Coca Cola Strategic Analysis

This paper explains some of the various tools used by different companies to analyze their strategies. It discusses the advantages and disadvantages of each tool and conducts an analysis on Coca-Cola company.

Running head: COCACOLA STRATEGIC ANALYSIS
1
Strategic analysis
Name:
Institution

COCA COLA STRATEGIC ANALYSIS 2
Abstract
Strategic analysis involves a firm coming up with different methods which it can use to assess
and evaluate its strategies to improve its productivity. This paper explains some of the various
tools used by different companies to analyze their plans. Also, the paper discusses the advantages
and disadvantages of each stated tool. The paper goes ahead to use the various tools to conduct
an analysis on Coca-Cola company after which it gives recommendations on proper actions to be
implemented by the company. The paper concludes that Coca Cola Company should apply an
excellent strategic model for their company. In this case, quite a good number of tools are worth
to be implemented by the company. The company should consider expanding its markets by
producing more non-carbonated drinks to satisfy their customer’s health concerns and hence
better their performance. The company should also focus on improving its HR practices to hire
more competent and skilled individuals to help it improve its productivity. They should also
conduct training to existing employees to update them with the advancements in technologies
and equip them with appropriate skills to handle specific tasks. Their management team should
work on setting particular objectives and attainable goals to be achieved within a suitable period.
By doing all the above, the company will be able to reach a significant number of customers both
locally and internationally.

COCA COLA STRATEGIC ANALYSIS 3
Table of contents
Abstract.......................................................................................................................................................2
Introduction.................................................................................................................................................4
About the company..................................................................................................................................4
Company’s mission, vision and culture...................................................................................................4
Company problem...................................................................................................................................5
Strategic analysis.........................................................................................................................................6
Strategic analysis part1................................................................................................................................7
SWOT Analysis.......................................................................................................................................7
PESTEL Analysis....................................................................................................................................8
The ratio analysis tool..............................................................................................................................8
Porter’s five forces analysis...................................................................................................................10
Value chain analysis...............................................................................................................................10
VRIO Framework..................................................................................................................................11
SWOT analysis-Cola Cola Company........................................................................................................11
PESTEL analysis (COCA-COLA COMPANY)........................................................................................14
VRIO analysis- Coca Cola........................................................................................................................17
Alternatives...............................................................................................................................................20
Recommendations.....................................................................................................................................23
Conclusion.................................................................................................................................................24
References.................................................................................................................................................26

COCA COLA STRATEGIC ANALYSIS 4
Introduction
About the company
The Coca-Cola Company is a multinational soft beverage and drinks producer. The company was
established in 1886 by Candler Asa Griggs and is now existent in more than 200 nations globally.
The company produces, promotes and vends more than 3,500 brands under 500 different product
names. The most well-known brands of the company are Coca-Cola, Sprite, Fanta, Minute Maid
and Dasani mineral water (Andini & Simatupang, 2014). The firm enjoys a robust brand image,
large user base and colossal financial position internationally. The company's mission states that
the company promises to build value for their shareholders and generate exertions to construct a
reliable product in the international community. The firm also aims to create value for all of its
stakeholders which have a direct or indirect duty in its victory, and prosperity globally
(Pendergrast, 2013).
Company’s mission, vision and culture
The company missions are to refresh the world, inspire the moments of happiness and optimism,
and build values and make differences. The company framework serves as a roadmap and
directions on every aspect of the business, defining what the corporation requires to stay
achieving quality development and sustainability. The main elements of the company’s vision
are people, product portfolio, partners such as customer and stakeholders, planets, profit, and
productivity. The company’s winning culture describes the behavior and attitudes that will be
needed to make the vision 2020 a reality. The corporation's values encompass their routines and
explain how the action will be operating field. Some of the values of the company are leadership,
collaboration, integrity, accountability, diversity, passion and quality (The Coca-Cola Company,
2017).

