Coca Cola Company Analysis Case Study - 2750 Words

Coca Cola Company Analysis (Case Study Sample) Content: Coca Cola Company AnalysisAn Assignment Submitted byName of StudentName of EstablishmentClass XXXX, Section XXXX, Fall 2014Coca-Cola’s business strategyThe Table of Contents TOC \o "1-3" \u 1.0 Introduction  PAGEREF _Toc384377774 \h
11.2 Aim  PAGEREF _Toc384377775 \h
32.0 History of Coca-Cola  PAGEREF _Toc384377776 \h
33.0 Coca-Cola’s value chain management  PAGEREF _Toc384377777 \h
33.1 Value chain management of Coca-Cola  PAGEREF _Toc384377778 \h
33.12 Value chain cycle system  PAGEREF _Toc384377779 \h
44.0 Coca-Cola’s marketing strategy  PAGEREF _Toc384377780 \h
54.12 Coca-Cola’s packaging strategy  PAGEREF _Toc384377781 \h
64.2 Advertising and marketing  PAGEREF _Toc384377782 \h
64.3 Porter’s five forces and SWOT analysis  PAGEREF _Toc384377783 \h
74.32 SWOT analysis  PAGEREF _Toc384377784 \h
85.0 Coca-Cola's leadership  PAGEREF _Toc384377785 \h
95.1 Coca-Cola's former chairman  PAGEREF _Toc384377786 \h
95.2 Leadership of Coca-Cola  PAGEREF _Toc384377787 \h
106.0 Recommendation  PAGEREF _Toc384377788 \h
117.0 References  PAGEREF _Toc384377789 \h
121.0 Introduction1.1 BackgroundStrategic management involves evaluation of a number of factors including external and internal environmental factors in an organization aiming to develop and execute measures on behalf of shareholders in order achieve organizational goals, objectives and other initiatives. In evaluating the external and internal environments various frameworks such as Porters’ Five Force are used. This model is effective in creating a picture of the state of the industry in which an organization operates, the competitive intensity in the industry and the level of attractiveness of a market. The individual forces are bargaining power of suppliers, bargaining power of buyers, threat of substitute products, competitive rivalry and threat of new entrants. SWOT analysis is another framework that can be used in evaluating a company. It involves description of the company’s weaknesses, strengths, threats and opportunities. Both the SWOT analysis and Porter’s Five Forces would unearth much essential information regarding a company. Evaluating Coca Cola Company using these frameworks would illustrate this element. Coca Cola is a multinational corporation that is manufacturers, sells and markets beverages that are non alcoholic such as sodas. In the United States it ranks first in the market, and obtains more than 40% market share. Sprite is its fastest growing beverage. Other brands including Barq, Root beer, Fruitopia, and Surge are also very successful and famous (Bell, 2003, p45). Through extensive cooperation with bottled partners around the world, the company now has the world's largest distribution system. Meanwhile, beside more than 71,000 employees around the world, the company also applies the most advanced marketing management and leaders hip to promote local economic development and people’s living standards. This report will analyze Coca-Cola’s strategic management using Porter’s Five Forces and the SWOT analysis. In the process other strategic management concepts applying to the company like value chain management, marketing strategy and leadership will be addressed. 1.2 AimThis report will analyze Coca-Cola’s strategic management using Porter’s Five Forces and the SWOT analysis. In the process other strategic management concepts applying to the company like value chain management, marketing strategy and leadership will be addressed. 2.0 History of Coca-Cola2.1 History of Coca-ColaBefore 1960, Coca-Cola had only a single production - Coca Cola drink. After mergers and acquisitions, it gradually diversified its product line and began producing coffee, tea, plastic packaging materials, fruit juice, and water purification system among other products and packaging goods. Coca-Col a syrup mixed with soda drinks became popular in the world. In 1889 Asa Griggs purchased the Coca Cola formula together with its brand. The company got incorporated three years later. Over the years the company has expanded its operations to different countries worldwide. Through franchises the company has established a massive distribution system globally. However, only syrup concentrate is produced by the company and sold to bottlers who then package beverages and make it available to consumers. The proposal to have Coca Cola produce syrup and sell it to bottlers and retailers was made by two American lawyers (Gerbe, 2007, p233). They visited the Coca-Cola boss at his office and proposed a novel way of business cooperation. This cooperation was that Coca-Cola sold them syrup, and they would mix the syrup with water in their production company and sell the product. Coca-Cola allowed them to use Coca-Cola’s trademark, advertising and this particular bottle system (Petretti, 2 008, p56).3.0 