Case

study:

Coca-cola company
Socia, Gladys A.
Francisco, Eliza May G.
Ronquillo, Michaela N.
Catarig, Jenica V.
Bitoin, Pia M.
Candelaria, Joresita
Viesca, Clarise Joy P.
Alonzo, Aarmi R.
Daseco, Pia Samantha T.
Bulasco, Joanne S.
Malabanan, Karl Louis R.

STEP 1: Identify the firms existing vision, mission, objectives and strategies.
Coca-Colas vision statement is:
People: be a great place to work where people are inspired to be the best they can be.
Portfolio: bring to the world a portfolio of quality beverage brands that anticipate and
satisfy peoples desires and needs.
Partners: nurture a winning network of customers and suppliers, together we create
mutual, enduring value.
Planet: be a responsible citizen that makes a difference b helping build and support
sustainable communities.
Profit: maximize long-term return to shareowners while being mindful of our overall
responsibilities.
Productivity: be a highly effective, lean and fast-moving organization.
Coca-Colas mission statement is:
To refresh the world.
To inspire moments of optimism and happiness.
To create value and make a difference.
STEP 2: Develop vision and mission statements for the organization.
Vision
Our vision is to be the worlds best-known and biggest-selling beverage products focusing on
manufacturing healthy and refreshing drinks while maximizing stakeholders value.
Mission
We create value by providing the best beverages, energy drink, and juice drinks (2) that is
available around the world (3). We are focused on the safety of our consumers (1), thats why we
aim to provide them with healthy, tasty, and refreshing drinks through the use of technology to
discover and improved our products (4). At Coca-Cola, we are committed to continuously
enhancing our corporate value and employee morale (9) and maintain a sustainable long-term
development and generate greater returns for our shareholders (5). We believe integrity is at the
core of who we are (6) separating us from competitors is how we treat our people (7) and how
we care for the environment (8).
We create value by providing the best beverages, energy drink, and juice drinks that is
available around the world. We are focused on the safety of our consumers, thats why we aim to
provide them with healthy, tasty, and refreshing drinks through the use of technology to discover

and improved our products. At Coca-Cola, we are committed to continuously enhancing our
corporate value and employee morale and maintain a sustainable long-term development and
generate greater returns for our shareholders. We believe integrity is at the core of who we are
separating us from competitors is how we treat our people and how we care for the
environment.
STEP 3: Identify the organizations external opportunities and threats.
OPPORTUNITIES
1. Appearance in emerging markets
2. Have 22M fans on Facebook
3. The number one most followed food/beverage brand on twitter
4. Development of low and zero calorie nutritional beverage
5. In-line competitor acquisition and different product line acquisition
6. Dropping of Pepsi Raw of PepsiCo
7. Collaboration with Apple in Europe
8. Continues to lead in market share with 42%
9. Presence in packed drinking water
10. Large private sector employer in Africa
THREATS
1. Competitors are more focused on nutritional drinks
2. Health issues revolving around: soft drinks have recently created challenges for beverages
manufacturers
3. Intense rivalry with PepsiCo
4. Difficulty in complying with different government regulations and norms in different countries
5. Inflation, economic slowdown and instability
6. Selling of snacks and soda in vending machines being banned in public education institution
7. Leading of Gatorade (PepsiCo) for decades
8. Accreditation of FDA and NAS of PepsiCo
9. Shorter cash conversion cycle of Hansen
10. Obama Administration promoting healthier society
STEP 4: Construct a Competitive Profile Matrix (CPM)
Pepsi Company
Critical Success
Factors
1. Number of
Employees
2. Variety of
Products
3. Brand Reputation
4. Market Share
5. Promotions

Dr Pepper Snapple
Group, Inc
Rank
Score

Coca-Cola
Company
Rank
Score

Weights

Rank

Score

0.07

0.28

0.07

0.21

0.12

0.36

0.12

0.48

0.10
0.07
0.08

4
3
3

0.40
0.21
0.24

2
2
2

0.20
0.14
0.16

3
4
4

0.30
0.28
0.32

6. Healthy Products
7. Brand Loyalty
8. Customer Loyalty
9. Market
Capitalization
10. Sales
11. EPS
12. Net Income
Total

0.14
0.07
0.11
0.05

3
3
3
3

0.42
0.21
0.33
0.15

4
2
2
1

0.56
0.14
0.22
0.05

2
4
4
4

0.28
0.28
0.44
0.20

0.06
0.05
0.08
1.00

4
3
3

0.24
0.15
0.24
3.23

1
2
1

0.06
0.10
0.08
1.9

3
4
4

0.18
0.20
0.32
3.49

STEP 5: Construct an External Factor Evaluation (EFE) matrix.

