Strategic Analysis: Coca-Cola Vietnam Vision and Mission Report

This report provides a comprehensive analysis of Coca-Cola Vietnam's vision and mission statements, core values, and strategic goals. It begins with a brief history of Coca-Cola and its introduction to Vietnam, followed by an examination of the company's vision, including its core values, core purpose, and Big Hairy Audacious Goals (BHAGs). The report evaluates the components of a good vision and assesses Coca-Cola's '2020 Vision' framework. Furthermore, the report delves into Coca-Cola's mission statement, analyzing its key components such as customers, products, markets, technology, and public image. The analysis highlights how Coca-Cola aims to refresh the world, inspire optimism, create value, and make a difference. The report also touches upon the company's approach to sustainability, market expansion, and technological advancements. The document provides a detailed overview of Coca-Cola's strategic management, offering insights into how the company plans to achieve sustainable growth and maintain its position in the beverage industry.

COCA COLA
I/ Coca Cola Vietnam Background
In 1886, Coca-Cola history began when the curiosity of an Atlanta pharmacist, Dr. John S.
Pemberton, created a distinctive tasting soft drink that could be sold at soda fountains. He
created a flavored syrup, took it to his neighborhood pharmacy, where it was mixed with
carbonated water and deemed “excellent” by those who sampled it. Dr. Pemberton’s partner and
bookkeeper, Frank M. Robinson, is credited with naming the beverage “Coca-Cola” as well as
designing the trademarked, distinct script, still used today.1 Coca-cola is distributed by 14
million distributors all over the world nowadays.
In 1960, Coca-cola was the first time introduced in Vietnam. After that, Coca-cola Indochina Pte
Company was established officially in Vietnam on August 1995. Since then, Coca-cola has some
locations in Vietnam, which were united as one Beverage Company called Coca-cola Vietnam
with the head office located in Thu Duc District, Ho Chi Minh City
II/ Vision and Mission
In the strategic management model, clear vision and mission statements are very vital for
alternative strategies to be formulated and implemented.
Vision statements have to answer the question “What do we want to become?” while a mission
statement answers the question “What is our business?” A clear business vision will help the
firm build a comprehensive mission statement and a clear mission is needed before alternative
strategies can be formulated and implemented
So developing a good vision and mission is essential for any firm and a big company like Coca
Cola is not an exception.
1. Vision
A good vision need to meet three components which are core values, core purpose and BHAG
(Big Hairy Audacious Goal). Core values and core purpose are core ideology and BHAG can be
1 Coca-cola History, https://www.worldofcoca-cola.com/coca-cola-facts/coca-cola-history/

considered as envisioned future which needs both 10-to-30-year BHAG(s) and a vivid
description
Elements of a good vision
By Dr. Hoa Thi Thu Ho, Strategic Management Lecture
“To continue to thrive dispatched in the next 10 years and beyond, we must look ahead and
understand the trends and forces will shape our business in the future and move quickly to
prepare for what is to come. We have to get ready for today and tomorrow”2. This is Coca Cola
Vision in 2010; it creates one long-term destination for the business and provides a "roadmap"
for winning together with bottling partners. The world is changing day after day. The world and
the individual country are changing. To be suitable for the environment in each country, Coca
cola poses a vision called “2020 Vision” as an improved vision for future aims.
The current vision is: “Our vision serves as the framework for our Roadmap and guides every
aspect of our business by describing what we need to accomplish in order to continue achieving
sustainable, quality growth.” 3
No Components Identification Evidence/ Improvement
2 Coca-cola Company, Vision mission and values, http://www.coca-colacompany.com/our-
company/mission-vision-values, By Coca-cola Company website
3 Coca-cola Company, Vision mission and values, http://www.coca-colacompany.com/our-
company/mission-vision-values, By Coca-cola Company website

