Comprehensive SWOT Analysis of Coca-Cola's Internal Environment

This report presents a SWOT analysis of Coca-Cola, examining its internal environment. The analysis delves into Coca-Cola's strengths, including its global brand image, high customer satisfaction, strong supply chain, marketing investments, effective human resource practices, and efficient manufacturing and logistics. Weaknesses identified include low product diversification, declining revenue, high employee turnover, and inappropriate financial planning. The report highlights the importance of effective management, funding, innovation, and employee satisfaction. It also addresses challenges like revenue decline due to market competition and health trends. The conclusion summarizes the key findings, emphasizing Coca-Cola's strategies to maintain its global brand position. The report references several academic sources to support its analysis.

INTERNAL
ORGANISATION/ENVIRONMENT,
(SWOT analysis)

Table of Contents
INTRODUCTION...........................................................................................................................1
ANALYSIS......................................................................................................................................1
SWOT Analysis..........................................................................................................................1
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
SWOT analysis is carried out in order to find out about an organisations strengths,
weaknesses, opportunities and threats. The company chosen for the present report is Coca-Cola,
a soft drink manufacturing company which was introduced on 8 May 1886 with 61,800
employees currently employed. Thus, this report will conduct internal analyses of Coca-Cola.
ANALYSIS
SWOT Analysis
Strength
 Global Brand Image
 High Customer satisfaction
 Strong Supply chain network (High no.
of wholesaler, retailer & customers)
 High Investment on Marketing &
Advertisement
Weakness
 Low product diversification
 Low investment in R&D
 High attrition rate in workforce
 Inappropriate financial planning
 Declining revenue
Analyses of strong points
Organisation direction: It is a very important responsibility of managers to provide
proper direction to the employees as it guides the employees towards the achievement of their as
well as organisational objectives and fulfilling their responsibility for the smooth working of an
organization. Managers of Coca - Cola are very efficient in their working and provide clear
directions to their employees which in turn helps them to move in a direction which will lead to
their indivisual as well as organisational growth (Watson and Cresswell, 2016).
Funding and Innovation – Funding is a source by which companies financial needs
could be fulfilled. On the other hand, innovation helps us to survive in this fast changing world.
As Coca - Cola continuously make changes in its practices and always welcome innovative
ideas. Its assets management strategy is good that helps in managing funds properly. Coca - Cola
does not face any difficulty regarding funding because of its brand name and customer loyalty
and thus resulting in efficient working of an organisation. Coca-Cola undergoes constant
innovation to capture the major share in soft drink industry by promoting its employees to
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generated new and creative ideas. Thus, it is considered as strength of business and enhance its
capabilities to gain competitive advantage.
Effective Human Resources practices - As it is said, human resources are the most
important part of an organisation and contribute most towards the achievement of organisational
objectives. Hence, Coca-Cola make efforts to keep its employees satisfied; so that they are
motivated to work better and retain in the company for a longer period and this will also increase
the productivity of the employees. Workforce of company helps the firm in meeting
organisational goal, that is one of the major strength of Coca-Cola. Recruitment and Selection -
Coca-Cola does internal recruitment in order to reduce the cost of recruitment as well as time.
Internal recruitment is that recruitment in which employees get recruited from within the
organisation. It is an efficient method of recruitment because the company has details of existing
employees available with them and are acquitted with their performance and capability. On the
other hand, analysis show that Coca-Cola uses initial assessment method to select employees
from within the organisation. Initial assessment means assessing their skills, upgraded, informal
discussion, etc.
Manufacturing – The effectiveness of manufacturing process depends on availability of
raw material, number of suppliers of raw material and conversion of raw material into finished
goods. Coca-Cola has a strong manufacturing process which helps in smooth manufacturing of
its drinks because of easy availability of raw material and large number of suppliers of raw
material which in turn helps them to maintain their market share. Process of manufacturing a
product is strength of organization. Basically a series of actions completed for achieve a
particular objective. All organizations have to follow many processes to make final goods &
services. Some of them are production process, operation process, efficiency process, health
process, banking process etc. From them under manufacturing (bottling process) is used by Coca
- Cola. After make the product they shipped it to bottling plants for bottling process.
Logistic & supply chain management: This is worked as strength for organization.
Logistic is the activity which organizes its equipments and movements or it can be described as
activities related to transporting products and goods to customers. Contract logistics, supply
chain management, operation management, distribution network, end-to-end and in-house can be