OPPORTUNITIES
1. Appearance in emerging markets
2. Have 22M fans on Facebook
3. The number one most followed food/beverage
brand on twitter
4. Development of low and zero calorie nutritional
beverage
5. In-line competitor acquisition and different
product line acquisition
6. Dropping of Pepsi Raw of PepsiCo
7. Collaboration with Apple in Europe
8. Continues to lead in market share with 42%
9. Presence in packed drinking water
10. Large private sector employer in Africa

THREATS
1. Competitors are more focused on nutritional drinks
2. Health issues revolving around: soft drinks have
recently
created
challenges
for
beverages
manufacturers
3. Intense rivalry with PepsiCo
4. Difficulty in complying with different government
regulations and norms in different countries
5. Inflation, economic slowdown and instability
6. Selling of snacks and soda in vending machines
being banned in public education institution
7. Leading of Gatorade (PepsiCo) for decades
8. Accreditation of FDA and NAS of PepsiCo

Weight
0.08
0.035
0.035

Ratin
g
3
4
4

Weighted Average

0.07

0.28

0.05

0.20

0.035
0.055
0.045
0.065
0.03

2
4
4
1
3

0.07
0.22
0.18
0.065
0.09

Weight
0.095
0.065

Ratin
g
3
3

Weighted Average
0.285
0.195

0.05
0.03

4
3

0.20
0.09

0.06
0.02

3
1

0.18
0.02

0.065
0.040

2
3

0.13
0.12

0.24
0.14
0.14

9. Shorter cash conversion cycle of Hansen

10.Obama Administration promoting healthier
society
TOTAL

0.035
0.040

3
3

0.105
0.12

1.00

3.07

STEP 6: Identify the organizations internal strengths and weaknesses.

STRENGTHS
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.

Largest beverage company worldwide

Largest market share
Brand popularity around the world
Strong financial condition
Produces about 400 brands consisting of over 3,000 beverages products
Owns 4 of top 5 soft drinks brands in the world
Coca-Cola has a leading brand value
Strong brand portfolio
Great marketing and advertising strategies
Strong online presence
High demand for products
Strong customer loyalty

WEAKNESSES
1.
2.
3.
4.
5.

Hyperactivity of children due to artificial colorings of product

Bottle packaging contains HCF (hydro fluorocarbon)
Low product diversification
Products viewed as an unhealthy beverage due to carbon composition
Discontinuing of many products (New Coke, Coca-Cola with Lemon, Coca-Cola with Lime,
Coca-Cola Black, etc.) after few years of launching which result in bad image of the brand
6. No presence in food or snack industry
7. Lack of popularity of some Coca-Cola product worldwide
8. A debt of $9.3M

STEP 7: Construct an Internal Factor evaluation (IFE) Matrix.

Weight

Ratin
g

Weighted
Score

0.05
0.04

4
3

0.2
0.12

STENGTHS:
1. Largest beverage company worldwide
2. Largest market share

3. Brand popularity around the world

4. Strong financial condition
5. Produces about 400 brands consisting of over 3,000
beverages products
6. Owns 4 of top 5 soft drinks brands in the world
7. Coca-Cola has a leading brand value
8. Strong brand portfolio
9. Great marketing and advertising strategies
10.Strong online presence
11.High demand for products
12. Strong customer loyalty

0.04
0.06
0.04

3
4
3

0.12
0.24
0.12

0.06
0.07
0.05
0.06
0.04
0.06
0.04

4
4
4
4
3
4
3

0.24
0.28
0.2
0.24
0.12
0.24
0.12

0.04

0.04

0.03
0.05
0.07

1
2
2

0.03
0.1
0.14

0.05

0.1

0.07
0.06
0.02
1.00

2
2
1

0.14
0.12
0.02
2.93

WEAKNESSES:
1. Hyperactivity of children due to artificial colorings of
product
2. Bottle packaging contains HCF (hydro fluorocarbon)
3. Low product diversification
4. Products viewed as an unhealthy beverage due to carbon
composition
5. Discontinuing of many products (New Coke, Coca-Cola
with Lemon, Coca-Cola with Lime, Coca-Cola Black,
etc.) after few years of launching which result in bad
image of the brand
6. No presence in food or snack industry
7. Strong competition in carbonated drinks
8. A debt of $9.3M
TOTAL:

STEP 8: Prepare a Strengths-Weaknesses-Opportunities-Threats (SWOT) Matrix,

Strategic Position and Action Evaluation (SPACE) Matrix, Boston Consulting group (BCG)
Matrix, Internal-External (IE) Matrix, Grand Strategy Matrix, and Quantitative Strategic
Planning Matrix (QSPM) as appropriate. Give advantages and disadvantages of alternative
strategies.
A. Strengths-Weaknesses-Opportunities-Threats (SWOT) Matrix
The strategy that best fit Coca-Cola Company is to develop healthy (low and zero calorie
nutritional) beverage thatll mostly contain of naturally sourced ingredients to embrace and
comprehend societys health consciousness. It is beneficial and favorable for the company for
itll eliminate threats to government compliance and regulations and competitors present
products that are already inspired and developed because of the issue about carbonated
beverages.

