Strategic Management Report: Trends, Risks, and Strategic Options

This comprehensive strategic management report delves into various aspects crucial for an organization's growth and sustainability, focusing on Coca-Cola. It examines both internal and external environments, resource capabilities, and potential market challenges. The report includes detailed trend and sensitivity analyses, risk assessments, and strategic options, with a particular emphasis on customer feedback. It explores strategic direction, assessing suitability, acceptability, and feasibility across multiple dimensions. The report also covers internal development, e-commerce considerations, implementation, and control mechanisms, including alignment of company structure, project monitoring, and change management strategies. References are provided to support the analysis and recommendations, offering a holistic view of strategic management principles applied to the case study. The report available on Desklib, provides valuable insights for students studying business development.

Running head: STRATEGIC MANAGEMENT
STRATEGIC MANAGEMENT
Name of the student
Name of the university
Author note

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Executive summary
The report is aimed at the understanding the various aspects of the internal and the external
environments which determines the growth and sustainability of the organization in the market.
The report helps in understanding the resource capability of the organization in the market and
the competencies that might be faced while operating in the international markets. The report
also enumerates certain recommendations and an action plan for defining the actions that the
organization might take in order to bring in improvements in the market situation.

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Table of Contents
Task 2...............................................................................................................................................4
Recommendations............................................................................................................................4
5. Trend and Sensitivity Analysis................................................................................................4
6. Risk Assessment......................................................................................................................6
7. Strategic options......................................................................................................................8
8. Strategic Direction.................................................................................................................10
8.1 Suitability.........................................................................................................................10
8.1.1 Suitability to Resource Base.........................................................................................11
8.1.2 Suitability to Culture.....................................................................................................12
8.1.3 Suitability to Purpose of the Company.........................................................................13
8.1.4 Suitability to Stakeholders............................................................................................13
8.1.5 Summary of Suitability.................................................................................................13
8.2 Acceptability....................................................................................................................14
8.2.1 Acceptability of Business Model.............................................................................14
8.2.2 Acceptability to Ethics and Social Responsibility...................................................15
8.2.3 Acceptability to Knowledge Management...................................................................16
8.2.4 Acceptability to Technology....................................................................................17
8.2.5 Acceptability using Blue Ocean Strategy................................................................18
8.2.6 Summary of Acceptability Analysis........................................................................19

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8.3 Feasibility....................................................................................................................20
8.3.1 Internal Feasibility Checklist...................................................................................20
8.3.2 External Feasibility Checklist..................................................................................22
8.3.3 Financial Feasibility Checklist................................................................................23
8.3.4 Break Even Point..........................................................................................................23
8.3.5 Summary of Feasibility............................................................................................24
9. Internal Development..................................................................................................24
10. E-Commerce...................................................................................................................25
11. Implementation and Control...........................................................................................25
11.1 Alignment of Company Structure............................................................................25
11.2 Elements of the Implementation Process.................................................................25
11.3 Project Monitoring and Control...............................................................................26
11.4 Green Strategy.........................................................................................................26
11.6 Managing Change....................................................................................................27
11.7 Managing Strategic Leadership.....................................................................................27
11.8 Business Plan.................................................................................................................27
11.9 Implementation plan......................................................................................................27
References......................................................................................................................................28

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Task 2
Recommendations
5. Trend and Sensitivity Analysis
Elemen
t
Particulars Sensitivity Issues Opportunity/
Threat
Rating
P The coca cola products are
maintained based on the rules and
the standards that are being laid by
the legislations.
The change in the
established rules and
legislations of the nations
where the company operates
and distributes affects the
functioning of the
organization in the market
It acts as a
threat for the
company’s
growth
2
E The huge financial and economic
resources have helped the
company in entering the
construction industry.
Acquiring the plots and the
spaces from the people
through the implementation
of huge financial resources
without proper negotiation
It acts as an
opportunity
7
S The company is facing
competency in the international
markets based on the preference
and the tastes of the customers.
The lack of awareness
among the people due to the
evolving industrial
background of the
organization
It acts as a
threat for the
organization
5
T Machinery that is being used by
the company ensured the
productivity of the organization in
the market. It has helped in
increasing the productivity with a
keen eye on redeeming the quality
of the Construction.
Obsolete machinery might
affect the structure of the
buildings which might affect
the wellbeing of the
customers of the
organization.
It can be taken
as a threat
2
E Water accessibility is one of the
major aspects that affect the
productivity of the organization in
the market. On the other hand, the
proper supply of the raw materials
that are required for construction is
to be managed in order to ensure
the smooth functioning.
The abrupt functioning of
the organization will be
affecting the trust and the
loyalty of the customers.
It is a threat for
the organization
4
L The company reserves all rights
relating to the constructions
undertaken by the same. The
patent and the legislation of the
company are based on the strict
adherence to the decisions that are
The rights and the patents
that are held by the
organization might bring in
discontent among the other
builders and the society.
It is again a
threat for the
organization
6

