the 1950s, Sprite®, Minute Maid®, Fresca® and TaB® joined brand Coca-
Cola in the 1960s. Mr. Pibb® and Mello Yello® were added in the 1970s. The 1980s brought diet
Coke® and Cherry Coke®, followed by POWERADE® and DASANI® in the 1990s. Today
hundreds of other brands are offered to meet consumer preferences in local markets around the
world.
1970s and 80s … Consolidation to serve customers
As technology led to a global economy, the retailers who sold Coca-Cola merged and evolved
into international mega-chains. Such customers required a new approach. In response, many
small and medium-size bottlers consolidated to better serve giant international customers. The
Company encouraged and invested in a number of bottler consolidations to assure that its largest
bottling partners would have capacity to lead the system in working with global retailers.

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1990s … New and growing markets
Political and economic changes opened vast markets that were closed or underdeveloped for
decades. After the fall of the Berlin Wall, the Company invested heavily to build plants in
Eastern Europe. And as the century closed, more than $1.5 billion was committed to new bottling
facilities in Africa.
21st Century
The Coca-Cola bottling system grew up with roots deeply planted in local communities. This
heritage serves the Company well today as people seek brands that honor local identity and the
distinctiveness of local markets. As was true a century ago, strong locally based relationships
between Coca-Cola bottlers, customers and communities are the foundation on which the entire
business grows.

3- BRANDS OF COCA COLA

Coca-Cola Zero® has been one of the most successful product launch hes in
Coca Cola’s history. In 2007, Coca Cola’s sold nearly 450 million cases
globally. Put into perspective, that's roughly the same size as Coca Cola’s total
business in the Philippines, one of our top 15 markets. As of September 2008,
Coca-Cola Zero is available in more than 100 countries.

3.1- Energy Drinks

For those with a high-intensity approach to life,


Coca Cola’s brands of Energy Drinks
contain ingredients such as ginseng
extract, guarana extract, caffeine and B
vitamins.

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3.2- Juices/Juice Drinks
We bring innovation to the goodness of juice in
Coca Cola’s more than 20 juice and juice
drink brands, offering both adults and
children nutritious, refreshing and flavorful
beverages.

3.3- Soft Drinks

Coca Cola’s dozens of soft drink brands provide flavor and refreshment in a variety of choices.
From the original Coca-Cola to most recent introductions, soft drinks from The Coca-Cola
Company are both icons and innovators in the beverage industry.

3.4- Sports Drinks

Carbohydrates, fluids, and electrolytes team


together in Coca Cola’s Sports Drinks,
providing rapid hydration and terrific taste for
fitness-seekers at any level

3.5- Tea and Coffee

Bottled and canned teas and coffees


provide consumers' favorite drinks in
convenient take-anywhere packaging,
satisfying both traditional tea drinkers and
today's growing coffee culture.

3.6 Water

Smooth and essential, our Waters and Water


Beverages offer hydration in its purest form.

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3.7- Other Drinks

So much more than soft drinks. Coca


Cola’s brands also include milk products, soup,
and more so you can choose a Coca Cola
Company product anytime, anywhere for
nutrition, refreshment or other needs.

4- CONSUMER CHOICE AT A GLANCE

Coca-Cola Mainly preferred by the Youngster & Kids.

Thums-Up Youngster.

Limca Common Drink.

Fanta Basically Preferred by Ladies and Kids.

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Maaza Also Ladies and Kids.

Sprite Not clearly defines.

Kinley Soda Mostly those who consume liquor.

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5- DIFFERENT PLAYERS IN THE SOFT DRINKS MARKET

PEPSI

Caleb Brandhum, a North Caroline Pharmacist, structure Pepsi Cola In2 the 1890’s as cure of
dyspepsia (indigestion). In 1902, Bradhum applied for a trade mark, issued ninety seven share of
stock and began selling Pepsi syrup in earnest. In his first year of business he spend $1900 on
advertising a huge sum that he sold only 8000 gallons of syrup. In 1905 Bradhum built Pepsi’s
bottling plant. By 1907 he was selling 10,000 gallons a year, two years later, he hired a New
York advertising agency. After passing through many troubles for some period now Pepsi is a
market leader in international arence and is available in 187 Nations throughout the world.

