Coca-Cola Analysis       Name Institution Affiliation       Table of Contents Executive Summary. 3 Introduction. 4 Vision and Mission. 4 Industry Analysis: Porter’s Model Five Forces Analysis. 5 PEST Analysis: External Analysis. 7 Combined Pest and Five forces: Overall Opportunity and Threats. 8 Internal Environment Analysis. 8 Primary activities. 8 Internal environment opportunity and threats. 9Synthesis of internal and external, a complete SWOT analysis. 10 Consultancy advice: Recommendation. 11 Conclusion. 11 Appendices. 14      

Executive Summary

The paper is an assessment of the Coca-Cola Company, the global leader in the soft drinks industry with a product collection exceeding 500 soft drinks brands. The organization’s success is acknowledged worldwide with its operations in countries exceeding 200. The company records overall revenue of 1.9billion daily. Coca-Cola encounters some challenges and opportunities because the global market constantly changes. An external environment analysis is conducted to measure the extent of external environment impact on the business. The external elements that influence Coca-Cola’s business are political, economic, social-cultural and technological dynamics. Internal environment assessment elaborates the company’s internal capabilities. Internal dynamics counts in the management, the product sale and promotion strategies, management of resources and ability to strategize. The conclusion emphasizes that Coca-Cola should diversify its products vertically into non-soda products while maintaining a high competitive position. Along the vertical business line, the company may select include bottling, organic soft drinks processing, water packaging and bottle recycling services. Coca-Cola should realize opportunities beyond the self-set limitations.         Introduction The company is currently the leading in the global non-alcoholic industry with a product collection exceeding 500 brands. Coke’s success is acknowledged worldwide with its operations in countries surpassing 200. The Company was incepted in 1886, and it is one of the respected multinationals with an efficient and successful management team by the late 1990s (Bolland, 2016). Coca-Cola has its headquarters in the United States (US), Atlanta, Georgia. Since 1998, the company has struggled with threats from the external environment and internal weaknesses. The primary goal of the research is to analyze and understand the prevailing position of the soft-drinks industry, measure current opportunities, resources, and threats for Coca-Cola, as well as, providing a strategic recommendation. The Company sustains 123,200 employees as at 2016. As at 31^st December 2015, the company’s consolidated revenue recorded $44.294 billion, which is a 3.7% fall from $45.998 billion in 2014 (Grant, 2016). The net profits reflect $7.351 billion, which is 3.6% increment with regards to the previous $ 7.098 billion in 2014. The company faces competition from every beverage company, including PepsiCo Inc., Unilever, Nestle, Kraft Foods Inc., Groupe Danone and other enterprises in the industry. PepsiCo Inc. is the major Coca-Cola competitor (Kar & Malhotra, 2016).

Vision and Mission

Vision: Coca-Cola’s vision forms the framework guiding every business aspect. 6Ps define the vision: •    People: Be a great workplace while investing on employees to ensure inspiration of being the best. •    Portfolio: Establish a global collection of quality soft drink brands that brings satisfaction and anticipates the needs and desire of consumers. •    Partners: Create a strong nexus of suppliers and buyers motivated by value endurance and mutual benefits. •    Planet: Be an accountable citizen by impacting change by supporting and aiding the establishment of sustainable global communities. •    Profit: Maximize long-term earnings to owners while considering the company’s overall responsibility. •    Productivity: Grow to be a fast-moving, lean and highly efficient organization (Grant, 2016). Mission: The company affirms its drive and attends to the public as the standard set of decisions and actions:  •    To refresh the world •    To inspire happiness and optimism moments •    To make a difference while creating value to the worlds (Louth, 2012).

Industry Analysis: Porter’s Model Five Forces Analysis

Porter’s Five Forces is an external environment analytical tool that explains five external forces that define industrial completion. The forces are represented in figure (1) (MaGrath, 2015) New entrants New entrant’s threats are insignificant in the carbonated drinks industry. The worldwide market is saturated and fully exploited by the existing organizations. Additionally, there is a considerable barrier to knowledge regarding soft drink preparation. There is also a relevant technological barrier that hinders a successful competition with Coca-Cola and Pepsi. Buyer’s bargaining power The power is motivated by the presence of some Cola beverages from which consumers can make choices. Consumers incur no product switching costs, but rather enjoy the price elasticity which increases the purchasing power. There are reported cases of Coca-Cola addictions like in the case of the professional golfer Lawrie Peter (Peng, 2016). However, addiction covers a small segment and hence not that significant. Suppliers Bargaining Power The power of suppliers’ changes depending on the level of the supplier in the chain. Only a few Coca-Cola suppliers have a significant influence such as Nutrinova Nutrition Specialties suppling acesulfame potassium, as well as Ajinomoto and SinoSweet supplying a sweetener (New York Times, 2014). The company employs a diversified group of suppliers with the intention of cutting their bargaining power. Looking back to 2010 to 2013, the cost on suppliers has constantly gone up as illustrated in figure (2).  Rivalry  Pepsi is the strongest Coca-Cola rival with the competition since the 19^th century. The companies specialize in sodas and exhibit tangible disinterest in non-soda drinks. Pepsi owns Rice-A-Roni, Oats Quaker and Doritos hence favoring her in the competition as Pepsi may hedge its business with other business lines as illustrated in the figure (3: a & b). Coca-Cola also directly competes against Pepper Snapple Group. The group does not have a cola, but it features a number of big juice and soft drinks brands (Bolland, 2016). Substitution There are available Coca-Cola substitutes that count in all non-alcoholic beverages in the market globally. The ability of substitution does not require large market leadership, but rather the availability of a drink. For instance, people would choose to drink milk, tea, water, natural home-made fruit juices or any processed drink to quench their thirst in place of soda (Grant, 2016).

PEST Analysis: External Analysis

Political Elements The company is affected by politics, both in the United States, as well as, other continents. The environment includes political stability, global pressure groups’ impact, the nature of the domestic market, as well as, the government’s attitude towards the company and the industry (Kar & Malhotra, 2016). Economic Factors The sales activities of Coca-Cola company are beyond its power management, but it is rather impacted by a set of economic factors. The economic elements include the level of employment, tax level, the value of the domestic currency, labor cost, as well as, the economic growth level in the industry and the country (Louth, 2012). A relevant instance is the 2007-2009 global economic and financial crisis that deteriorated the operations of many global businesses. The company’s margin had no significant effect and remained at 22%, but the dividend return reduced recording a 2.6%. However, changes in foreign exchange have had a substantial effect on the company. An illustration is the devaluation of domestic currency in Venezuela, where the company’s reported profits reduced by 55% in the last quarter of 2014 (McGrath, 2015). Social Factors The global society has increasingly adopted healthy lifestyles and raised concerns towards conditions such as obesity that are fueled by carbonated drinks and sugar. The social improvement has directly affected Coca-Cola’s performance (Rediff, 2003). Regarding figure (4), the level of soda consumption was decreasing significantly in the past years while more consumption of sports drinks and bottled water is noticeable. Technology Technological changes would improve then produce or aid in launching a new brand. The company is significantly using technological tools such as the internet in marketing campaigns and co...