COCA COLA STRATEGIC ANALYSIS 5
From its mission and vision statement, Coca Cola Company is all about satisfying the consumer
experiences. Its success widely depends on creating products which match customer needs to
fulfill their desires, preferences and lifestyle requirements. The company's vision statement is too
lengthy and only tries to capture the current needs of consumers. It should be re-stated to win the
future needs of its customers. The goal of coca cola is to use our company's assets- our brands,
financial strength, unrivaled distribution networks, global reach, and the talent and strong
commitment of our management and associates – to become more competitive and to accelerate
growth in a manner that creates value for our shareowners. With its bright and comfortable to
understand the mission and vision statements, the company wants its clients to be in an excellent
position to understand what it does as well as it recognizes the requirements of the customers by
satisfying their needs. The above alternatives fit very well to the company's mission, and vision
statements hence are worthy of being implemented to better their operations which will lead to
increased productivity.
Company problem
The world is ever changing and for the business to succeed over the next decades, they ought to
look ahead and comprehend the forces and trends that will design the industry in the future and
move swiftly to embrace what might occur (Hill, Hult, Wickramasekera, Liesch & MacKenzie,
2017).
First, many food and beverage companies are currently facing challenges due to the consumers
being health conscious on what they eat. Consumers are currently more inspired to buy
foodstuffs they consider to be more strictly lined up with the well-being and health such as
foodstuffs lacking of artificial constituents and GMO. It has given rise to a cleaner levels and an
upsurge of foods in the organics and non-GMO sections which have piled more stress on the

COCA COLA STRATEGIC ANALYSIS 6
typical diet and drinks for the firms to embrace these developments. With many organizations
such as FDA and WHO coming out against high sugar intake, more users are revolving ways
from foodstuffs that are high in sugar, especially, soda. The concerns are that several produce
add sweeteners such as sugar to produces and with more user reading the products tags
nowadays, which might increase the worry to the producers.
Secondly, Industries such as consumer applications, toys, electronics and gamers, and other
domestic goods are by now definitely well-known in the e-commerce arena. However, the food
and drink producers have sluggish on the commitment, Coca-Cola Company included. As
consumers toward preferences for online buying, producers are discovering ways to embrace e-
commerce as portion of their transaction and selling approaches (Mendenhall, Reiche, Bird &
Osland, 2012).
Strategic analysis
Strategic analysis is a routine that comprises studying an organization's business surrounding
within its area of operations. Strategic analysis is vital to formulate strategic planning for
decision making and the smooth running of the company. With the assistance of the strategic
plan, the goals that are set by the firm can be realized. To continually strive to grow, the
company ought to periodically perform a strategic analysis which will, in turn, assist them in
determining what require improvement and zones that are already performing well. For the
company to operate actively, it is essential to comprehend about how favorable variations need
to be executed.
Strategic analysis is vital if an organization has aims and missions. Strategic planning is a long
term task comprising a continuous and organized system and resource venture. The critical

COCA COLA STRATEGIC ANALYSIS 7
questions that a firm ought to deliberate when doing a strategic analysis is: in what way is the
market founded? How are the potential clients in the industry? While performing an imperative
examination, firms ought to comprehend their rivals and therefore, be capable of describing an
approach that will assist them to be an undefeated market leader. One of the most significant
operations of strategy is to help to anticipate future project occurrences and deduces substitute
approaches if a specific plan does to functions as expected (Caligiuri & Tarique, 2012).
Strategic analysis is a process that entails researching on factors on the internal and external
surroundings that affect the performance of an organization. It is essential in the planning
process to come up with important decisions for an organization (Brunswicker & Vanhaverbeke,
2015). Strategic analysis tools come in handy in helping to understand the factors from the
business environment that affect the organization (Burgelman, 2016). The following are the
commonly used strategic analysis tools in many organizations:
Strategic analysis part1
SWOT Analysis
It is a useful tool to identify the strengths, weaknesses, opportunities, and threats that an
organization faces, and it helps to carve a sustainable place in the market (Hales & Mclarney,
2017). The tool is appropriate because it can be used at little or no cost. It also can be used in
complex situations when there is a limited time. However, it does not offer solutions to any
problems. By using SWOT, a manager can understand his business well, attend to his
weaknesses, check on available opportunities and grab on them, make good use of the company's
strengths and develop goals to achieve their set targets. The tool is however limited since it does
not prioritize matters, it gives many ideas but does not provide recommendations on which
approach is the best, and at the same time, it can produce information which might not be useful.

