Coca Cola Management Strategies Report

This report provides an in-depth analysis of Coca Cola's management strategies, including its historical and current approaches, SWOT and PESTLE analyses, and leadership styles. It highlights the company's evolution and adaptation in the competitive beverage market, showcasing its strengths, weaknesses, opportunities, and threats. The report serves as a comprehensive resource for understanding Coca Cola's strategic positioning and operational effectiveness.

Running head: INTRODUCTION AND MANAGEMENT OF COCA COLA
INTRODUCTION AND MANAGEMENT
Name of the Student:
Name of the University:
Authors note:

1INTRODUCTION AND MANAGEMENT OF COCA COLA
Executive Summary
This report discusses about Coca Cola and how the company has sustained in all these years. It
gives a report on its current strategies and will show its core mission and vision of the company.
It will give the report on the types of strategies that how the company has survived and planned
its growth and development of the company. It will also discuss its criticism of their business
practice and hence it will give an outline of its outcomes. Further it will give SWOT and
PESTEL analysis to understand the positives and negatives of the company. It will also show the
organizations leadership style to further discuss about its production.

2INTRODUCTION AND MANAGEMENT OF COCA COLA
Table of Contents
Introduction......................................................................................................................................4
Past Strategies..................................................................................................................................4
Current Strategies............................................................................................................................5
Journey of Coca-Cola Strategy........................................................................................................6
SWOT ANALYSIS.........................................................................................................................6
Strength........................................................................................................................................7
Weakness.....................................................................................................................................7
Opportunities...............................................................................................................................7
Threats.........................................................................................................................................8
PESTLE Analysis............................................................................................................................9
Political Factors...........................................................................................................................9
Economical Factors.....................................................................................................................9
Social Factors...............................................................................................................................9
Technological Factors................................................................................................................10
Legal Factors.............................................................................................................................10
Environmental Factors...............................................................................................................11
Leadership Style used by Coca Cola.............................................................................................11
Conclusion.....................................................................................................................................12
References......................................................................................................................................13

3INTRODUCTION AND MANAGEMENT OF COCA COLA
Introduction
Coca Cola is one of the leading and most famous companies. It has a huge market and
has been in the industry since 1886. Coca Cola thrives for the next ten years and beyond, they
understand their forces and trends that will shape their business in the future in order to move
swiftly to prepare what is coming next. Their mission is stable, permanent and durable. This
declares the purpose of the company as it serves their decisions and action to make a difference
and create a value for the company, to inspire people’s moments of happiness and positivity and
also the main mission is refresh the world with their drink (De, 2013). There vision serves as
their framework for their guides and roadmap which describes and guides every aspect of their
business that they need to accomplish in order to continuing achieving, quality growth and
sustainable power. They want their employees to be comfortable and give the best work and be
inspired, they want to bring a portfolio of quality beverage brands which anticipate and satisfy
people’s needs and desires. Another important vision of this company is to nurture a winning
network of customers and suppliers, which together they create mutual and long-term value.
They also want to maximize long-term return to shareowners while being mindful of their overall
responsibilities and the company wants a fast-moving and highly effective organization.
Past Strategies
Coca Cola had a long and eminent history of marketing success. It’s an old company and
therefore in the past it had different sets of strategies. Its advertising is much of what has made
the brand the powerhouse that it is today. However they have taken various wrong steps like
introducing the New Coke, which failed badly in the market. New coke came in the market when

