GROUP PROJECT ON STRATEGIC MANAGEMENT

TOPIC:

OBJECTIVES

• To know the core values, vision and mission

• To understand the internal and external environment in which Coca Cola operates.

• To understand the future prospects of different products

• To decipher whether Coca Cola strikes a balance between its profits and social responsibilities.

• To identify and characterize the different growth strategies used by Coca Cola

• To know about the Coca-Cola Company’s strategies management process

COMPANY OVERVIEW

• A leading manufacturer, distributor and marketer of non-alcoholic beverage concentrates and syrups

• The company owns or licenses more than 500 brands

• It operates in more than 200 countries• The company is headquartered in

Atlanta, Georgia

HISTORY OF COCA COLA• Coca-Cola was first introduced by John

Smyth Pemberton• He first distributed the product by

carrying it in a jug down the street to Jacob’s Pharmacy and customers bought the drink for five cents at the soda fountain

VISION

• People: Be a great place to work where people are inspired to be the best they can be.

• Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs.

• Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value.

• Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities.

• Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities

• Productivity: Be a highly effective, lean and fast-moving organization.

MISSION

• To refresh the world in body, mind and spirit• To inspire moments of optimism through our brands and our actions• To create value and make a difference everywhere we engage.

VALUES

• Leadership: The courage to shape a better future• Collaboration: Leverage collective genius• Integrity: Be real• Accountability: If it is to be, it's up to me• Passion: Committed in heart and mind • Diversity: As inclusive as our brands• Quality: What we do, we do well

EXTERNAL ENVIRONMENT

EXTERNAL ENVIRONMENT

EXTERNAL ENVIRONMENT

COMPETITIVE FORCES

SWOT ANALYSIS

•Global presence•Many variants.•Brand awareness•Logo famous•Strong marketing and advertising

•Aggressive acquisitions•Increase in demand for bottled water•Growth of Hispanics

•Negative publicity•Low profits in strong areas•Decline in cash flow •Supply is restricted

•Intense competition •Slowdown in rural •Demand•Negative health effect

STRENGTHS

WEAKNESS

OPPORTUNITIES

THREATS

GROWTH STRATEGY

– CORPORATE LEVEL STRATEGY

– FORWARD INTEGRATION STRATEGY

– JOINT VENTURES– MARKET DEVELOPMENT– PRODUCT

DEVELOPMENT

BCG MATRIX OF COCA-COLA

BCG PRODUCT LIFE CYCLE

CORPORATE SOCIAL RESPONSIBILITY

• The coca-cola system in Vietnam and the local people’s committee launched a new community water initiative in December 2006.

• The company continued to champion various initiatives such as rainwater harvesting, restoring groundwater resources, going in for sustainable packaging and recycling, and serving the communities where it operated.

• Canada’s first-ever live positively stakeholder awareness campaign

• Coca-cola India has been awarded the social and corporate governance award for best practices in corporate social responsibility 2009.

RECOMMENDATIONS• For the products like diet coke, pulpy orange and kinlely

soda it better to stop manufacturing these products

• Invest profits for future growth and for earning more of market share and profits

• Invest heavily into products like fanta and sprite in order to push the products to star status.

• For coca-cola -cost management, product differentiation and marketing have become more important as growth slows and market share becomes the key determinant of profitability

• The organization has to carefully study external environment moves and accordingly devise strategies to gain competitive advantage

• Coca cola has to make every possible move to ensure that its image remains that of an FMCG giant that would never compromise on the quality front