COCA COLA STRATEGIC ANALYSIS 8
PESTEL Analysis
PESTLE can be expanded to mean P. political, E. economic, S. social, T. technological, L. legal
and E. environmental. It gives a view of the surroundings in all angles that affect a company. It
focuses on external issues in the macro environment that affects the performance of an
organization (Vermeulen, & Sivanathan, 2017). The tool tends to identify and assess the impact
of the factors identified on the company’s performance. PESTLE analysis gives a deeper
understanding of the company, its cost effective; it makes the company alert on the issues that
are affecting its operations. PESTEL also provides the company with a chance to exploit the
opportunities and explain ways in which the possibilities can be reached. The use of PESTEL has
the following limitations; factors identified by PESTEL change very fast hence making a bit
complicated to make predictions. Findings from its presentation may not have so much value
because the performances are straightforward. Planning disasters can arise due to many
assumptions that are made from its analysis. Also, the review gives insufficient information
since it only scans the external environment.
The ratio analysis tool
Capital structure
The company maintains a debt level that is prudently centered on cash flows, interest coverage
ratio, and fraction of debt to capital. The firm uses debt financing to lessen the total costs of
assets, which grows the profit on shareowners’ equity (Said, 2013).
The corporation's global present and robust capital rank offer access to become a critical
financial market around the globe, assisting the company in raising money at a small cost
effective. This stance, linked with effective managerial blending short and long term debt and a

COCA COLA STRATEGIC ANALYSIS 9
mixture of variable and fixed rate debt, it effects in a less total cost of borrowing (McNeil, Frey
and Embrechts, 2015).
The tool is used to describe the monetary position power of the fiscal statement. The monetary
statement comprises an income statement, balance sheet, profit, and loss account (Hoskin, Fizzell
and Cherry, 2014). The above proportions offer in detail the reflection of the trade to improve the
usability of the fiscal statements.
Debt to equity share is to compute the solvent level for the long term venture such that it
pinpoints if the business can meet its long-term duties or not (Chua, DeLisle, Feng and Lee,
2015). As described, the debt-equity quotient ought to be 1:1 to outline the style of good
solvency point to the company. As presented in the below, Coca-Cola is doing well in realising
its long-term commitments. Conversely, in 2014, proportion were 2.01:1 alongside 1.59:1 in
2012, which is great in the Coca-Cola but then again superior to PepsiCo, which come out to be
3.01:1 in 2014 versus 2.33:1 in 2012.
Debt-to-Equity Ratio
Coca-Cola PepsiCo
Years 2014 2013 2012 2014 2013 2012
2.011125 1.693032 1.598107 3.0180647 2.17676 2.332202
Debt-to-Equity Ratio = Total Liabilities / Shareholder’s Equity (Boyd, 2016)
Interest coverage ratio

COCA COLA STRATEGIC ANALYSIS 10
The primary aim of interest overage ration is to assess if the firm can realize its interest payment.
The evaluation of interest coverage ration describes the quantity of time a company could make
the interest payment (Das, 2015). In this instance, Coca-Cola is the firm with an optimum worth
that denotes that is accomplishing its responsibilities and too secure to be questioned. On the
other hand, Pepsi is realising its interest duties but not as much as Coca-Cola Company.
Coca-Cola PepsiCo
Years 2014 2013 2012 2014 2013 2012
Interest
coverage
ratio
19.30642 24.78834 29.74559 7.2145215 7.450055 6.912125
Interest Coverage Ratio = Net Income before Interest and Tax / Interest Expenses (Goodhart,
2013)
Porter’s five forces analysis
The tool is used to analyze and assess the competitive ability of a company and evaluate its
position in the market (Mboya & Kazungu, 2015). The five forces are supplier power, buyer
power, and competitive rivalry, the threat of distribution and risk of new entry. It helps a
company to understand the factors affecting its profitability. With this, it will be able to know
when to increase its size by developing specific strategies to do so.
Value chain analysis
Value chain analysis is a strategic tool that is used to analyze the internal activities of a firm. It
tends to recognize the most valuable activities including the company’s competitive advantage
(Vermeulen, & Sivanathan, 2017). It performs its analysis by using a cost or differentiation
advantage. The study creates a competitive advantage for a firm since it ensures that costs are

