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Presented By:Bhanu Chander Gupta (141321)Madasu Ramesh (141328)Sharmistha Dey (141343)Vikas Rawat (141350)Chandana Varma (141356)

COCACOLA- INTRODUCTIONLogo

Industries served Beverage (more than 500 brands)

Geographic areas served Worldwide (more than 200 countries)

Headquarters Atlanta, Georgia, United States

Current CEO Muhtar Kent

Revenue US$45.998 billion (2014) 1.83% decrease over US$46.854 billion (2013)

Profit US$7.098 billion (2014) 17.31% decrease over US$8.584 billion (2013)

Employees 129,200 (2015)

Main CompetitorsPepsiCo Inc., Dr Pepper Snapple Group, Inc., Unilever Group, Mondelez International, Inc., Groupe Danone, Kraft Foods Inc., Nestlé S.A. and many other companies in the beverage industry.

HIERARCHY OF STRATEGIC INTENT

• The framework within which firms operate, adopt a predetermined direction and attempt to achieve their goal is provided by a strategic intent.

• The hierarchy of strategic intent covers the vision, mission, business definition, business model and the goals and objectives.

Objectives

Goals

Plans

Mission

Vision

For Coca-Cola, strategic intent has been to put a Coke within “arm’s reach” of every consumer in the world

Vision

• It describes aspirations for the future without specifying the means that will be used to achieve those desired goals.

Mission

• It is a statement of fundamental and unique purpose of an organization that sets an business apart from other firms of its type and identifies the scope of the business's operations in product and market terms.

Goal

• Just as mission statement try to make vision more specific, goals are attempt to improve and organization's performance by making mission statements more concrete.

Obejectiv

es

• Objectives are the end towards which organizations and individual activities are directed.

Plan

• It is the process of evaluating all relevant information and the assessment of probable future development results in the statement of a recommended course of action plan.

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.

THE COCA COLA COMPANY MISSION

• To refresh the world in mind, body and spirit• To inspire moments of optimism and happiness through our brands and

actions• To create value and make a difference.

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

Political Analysis and Factors• Changes in laws and regulations• Changes in non-alcoholic business era• Political conditions, specifically in international markets• Ability to penetrate emerging and developing markets

ENVIRONMENTAL APPRAISAL

Technological Analysis and Factors• The efficiency of a company's advertising, marketing, and

promotional programs• Packaging design• New equipment• New factories

Economic Analysis and Factors

1. During the recession of 2001, most of the governments took aggressive actions to turn the economy around by 2002.

2. Coca-Cola took note of this, and realized that loan interest rates would likely rise as the economy returned. Thus, they took out low-cost loans in 2001 to fund growth in 2002. They used the loans for research and development on new products to capitalize on in a strong 2002 economy.

3. Currently, as global growth is slowing, Coca-Cola may be watching for a similar opportunity.

Social Analysis and Factors

1. The majority of people in Europe are showing increasing interest in healthy lifestyles. That has strongly influenced the sales within non-alcoholic beverage sector as many customers switch to bottled water and diet colas such as Coca-Cola Light or Zero.

2. Time management is a concern for 43 percent of all households, a percentage that has increased over the years.

3. Customers from ages 37 to 55 are concerned with their nutrition. They are more concerned about life choices that will impact their life expectancy. That will continue to affect the non-alcoholic beverage sector by increasing the demand for healthier drinks.

ORGANIZATIONAL APPRAISAL

“Organizational Appraisal is the process of monitoring an organization’s internal environment to identify strength and weaknesses that may

influence the firm’s ability to archive goals”

• Identifying Strength and Weaknesses• Core Competencies• Identifying Opportunities and threats• Strategic Cost analysis

WEAKNESS

THREAT

OPPO

RTUN

ITYST

REN

GTH

SWOTANALYSIS

1. The best global brand in the world in terms of value ($77,839 billion)

2. World’s largest market share in beverage

3. Strong marketing and advertising

4. Most extensive beverage distribution channel

5. Customer loyalty6. Bargaining power over

suppliers7. Corporate social

responsibility

1. Bottle water consumption Growth.

2. Increase in demand of healthy food and beverages.

3. Growing Beverages consumption in emerging markets.

4. Growth through acquisition.

1. Significant focus on carbonated drinks2. Undiversified product portfolio3. High debt level due to acquisitions4. Negative publicity5. Brand failures or many brands with insignificant amount

of revenues

1. Changes in consumer preferences2. Water scarcity3. Strong dollar4. Legal requirements to disclose negative information on

product labels5. Decreasing gross profit and net profit margins6. Competition from PepsiCo7. Saturated carbonated drinks market

BUSINESS LEVEL STRATEGY

• Business level strategy is concerned with a company’s decisions applied in creating and enhancing business activities that offer a competitive advantage against the competitors.

• Business level strategies are made after an evaluation of the product line, competition and the target market among other factors; which in turn influence the distribution and promotion channels.

• The Coca-Cola Company has one of the most valued brands in the world alongside Google and Apple.

• The Coca-Cola brand has taken decades to build, which has been possible due to a corporate strategy that is well accustomed to the mission of the company.

• The entity’s mission statement asserts that The Coca-Cola Company is committed in refreshing the world, inspiring happiness and optimism and in creating a difference and value.

CORPORATE LEVEL STRATEGIES OFCoca-Cola

DIFFERENTIATION STRATEGIES• There are many bases on which a product can be differentiated but

Coke has differentiated its product on the following base:

– Product Differentiation: Coke differentiates its product from its competitors on the basis of brand, quality and taste.

– Image Differentiation: Logo is used for image differentiation. Logo is what establishes a brand name in the consumer mind. It is the brands identification, signature and image.

PROMOTIONAL STRATEGIES• Price Strategy Trade Promotion

– Coca Cola Company gives incentives to middle men or retailers in way a that they offer them free samples and free empty bottles. By this these retailers and middle man push their product in the market.

• Sale Promotion– Coca Cola Company also does sponsorships with different college and

school's cafes and sponsors their sports events and other extra curriculum activities for getting market share.

• Getting shelves – Coca Cola gets or purchase shelves in big departmental stores and

display their products in those shelves in that style which show their product clearer and more attractive for the consumer.

COMPETITIVE STRATEGIES

• Marketing • Innovation • Globalization

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