Strategy analysis of coca cola

Strategy Analysis of Coca Cola Md Ismail Hossain, Department of Accounting Information Systems, University of Dhaka, Email Ismail ais217gmail com i Executive summary In this report, an inner view of Coca Cola Company has been revealed Here, different types of strategy analysis tools have been used and we try to find out the actual position or environment of the Coca Cola Company Basically, we use different types of the matrix such as SWOT matrix, EFE matrix, IFE matrix and QSPM matrix for thi.

Strategy Analysis of Coca-Cola Md Ismail Hossain, Department of Accounting & Information Systems, University of Dhaka, Email: Ismail.ais217@gmail.com Executive summary In this report, an inner view of Coca-Cola Company has been revealed Here, different types of strategy analysis tools have been used and we try to find out the actual position or environment of the Coca-Cola Company Basically, we use different types of the matrix such as SWOT matrix, EFE matrix, IFE matrix and QSPM matrix for this purpose At the beginning of the report we have covered the background of Coca-Cola and historical background where we have included its main products and its main competitors and then we try to show company’s performance by using EFE matrix, IFE matrix, SWOT analysis which indicates the strengths, weaknesses, opportunities, and threats of the Coca-cola Company The score of EFE matrix is 3.39 and the score of IFE matrix is 3.03 which indicate a strong position of Coca-Cola Company On the other hand, the Quantitative Strategic Planning Matrix (QSPM) is basically used to find out the most suitable strategies of Coca-Cola Company Here, rating and weight have been used to show scoring of the strategy analysis The reasons behind taking weight and rating have been shown for strategy formulation Initially, we formulated strategies and based on the scores form QSPM matrix we finally select strategies The selected strategies are- reduce investment in soft drinks by 20% in increasing investment in fast food products, chips, cake, and homemade products by 20%; focus on the diversified products through partnerships to reduce the water-related problems and to cope with customer changing needs; diversification of products to cake, biscuits to the developing nations It is expected that by implementing these strategies Coca-Cola Company will be able to avail its opportunities and avoid its threats by gaining competitive advantages i Table of Contents CHAPTER ONE BACKGROUND OF COCA-COLA 1.1 Company overview .1 1.2 Historical Background 1.3 Products 1.4 Competitors 1.5 Analysis of Mission Statement 1.5.1 Mission statement of Coca-Cola Company CHAPTER TWO EXTERNAL ANALYSIS .7 2.1 Introduction .7 2.2 PESTEL analysis .7 2.2.1 Political environment 2.2.2 Economic environment .9 2.2.3 Social environment 10 2.2.4 Technological environment 11 2.2.5 Environmental analysis 12 2.2.6 Legal environment 13 2.3 Key opportunities 14 2.3.1 Developing nations 14 2.3.2 Supply chain improvement 14 2.3.3 Extended Reach 14 2.3.4 Packaged drinking water 15 2.3.5 Improving the lesser selling products 15 2.3.6 Diversification 15 2.3.7 Marketing opportunities 15 2.3.8 Market expansion through partnerships 15 2.4 Key threats 16 2.4.1 Intense competition 16 2.4.2 Changing health-consciousness attitude 16 2.4.3 Water scarcity 16 ii 2.4.4 Strong dollar 16 2.4.5 Legal issue 16 2.5 EFE matrix for Coca-Cola 17 2.5.1 Evaluation of Weighted Score 18 2.5.2 Reasons for weight and rating in EFE Matrix 18 CHAPTER THREE 21 INTERNAL ANALYSIS 21 3.1 STRENGTHS 21 3.1.1 Strong brand image 21 3.1.2 Largest market share 21 3.1.3 Brand value 22 3.1.4 High customer loyalty 23 3.1.5 Extensive distribution network 23 3.1.6 Investment in marketing and advertising 24 3.1.7 High company valuation 24 3.2 Weaknesses 26 3.2.1 Water-related problems 26 3.2.2 Declining revenue 26 3.2.3 Relatively less product diversification 27 3.2.4 Absence in health beverages 27 3.2.5 Problem with foreign currency fluctuation 27 3.2.6 Adjusting consumer changing need 27 3.3 IFE Matrix 28 3.3.1 Evaluation of Weighted Score 29 3.3.2 Reasons for weight and rating in IFE Matrix 30 CHAPTER FOUR 32 STRATEGY FORMULATION (SWOT) 32 4.1 Introduction 32 4.2 SWOT Analysis 34 4.3 QSPM 34 4.4 Internal and External (I/E) Matrix: 38 CHAPTER FIVE 39 iii Conclusion 39 References 41 iv Md Ismail Hossain; Department of Accounting & Information Systems, University of Dhaka Email: Ismail.ais217@gmail.com CHAPTER ONE BACKGROUND OF COCA-COLA 1.1 Company overview Key Facts Name The Coca-Cola Company Founded May 8, 1886 Industries served Beverage Geographic areas served Worldwide (more than 200 countries) Headquarters Atlanta, Georgia, United States Current CEO James Quincey Revenue (US$) 35.410 billion (2017) 15.4% decrease over 41.863 billion (2016) Profit (US$) 1.182 billion (2017) 81.9% decrease over 6.527 billion (2016) Employees 61,800 (2018) Main Competitors PepsiCo Inc., Dr Pepper Snapple Group, Inc., Unilever Group, Mondēlez International, Inc., Groupe Danone, Kraft Foods Inc., Nestlé S.A and many other companies in the beverage industry 1.2 Historical Background The Coca-Cola beverage invented by John Stith Pemberton in 1886, Coca-Cola was meant as a drink to impart good health and stamina Pemberton was a pharmacist from Columbus, Georgia who originally made a cocawine called Pemberton’s French Wine Coca in 1885 When prohibition laws were passed within his county, Pemberton set out to make a new, nonalcoholic drink What he created was a pleasant tasting syrup that could be mixed with carbonated water and served at the soda fountain as a refreshing drink He first sold this drink for five cents a glass at his establishment, Jacob’s Pharmacy in Atlanta, Georgia The average sales for the first eight months averaged nine glasses a day Another Atlanta pharmacist and businessman, Asa Md Ismail Hossain; Department of Accounting & Information Systems, University of Dhaka Email: Ismail.ais217@gmail.com Griggs Candler bought into Pemberton’s company, and in the following year, Pemberton sold Candler his remaining interest in the company Asa Candler purchased exclusive rights to the Coca-Cola formula in 1891 and by the following year, had increased sales ten times over Sales were going so well that Candler sold his pharmaceutical business and devoted himself fully to the success of Coca-Cola His brother, John, and Pemberton’s former partner, Frank Robinson, joined Candler and together they formed The Coca-Cola Company Coca-Cola Wood Triangle Sign the trademark “Coca-Cola” was registered in the US Patent Office on January 31, 1893 Candler continued to grow the business with aggressive advertising and distributing thousands of free drink coupons In 1894 the popular drink was sold in bottles for the first time Beginning in 1899, independent bottling companies were licensed to bottle Coca-Cola – a practice that is still in use today by the US soft drink industry In the early 1920s Robert Woodruff, then president of The Coca-Cola Company, demanded strict standards at soda fountains where drinks were mixed, in order to create a uniform, quality product This “Quality Drink” campaign included having trained service people at the soda fountains to ensure that Coca-Cola was served correctly In 1926 Woodruff established the Foreign Department, which in 1930 became a subsidiary of Coca-Cola known as The Coca-Cola Export Corporation Woodruff was determined to expand the Coca-Cola Company internationally Plants had already been built in France, Cuba, Panama, Canada, Puerto Rico, the Philippines, and Guam Woodruff introduced the revolutionary new 6bottle cartons that made it easier to take Coca-Cola home In 1928, bottle sales exceeded those at the soda fountain In 1929 metal, top-opening coolers were created to dispense bottles of ice-cold Coca-Cola in stores and filling stations Automatic soda dispensers made their debut in 1933 at the Chicago World’s Fair when Coca-Cola introduced the Dole Master Dispenser This was the first soda dispenser that was able to mix the carbonated water and cola syrup together automatically, which was then dispensed merely with a pull of the handle When WWII broke out, Robert Woodruff was quoted as saying that he wanted “to see that every man in uniform gets a bottle of Coca-Cola for cents, wherever he is and whatever it costs the Md Ismail Hossain; Department of Accounting & Information Systems, University of Dhaka Email: Ismail.ais217@gmail.com Company.” During the war, 64 bottling plants were constructed as close as was possible near areas of combat in N Africa, the Pacific, and Europe Military personnel consumed more than billion bottles of Coca-Cola during WWII In 1955 Coca-Cola was first put into cans for military personnel in Japan and the Pacific, but bottlers did not embrace this new container until 1960 The now world-famous drink was also now offered in 10-, 12- and 26-ounce bottles The first plastic 2-liter bottle was introduced in 1977 The Coca-Cola Company introduced Diet Coke in 1982 This was the first extension of the CocaCola and Coke trademarks In two years’ time, Diet Coke was the top-selling diet soft drink in the world In 1985 the formula for Cola-Cola was changed and The Coca-Cola Company released a new Coke There was such