B. Strategic Position and Action Evaluation (SPACE) Matrix

Financial Position
Ratin
Stability Position
g

Ratin
g

1. Net Income
2. Return on Asset
3. Earnings per share

+6
+6
+4

1. Competing product price

2. Rate of Inflation
3. Demand Elasticity

-3
-2
-2

4. Cash Flow

+5

4. Competitive Pressure

-3

5. Return on Investment

+5

TOTAL

+26

TOTAL

-10

Competitive Advantage

Industry Position

1. Customer Loyalty
2. Market Share
3. Customer

Ratin
g
-1
-1
-2

1. Growth Potential
2. Industry Profit
3. Financial Stability

Ratin
g
+5
+3
+6

4. Brand Image
5. Global Expansion
TOTAL

-1
-1
-6

4. Ease of Entry into Market

+3

TOTAL

+17

FP = 26/5 = 5.2
CA = -6/5 = -1.2
SP = -10/4 = -2.50
IP = 17/4 = 4.25

Directional Vector Coordinate:

x- axis
y- axis

-1.2+4.25=3.05
5.2+(-2.50)=2.70

RESULT graph nalang kulang!!!

According to the graph above, we noticed that the Coca-Cola Company falls into the
aggressive quadrant of the SPACE matrix. It is located at the coordinates of +3.05 for xcomponent and a y- component of +2.70 . It shows that the company has an admirable position
to use its IS in order to take advantage of external opportunities, overcome weaknesses, and
avoid threats. In this position, Coca-Cola has (or shall have CLARISE?) set of possible strategies
such as market development, product development, market penetration, forward integration,
backward integration, horizontal integration, horizontal diversification, concentric diversification
and conglomerate diversification

C. Boston Consulting Group (BCG) Matrix

High

RELATIVE MARKET SHARE POSITION

Medium

low
1.0

0.5

0.0
High
+20

STAR- II
~Market penetration
~Market development
~Product development
~Forward, Backward
Horizontal Integration

QUESTION MARK- I

or

Medium
0

Low
-20

CASH COW- III

Relative Market Share

=
Revenue of Coke / Revenue of Pepsi

DOG- IV

=
$ 35.12 B / $ 57.84 B
=
.6072 or 61 %
Industry Growth Rate
=
(Total Revenue Current - Total Revenue Prior) / Total Revenue Prior
=
($ 35,119,000 - $ 30,990,000) / $ 30,990,000
=
.1332 or 13 %

RESULT
~Market penetration
~Market development
~Product development
~Forward, Backward or Horizontal Integration
RMS- 61%
IGR- 13%
PAKIGAWA NALANG TO NA NAKASENTENe
D. Internal-External (IE) Matrix
THE IFE TOTAL WEIGHTED SCORE
Strong
3.0 to 4.0

Average
2.0 to 2.99
3.0

4.0
THE EFE
TOTAL
WEIGHTED
SCORE

Strong
3.0 to 4.0
3.0
Average
2.0 to 2.99
2.0
Weak
1.0 to 1.99
1.0

GROW AND BUILD

Backward, Forward, or Horizontal Integration

Weak
1.0 to 1 .99
2.0

1.0

Market Penetration
Market Development
Product Development

The result of the IE matrix placed in Quadrant II which the IFE weighted score is 2.97
and the EFE weighted score is 3.07. Quadrant II represents grow and build that creates strategies
of Backward, Forward, or Horizontal Integration, Market Penetration, Market Development, and
Product Development

E. Grand Strategy Matrix

Based on our Grand Strategy Matrix, Coca-Cola Company is located at quadrant 1. This means
that they are in strong competitive position and flourishing with rapid market growth. The
strategies that are applicable in this quadrant are product development, market development,
backward integration and forward integration. Coca-Cola Company should develop healthy, low
and zero calorie nutritional beverage, that are more likely to have long lasting market
appearance.

Overall conclusion (result)

SWOT
The strategy that best fit Coca-Cola Company is to develop healthy (low and zero calorie
nutritional) beverage thatll mostly contain of naturally sourced ingredients to embrace and
comprehend societys health consciousness. It is beneficial and favorable for the company for
itll eliminate threats to government compliance and regulations and competitors present
products that are already inspired and developed because of the issue about carbonated
beverages.

