BMGT495, Strategic Management
Taught By Dr. Vernon Swinton
Introduction 3
Vision and Mission 3
Industry Analysis 3
Company Background 4
Competition 4
Risk 4
The Industry Environment 4
Internal and External factors evaluation 5
Competitive Analysis 5
Financial Analysis 6
Business Operating segments 6
Financial analysis (specifics) 7
Technique Analysis 8
Price Analysis 8
Pricing Objectives 8
Approach to Pricing 9
Pricing Methods 9
SWOT Analysis 10
Alternative Strategy 11
Potential Markets 11
Strategy and Prioritization selection 12
Goal 12
Objective 13
Strategy 13
Tactics 13
Action plan of Implementation 14
Implementation through research 15
Implementation through marketing 15
Evaluation 16
Sales Analysis 16
Market Share Analysis 16
Marketing Profitability analysis 17
Conclusion 17
References 18
Appendix A 22
Appendix B 25
Appendix C 26
Appendix D 28
Appendix E 29
Appendix F 30
Appendix G 32
Appendix H 33
Introduction
For over 130 years The Coca-Cola Company has led the market in sparkling beverage sales worldwide. However in the last few years, sales of sugar sweetened and caffeinated beverages have been declining as consumers look for healthier alternatives. This report will discuss the mission and vision of Coca-Cola to focus on the company’s guiding principles. Then various internal and external industry and strategic analysis will be reviewed to identify strengths, weaknesses, opportunities and threats. Alternative strategies will be considered; key goals will be outlined and prioritized, along with an implementation plan. This report will provide a roadmap for future Coca-Cola strategy to ensure continued growth and success.
Vision and Mission
Vision and mission are critical elements of the Coca-Cola strategy. They serve as the foundations in the establishment of organizational decisions, goals and objectives, and provide direction to the company while also serving as inspiration for employees by giving them a sense of purpose. Coca-Colas mission is to “refresh the world, inspire moments of optimism and happiness, create value, and make a difference,” (Coca-Cola, 2016b). Coca-Cola’s vision is to make products that meet the needs of the customers, maximize value for shareholders, and nurture beneficial relationships with customers and distributors. Together these serve as a framework for Coca-Colas actions and values that will lead to long-term success.
Industry Analysis
Company background. The Coca-Cola Company manufactures and distributes an assortment of nonalcoholic beverages globally (Yahoo! Finance, 2009). According to Coca-Cola, they are the largest beverage company in the world providing over 500 brands of sparkling and still beverages with sales in over 200 countries (2015). Coca-Cola’s primary goal is to leverage their brands, financial strength, distribution system, global presence, and management commitment to realize accelerated competitive growth which creates value for shareholders (The Coca-Cola Company, 2015). Coca-Cola lists their core capabilities as consumer marketing, commercial and franchise leadership, and bottling and distribution operations (2015).
Competition. Competitive factors listed by Coca-Cola include price, advertising, sales promotions, innovation, efficiency in production, new packaging, vending and dispensing innovations, and brand and trademark protections (The Coca-Cola Company, 2015). The largest market competitors include PepsiCo, Nestle, and the Dr. Pepper Snapple Group (DPSG) (Hoovers, 2016a).
Risks. Natural resources can be a challenge to the various business segments based on the price and availability of clean water, natural and manufactured sweeteners, and the myriad of raw supplies needed for manufacturing the packaging and shipping materials – as well as fresh fruits for the juice brands (The Coca-Cola Company, 2015). Risk from government and social health initiatives include obesity, health concerns over certain natural and manufactured sweeteners, and potential taxes imposed that could increase costs (The Coca-Cola Company, 2015). Evolving customer tastes, competitive pricing, and bottling partner relationships are also primary considerations that could injure profits and market share (The Coca-Cola Company, 2015).
The industry environment. Appendix A includes an industry analysis using Porter’s 5-Forces Model as applied from Maxi-Pedia (2015a). As the largest beverage distributor in the world, Coca-Cola can leverage huge economies of scale to limit new market entrants. However, competitive rivalry, limited natural resources, the myriad of available substitutes, and customer price sensitivity are all risks to the firm’s strategic position. Direct competition with local governments and negative public perceptions can also hurt the company image. Coca-Cola’s consolidation, core competency focus, and bottling partnership strategies all contribute to their continued success. Their marketing budget and campaigns are the strongest in the industry.