a negative reaction to this change that the old formula was re-released within months with the name Coca-Cola Classic On July 12th of 1985, the new Coke was the first soft drink to be consumed in space, having been placed in specially designed cans just for the trip on the Space Shuttle Challenger These containers were called the “Coca-Cola Space Can” Diet Coke became the first diet soft drink consumed in space aboard the Space Shuttle Discovery in February of 1995 This trip marked the first time soda fountain equipment was used in space Today, Coca-Cola produces nearly 450 brands in more than 200 countries and rates as one of the most recognizable trademarks in the world 1.3 Products Coca-Cola makes so many different beverages that if you drank one per day, it would take you over years to try them all (The Coca-Cola Company, 2018) Coca-Cola has a product portfolio of more than 3,500 beverages (and 500 brands), spanning from sodas to energy drinks to soy-based drinks The main products of Coca-Cola are –  COCA-COLA  Sprite Zero Sugar  SPRITE  Kinley  FANTA  Georgia Coffee  Diet Coke  Powerade  Coca-Cola Zero  Del Valle Md Ismail Hossain; Department of Accounting & Information Systems, University of Dhaka Email: Ismail.ais217@gmail.com  Schweppes  Gold Peak  Aquarius  Fuze Tea  Minute Maid Pulpy  Ice Dew  Dasani  smart water  Simply  Thumbs Up Charged etc  Vitamin water 1.4 Competitors The main competitors of Coca-Cola arePepsi – The biggest and closest competitor of Coca-Cola; its archrival PepsiCo was formed after the merger of Pepsi and Frito lay in 1965 The brand has seen growth in organic revenue in 2017 It has 20 billion dollar brands in its product portfolio US is its largest market where it is engaged in intense competition with Coca-Cola Its Net revenue in 2017 was 63.5 Billion Dollars and Gross Profit 28.8 Billion dollars (The Coca-Cola Company, 2018) The two brands compete across several categories including sod beverages, health, and energy drinks as well as bottled water and juices In fact, Pepsi is the toughest competitor of Coca-Cola and their rivalry has come to be termed as Cola wars Red Bull – Red Bull despite its limited product portfolio is a major competitor for the energy drink products of Coca-Cola It is a famous brand that sells across 171 countries and is now focusing on core markets of western Europe and USA for farther growth In 2017, the brand sold more than 6.3 Billion cans and its turnover reached 6.282 Billion Euros (Coca-cola.co.uk, 2018) Red Bull saw its sales booming in 2017 in five major markets including Turkey, India, Netherlands, Northern Europe, and United Kingdom This has led to better financial figures including operating profit and revenues for Red Bull in 2017 Red Bull is the toughest competitor for the energy drinks by Coca-Cola Dr Pepper Snapple – Pepper Snapple has a portfolio of more than 50 refreshing brands These brands include carbonated soft drinks, juices, teas, mixers, waters, and other beverages The brand is a major competitor for Coca-Cola in the US market Its 2017 revenue was 6.4 billion dollars of which 90% was earned from the US market Dr Pepper Snapple has made a series of strategic acquisitions over the last three decades to grow its business and customer base Md Ismail Hossain; Department of Accounting & Information Systems, University of Dhaka Email: Ismail.ais217@gmail.com Nestle – While Nestle is not a direct competitor of Coca-Cola, still it competes with the brand across some specific product categories like bottled water Its Nestle Pure Life and Poland Spring are two bottled water brands that are quite popular and major competitors for Coca Cola’s Dasani Parle – Parle is an Indian brand and competes with Coca-Cola across some specific product categories that include bottled water and juices Parle’s Frooty, Appy and Bailey are major competitors of Coca Cola’s minute maid and other juice products as well as juice drinks and bottled waters in the Indian market 1.5 Analysis of Mission Statement Here we will analyze by providing the given mission statement of Coca-Cola company and restate the mission statement by enlisting the nine instruments which make the mission statement proper and suitable to their stakeholders 1.5.1 Mission statement of Coca-Cola Company Coca-Cola declared that their Roadmap starts with their mission, which is enduring It declares their purpose as a company and serves as the standard against which they weigh their actions and decisions (Publishing, 2018) So the mission statement of Coca-Cola is:  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 No Availability No No Yes No Components of mission