Strategic Management Assessment 2

STRATEGIC
MANAGEMENT
(ASSESSMENT 2)
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TABLE OF CONTENT
COMPANY PROFILE....................................................................................................................3
INDUSTRY ANALYSIS................................................................................................................3
BUSINESS ENVIRONMENT........................................................................................................5
RESOURCES AND CAPABILITIES.........................................................................................7
Tangible v/s Intangible Resources...............................................................................................8
VRIO Analysis.............................................................................................................................9
CONCLUSION..............................................................................................................................11
REFLECTION...............................................................................................................................11
Reflection on the environment and competitive analysis models.............................................11
REFERENCES..............................................................................................................................14
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COMPANY PROFILE
Strategic management is going to make the objectives and goals be achieved so that there
is going to be effective working. There are a lot of objectives and targets which are present of
companies so that there is going to be higher performance and profitability. Coca cola was
introduced in 134 years and the company originated in United States. There are a lot of products
which the company has expanded themselves in Diet coke, Coca-cola zero sugar, coca-cola life,
coca-cola mango, etc. The company’s related products are Pepsi, RC Cola, Afri-Cola, Kola Real,
etc. The company is ranked as NO. 87 as of 2018 Fortune 500 in US which is having a good total
revenue. There are a lot of theories and models which can be used by the organization like
porters five forces, PESTLE and VRIO. There is going to be better functioning and operations
for that there has to be good performance and there is going to be higher revenues as well which
the company can have. The company has to have a good planning and structure for themselves
so that there is going to be effective working which is going to make the functioning of the
organization is going to be better.
INDUSTRY ANALYSIS
The company is going to use porter’s five forces to be able to get competitive analyses of
the organization so that there is going to be a better planning which can be done by the
organization for the future. The competition in the market is increasing therefore it is important
for the organization to be able to make the right decisions which is going to help the organization
to maintain the market share and profitability in the market.
 Threat of substitute products (High)
There are a lot of substitute products which are present in the market for Coca cola which is
going to make the organization have low sales. The substitute products of Coca cola is having
tea, coffee, juices, water, beer, etc which is going to take the sales and demands of the products
of firm lower which is going to impact on the productivity and operations of the organization.
Coca cola is not a healthy drink as compared to the substitute products which are present in the
market and the customers are also opting for healthier products which are going to impact on the
profitability in the market (Certo and et.al., 2016). There have to be a lot of decisions which the
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organization has to take so that there has to be good sales and brand image of the organization
can be maintained in the market which is going to make the consumers opt for these products.
Due to promotions and investment in making the customers get impacted of by the product is
going to make the sales of the organization be higher which is good for a long run.
 Threat of new entrants (Low)
Coca cola has already made a lot of investment in the working of the organization which is why
it is going to be difficult for any new business to be able to come in the competition with Coca
cola. Business has made a strong base by promoting and recognition of the organization is high
which makes the company be able to operate effectively in the market which is a great factor for
the organization to have. There is a set target which the firm is having for themselves in the
market and the company is working very hard to be able to achieve those factors so that the
organization will be able to have a better customer share (Competitive analysis of Coca Cola,
2019). There are a lot of barriers which have come in front of the organization due to which the
organization was banned as well for years but due to strong reputation and branding techniques
the company has maintained their reputation and brand image which is making other competitors
not to enter this industry.
 Bargaining power of suppliers (Low)
The suppliers are going to provide Coca cola with basic commodities like sugar, caffeine,
flavours, and other important ingredients which are required for manufacturing. These basic
requirements can be got in the company from a lot of suppliers which is going to make the
organization have cost saving. The company has good networks which is why they can find it
easier to be able to shift from one company to the other so that they will be able to operate
effectively (Peppard and Ward, 2016). Agriculture is present in all the countries as well which is
why the company will be able to expand themselves as well according to the demands so that the
organization is going to have more sales. The raw material for production has to come in
regularly so that the organization will be able to have a good functioning and the production is
going to be higher. There has to be good bargaining with the suppliers as well so that the
company will be able to have good functioning.
 Bargaining power of buyers (Medium)
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