Internal and external factors evaluation. Appendix A also includes an evaluation of internal and external factors matrices (IFE and EFE) that assess each company’s strengths and weaknesses as well as external opportunities and threats, as applied from Maxi-Pedia (2015b). The weighted scores are totaled by matrix, and the higher combined matrices score indicates stronger performance. These tools help Coca-Cola identify potential strategies for expanding opportunities, growing strengths, countering threats, and improving weaknesses.
Competitive Analysis
A competitive analysis compares one company to top industry competitors to identify weaknesses for improvement and strengths for solidifying. A competitive profile matrix (CPM) is used to identify critical success factors, assign a weight to the importance, then rank the companies based on their key industry performance factors. Appendix D shows the CPM completed to evaluate Coca-Cola’s performance against two other top competitors in the nonalcoholic beverage market: PepsiCo and DPSG.
The competitive profile matrix compares financial, brand reputation, and market penetration data to identify areas where Coca-Cola excels and where there are growth opportunities. Looking at brand recognition, it was found that Coca-Cola ranked 8th in the annual Brandz Top 100 Most Valuable Global Brands 2015 report, while PepsiCo ranked 79th, and DPSG did not make the list (Brandz, 2016). Of the three competitors reviewed, Coca-Cola markets the largest variety of beverage brands with more than 500, while PepsiCo has over 350, and DPSG sells 200 brands of beverages. Coca-Cola’s huge variety of brands saturate the nonalcoholic bubbling and still beverage market, increasing the odds that a Coca-Cola branded product will be in stock and selected for purchase by customers. The $46 billion dollars in sales in 2015 shows that market saturation works. Coke products are routinely selected and the enjoyed based on the repetitive purchases needed to reach the massive sales volume (Hoovers, 2016a). Coca-Cola also posted the highest 2015 net profit margin at 15.2%, compared to PepsiCo’s 8.7% and DPSG’s 11.7% (Hoovers, 2016a, b, and d). The huge variety of brand beverages, repetitive purchases, high net profit margin, billions in sales, global brand recognition, and high product quality all show that Coca-Cola has earned their reputation as the market leader in the industry.
Improvement areas for Coca-Cola include the decline in 2014 product sales in the United States (U.S.) to 47% of total Coca-Colas sales, while PepsiCo sold 51% of its products in the U.S., and DPSG reported 88% of their sales were in the U.S. (Hoovers, 2016d). Another opportunity for improvement is the 2015 decline in Coca-Cola’s twelve month revenue at a loss of (2.13%). PepsiCo also reported a decline in same year revenue of (5.46%), while contrary to the competition DPSG had an increase in same year revenue growth of 2.8% (Hoovers, 2016b).
Employment stability or growth is another indicator of business health. Over the prior five years, the number of employees at Coca-Cola declined (7.4%), while PepsiCo lost (10.5%) of their total employee population. DPSG had no growth or decline while revenue increased which could be the result of planned management actions like performance improvement measures to increase operational efficiency.
Financial Analysis
Business operating segments. The Coca-Cola Company is broken down into six distinct operating groups that include Eurasia and Africa, Europe, Latin America, North America, Asia Pacific, and Bottling Investments, with the final business unit consisting of the Corporate Headquarters (The Coca-Cola Company, 2015). The company primarily markets, manufactures, and sells beverage base concentrates and finished sparkling and still beverages, referred to as the concentrate and finished product operations businesses (The Coca-Cola Company, 2015). Coca-Colas finished product operations realize higher net revenues but lower profit margins than the concentrate operations (The Coca-Cola Company, 2015). The Coca-Cola Company’s Coca-Cola Refreshments (CCR) operations is included in the North American operating segment, which is their unified bottling and customer service organization providing franchise leadership, marketing, innovation and product supply chain, and sales (The Coca-Cola Company, 2015). Coca-Cola uses company-owned or controlled bottling and distribution operations and leverages bottling partners, distributors, wholesalers, and retailers, estimating total sales on average as 1.9 billion servings per day world-wide (The Coca-Cola Company, 2015). Each bottling partner must purchase supplies from Coca-Cola, or from authorized suppliers using strict manufacturing, bottling, and distribution agreements for brand and quality assurance.
