1.

Introduction

This report would critically review the literature and frame works in relation with Strategic
Management. Moreover as a result of the analysis, different models that are related to
strategy such as Stakeholder Analysis and SWOT Analysis and Core Competence will be
discussed. Moreover findings and recommendations will be stated with regard to the
organization of the authors‟ selection in order to uplift the current approach to its strategy.

Definition of Strategy

Strategic management is defined from multiple points of view. As per Wheelen and Hungers‟
study (2006) Strategic management would fill in as a lot of managerial decisions and
activities decides the drawn out presentation and achievement of an organization. It
incorporates ecological examining, for example, outside and inward, methodology definition,
system execution, and assessment and control. They additionally expressed that breaking
down and assessing the chances and dangers which are accessible remotely in likewise
dissecting the qualities and shortcomings are additionally (Wheelen and Hunger 2006).
Besides from the points of view of Dess and Miller (1993), key administration is a cycle that
unites three significant and fundamental interconnected exercises. They are vital
investigation, methodology detailing and procedure usage.

Then again, Lamb (1984) states that key administration is likewise a continuous cycle that
essentially assesses and controls the separate business and the various enterprises that the
association works. It additionally evaluates its rivals and defines objectives and techniques so
as to increase an upper hand and to meet all current and likely contenders. At that point it
rethinks every methodology yearly or quarterly as per a particular timeframe so as to decide
how it has been executed and Regardless of whether it has been fruitful in accomplishing the
ideal objectives and targets or it needs a spic and span system to meet the changed climate,
for example, new innovation, new contenders, political, social and budgetary conditions
(Lamb 1984). In straightforward words, it very well may be perceived and expressed as a
cycle of procedure definition, execution and assessment as per the figure 1. It is an approach
to increase upper hands for an association too.
Figure 1 - Strategic management model (Adapted from Wheelen & Hunger, 2006)

Organization of authors’ choice

Coca Cola is knows as a soda pop of the world (Bell, 2004). It was contributed by Dr John
Pemberton who was a drug specialist in Atlanta. The beverage didn't have risen at that them
at began selling at soft drink wellsprings. The first motto they included was "Heavenly and
Refreshing". The Company additionally chose to make a particular container shape to
guarantee individuals they were really getting a genuine Coca-Cola. The Root Glass
Company of Terre Haute, Indiana, won a challenge to plan a container that could be
perceived in obscurity. In 1916, they started fabricating the well-known shape bottle. The
form bottle, which remains the mark state of Coca-Cola today, was picked for its alluring
appearance, unique plan and the way that, even in obscurity, you could recognize the real
deal (The Coca Cola Company, 2013).
Micro environment Analysis (Internal)

In internal environment analysis more weight has being given to become acquainted with the
interior qualities and shortcoming of execution or the solid and frail purposes of the
authoritative execution. It suggests that associations need to focus on its exhibition to arrive
at the desires and the necessities of their clients and the partners likewise for the presentation
of the association’s serious organizations. This additionally intends to focus on issues like
culture, Structure, qualities, Skills and abilities of the association (Smith, 1994).

It is significant and crucial associations build up a decent relationship and become more
acquainted with how significant a client to the association is. The better the interior climate
works in the associations the better clients get happy with the association. An excellent model
would be the absence of correspondence inside the hierarchical portions would cause
inconveniences like helpless showcasing, wrong charging of clients, absence of value control,
and absence of time the executives would influence the clients to leave the association and
that would be a debacle in authoritative perspective (Smith, 1994).

Macro Environment (External)

The Micro environment is just a reality that impacts just a few associations in their own
separate industry. These are ordinarily being utilized as strategies to recognize about the
business and how it works, etc so forward (Smith, 1994). For example, the upper hand, the
five powers model or method which was created by Michael Porter for the business
investigation as a system. This is broadly known as an outside examination strategy which
can be joined (Internal and External) and applied. It considers and causes the association to
comprehend the substitute danger, contenders, new contestants, providers and clients in a
more extensive way (Smith, 1994).

