Business Strategy : Coca-Cola

BUSINESS STRATEGY

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
PESTLE Analysis........................................................................................................................1
SWOT Analysis..........................................................................................................................4
Capabilities analysis....................................................................................................................6
Competitiveness of Market through Porter's Five Forces...........................................................7
TASK 2............................................................................................................................................9
Evaluation of various types of strategic directions.....................................................................9
Justification and recommendation on the strategic direction....................................................10
Strategic Management plan for Coco Cola...............................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business strategy is a term which can be defined as a set of strategic statements that
provides a direction to an organisation in achieving its strategic goals and objectives. In other
words, business strategy is the course of action or action plans which the managements use for
gaining a competitive position in the market (Grant, 2016). The present report is about Coca-Cola
Corporation, an American global company founded in 1886. It manufactures and sells carbonated
soft drinks in the global market. It is headquartered in Atlanta, Georgia, United States. The
corporation is a publicly traded company that is listed on NYSE, DJIA, S&P 100 and S&P 500
component.
The study is going to discuss the impact of macro environmental factors on the company,
an analysis of company's capabilities. A SWOT analysis will be conducted in the project report
for assessing internal strengths and weaknesses of the organisation along with the determination
of available opportunities and threats in the international markets. Market's competitiveness will
be analysed under the report by applying Porter's five forces model which will entail the threat of
various forces of the market. Further, an evaluation will be done of different types of strategic
direction and preparation of a strategic management plan for the company.
TASK 1
PESTLE Analysis
PESTLE analysis is a tool or technique which is used for analysing the impact of macro
environmental (external) factors that have the potential of affecting the business and functioning
of Coca-Cola.
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Illustration 1: PESTLE ANALYSIS
(Source : Strategic analysis: Layers of business environment, 2015)
Political factors : One of the political factor involve the trade regulations and trade &
manufacturing restrictions and the products of the company are continuously under the scan of
Food and Drug Administration (FDA). Since the organisation offers non-alcoholic beverages, it
comes under the regulation of this federal agency of the country. It has to comply all the rules
and standards set by it for conducting its business peacefully. Non adherence of the government
regulations may affect the company's operations adversely and might lead to serious penalties
and ban on its products.
Another political factor is stability of political conditions in the international
markets in which it has its operations. Being a global company, political conditions say for
example, in UK might affect the sales and revenue due to the political events like BREXIT the
country is facing recently. UK after EU would make its own trade laws for domestic and
international firms doing business in the state. If the country formulates more favourable laws for
the internal and global companies for encouraging FDIs, it will benefit the Coca-Cola and if the
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