Financial analysis. Appendix B shows an industry financial analysis for The Coca-Cola Company (2015), their largest direct competitor PepsiCo (2015), industry averages, whether the earnings or ratio is a strength or weakness based on the 2014 annual reports, and additional factors from the Hoovers competitive landscape report for the same period (2016a). The report (Appendix B) for Coca-Cola shows 12-month and 36-month average losses of 2.13% and 1.73%, respectively. While their largest competitor, PepsiCo experienced losses over the same periods, beverage industry revenue increased 4.01% and 4.46% over the same timeframe. This is a major weakness that Coca-Cola must overcome by developing business strategies consistent with their revenue and profit goals. Using the seven key ratios highlighted in yellow in Appendix B, Coca-Cola is solvent and slightly better than the industry mean of 1.16 current ratio, but scored only a .92 on the quick test, which calculates only liquidity after subtracting inventories. The average collection period of accounts receivable is excellent at 2.66 days average, but inventory turnover was much higher at 14.6 days, which is 11.41 days above the industry average, but significantly better than PepsiCo’s at 21.51 days. For financial leverage, Coca-Cola has a .55 debt ratio, which is a measure of total debt to total assets, compared to .52 for PepsiCo. Coca-Colas total debt to equity is 1.77 as a measure of total debt to shareholder equity; the industry average is .04. Total asset turnover, a measure of sales to total assets, was .5, with Pepsi at .95.
Total liabilities, less shareholder equity, is approximately two-thirds of total assets. Coca-Colas annual sales ($46.0B) and net profit margin (15.24%) allow them to continue paying down debt, reinvest in the company, as well as pay stock dividends. Coca-Cola stock climbed 3.11% over the previous 52 weeks while the S&P 500 plummeted by -11.22%. Overall, Coca-Cola is a very healthy and profitable company with a strong net working capital of $612M and good financial leveraging capability. Total return on equity was 23.15% with a 7.27% return on assets for the 2014 reporting year. However, their annual sales of $46.00B places them third in line with the major industry competitors as reported on Hoovers (2016a). There is clearly room for growth and for the company to refocus on the revenue loss over the previous three-year period.
Technique Analysis
Price Analysis
Pricing objectives. Pricing for Coca-Cola is based on the market and the geographic segment . Each sub-brand has a different strategy based on competitor’s pricing, of which PepsiCo is the direct competitor to Coke . Price of product should be that which gives maximum benefit to the company and which gives maximum satisfaction to the customer . When determining the price of various Coca-Cola products several factors affect the final price decision. Price is first set to the demand of the public, and at a figure which gives the company maximum revenue. Price should also be kept fairly close to that of the competitor, however must also be obtainable by the target market .
Approaches to pricing. Coca-Cola must watch PepsiCo with high scrutiny in order to remain competitive. If their price is too high then people will switch to Pepsi, if the price is too low people may assume that the quality is also low . Other strategies of price include charging more for convenience. The newer 7.5-ounce, 90-calorie can of Coca-Cola costs between 50-140% more than the regular 12-ounce can . That is almost a three-cent increase per ounce of Coke. See Appendix G for US and global prices.
Throughout the years, Coca-Cola has engaged in price wars with PepsiCo. If Pepsi drops their prices, soon after Coca-Cola drops theirs. The end goal is to maximize shareholder value . A lower price point is also used to penetrate new markets sensitive to price in order to raise brand awareness . There are five strategies available to business: market skimming pricing, penetration pricing, loss leaders, price points and discounts . Coca-Cola has used penetration pricing as a way of grabbing a foothold in the market, and in turn winning market share . After customer loyalty is achieved prices may slowly rise, but do not overly exceed that of the competition.
Pricing methods. Several methods exist for pricing including cost, market, and competition. Over time Coca-Cola lost ground in this area, but has since used competition-based pricing which has allowed for more effective competition within the industry (Marketing Plan, 2016). In the past, Pepsi served as the market leader, but over time Coca-Cola pulled ahead owning 60% of market share and a 20% return on capital due to competitive pricing (See Appendix A for more information on Coca-Cola price changes at the end of 2015)(Marketing Plan, 2016).
SWOT Analysis
A SWOT Analysis (Appendix E) identifies Coca-Cola’s main strength as the world’s largest non-alcoholic beverage company that sells more brands in more countries than the next largest market competitor (Coca-Cola, 2016a). Coca-Cola’s 2015 net profit margin was 15.2% which is higher than the next two largest public companies in the industry (Coke, 2016, p. 18). Another strength for Coca-Cola is their cutting edge, unique, and innovative marketing programs geared to attract customers (Hoovers1, 2016a).