External Analysis

PESTLE Analysis

Cross (2000) states through scrutiny of both internal and external environment is the
underlying advance in developing business methodology. PESTEL and the SWOT are the
most basic apparatuses for full scale climate examination (Cross, 2000; Grant, 2010;
Chapman, 2010). Besides Kotler (1998) states that pestle examination is an basic apparatus
for understanding the market improvement or disappointment, exchange positions,
conceivable and organization for execution However Porter (1985) claims that pestle
investigation guarantees that the ventures advancement and execution adjusted decidedly
with the incredible changes that influences the enterprises climate. Also Kottler and Keller
(2012) States that it is basic for the ventures to recognize and respond to the requirements and
pattern in the outer climate to be effective in the climate and they ought to have a decent
dissect on the six significant key components of the outer climate, for example, segment,
monetary, socio-social, regular, innovative, and political legal powers. Anyway Chapman
(2012) stress the worth and the viability of PESTEL in the conversation of having a
reasonable thought regarding market development and decay, then again Jurevicius (2013)
contends that it encourages the association towards the bearing of advancement of any
chances where it uphold each danger that would happen in natural changes.
As per Dincer (2004) pestle has two fundamental capacity with respect to the
industry, the underlying one is it permits the business to recognize wherein climate the
organization runs its exhibition and activities and the subsequent one is it gives the vital
components and information which will help the organization in future advancements.

The author wishes to undertake a PESTLE Analysis or an Environmental Analysis to Coca-

Cola which is the selected organization according to authors‟ perspective. Henry (2008)
stated that PESTLE analysis is valuable to analyze the external environment where a
business is being conducted or an organization is planning start a respective business.

The following table will elaborate on the key external factors that affect Coca-Cola in
relation with its operations.
Key Factors Influence on Strategy
Political • Government changes, civil unrest, military
takeover issues in a nation that can influence
deals and tasks of Coca Cola.

• Expanding methodology is profoundly

 contingent upon the political status of that
nation. For instance Coke went without Israel
for some a long time and the explanation is
that they needed to make sure about the
accessible market in United Arab Emirates,
which is one of the biggest.

• Laws for climate assurance in this matter

can cause a huge sway in the creation cycle.
Coca Cola can and should work minimizing
wastage and elevating the proficiency.

• Unemployment rates instructive

norms.
Economical •Economic plunge in a nation is going to
negatively affect deals of Coca Cola. The
effect will be gigantic on the organization
since its items are superfluous.

•Macro financial matters factors, for

example, expansion and work cost would
Sway activities of Coca Cola.

•Countries with higher salary per capita will

spend more cash on items, for example,
drinks.
Social • Soft beverage beverages are unhealthy
and individuals will in general be in
effect more wellbeing cognizant. This is a
danger and a major open door for Coca Cola.
They can present new items for the market
under new classes.

• The organization has being languishing

 from social gatherings in a few nations
expressing that ecological contamination is
being done while the creation cycle is going
on.

• Food propensities may contrast from nation

to nation as indicated by their general public
furthermore, culture. Before presenting a new
item Coca Cola ought to think about this
reality too.
Technological •Coca Cola’s main strengthis marketing
and new marketing techniques and
advertisement publishes on channels have a
big impact on the company. Coca Cola has
absorbed new marketing trends over the past
few years which has
Benefited the company .Radio, television and
now the internet. Maintaining relationships
with customers is very vital via different
methods.
•Different typeof packaging techniques has
helped Coca Cola to move to things like the
cans, plastic bottles and vending machines.
They are easy to transport, store and
distribute as well.

• New machines and processes impact the

manufacturing operations of Coke. Adoption
of new technology allows the company to
manufacture more efficiently and deliver
quality products.
•Cooling the beverages is a must before
consumption. Therefore consumption rate is
low in places where they (Shop Owners)
 can’t afford cold storage.

Summary of External Analysis

By Investigating and considering the pestle technique the author was able to find out some
key factors affecting Coca Cola which the author chose to conduct a research. Especially
what the author found out was the pressure given by the government towards the company.
According to the pressure the company has to shape its strategy in order to retain strike on the
industry as the number 1 company in the beverage industry. In order to satisfy the
government the company has to pay the taxes on time and follow the rules and regulation
enforced by the government.