COCA COLA STRATEGIC ANALYSIS 11
minimized to create a value for a firm. The tool breaks down a company’s activities into smaller
units which may sometimes misplace the company’s mission and strategies.
VRIO Framework
The tool used is to examine the internal environment of a firm. VRIO stands for four types of
questions that an organization should use: these are the question of value, the question of rarity,
the question of imitability and the question of organization. According to this model, tangible
resources, intangible resources, and organizational capabilities are used to evaluate the
competitive advantage of the organization (Porter, 2011). The framework occupies a broader
structure of the organization's strategies. The model is widely used because of its simplicity and
clarity, and it also evaluates the organization's capabilities in a more detailed way. It is also used
to assess a company’s financial information.
SWOT analysis-Cola Cola Company
Strengths
Coca Cola Company has an exceptional brand identity. The specific taste of their drinks makes it
easier to be identified hence building customer loyalty. Many individuals buy coca cola products
not only because they taste good, but also because of the brand name. They do believe every
drink that is manufactured from Coca Cola Company is suitable for consumption and very sweet.
Coca-Cola as a company makes a lot of money from the sale of its products all over the world.
They are making some good profit in return which is used to develop the company as it keeps
opening more and more branches worldwide. Customer loyalty is passed from generation to
generation as parents who are addicted to these products teach their children to love coca cola
products because it never disappoints. Its logo is also widely recognized which in some way it is
an excellent way to market the company. With these strengths, it will be very hard for a new

COCA COLA STRATEGIC ANALYSIS 12
company to emerge and compare itself with coca cola. It will take it centuries to rise to where
coca cola is at the moment.
Weaknesses
The major weakness Coca Cola is facing is competition from its rival company Pepsi. However,
this cannot be seen as a challenge because Pepsi is a smaller company compared to Coca Cola
only that it tends to wipe away some of the customers who used to purchase products from Coca
Cola. Another weakness is that people are shying away from buying their drinks because of
feared health issues. Many of Coca Cola drinks are carbonated for preservations, and people are
afraid because carbonated drinks cause obesity. Quite a good number of Coca Cola drinks lack
popularity because many people do not know about them. They only know of Coca Cola and
Sprite drinks. The above issue may be because of poor marketing and advertising of those other
drinks that have a low profile. When analyzing the company, these weaknesses should be put
into consideration.
Opportunities
Coca Cola has the chance to advertise its many other drinks which are not known to the public.
These drinks can be sweeter hence attract a pool of more customers which will turn out to be
loyal buyers of the products. At the moment, we will assume they are not purchased frequently
because people do not know about them and that they are afraid to try them. The company has an
opportunity to create new products from the profits its making since their brand name is widely
recognized. Coca Cola has stretched its roots to hundreds of countries; it can consider moving to
countries known for experiencing high temperatures and market their drinks there, and by doing
this they will make more sales. For the company to cut down on competition, coca cola has the

COCA COLA STRATEGIC ANALYSIS 13
opportunity to buy smaller companies that are emerging to venture into the same business of
producing soft drinks. It will turn the purchased company's profit into the benefit of Coca Cola
Company.
Threats
The biggest threat to this company is the changing attitude towards its products because of health
issues. In this current world, people are on the watch out about the foods they eat and the drinks
they take. People are worried about coca cola products because they are carbonated drinks which
pose a great health issue in the lives of human beings because it weakens the bones. People are
looking for alternative products which have less sugar. Competition is also another threat by
other products such as coffee, juices, smoothies, and milk because at times people prefer
purchasing these products instead of coca cola drinks. Competition from other emerging
companies is also a threat.
A good example is Pepsi Company which produces the same products as coca cola. The
company should ensure that Pepsi does not rise to the point of starting to dominate the market
with their products. Another threat the company is facing is an increase in the price of purchase
of raw materials and increased costs of labor. Lastly is an issue on water scarcity which badly
affects this company. Earlier on people were afraid of their drinks because they claimed that coca
cola was mixing its water with pesticides to clear contaminants. Thus, the management should
consider proper ways of conserving clean water.
With the above analysis of Coca Cola Company, we can tell that it has outstanding strengths.
During a certain period which they had a financial crisis, its popularity and brand name saved it
big time. It should consider producing healthy drinks to address the issue of health