Weaknesses for Coca-Cola are the pending merger, that when consummated may result in the loss of key personnel, disrupt sales and operations, if breached can result in a $450 million termination fee, and has already triggered lawsuits (Coke, 2016, p. 12). Other weaknesses include the threat of product exportation from outside of Coca-Cola’s territory, cybersecurity threats, and technology failures that can hinder operations (Coke, 2016, p. 16 and 18).
External threats include the competition, government laws, regulations and taxes that can negatively impact production, packaging, safety, advertising, sales, labeling and ingredients (Coke, 2016, p. 8, 9, and 16). Like other businesses, Coca-Cola is also threatened by global issues such as water scarcity, climate change, legal issues, currency fluctuations and a soft economy that can negatively impact operations and sales (Coke. 2016, p. 15, 16 and 28).
Opportunities for Coca-Cola include increasing product breadth (related diversification) not limited to beverages, such as with competitor’s ventures in the food and snack markets. Coca-Cola may also find limited U.S. investor interest due to the high sales in Western Europe (Coke, 2016, p. 18). Additionally, Coca-Cola has committed to corporate responsibility and sustainability programs, and seeks to be an industry leader by switching to sustainable packaging, recycling, water efficiency and replenishment, a 10% calorie reduction per liter of beverage, and sourcing 100% of electricity to renewable sources by 2020 (Coke, 2016, p. 27). Healthier lifestyle initiatives are also readily accepted by many customers.
Alternative Strategy
Coca-Cola is one of the most recognizable brands in the world and has established itself as one of the premier soda beverage companies. Coca-Cola provides its loyal consumers with a unique, distinct, and refreshing way to enjoy beverages. For Coca Cola to expand and thrive in an ever changing and competitive market, they must devise new business strategies that allow them to remain the industry leader. Currently, the market is moving towards healthier alternatives from long-time favorites like Coca Cola, which has been criticized for the amount of sugar within the beverages. This has changed the market unfavorably for the corporation and has translated to slumping and decreased sales in soda beverages overall. According to Beverage Digest (BD), the beverage industry's leading information source for breaking news, data and analysis, there has been a decline in soda sales in the past nine years (Cruz, 2014).
Potential markets. Coca-Cola can capitalize with its new marketing campaign for product awareness. It is a global brand and organization, and new markets are not what the company should seek to develop, but rather to improve upon and make more efficient with its current market operations and product awareness. In addition to the general and open market place, government and beverage initiatives have been instituted to bring about more healthy and lower calorie content beverages to school campuses. Gene Grabowski, of Levick Strategic Communications, argued that the [beverage] companies are just following the market; “kids want sports drinks. They want juices and half the selections in the [school vending] machines are bottled water,” (McKenna & LaMotta, 2006). Healthier initiatives present an opportunity to expand Coca-Colas customer base and distribution channel to specifically open and target campuses with better selections that what is currently offered.
Strategy and Prioritization Selection
The Coca-Cola Company enjoys a strong competitive position and moderate-to-rapid growth as shown in the grand strategy matrix (GSM) in Appendix C. The GSM recommends a set of generic strategies based on the company’s placement on the chart in quadrant I, for Coca-Cola. From there, a comprehensive qualitative strategic planning matrix (QSPM) is built using the developed IFE and EFE charts for the company that identified and quantified internal and external factors. Appendix C includes the QSPM as applied to Coca-Cola with the recommended generic strategies across the top columns. The results clearly show that new product development is the preferred generic strategy to pursue, which scored significantly higher than all other strategies, closely followed by related diversification.
Goal. A specific goal to realize success in the product development strategy is to promote healthy initiatives and develop a great-tasting product in the sparkling beverage industry under the Coca-Cola brand with zero, or as close to zero as possible, calories. This currently exists in the Coke Zero product line, but it uses Aspartame as a sweetener, which has been reported in many studies to be harmful. However, the Food and Drug Administration (FDA) reported that it is safe for use as a sweetener (2015). This goal should not substitute or replace existing product lines at this time, but introduce a new soft drink under the Coca-Cola brand using only natural, low-calorie sweeteners to avoid the negative public perception. The new Coke family product will strengthen the Coca-Cola brand and increase market share and revenues.