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taken by the management of the
organization.
6. Risk Assessment

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Risk Effect on the
company
Mitigating
factors
through
PRAM
Rating
Sourcing of the raw
materials
Lower productivity Immediate
response- In
order to
facilitate the
smooth
functioning of
the
organization,
the company
might
undertake a
survey and
thereby collect
the responses
from the
suppliers
relating to the
inconvenience.
5
Indirect
competitors in the
market
Tough competition Forming a
contingency
report and
evaluation of
the
competitive
and the
capability
analysis of the
organization
for sustaining
in the market
3
Financial capabilities The lag in the
financial capabilities
might drown the
cause of the project
in the market
Undertaking
internal and the
external audits
helps in
determining the
costs that might
be incurred by
the organization
while
undertaking the
change
7
Power of outsourcing The lack in the
power of outsourcing
of the functions
affects the smooth
functioning of the
organization in the
market
Determining the
different scopes
of getting the
processes
outsourced in the
market and the
different
channels of
getting the task
6

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7. Strategic options
Creating
brand
awareness
Quality
management
Customer
service
Customer
feedback
JUSTIFICATION
Protection 4 0 0 0 It helps in
maintaining the
sustainability of
the organization in
the market
Effective
Financial
Structure
0 0 7 0 Financial structure
of the organization
facilitates it in
providing the best
services to the
clients
Asset
Quality
0 8 0 0 The quality of the
asset helps in
determining the
quality of the
products and their
management that
is being
undertaken by the
organization.
Rates of
Return and
Cost
0 5 0 0 The profitability
of the organization
is based on the
proper
management of
the quality of the
constructions and
the customer
satisfaction.
Liquidity 0 0 6 0 The liquidity of
the assets and the
other elements
helps the
organization in
providing the
customers with the
desired services.
Sings of
Growth
0 0 0 9 The growth of the
organization is
based on the
customer
feedbacks through
which the

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company can
bring in
improvements in
the structure and
the functioning of
the organization.
8. Strategic Direction
The selected option is Customer feedback.
8.1 Suitability
Elements Observations Suitable/ Not suitable Rating
Resources and capabilities Financial, technological assets
and human resource
Suitable 6
Importance of resources It helps in ensuring the proper
functioning of the organization
Suitable 7
Importance of the resources in
the strategy formation
The resources helps in
understanding the capabilities of
the organization
Suitable 5
Improvement in the competitive
advantage
The proper allocation of the
resources helps in determining
the progress of the organization
Suitable 3
Other company resources An evaluation of the resources
of the other companies helps the
concerned company in bringing
in modifications in the usage of
the resources
Suitable 7
8.1.1 Suitability to Resource Base
Elements Observations Suitable/ Not suitable Rating
Innovative capability Huge financial resources Suitable 2
Truly competitive Huge competitors in the market Not Suitable 7
Substitutability Substitute constructors are
available in the market
Suitable 6
Appropriability Based on the needs of the
people
Suitable 8
Durability The quality of the construction
helps in determining the durable
nature
Suitable 3
Imitability The competitors might imitate
the product
Suitable 9

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Prior or acquired resources Huge acquisition of the
resources
Suitable 7

