Coca-Cola's Strategic Planning: A Case Study in Global Competition

This case study analyzes Coca-Cola's strategic planning, focusing on weaknesses, threats, strengths, and opportunities in the global market. It highlights the company's declining revenue and the need for strategic adjustments, particularly in product diversification and sustainability. The study suggests a shift towards healthier beverage options to compete with brands like PepsiCo and Dr Pepper, and emphasizes the importance of environmental responsibility through waste management and eco-friendly practices. Furthermore, the case study proposes a revised vision and mission statement to enhance workforce efficiency, product innovation, stakeholder relationships, environmental stewardship, and profitability. The goal is to regain customer confidence, maximize revenue, and address environmental concerns effectively.

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Coca Cola Case Study
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Exercise 1A
There are huge understanding regarding the weakness and threats that Coca cola
Company is facing in order to maximise its revenue and market capitalisation. The annual report
of the company in 2017 articulated that a percentage of 15% had been declined due to the lack of
effective plan that the organisation was setting (coca-colacompany.com, 2017). As far as the
strengths and opportunities are concerned, it can be stated that market capitalisation and the
operating margin of Coca cola Company is $197B and 24.14% respectively. It makes the
corporation increase its interest expense and non-recurring events to a great extent that will
facilitate opportunity towards near future. Apart from that the role of the increase in global
competitors also makes weakness and threat with a vulnerable situation for Coca cola Company
to continue its business further sustainably. As a result of that the company definitely requires a
proper strategic planning that will deliver a strategic advantage for Coca cola Company in the
global competitive market. Besides to deal with high competitiveness, it is also essential for the
company to set adequate measures for its social responsibility framework. Based on this
understanding, it can be stated that the strategic planning of Coca cola Company will be based on
two interlinked aspects such as operational development and progress in sustainability.
As far as the operation and production of Coca cola Company is concerned, it can be
stated that product diversification strategy should be the best possible mode for achieving
success effectively. However, from the annual report it was found out that the organisation has a
range of diverse products but a close introspection into the product ranges confirms that those
products are not fit with the current demands of the customers. In compare to the rival brand
Pepsi Co., despite of having better market capitalisation of Coca cola Company the organisation

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failed to generate revenue more than Pepsi. Perhaps, the energy drinks and healthy drinks that
Pepsi Co. has offered are not offered by Coca cola Company for generating more customers. The
current market trend rigorously points out the health consciousness among the customers.
According to the Annual Report 2017 of Coca cola Company approximately 63% of the total
beverage lovers are highly fond of healthy drinks rather than intake carbonated water (coca-
colacompany.com, 2017). As a matter of fact, the profit margin of Dr Pepper is also higher than
Coca Cola despite of having lesser market capitalisation. Dr Pepper only produce healthy juice
and flavours that makes the organisation highly successful despite of having great
competitiveness with giant beverage companies like Coca Cola and Pepsi.
On the other hand, a better sustainability framework is also important for Coca cola
Company to regain the confidence and appreciation of its customers. Apart from following the
social responsibility and puts high emphasis on its employees considering the environmental
concerns is also identified as an effective practice that Coca cola Company should follow (coca-
colacompany.com, 2019). It means, the company should initiate an environmental measure
though campaigns and waste management in progress. Different private organisations have
claimed that the company does not take seriously its damage to the nature. Therefore, the eco-
friendly strategy of using recycled plastic bottles and using more tetra packs can disengage the
company with the allegation of damaging the nature.
Exercise 2A
The vision statement of the organisation has to be changed in order to get maximise its
revenue and the process in making a better marketing exposure in the international market. The
decrease in the 2016-17 revenue of Coca cola Company proves that the organisation does not

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seem to have proper visions to cope with the global demand and aspirations. Therefore, it needs a
complete review of the organisational vision of Coca cola Company.
Henceforth, the revised vision of Coca cola Company is as follows,
People- To have an efficient workforce where quality of product and service can be met with top
priority.
Portfolio- To take adequate efforts for coping with the changing demands of the customers and
anticipate their desires positively.
Partners- To make a transparent and fair relationship with the suppliers and distributors so that
both the company and its stakeholders can get benefits.
Planet- To establish a better corporate orientation towards safeguarding the environment.
Profit- Maximise the revenue earning and return it to the shareholders with great responsibilities.
Productivity- To emphasis on high creativity and innovation in production to offer unique and
healthy beverages to the customers
Exercise 2B
Due to decline in the profit percentage of Coca cola Company, it becomes an important
aspect for the corporate organisation to set a mission statement for setting a benevolent message
towards the environment and its customers. It is essential for the organisation to retain its
existing customers and maximise profit percentage though using environmental responsibilities
effectively. Therefore, the mission statement of the organisation is “to refresh the world with the
unique products and services that can enrich the living and facilitate happiness.”

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Reference
coca-colacompany.com. (2019). Mission, Vision & Values. Retrieved from https://www.coca-
colacompany.com/our-company/mission-vision-values
coca-colacompany.com. (2017). Annual Report 2017. Retrieved from https://www.coca-
colacompany.com/content/dam/journey/us/en/private/fileassets/pdf/2018/2017-10K.pdf