SPACE
According to the graph above, we noticed that the Coca-Cola Company falls into the
aggressive quadrant of the SPACE matrix. It is located at the coordinates of +3.05 for xcomponent and a y- component of +2.70 . It shows that the company has an admirable position
to use its IS in order to take advantage of external opportunities, overcome weaknesses, and
avoid threats. In this position, Coca-Cola has (or shall have CLARISE?) set of possible strategies
such as market development, product development, market penetration, forward integration,
backward integration, horizontal integration, horizontal diversification, concentric diversification
and conglomerate diversification

BCG

IE
The result of the IE matrix placed in Quadrant II which the IFE weighted score is 2.97
and the EFE weighted score is 3.07. Quadrant II represents grow and build that creates strategies
of Backward, Forward, or Horizontal Integration, Market Penetration, Market Development, and
Product Development

GRAND
Based on our Grand Strategy Matrix, Coca-Cola Company is located at quadrant 1. This
means that they are in strong competitive position and flourishing with rapid market growth.
The strategies that are applicable in this quadrant are product development, market
development, backward integration and forward integration. Coca-Cola Company should
develop healthy, low and zero calorie nutritional beverage, that are more likely to have long
lasting market appearance.

Palagay lahat ng strategies ditto at conclusion

F. Quantitative Strategic Planning Matrix (QSPM) GAP TO!!!!

STRENGHTS
Large number of networks of physical stores
globally
Strong brand loyalty of Baby Boomer and
Generation Y
Well-known brand image worldwide
Sustainable segment product portfolio
GAP has operating margin of 13.4%

Weight
0.09

Strategic Alternatives
1
2
PLANT
EXTENSIVE
EXPANSION and PROMOTION and
PRODUCT
ADVERTISING
INNOVATION
AS
TAS
AS
TAS
2
0.18
3
0.27

0.07

0.28

0.14

0.05
0.1
0.06

3
-

0.15

2
-

0.1

3
2
-

0.15
0.12

4
1
-

0.20
0.06

WEAKNESS
Weak performances of GAP brand
0.05
Cutting back on stores in North America
0.06
Poor attractiveness in the eye of Generation Y 0.08
due to insufficient product and marketing
communication

Manufactures reducing quality of the product

Teenagers buying behavior
OPPURTUNITIES
Millennias and Generation Y represents greater
market for eyes of retailers
Growth in export rate
Sufficient product differentiation and global
branding
Fluctuations of US dollars
Expansion in retail market
THREATS
High unemployment rate
Trade restrictions
Growing market for counterfeit products
Emerging fast fashion
Consumers are obsessed with promotional
pricing

0.07
0.06

0.09

0.18

0.09

0.08
0.01

3
-

0.24

2
-

0.16

0.03
0.06

0.06
0.03
0.08
0.09
0.04

1
1
-

0.06
0.08

2
2
-

0.12
0.16

GAP TO!!!!
ADVANTAGES:
Gap Inc. chooses to increase market penetration through greater promotion and advertisement
efforts specifically online. It allows reaching significantly more people than traditional
advertising media at a fraction of the cost. As a rule, the more people your business serves, the
most cost-efficient internet advertising can be. Internet advertising can also be more targeted
than some traditional media, ensuring that your messages are seen by the most relevant
audiences. This can will result a huge online presence globally that may lead to an increase in
profit.
DISADVANTAGES:
The disadvantage is the fact that the Internet-advertising gold rush has begun to introduce ad
clutter to the Web. Web users are so inundated with banner ads and spam email that they have
begun to ignore internet advertising just as much as ads on traditional media. And also one
disadvantage of advertising on the Internet is that your marketing materials are automatically
available for anyone in the world to copy, regardless of the legal ramifications. Logos, images
and trademarks can be copied and used for commercial purposes, or even to slander or mock
your company.

PORTERS FIVE GENERIC STRATEGIES

GENERIC STRATEGIES
Cost Leadership
SIZE OF
MARKET

TYPE I
TYPE II

Small

Interpretation:

Differentiation

Focus

Large

In the Porters Five Generic Strategies of the Coca-Cola Company has a large size of
market and a generic strategies of Type I and Type II in Cost Leadership. It represents that the
Coca-Cola Company emphasizes producing standardized products at a very low per unit cost for
consumers who are price sensitive. There are two alternative types of Cost leadership falls in the
Coca-Cola Company: Type 1 (low cost strategy) and type 2 (best value strategy). In Type 1, a
low cost strategy, of Coca-Cola company because they offers products to a wide range of
customers at the lowest price available on the market. In type II, a best value strategy, of CocaCola Company because they offers products to a wide range of customers at the best price- value
available on the market. And it aims to offer customers a range of products at the lowest price
available compared to a rivals products with similar attributes. And this two type of cost
leadership is applicable for the large number of market that the Coca-Cola focused on.