Objective. The first objective is to develop the new product and determine all costs associated with the capital investment, and to see a 10% return on investment (RoI) for that product within the first three years through extensive marketing, product placement, and consumer satisfaction sampling using existing social media and brand feedback channels. The objective metrics to monitor will be return on investment and segment market share.
Strategy. Invest in product research and development, a marketing launch campaign, and use existing supply logistics to effectively distribute and place the product, then measure RoI over a 36 month period and monitor percentage of segment market share for growth.
Tactics. Experiment with various natural fruits and juices to determine a suitable flavor that is readily accepted through consumer testing and local marketing campaigns to minimize the cost of product development until the desired formula is realized. Once the formula is developed, acquire the lowest-cost supplier solution with a long-term contract or vertical integration strategy. Modify bottling production within the North American bottling enterprise and distribution network to facilitate new product distribution. Invest heavily in the marketing launch campaign with an emphasis on Coca-Cola’s healthy initiative and sustainability campaigns – both are readily adapted as a secondary marketing channel for the new product launch. Monitor all costs closely for both the new product and sparkling Coca-Cola branded beverage segment to ensure that ROI is realized, but not at the detriment of existing brands. Coca-Cola seeks to diminish competitor market share – not drastically so, internally.
The new product will focus on Coca-Cola’s determination to fight childhood and adult obesity, focus on natural ingredients, and yet still contain the caffeinating effects of other products in the sparkling line. Low-to-zero calories, great taste, natural ingredients, in an environmentally responsible production and packaging campaign. Once developed and named, the product must be immediately trademarked and communication rights obtained for all written permissions, as well as a formula patent for maximum, long-term earnings sustainment.
Action Plan for Implementation
Today people seek healthy alternatives to their favorite beverages. All the flavor without the diet after taste, and that is low in sugar, fat, and calories. Sugar-sweetened beverages are the largest source of added sugar and a contributor of calories in the U.S. diet . Coca-Cola must accommodate these customers by offering healthy alternatives to sugar-sweetened beverages and continue the focus on sustainable environmental actions, with net-positive results.
Coca-Cola has been perceived negatively regarding excessive calories and previous attempts toward healthier alternatives. The phosphoric acid found in Coke and Diet Coke have been linked to osteoporosis and tooth decay. Aspartame, the sweetener in Diet Coke, has also been linked to several diseases. Coca-Cola will be the first company to find a safe, acceptable, and marketable alternative to artificial sweeteners that have so far received mostly negative response.
Coca-Cola stated that:
“All over the world our consumers are telling us they care about their well-being, and we care too. We recognize the health of our business is interwoven with the well-being of the communities we serve.That’s why through our products, our policies and our programs, we help to inspire people to be active and make informed nutritional choices. To deliver on that promise, we provide consumers with the information they need to choose the product that’s right for them. We are offering a wide variety of products so consumers can choose the best hydration options for their individual needs and lifestyle. And we are promoting the benefits of daily exercise and good nutrition through our sponsorship of active, healthy living programs worldwide,” .
Implementation through research. In 2014, Coca-Cola Life was introduced in Argentina and Chile, and will soon be launched in the U.K. as a low-calorie alternative to Coca-Cola Classic. Coca-Cola Life uses a natural sweetener ‘Stevia’ instead of sugar. The FDA has not permitted the use of whole-leaf Stevia or crude Stevia extracts because the substances have not been approved for use as a food additive . Currently there is a study suggesting that stevioside increases insulin sensitivity, reducing post-meal blood glucose and delays the development of insulin resistance in rats, while another study evaluated the effects on diabetic rats discovering that doses significantly reduced fasting blood sugar levels and could be used as treatment for type-2 diabetes . Given this information, it is determined that adequate research has not been conducted on the effects that Stevia has on humans. Before use of any new ingredient, Coca-Cola must have scientific research to identify benefits, risk, or side effects for proposed ingredients, or to support any claims that would be made publically.