CADBURY SCHWEPPES

Cadbury Schweppes are joined force of Cadbury found in 1824 of U.K. and Schweppes of
Ireland founded in 1783. Cadbury Schweppes is unified bussing which manages the
relations his with over 240 franchised bottling operation on Zambia and Zimbabwe. Cadbury
Schweppes has fottlery and partnership operations in 14 countries around the world.
6- OUR MISSION:
Our mission declares our purpose as a company. It serves as the standard against which we
weigh our actions and decisions. It is the foundation of our Manifesto.

(1) To refresh the world in body, mind and spirit.


(2) To inspire moments of optimism through our brands and our actions.
(3) To create value and make a difference everywhere we engage.

7- OUR VISION:
Our vision guides every aspect of our business by describing what we need to accomplish in
order to continue achieving sustainable growth.

People: Being a great place to work where people are inspired to be the best they can be.

Portfolio: Bringing to the world a portfolio of quality beverage brands that anticipate and satisfy
people's desires and needs.

Partners: Nurturing a winning network of customers and suppliers, together we create mutual,
enduring value.

Planet: Being a responsible citizen that makes a difference by helping build and support
sustainable communities.

Profit: Maximizing long-term return to shareowners while being mindful of our overall
responsibilities.

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8- IMPROVED MISSION STATEMENT:


(1) At Coca Cola we're committed to achieving business and financial success while leaving
a positive imprint on society – delivering what we call Performance with Purpose.
(2) Our mission is to be the world's premier consumer Products Company focused on
convenient foods and beverages. We seek to produce financial rewards to in8vestors as
we provide opportunities for growth and enrichment to our employees, our business
partners and the communities in which we operate. And in everything we do, we strive
for honesty, fairness and integrity.

9- IMPROVED VISION STATEMENT:


(1) Coca cola Co responsibility is to continually improve all aspects of the world in which
we operate – environment, social, economic – creating a better tomorrow than today."
(2) Our vision is put into action through programs and a focus on environmental stewardship,
activities to benefit society, and a commitment to build shareholder value by making
Coca cola Co a truly sustainable company.

Why it is improved:

There is It is our vision to be the best and leading provider of food and beverage products
in Pakistan, to facilitate the people of Pakistan and we emphasis on consumer more rather
than competitors we among the top ten food and beverage companies in the world, by
continually challenging present conventions and always staying a step ahead of the
competition.

It is our mission to be the number one food and Beverage Company in Pakistan by
providing our customers with the highest product quality in terms of taste, experience,
and satisfaction. We will ensure this through an unwavering dedication to the continuous
development of our products and processes ensuring that we remain best in class. We
will strive to hire the most competent and dedicated employees whose work ethic will set
the standard in the industry. We will be paymasters, as we strongly believe that human
resource is the only asset that truly appreciates over time. We will also be a responsible
social corporate citizen, and strive to enhance the quality of life in the markets we serve.

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Comments on vision and mission (in terms of how they support the strategies)

The vision statement of our company supports the existing strategies that is (generic
strategy) that Coca Cola needs to pursue is that of differentiation. In their current vision
and mission statements, the company says it aims to be a low cost leader, yet through our
thorough analysis of the strategic direction the company needs to adopt a generic strategy
of differentiation. This will allow Coca cola to do three things;
1. Charge a premium 2. Increase unit sales 3. Gain buyer loyalty However, at the
expense of sounding simplistic, it is necessary that the company communicate its
differentiation to its customers, otherwise these three advantages will not avail
themselves. Initially Coca cola will need to adopt a focused differentiation approach,
which means that they should selectively choose which markets will profit them the most
and then target only those markets until such provisions are in place from where the
company is able to expand its target base. After which they should opt for a broad
differentiation generic strategy.

With the market just turning the bend to ‘saturation’, it is entering a phase of intense competition
with all major players diversifying their product lines, ranges and even businesses into a versatile
range of products to put in place more infantry on the battle ground to use to their advantage in
this war of brands. Therefore, we believe that the current strategic objective of Coca cola should
be to consolidate its existing brand, Coca cola through extensive strategic market research and
consumer insights to be able to home in on the correct target market like a precision targeting
missile rather than as an Anti-aircraft gun

MAP: Showing Workforce [71,000 in

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12- VALUE OF THE FIRM

Financial and Value Review

Defensive:

1) Size of firm
Net worth of $16.92billion

2) Financial condition
with a weighted current ratio of 0.94 Coke falls below the required 2, therefore they fail this
test.

3) Earnings stability
there has been positive net income for the past ten years and they 8pass this test.

4) Earnings growth
Earnings are greater than five years ago. Pass.