Coca-Cola’s value chain management3.1 Value chain management of Coca-Cola 3.11 Value chain introductionThe individual steps starting from collection of raw materials to distribution of processed products to the consumer forms coke's ‘value chain’. Generally speaking, each enterprise has its own upstream and downstream enterprises and upstream and downstream products (Walter, 2008, p245). The upstream enterprise is the supplier of this enterprise, so it provides the primary products. Downstream enterprise is the distributor or agent of an enterprise, so it provides distribution support. Upstream products are infrastructure. Downstream products are supporting facilities, and other services. The various steps in the ‘value chain’ are interdependent, mutually restricted and commonly developed. As such, the effective production is enhanced by an improved value chain. The better the value chain, the greater the company’s market contr ol ability will be. Whether an enterprise succeeds or not hence depends largely on the nature and health of an enterprises ‘value chain’. Coke's value chain includes raw materials suppliers, Coca-Cola system such as Coca-Cola bottling company, factory, distribution system and consumers (Bodden, 2008, p45). 3.12 Value chain cycle systemCycle system of Coca-Cola's ‘value chain’ proceeds according to the following way. Coca-Cola’s suppliers provide raw materials such as the ingredients of the beverages, packaging and transportation services. Coca-Cola’s most important cost is in advertising, promotion, market research and maintaining relationships with bottling plants. Bottling plants buy concentrate, and then add carbonic acid and sweeteners, and then bottle or can the product. Bottling plants do the actual production and distribution of the final coke products (Richter, 2009, p68). Distribution system is a bridge between bottling plants and dis tributors, and aims to provide good pre-sale, sale and after-sale service (Schildt Siegfried, 2006, p67). In addition, Coca-Cola's distribution system provides support including booking delivery and traditional delivery support services. Booking delivery refers to provision of personal information such as home address for delivery of goods. The distribution system should ensure that essential requirements are in place to facilitate quality product delivery for instance by having the delivery vehicle regularly serviced and ready to transport products to customers (Brownell, 2010, p339). All stakeholders throughout the value chain work together to create value. The company cooperates with distributors and bottling plants. Bottling plants sell products to distributors, and then the distributors sell products to the consumers (Sicilia Palazà ³n, 2008, p258).4.0 Coca-Cola’s marketing strategy4.1 Coca-Cola’s brand and packaging4.11 Brand Image Every brand owner must cl early and accurately pass their brand image to the target customers to improve visibility, set up the reputation and eventually build a strong brand loyalty. Coke’s brands and associated images are described below: à ¢Ã¢â‚¬â€Ã‚ Coca-ColaIt has real cola flavor and develops an off-dry carefree mood for the consumer. Its target customers are teenagers between 16 and 24 years. In terms of market position it is the world's first brand of soft drink and coke products.à ¢Ã¢â‚¬â€Ã‚ Diet CokeIt has real cola taste, little calorie and has a stimulant. Its target customers are people in the age bracket of 20 to 34 years. à ¢Ã¢â‚¬â€Ã‚ SpriteIt contain a lemon flavor, has no caffeine and is full of vitality. The target customers are people aged 20 to 29 years and the image created is of confidence in success and a positive enterprising personality. Its market position is leading worldwide in sales among lemon type soft drinks. It is ranked fourth in overall soft drink sales glob ally. à ¢Ã¢â‚¬â€Ã‚ FenderIt is associated with high quality, has a variety of fruit juice tastes and is sweet. Its target customers are teenagers between 12 and 19 years old. Its market position is presently a leading drink globally for orange flavor soft drinks. It is ranked third in overall soft drink sales worldwide. à ¢Ã¢â‚¬â€Ã‚ Sun It is tastier than the other brands, has a strong fruit flavor and is associated with developing a carefree state of the mind. Its target customers are adolescents aged between 13 and19 years. The market position is second among carbonated drinks. It is also a leading fruit juice beverage. 4.12 Coca-Cola’s packaging strategyBrand has always been regarded as the most important asset by every enterprise, so do Coca-Cola. Packaging strategy is the most external performance of a brand. The quality of Coca-Cola remains unchanged in one hundred years, but in almost every few years Coca-Cola has made minor adjustments and replacements on its o wn brand image to adapt to the changing market (Bodden, 2011, p9...