4INTRODUCTION AND MANAGEMENT OF COCA COLA
the company decided to terminate the most popular soft drink and replace it with a formula. New
coke was a huge brand failure of Coca cola brand (Lussier & Achua, 2015). The competition in
that time was close between Pepsi and Coca cola and even decades prior to the launch of New
Coke. In the past their strategies mostly depended on their consumers and share holders as the
concept of social media was not there in those times. Their strategies mainly reflected on their
advertisement and billboards. However as Pepsi repositioned itself as a youth brand, this gave
their older customers to Coca Cola, but Pepsi’s sweeter formula became a hit. Coca learned that
marketing is much more than the product itself. For instance when the advertisement of New
Coke when it came on the TV it ran with an old man sitting on a park bench staring at the can in
his hand, and he said “they changed my Coke”, it was said in clear distress, further he said “I
can’t believe it”. This strategy failed as it demoralized the new old customers. ( Johnston &
Marshall, 2016) Earlier their strategies were to clone the rivals which went wrong, the market
research was not clear, they believed in ‘marketing is a battle of perception, not product’.
Current Strategies
Coca cola is running in 200-plus nations and each of those nations plays an important
role in their growth plan. Their main strategies is to focus on the driving the profit growth and
revenue, they segment their revenue growth across the business in their varied type of market.
Coca cola’s market primarily focuses on increasing volumes, keeping affordable beverages and
strengthening the foundation of the future success (Reilly & Hynan, 2014). They struck a balance
between pricing and volume. Their strategy in segmentation has proved to be a hit. Another
strategy of theirs is that they invest on their brands and business. At present they are focusing on
investing and expanding their brand portfolio. They spend a lot on advertising media by more
than $25o million, to give more impactful and stronger ads. Earlier they introduced New Coke

5INTRODUCTION AND MANAGEMENT OF COCA COLA
and to an extend thy tried to copy Pepsi, but now they are more independent in their ideas like
Diet Coke, Coca Cola Life and Coke Zero. Their brand strategy was to tell their consumers that
now they have an option to choose between Coca-Cola which has calories, to move to fewer
calories or no calories. By giving this choice to each individual it became refreshing ideas (Holt,
2016).
Journey of Coca-Cola Strategy
It is obvious by the previous report that how their strategies have changed through years
and with that the growth and development of the company also increased. They became more
efficient, they took steps to rebuild their growth momentum, and they invested more for better
marketing and also amplified their financial flexibility. These resulted in the increment of their
productivity and efficiency while reducing the costs. Overall they were able to get more than
$600 million in the improvement of productivity that they used to invest further in their business
and brands and also to give back their shareowner. They have simplified their company with
time and strategized according to their preferences and taste, which coupled with new
innovations in the supply chain and retail landscape, with empowered employees that win the
marketplace. They took new steps to reshape the company’s business and refocused on their core
business. Today they have more than 500 brands, which include juices, juice drinks, coffee, tea
sports drink, enhanced hydration and sparkling beverage (Dawar, 2013). They have introduced
different typed of vending machines which also attracts the customers. This shows the growth
and development of the company with its change in strategy from the past to present.

6INTRODUCTION AND MANAGEMENT OF COCA COLA
SWOT ANALYSIS
To understand the growth and development of the company it is very important to
analyze the company’s strength, weakness, opportunities and threats.
Strength
Coca Cola has an implausible brand identity. This brand name is a home name for
millions around the world. The valuation of this company is around 79.2 billion dollars, this
valuation includes, numerous factories, brand values and assets spread across the world. It also
includes the vast global presence of the company which means the company is presented in 200
countries across the world. It also has the biggest market share. They have a strong customer
loyalty and the taste of Coca cola makes it easy to identify and hard t find a substitute for their
customers (DuBrin, 2015). They have the largest distribution of network which is another huge
strength of theirs. There market demand is very high, has a successful distribution of network.
Weakness
One of the main weaknesses is their competitor Pepsi. Even though Coca Cola seems to
be leading, but it could win the market completely if Pepsi was not there on their way. Another
important factor is the low product diversification; Pepsi has expanded into producing snacks
segments with products like Kurkure, Lays, but Coca cola is missing from that segment. People
have become concerned with diabetes and obesity. Coca cola is a major carbonated drink
manufacturer which can cause obesity.
Opportunities
Coca cola can create their own products and can diversify their present offerings. They
already have their brand identity, customers and manufacturing evaluation to back this up. Coca