COCA COLA STRATEGIC ANALYSIS 14
unconsciousness. It can also consider majoring into some other line of products that customers
will be willing to purchase like snacks to accompany their drinks. Another critical area is water
management since water is a significant issue that the company is facing. This few strategic
moves will help the company to maintain its position in the market and perform well in the
industry.
PESTEL analysis (COCA-COLA COMPANY)
Political analysis
The government can set fines for companies that do not meet the established standards in
manufacturing their products. Coca Cola Company ensures that it protects its brand image by
abiding by the rules and regulations in each country to avoid issues with the various countries in
which it is producing its products. An excellent example, in this case, was when India had
banned the selling of coca cola products to schools, hospitals, universities, and colleges. The
company had to abide by that rule. It also has to put in place specific measures to avoid breaking
some of the laws that govern its performance in various countries. It should ensure it complies
with taxation laws and also GAAP rules of accounting by publishing their financial statements.
The company also participates in contributing to the wellbeing of the societies around it.
An example of this is participating in non-profit associations like sponsoring sporting activities.
Also, before coca cola enters a new market, it considers the different beliefs people in that
country have. Some Islamic countries prefer that such products should contain an Islamic symbol
of the Halal stamp and so Coca Cola Company had to comply with this rule.
The company has to adapt to the ever-changing internal markets, different labor laws and
accounting and tax laws in the countries of its operations.

COCA COLA STRATEGIC ANALYSIS 15
Technological analysis
Through technology improvement and advancements, new products and product improvements
emerge in the markets. The company uses advanced technology to come up with new products
and drinks with sweeter tastes which are warmly welcomed by customers. This improves its
performance because productivity is enhanced with advancement in technology. With well-
improved machinery, coca cola can produce quality drinks and in high volumes to meet the
market demand. The company also uses social media technology to connect with its customers
worldwide. It launched a naming campaign recently that involved packaging its drink on a Coca-
Cola bottle branded with different people’s names requesting them to ‘share a coke' with the
person to whom his name is printed on the bottle and post their moment of sharing the coke on
social media platforms. Using the technique, the company increased its volume of sales because
many customers were purchasing the drink to share the moment with their loved ones.
Environmental analysis
Coca Cola Company focuses on relevant areas of the environment by avoiding pollution through
proper waste management. It aims to package its products to environmentally friendly materials
which do not cause pollution. Coca-Cola is affected widely by the shortage of clean water. Water
is becoming a scarce resource, and coca cola should find a way of improving the accessibility to
clean water in its different plants. The company also ensures it carries out its operations within
the set environmental laws in the various countries it has spread its roots.
Economic factors
Coca Cola Company was once affected by a Recession which hit America some time back. This
company is concerned with various economic factors like inflation in a country. When inflation

COCA COLA STRATEGIC ANALYSIS 16
hits a state, the company is forced to reduce the selling price of its products in the country
affected by high inflation rates.
Social factors
In this current lifestyle, people are changing their beliefs and norms and also improve their way
of life. Since people found out that carbonated drinks pose a significant danger to their health,
they are finding an alternative way to evade carbonated products because they believe it causes
diabetes. This issue made coca cola to realize that they are losing potential customers and due to
this they started producing health non-carbonated drinks like juices and energy drinks. Coca-
Cola makes sure that it meets the requirements of different customers in different countries it
distributes its products.
Legal issues
Some of the legal problems coca cola had to face are: the ban of its drinks by the European
Commission in its member countries. It came after a suspected case that a particular brand of soft
drinks had poisoned almost 100 children in Belgium. The EU claimed that the wrong carbon
dioxide was used in preservation hence end up banning coca cola products its member countries.
In 2003 also a nongovernmental organization by the name Centre for Science released a report
claiming that coca cola products contain toxic substances like lindane, Malathion, and
chlorpyifos which are not suitable for human consumption because they lead to cancer and
failure of the immune system. This acted like a big blow to the company because of decreased
sales since when customers get to hear this information they run away from their products for
fear of their health. Coca Cola should defend this by ensuring they comply with safety standards
of producing their products. Different countries have different legal operating procedures in

