Business Analysis Report: Coca-Cola's Strategies and Challenges

This report provides a comprehensive business analysis of the Coca-Cola Company, examining its market position, strategies, and challenges. It begins with an introduction to Coca-Cola's history and mission, followed by an in-depth analysis of its macro and micro environments. The report utilizes both PESTLE and SWOT analyses to evaluate the external and internal factors influencing the company, including political, economic, social, technological, environmental, and legal factors. The SWOT analysis assesses Coca-Cola's strengths, weaknesses, opportunities, and threats, considering market share, product diversification, competition, and health trends. The report concludes by summarizing the key findings and implications for Coca-Cola's future.

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Business Analysis Assignment
Table of Contents
RESERCH METHODOLOGY..................................................................................................1
Introduction................................................................................................................................2
Our mission............................................................................................................................2
Our vision...............................................................................................................................2
Pestle and swot Analysis............................................................................................................3
Swot Analysis.............................................................................................................................5
Conclusion..................................................................................................................................6

Business Analysis Assignment
RESERCH METHODOLOGY
In this report, the focus will be given on the macro environment and micro analysis of the
coca cola company. As this organization has achieved success and is one of the largest
companies. It is a soft drink beverages company, and most wanted drink in the market. The
company faced various challenges in the market. There are different factors, including
internal and external factors, considered to analyse all the factors in this report. It is also
related to external and internal factors. The negative and positive impact is seen in the
company. Also how this factors has impacted the overall growth of the company. There are
also various factors which impact the overall decision process of the company in the
competitive market.

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Introduction
The revolution of coca cola began in 1886 by Dr Johns Pemberton a pharmacist; they have
become the leading soft drink company. There are more than over 700, 00 employees
worldwide and coca cola head office is located in Atlanta Georgia. The company also have
team of scientists, marketers and sale people in more than 200 countries. Coca cola in its first
year sold only around 10 bottles per day, at the price of 5 cent. It was first tried by customers
at the local Jacobs chemist. Although there have been a tremendous difference in the market
and in its existence. The company achieved success with a great challenge especially in the
last 2 decades, although recession affected a lot to the company. With the macro and micro
environment challenges coca cola has faced and then also the company is one of the largest in
this sector. By having a mission it can be easy to achieve success. Coca cola mission
statement is to “refresh the world in mind and body and spirit”.
Our mission
we’re driven by three principles which are a standard for our actions and decisions:
 To refresh the world in mind, body and spirit
 To inspire moments of optimism and happiness through our brands and actions
 To create value and make a difference.
Our vision
we’ve come up with a set of goals that outline what we need to do to achieve our mission:
(www.coca-cola.ie)
Coca cola as a market target have a particular targeted market, as their market strategy is to
target all race and age, as they have different ranges of other products. Presently they have
over 15 different brands and plus our famous Ireland deep river rock water.
Coca cola used this statement to achieve their goals in past years, although this achievement
has come with a lot of challenges, this challenges are related with various factors like,
political, economic, social, technological, environmental and legal factors. As these factors
are external, coca cola doesn't have the power and ability to control it as a company. However
using the swot analysis strategy to combat the external factors, by critically evaluating their
strength , weakness, opportunity and threats, internally and both externally either good or

Business Analysis Assignment
bad, this will allow them make a plan, which will help achieve goals of the company, once
this factors are been identify.
The swot and pestle analysis can either be use on company or self, weakness and strength, the
swot analysis was created by Albert Humphrey in 1960- 1970 by using many top company.
Also, this analysis was created centuries after the existents of coca cola, sure 1889 when coca
cola was first created, the legislations and the world has changed in so many ways. There are
many of the macro environmental factors which do not exist and the world wasn’t this
civilized and have lot of health issues as most food where still organically grown and the
world wasn’t over populated, which make coca cola came up with their new idea statement
saying the world as change around us," taste the feeling" is their new way forward and
thinking and long-time market strategy goal. This is the strategy statement below
“We are evolving our long-term business strategy to offers products related to the drinks. We
know that consumers want to manage their sugar intake and that not everyone drinks
sparkling soft drinks. That’s why we are leading with the following plans – both inside and
outside the bottle:
1. We’re reducing sugar and calories across many of our brands
2. We’re offering more new drinks that provide benefits like nutrition and hydration
3. We’re making low and no-sugar drinks the easy choice through our “Hero Zero”
approach
4. We’re giving people the information they need to make truly informed choices.
https://www.coca-cola.ie/about-us/our-way-forward
This campaign was created in 2016.The pestle idea was first initiated by Francis Aguilar a
Harvard university professor. Now let take an evaluation of coca cola
Pestle and swot Analysis
Political Environmental Factors: politically Ireland and coca cola as maintain a very good
relationship in the last 31 years, expect for the recent years, where the company president and
the chief executive Muhtar Kent recently warn the government of Ireland that , it will be
forced to "Riview" its Irish operation if border tariffs are introduce following the new Brexit:

