Strategies Analysis Of
Coca Cola
Class 6 Group1:
Cao Rui 379176 Chen Jun 379180 Wu Wei 379369 Weng Lufan 379357 Xue Zhangxu 379395 Zheng Junwei 379449
TABLE OF CONTENTS
CONTENTS
1. Executive Summary 2. Overview
3. 2011 Financial Performance 4. Strategy Formulation 5. SWOT Analysis
6. Internal Factor Evaluation (IFE)
- Strengths - Weaknesses
7. External Factor Evaluation (EFE)
- Opportunities - Threats
8. Construct a Competitive Profile Matrix (CPM) 9. Strategy Decision
10. Strategic Planning and Action Evaluation (SPACE) Matrix 11. Boston Consulting Group (BCG) Matrix 12. Internal – External (IE) Matrix 13. SWOT Matrix
14. Quantitative Strategic Planning Matrix (QSPM) 15. Conclusion
16. Exhibit 1 – Income Statement (including forecast 2012) Exhibit 2 – Balance Sheet (including forecast 2012)
Exhibit 3 – Trend Ratio Analysis
Exhibit 4 – Internal Factor Evaluation (IFE) Matrix Exhibit 5 – External Factor Evaluation (EFE) Matrix Exhibit 6 – Competitive Profile Matrix (CPM) Exhibit 7 – Comparative Ratio Analysis Exhibit 8 – SWOT Matrix
Exhibit 9 – Strategic Planning and Action Evaluation (SPACE) Matrix
Exhibit 10 – Boston Consulting Group (BCG) Matrix Exhibit 11 – Internal-External (IE) Matrix
Exhibit 12 – Quantitative Strategic Planning Matrix (QSPM)
Executive Summary:
Now, Coca-Cola Company is the world's largest beverage company and leader and pioneer in selling soft drinks market. Its success mainly benefits from the perfect combination of its marketing strategy and tactics, It’s a
success of marketing strategy. On this basis, it should also take time to survey the likes and dislikes of different clients, and then produce different products according to different needs. Expand product consumers, and not just focus on young people. Place the right products in the right markets at the right time. Of course, the most important is: seize the opportunities and meet the challenges!
Overview:
The Coca-Cola company was founded in 1892 and currently its headquarters is in Atlanta, the United States. It is the world's largest drinks company, has 48% of the world market share and ranks the world's top three drinks. Coca-Cola was first sold to the public in Atlanta at Jacob’s Pharmacy. Only 9 servings of the soft drink were sold each day. Sales for the first year were only $50. Its 2001 revenue of $20.092 billion, common stock shareholder rights was $11.351 billion. Now Coca-Cola in 200 countries with 160 kind of beverage brands, including soda, sports beverage, dairy drinks, juice, tea and coffee.
2011 Financial Performance (see exhibits 1, 2, and 3)
The company reported revenues of (U.S. Dollars) USD 35,502,000 thousands during the fiscal year ended September 2011, an increase of 1.09% over 2010. The operating profit of the company was USD 9,228,000 thousands during the fiscal year 2011, an increase of 3.15% over 2009. The net profit of the company was USD 7,453,000 thousands during the fiscal year 2011, an increase of 28.35% over 2008.
Selling General and Administrative expenses increased $11671000 thousand in 2009 to $13486000 thousand in 2011, increase by 15.55%, which means that the company focused more on Selling General and Administrative.
Strategy Formulation:
Development for a strategy for the Coca-Cola Company includes the use of SWOT analysis and the SWOT matrix. Review the main rivals, the evaluation of its strengths and weaknesses, and the comparison.
SWOT Analysis:
Coca-Cola is the world's largest drinks company, with giant and strong
advantages of global competitiveness, brand image has been popularity, in the market share high. Not only with innovation and high research and
development ability, also has a fast food industry by strong sales channel. But its organization large, not easy management. With the development of society, more and more people to pursue health food, many people think that it is not healthy food, easy to cause fat. The company’s new expansion plans could ensure its progress for the near future catering to the needs of its customers.
Internal Factor Evaluation (IFE)
As shown in Exhibit 4, Coca-Cola's IFE score was 2.7, reflected strong
competitive advantages for the company, and favorable marketing positioning for the company’s products. Coca-Cola offers a unique combination of organizational and physical resources that support it’s favorable operating results.
Strengths – The highest scores for the company's strengths include the high ability of innovation, research, and development. Coca-Cola has created a strong brand for itself in the drinking industry, and provides a competitive advantage over other players in the market. They use the unique flavor and price strategy to attract more customers.
Weaknesses - Coke contains caffeine and other components, this is a slightly bad places that compared with other health drinks, such as milk. And it's a large organization, not easy to manage, and less use of celebrity advertising, decrease attraction.
External Factor Evaluation (EFE)
As shown in exhibit 5, Coca-Cola scored an overall EFE score of 2.74, which is relatively high for the industry.
Opportunities - World-wide family drinks market is expected to increase. The growing Fast food market could strongly promote the company's retail growth. Favorable growth expectations from advertising can boost revenues. Coke's