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8.1.2 Suitability to Culture
Elements Observations Suitable/ Not suitable Rating
Stories People are made aware of the
new venture that the coca cola
company is undertaking
Suitable 5
Symbols The logo of the organization
and the other possible symbols
for making the people aware of
their venture
Suitable 6
Power structures Management board and the
CEO of the company
undertakes the decision for
growth of the organization
Suitable 3
Organizational structure The hierarchy of the corporate
culture is being followed by the
organization for maintaining the
proper functions
Suitable 8
Control systems Autocratic governance in the
systems
Suitable 7
Routines and rituals Sales achievement and the
prolonged customer service
adhering to the feedbacks
Suitable 9
8.1.3 Suitability to Purpose of the Company
Elements Observations Suitable/ Not suitable Rating
Providing low budget buildings Helps in attracting the attention
of the customers
Suitable 6
Ensuring the quality of the
constructions
Retention of the customers Suitable 5
8.1.4 Suitability to Stakeholders
Elements Observations Suitable/ Not suitable Rating
Employees Motivated workforce of the
organization and retention
Suitable 5
Shareholders Returns on the investments Suitable 7
Banks Increase in the financial activities Suitable 10
Customers Proper services Suitable 8
Suppliers Engagement of the huge supplies Suitable 9
Government Improvement in the standard of
living
Suitable 6
Managers Financial and non-financial
rewards
Suitable 2

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8.1.5 Summary of Suitability
The steps that are being take by the organization has helped in the understanding of the
various aspects of the improvements in the culture and the functioning of the organization. In
terms of capabilities the company can always afford the change with a financial capital of US$
60.7 billion. The change in the line of product that is being manufactured by the organization
will be supported by the return on the investments.
8.2 Acceptability
8.2.1 Acceptability of Business Model
Elements Observations Suitable/ Not suitable Rating
Customer driven strategy of the
organization
The customer driven strategy of
the organization has helped in the
understanding the needs of the
customers and thereby frame the
policies of the organization
(Schiederig, Tietze and Herstatt
2012)
Suitable 5
Market positioning The market positioning of the
organization has helped in
improving their brand equity
Suitable 4
Customer relationships Creating good customer
relationship while marketing
their new product launch will be
helping the organization in
enhancing the scope of their
business
Suitable 7
Company reputation and
branding
The company reputation is based
on the customer satisfaction and
the retention of the same
Suitable 6
Organizational culture The organizational culture helps
the organization in maintaining
the market orientation.
Suitable 3

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8.2.2 Acceptability to Ethics and Social Responsibility
Elements Observations Suitable/ Not suitable Rating
Green approach The company undertakes the
eco-friendly approach in order to
facilitate their undertakings based
on the legislations
Suitable 2
Customer considerations Satisfaction of the customers
through the determination of the
demands and the monitoring over
the quality of the product and the
services offered by the
organization
Suitable 5
Considerations of the society Uplifting the social standard of
living through their activities
Suitable 8
Creation of employment The expansion of the company in
the international markets and the
huge financial resources of the
same has helped in ensuring the
creation of employment by the
organization
Suitable 10
8.2.3 Acceptability to Knowledge Management
Elements Observations Suitable/ Not suitable Rating
Human capital The proper management of the
human capital has helped the
organization in maintaining the
position in the market. On the
other hand, the proper assessment
and monitoring over the
functions of the human capital
has helped the organization in
enhancing their productivity.
Suitable 5
Structural capital The internal structural capital of
the organization has helped the
same in maintaining the balance
in the customer expectations and
the result or the output. The
balance has helped the
organization in maintaining the
proper understanding of the
Suitable 4

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different aspects of the change
that is being undertaken by the
organization.
Consumer capital The consumers are the major
capital of the organization, which
helps the organization in bringing
forth the change in the systems
and the functioning of the
organization through the
feedbacks (Hill, Jones Schilling
2014). On the other hand, the
company being customer centric
in nature, the customers form the
most important part of the system
of change.
Suitable 7
8.2.4 Acceptability to Technology
Elements Observations Suitable/ Not suitable Rating
Supplier dominated firms The technical change is being
undertaken and facilitated by the
suppliers of the company. The
proper understanding of the
different aspects of the change
that is being undertaken by the
organization has helped in the
understanding of the different
aspects of the development
Suitable 6
Information technology The proper integration of the
company with the IT has helped
the organization in making
themselves available to the
consumers. On the other hand, it
will be helping the organization
in making the people aware of
the change that is being planned
by the organization in the market
(Birkinshaw 2016).
Suitable 5
Involvement of modern
technologies
The involvement of the modern
technologies like the application
of the robots where human
labour seemingly fails to be
perfect has helped the
organization in making its
progress in the markets based on
the quality of the constructions
Suitable 7