statements Customers Products or services Markets Technology Concern for survival, growth, and profitability Philosophy Self-concept Concern for public image Concern for employees Yes No No No Yes Analysis of words To refresh the world To create value and make a difference To inspire moments of optimism and happiness Table 1.0: Analysis of Mission Statement Md Ismail Hossain; Department of Accounting & Information Systems, University of Dhaka Email: Ismail.ais217@gmail.com 3.2.3 Relatively less product diversification The main competitor of Coca-Cola is Pepsi which has made a smart move and diversified into the snacks segment with different products like Lays and Kurkure But Coca-Cola is completely missing in this segment and it can be seen that this segment is a good revenue driver for Pepsi but Coca-Cola has missed the opportunity completely For Coca-Cola, it can be a reason for the loss of market share in the future 3.2.4 Absence in health beverages Nowadays, obesity is a major problem for people around the world Therefore, people are giving more emphasis on healthy beverages for not being obese Carbonated beverages are one of the major reasons for fat intake and Coca-cola is the largest manufacturer of carbonated beverages As a result, people are switching to healthier drinks from Coca-Cola This is reflected in Coca Cola’s revenues which have been in decline since 2012 3.2.5 Problem with foreign currency fluctuation Foreign currency fluctuation is also another weakness for Coca-Cola Company The organization acquires incomes, pays costs, claims resources, and brings about liabilities in nations utilizing monetary standards other than the U.S dollar, including the euro, the Japanese yen, the Brazilian genuine, and the Mexican peso In 2014, it utilized 70 useful monetary standards notwithstanding the U.S dollar and inferred $26.2 billion of networking incomes from operations outside the United States Since its merged monetary proclamations are exhibited in U.S dollars, Coca-Cola must decipher incomes, wage and costs, and in additional resources and liabilities, into U.S dollars at trade rates as a result amid or toward the finish of each revealing period Moreover, Preparation of the balance sheet in U.S dollars is considered a great challenge for it Even though the U.S is strong but this is a great weakness especially due to the market unknowns in these markets due to war, dictatorship, currency manipulations and the business environment as a whole 3.2.6 Adjusting consumer changing need As Coca-Cola is doing business in different countries it is very difficult for it to adjust with consumers’ changing needs and cultural diversity It has to consider what people like to drink and how they like to drink it In the same time, local restaurants and shops are offering different types of freshly made drinks like flavored carbonated drinks and iced coffee As result, they are taking the profit of Coca-Cola products At the same time, health-conscious people abandoning soda as 27 Md Ismail Hossain; Department of Accounting & Information Systems, University of Dhaka Email: Ismail.ais217@gmail.com seen through research that over the past 20 years, sales of full-calorie soda in the United States have plummeted by more than 25 percent, which includes coke drinks 3.3 IFE Matrix Internal Factor Evaluation (IFE) Matrix is a strategic tool used to evaluate a firm’s internal environment and to reveal its strengths as well as weaknesses The internal and external factor evaluation matrices have been introduced by Fred R David in his book ‘Strategic Management’ According to the author, both tools are used to summarize the information gained from the company’s external and internal environment analyses (Jurevicius, 2018) The summarized information is evaluated and used for further purposes, such as, to build SWOT analysis or IE matrix Even though the tools are quite simplistic, they the best job possible in identifying and evaluating the key affecting factors 28 Md Ismail Hossain; Department of Accounting & Information Systems, University of Dhaka Email: Ismail.ais217@gmail.com IFE matrix for Coca-Cola Serial Strengths of Coca-Cola Total Strong Brand Image Largest market share Strong brand portfolio High customer loyalty Extensive distribution network Investment in marketing advertising High company valuation Weaknesses of Coca-Cola and Water related problems Declining revenue Relatively less product diversification Absence in health beverages Problem with foreign currency fluctuation Adjusting consumer changing need Weight Rating Weighted Score 0.11 0.12 0.05 0.09 0.05 0.02 3 0.33 0.48 0.15 0.27 0.15 