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COCA-COLA STRATEGIC ANALYSIS 1
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COCA-COLA STRATEGIC ANALYSIS
Strategies
The coca cola company is the largest beverage producer in the
world operating in over 200 countries. The success of the
company depicts effective management and proper layout of the
firm’s goals and objectives. The Coca-Cola journey to success
has not been easy, and it is even harder to maintain its position
at the top with fierce competitors like the Pepsi always on its
trail seeking an opportunity to exploit the market. The Coca-
Cola Company must, therefore, come up with sound long-term
strategies to achieve its long-term objectives and to
accommodate the changes in demand and technology.
The Coca-Cola Company main objective is to be globally known
as a business that conducts its operation with ethics and
responsibility (www.coca-colacompany.com, 2016). Also, it
aims at accelerating sustainable growth so at to fit in the future
market efficiently. It is this core objective that leads the
company in making its decisions; how much to invest in stars,
question marks, dogs and cash cows and therefore exploiting the
available market opportunities using the products and leap
maximally
The second Coca-Cola Company objective is to attain
productivity at all the time by effectively managing its people,
time and money. Through effective management of its
resources, the company will attain effectiveness, thereby
achieving its long-term sustainable growth
(www.suredividend.com, 2016). Effective utilization of the
least available time, reducing operating costs, and maximal
utilization of the available labor will always ensure that the
company is successful even in the future
The company aims at maximizing profits from its global
operations (www.coca-colacompany.com, 2016). However,
while maximizing its returns to the shareowners, the Coca-Cola
Company aims to do so while being mindful of its overall
responsibilities. The Company believes it cannot use
unorthodox means to increase its profitability and therefore it
cannot use misleading advertisements, compromise on quality
and use unfair means to get rid of its competitors. Instead, it
must find fair methods always to surpass its competitors and
progressively increase its returns.
The Coca-Cola Company can attain its long-term objectives
using a series of strategies which are crucial to ensuring its
success. To be globally known the company has to target
different parts of the globe with products, gaining their
popularity and brand names. The bottling partners must always
stay close to the customers such as street vendors among others,
and they also have to create and use localized strategies laid
down in partnership with Coca-Cola. Attaining the objective is
also made easier because the company narrows down the
competition with other beverage companies because its various
brands are the possible competitors (www.vault.com, 2017).
For example, the company cannot worry about Fanta brand
bringing competition to Coke brand.
Aggressive expansion of productivity calls for an analysis of the
cost saving opportunity in line with the business models which
the company is operating. Cost cutting and productivity
measures will be enabled by efficiency and increased discipline
in direct marketing investments, implementation of zero-based
budgeting, and restructuring of the company’s global supply
chain to minimize costs.
Coca-Cola Company profit maximization objective is only
guaranteed by efficiency; in matters of marketing, partnering,
internal operations, among others. Exploiting the already set
markets and new ones using a variety of the Company’s
different products ensures that the company increases a base for
its customers. However to reach these new customers, effective
adverting is required such that it can reach many people at a
low cost (www.coca-colacompany.com, 2016). On the other
hand, tailoring products regarding the local market will ensure
that the company will maximally benefit from sales
The long-term objectives include:
1. To be globally known as a business that conducts its
operation with ethics and responsibility
2. Attain productivity at all the time by effectively managing
its people, time and money
3. Maximizing on profits
The long-term strategies include:
1. Target different parts of the globe with products such each
of their products thrives in the market they exploit
2. Implementation of zero-based budgeting. A zero-based
budgeting will always ensure that that the unnecessary costs are
minimized in order to boost the overall returns
3. Restructuring of the company’s global supply chain to
minimize costs by ensuring that the products reach the
customers with less incurred costs
4. Ensuring efficiency so as to make sure that they have better
techniques of reducing costs and consequently increasing their
profits.