7INTRODUCTION AND MANAGEMENT OF COCA COLA
cola is present in 200 countries, but however they could focus more on moving into developing
countries which has more humid characters. These countries will welcome Coca Cola more than
because of their climate condition. Coca Cola has a presence in the packed drinking water
segment through Kinley, hence Coca Cola should focus on the expansion of Kinley as a brand
and take up to Bisleri’s trust level. They should also keep a check on their supply chain as their
business is hugely based on the distribution and transportation. Coca Cola needs to focus on the
marketing of the product portfolio to get acceptance in the market. However Coca Cola has made
several expenses to launch these products in order to increase the sale which will help revenue of
Coca Cola.
Threats
Coca Cola was alleged of using pesticide in their water; however the water is also
becoming limited because of their climate change. Coca cola will need plenty of water in order
to build their empire. Coffee chains like, Café coffee Day, Starbucks are on the rise. These are
often considered to be a competition of Coca Cola.
STRENGTH Valuation of the company, Brand Equity, Huge
Global Presence, Biggest Market share, Superb
marketing strategies, Loyalty of the Customer,
Network Distribution.
WEAKNESS Competitions, Diversification of Product is low,
Heath beverage absence, Management of Water
OPPORTUNITY Diversification, Developing Nations, Packaged
drinking Water, Improvement of Supply Chain,

8INTRODUCTION AND MANAGEMENT OF COCA COLA
Lesser Selling product in the Market.
THREATS Indirect Competitors, Raw Material sourcing.
PESTLE Analysis
This analysis will help understand the political, economical, technological, legal and
environmental factors.
Political Factors
Coca Cola products are at the sympathy of FDA, it is certain that they meet regulation in
order to put the products on the shelves of the store. Accounting taxes, internal marketing and
changes in labor may affect Coca Cola.
Economical Factors
Coca Cola are distributed in 200 countries. These countries have varied cultures,
customs, desires and tastes. However Coca Cola has updated from before and has updated its
products by producing new flavors to accommodate their customers. They have more that $80
billion worth equity. However people are looking for healthy drinks these days but Coca Cola is
taking minimum efforts to move in that direction.
Social Factors
Coca cola distributes the majority of its products in good cultured countries. Therefore
they meet the demands of these customers, for instance in Japan they created 30 alternatives
flavors to attract the Japanese consumers. They are making similar efforts in China. However in
America they are more focused on their health, therefore there replacing sugary drinks for waters
and teas as these drinks are better for their health. In the figure below, the amount of coca cola
consumed in the US has experienced a firm decline in the past 15 years.

9INTRODUCTION AND MANAGEMENT OF COCA COLA
Technological Factors
Machinery has helped Coca Cola to manufacture better and higher quantity of products.
Coca Cola has its factories in Britain with top machineries that ensure fast delivery and the
development of quality of product. With the change in the society, the social media also plays a
huge role in the growth of Coca Cola. It helps the company to connect better with its audience
and introducing picture of the bottles with their mane on it. The pictures are given on all the
social media sites like, Facebook, Instagram and many more.
Legal Factors
Coca Cola holds all its rights related to their business, including future and past
developed products with a original process.

10INTRODUCTION AND MANAGEMENT OF COCA COLA
Environmental Factors
Water is dominant factor for Coca Cola and it cannot function without it, in that case if
the climate changes then the company will face a huge loss. Though this will also hamper their
competitors as well, but because Coca Cola is a soft drinks company, with the accessibility of
water, the company will suffer a huge loss. Coca Cola has to adhere to environmental laws as
they manufacture their products (Coleman, 2013). Therefore they depend a lot on environment.
They also take advantage of the places that has humid climate as people prefer cold drinks in
order to cool down.
Leadership Style used by Coca Cola
Coca Cola has a very effective leadership and there can be no replacement for their
strategic thinking and relentless and tireless execution. They have transformational leadership, as
there can be no alternative for retaining and attracting the best people to lead and create a
dynamic environment for them. Nothing can be more effective than transforming leadership, as it
changes as per the necessity of the organization as well as the change in the society and the needs
of the consumer and the stakeholders. Coca Cola has achieved this by formulating a clear and
compelling vision, by getting their system aligned behind it b y continuously executing and
communicating with the outer words. Their employees are enthusiast in nature and has worked
very hard to help the company to reach the position where it now. This leadership has helped the
company to harness new wealth, new beverage requirements and new innovations to accelerate
growth and create the world’s most respected consumer goods system. This new wave and
adapting new techniques and innovation has helped the company to grow, therefore this
leadership has helped the company’s employ to align behind the vision of the company’s growth
(Ayub, Muhammad & Hanan, 2013).