0.04 0.02 0.08 0.1 0.18 0.07 0.12 0.03 3 0.3 0.54 0.21 0.24 0.12 0.04 0.12 3.03 3.3.1 Evaluation of Weighted Score The weighted score of IFE matrix for Coca-Cola is 3.30 which is above average 2.50 which means that the company is performing well to use its strength and recovering weakness but as the highest score can be so the company has an area of improvement yet 29 Md Ismail Hossain; Department of Accounting & Information Systems, University of Dhaka Email: Ismail.ais217@gmail.com 3.3.2 Reasons for weight and rating in IFE Matrix Serial Strengths of CocaCola Reasons for weight and rating Strong Brand Image Brand image is very important to be accepted by customers vastly and so weight is relatively high 0.11 On the other hand, the company is quite successful to keep this brand image though there are other strong brands like Pepsi So the rating is here Largest market share The company has been able to capture a large market share and it is also continuing it which is very important for a company As a result, the score is 0.12 The company is able to keep and capture the big market and so the rating is here Strong brand portfolio To survive in the market you have to expand your portfolio continuously Coca-Cola is also extending its portfolio continuously But other competitors are also very strong here So, in this case, the score is 0.05 and the rating is here High customer loyalty Customer loyalty is very important for consistent performance Coca-cola is also very strong in this position but its competitors have also strong customer loyalty So it has a room for development in this area Therefore, here score is 0.09 and rating is Extensive distribution network The distribution network is very important for cost structure of a company and the company has a good distribution network So here score is 0.05 and the rating is Marketing and advertising expense are very important for the profitability of a company and Coca-Cola have to invest here Investment in marketing regular basis But its revenue is not improving continuously and advertising So there is a scope for efficiency Therefore, here score is 0.02 and the rating is High company valuation Value of a company is very important for investors and it has been increased rapidly So here score is 0.02 and the rating is 30 Md Ismail Hossain; Department of Accounting & Information Systems, University of Dhaka Email: Ismail.ais217@gmail.com Serial Weaknesses of Coca-Cola Reasons for weight and rating The water problem is one of the most important Water-related problems weaknesses of Coca-Cola It has been facing this problem for a long time period and it has also taken some initiative So here score is 0.10 and the score is It is the main weakness of Coca-Cola company and there Declining revenue taken different types of initiatives for the improvement of its revenue So here weight is 0.18 and the rating is Relatively less product are different factors for this decline and Coca-Cola has diversification Products of Coca-Cola is less diversified beyond soft drinks relative to its competitors but it is on the process of diversification So here weight is 07 and rating is It is an important concern of people and they are The absence of healthy becoming health conscious but Coca-Cola is not very beverages proactive in this area So weight is 0.12 and the rating is It is very common for multinational companies and Problem with foreign currency Coca-Cola is handling it consistently but there are some fluctuation chances of loss So here weight is 0.03 and the rating is Assuming the demand of customers is very important Adjusting consumer changing and in the changing world it is very essential but Cocaneed Cola is trying to cope with it So here weight is 0.04 and the rating is 31 Md Ismail Hossain; Department of Accounting & Information Systems, University of Dhaka Email: Ismail.ais217@gmail.com CHAPTER FOUR STRATEGY FORMULATION (SWOT) 4.1 Introduction SWOT analysis is most commonly used by business entities, but it is also used by nonprofit organizations and, to a lesser degree, individuals for personal assessment Additionally, it can be used to assess initiatives, products or projects The framework is credited to Albert Humphrey, who tested the approach in the 1960s and 1970s at the Stanford Research Institute Developed for business and based on data from Fortune 500 companies, the SWOT analysis has been adopted by organizations of all types as an aid to making decisions SWOT Strengths Weaknesses Opportunities Formulation of Strategies Threats This Coca-Cola SWOT analysis reveals how the company controlling one of the most iconic brands of all time