Yes No
1 Core values X Evidence
2 Core purpose X Evidence
3 BHAG X Evidence
Current vision: ““Our vision serves as the framework for our Roadmap and guides every aspect
of our business by describing what we need to accomplish in order to continue achieving
sustainable, quality growth.” (http://www.coca-colacompany.com/our-company/mission-vision-
values, 21/12/2013)”
CORE VALUES
Core values are set to define the criteria, attitudes and behaviors that will be required to make the
“2020 Vision” real in Coca vision. This vision and values are made throughout the years, most
recently in 2020, also known as the “Coca Vision 2020” including:
First is Live Our Values. It serves as a compass for Coca cola company’s actions and describes
how they behave in the world. In leadership, Coca Cola encourage employers to shape a better
future by the best leading role in beverage industry. In collaboration, Coca is looking forward to
operating collective power. Coca cola is also reality in integrity of every area they are and have
responsibility for giving accountability. The passion is extremely important so that it is
committed in heart and mind of every Coca cola member and inspire to people. Coca cola
continuously support a diversity of products and it becomes a criterion inclusive as Coca Brand.
Especially in quality, Coca cola has a slogan: “What we do, we do well”. It is proved that the
quality of Coca Cola’s soft drinks is always in the best rate and favored by more people. The
program promotes the highest standards in product safety and quality, occupational safety, and
health and environmental standards across the entire Coca-Cola system. Coca-Cola does not
contain alcoholic, and company do not add alcohol as an ingredient. Any traces levels of alcohol
existing in Coke, governments and religious organizations have recognized that is a result of

natural processes, are completely normal and are acceptable in non-alcoholic foods and
beverages.4
Secondly, Coca cola focuses on the Market, especially on needs of consumers, customers and
franchise partners. Getting out into the market, listen and observe helping them to learn and
understand more their business environment. They become a world view focusing on execution
in the marketplace every day. However, the curiosity is never satiable because it is the factor
stimulating the learning and development.
Thirdly, Work Smart is one of the most important core values. They always act with urgency,
remain responsive to change, have the courage to change course when needed, remain
constructively discontent, work efficiently. These are the smart way to work that brings more
success to Coke in the future.
Fourthly, Coca cola act like an owner by understanding needs and what to do well for
themselves and their customers. An owner must have a smart system to operate and must focus
on building their values, positioning in the beverage market. The action of rewarding for people
who take risks and find better way to solve problem is a good solution to increase and develop
the loyalty. Learning form the outcomes is also a qualification of an owner. Finally, Coca cola
inspire creativity, passion, optimism and fun as their brand.
CORE PURPOSE
Core purpose is the organization’s for being, and it is also a part of core ideology besides core
values. With new vision, 2020 vision, Coca Cola has been set up a big aim to “continue
achieving sustainable, quality growth” in the beverage industry
BHAG
4 Coca-cola Company, Product safety and quality,
http://www.coca-colacompany.com/sustainabilityreport/me/product-safety-and-
quality.html#section-safety-and-quality-in-every-serving, By Coca-cola Company website.

As well as a good core ideology, Coca Cola includes it’s envisioned future with BHAGs and a
vivid description below, which can conjure up pictures and images of a great leader as well as
firm in beverage industry
 People: Be a great place to work where people are inspired to be the best they can.
Attract, engage and retain the best talent by knowledge, inspiration of passion, recruiting,
developing and advancing women, achieve true diversity. Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and
satisfy people's desires and needs with more than double in serving to over 3 billion a
day. Coca cola accelerates growth, acts to ensure the next generation of youth fallings in
love with Coke, continues to increase the values of portfolio with many actions such as
developing the innovative premium brands, bringing this innovation to the market
quickly, satisfying needs of consumers, using updated high technology and ensure the
standard of products.
 Partners: To be the most preferred and trusted beverage partner, nurture a winning
network of customers and suppliers, together we create mutual, enduring value. Thinking
and acting like an integrated global enterprise.
 Planet: Be a responsible citizen that makes a difference by helping build and support
sustainable communities toward to not only the global leadership in sustainable water
use, the industry leadership in packaging, energy and climate protection as well.
 Profit: Maximize long-term return to shareowners while being mindful of our overall
responsibilities.
 Productivity: Be a highly effective, lean and fast-moving organization; manage people,
time and money for the greatest effectiveness.
The vision 2020 is a great direction for Coca cola’s development in beverage industry. The
company is aware of what they need to do in present and in the future. They concern not only
in their profit or productivity but also in people. This can support them to develop in both
quantity and quality.
2. Mission

