Internal Analysis of Coca Cola

This article provides an internal analysis of Coca Cola, including a SWOT analysis, value chain analysis, and an examination of the company's resources and management structure. It discusses the strengths, weaknesses, opportunities, and threats faced by Coca Cola, as well as the primary and support activities in its value chain. The article also explores the financial, human, and physical resources of the company, and evaluates the strengths and weaknesses of its management and organizational structure. Overall, it highlights the challenges and opportunities faced by Coca Cola in the global beverages market.

RUNNING HEAD: INTERNAL ANALYSIS 0
Internal Analysis of Coca Cola
2019

INTERNAL ANALYSIS 1
Contents
INTRODUCTION.......................................................................................................................................2
SWOT ANALYSIS OF COCA COLA.......................................................................................................2
STRENGTHS..........................................................................................................................................2
Weaknesses.............................................................................................................................................3
Opportunities...........................................................................................................................................3
Threats.....................................................................................................................................................4
VALUE CHAIN ANALYSIS OF COCA COLA........................................................................................4
Primary activities.....................................................................................................................................4
Support activities.....................................................................................................................................6
Financial, human and physical resources of coca cola.................................................................................7
Strengths and weaknesses of the management and organizational structure of coca cola............................9
Conclusion.................................................................................................................................................10
Bibliography..............................................................................................................................................11

INTERNAL ANALYSIS 2
INTRODUCTION
Coca cola is one of the largest beverages producing corporation in the world. Coca cola was
found in 1892 in Georgia and was amalgamated in 1919. It markets and licenses around 500 non-
alcoholic drinks; along with the sparkling beverages some still beverages were the primary focus of the
company such as coffees, tea, juices, waters and sports and energy drinks ( Nganga, 2014). Coca cola
markets and owns the four drinks out of five non-alcoholic iridescent drinks of the world namely: Sprite,
Diet coke, Fanta and Coca cola.
Since 1886, Companies completed brews products having the symbol of the company were sold
in United States and now they were traded in more than 200 nations. It produces the branded beverages
and makes them available to the consumers from all over the world through a network and the world’s
major distribution structure of distribution operations; company owned or measured bottling in addition to
the independent bottling suppliers, associates, vendors and dealers.
SWOT ANALYSIS OF COCA COLA
STRENGTHS
1. Product Equity:
Highest brand equity award was achieved by coca cola in the year 2011, which
was presented by Interbrand. Coca cola is said to be the priciest trademarks having the
uppermost product equity with its unique brand identity and vast international
occurrence.
2. Leading market share:
Coca cola sell its products in almost 200 countries, which show that it has a large
market share. There is possibility of getting coca cola in any market of any country. This

INTERNAL ANALYSIS 3
huge worldwide existence of coca cola helped it to subsidize in building MAMMOTH
that is a name of a brand ( Lopez, 2012).
Weaknesses
1. Competition with Pepsi:
There are two largest beverages segments in the world- Pepsi and Coca Cola. The
competition between these two markets is enormous. Pepsi will always be a tough
competitor of Coca Cola and it is not going to give up so easily (Cola, 2011).
2. Management of water:
In the past, coca cola confronted many issues and problems because of its water
managing issues. Many sets in the designation of coca cola have raised lawsuits and the
reason behind this was the vast drinking of water in the areas where there is scarcity of
water. These issues resulted in people blaming coca cola for the collaborating of
pesticides in the water to remove pollutants. Therefore, coca cola desires to manage the
problems in order to reduce further issues related to water ( Anders, 2013).
Opportunities
1. Diversification:
Diversification in the food and heath trade will help to develop the assistances of
coca cola to their consumers. Coca cola makes sure that they will receive improved
income by cross marketing their goods to the existing consumers.
2. Advertise the lesser selling products:
There are many coca cola products, which are not conventional in the market.
Keeping these products in the view coca cola needs to focus in marketing these less
selling products.