Implementation through marketing. Coca-Cola uses the Ansoff Matrix management tool when assessing the level of risk when seeking growth of existing or new or new products, or in existing or new markets (See Appendix H) . By adapting the marketing promotion mix, Coca-Cola attempts to increase market share within existing industries, sell more product to established customers, or find new customers within the current market . As an example, Coke Zero, was launched in 2005 as a zero-calorie product similar to Diet Coke, but with the taste of classic Coca-Cola . Diet Coke was marketed to women, so Coke Zero’s black colored label and advertising campaigns were given a masculine appeal to attract male consumers . Through related diversification, Coca-Cola produces a new category of goods to complement the existing portfolio to penetrate a new but related market . Such was the case with the release of vitamin water. As the sale of carbonated drinks declined, Coca-Cola anticipated that the drink market was heading towards less-sugary beverages, so future marketing targeted the healthy drink sector . Before the release of a new product, Coca-Cola needs to identify the target market. It is assumed that any new healthy alternatives should appeal to all market segments, but close, early observation can be used to shift campaigns for effective target markets. Although the goal is to sell a product, the campaign continues to sell a feeling – a Coke and a smile.
Evaluation
Coca-Cola is a globally competitive company that broke multiple marketing strategies that established their names in many family households. Their popularity grew as one of the most leading beverages in the industry molding their products as a nationwide pandemic. Coca-Cola has successfully incorporated a great sense of understanding for their products by injecting their consumers with mass marketing outlays. Although like many companies in various industries, global markets are driven by the attraction of great profits and competition; Coca-Cola is definitely not an exception. Monitoring and controlling allows the business to check for variance in the budget and actual. This is important because it allows Coca Cola to take the necessary actions to meet the marketing objectives. There are three tools Coca Cola should use to monitor the marketing plan. They are the following:
Sales Analysis: The sales analysis breaks down total business sales by market segments to identify strengths and weaknesses in the different areas of sales. Sellers of Coca Cola products vary from major retail supermarkets to small corner stores. This gives the products maximum exposure to customers at their convenience.
Market Share Analysis: Market share analysis compares Coca Cola s business sales performance with that of its competitors. Coca Cola looks to increase its market share by over 60%. With the changes Coca Cola is currently undergoing, they aim to regain an iron fist control of the market. Target market various age groups and lifestyles from high school students too universities, and male or female.
Marketing Profitability Analysis: This analysis looks at the cost side of marketing and the profitability of products, sales territories, market segments and sales people. There are three ratios to monitor marketing profitability; they are market research to sales, advertising to sales and sales representatives to sales. The results of these three tools can help Coca Cola determine emerging trends, such as the need for a different product. Comparing the results supplies a roadmap for change.
Conclusion
As the competition in global market rises with the entry of new players and rising threat of substitutes like mineral water, fresh juice, energy drinks, etc there has to a strategic switch by Coca-Cola to re-capture its initial market share. The rise in revenues for the beverage industry marked by a drop in sales of Coca-Cola and PepsiCo has clear implications on a specific drop in the segment of artificially sweetened carbonated drinks. Hence, it can be inferred that the most suitable strategy can be in terms of adopting a schematic product line diversification in the existing range of products offered which should focus on more of health-oriented drinks. Planned investments and focused marketing plan for the new range of pro-healthy products can be spanned across the international markets using the highly competitive distribution network. In sync with the marketing of Diet Coke and Coke Zero, the new range of products can be marketed directly on the basis of their natural composition and the brand name of Coca-Cola will give the desired market penetration for the new products. The above-mentioned strategy can definitely put Coca-Cola in a better position vis-à-vis its competition in global beverage markets.
References
Best, J. (2014, June 19). Coca-Cola Attempts to Go Healthy With Stevia-Sweetened Coke Life. Retrieved Feb 16, 2016, from http://www.takepart.com/article/2014/06/19/stevia-sweetened-coke-life
Brandz. (2016). Brandz Top 100Most Valuable Global Brands 2015. Retrieved from http://www.millwardbrown.com/BrandZ/2015/Global/2015_BrandZ_Top100_Report.pdf
CDC. (2010, March). The CDC Guide to Strategies for. Retrieved Feb 16, 2016, from http://www.cdph.ca.gov/SiteCollectionDocuments/StratstoReduce_Sugar_Sweetened_Bevs.pdf
Coca-Cola. (2016a). Product Description, Coca-Cola. Retrieved from http://www.coca-
colacompany.com/brands/product-description/#The Coca-Cola Company.