some examples of logistics. Through process of supply chain management in marketplace coca
cola maximizing its customer value & gaining competitive advantage(McDONALD 2016).
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Global Brand Image: Capital Assets is strength of an organization which has positive
implication. As an asset coca cola has its plants, capital, equipments, loyal customers, credit,
property, existing channel of distribution etc. Capital is wealth in the form of money. For coca-
cola its plants, patents and customers are assets which increases its strength in internal & external
environment both (Haile and Krupka 2016). Company policy is worked as a strength for any
organization. It means if a company have good policy for its employees then employee of that
organization are satisfied with them and worked more efficiently. This gives high output or
productivity to that organization. Different- different policies are followed by organizations like
HR policies, discrimination policies, protection policies, harassment policies etc. Coca Cola
followed anti-discrimination policy it means all employees of any age, sex, gender, religion,
citizenship are same. This organization does not make any difference between employees on
these points.
Analyses of weaker points
Employees turnover- Employees are those people who are employed in an organisation
in return for the salary or wages. Employees are motivated to remain in the company for longer
duration if the working environment is good, their social needs are fulfilled, they have a
reasonable pay, moderate working pressure, etc. In Coca – Cola; rate of retention of employees is
very low because of high work pressure as well as low pay, which results in employees being
unsatisfied but with changing time Coca-Cola is making efforts to improve the attribution rate of
workforce in order to keep them satisfied and retain them for a longer period. In other words, we
can also that Coca - Cola is making efforts to overcome one of its drawback. (Mohamed and
Omwenga, 2015)
Research and Development – One of the weakness of Coca-Cola is that it spends huge
amount on its R&D team; so that thorough research could be carried out without any
interruption; spending too much money on R&D would lead to company losing its position to
compete with its competitors and thus would lag far behind them. But with the changing time
coca cola is making efforts to distribute its funds appropriately among various departments rather
than focussing only on research and giving due importance to other departments as well.
Declining revenue – Revenues are the basis on which companies position can be
determined. But the results show that due to excess competition in the market ; not only by the
carbonated soft drinks company but also from the other companies producing various health
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drinks which are available in different flavours as per the taste of the consumers; has resulted in
continuous decline in their revenue because now- a- days people are more health conscious and
believe in keeping themselves fit. This is one of the major weakness of Coca- Cola (Chernick
and Reschovsky, 2017).
Low product diversification - Product diversification is very important for a company in
order to grow and expand its business worldwide and to compete with the global companies and
to beat its competitors; but coca cola focuses only on its main product rather than diverting its
product that is manufacturing any other kind of carbonated drink, healthy drink or flavoured
drink which restricts its working within the defined range and restricting its business to grow and
expand but with the changing time Coca - Cola is making efforts to overcome this loophole
(Irtaimeh, Al-Azzam and Al-Qura'an, 2016).
Inappropriate financial planning – Proper financial planning is required at each and
every point of time while running a business so that company does not fall short of funds at any
point of time and neither the company should have excess funds as it will lead to wastage or
improper utilisation of funds or resources; but Coca - Cola fails to do proper financial planning;
that is from where to receive funds, where to invest or allocate them and the amount of funds
required to run the company. But with the declining revenue coca cola has realised that proper
financial planning is required to maintain and grow its market share (Haile and Krupka 2016).
CONCLUSION
From the above study it has been summarized that coca cola followed many policies and
processes to become a global brand. One of them was used by coca cola discrimination policy.
To became giant in soda industry coca cola spend time, money & marketing. It can lead market
through diversification in other food product as well.
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REFERENCES
Books and Journals
Chernick, H. and Reschovsky, A., 2017. The fiscal condition of US cities: Revenues,
expenditures, and the “Great Recession”. Journal of Urban Affairs. 39(4). pp.488-505.
Haile, M. and Krupka, J., 2016. Fuzzy evaluation of SWOT analysis. International Journal of
Supply Chain Management.5(3). pp.172-179.
Irtaimeh, H., Al-Azzam, Z. and Al-Qura'an, A., 2016. Impact of Intellectual Capital on Carrefour
Internal Growth Strategies (Ansoffs Model) in Governorate of Irbid.
McDONALD, M.A.L.C.O.L.M., 2016. Strategic marketing planning: theory and practice. In The
marketing book (pp. 108-142). Routledge.
Mohamed, K.S. and Omwenga, J., 2015. Supply chain risks mitigation strategies adopted by
manufacturing firms in Kenya: A case of Coca Cola Company (K). International
Academic Journal of Procurement and Supply Chain Management. 1(4). pp.45-65.
Watson, D. and Cresswell, A., 2016. National Organisation Dedicated to Public Reporting on
Hospital and Primary Care: An Australian Experience. Medical Practice Variations. pp.1-
15.
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