used its competitive advantages to become the world’s second largest beverage manufacturer (Frue, 2018) It identifies all the key strengths, weaknesses, opportunities and threats that affect the company the most After that based on the strength, weakness, opportunities, and 32 Md Ismail Hossain; Department of Accounting & Information Systems, University of Dhaka Email: Ismail.ais217@gmail.com threats we have formulated different types of strategies which will help us to avail the opportunities and increase strengths of Coca-Cola Besides, these strategies will also help Coca-Cola to avoid threat and decreasing weakness After that using the QSPM matrix, we have checked the attractiveness score (AS) of different strategies and based on these scores we have suggested most appropriate strategies 33 Md Ismail Hossain; Department of Accounting & Information Systems, University of Dhaka Email: Ismail.ais217@gmail.com 4.2 SWOT Analysis Opportunities Developing nations Extended Reach Packaged drinking water Market the lesser selling products Diversification Marketing opportunities Market expansion through partnerships Threats Intense competition Changing healthconsciousness attitude Water scarcity Strong dollar Legal issue Strengths of Coca-Cola Strong Brand Image Largest market share Strong brand portfolio High customer loyalty Extensive distribution network Investment in marketing and advertising High company valuation SO strategy Increase marketing expense by 15% (By using a strong brand image, Coca-Cola can avail the over-population of Asian countries like Bangladesh and India) (S1,7; O1,6) Increase investment to packaged drinking water by 20-25% to increase their market share.(Since hygienic water lacks in developing nations, so they can utilize their strong brand value, high customer loyal of Coca-Cola and largest market share to differentiate their products like in the juice and coffees ) (S7; O3) ST strategy Invest in the fast food products by $100million (As they can diversify the competition since they have high customer loyalty and high distribution network.) (S4;T1) Use hedging and open L/C with their strong brand value of $79 billion to reduce the strong dollar issue (S7;T4) 4.3 QSPM 34 Weaknesses of Coca-Cola Water-related problems Declining revenue Relatively less product diversification The absence of healthy beverages Problem with foreign currency fluctuation Adjusting consumer changing need WO strategy Diversification of products to cake, biscuits to the developing nations (It will reduce the waterrelated problems every year about 10 %.) (O5; W1,2) Focus on the diversified products through partnerships to reduce the water-related problems and to cope with customer changing needs (O7,W6) WT strategy Reduce investment in soft drinks by 20% in increase investment in fast food products, chips, cake, and homemade products by 20% (T1,4;W1,2,3) Invest in healthy beverages by $200million to avoid the health-consciousness attitude of customer.(T2;W4) Strategy Strategy Strategy Strategy Strategy Strategy Ismail Hossain; Department Systems,AS University Weight ASof Accounting TAS & Information AS TAS TASof Dhaka AS Email: TASIsmail.ais217@gmail.com AS TAS AS TAS key Md Factors Opportunities Developing nations Supply chain improvement Extended Reach Packaged drinking water Improving the lesser selling products Diversification Marketing opportunities Market expansion through partnerships Strategy AS TAS Strategy AS TAS 0.14 0.56 0.56 0.28 0.28 0.28 0.42 0.42 0.42 0.08 0.24 0.32 0.32 0.16 0.08 0.16 0.32 0 0.1 0.2 0.3 0.2 0.3 0.1 0 0.2 0 0.07 0.21 0.28 0 0.07 0 0 0 0 0.07 0.14 0.07 0.14 0.21 0 0 0.14 0 0.1 0 0 0.3 0.3 0.4 0 0.3 0.2 0.06 0 0 0.18 0.24 0.12 0.06 0.06 0.06 0.09 0 0 0.18 0.36 0.09 0.09 0.09 0.09 0.13 0.39 0.13 0.26 0.39 0.52 0 0.52 0.52 0.1 0 0 0 0 0 0 0.3 0.3 0.06 0.04 0.05 0 0 0 0 0 0 0 0 0 0 0.12 0 0 0 0 4 0.16 0.2 0 0.18 0 0 0 0 0.11 0.44 0.44 0.44 0.33 0.44 0.11 0.33 0.33 Threats Intense competition Changing healthconsciousness attitude Water scarcity Strong dollar Legal issue Total Strengths Strong Brand Image 35 Md Ismail Hossain; Department of Accounting & Information Systems, University of Dhaka Email: Ismail.ais217@gmail.com Largest market share Strong brand portfolio High customer loyalty Extensive distribution network Investment in marketing and advertising High company valuation 0.12 0.48 0.36 0.48 0.24 0.36 0 0.36 0.36 0.05 0.15 0.15 0.15 0.1 0.15 0 0.15 0.15 0.09 0.36 0.36 0.27 0.27 0.27 0 0.36 0.27 0.05 0.15 0.15 0.2 0.15 0.1 0 0.2 0.2 0.02 0.02 0 0.02 0.02 0.04 0 0 0 0.02 0 0 0 0 0 0 0 0 0.1 0 0 0.4 0.4 0 0 0.4 0 0.18 0.54 0.72 0.36 0.36 0.36 0.36 0.54 0.36 