Ammara TOWS (SWOT) and BCG

External Audit

Opportunities
1.
2.

3.

4.

5.

6.
7.

8.

Bottled water consumption has

increased 11 percent.
According to the S&P Industry
Survey, consumers are drawn
to new smaller beverage
brands that are not sold on a
mass scale.
Word Economic Forums
annual Davos, Switzerland
gathering grants international
voice.
Less developed countries are
in desperate need to improve
community water supplies.
Energy drink sales are
expected to increase 7 to 8
percent in 2011.
Disposable income has
increased 6.2 percent.
Consumers are striving to drink
and eat their way to better
health than pervious
generations.
EPS is expected to rise 7 to 8
percent in 2011.

Threats

1.

2.

3.

4.

5.

6.

7.

Consumption of
American beverages is
denounced by foreign
officials in areas where
conflicting interest exist.
Multiple lawsuits
against the new Enviga
beverage for calorie
burning claims in
advertising
Smaller, lesser
known brands are
turning to major beer
distributors for bottling.
Overall carbonated
drink sales have been
flat due to links of sugar
to obesity and high
fructose corn syrup to
heart disease.
Pepsi is more
diversified offering
beverage and food
products.
High cost of
commodities such as
sugar, and metals used
in production of cans.
Many smaller
companies are fierce
competitors around the
world in their local
markets.

Internal Audit
Strength

1. Product line has over 400

brands.
2. Strong global presence,
located in over 200
countries.
3. Long history has built
excellent brand
recognition.
4. Partnership longevity with
established sporting events
including the Olympics.
5. Industry leader in market
capitalization with $112
billion.
6. Return on Equity yielded 30
percent in 2010.
7. Leader of dividend yields of
2.6 percent. The company
has had 43 consecutive
years of an annual
dividend increase.
8. Joint venture between The
Coca Cola Company and
Nestle has resulted in the
establishment of Beverage
Partners Worldwide (BPW).
9. Coca-Cola has formed a
strong partnership with
McDonalds, with
McDonalds becoming their
largest customer.

Weakness

1. Product line is limited to

beverages.
2. A failed $16 billion
acquisition of Quaker
Oats hinders long-term
growth.
3. Negative publicity in
India because of water
issues, has led to poor
brand image and
hindered growth there.
4. Lack of management
willingness to place
foreign products into
American markets.
5. Marketing deficiencies
due to turnover in
leadership and a 16
percent decrease in
advertising spending.
6. Coca Colas inventory
turnover is only 5.4
compared to Pepsi Co.s
8.0.

SWOT Strategies

Opportunities (O)

Strengths (S)

Weaknesses (W)

SO Strategies

WO Strategies
1. Market
international
beverages to
American
consumers
(W4, O2, O6,
O7).
2. Increase
marketing
efforts for
bottled water
(W5, W6, O1).

1. Improve environmental

2.

Threats (T)

awareness with
community
involvement (S2, S4,
O2, O3).
Market new diet drinks
that have healthier
sugar substitutes (S5,
O7).

ST Strategies
1. Acquire Krispy
Kreme (KKD) to
help diversify the
product line (S5,
T5).
2. Acquire Golden
Enterprises
(GLDC) to help
diversify the
product line (S5,
T5).

WT Strategies
1.

A
cquire Krispy Kreme
(KKD) to help diversify
the product line (W1, T5).

2.

A
cquire Golden Enterprises
(GLDC) to help diversify
the product line (W1, T5).

The Boston Consulting Group (BCG) Matrix

Relative Market Share Position

Industry
Sales
Growth
Rate

Coke

Stars

Cash Cows

Question Marks

Dogs