Mission is also a vital part to build the image of the brand as well as vision. Mission have to
reveal what an organization wants to be and whom it wants to serve so to develop a good
mission, diverse managers need to participate to find out effectively establishing objectives
and formulation strategies.
Coca Cola need a clear mission before setting up alternative strategies to be formulated and
implemented. Mission will be analyzed based on nine main factors which are customers,
products, markets, technology, concern for survival growth-profitability, philosophy, self-
concept, concern for public image and employee
No Components Identification Evidence/ Improvement
Yes No
1 Customers X Evidence
2 Products X Evidence
3 Markets X Evidence
4 Technology X Improvement
5 Concern for survival growth,
profitability
X Improvement
6 Philosophy X Improvement
7 Self-concept X Evidence
8 Concern for public image X Evidence
9 Concern for employee X Evidence
Current mission: “Our Roadmap starts with our mission, which is enduring. It declares our
purpose as a company and serves as the standard against which we weigh our actions and
decisions.”(http://www.coca-colacompany.com/our-company/mission-vision-values,
21/12/2013)
“Our Roadmap starts with our mission, which is enduring. It declares our purpose as a company
and serves as the standard against which we weigh our actions and decisions.”
 To refresh the world... To inspire moments of optimism and happiness...

 To create value and make a difference. 5
Above are three main factors that is inspiration for doing with Coke’s mission from current to the
future, at least to 2020 with company’s expectation of serving people best.
Customers: Align for Coca cola’s franchise structure to create unsurpassed values for
customers. For Coca cola, customers are the ones who need to be appreciated and offered the
most quality products and the best of serving from Coca cola. The company serves the diversity
of customers including their agencies, distributors and all the Coca cola users in a large scale.
Products: Coca cola towards to bring the safety and quality products which ensure about the
natural alcohol levels, colorings and carbon dioxide level…Diversity in kind of drinks is also a
criteria of Coca cola products. There are many kinds such as Coca-Cola Light (or Diet Coke),
Coca-Cola Cherry... However, coca and cola is the main favor in drinks. Its major products are
Coca cola soft drinks. Other kind of Coca cola products such as Diet Coke or Cherry…counts
less in market.
Market: Expand the market of Coca cola, gain the aimed point of sales. Coca cola expand their
consumption investment. They increase to participate and serve in local, provide more outlets
and to many specific shoppers. They also focus on selling and merchandising. The company has
competition with many beverage companies in the market. Pepsi Company is the most important
competitor because of large market share in beverage industry.
Public image: Mission of Coca cola is not only a leader in offering the best drinks, but also a
global leader in environment protection, in packaging and producing and disposing system.
Philosophy: Coca-Cola Enterprises provides products and services meeting the beverage and
business needs of thousands of retail customers. Opening dialogue and ongoing relationships,
Coca cola work to build mutual understanding and trust to pursuit the goals. Customer
relationships are central to Coca cola’s effort and philosophy. Coca cola has a slogan:
5 Coca-cola Company, Vision mission and values, http://www.coca-colacompany.com/our-
company/mission-vision-values, By Coca-cola Company website

“Anywhere, anyone, anytime, always Coca cola”. However, this should be seen directly on the
mission because it is the inspiration to cheer people use Coca cola.
Technology: In the mission, there has not been this segment yet. The company displays their
direction of technology in the vision report as the purpose needed to achieve such as using the
advanced and modern technology which contributes to increase the productivity. Coca cola
produces the first-ever recyclable plastic bottle made from plants. In 2012, Coca cola managed
to recycle 371M pounds of recovered aluminum and PET plastic beverage containers.6 This is a
very important element which should be considered in company’s mission.
Self-concept that Coca cola is the firm which refreshes the world with the delicious and fresh
drinks, inspires the people of the Coca cola’s passion, brings people on over the world the
moments and feelings of optimism and happiness, creates the difference from other beverage in
order that customers can remember and appreciate Coca cola’s values.
Concerns for employees: increasing people’s system knowledge and cross-system movement,
inspiring employees to be passionate, recruiting, developing and advancing women, making
better conditions for all employees to devote their creative and qualification for great drinks.
Concerns for growth, profit, survival: This element is not also demanded in the mission but
generally the company displays what to do in a detail report. Coca cola boosts investment in
sales and market execution, operate the lowest cost manufacturing and logistics in every market
while maintain the quality standards; also use the size and expertise for creating the economic
scale.
The Coca cola mission has huge inspiration which spreads company’s expectation to their
employers as well as customers. Besides, Coca Cola mission statements also have some essential
characteristics such as broad in scope, less than 250 words in length, inspiring, identify the utility
of the firm’s product, enduring and include most of nine components discussed above
6 Coca-cola Company, Infographic: our 2020 environmental goals, http://www.coca-
colacompany.com/plantbottle-technology/, By Coca-cola Journey.

