Analysis of Coca-Cola's Global Business Environment and Strategies

This report provides a comprehensive analysis of Coca-Cola's global business environment. It begins with an introduction to the company and its global operations, followed by an examination of its internal and external environments. The report includes a SWOT analysis to identify strengths, weaknesses, opportunities, and threats, as well as a TOWS analysis to develop strategic recommendations. It also explores the operational impacts on the marketing and operational departments, discussing marketing strategies, promotional activities, and the role of the operational department in production and quality control. The report concludes with a summary of key findings and strategic suggestions for Coca-Cola to maintain and enhance its position in the global market, referencing various academic sources to support the analysis.

Global Business Environment

Executive summery
This report is prepared for analysing the global business environment of Coca-Cola. The
internal and external environmental analysis of Coca-Cola is also explained here. However,
the SWOT analysis of Coca-cola states that the financial position, brand image and the
marketing activities of organisation helps the organisation to diversify its business
worldwide. Besides, Coca-cola can use digital marketing strategies for getting more
consumers.
Table of Contents

Introduction................................................................................................................................4
Portfolio: 2 (SWOT analysis).....................................................................................................5
Internal environment..............................................................................................................5
Competencies and capabilities...............................................................................................5
SWOT analysis.......................................................................................................................6
TOWS analysis.......................................................................................................................8
Portfolio: 3 (Operational impact analysis)...............................................................................10
Marketing department..........................................................................................................10
Operational department........................................................................................................10
Conclusion................................................................................................................................12
References................................................................................................................................13
Appendix..................................................................................................................................14

Introduction
Coca-Cola is the 2nd largest beverage-based company in the world which was established in
1886 in the USA. Currently, Coca-Cola is operating its businesses in 200 countries with 400
brands and 3300 beverage based products. This report will discuss the global business
strategies and environment of Coca-Cola for operating the company more effectively in the
global.

Portfolio: 2 (SWOT analysis)
Internal environment
The set of elements that composed the structure of an organisation is called internal
environment (Abell, 2013). The internal environment of Coca-Cola is consisted of the
workforce, management and shared culture of the organisation. By analysing the internal
environment, the managers of Coca-Cola can assess the strengths and weakness of the
organisation.
Figure 1: Internal environment of Coca-cola
Source: (Ansoff, 2011)
Competencies and capabilities
Competencies mean the particular qualification of the employees of an organization for
executing the strategic plans of the organization (Best, 2011). The competencies of Coca-
Cola are combined by the skills, attributes and behaviours of the employees of the
organisation. If an organisation can identify its competencies they it will be easier for the
organisation to make strategic plans for the organisation.
HumanResourceManagementPhysicalResource

Figure 2: Competencies of Coca-cola
Source: (Andrews, 2014)
The way of using all the resources of an organisation effectively to fulfil the goals of the
organisation is called capabilities of the organisation. By transferring the knowledge and
skills of the organisation among the different departments Coca-Cola utilises its capabilities.
Distinctive competencies and distinctive capabilities
The special competency of Coca-Cola that fulfils the needs of the consumers and provides
competitive advantage for competing with the rivals is known as distinctive competencies
(Barringer & Ireland, 2016). The marketing strategies and activities of Coca-cola is the
distinctive competency of Coca-cola. Besides, the pricing method of Coca-cola is
comparatively economic than Pepsi and Red Bull.
The way of creating rational contacts with the stakeholders of the organisation for getting
competitive advantages from the market is called distinctive capabilities. The organisational
structure and the brand value of Coca-Cola are considering the distinctive capabilities of the
organization.
SWOT analysis
The way of assessing the internal strengths and weakness of an organization and finding the
external threats and opportunities of the organization for creating strategic plans for the
organisation is called SWOT analysis.
GrowingmindsetFocusonconsumersProductdifferentiationCreatesuccessfulteamEmotionalintelligenceAccountiblityandresponsiblities

Figure 3: The meaning of SWOT
Source: (Baltzan& Phillips, 2018)
Significance of SWOT analysis
By conducting SWOT analysis Coca-Cola identifies its distinctive competencies and
capabilities and makes competitive strategic plans for the organisation (Baltzan & Phillips,
2014). Coca-Cola uses SWOT analysis for reducing the external threats of the organization
like reducing dependency on the retailers, taking legal helps for the imitable products and
decreasing the influence of the competitors. SWOT analysis helps Coca-Cola to measure the
feasibility of the PESTLE analysis. However, the findings from SWOT analysis help Coca-
Cola to grab new opportunities like launching non beverage products for expanding the
business. Besides, Coca-Cola can reduce the weaknesses of the organisation by marketing on
the digital platform, grabbing new market and using latest technologies.