0.07 0.14 0.14 0.21 0.14 0.21 0 0.21 0.21 0.12 0 0 0 0 0 0 0 0.48 0.03 0 0 0 0 0 0.12 0 0 0.04 0 0.08 0 0.08 0.08 0 0.08 0.08 Weaknesses Water related problems Declining revenue Relatively less product diversification Absence in health beverages Problem with foreign currency fluctuation Adjusting consumer changing need 4.02 4.06 4.39 4.52 36 3.6 1.68 5.16 4.03 Md Ismail Hossain; Department of Accounting & Information Systems, University of Dhaka Email: Ismail.ais217@gmail.com Ranking of Strategies: Strategies: Score Strategy 5.16 Strategy 4.52 Strategy 4.39 Strategy 4.06 Strategy 4.03 Strategy 4.02 Strategy 3.6 Strategy 1.68 Rank Based on the score of QSPM matrix we have ranked strategies and we would suggest that CocaCola Company should pursue the strategies according to ranking But as it is very tough to implement all the strategies at a time due to time, money and other required resources, we would like to suggest strategies to pursue for Coca-Cola Company (Maxi-pedia.com, 2018) Finally, the selected strategies are – Strategy 7: Reduce investment in soft drinks by 20% in increasing investment in fast food products, chips, cake, and homemade products by 20% Strategy 4: Focus on the diversified products through partnerships to reduce the water-related problems and to cope with customer changing needs Strategy 3: Diversification of products to cake, biscuits to the developing nations (like India, Bangladesh, Pakistan) It is expected that by implementing these strategies Coca-Cola Company will be able to avail its opportunities and avoid its threats by gaining competitive advantages 37 Md Ismail Hossain; Department of Accounting & Information Systems, University of Dhaka Email: Ismail.ais217@gmail.com 4.4 Internal and External (I/E) Matrix: The score of EFE matrix is 3.39 and the score of IFE matrix is 3.03 THE IFE TOTAL WEIGHTED SCORES 4.00 3.00 I 2.00 1.00 II III IV V VI VII VIII XI (Coca Cola Company) THE EFE TOTAL WEIGHTED SCORE (3.39 , 3.03) Based on the EI matrix we should go for Grow and Build strategies like market development, product development, market development, market penetration or integration It also support result drown from SWOT matrix Product Development: Reduce investment in soft drinks by 20% in increasing investment in fast food products, chips, cake, and homemade products by 20% Horizontal integration: Focus on the diversified products through partnerships to reduce the water-related problems and to cope with customer changing needs 38 Md Ismail Hossain; Department of Accounting & Information Systems, University of Dhaka Email: Ismail.ais217@gmail.com CHAPTER FIVE Conclusion The Coca-Cola Company is now one of the most successful companies of the world and here we have tried to find out the ins and outs of Coca-Cola Company At first, we have analyzed the mission statement of Coca-Cola Company and tried to identify major elements of mission statement like – customer, products and service, philosophy, self-concept, technology, concern of survival, growth, and profitability, concern for public image, concern for employees, market Some elements of mission statement have been found in its mission statement and then we have restated a mission statement focusing on those elements Then we have analyzed the external and internal environment of coca cola For analyzing the external environment of Coca-Cola Company we have used PESTEL and then identified major opportunities and threats Its major opportunities are developing nations, extended Reach, packaged drinking water, market the lesser selling products, diversification, marketing opportunities and market expansion through partnerships On the other hand, our major threats are intense competition, changing health-consciousness attitude, water scarcity, strong dollar, legal issue Based on our major opportunities and threats we have formulated EFI matrix The score of EFE matrix is 3.39 and the score of IFE matrix is 3.03 which indicate a strong position of Coca-Cola Company Finally, based on those elements of the external environment and the internal environment we have formulated our SWOT In our analysis we have tried to consider all the strength, weakness, opportunities and threats and using those elements we have formulated strategies initially and based on the scores form QSPM matrix we finally select strategies Finally, the selected strategies are –  Reduce investment in soft drinks by 20% in increasing investment in fast food products, chips, cake, and homemade products by 20%  Focus on the diversified products through partnerships to reduce the water-related problems and to cope with customer changing needs  Diversification of products to cake, biscuits to the developing nations Moreover, the Coca-Cola achievement isn't something that has been accomplished overnight Many years have gone since John Pemberton made the mystery recipe for Coca-Cola in 1886 Who might have imagined that after over a hundred years, his creation would have this much effect in the world and transform Coca-Cola into a worldwide recognized brand? 