However, there are some important components that should be considered and put in the mission
such as technology, philosophy and its concern for survival growth and profitability. The mission
needs to be more detail, which would show the customers and employers know what Coca
Cola’s aim, targets and big picture about it in future
III- External environment factors- PESTEL
While the internal environment of an organization is factors inside its firm and affect the
organization’s performance as well as can control, the external environment factors are
something outside of the boundaries of the company which can’t be controlled or forced to
change. To be success, any company has to analyze both internal and external environment
factors to have to most appropriated strategies forward the economy. By analyzing the
internal environment, company will find out its Strengths and Weakness to change in a
suitable way, while analyzing external environment will help the company figure out its
Opportunities and Threats in the particular market that they are investing in.
Coca Cola is a well-known multinational company, they might know their Strength and
Weakness clearly, but to have a good strategies forward Vietnam market, Coca Cola
Company needs to analyze its Opportunities and Threats by PESTEL analysis. PESTEL
analysis is a method focusing in the external factors of the business and the environment.
PESTEL stands for Political, Economic, Sociological, Technological, Legal, and
Environmental. All of those components will affect the company in a positive or negative
way is up to a good analysis and strategy forward it.
Political Analysis
As we know, the government has the power to set fines for the companies not meeting
their standard law requirements. The changes in laws and regulations, such as tax policy,
government regulations, social welfare policies, political risks might affect the company as well
as their entry in foreign countries. The political conditions, even the civil conflict can impact to
the markets and other governmental changes that affect their ability to penetrate the developing
and emerging markets that involves the political and economic conditions. However, Coca Cola
continuously monitoring the policies and regulations set by the government.
Tax policy

Tax is the issue which any business operating in Vietnam is under the impact of laws and
regulations. However, the tax service has recently questioned for many large foreign companies
in Vietnam. Tax Agency has written requests for consideration local inspection hole operations,
profitability of the business to conclude if companies report losses for the purpose of increasing
costs to evade taxes or not. Among them, Coca Cola Company reported losses in continuous
operation for 20 years in Vietnam.
The biggest difficulty is prompted many experts to be the multinational corporations often use
the " guise " of proprietary material or technology , that agency is difficult to determine the
actual cost of inputs Vietnam businesses spend. Coca Cola, according to the tax agency costs
flavorings imported from the parent company accounts for about 70-85 % of the cost of plant in
Vietnam. The data cannot be determined by the agency because of not knowing whether the
proportion of flavor additives from Coca Cola parent company in Vietnam is, compared to other
markets to put conclusions. However, this is the major reason Coca cola Vietnam proves for their
losses to dodge the government policy of tax. It also makes a bad reputation for Coca cola in
Vietnam.
Government regulations
As a famous brand, manufacturer, distributor and seller in beverage industry, the Coca-Cola
Company and other soft drink manufacturers are subject to antitrust laws of general applicability.
The Company may have an exclusive right to manufacture, distribute and sell a soft drink
product if its product is in substantial and effective competition with others of the same general
class in the market. It is the general regulation in business in every country. However, there are
some regulations strictly limited and prevent the expanding. For example, the Coca cola has
experienced public policy which challenges them about the sale of soft drinks in elementary,
middle and high schools. At January 1, 2006, a number of states had regulations restricting the
sale of soft drinks and other foods in schools. Many of these restrictions have existed for several
years in connection with subsidized meal programs in schools.7 This regulation cares about the
youth’s health as well as nutrition. This led to obesity among students and it affected directly to
the business of Coke Company in that period. Moreover, the restrictive legislation, if it enacted
for a long time widely, it could impact on the Company’s products, image and reputation as well.
Social welfare policies
7 Mar 14, 2007, Government regulations, http://www.wikinvest.com/stock/Coca-
Cola_Bottling_Co._Consolidated_(COKE)/Government_Regulation, By Wikinvest.

