PrimulaMohamed 6079

Dina Ashraf
6103
Dina Wagih
6110
Randa Khairy
 Coca-Cola Co. Profile
The Coca-Cola Company was founded in 1886 and is
headquartered in Atlanta, Georgia.

The Coca-Cola Company manufactures, distributes, and markets

nonalcoholic beverages worldwide.

It markets them primarily under the names:

 
 

 
 

 
 
 Vision
“What Do We Want to Become?”

Be a great place to work where people are inspired to be

the best they can be, bring to the world a portfolio of quality

beverage brands that anticipate and satisfy people's

desires and needs, raise a winning network of customers

and suppliers, maximize long-term return to shareowners

while being mindful of our overall responsibilities, and be a

highly effective and fast-moving organization.

Proposed Vision:

To maintain our reputation as the leading cola company in the

world.
 Mission
“What Is Our Business?”
(1) Customer
x
(2) Products/Services
To refresh the world... x
(3) Market
(4) Technology
To inspire moments of
optimism and happiness…
x
(5) Concern for Survival, Growth,& Profitability x

(6) Philosophy
To create value and make
a difference. (7) Self-Concept
(8) Concern for Public Image
x
(9) Concern for Employees
x
Proposed Mission:

Our mission is to be the world's premier consumer Products

Company focused on refreshing beverages. We’ll lead our
industries in the application of appropriate technologies. We seek to
produce healthy financial rewards to investors as we provide
opportunities for growth and enrichment to our employees, our
business partners and the communities in which we operate. In
everything we do, we strive for honesty, fairness and integrity. And
we create value and make a difference everywhere as our signature
product, Coke, is a favorite around the world.
 External Factor Evaluation (EFE) Matrix

Key External Factors Weight Rating Weighte

d
Opportunities: Score
Global populations grow. 0.07 2 0.14

Growing world for refreshment. 0.05 1 0.05

Opportunity for expansion 0.03 3 0.09

Bottled-water growth and increase in its consumption by 11%. 0.1 2 0.2

Improved franchise system 0.07 2 0.14

Increase advertising for less popular Coca-Cola 0.02 2 0.04

products.
Threats :
Linking soft drinks to health problems 0.15 3 0.45

Pepsi is more diversified offering beverage and food 0.02 2 0.04

products.
Commodity prices growth 0.06 2 0.12
Increased Competition 0.15 3 0.45

Some people Boycott Coca-Cola in the Middle-East 0.03 2 0.06

Obesity and other health concerns may reduce demand 0.1 4 0.4
for some of our products.
Water scarcity and poor quality could negatively 0.02 3 0.06
impact the Coca-Cola system’s production costs and
capacity
Fluctuations in foreign currency exchange could affect 0.02 1 0.02
our financial results.
Increase in interest rates may affect our net income 0.05 2 0.1

Climate change may negatively affect our business. 0.03 1 0.03

The threat of substitutes 0.03 2 0.06

.
Total 1.00 2.45
 Internal Factor Evaluation (iFE) Matrix

Key Internal Factors Weight Rating Weighte

d
Strengths: Score
Innovation 0.08 4 0.32

The 1st company to list energy information in the form 0.02 3 0.06
of calories and kilocalories on products
Market share increased by 4% 0.03 4 0.12

Operating income increased by 3% 0.05 3 0.15

Increase in dividends payments to shareowners (paid $ 0.08 4 0.32

3.8 billion)
8% increase in cash from operations ($ 8.2 billion 0.02 3 0.06
generated)
Intensive efforts to help in climate protection 0.06 4 0.24
Brand Recognition 0.09 4 0.36

Coca-cola rank No. 1 worldwide in sales of sparking 0.08 3 0.24

beverages, and No. 3 in bottled water
Operate in over 200 countries and employ 92,800 0.09 3 0.27
associates.
Product safety and quality. 0.08 4 0.32

Successful global marketing campaigns 0.05 4 0.2

Weaknesses
Bad global Website compared to Pepsi 0.08 2 0.16

Product line is limited to beverages. 0.06 1 0.06

Inventory turnover is only 4.8 compared to Pepsi Co. 0.08 1 0.08

7.1
A lot of Pepsi customers aren’t enough loyal Coca-Cola 0.02 2 0.04
customers.
Advertising is not as good as competitors. (Pepsi uses 0.03 2 0.06
more popular celebrities)
Total 1.00 3.06
 SPACE Matrix

Financial Strength (FS) Rating

Net income increased by 3% +2

8% increase in Cash from Operations +2

Inventory turnover is only 4.8 compared to Pepsi which is 7.1 +5

ROA is 15.9% which is 4% higher than the ROA ratio of the industry +1

+10

IndustryStrength ( IS )
Opportunity for expansion and growth potential +3

+1
Growing beverages industry
+4
Increased
+1
Technology
+9
Environmental Stability (ES) Rating
Less-developed countries are experiencing high inflation -3

-3
High competitive pressure
-3
Demand variability -1

-9
Availability of raw materials

Competitive Advantage ( CA )
High product Quality -1

-1
Market share increased by 4%
-4
A lot of Pepsi customers aren’t enough loyal Coca-Cola customers -1
High brand recognition -7

Coordinate: (0.5 , 0.25)

 FS

CA IS

ES
 Objectives

Long-term:
1) Growing our brands.
2) Gaining share.
3) Double our revenues while increasing system margins by 2020.
4) Becoming one of the world’s premier employers.
5) 5% reduction in emissions by 2015 for increase climate protection

.
Short-term:
1) Decrease our annual operating expenses.
2) Advance our packaging framework.
3) Enhance our Advertising capabilities.
 Strategies in action

Market Penetration:
Increasing market share for present products in present markets through
greater market efforts by:
•Increasing advertising expenditures.
•Offering extensive sales promotion items.
•Increase publicity efforts.

Product development:
Increasing sales by modifying the present product.
 Recommendations

1) The Coca-Cola Company has a high level of uncertainty when it comes to

the raw materials it uses. For a few of the ingredients, the company only has
one or two viable suppliers. This could be extremely problematic for a variety of
reasons. Another problem could arise if a supplier experiences an event that
economically devastates them. If a supplier goes bankrupt, or is in some type of
natural disaster, the Coca- Cola Company would suffer greatly as well.
The Coca-Cola Company can improve and secure relationships with suppliers.
The most optimal method would be to use backward vertical integration and
purchase a supplier.

2) Horizontal Integration:
Coca-Cola can seek the ownership of or increase control over a competitor.

3) Diversification:
Add new related or unrelated products,
 
4) Market development:
Introduce the present products into new geographic areas.

5) Continue to expand the variety of choices provided to consumers to meet

their needs, desires and lifestyle choices.

6) Continue to selectively expand into other profitable segments of the

nonalcoholic beverages segment of the commercial beverages industry and
strengthen our capabilities in marketing and innovation in order to maintain our
brand loyalty and market share.

7) Reduce the amount of water used to produce the beverages.

Thank you!