39 Md Ismail Hossain; Department of Accounting & Information Systems, University of Dhaka Email: Ismail.ais217@gmail.com To produce the world's best-known item, The Coca-Cola Company needs to utilize the most noteworthy quality procedures and build up principles which ensure the creation of an institutionalized item which lives up to buyers' high desires every last time they drink a bottle or can of Coca-Cola In spite of the fact that Coca-Cola is performing admirably and picking up the trust of its shoppers and getting new purchasers to trust each day, it should act far superior to keep its current position in drink industry and continue developing The Company should expand its investor's riches by expanding its deals and diminishing the costs which will result in higher income and net benefit We would like to propose the accompanying proposals for the Coca-Cola Company: Today everything is quickly changing and organizations for surviving ought to run well ordered with those changes The advancement gives the organization key favorable position among its adversaries So Coca-Cola Company can present another item, which numerous individuals will need to attempt Coca-Cola needs to constantly reinforce its image to keep up brand faithfulness and separate itself from its rivals, with the end goal to keep up its solid market position They can invest in other products like fast food, chip, cake etc To reduce the competition in the market and also for the water scarcity problem They can increase revenue by increased marketing expense If they spend more on marketing they can easily grab the attention of consumers more than the other brands of Soft Drinks Company So they should increase the market expense in order to build a strong position in the market and to create more profit Although it has a strong position in the market worldwide But they can make it stronger by doing so in this competitive world Another real resource for an organization of this size and clout is keeping up coherence among the workforce This is fundamental to stay with them in a positive heading, achieving shared objectives and always defining new objective With the end goal to ensure these measures, the Company has needed to build up a cozy association with its franchisees dependent on a shared worry for quality And Total Quality Management lies at the core of this procedure including a consistent accentuation on getting quality models right every time and on constantly looking for better approaches to enhance execution 40 Md Ismail Hossain; Department of Accounting & Information Systems, University of Dhaka Email: Ismail.ais217@gmail.com References Bhasin, H (2018) SWOT of Coca Cola - SWOT analysis of Coca cola [online] Marketing91 Available at: [Accessed 20 Nov 2018] Businessteacher.org.uk (2018) Coca-Cola PESTEL Analysis [online] Available at: [Accessed 20 Nov 2018] Coca-cola.co.uk (2018) Our Mission Statement & Company Values | Coca-Cola GB [online] Available at: [Accessed 20 Nov 2018] Frue, K (2018) SWOT Analysis of Coca Cola [online] PESTLE Analysis Available at: [Accessed 20 Nov 2018] Jurevicius, O (2018) Coca Cola SWOT Analysis (6 Key Strengths in 2018) [online] SM Insight Available at: [Accessed 20 Nov 2018] Jurevicius, O (2018) Why you need to know about IFE & EFE Matrices [online] Strategic Management Insight Available at: [Accessed 20 Nov 2018] Maxi-pedia.com (2018) Quantitative Strategic Planning Matrix (QSPM) [online] Available at: [Accessed 20 Nov 2018] Publishing, V (2018) The Coca-Cola Company: A Short SWOT Analysis [online] Valueline.com Available at: [Accessed 20 Nov 2018] The Coca-Cola Company (2018) Brands [online] Available at: [Accessed 20 Nov 2018] 41 ... (2018) SWOT Analysis of Coca Cola [online] PESTLE Analysis Available at: [Accessed 20 Nov 2018] Jurevicius, O (2018) Coca Cola SWOT Analysis. .. subsequent rise of the sale of these products will help revenue of Coca- cola 2.3.6 Diversification Diversification in the health and food business will improve the offerings of Coca- cola to their... attitude of customer.(T2;W4) Strategy Strategy Strategy Strategy Strategy Strategy Ismail Hossain; Department Systems,AS University Weight ASof Accounting TAS & Information AS TAS TASof Dhaka