Strategic Management of Coca Cola: Analysis of Internal and External Environment

This report analyzes the strategic management of Coca Cola, including the analysis of internal and external environment, use of models like Porter five force and Tows matrix, and the importance of vision and mission in setting strategy.

STRATEGIC MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................4
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
Strategy is known as tactics used by firm in order to achieve their organizational goals in
limited frame of time as well as in effective manner. The present report is based on Coco Cola
and the strategic decision taken by the company in order to sustain in the market area. The
study has discussed about strategic function taken by organization and the factors of macro and
micro environment has been taken into consideration while setting strategic goals. In addition to
this, it will also depict about the importance of mission and vision in role of setting strategy as
well as use of models like Porter five force as well as Tows matrix in formulating different
strategy. Lastly it will throw light on organizational culture and the models related to it.
MAIN BODY
Coco Cola is one of the famous US beverage company best known as producer of Coca-
Cola a sugary drink which was invented in 1886. The organization also manufacture and sell
non- alcoholic beverages include syrups and alcoholic beverages (Agwu, 2018). The company
headquarter is situated at US and it has expanded in various other international market. The
organization purpose is to refers the world and make a difference as well as vision of the
company is to craft the brands and choice of drinks that customer will enjoy. Although the
company aims at creating more sustainable business and better shared future.
Moreover, strategic environment of company is consisting of both external and internal
environment factor which can affect growth of the organization in positive and negative manner.
The micro environment of Coco cola is consisting of strength, weakness, opportunity and threat.
The strength of company is that it has good brand image in the market and due to that it is able to
attract large customer. It has vast global presence and unique brand identity which has allowed it
be one of the costliest brands in global market area (Kakhkhorov, 2020). In addition to this, it is
one of the most valuable companies in the world as it has various assets spread across the world
and complete the operations cost as well as profit. Moreover, due to good brand image in the
market area and stable financial position it can introduce innovative products easily. However,
one of the major weakness of the company is that it faces huge competition in the market so in
order to deal with it has launch new products and service for attracting customer. In addition to
this, product diversification is not done by the company so in order to gain higher revenue
despite of competition it has to segment the product. Furthermore, opportunity for the company

is that it can improve supply chain as it is the major reason for cost sink. Although threats like
indirect competition is challenging for the company (Konovalova and et.al., 2018). Thus, while
taking the decision regarding all these internals factors need to take into consideration so that
appropriate strategic objectives can be implemented. Furthermore, external environment factors
like political issues can affect the strategy of the company such as in time of pandemic
government has implemented policy like restriction on trade and due to that Coco Cola sales was
decreased. Moreover, the company usually operates in country with good economy rate and due
to that it is able to earn large profit as customers has high income. In addition to this, while
making the tragic decision Coco also lay emphasize on environmental factor and for that it
follows CSR activities that represent contribution of company towards development of society.
All legal rules implemented by government are being followed by Coco cola in order to avoid
intervention.
Product life cycle contains various four distinct stages such as introduction, growth,
maturity and decline. Moreover, each stage is associated with change in the products marketing
position and all these stages can be used to make effective product (Barbosa and et.al., 2020).
Along with this, in first stage marketing strategy has been used such an as rapid skimming like
launching the product at high price and high promotional level as well as low skimming
launching the product at high price and low promotional level. In stage of rapid penetration, the
company introduce the product at low price with significant promotion and slow penetration
means launching the product at minimal promotion. Furthermore, in growth strategy mainly aims
to increase profit and it helps in improving product quality, adding new product features as well
as support service to grow your market share. Thus, product cycle helps in deciding strategy as
it will help in deciding the overall strategy for marketing. This helps in making strategy related
to market modification which include entering new market segments as well as defining target
market and production modification that include pricing and differentiating other products in
market.
Furthermore, strategic management is a key area of work for leaders and manage as it
focusses on the larger part of their role in the company. Along with this, function of strategic
management involves vision and mission of firm that involves purpose running business.
Along with this, the first stage is related with planning of aims and objectives as well as action to
accomplish them hence it is planning and analysis of plan. The second stage is known as

organizing which roles and responsibility is given to the staff so that it completes their assign
task. The third function is known as leading which motivating people so that it contributes in
success of company and solve the problem easily. Moreover, fourth function is known as
controlling that include budget and expense as well as to correct the behavior of employees to
make sure that work has been done in right manner (Bindr, Parameswar and Dhir, 2019) The last
function is known as coordination in which manage of the company align the goals of individual
efforts to company objectives.
Along with this, the importance of vision and mission is company because it helps in
defining the purpose of the form and creates the sense of belongings among employees. Thus, it
motivates them to work hard and contribute in success. The vision and mission of the company
helps in building appropriate strategic objectives as they are link with it (Anatolievna and
Anatolievna, 2018). Moreover, it provides purpose and goals to the strategy which is one of the
most important part of strategic objectives. It allows the company to outline their customer
range and what they find important. In addition to this, Mission allows in aligning people and
firm that helps in deciding strategic plan. Along with this, the mission to refresh the world to
inspire moments of optimism and happiness to create value and make a difference. The company
vision is to inspire each other to be the best by providing a great place to work.
Moreover, porter five force has been used in order to make appropriate strategy for the
company as it identify the competition present in the market which allow the organization in
making appropriate strategy in order to deal with the competition. Along with this, it also helps
in identifying the alternative available in the market area which helps the company to come up
with innovative idea to make product and service that can attract customer. This strategic tool
helps in knowing the barging power of supplier that allow organization in selecting the right
supplier for the company and it also helps in finding ways to reduce their power (Makadok,
Burton and Barney, 2018). In addition to this, it also allows company to know about customer
purchasing power which helps organization in setting the price according to their needs and
current market trend. Thus, it gives details about external market area condition which helps the
organization in making the right strategy for increasing the sales of firm in effective way. In
addition to this, TWOS Metrix will help the company in knowing about internal factor which can
affect the growth of the organization. However, if company is able to know their strength then it
will be able to set the goal effectively and expand the organization. In addition to this, the

