Strategic Management Analysis: Coca-Cola's International Objectives

This essay provides a strategic analysis of Coca-Cola's international objectives and strategies within the beverage industry. It identifies internal and external environmental factors influencing the company's performance using SWOT and PESTLE analyses. Strengths such as brand equity and global presence are weighed against weaknesses like market competition and water management issues. Opportunities for diversification and expansion into developing nations are highlighted, alongside threats from water controversies and increasing competition. The PESTLE analysis examines political, economic, social, technological, legal, and environmental factors impacting Coca-Cola's strategic management, including government regulations, economic crises, changing consumer preferences, technological advancements, and environmental concerns. The essay concludes that Coca-Cola's international operating strategy aims for sustainable growth and value creation, emphasizing the importance of adapting to evolving market dynamics and addressing environmental challenges.

ESSAY STRATEGIC
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Coca cola long term international strategic objectives and strategies.........................................3
Internal environment factor.........................................................................................................3
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Strategic management states for providing direction by making plan and policies in order
to achieve organization goal. This report is based on the case study of coca cola. Coca cola is a
carbonated soft drink manufacturing company. This report will cover coca cola long term
internation strategies, objective. Moreover, it will also identify internal and external operating
environment factor with the help of strategic management model. In addition to this, this report
will also evaluate implementation and success of the international operating strategies.
MAIN BODY
Coca cola long term international strategic objectives and strategies
The main aim of coca cola is to be known globally, it has happened by targeting different
areas of the world with the various types of products, brand name, goodwill. Moreover, all the
partners of coca cola work closely with their customers such as movie theatres, grocery stores,
local vendor etc. In order to create and implement localized strategies which are developed in
partnership together. Likewise, as company sell coke without getting any competition of other
popular brands like sprite, fanta it is because coca cola owns all those brand as well. Further,
company also constantly evaluate their growth plan and performance in order to improve their
earnings and competitive position in the market. In addition to this, company make decision that
are around the business model in order to match the objective of the business by applying
strategies and tactics to analyse the performance of the company.
Internal environment factor
There are many internal environmental tools through which company can analyse their
performance. Moreover, SWOT is the one of the tool which helps to identify strength, weakness,
opportunity and threat.
Strength
Coca cola has brand equity because of its high global presence and unique identity in the
market. In terms of valuation, coca cola come under the most valuable companies across the
globe. Its valuation is around 79.2 billion dollars. Moreover, it's valuation includes goodwill,
assets, numerous factories etc. In addition to this, it's networks are present in 200 countries in the
world. It also performed well in terms of market share because there are only two companies in

the beverage segment. Moreover, it also has competitive market strategies. With the high number
of satisfied customer base. Company has automatically earned loyalty.
Weakness
Massive amount of market competition company face that create a huge weakness for the
organisation. Coca Cola Company hold a very limited diversification in the product in
comparison to other competitors Due to this coca cola need to invest huge amount in the
marketing and selling. Due to the absence of health benefit beverage, company face the huge
loose if any negative rumour come up in the market. Further, coca cola has also faced water
management issue. Several corporate group has raise legal case in the name of coca cola.
Moreover, at the same time people have claimed that coca cola is mixing pesticide in the water in
order to clear contaminants. Due to this, customer base of the company gets affected.
Opportunity
Diversifying the business of the company towards the health and food related business is
an opportunity for the company to improve the offerings done to their customers. Diversification
ensures having a better revenue from the already existing customer base of the company by
implementing cross selling of their products (Brondoni, 2019). In addition to this, company can
expand in the developing nations and move towards producing more healthy beverages within
the developed nations. Places having hot summers have increased demand for the higher
consumption of coca cola's products. Expanding towards the developing environments is good
opportunities for the company to capitalize. Hygiene has become a top priority for maximum
customers and there company has the opportunity to expand towards packaged drinking water
and attain good level of trust from its customers. Moreover, there are many products from the
company that are not accepted in certain places and therefore, company must focus on marketing
these products and will result in rise of its sales as well as helping the company to grow its
revenue.
Threat
The water usage controversy has made the company face a lot of criticisms to manage its
water usage related issues. There are many areas facing the scarcity of water and raising fingers
on coca cola. Many organisations have claimed that company uses a vast quantity of water and is

alleged contributing towards water pollution by mixing pesticides in water to clear the
contaminants (OBIALOR, D.C.). The packing of products by using the single- use of plastic
bottles and is criticized over the same regarding the matters of recycling and making use of
renewable sources. In addition to this, there is high rise in the direct source of competition from
several companies within the beverage market. Not just this, other companies producing coffee
and related products are giving indirect competition to coca cola and threatening its position
within the market. These coffee chains are rising the consumption of coffee and decreasing the
use of carbonated drinks such as coca cola. The case is similar for the healthy drinks as well as
energy drinks and are stealing the market share for the company.
Coca-Cola Limited works o the multinational level within the beverage industry, The
company is known to be one of the leading in its industry. The business of the company is
affected by several external operation environment that also influences its strategic management.
PESTLE analysis is used to understand these factors and business tactics of the company (Arif,
T).
Political: The business of this company is highly affected by the government policies
related to the sugar and caffeine consumptions. There are very strict rules and regulations based
on the factors such as health conditions of these individuals and deteriorations of the general
factors. Due to such policies, company is forced to change the chemical composition within their
drinks at certain working areas. However, in certain international places, government have not
taken any action and steps to make these changes within the product of Coca Cola (Shara, 2018).
The tiffs between several countries have resulted to change the price in the canned products from
the company. Company has to face many pressures about the cost of the product as there is rise
in the tariffs prices of steel and aluminium. Moreover, the rise in the tax price on the sugar within
UK is causing major threat on production of Coca cola. The organisation depends on the
regulation of taxes that is different in assorted countries where the factory for the company
operates.
Economical: The market share of Coca cola is in a good place within the carbonated
beverage market. On the other hand, the increased consumption of water within huge quantities
is affecting the company in a lot of aspects. Company is forced to spend more on the resolving
the issues such as water crisis and have the responsibility to make sure that demands for water is
fulfilled. The economic crisis on global level has affected the company as the brand is considered

