Strategic Analysis and Vision/Mission for Coca-Cola Company

This assignment delves into the strategic decision-making of the Coca-Cola Company, analyzing its marketing strategies and financial performance based on the 2017 annual report. It examines the company's strengths, weaknesses, opportunities, and threats (SWOT), highlighting the decline in revenue and profits. The assignment then focuses on crafting new and improved vision and mission statements for Coca-Cola, emphasizing health-focused beverages, customer satisfaction, and value creation. The analysis includes references to relevant academic sources, providing a comprehensive overview of Coca-Cola's strategic position and future direction.

Running head: STRATEGIC DECISION MAKING
Strategic Decision Making
Name of the Student:
Name of the University:
Authors Note:

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STRATEGIC DECISION MAKING
Contents
Exercise 1:.......................................................................................................................................2
Exercise 2:.......................................................................................................................................4
References:......................................................................................................................................7

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STRATEGIC DECISION MAKING
Exercise 1:
The Cohesion case of Coca Cola Limited analysis the strategy of the company from the
marketing perspective. Over the course of 127 years, i.e. since Coca Cola become an
organization the immense importance given to marketing has helped the company to achieve its
organizational objectives. Intense and aggressive marketing along with strategy to preserve the
formulas of the company on patented syrups have contributed to the rise and rise of the
company. With its intense marketing campaign the Coca Cola Company has become one of the
most recognizable brands in the world.
Using the information from the annual report 2017 of the company the following income
statement has been summarized to comment on its performance.
COCA-COLA CO (KO) CashFlowFlag INCOME STATEMENT
USD in millions 2016-12 2017-12
Revenue from sales 41,863.
00
35,410.
00
Less: Cost of revenue 16,465.
00
13,256.
00
(A): Gross profit 25,398.
00
22,154.
00
Expenses
General sales and administration expenses 15,262. 12,496.

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STRATEGIC DECISION MAKING
00 00
Restructuring expenses 1,088.
00
Other operating expenses 1,510.
00
(857.0
0)
(B): Operating expenses total 16,772.
00
12,727.
00
Operating income(A - B) 8,626.
00
9,427.
00
Interest Expense 733.
00
841.
00
Other income (expense) 243.
00
(1,844.0
0)
Earnings before tax 8,136.
00
6,742.
00
Less: Income tax provision 1,586.
00
5,560.
00
Earnings from continuing operations after tax 6,550.
00
1,182.
00

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STRATEGIC DECISION MAKING
It is clear from the above that in 2017 the both revenue and profits of the company have
decreased significantly. This is a serious cause of concern for the management as the decline in
revenue and profit has become a trend in recent years. In fact in each of the last five years both
revenue and profits of the company have decreased continuously.
Strengths: The strengths of the company are its huge brand value and goodwill. Apart from that
the company also has most number of patented formula for beverages.
Weaknesses: The weaknesses include the inability of the company to formulate new and
improved beverages in recent years.
Opportunities: The Company has a huge market in all across the globe and with lack of
competition the company only needs offer new and better products to improve its financial
performance in the future.
Threats: Increase amount of awareness about various negative health effects of beverages have
created a significant negative image for the products of the company. More than facts rumors
have hurt the image of the company (Akomea Bonsu, 2016).
Exercise 2:
The screen shot vision statement of Coca Cola Limited is attached below.

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STRATEGIC DECISION MAKING
New and improved vision statement for the company:
The company thrive on its human resources to offer health and sport drinks along with different
beverages to the billions of customers it has all over the world. In doing so the company is also
obliged to provide its shareholders maximum amount of return and maximize their wealth by
achieving sustainable growth in the future.
Mission statement of the company is attached below using sniping tool.

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STRATEGIC DECISION MAKING
New and improved mission statement of the company:
The mission of the company is as following:
 Offer healthy beverages to the customers all over the world.
 Ensure that the products of the company bring happiness to the customers.
 Creating value for both the customers and the company itself (Us et al., 2019).

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STRATEGIC DECISION MAKING
References:
Akomea Bonsu, C. (2016). Product Traceability and Identification: An Examination of Its
Effectiveness at the Coca-Cola Company of Ghana Limited, Kumasi, Ghana, West
Africa. Science Journal Of Business And Management, 4(2), 51. doi:
10.11648/j.sjbm.20160402.15
Us, C., Us, A., Us, A., business, O., people, O., & Partners, O. et al. (2019). Our Mission
Statement & Company Values | Coca-Cola GB. Retrieved from https://www.coca-
cola.co.uk/about-us/mission-vision-and-values