The Products that Coca Cola acquaint with the market ought to be in acceptable quality and
so as to increase an upper hand and greater quality the item would be more the clients would
acknowledge and purchase the item. Additionally with these elements and with the present
status of the world economy, with high paces of joblessness Along with these elements the
current financial atmosphere, with its significant levels of joblessness causes as per their
instructive levels and guidelines. Organizations like Coca Cola can offer conveys to
individuals who has aptitudes capacities and information. They would be a lot of more joyful
to loan their hand towards Asian nations since cost per work brought about would be less.

Internal Analysis

SWOT Analysis

The SWOT analysis was found by Albert S Humphrey in 1960 (Chidi, Babatunde and Titus,
2011). Concurring Robinson (2003) a swot examination is an apparatus planned so as to
assist an association with seeing how to interface with its outer climate. Moreover (Chidi,
Babatunde and Titus, 2011) clarifies a big motivator for SWOT and they are quality,
openings, shortcoming and dangers. Anyway Valentin (2005) brief that this apparatus is
utilized to begin the key arrangement or to discover key response for different interior and
outer components in an association and it permits expanding its qualities and openings by
limiting its shortcomings and dangers. All things considered Kotler (1991) makes his
contention as the swot examination makes the association to comprehend key capacities and
the assets accessible and makes the association to see how to utilize them possibly so as to
pull in new market

Figure 1 – Coca Cola SWOT Analysis (Author)

Strengths Weaknesses
Brand Name Health and Environmental Issues

Economies of Scale Dropping sales in several countries

Coca Cola System

Popularity

Customer Loyalty

Financial Status

Opportunities Threats
Inorganic growth and Acquisitions Competition
 Growing healthy drinks and Bottled Changing trends
Water Depending on third party Bottling
 More Brand recognition Partners

Table – SWOT Analysis for Coca Cola (Author)

Key Factor Influence on Strategy
Strengths Brand The organization has an
exceptionally solid brand
name spread over the world.
One of their significant
showcasing methodologies
that the creator discovered is
that they market their
different items, for example,
 Sprite, Fanta and Diet coke
under the name of Coca Cola.
Since the Coca Cola name is
situated in people groups
mind they will in general
devour these different items
also.
Presently a day‟s Coca Cola
has spread over 200 nations
and these huge scope
activities help the
organization to put resources
into extends and receive high
Economies of Scale rewards too
Their whole flexibly chain
and the packaging
methodology is one of the
greatest
Qualities that Coca Cola has.
This assistance the
organization to increase some
information with respect to
neighbourhood markets in
nations
Furthermore, to put resources
into to new regions and grow
Coca Cola System their present market also.
Weaknesses Dropping Sales As of late they have
discovered that their deals
have been diminished in
North
America which is their
greatest market also, in
nations like Japan, Latin
 America and Asia.
Deliberately it will influence
the development rate and
forceful advertising of Coca
Cola in an extremely high
scale.
Coca Cola items are viewed
as high in calories. As of late
a few experts in India
asserted that Coca Cola
contains pesticides and other
unsafe things n their items.
These allegations may tend
the organization to lose piece
of the pie and would be a
Issues in Health and danger for the deals in
Environment developing business sectors.
Opportunities Growing healthy drinks and The market for sound
bottle water beverages and filtered water
is expanding quickly in the
western nations and as a
system Coca Cola has just
gained different brands
cooking these separate
fragments. The organization
can utilize its current image
name so as to go into new
business sectors and exploit
it.
Acquisitions As a major aspect of their
methodology they have been
procuring the greater part of
the neighborhood
organizations and
 furthermore universally.
These acquisitions gave them
a greater stake in the
worldwide market and it
additionally helped the
organization to enhance it
income stream also.
Threats Changing Trends Rivalry from Pepsi Cola and
Substitution is the significant
danger that faces by Coca
Cola nowadays; significant
substitutes that individuals
move into are Milk,
enhanced milk, Tea, Iced
Tea, Coffee, juices and
Energy drinks. As their
procedure they have just
dispatched their items in the
surge of Healthy beverages.