Overall
we would not suggest Coke being placed in the defensive investor’s portfolio at this time.

Opinion:
Seeing that currently Coke is trading at a much higher price than our internal valuation we
would be skeptical to purchase this security at this time. However, Coke is an excellent firm
with great management, products, dividend history, and earnings. This stock we would place
on our review list and periodically watch the share price to see if it dips and falls more in line
with what we would be comfortable paying.

Strengths

World’s leading brand Coca-Cola has strong brand recognition across the globe. The company
has a leading brand value and a strong brand portfolio. Coca-Cola is one of the leading brands
in their top 100 global brands ranking in 2006.8The value of the Coca-Cola was $67,000
million in 2006. Coca-Cola ranks well ahead of its close competitor Pepsi which has a ranking
of 22 having a brand value of $12,690 million Furthermore; Coca-Cola owns a large portfolio
of product brands. The compan8y owns four of the top five soft drink brands in the world:
Coca-Cola, Diet Coke, Sprite and Fanta. Strong brands allow the company to introduce brand
extensions such as Vanilla Coke, Cherry Coke and Coke with Lemon. Over the years, the
company has made large investments in brand promotions. Consequently, Coca-cola is one of
the best recognized global brands. The company’s strong brand value facilitates customer recall
and allows Coca-Cola to penetrate new m2arkets and consolidate existing ones. Coca-Cola
Company, The large scale of operations with revenues in excess of $24 billion Coca-Cola has a
large scale of operation. Coca-Cola is the largest manufacturer, distributor and marketer of

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nonalcoholic beverage concentrates and syrups in the world. Coco-Cola is selling trademarked
beverage products since the year 1886 in the US. The company currently sells its products in
more than 200 countries. Of the approximately 52 billion beverage servings of all types
consumed worldwide every day, be8verages bearing trademarks owned by or licensed to Coca-
Cola account for more than 1.4 billion. The company’s operations are supported by a strong
infrastructure across the world.

Coca-Cola owns and operates 32 principal beverage concentrates and/or syrup manufacturing
plants located throughout the world. In addition, it owns or has interest in 37 operations with
95 principal beverage bottling and canning plants located outside the US. The company also
owns bottled water production and still beverage facilities as well as a facility that
manufactures juice concentrates. The company’s large scale of operation allows it to feed
upcoming markets with relative ease and enhances its revenue generation capacity. Robust
revenue growth in three segments Coca-cola’s revenues recorded a double digit growth, in
three operating segments. These three segments are Latin America, ‘East, South Asia, and
Pacific Rim’ and Bottling investments. Revenues from Latin America grew by 20.4% during
fiscal 2006, over 2005. During the same period, revenues from ‘East, South Asia, and Pacific
Rim’ grew by 10.6% while revenues from the bottling investments segment by 19.9%.
Together, the three segments of Latin America, ‘East, South Asia, and Pacific Rim’ and bottling
investments, accounted for 34.8% of total revenues during fiscal 2006. Robust revenues growth
rates in these segments contributed to top-line growth for Coca-Cola during 2006.

Weaknesses

Negative publicity, Company received negative publicity in India during September 2006.The
Company was accused by the Center for Science and Environment (CSE) of selling products
containing pesticide residues. Coca-Cola products sold in and around the Indian national
capital region contained a hazardous pesticide residue. These pesticides included chemicals
which could cause cancers, damage the nervous and reproductive systems and reduce bone
mineral density. Such negative publicity could adversely impact the company’s brand image
and the demand for Coca-Cola products. This could also have an adverse impact on the
company’s growth prospects in the international markets. Sluggish performance in North
America Coca-Cola’s performance in North America was far from robust. North America is
Coca-Cola’s core market generating about 30% of total revenues during fiscal 2006. Therefore,
a strong performance in North America is important for the company.

Summary in points:

Strengths:

 Leading brand value and a strong brand portfolio


 Coca-Cola, Diet Coke, Sprite and Fanta

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 Large investments in brand promotions
 sells its products in more than 200 countries
 Company also owns bottled water production and still beverage facilities as well as a
facility that manufactures juice concentrates.
 These three segments are Latin America, ‘East, South Asia, and Pacific Rim’ and
Bottling investments
 Return on total assets increases over the period consistently 2005, 06, 07 15.47%,
16.55%, and 16.95% respectively.