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8.2.5 Acceptability using Blue Ocean Strategy
Elements Observations Suitable/ Not
suitable
Rating
Elimination The facilities that are being
offered by the company might
not be at par with the
requirements of the customers
and therefore, the company is
required to eliminate the factors
that are not required by their
clients.
Suitable 6
Reduction The reduction of the
discrepancies that are associated
with the functioning of the
organization in the market.
Not Suitable 5
Raising The company must take steps for
raising the understanding of the
needs of the customers and
thereby adhere to the changes
that are desired by the customers
of the organization.
Suitable 3
Creation The strategies that are being
undertaken by the organization
has helped the organization in
making its expansion in the
global markets.
Suitable 5
8.2.6 Summary of Acceptability Analysis
The return on the investments that would be undertaken by the organization will be twice
over the other investments that are being undertaken by the organization. The understanding of
the profitability of the organization with the change in the offerings is being assessed in this part
of the analysis.
8.3 Feasibility
8.3.1 Internal Feasibility Checklist
Capital Investment Required

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The huge financial funds of the organization have helped the same in undertaking the
venture based on its objectives of expanding its line of business in the international markets.
Projection of cumulative profits (based on strategic choices)
The cumulative profits of the organization and the high return on the investments have
helped the organization in maintaining a steady standard in the international markets. The
profitability of the organization ion its line of business is evident through a study of their
earnings in the balance sheet, which reflects an amount of $ 8.6 billion.
Working Capital Requirements
The company requires working capital for the proper undertaking of the steps and the
procedures for the joint venture. The working capital of the organization will be helping the
organization in making a growth through the smooth functioning of the same.
Tax Liabilities and Dividend Payments
The company is paying off their regular tax and that could be assessed through a
thorough evaluation of their balance sheet data. On the other hand, the company pays off a high
rate of dividend which portrays the situation of the company in its market.
Number of current employees? Redundancy? Is the company over-staffed?
The number of employees in the organization is 123,200 according to a report published
in the year 2016. The proper utilization of the workforce has helped in the growth and the
expansion of the business in the market.
New technical skills; new plants, etc

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The efficiency in the technical skills will be helping the organization in making its fast
progress. The new technologies include, the new machineries and a skilled workforce for
achieving their objective. On the other hand,. The company will be requiring a new plant for
undertaking the change in their systems.
New products and how they are to be developed (Ansoff Matrix)
In the second quadrant of the Ansoff Matrix a diversity of the products that are being
manufactured by the organization can be related. In this context, the company has undertaken a
joint venture with the Home depot for constructing low cost houses for the people based on their
requirements. However, the coca cola company is known for its beverages but the new venture
that the company is undertaking is based on the financial strength of the company to enter into
the construction industry.
Amount and timing of market investment
The amount that might be required by the company while undertaking the venture is
based on the part of its functionality. The investments that are being made by the organization
is determined by the various aspects of the change that the company aims at attaining through the
joint venture. On the other hand, the time that will be required while undertaking the procedure is
based on the effectiveness of the steps taken for the venture.
Possibility of acquisition, merger, joint venture, etc
The company has undertaken a joint venture with the Home Depot for undertaking their
new expansion of business into the construction industry.
Communication of ideas to all those involved

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The company has taken steps to communicate the ideas of the joint venture and their
change in the undertakings through handouts and emails for making the employees aware. On
the other hand, the company has taken steps to upgrade their social media appearance in order to
make the customers and the people aware of the change in the undertakings of the organization.
8.3.2 External Feasibility Checklist
4-point checklist on external feasibility
How will the customers respond to the strategies being proposed?
The strategies that are being proposed by the organization will be helping the
organization in making their improvement in the market (Völter et al. 2013). On the other hand,
the strategies will be serving the purpose of the customers. Therefore, they would rather be
surprised and happy to receive the services that are being provided by the organization.
How will the competitors react? Do the company has the necessary resources to respond?
The competitors of the company would not be expecting a beverage company to enter the
construction industry’s market and therefore they would be stunned by the company’s approach
of expanding its business.
Does the company have the necessary support from our suppliers ?
The suppliers of the company and the partner of the same have undertaken steps to
participate and join hands with the company in undertaking their venture for growth and
expansion of their business.
Does the company need government or regulatory approval? How likely is this?