Coca-Cola. (2016b). Mission, Vision & Values. Retrieved from
http://www.coca-colacompany.com/our-company/mission-vision-values/
Coke. (2016, February 11). Securities and Exchange Commission Form 10-K Coca-Cola
Enterprises, Inc. Retrieved from http://ir.cokecce.com/phoenix.zhtml?c=117435&p=irol-
SECText&TEXT=aHR0cDovL2FwaS50ZW5rd2l6YXJkLmNvbS9maWxpbmcueG1sP2lwYWdlPTEwNzMyOTcyJkRTRVE9MCZTRVE9MCZTUURFU0M9U0VDVElPTl9FTlRJUkUmc3Vic2lkPTU3.
Company, T. C.-C. (2012, Nov 7). Coca-Cola 2011/2012 Sustainability Report. Retrieved Feb
16, 2016, from http://www.coca-colacompany.com/sustainabilityreport/me/active-
healthy-living.html#section-promoting-active-healthy-living
Cruz, S. (2014, Apr 17). Soda sales decline heavily. University Wire Retrieved from http://search.proquest.com/docview/1517259291?accountid=12085
Dimanche. (2012, Nov 18). Coca-Cola Pricing Strategy. Coca-Cola vs Pesi-Cola The Soda Wars. Retrieved Feb 16, 2016, from http://softdrinkcolawar.blogspot.com/2012/12/coca-cola-pricing-strategy.html
Elya, R. (2016). What is Stevia? Side Effects, Safety Dangers and Health Benefits as a Natural
Sweetener. Retrieved Feb 18, 2016, from http://regevelya.com/stevia-sweetener/
Food and Drug Administration [FDA]. (2015). Food. Additional Information about High-Intensity Sweeteners Permitted for use in Food in the United States. Retrieved on 21 February, 2016, from http://www.fda.gov/food/ingredientspackaginglabeling/
foodadditivesingredients/ucm397725.htm#Aspartame.
FDA. (2016, Feb 3). Is Stevia an 'FDA approved' sweetener? United States. Retrieved Feb 16,
2016, from http://www.fda.gov/AboutFDA/Transparency/Basics/ucm214864.htm
Hoovers. (2016a). Competitive Landscape. The Coca-Cola Company. Retrieved on 13 February, 2016, from http://subscriber.hoovers.com.ezproxy.umuc.edu/H/company360/ competitiveLandscape.html?companyId=10359000000000.
Hoovers. (2016b). The Coca-Cola Company Historical Financials & Employees [Data file].
Retrieved from http://subscriber.hoovers.com.ezproxy.umuc.edu/H/company360/
FinancialHistory.html?companyId= 10359000000000&newsCompanyDuns=003296175.
Hoovers. (2016c). PepsiCo, Inc. Historical Financials & Employees [Data file]. Retrieved
14 February, 2016 from http://subscriber.hoovers.com.ezproxy.umuc.edu/H/company360/financialHistory.html?
companyId=11166000000000&newsCompanyDuns=001287762.
Hoovers. (2016d). Dr. Pepper, Snapple Group, Inc. Retrieved from http://subscriber.hoovers.
com.ezproxy.umuc.edu/H/company360/competitiveLandscape.html?companyId=103458
000000000&newsCompanyDuns=807919571.
Kasi. (2009). MBA-Tutorials. Quantitative Strategic Planning Matrix (QSPM). Retrieved on 12 February, 2016, from http://www.mba-tutorials.com/strategy/230-quantitative-strategic-planning-matrix-qspm.html
Marketing mix of Coca-Cola. (2013). Retrieved Feb 15, 2016, from http://www.marketing91.com/marketing-mix-coca-cola/
Marketing Plan. (2016). Marketing Plan Coca-Cola (Part 3 - Pricing Strategies And Tactics). Retrieved Feb 16, 2016, from http://smartstrategic.blogspot.com/2009/01/marketing-plan-coca-cola-part-3-pricing.html
Maxi-Pedia. (2015a). EFE Matrix (External Factor Evaluation). Retrieved on 4 February, 2016, from http://www.maxi-pedia.com/EFE+matrix+external.
Maxi-Pedia. (2015b). IFE Matrix (Internal Factor Evaluation). Retrieved on 4 February, 2016, from http://www.maxi-pedia.com/IFE+EFE+matrix+internal+factor+evaluation.
Maxi-Pedia. (2015c). Five Forces Model by Michael Porter. Retrieved on 4 February, 2016, from http://www.maxi-pedia.com/Five+Forces+model+by+Michael+Porter.