Figure 4: SWOT analysis of Coca-cola
Source: (Beer, 2019)
TOWS analysis
To implement the findings of the SWOT analysis Coca-Cola uses the strategic approach of
TOWS analysis. The TOWS analysis of Coca-Cola is presented in the following section:
StrongbrandvalueProductdifferentiationEconomiesofscaleAvailablegloballyDistributionchannelPricingmethodCSRactivitiesMarketingactivitiesImitableproductsHeavydependencyonretailerLimitedbusinessdiversificationSwitchingcostsSubstituteproductsLabourissueOperatingbusinesswithglobalgiantslikePepsi,Tropicana,BritvicHugemarketingandoperatingcostsBusinessdiversificationInnovativehealthrelatedproductsR&DinitiativesDevelopingeconomyLifestyleofmillennialgenerationMarketingonsocialmediaWesternincreasedinfulenceSocialandenvironmentresponsibilityAsianmarketTechnologicalimprovementImitateproductsDominanceoftheretailersNon-beverageproductsPopularprivatebrandsRivalorganizationsEnviornmentregulationsNewentrantsBrexitInterestratefallingEconomicrecession

Figure 5: TWOS analysis of Coca-cola
Source: (Ansoff, 2011)

Portfolio: 3 (Operational impact analysis)
Marketing department
To create and capture values for the customers of the organisation Coca-Cola uses marketing
mix and various marketing strategic approach. The marketing process of Coca-Cola starts
with researching the market situations and the needs and demands of the potential customers
of the organisation (Beer, 2019). Based on findings from the research Coca-Cola creates
consumer-based marketing strategies to fulfil the demands of the consumers. Then the
marketing department of Coca-Cola uses marketing mix to build a profitable relationship
with the consumers and capture value from them through the beverage products of the
organisation.
The marketing department of Coca-Cola is responsible for creating strategic plans and
implement the strategic plans of the organization. To increase the brand value of the
organisation they conduct various promotional activities. Coca-Cola can grab the USA
market by creating patriotic advertisement and using the local models for the promotional
activities of the organisation.
Promotional strategies of the competitors like Pepsi can influence overall the marketing
performance of Coca-Cola (Argyris, 2015). Besides, the rules and legal issues of the UK can
also affect the activities of the marketing department of Coca-Cola. However, the marketing
department of Coca-Cola can reduce the threat by diversifying the product portfolio of the
organisation in the UK.
The weakness of the marketing department of Coca-Cola is that their advertisement strategies
are very primitive. Besides, Coca-Cola spends huge amount on the promotional activities of
the organisation like sponsoring on the global sport events. By using digital marketing
strategies and social media platforms Coca-Cola can decrease the weakness of the marketing
department.
Operational department
The operational department of Coca-Cola manages the production process of the organisation
by designing the products, controlling the quality of the products and utilising the machines
and workforce of the organisation. The production department of Coca-Cola helps the
organisation to achieve operational excellence so that the organisation can produce products

economically. Besides, the operational department ensures the quality of the products of
Coca-Cola.
The powerful and effective equipment of Coca-Cola help the organisation to offer quality
products to the customers of the organisation. Besides, the skilled employees of the
operational department of Coca-Cola help the organisation to produce products economically.
However, Coca-Cola can take the opportunity of spreading its business from beverage
industry and increasing its market based on the effective operational system of the
organization.
As the economic conditions of the maximum people of the UK is not good so Coca-Cola can
reduce the price of the products toget competitive advantage from the market by using
various operational strategies. By hiring more skilled employees and conducting on-going
professional development programs for them Coca-Cola can reduce the weakness of the
operational department. Moreover, SWOT analysis helps Coca-Cola to meet the mission,
vision and business objectives of the organisation by creating strategic plans for the
organisation.
Conclusion
As a global leading beverage company Coca-Cola needs to hold its position in the global
market by creating and implementing different business strategies. Various internal and
external environmental strategic approach like SWOT analysis, PESTLE analysis and TWOS
matrix will help Coca-Cola to make effective strategic plan for the global market. After
conducting SWOT analysis, this report proposes strategic plans for the organization.