11INTRODUCTION AND MANAGEMENT OF COCA COLA
Conclusion
The Coca Cola Company has come a long way with the above mentioned strategies,
vision, mission and analysis. The company has proved its standard and has developed a close
leadership with its franchisees based on the mutual concern of equality. This report will help to
analyze the position of the companies and will help to measure the exact growth of the company.

12INTRODUCTION AND MANAGEMENT OF COCA COLA
References
Albert, P. J., Werhane, P., & Rolph, T. (2014). Introduction. In Global Poverty Alleviation: A
Case Book (pp. 1-11). Springer Netherlands.
Ayub, A., Adeel, R., Muhammad, S. A., & Hanan, I. (2013). A conceptual framework on
evaluating SWOT analysis as the mediator in strategic marketing planning through
marketing intelligence. European Journal of Business and Social Sciences, 2(1), 91-98.
Coleman, J. (2013). Six components of a great corporate culture. Harvard Business Review, 5(6),
2013.
Dawar, N. (2013). When marketing is strategy. Harvard business review, 91(12), 100-108.
De Mooij, M. (2013). Global marketing and advertising: Understanding cultural paradoxes.
Sage Publications.
De Mooij, M. (2013). Global marketing and advertising: Understanding cultural paradoxes.
Sage Publications.
Doh, J. P., & Quigley, N. R. (2014). Responsible leadership and stakeholder management:
Influence pathways and organizational outcomes. The Academy of Management
Perspectives, 28(3), 255-274.
DuBrin, A. J. (2015). Leadership: Research findings, practice, and skills. Nelson Education.
Grant, R. M. (2016). Contemporary Strategy Analysis Text Only. John Wiley & Sons.

13INTRODUCTION AND MANAGEMENT OF COCA COLA
Holt, D. (2016). Branding in the age of social media. Harvard business review, 94(3), 40-50.
Johnston, M. W., & Marshall, G. W. (2016). Sales force management: Leadership, innovation,
technology. Routledge.
Johnston, M. W., & Marshall, G. W. (2016). Sales force management: Leadership, innovation,
technology. Routledge.
Ling, X. (2017). Customer Relationship Management: Case study Coca-Cola Company.
Luippold, G., Rummel, C., & Storti, T. (2014). U.S. Patent No. D709,722. Washington, DC:
U.S. Patent and Trademark Office.
Lussier, R. N., & Achua, C. F. (2015). Leadership: Theory, application, & skill development.
Nelson Education.
Moodie, R., Stuckler, D., Monteiro, C., Sheron, N., Neal, B., Thamarangsi, T. & Lancet NCD
Action Group. (2013). Profits and pandemics: prevention of harmful effects of tobacco,
alcohol, and ultra-processed food and drink industries. The Lancet, 381(9867), 670-679.
Northouse, P. G. (2017). Introduction to leadership: Concepts and practice. Sage Publications.
Reilly, A. H., & Hynan, K. A. (2014). Corporate communication, sustainability, and social
media: It's not easy (really) being green. Business horizons, 57(6), 747-758.
Van den Driest, F., & Weed, K. (2014). The ultimate marketing machine. Harvard Business
Review, 92, 54-63.
Williams, C. (2015). Effective management. Cengage Learning.