McKenna, T., & LaMotta, L. (2006, May 08). Low-calorie drinks to hit school vending machines. PRweek, 9, 1. Retrieved from http://search.proquest.com/docview/232039133?accountid=12085
Nestle, M. (2010, Feb 4). Food Politics. Retrieved Feb 16, 2016, from http://www.foodpolitics.com/2010/02/the-real-cost-of-coke/
Oakley, T. (2015, March 28). Coca-Cola: Ansoff Matrix. Retrieved Feb 18, 2016, from https://themarketingagenda.com/2015/03/28/coca-cola-ansoff-matrix/
Project on Beverage Industry. (n.d.). Retrieved Feb 16, 2016, from https://sites.google.com/site/thefinalprojects/home/project-on-beverage-industry
Schermerhorn, J. R. (2010). Management. Hoboken, N.J: Wiley.
The Coca-Cola Company. (2015). 2014 SEC 10-K Annual Report. Retrieved on 13 February 2016, from http://www.coca-colacompany.com/content/dam/journey/us/en/private/ fileassets/pdf/2015/02/2014-annual-report-on-form-10-k.pdf.
The Coca-Cola Company. (2016). Press Center. The Coca-Cola Company Announces Plans to
Significantly Accelerate Bottler Refranchising. Retrieved on 15 February 2016, from http://www.coca-colacompany.com/press-center/press-releases/the-coca-cola-company-announces-plans-to-significantly-accelerate-bottler-refranchising/
Yahoo! Finance. (2009). The Coca-Cola Company: Profile. Retrieved on 13 February 2016, from http://finance.yahoo.com/q/pr?s=KO+Profile.
You Tube. (2013). ddd9255. Pepsi Co. Grant Strategy Matrix. Retrieved on 12 February 2016, from https://www.youtube.com/watch?v=fYWHaOjWnN8.
Appendix A
Porter’s 5-Forces Model as Applied to The Coca-Cola Company from Maxi-Pedia (2015c).
Porter’s 5-forces model for industry analysis as applied by Maxi-Pedia (2015c) shows that there are significant entry barriers, but existing competiveness is fierce, as well as the staggering availability of substitute products. Customer price sensitivity is very high, and potential price wars would significantly hurt sales and lower profit margins. Substitutes, competitive rivalry, and access to large volumes of resources is paramount for success in the global beverage industry.
External Factors Evaluation for The Coca-Cola Company as applied from Maxi-Pedia (2015a).
The external factors evaluation lists external opportunities and threats that include a weighted score (from 0 to 1, totaling 1.0 for all row entries) and subsequent rating as noted in the chart. The weight and rating are multiplied together to provide the weighted score. Finally, all weighted scores are summed to provide a total weighted score. The average score is a 2.5, with anything above a 3 being an overall strong rating, but is limited by the accuracy and completeness of each individual input.
Internal Factors Evaluation for The Coca-Cola Company as applied from Maxi-Pedia (2015b).
The internal factors evaluation lists company-internal strengths and weaknesses that include a weighted score (from 0 to 1, totaling 1.0 for all row entries) and subsequent rating as noted in the chart. The weight and rating are multiplied together to provide the weighted score. Finally, all weighted scores are summed to provide a total weighted score. The average score is a 2.5, with anything above a 3 being an overall strong rating, but is limited by the accuracy and completeness of each individual input.
Appendix B
Selected Financial and Ratio Analysis for The Coca-Cola Company.
All financial information reported from The Coca-Cola Company’s annual report (2015), PepsiCo’s annual report (2015), and Hoover’s financial competitive landscape report (2016).
Appendix C
Grand Strategy Matrix for The Coca-Cola Company as applied from user ddd9255 on the You Tube website (You Tube, 2013).
Qualitative Strategic Planning Matrix as applied to The Coca-Cola Company from Kasi (2009).
Appendix D
Appendix E
COCA-COLA SWOT Analysis
Appendix F
Appendix G
Sample of U.S. Prices for 2-Liter Coca-Cola
Portland, Oregon: $1.89Little Rock, Arkansas: $1.48Los Angeles, California: $1.00
Sample of International Prices
South Africa: $0.78India: $1.17Hong Kong: $1.30London: $2.07Spain: $2.19Paris: $2.99Australia: $3.32Germany: $4.06
Appendix H