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Threats
1. Tracking of raw material:
The only danger of coca cola is water. However, there is an increase in lack of
water at some regions, which can result in the low production of the soft drinks. Water
sourcing can go down at any time on the skull of coca cola ( Press, 2018).
2. Indirect competitors:
Chains of coffee such as café coffee day, costa coffee or Starbucks are on the rise
nowadays. These chains are becoming a competitor of coca cola indirectly as they are
also producing varieties of soft drinks such as red bull, real juice and Gatorade. These
competitors are raising and maintaining the market share in the market.
VALUE CHAIN ANALYSIS OF COCA COLA
Coca cola is one of the best perceptible brands universally. Coca cola is identified for its
worldwide existence and its strong image of brand. Therefore, building a successful and large
brand requires management of value chain successfully ( Reese, Gerwin, Koch, & Waage).
There are primary and support happenings in the exploration of value chain of coca cola that are
discussed below:
Primary activities
Inbound logistics:
The management of coca cola accomplished an enormous supply chain, which includes
more than thousands of contractors or ranchers. They supply the traders as their occupational
partners, who offer its system with the raw materials containing wrapping, equipment,
requirements as well as facilities and personal property. The management of coca cola also sets

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some guidelines for the suppliers, which are required to be followed by them. In these guidelines,
coca cola also highlights the responsible environment of the organization and the practices and
policies o workplace (Reisi, Fahimniaa, & Gabriel, 2019). Coca cola maintained a healthy bond
with its dealers and that helps to the uninterrupted movement of raw material without any
interruptions.
Operations
This purpose of coca cola contains concentration on the developmental and the
administrative operations of the HQs. Coca cola is a worldwide corporate that activates in the
communities at a local scale where they have their business. Coca cola can operate its system
through many local channels. The company does not control or owns these bottling partners but
they just sell and produce syrups and bases to bottling activities. The company is only in charge
for owning the product publicizing creativities for the consumers.
Outbound logistics:
This portion of value chain analysis of coca cola consists of its bottling distributors and
associates. The bottling partners yield, distribute, bundle and merchandise the absolute goods to
the selling partners and consumers. These vending partners further sell the products to the
purchasers. On the other hand, the bottling companion of coca cola works with the consumers to
develop a partnership with the company and execute various strategies to maintain that
relationship.

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Sales and marketing:
Coca cola is a universally identified brand. Therefore, this fame of coca cola could not be
attained without focusing on marketing. Various platforms accepted by coca cola to promote
their products or brands are outdoor marketing and print media. Coca cola is planning to promote
the whole brand together and last year it conveyed foremost changes in its marketing approach
rather than sponsoring its trademarks distinctly.
Support activities
Technology:
The heavy focus of coca cola is on the development, research, and technology. Coca cola
has invested in technology from production to sales and distribution. The research and
development done by coca cola helps to bring innovations in technologies. There are 6 research
& development centers all over the world that are interrelated to the outward valuation hubs and
technology and relating them with tech starters, associates and university researchers (Andrew &
Borchers, 2018). Bringing new changes in the technology and adopting advanced technology
shows that coca cola is incessantly concentrating on the invention that can bring progress in the
company.
Human resource management
For any business, human resource management is an essential area for company’s value
chain. Coca cola concentrated on the developing new talents and recruiting new people and
generating an atmosphere of development and knowledge. With this, the company attentions on
personnel commitment and employee inspiration ( Collings, Wood, & Szamosi, 2018). Other

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than this, coca cola concentrated on managing performance in order to provide the opportunities
to the employees to make career growth.
Procurement
Thousands of suppliers and farmers procure coca cola. The use of technology in coca
cola is done to make the process efficient and easier. Apart from this, coca cola provided
guidelines, which should be followed by the suppliers and it always maintained great
relationships with the suppliers.
Firm infrastructure
The main role of the company’s infrastructure is significant for success. There is a large
infrastructure maintained by coca cola like human resource, management, technological and
financial infrastructure.
Financial, human and physical resources of coca cola
Physical, human and financial resources are the tangible resources of the company. Many
physical resources are managed and controlled by coca cola. The physical resources of the
company includes equipment, building and there bottling partners ( Cullen & Broadbent, 2012).
The presence of the production plant owned by coca cola shows that the company maintained
low cost of production. This facilitates the company to provide high quality products at cheap
price in the market whereas the existence of the equipment that are owned by the company
shows that the company do not give their equipment on rent or lease by maintaining low cost of
production. The buildings of coca cola accounts for $ 5.24 billion and the equipment, plant and