Weaknesses:

 Negative publicity in India


 Inventory turnover decreased by 13.29%
 Return on equity decreased by 40.50%
 Sluggish performance in North America Coca-Cola’s performance in North America
was far from robust
 Collection form debtors decreased by 15.68%

13- KEY INTERNAL FACTORS Weight Rating


weight Score
Strengths

Average customer purchases increased by 18.54% 0.11 2 0.22

Employee moral 0.05 3 0.15

Technical support and research efficiency 0.08 1 0.08

Newspaper advertisement expenditures increased 0.09 4 0.36

Revenues from other segments 0.14 4 0.56

Debt to total asset ratio decline 0.05 2 0.10

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Locations in the world 0.15 4 0.20

Weaknesses

Inventory turnover decreased by 13.29% 0.10 3 0.30

Return on equity down decreased 80.11 1 0.11

Website 0.04 2 0.08

Supplier time delivery 0.08 1 0.08

Total 1.00 2.24

Ranked 1 to 4. Low to High respectively.

Current Evaluation: 2.24

Less than average of 2.50

Need efficiency in the Management, Marketing, finance, MIS, R & D, and other
operations..

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14- KEY EXTERNAL FACTOR

S.
Factor Weight Rate Score
No.

Opportunities
1 Entering into snacks business (Pepsi earns 60% from snacks) 0.100 3.50 0.35
2 Expansion by taking over Cadbury division or product line 0.050 4.00 0.20
3 Expansion by introducing new ready-to-drink products (tea, coffee, 0.050 4.00 0.20
etc.)
4 Entering into or introducing new sports events (e.g. Formula I) to 0.025 3.50 0.09
introduce energy drinks
5 Strong financial and assets support available worldwide to take 0.015 1.50 0.02
financing for expansion
6 Introduce soft drink with focus of "healthy soft drink" - eliminate 0.075 3.50 0.26
obesity concept
7 Diversification of bottling business to other industries like 0.050 2.50 0.13
pharmaceuticals
8 Link with computer internet/network/cell gaming business to focus on 0.025 2.50 0.06
youth worldwide - to take advantage of technology
9 0.025 3.00 0.08
10 0.015 3.00 0.05
Opportunities - Total 0.430 1.43
11 Hurting products containing sugar & sugar-substitute based drinks 0.100 4.00 0.40
(trend towards more healthy eating & drinking)
12 Increase in raw material costs 0.075 3.50 0.26
13 Government policies may hurdle in expansion 0.075 4.00 0.30
14 Government policies - for disclosure of health warning 0.100 4.00
15 Ban in public schools due to obesity issues 0.075 3.50
16 Lack in snacks business 0.075 3.50 0.26
17 Lack of share in homeland market (refer Exhibit 8) - room for other 0.015 2.00 0.03
brands
18 Availability of purified water (being main component) in different parts 0.025 3.50 0.09
of the world
19 Competitor may access unreached parts of the world prior to Coca Cola 0.015 3.50 0.05

20 Salesman not equipped with sales ordering devices 0.015 2.00 0.03
Threats - Total 0.570 1.43

Grand Total 1.000 2.86

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15- COMPETITORS
 Cadbury Schweppes plc

 Nestle S.A.

 PepsiCo, Inc.

 Unilever

 Procter & Gamble

 Cott Corporation

 Kraft Foods, Inc.

 National Grape Cooperative

 National Beverage Corp.

 Quilmes Industrial S.A.

 Quinenco SA

 Yeo Hiap Seng Limited

 Wimm-Bill-Dann Foods OJSC

 Co-Ro Food A/S

 Rynkeby Foods A/S

 Spadel SA

 Delta Holding S.A.

 Spendrups Bryggeri AB

 Pago

 Hermann Pfanner Getraenke GmbH

 J Garcia Carrion

 Vitasoy International Holding Ltd

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16- SWOT ANALYSIS
SWOT Analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses,
Opportunities, and Threats inside a company, project, or a business venture. It involves
identifying the internal and external factors that are favorable/unfavorable for business to
succeed

SWOT ANALYSIS FOR COCA COLA COMPANY

STRENGTHS

1. Brand equity/image & recognition


2. Product distribution and worldwide network
3. Solid financial performance
4. One of the world's most recognized brand.
5. Product diversification (water, juices, soft drinks, sport drinks, etc)
6. Co-operate identity.
7. Innovation

WEAKNESSES

1. Credit rating
2. Customer concentration, particularly in the US (Wal-Mart accounts for more than 10%
of Coca Cola's business in the US)
3. A lot of loyal Pepsi customers are not enough loyal Coca Cola customers
4. Does not enjoy the number one position in India, Pakistan.