COCA COLA STRATEGIC ANALYSIS 17
which coca cola has its ethics and compliance practices that fit in all the countries that it has
established itself.
This analysis shows that quite some political, economic, environmental, technological, social and
legal affects the business of producing soft drinks. The company is advised to adopt different
market strategies in different countries regarding the political, social and economic factors. For
technological considerations, it's a different case because the company influences it. Coca Cola
Company has also geared towards its growth by beginning to produce beverages with low
calories to address the alarming health issues from its customers. The company also retains all
rights when carrying out the production process with patented rights to do so. Coca-Cola
Company should focus on the best available technologies to produce its products and strictly
follow the set regulations and adhere to the minimum rules and operating standard set in
different countries to improve its performance by maximizing their productivity (Brownell et al.,
2015).
VRIO analysis- Coca Cola
This framework analyses how the strengths that Coca Cola Company has can be used to achieve
a sustainable plan to maintain its competitive advantage on the industry. It focuses on the
following factors:
Value- is the resource allowing the company to be able to identify its opportunities and potential
threats to be able to work on the opportunities as they prevent the risks?
Rarity- is the resource rare or rather scarce?
Immutability-is it costly to emulate what other companies are doing?

COCA COLA STRATEGIC ANALYSIS 18
Organization- is the company's policies and operating procedures in an excellent position to help
it exploit its valuable resources?
Valuable
The company has an international distribution network enabling it to serve a broader market with
different sorts of customers. It also has an extensive product range helping it serve its customers
with different tastes. Having a sizeable efficient system, it is well equipped with qualified and
skilled human resources to perform its operations. It connects with its customers all over with its
proper marketing techniques hence helping it to manage different brand images. It also has a
secretive production formula which is only known to key individuals in the company. The
company is also marketing itself with its good brand image all over the world. Coca Cola
Company continues to carry on with different researches to continuously innovate and adapt to
the ever-changing customer needs (The Coca-Cola Company, 2017). The company's most
significant success is how it differentiates its products from other beverage companies. The
different products offered by coca cola include vanilla coke, coca cola black cherry, and diet
coke with lime, coca cola black cherry vanilla and coca cola zero.
Rare
Coca-Cola is among the fewest companies with a global distribution network which helps it to
extend its global reach by meeting the needs of a wide range of customers. It also has a wide
range of soft drink products which also other competitor companies have, but it's known for its
uniqueness. Coca Cola Company is a good differentiation strategy and a good level of
competitive advantage which makes it very rare and unique. Its unique marketing skills and high
brand image makes it far ahead of other beverage companies. Also, its secret formula for

COCA COLA STRATEGIC ANALYSIS 19
producing different flavors positively influences the company's performance and productivity.
By carrying out extensive researches, it can rise to complex market positions hence gaining a
competitive advantage over other firms.
Imitability
Coca Cola Company is costly to imitate. It has a cost asymmetric on the products it offers hence
making it hard for other companies to emulate that. A small company with little resources and
limited capabilities cannot make to imitate coca cola. The secret formula for producing different
tastes is only known to a few individuals who have also made it a secret over the years. This
makes it hard for other upcoming competitors to find out what exactly coca cola company does
to be unique hence tricky to imitate. On research and development, it has a temporary advantage
because other companies too are carrying out their investigations to cope with the marketing
needs.
Organization
Coca Cola Company has well-established structures in terms of management and organizational
systems. This helps it in attaining a sustainable competitive advantage over the other firms.
This analysis indicates that very many competitors in the industry mark coca Cola Company. Its
primary sources of competitive advantage which entails its unique production techniques and
human resource management can as well be imitated by its most significant competitor, Pepsi
Company. However, its unique brand name and the secret formula used in producing drinks with
different tastes keep it ahead. Coca Cola Company prides itself in being the world’s largest
company which provides a wide range of soft drinks. Its unique brand image plays a more
prominent role in marketing the company both locally and internationally.