Business Analysis Assignment
currently coca cola employees over 1750 people all over Ireland this could also lead to job
lost an also the new sugar tax which they, have said could affect their operation in Ireland.
This article was published on the 28th of July 2017. “The uncertainty of Brexit compounds
the enormous pressure the [sugar] tax will have on our business and threatens our ability to
continue to invest in our operations here, and to maintain and grow our direct and indirect
employment levels,” this actually brings to the economic factors.
Economical Environmental Factors: the recent brexit as cause economic instability
between Ireland and coca cola which could have great impact on coca cola. Also, it will have
impact on Ireland economy because if coca cola pulls their operation out of Ireland it will
affect Ireland, but will decline in coca cola sales as well, because if coca cola will have to be
exported to Ireland is going to be quiet more expensive and the consumer are price sensitive
especially, because there is competitive market with other brands that could sourced locally
and at a cheaper rate. This was already seen in the American states where soda tax was raised
by 3 cent in Berkley which was later adopted by many other states. It brought decline to
consumption rate of coca cola products and lead consumers to option for cheaper brands.
social environmental factors : There has been a change in people life style in the recent
years due to all modern diseases, the killer of them all, cancer which is said that the main
cause of cancer is sugar as cancer cells feeds on sugar, and obesity as become an epidemic
proportion Ireland. It is said that Ireland is one of the most obsessed country in Europe,
especially among the men. Obesity is also linked with many diseases of the last few
centuries. In the research that was conducted by diabetes Ireland, it is said that 283,000
people in Ireland will have diabetes by 2020, currently 207,000 is living with diabetes, this
survey was conducted 2013 and in this it lives more than 15% of people in Ireland with
diabetes, which is said to have increases but figures not confirmed yet. All this diseases are
been down to the unhealthy life style people are living , and sugar is said to be one of the
main problem of the health issue as is addictive and people consume in excess and the
amount of sugar soft drinks are alarming aware. It is putting economic burden on the
government and on the hse. Coca cola has been aware of the changes people are willing to
make changes, so that they consider the right steps by making healthier options available.

Business Analysis Assignment
Technology Factors:
Legal environmental Factors: the biggest scandal that has affected the coca cola and abroad
is the discrimination employment act between the white and black employee which they were
found guilty and made a huge compensation amount. The law also focuses on the overall cost
of the company. Recently they were also sued over misleading advertisement on diet coke.
Environmental Factors: coca cola has been the biggest and the giant in the soft beverages
industry that produce over 100 billion plastics bottle per year, they have plan recycle 50% of
the bottle, in other to help environmental pollution of world, especially the ocean coca cola as
been acquired of polluting the sea with their bottle after a survey taking. By the coca cola
bottles and can alumnus, a plan has been put in place to recycle can's 100%. Low carbon
effect has been put in place by the government globally and this does not applies to just coca
cola.
Swot Analysis
Strength: the greatest strength that coca cola as been able to main since their existence is that
they have been able to main their position in the market. They have a large market share
globally and especially in the soft drink beverages market sector. They face a lot of
challenges that declined in the share market world-wide.
Weakness
It can be stated that the weakness which is analysed in reference to the company is related
with low product diversification. Pepsi has taken a smart move and also focused on
diversification in the segment of snacks like Lays and kurkure. But Coca Cola is not able to
consider the right move. The company is still focusing on the drink segment which has also
reduced the overall sales of the company in the competitive market (Business teacher, 2018).
Also, the company has faced flak in the pat years just because of the problems related to
water management. There are many groups who enhanced the law suits by taking the name
of the company as due to consumption of more water in the scarce regions also. Competition
with Pepsi is also immense and it can be stated that Pepsi will not give up so easily in the
competitive market (Flynn and Okuonzi, 2016).

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Opportunity
The company has the opportunity to diversify their products in the competitive market. By
diversification in the health and food business will assist in bringing improvisation in the
products of Coca Cola. This will also help to boost the overall revenue of the company in the
competitive market. The supply chain of the company which is focusing on the distribution
of the beverages should also focus on distribution of the snacks as it can help to share the
overall cost of the supply chain. In the overall product portfolio of the company, it can be
seen that there are many products which are not accepted by the customers in the market. The
company should emphasize on marketing the products so that it can be accepted by the
customers in the competitive market. By marketing, it can also be simple for the company to
boost the sales and also revenue in the market (Grant, 2016).
Threat
It can be seen that the indirect competitors of the company is Starbucks, Costa coffee and
café coffee day. Through these chains it can be seen that healthy competition exists in the
market. Also, only of the major competitor of the company is Coca-Cola but it does not affect
the overall beverage market. Also, there are healthy drinks offered in the market like real and
Tropicana and energy drinks are red bull and Gatorade. These companies are grabbing the
large market share of the company in the competitive market. The weakness of the company
is also related with the use of pesticides or the huge consumption of the water. In this the
threat is related with the rise of scarcity of water. Also, by this the company is experiencing
the downfall in the overall revenue of the company in the competitive market (Telegraph,
2018).
Conclusion
It can be concluded and recommended that coca cola should look into branding their own
water all over the world as one, basically given their water one name, just as coke is not as
coke worldwide, the water business is growing as people are becoming more aware of their
health, so they are opting for healthier options. Secondly they should take use of the
opportunity to create more awareness of their healthier options, and make people more aware
of their health of beverages. It can be seen that the innovation option is there but the
consumer are not aware of this, from what it can be easy to gather from the people. Also, it is

Business Analysis Assignment
important to make it available world-wide, as there are rivals like PepsiCo. Lastly they
should become more diversify and look beyond just drinks and look into healthy snacks.
Bibliography
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-Cola's new pack line-up will offer people simple choices when
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[Accessed on 11 December 2018].
Coca Cola.2018. About us.[Online] Available from:
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The Lancet, 387(113), p.25.
Grant, R.M., 2016. Contemporary strategy analysis: Text and cases edition. John Wiley &
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[Accessed on 11 December 2018].
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Business Analysis Assignment
Telegraph. 2018. Threat' by Coca-Cola to cut investment over sugar tax.[Online] Available
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Business Analysis Assignment