OPPURTUNITIES

1. Possible growing demand.


2. Expansion – Reaching all segments.
3. Globalization
4. Catering to Health Consciousness of People
5. Bottled water growth
6. Acquisitions of smaller players.

THREATS

1. Health Drinks – Fruit Juice Companies


2. Key competitors (Pepsi, etc)

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3. Commodity prices growth
4. Image perception in certain parts of the world.
5. Smaller, more nimble operators/players

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17- BCG MATRIX

Percent Perce
Percent Percent Market Grow
Sr# Division Revenues Revenues Profits Profits Value Rat
1 Africa $1,140 4.48% $227.75 4.00% 5
East South
2 Africa & Pacific $872 3.43% $174.42 5.00% 10
Rim
European
3 $4,364 17.16% $871.17 18.66% 45
Union
Latin
4 $2,616 10.29% $522.27 11.20% 35
America
North
5 $7,029 27.64% $1,567.72 25.85% 60
America
North Asia,
6 Eurasia & $4,123 16.21% $823.35 15.05% 40
Middle East
Bottling
7 $5,198 20.44% $874.42 10.48% 20
Investment
8 Corporate $93 0.37% $18.88 9.76% 15
Total -- $25,435 100.00% $5,079.98 100.00% -

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BCG MATRIX

From our Strategic Alternatives evaluation, we see that it is more attractive to outsource our
distribution networks rather than launch a diet line of products. This is in line with their current
strategic direction, and will allow Pakola to fortify their market reach before introducing new
products that will be harder to push through the distribution channels.

18 -STRATEGIC GOALS:

The strategic goals are considered when company is thinking of the long-term objectives but at
coca cola strategic objectives and goals are set up for three years. These strategic goals are
decide by the top management with consultation by the parent company head quartered at
Singapore. However, they are reviewed every year in the annual meeting to make sure that they
are in line with the changing environment. They are:
 To continue to be an organization providing the quality products to the valuable
customers.
 To select and retain the professional people for the organization.
 To project an outstanding corporate image.
 To satisfy the customer through extra ordinary service and an excellent service along
with the complete tactical and operational support.

19-TACTICAL GOALS:

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The top management of the company on an annual basis devises these goals together with the
consultation of the lower level employees. Then each departmental director is given these
annual tasks that then subdivide it on the quarterly or monthly basis to have a proper check to
ensure that these objectives are achieved, mainly through marketing, is the job of the director
of each division. For this year, these goals are:

 To increase the revenues by 20% as compared to last year.


 To increase the total retail customers by around 10%.
 To increase the market share by 5%.
 To reactivate the discontinued customers by 30%.

20 - OPERATIONAL GOALS:
Operational goals are decided by the top management in consultation with the lower level
employees. They are following the concept of management by objectives (MBO). Each
employee is assigned its goals and is told what is expected of him and then he is evaluated on
the basis of certain rules and regulations followed evenly by the company.

For example: a sales man is given following tasks, duties and certain targets: Each salesman
has to oversee around 100-125 outlets. The frequency of visits to each outlet depends upon the
sales of that particular outlet. Normally, a salesman has to visit a single outlet thrice a week i.e.
every alternate day. This means that a salesman visits at least 20-30 outlets per day.

The salesman has three basic functions to perform.

 To find new customers,


 To retain existing ones,
 To bring back the discontinued accounts.

Each salesman has to bring in at least three new accounts every month. These may either be
new customers or the reactivation of the discontinued accounts.

Sales manager is made responsible for the performance and achievement of operational goals
and is assigned to set certain milestones for the salesman so as to give him proper feedback,
which definitely helps the salesman achievement of the above-mentioned goals.

21- CONCLUSION:

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Strategic Planning
The Coca Cola Company has a very rich history and spread over the world, the study in this
report specially the particular SPACE matrix tells us that Coca Cola Company should pursue
an aggressive strategy. Coca Cola Company has a strong competitive position in the market
with rapid growth. It needs to use its internal strengths to develop a market penetration and
market development strategy. This includes focus on Water and Juices products, and catering to
health consciousness of people through introduction of different coke flavor and maintaining
basic coke flavor. Further company should integrate with other companies, acquisition of
potential competitor businesses, innovation in branding and aggressive marketing strategy can
bring long term profitability.

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