COCA COLA STRATEGIC ANALYSIS 20
Alternatives
To use a strong brand name recognition to acquire more markets
Coca-Cola has a broader market share of 23.9% that doubles that of Pepsi Company which is its
biggest competitor. As the years go by, coca cola tends to increase its revenues on a large scale.
This success enables it to penetrate to more new markets that it enters thus allowing it to
improve. Due to the increasing demand for the product in the overseas countries, its market share
will continue to expand. This company is also planning to repair its bad reputation in the few
countries in which it doesn't have a good name so that it expands its distribution network to cater
to large customer bases. This will lead to continuous growth in income revenues and profit
margins.
Develop a plan to increase awareness of global management.
This company should monitor its global operations very carefully. This is because one evil act
from a single company will ruin its reputation worldwide. This will, in turn, affect its brand
name and the company’s corporate image.
From its mission and vision statement, Coca Cola Company is all about satisfying the consumer
experiences. Its success widely depends on creating products which match customer needs to
fulfil their desires, preferences and lifestyle requirements. The company's vision statement is too
lengthy and only tries to capture the current needs of consumers. It should be re-stated to win the
future needs of its customers.
The goal of coca cola is "To use our company's assets- our brands, financial strength, unrivalled
distribution networks, global reach, and the talent and strong commitment of our management

COCA COLA STRATEGIC ANALYSIS 21
and associates – to become more competitive and to accelerate growth in a manner that creates
value for our shareowners.”
With its bright and comfortable to understand the mission and vision statements, the company
wants its clients to be in an excellent position to understand what it does as well as it recognizes
the requirements of the customers by satisfying their needs. The above alternatives fit very well
to the company's mission, and vision statements hence are worthy of being implemented to better
their operations which will lead to increased productivity.
Adding the value to products
Value-added food and drinks such as stimulated mineral, vitamins, and proteins, are becoming
more famous as users gaze for more than merely price and flavors when creating buying choices.
Producers are eyeing for means to add worth to their produces in such a way that it makes logic
without sustaining a huge cost or adding constituents that users may not know and thus discard it
afterwards. Juice is one drink category that has been value-added, as the same sugar contents
have reached the category of soda beverages. To balance part of the worth deterioration seen in
the extract, users are shifting towards premium and value-added drinks.
Sluggish produce innovation phases
Introducing novel goods that line up with developing user styles promptly is hard for several
food and drink firms as the course of building fresh, relevant foodstuffs and shifting them
through R&D, testing and selling to retailer consumes a lot of time. Strenuous merchandise
invention sequences and receiving those products from development to shelf are concerns that
have overwhelmed companies and firm will perhaps look to solve or prevent some of that
pressure going forwards (The Coca-Cola Company, 2017).

COCA COLA STRATEGIC ANALYSIS 22
Marking the product more expedient
The development of foodstuffs among the users has resulted in producers to reconsidering the
assemblages and wrapping of their produces to create them more suitable and convenient for
consumption. Users’ taste is indecisive and focusing them with the correct messaging at
optimum time and location is progressively more significant (Grant, 2015).
Product innovation
Mostly, constant product innovation is essential (Hafiz, 2015). The company ought to be
capable of acknowledging user needs and trends while upholding the capability to adjust to the
different market. Healthy selections or brand differentiation will be a basis of competitive gain
for drinks producer. The company should manufacture drinks that have value and unique
characteristic for a specific market section such as health-cognizant users.
Employees
The company workforces are crucial for its success. Coca-Cola hires, aggressively trains a
varied workforce and establish culture that promotes advancement, knowledge, and value-
creation each day. It means that refining and maintaining a corporate culture that encourages
their individuals to progress to their fullest potential, which develops fulfillment and contentment
in the firm's work environs.
Technology improvement
Technology is a primary driver in all value-added action inside the company. The quick varying
technology such as supply chain managing, automation, and packing technology has enormous
significance in the manner the company performs business activities globally. Technology in the