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property accounts for $ 23.15 billion. There are 275 bottling partners of coca cola to distribute
the soft drinks.
The strong financial position of the company shows the stability of financial resources to
carry out the process of production with no interference of any issues or problems regarding
shortage of cash ( Potter, 2015). The positive cash flow in coca cola certifies that the company
has availability of cash for those activities, which requires cash. This situation of the company
helps to dodge pointless debt financing and this leads to positive working environment where the
employees get motivated to work. The financial position of coca cola is very strong, its sales is $
46.542, and its gross profit in the year 2009 was $64.22%, in 2010 it was $ 63.86% and in the
year 2011 it was 60.86% mea s that there has been consistency in their efficiency of distribution
and manufacturing at the time of process of production.
The most significant resources of any business are human resources without which no
organization can survive ( Mangia & Cantoni, 2018). The numbers of employees working in
coca cola in the year 2018 are 62000. The company offers training to the workforces in order to
develop their abilities, rewards them for good performance by different elements such as
additional holidays, healthcare, and pensions ( Bauer, Erdogan, Caughlin, & Truxillo, 2018).
Coca cola organizes an open communication between the employees and the management where
they provide an opportunity to the employees to keep their points and ideas in the decision
making process of the company. More than 700000 associates together generated the coca cola
system.

INTERNAL ANALYSIS 9
Strengths and weaknesses of the management and organizational structure of
coca cola
It is true that effective management brings the success in the organization. Similarly, if
management will not work properly then it can lead to failures. The strength of the management
and organizational structure is that there is reliability in the management, which makes sure that
nothing goes wrong. The employees of coca cola are very satisfied with the dependability within
the business (50MINUTES.COM, 2015). Organization is strength of the organizational structure
in which the organization connects people together for having a great understanding of the
process in order to complete the task given to the team.
Along with strengths, there are also weaknesses of the management and the organizational
structure of the coca cola. Emotional intelligence, diversity and culture of the management have
become a weakness of the organizational structure and the management. It occurs when the
management do not have any Understanding of the culture and diversity. Translation of
messages and active listening is at the essential of all the other activities and skills. This occurs
when there is no conversation among the management and the employees.

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Conclusion
Throughout the years, coca cola has been growing continuously and is
recognized as the world top beverages producing company. There is great number
of employees working in the organization. Even though, coca cola is a famous
brand but still it faces many obstacles. Pepsi is giving strong competition to Coca
cola. Coca cola adopted many new design and advanced technology in order to
increase the production.

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Bibliography
Anders, J. (2013). Coca-Cola’s Marketing Strategy: An Analysis of Price, Product and Communication.
GRIN Verlag.
Bauer, T., Erdogan, B., Caughlin, D., & Truxillo, D. (2018). Human Resource Management: People,
Data, and Analytics. SAGE Publications.
Collings, D. G., Wood, G. T., & Szamosi, L. T. (2018). Human Resource Management: A Critical
Approach. Routledge.
Cullen, J., & Broadbent, M. (2012). Managing Financial Resources (3rd ed.). Routledge.
Lopez, D. (2012). Brand Development of Coca-Cola Company. GRIN Verlag.
Mangia, G., & Cantoni, F. (2018). Human Resource Management and Digitalization. Routledge.
Nganga, C. (2014). Coca-Cola Company. History, SWOT analysis, maketing strategies. GRIN Verlag.
Potter, M. (2015). Management of Physical, Technical and Human Resources. Lulu Press, Inc.
Press, O. (2018). Threats. Outskirts Press.
Reese, J., Gerwin, K., Koch, S., & Waage, M. (n.d.). Value Chain Analysis: Conceptual Framework and
Simulation Experiments. 2016: Nomos.
50MINUTES.COM. (2015). The SWOT Analysis: A key tool for developing your business strategy. 50
Minutes.
Andrew, & Borchers. (2018). Technology Management in Organizational and Societal Contexts. IGI
Global.
Cola, C. (2011). Coca-Cola. Assouline.

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Reisi, M., Fahimniaa, B., & Gabriel, S. A. (2019). Supply chain competition on shelf space and pricing
for soft drinks: A bilevel optimization approach. International Journal of Production Economics,
211, 237-250.