Assignment On Coca Cola Company Analysis

RUNNING HEAD: COCA-COLA COMPANY ANALYSIS
Coca-Cola Company analysis
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COCA-COLA COMPANY ANALYSIS1
Executive Summary:
Coca-Cola Company is the manufacturer of soft drinks. This paper will analysis the Coca-
Cola Company. The company analysis will help the business organisation to identify its
opportunities to flourish. The analysis will be done through open innovation, closed
innovation, the diamond model of Porter, the significance of internationalisation and
localisation, porter’s generic strategies model, organisational purpose, corporate social
responsibility and corporate profitability will be discussed in this paper to analyse the
multinational company, named Coca-Cola Company.

COCA-COLA COMPANY ANALYSIS2
Table of Contents
Introduction:...............................................................................................................................3
Question one: Open Innovation and internationalisation...........................................................3
Porter’s Diamond Model:...........................................................................................................3
Factor endowment:.................................................................................................................4
Related and supporting industries:.........................................................................................4
Demand conditions:...............................................................................................................4
Strategy, structure and rivalry:...............................................................................................5
Government:...........................................................................................................................5
Chance:...................................................................................................................................6
Question two: Internationalisation, Localisation and Competitiveness.....................................7
The demand for internationalisation:.....................................................................................7
The demand for localisation:..................................................................................................8
Porter’s generic strategies model:..........................................................................................9
Question three: Organisational purpose, profitability, and social responsibility:....................11
Organisational purpose:.......................................................................................................11
Corporate profitability:.........................................................................................................11
Corporate social responsibility:............................................................................................12
Question four: Personal reflections on learning:......................................................................13
References:...............................................................................................................................15

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COCA-COLA COMPANY ANALYSIS4
Introduction:
Coca-Cola Company, which is a USA based multinational business organisation, is the
producer, retailer and seller of non-alcoholic soft beverage. In 1886, this company was
established by pharmacist John Smith Pemberton (Coca-colacompany.com 2019).
Headquarter of this company is in Atlanta, Georgia. This paper will analyse the international
corporate strategies followed by the Coca-Cola Company. Open innovation,
internationalisation, localisation, competitiveness, organisational purpose, profitability, social
responsibility, benefits and limitations of the Coca-Cola business organisation will be
discussed in this paper.
Question one: Open Innovation and internationalisation
According to the Open Innovation model, developed by Dr Henry Chesbrough, every
firm should utilise not only internal and external paths to market but also internal ideas and
external ideas to improve their technologies (Gehani 2016). According to closed innovation
concept, every firm must control and secure every intellectual property, which is developed
internally, before the launch of a new product in the market. Every year, Coca-Cola Company
innovates and launch new products like Coca-Cola Ginger, distribution, a new program, and
equipment (The Coca-Cola Company 2019). The company launched several innovations like
mobile Coca-Cola vending machine, ice-cold Coca-Cola, Arctic coke coolers, Fuze tea, Costa
coffee, the Accelerator program.
Porter’s Diamond Model:
Porter’s Diamond Model will help the company to identify the related and supporting
industries of the Coca-Cola Company. Porter’s Diamond Model, formed by Michael Porter,
is used to analyse the external competitive environment. Through this model, Coca-Cola can

COCA-COLA COMPANY ANALYSIS5
detect the strength and competitive industries. In this model, there are four factors, which are
firm strategy and rivalry, factor input conditions, demand situations, related and supporting
industries. There are two other factors like government policy and chance, which creates its
impact on Porter’s Diamond Model (Rivas 2015).
Factor endowment:
Factor endowment is the primary determinant of production. Industrial output, trade
and policy of company are affected by the factor endowment of a country. Evaluating the
factor endowments of the USA will identify several factors. Individual specialised skills and
natural resources are the comparative advantages of this country. Technology intensive
products in net export is another factor endowment for this country. The advanced technology
of this country creates a repercussion on the production and trade of the Coca-Cola Company.
Higher import ratio, such as import, is higher than export by 30% is another factor
endowment (Rudra, Alkon and Joshi 2018).
Related and supporting industries:
For a company, Related and supporting industries are essential because it helps the
company to drive its success. The presence of a sufficient amount of suppliers and related
industries within a country creates a significant impact on the growth of the Coca-Cola
Company. This company can use skilled labour from the USA (Harding 2017). Coca-Cola
Company will properly use these skilled labours form the USA. The application of modern
technologies in the USA will be beneficial for the company (The Coca-Cola Company 2019).
Demand conditions:
Demand conditions of Porter’s Diamond Model identify the market size, demand of
the products, growth rate, and sophistication. The scale of economies, home market size and
transportation cost are connected. The producers of the Coca-Cola Company are interested in