COCA COLA STRATEGIC ANALYSIS 23
firm transcends the old wisdom that is mainly concentrated on R&D. Coca-Cola has a tactical
invention team where the R&D employee is committed to discovering novel produces and
procedure.
Recommendations
Research and development
The R&D actions mainly comprise the growth of novel goods, advancing the value of existing
produce portfolio, upgrading and transformation of manufacture routine and executions of the
up-to-date technological progress. Coca-Cola R&D expenditures are encompassed in the
vending, general and managerial cost. The company is devoted to upholding its management
rank in R&D for the drinks sector. I think the company will remain to concentrate on its R&D
approach to sustaining its business governance level and persistent to offer worth to the users.
The brand proposition to users is the primary driver of the company's R&D tactics.
Develop a plan to increase awareness of global management
Company modifying societal attitudes, concerns and lifestyles are significant consumer’s trends.
In the United States, and also in Europe, individuals are becoming more concerned with a
healthy and wellbeing lifestyle. Customer’s awareness of the health complications arising from
obesity and inactive lifestyle demonstrates a severe peril to the carbonated drinks sector.
Therefore, the trends are causing modification. Thus, Coca-Cola should differentiate products to
increase transaction in a stagnant market place.
Health and wellness fashion

COCA COLA STRATEGIC ANALYSIS 24
It is obvious that the industry is merely lacking or just too large in optimistic health qualities to
be capable of succeeding in the gradually health-mindful market place. The PepsiCo now control
over 50% of market portion in the noncarbonated beverages in the US, due to its adjusted
approach of conflicting in the noncarbonated segment. It is recommended the company to vary
with the eras to embrace the requirement of new age bracket of young users and health-sensible
users.
Wellness and health continue to be a key trend all over the global beverage sector. Most soft
beverage users are gradually moving their use sequence to products that have fewer adverse side
effects. The obesity controversy is one of the most crucial concerns designing the soft drink
sector currently and in the future. The young professional who has a desire for a healthy
development of low-calorie drinks are not focused on diabetes; they wish to drop or retain their
heaviness. The mature users are worried about diabetes which will move from high calorie to
water or modified one. It is recommended the company moves forward with their devotion to
offer industry control in the fitness and wellness field.
Conclusion
Though the direction to growth approach described is promising, the company has not addressed
the bigger-picture concerns that 80% of its operations come from carbonated soft beverages.
Moreover, the carbonated soft drinks have become a key target in numerous international debates
about the linkage between the soft brink user and obesity. Health conscious users around the
globe have begun reaching for bottled water and on the noncarbonated drinks that offer new
tastes and better nutritional value. The company such as PepsiCo has diversified and has taken
period to expand their brand portfolio while Coca-Cola is still struggling to reinvent itself.

COCA COLA STRATEGIC ANALYSIS 25
Internal strategic analysis as the word denotes, through this evaluation, firms look within and
inwards and pinpoint the negatives and positive aspects, and develop the set of possessions that
be utilized to advance the firm's reputation within the marketplace. Internal analysis begins by
assessing the organization's output. This encompasses the prospects of a company and its ability
to develop. The strength appraisal of the company ought to focus on the market place,
concentrating on the consumer. The strengths only create logic when they assist the firm to
accomplish the client's requirement. When performing so, an internal evaluation should also
comprehend the limits and weaknesses that a firm encounters either in the future or at present.
External assessment where once the firm has finished its internal evaluation, it requires to know
about the external aspects that can be blockages in the development. It means they need to know
in what way the market operation and how users respond or act to specific products or services.
Measuring user fulfilment is the usual external analysis approach. The routines one is most
probably to embrace when utilizing the pestle approach is comparatively a simple one.
Many countries are faced with harsh economic conditions which in the long run affect the daily
operations of almost every company. Coca-cola continues to outsource labor from different parts
of the world. Due to its ability to expand, it should be able to create more employment
opportunities to help people who need jobs to be able to support their families
Recently a coca cola company was shut down because more substances of chlorine were found
in some drinks. Despite it not causing any harm, the company was shut down because excess
chlorine is harmful to human health. The company has also been spotted to face water shortages
mainly in India. To deal with this, the company decided to invest billions of money to produce
more drinks to capture the Indian market. Coca-cola continues to establish itself despite the rapid
growth in population the world is facing. The company should monitor its global operations very

COCA COLA STRATEGIC ANALYSIS 26
carefully. This is because one evil act from a single company will ruin its reputation worldwide.
This will, in turn, affect its brand name and the company’s corporate image.

COCA COLA STRATEGIC ANALYSIS 27
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