weakness helps the company in making use of right strategy in order to mitigate them as well as
to overcome them in efficient manner. Moreover, if organization know about their opportunity
then it will be able to adopt the right business plan and align the goal with it.
The first step in order to implement strategy is known as defining goals that need to be
accomplish by the organization. However, after setting the goals it is important for conducting
proper research in order to analysis the key trends of market as well as threats which can hinder
business growth (Barney, 2020). In addition to this, another step is to map out risk so that threats
can be known by organization. The task need to be assigned to the teams so that main aim of
the company can be reached and at last allocate helpful resources so that functions related to
strategic objectives can be done smoothly. Moreover, organizational behavior is known as
collection of values, expectation and practice that guide and inform the actions of all team
members. It helps in deciding the proper way to behave within organization and it allow the
employees to follow beliefs set by leaders and communicate through various methods.
Along with this, handy’s organizational culture model is consist of four
types of culture such as power that are in hand in few people of the company and they the
decision (Keding, 2021). The second type is known as task culture in which teams are formed
to achieve targets and solve critical problem. Although company in which employees are
given more importance then it is known as person culture. However, organization in which
roles and responsibilities has been delegated according to their position and qualification is
known as role culture.
Moreover, Bold Strokes are decision that is generally made by top a management and
implementation of such decision are done quickly as it can harm growth of firm if not done
in limited time. This type of decision is involved in large scale product strategy and require
basic research to determine the state of market. Whereas, long marches decision takes time and
it involve many people coordination in order to produce new elements to be successful.
Although long march is define as the processes used for implementing an organization
strategic objective and in this point aligning the company long term goals as well as
developing actions plans in line with strategic plan.
Although for overcoming resistance it is important for company to communicate the
change and accepts it so that risk can be control and it will help people to rationalize the

change. Along with this, another step is known as participation as collaborative effort helps
people to connect with each other and identify potential issues (Fuertes and et.al., 2020). The
third step is known as support that helps in learning new skill which is important to be
developed so that change can be handle properly. Moreover, the fourth step is setting challenges
as it will motivate team to continue with maximum effort. Resolving conflicts quickly and
effectively helps in building open environment within the company that builds in creating
trust among employees. In addition to this, the leader of the organization has to show passion
so that it can meet up with the change quickly (Alieinykov and et.al., 2019). Innovation and
creativity is also required for discovering solution to unfolding problems and to become part of
the change process.
Along with this, success factor is to shared change purpose and effective change leadership
as well as strong personal connection need to be manage properly in order to calculate success
of strategic objectives.
CONCLUSION
From the above report it has been conclude that setting strategy is very much important for the
organization in order to sustain in competitive market. Along with this, the present report has
conclude on Coco Cola and tactics used by organization in order to bit high competition as
well as to increase their growth.

REFERENCES
Books and journals
Agwu, M. E., 2018. Analysis of the impact of strategic management on the business performance
of SMEs in Nigeria. Academy of Strategic Management Journal. 17(1). pp.1-20.
Alieinykov, I. and et.al., 2019. Development of a method of fuzzy evaluation of information and
analytical support of strategic management. Eastern-European Journal of Enterprise
Technologies. 6(2). pp.16-27.
Anatolievna, A. L. and Anatolievna, S. I., 2018. Strategic management of competitive
agribusiness organizations model. International Journal of Advanced Studies. 8(2). pp.9-21.
Barbosa, M. and et.al., 2020. Sustainable strategic management (GES): Sustainability in small
business. Journal of Cleaner Production. 258. p.120880.
Barney, J. B., 2020. Measuring firm performance in a way that is consistent with strategic
management theory. Academy of Management Discoveries, 6(1), pp.5-7.
Bindra, S., Parameswar, N. and Dhir, S., 2019. Strategic management: The evolution of the
field. Strategic Change. 28(6). pp.469-478.
Fuertes, G. and et.al., 2020. Conceptual framework for the strategic management: a literature
review—descriptive. Journal of Engineering, 2020.
Kakhkhorov, O. S., 2020. The theoretical basis of strategic management of higher education
system. Scientific reports of Bukhara State University. 3(4). pp.290-302.
Keding, C., 2021. Understanding the interplay of artificial intelligence and strategic
management: four decades of research in review. Management Review Quarterly. 71(1). pp.91-
134.
Konovalova, E. E. and et.al., 2018. Forming approaches to strategic management and
development of tourism and hospitality industry in the regions. Journal of Environmental
Management & Tourism. 9(2 (26)). pp.241-247.
Makadok, R., Burton, R. and Barney, J., 2018. A practical guide for making theory contributions
in strategic management. Strategic Management Journal. 39(6). pp.1530-1545.
Online references
A, B., 2018. [Online]. Available through <>
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