18STRATEGIC MANAGEMENT
The company will be requiring the approval of the government in order to work smooth
on the venture that is being planned by the organization for its growth and expansion.
8.3.3 Financial Feasibility Checklist
The cash flow analysis of the company has helped in the understanding of the
profitability of the organization in the market. The proper understanding of the profitability of
the organization is better determined through the cash flow analysis of the organization. the
various channels through which the cash got into the system has helped in facilitating functions
of the organization.
8.3.4 Break Even Point
Coca Cola Construction company is deemed to attain break even at the end of two years.
Break even analysis for the company is conducted under:
Break even analysis
Monthly units in break even 1222
Monthly sales break even $ 397, 262
Assumptions
Average revenue per unit $ 325
Average variable cost per unit $ 248
Anticipated monthly fixed cost $ 94, 035
Cash Flow Analysis
Cash flow of the Coca Cola Construction Company is deemed to attain profits from its
operating activities, investing activities and financing activities. Net change in the cash and cash
equivalents can also be observed in the company for profitable business operation in the
upcoming years.

19STRATEGIC MANAGEMENT
8.3.5 Summary of Feasibility
Consistent innovation that is being undertaken by the management has helped the same in
outnumbering the competitors in the market. The cash flow and the determination of the
financial capabilities of the organization is determined through the analysis of the feasibility.
9. Internal Development
Strengths
 Customer loyalty
 Vast global presence (Johnson 2016)
 Distribution networks of the company
Weaknesses
 Competitors in the market
 Low diversification of the products
 Management of water
10. E-Commerce
The implementation of the e-commerce will be helping the organization in the proper
management of the resources and thereby keeping the customers aware of the change that is
being undertaken by the organization in the market.

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11. Implementation and Control
11.1 Alignment of Company Structure
The age and the environment of the company has helped the same in the expansion of the
size of the enter price in the market (Galliers and Leidner 2014). It has helped the organization
in maintaining the sustainability in the market.
11.2 Elements of the Implementation Process
The basic implementation process is based on the understanding of the strategy and the
analysis of its fit in the organizational structure and situation (Baden-Fuller and Haefliger 2013).
It helps in understanding the various aspects of the change that is being undertaken by the
management of the organization in order to bring in its progression.
Figure: Implementation process
(Source: Hitt, Ireland and Hoskisson 2012)

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11.3 Project Monitoring and Control
The company has taken steps to monitor over the achievement of the project objective
and control their functioning through the formulation of the various policies (Zott and Amit
2013). It will be helping the organization in maintaining a balance in the inputs and the outputs
and thereby maintain profitability of the same.
11.4 Green Strategy
The company has undertaken the eco-friendly approach in order to make their functions
more viable. It has helped in the understanding of the various aspects of the change that is being
undertaken by the organization.
11.6 Managing Change
The change that is being undertaken by the organization is based on the effectiveness of
the steps and the improvements that are being planned by the organization for its line of
business.
11.7 Managing Strategic Leadership
The leadership that might be undertaken by the organization is authoritarian style,
which has helped in the proper understanding of the steps required to be taken by the
organization for planning and implementing the change.
11.8 Business Plan
The business plan that is being undertaken by the organization is based on their
requirement of entering the construction industry. The shift in the industry has helped in
determining the various aspects of the change that is required to be undertaken in the company
structure.

22STRATEGIC MANAGEMENT
11.9 Implementation plan
The implementation of the business plan is an important aspect of the change that the
company is aiming to incorporate in its structure and functioning. It has helped the organization
in bringing forth improvements in the systems of the organization.

23STRATEGIC MANAGEMENT
References
Baden-Fuller, C. and Haefliger, S., 2013. Business models and technological innovation. Long
range planning, 46(6), pp.419-426.
Birkinshaw, J., 2016. Multinational corporate evolution and subsidiary development. Springer.
Galliers, R.D. and Leidner, D.E. eds., 2014. Strategic information management: challenges and
strategies in managing information systems. Routledge.
Hill, C.W., Jones, G.R. and Schilling, M.A., 2014. Strategic management: theory: an integrated
approach. Cengage Learning.
Hitt, M.A., Ireland, R.D. and Hoskisson, R.E., 2012. Strategic management cases:
competitiveness and globalization. Cengage Learning.
Johnson, G., 2016. Exploring strategy: text and cases. Pearson Education.
Schiederig, T., Tietze, F. and Herstatt, C., 2012. Green innovation in technology and innovation
management–an exploratory literature review. R&d Management, 42(2), pp.180-192.
Völter, M., Stahl, T., Bettin, J., Haase, A. and Helsen, S., 2013. Model-driven software
development: technology, engineering, management. John Wiley & Sons.
Zott, C. and Amit, R., 2013. The business model: A theoretically anchored robust construct for
strategic analysis. Strategic Organization, 11(4), pp.403-411.