Summary of Internal Analysis

The author’s internal analysis has shown the strength, weakness, opportunities and threats
along with its growth and stability of the industries market. The SWOT analysis has helped
the author to find the opportunities which are available to use in order to increase the
profitability such as acquiring small beverage companies, doing more advertisement and
launching new energy drinks. The company has also undertaken many strategies in order to
overcome threats and weakness. All these measures would finally help the company to
achieve their strategic objectives.
Task-2

Sometimes, emerging enterprises face unique challenges. Historically, unique tactics have
been used to bring a small company off the ground, such as recognizing product attributes,
changing prices, or purchasing another corporation. Understanding, and skilfully applying,
these techniques will help entrepreneurs achieve success.

Sometimes, emerging enterprises face unique challenges. Historically, unique tactics have
been used to bring a small company off the ground, such as recognizing product attributes,
changing prices, or purchasing another corporation. Understanding, and skilfully applying,
these techniques will help entrepreneurs achieve success.

Coca cola company using different strategies to get the competitive advantage over its
rivalry.

Growth Strategy of New Products or Features

A plan for development includes the launch of new products or the incorporation of new
functionality to current products. Often, to keep up with rivals, a small corporation may be
required to change or expand its product range. Otherwise, clients could start using a
competing company's latest technologies.
As a beverage providers, for instance, are actively introducing innovative features or
discovering new technologies / flavours. Companies of beverage providers that can not keep
up with market demand can not remain in operation for too long.
When the corporation is doing well but the sales are stagnant, this approach falls into view.
That may be either by introducing additional products , new product lines, improvising the
existing product or exporting the same product outside the same geographical scope. You
want to expand your market. You can also consider the policy of merger and takeover, either
purchasing a new company or having that company purchase yours.
As per the interview had with [ CITATION Mar20 \l 2057 ] , he stated that the Coca cola using
growth strategy of new product or features for their product too. Introducing kik cola is one
of the example given by him.

Finding New Markets for Products

A small company may also adopt a growth strategy by finding a new market for its products.
Sometimes, companies find new markets for their products by accident. For example, through
marketing analysis, a small consumer soap maker can discover that industrial workers like its
products. Therefore, the company could package the soap in bigger containers for factory and
plant employees , in addition to distributing soap in grocery shops.
Coca cola is operating in beverage industry , according to the internal data provided by
marketing department they have target youth. Target market of Coca cola [ CITATION Mar201 \l
2057 ] is youth and research team of the Coca cola stated that they are conducting research to
find out the new market for products.

Product Differentiation Strategy

If they have a strategic edge, such as superior content or service, small businesses will also
employ a product differentiation approach. For example, with their superior engineering
design, a small manufacturer or air purifiers could set themselves apart from competitors.
Companies obviously have a tactic of product differentiation to set themselves apart from
main rivals. A product differentiation approach, though, can also help a business create brand
loyalty.

You have the power to maintain the costs you feel appropriate in this approach. The
explanation behind this approach is that your brand provides exclusive or extra features that
your rivals do not.

Owing to the quality of the commodity, the client is willing to pay more. Similarly, let's
presume you offer specialized services for home cleaning. If only five items in the kit are
offered by your rival, while seven are offered at the same price, this is called product
differentiation. This form of approach helps you to market the goods on the terms and
conditions you want, since the reliability of the goods is superior.

Price-Skimming Strategy

A price-skimming approach includes, particularly during the introductory process, charging

high prices for a commodity. To rapidly recover its production and promotional expenses, a
small business would use a price-skimming tactic. For customers to pay the exorbitant
amount, though, there must be something unique about the commodity. The implementation
of a modern technology will present an example.

Acquisition Strategy to Gain Competitive Advantage

To gain a competitive edge, a small business with extra capital can use an acquisition
strategy. An acquisition approach includes buying another company, or one or more of its
product lines. For example, to extend its operations, a small grocery store on the east coast
may purchase a comparable grocery chain in the Midwest.

Coca cola company is using acquisition strategy to gain competitive advantage over their
rivalry. [ CITATION Mar201 \l 2057 ].