to be luxury item which lead to lose its sales (Jones, and Comfort, 2018). The costs for raw
materials is increasing and is forming a reason for alarm as the company utilizes all the basic
form of ingredients for the production process and the price of these basic raw materials is
always increased. This has lead the company to shift its centre for production to different places.
Social: These factors will affect the mentality changes within its customers. The new
generations including the millennials and the genZ customers are inclined towards consuming
energy drinks rather than the carbonated drinks. This change has taken place due to health related
concerns. Long term consumptions of products from Coca cola leads to causing diseases such as
obesity which does not come under being physically healthy and fit. The mindset of people to be
a healthy individual is restricting them from making purchase from the company. Nevertheless,
company has tried to put a step forward towards producing low- calorie products to be more
health specific. Sodas and such carbonated drinks have a decrease in the sales from all over the
world. Coca cola is considered to be very destructive towards the environment. Coca cola has
also started an online store that will assists the customers in making the purchase regardless of
the place and time. With the help of social media networks, company has connected with its
potential customers on personal level.
Technology: Coca cola is very active on the social media platforms in having the social
media form of advertising. Company uses such platforms to make some effective campaigns for
its products (Bista, 2019). These methods serve as a method to reach towards the target market.
The use of high end technologies can help the company in understanding their customers and the
current market trends. Use of technology and its advancements helps the company to expand
their production base and increase their target market. With the help of technology, company is
maintain a successful interaction with its customers by inviting them to play online games that
are associated with the products from the company. In addition to this, company also creates
various combinations of flavours through computer like interference.
Legal: Company has been under a lot of trouble for the amount of caffeine within its
products. It was also known to pay its employees with low wages and not treating them in ethical
way. This has affected the reputation of the company in negative way with the legal suit against
the company for being racially discriminated against its employees. This has resulted in various
protests from the labour unions and has become one of the most important concerns for the
company in current place (Oetzel, and Miklian, 2017). Such lawsuits against the company has

contributed negatively in destroying the reputation of the company such that it will end in losing
the trust that customers has on the products of the company.
Environment: The production of products from coca cola requires the consumption of
lot of fresh water and due to this reason, company has faced much backlash situation from the
environment groups. In some cases, the production from company has resulted in completely
draining off the ground water and thus, is in immediate requirement to take steps for a proper
water management within its operations. The steps from the company includes reducing the
carbon footprint in the coming years (Verbeke, Coeurderoy, and Matt, 2018). Along with this,
company has also initiated water smart farming systems that will require the usage of less water
based resources and harvest maximum amount of water as much is possible. The increase in
humidity in various regions has increased the demands of coca cola and made it possible for the
company to operate in areas where it was not possible before.
The international operating strategy of the company is based on the mission of attaining
maximum value within the market over time and value to its consumers and communities. The
company is looking to have sustainable growth within the market while maximising its profit.
The reputation of the company to work with diverse workforce has made it easy for the company
to recruit employees and attract talent to work for the company (Cole, Benstead, and Mc
Loughlin, 2021). The strategy management is success for the company however, company must
work on more green option within its production as well as marketing process. It is an
opportunity for the company to expand in the developing nations where the demand of such
products is increasing.
CONCLUSION
It can be concluded that, coca cola operated within the beverage producing industry and
works on its management with proper strategy management. It can be seen that company aims on
having long term stability within the international markets. It is important for the company to
identify the internal and external operating environment. This is done by several frameworks
such as SWOT analysis and PESTLE analysis that helped in assessing the strong as well as
lacking points for the company. This is important step for the company while implementing the
international operating strategies.

REFERENCES
Books and Journals
Arif, T., INTERNSHIP REPORT on Marketing Strategies of Abdul Monem Limited (AML): A
Study on Coca-Cola Beverage Unit at C...
Bista, S., 2019. Sustainability in Business (A critique of environmental sustainability practices in
Coca-Cola and Unilever).
Brondoni, S.M., 2019. Shareowners, Stakeholders & the Global Oversize Economy. The Coca-
Cola Company Case. Symphonya. Emerging Issues in Management, (1), pp.16-27.
Cole, R., Benstead, A.V. and Mc Loughlin, K., 2021. Live Classroom Debate: Should Coca-Cola
Be Held Solely Accountable for the Environmentally Damaging Impacts of the Plastic
Waste of Their Product?. SAGE Publications: SAGE Business Cases Originals.
Jones, P. and Comfort, D., 2018. The Coca Cola Brand and Sustainability. Indonesian Journal of
Applied Business and Economic Research, 1(1), pp.34-46.
OBIALOR, D.C., CORPORATE SOCIAL RESPONSIBILITY AND GLOBAL BUSINESSES
(A STUDY OF COCA COLA PLC, OWERRI-IMO STATE).
Oetzel, J. and Miklian, J., 2017. Multinational enterprises, risk management, and the business
and economics of peace. Multinational Business Review.
Shara, K., 2018. Corporate Social Responsibility in Beverage Industry A Comparative Study of
Coca Cola and PepsiCo.
Verbeke, A., Coeurderoy, R. and Matt, T., 2018. The future of international business research on
corporate globalization that never was….