5. Effective adverting to make sure that the customers are
well informed of the products in order to boost the sales
References
www.coca-colacompany.com (Oct 21, 2016) Actions to Drive
Stronger Growth, Retrieved from http://www.coca-
colacompany.com/press-center/press-releases/the-coca-cola-
company-announces-actions-to-drive-stronger-growth
www.suredividend.com (May 24, 2016) Coca-Cola’s Growth,
Retrieved from www.suredividend.com
http://www.suredividend.com/coca-colas-growth-potential/
www.vault.com (January 15, 2017) The Coca-Cola Company
Retrieved from http://www.vault.com/company-profiles/food-
beverage/the-coca-cola-company/company-overview.aspx

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COCA-COLA STRATEGIC ANALYSIS12COCA-COLA STRATEGIC ANALYSIS.docx

  • 1. COCA-COLA STRATEGIC ANALYSIS 1 2 COCA-COLA STRATEGIC ANALYSIS Strategies The coca cola company is the largest beverage producer in the world operating in over 200 countries. The success of the company depicts effective management and proper layout of the firm’s goals and objectives. The Coca-Cola journey to success has not been easy, and it is even harder to maintain its position at the top with fierce competitors like the Pepsi always on its trail seeking an opportunity to exploit the market. The Coca- Cola Company must, therefore, come up with sound long-term strategies to achieve its long-term objectives and to accommodate the changes in demand and technology. The Coca-Cola Company main objective is to be globally known as a business that conducts its operation with ethics and responsibility (www.coca-colacompany.com, 2016). Also, it aims at accelerating sustainable growth so at to fit in the future market efficiently. It is this core objective that leads the company in making its decisions; how much to invest in stars, question marks, dogs and cash cows and therefore exploiting the available market opportunities using the products and leap maximally The second Coca-Cola Company objective is to attain productivity at all the time by effectively managing its people, time and money. Through effective management of its resources, the company will attain effectiveness, thereby achieving its long-term sustainable growth (www.suredividend.com, 2016). Effective utilization of the least available time, reducing operating costs, and maximal
  • 2. utilization of the available labor will always ensure that the company is successful even in the future The company aims at maximizing profits from its global operations (www.coca-colacompany.com, 2016). However, while maximizing its returns to the shareowners, the Coca-Cola Company aims to do so while being mindful of its overall responsibilities. The Company believes it cannot use unorthodox means to increase its profitability and therefore it cannot use misleading advertisements, compromise on quality and use unfair means to get rid of its competitors. Instead, it must find fair methods always to surpass its competitors and progressively increase its returns. The Coca-Cola Company can attain its long-term objectives using a series of strategies which are crucial to ensuring its success. To be globally known the company has to target different parts of the globe with products, gaining their popularity and brand names. The bottling partners must always stay close to the customers such as street vendors among others, and they also have to create and use localized strategies laid down in partnership with Coca-Cola. Attaining the objective is also made easier because the company narrows down the competition with other beverage companies because its various brands are the possible competitors (www.vault.com, 2017). For example, the company cannot worry about Fanta brand bringing competition to Coke brand. Aggressive expansion of productivity calls for an analysis of the cost saving opportunity in line with the business models which the company is operating. Cost cutting and productivity measures will be enabled by efficiency and increased discipline in direct marketing investments, implementation of zero-based budgeting, and restructuring of the company’s global supply chain to minimize costs. Coca-Cola Company profit maximization objective is only guaranteed by efficiency; in matters of marketing, partnering, internal operations, among others. Exploiting the already set markets and new ones using a variety of the Company’s
  • 3. different products ensures that the company increases a base for its customers. However to reach these new customers, effective adverting is required such that it can reach many people at a low cost (www.coca-colacompany.com, 2016). On the other hand, tailoring products regarding the local market will ensure that the company will maximally benefit from sales The long-term objectives include: 1. To be globally known as a business that conducts its operation with ethics and responsibility 2. Attain productivity at all the time by effectively managing its people, time and money 3. Maximizing on profits The long-term strategies include: 1. Target different parts of the globe with products such each of their products thrives in the market they exploit 2. Implementation of zero-based budgeting. A zero-based budgeting will always ensure that that the unnecessary costs are minimized in order to boost the overall returns 3. Restructuring of the company’s global supply chain to minimize costs by ensuring that the products reach the customers with less incurred costs 4. Ensuring efficiency so as to make sure that they have better techniques of reducing costs and consequently increasing their profits. 5. Effective adverting to make sure that the customers are well informed of the products in order to boost the sales
  • 4. References www.coca-colacompany.com (Oct 21, 2016) Actions to Drive Stronger Growth, Retrieved from http://www.coca- colacompany.com/press-center/press-releases/the-coca-cola- company-announces-actions-to-drive-stronger-growth www.suredividend.com (May 24, 2016) Coca-Cola’s Growth, Retrieved from www.suredividend.com http://www.suredividend.com/coca-colas-growth-potential/ www.vault.com (January 15, 2017) The Coca-Cola Company Retrieved from http://www.vault.com/company-profiles/food- beverage/the-coca-cola-company/company-overview.aspx