Cost Differentiation Strategy

This approach is all about selling the commodity correctly. It should tempt consumers to buy
the goods instead of those of the rivals. Around the same time, though, the price shouldn't be
too low or too high. Whether it's exorbitant, it won't be compensated for by users. It's too
low; the standard is bad, they may think. Holding rates lower will often not meet
manufacturing costs and produce projected sales. So, sell your goods in such a manner that
your bus is in a win-win scenario.

This method is precisely contrary to Cost Strategy, whereby the target consumer here is far
from price-sensitive, but they are quality-conscious or quality-focused, and they wouldn't
mind paying extra if they get anything special that helps to separate them from the
commodity.

Coca cola operates in the beverage industry more than 20 years, in the beverage industry as
per the annual report of the [ CITATION Coc19 \l 2057 ] they are the market leader of the beverage
industry. Since they are operating in the industry more than 20 years, they can have the
economics of scale.
Strategic management is not only reflecting strategic position and strategy choices. Managing
the stage of strategic implementation is required to ensure that chosen strategies are actually
put into action. Select one feasible strategic option that you suggested in task 2 and critically
describe the main factors and requirements for the successful implementation of the new
strategy within the organization.

In order to achieve strategic priorities and targets, execution is the mechanism that turns
policies and plans into actions. It is equally important, or perhaps more important than your
policy, to execute your strategic plan. A perfect way to learn how to move the
implementation to the next step is the Secret to Strategic Implementation video.
The business strategy discusses the what and why of projects, but the who, where, where, and
how is covered by execution. The truth is that for performance, all pieces are crucial. In
reality, if achieved successfully, firms will achieve competitive advantage by execution. In
the following pages, you'll learn how to get help for your full development strategy and how
to prevent some typical mistakes.

According to [ CITATION TAL20 \l 2057 ] A continual process of organizing, tracking, reviewing

and evaluating everything that is required for an organisation to achieve its priorities and
objectives includes the principle of strategic management. Fast-paced disruption, dynamic
technology and ever-so-challenging demands of consumers have required companies to
strategically think and make choices to be successful.

Setting the Goal

Setting the targets the organization needs to meet is the first step of strategic management.
This concerns both the organization's short-term and long-term priorities. Share your
priorities with the whole organisation and describe how each purpose can have an impact on
the future of the organisation. This will add a sense of meaning and importance to the work of
each team member.

Initial Assessment
The second stage includes obtaining as much knowledge and documentation as possible. This
data will be an important part of defining the mission and goal of the enterprise. The goal
aspect refers to the question: What does an enterprise want to become? Whereas the task
aspect explains the business of the corporation and everything relevant to the goods, clients,
industries, principles, organizational personnel, etc.

Situation Analysis
The next stage comes after defining the objective and vision aspect of the organisation, where
the organisation needs to determine its current business position. This stage includes
reviewing the company's internal and external environments and evaluating its rivals.
Strategy Formulation
The development of long-term priorities and targets is accompanied by a scenario study.
These long-term priorities illustrate how, in the long run, a corporation will strengthen its
strategic position. Strategies are selected at 3 distinct levels of every goal-oriented
organization: company level, organizational level, and global / international level. [ CITATION
TAL20 \l 2057 ]

Strategy Implementation

When conducted in such a manner that it successfully provides a competitive edge for the
organization, even the best business strategies can give the best outcomes. At this point,
rather than using analytics, management skills are of the utmost importance. At this level of
strategic management, coordination is important and new initiatives must gain support within
the enterprise for their successful execution.

Strategy Monitoring
It must be tracked continuously after adopting the technique to make it effective. Managers
would perform a SWOT analysis because of the complex conditional, which trains the
enterprise for all potential abilities, vulnerabilities, prospects, and risks that can occur.

SWOT Analysis
As stated in [ CITATION TAL20 \l 2057 ] strategic management, SWOT analysis is a very important
aspect that most companies forget about. This makes the company understand their
capabilities, shortcomings, prospects and challenges. It also helps plan the firm for the
potential by recognizing and assessing the internal and external environments and other
factors that may influence the firm.