Coca cola offer high-quality brands and reputation in many countries on over the world.
Company significantly understand and believe that everyone should have benefit. The business
should bring benefit and refreshment to the people, which is central to the way The Coca cola
operate in communities around the world. The company plays the role as a good neighbor and
responsible citizen by helping people. In Vietnam, the company set up many regional and local
foundations, organized charity programs in local. Some reality programs such as “Vietnam
pushcarts program” – helping economically disadvantaged women build sustainable livelihoods.
In the first season, 2,000 women in Ho Chi Minh City and Hanoi are being given custom-built
pushcarts to sell a selection of ice-cold Coca-Cola beverages. This program provides all the
women with an initial quantity of discounted product and sales training to help get their new
microbusinesses. “Supporting education and youth development” with projects and scholarships
To support students in orienting and developing career in the future, The Coca - Cola Vietnam
organized the "Open Entrance To Success" for final year students at universities of HCMC.
These educational supporting activities the company held typically such as Success Skills
Workshop – to train soft skills for over 6,000 students throughout the country in the 2008 - 2010,
to help students complete the interview skills and workplace integration quickly. In addition, the
workshop program in Business Skills (2010) and Class Selling Skills Training ( 2013 ) in HCMC
and Hanoi also has support for nearly 350 small business about management capacity, sales and
expand business operations in the future. In addition, Coca - Cola Vietnam has cooperated with
The newspapers of Youth to provide Nguyen Thai Binh scholarship for students who have good
academic achievements with a total value of 300 million.
The political risks are impact to change in its business. The complicated as political conflicts,
disagreements cabinet and sluggish affect the development and sales. Typically, the recent global
credit crisis and its effects on credit and equity market apparel conditions affect the Coke’s
financial performance adversely and Coca cola Vietnam as well. This reduces the consumption
of soft drinks from the stores and outlets. Departments and other sectors of society focus on
solving crisis, revive the economy. However, it takes time and efforts. Fortunately, Vietnam has
a steady political condition. However, some affairs such as economic crisis, East Sea conflicts
also affect to Coca cola Vietnam, but not too much.
Overall, the opportunities for Coca Cola are Social welfare policies and the threats are Tax
policy, government regulations and political risks
All above pose opportunities for Coca cola Vietnam to develop the reputation with social
programs. They do these well to gain the people support. However, political situation or state
regulation is also the important point that Coca cola Vietnam must notice. It can prevent their
operation effectively in the future.
Economic analysis

Economics has a huge impact to not only the business of Coca cola company but also any other
companies. The main factors include interest rates, inflation rates, tax rates or consumption
patterns ... These agents can both benefit, even difficult for company's operations.
Inflation rate affects the business, especially the prices of products. I use the chart to analyze for
inflation’s impact to the products’ prices of Coke.
Coca-cola inflation adjusted price from 1997 to end of May - 20138
The blue line is Coke’s nominal price and the red is the inflation adjusted price. We can see the
inflation make the price increase. However, this adjusting is not equal for anytime. It is up to the
economic situation and the state’s current inflation rate forcing price of products to increase
dramatically or slightly.
Above is the total of inflation of Coca cola. In Vietnam, this condition might be worse because
Vietnam has a high inflation rate per year. It is also control by the government but its level still
impact to the company’s operation, and particularly affects to the price of products
In addition, the inflation rate of Vietnam economy also has been fluctuating for years, which also
affect directly to Coca Cola consumption in an unexpected way.
8 Coca-cola inflation adjusted chart KO, http://www.aboutinflation.com/Dow-Jones-vs-Inflation/coca-
cola-inflation-adjusted-chart-ko, By About Inflation.