Cola Case Study

7/24/2019 Cola Case Study

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STRATEGIC MANAGEMENT MATRICES

ON

COCA COLA INTERNATIONALS

16- VALUE OF THE FIRMFinancial and Value Review1) Size of rmNet worth of $16.92billion2) Financial condition with a weighted current ratio of 0.9 !o"e fall# below thereuired 2% therefore the& fail thi# te#t.') (arning# #tabilit& there ha# been o#iti*e net income for the a#t ten &ear# andthe& +a## thi# te#t.

) (arning# growth(arning# are greater than *e &ear# ago. ,a##. -*erall we would not #ugge#t !o"ebeing laced in the defen#i*e in*e#tor# ortfolio at thi# time.-inion/ Seeing that currentl& !o"e i# trading at a much higher rice than ourinternal *aluation we would be #cetical to urcha#e thi# #ecurit& at thi# time.owe*er% !o"e i# an ecellent rm with great management% roduct#% di*idendhi#tor&% and earning#. hi# #toc" we would lace on our re*iew li#t and eriodicall&watch the #hare rice to #ee if it di# and fall# more in line with what we would becomfortable a&ing.

Summar in !"in#$%

S#ren'$% 3eading brand *alue and a #trong brand ortfolio

!oca4!ola% 5iet !o"e% Srite and Fanta

3arge in*e#tment# in brand romotion#

#ell# it# roduct# in more than 200 countrie#

!oman& al#o own# bottled water roduction and #till be*erage facilitie# a#

well a# a facilit& that manufacture# uice concentrate#.

he#e three #egment# are 3atin 7merica% 8(a#t% South 7#ia% and ,acic im

and :ottling in*e#tment#

eturn on total a##et# increa#e# o*er the eriod con#i#tentl& 200;% 06% 0n*entor& turno*er decrea#ed b& 1'.29=

eturn on euit& decrea#ed b& 0.;0=

Sluggi#h erformance in North 7merica !oca4!ola# erformance in North

7merica wa# far from robu#t

!ollection form debtor# decrea#ed b& 1;.6+=


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In#ernal Fac#"r Evalua#i"n Ma#ri* +IFE, " C"ca C"la C"

.E/ INTERNAL FACTORS (ei&'# Ra#in&T"#al Sc"re


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E*#ernal Fac#"r Evalua#i"n +EFE, Ma#ri* " C"ca C"laC"

.E/ E0TERNAL FACTORS

O!!"r#uni#ie$(ei&'#

Ra#e

T"#alSc"re

,o##ible growing demand. 0.09 0.'6

(an#ion ? eaching all #egment#. 0.11 ' 0.''

@lobalization 0.0< ' 0.21

!atering to ealth !on#ciou#ne## of ,eole 0.09 ' 0.2mage ercetion in certain art# of the world. 0.0; 2 0.1

Smaller% more nimble oerator#Dla&er# 0.1 2 0.2

T"#al 1 233


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S(OT ANAL/SIS

SE- 7nali# i# a #trategic lanning tool u#ed to e*aluate the Strength#%Eea"ne##e#% -ortunitie#% and hreat# in#ide a coman&% roect% or a bu#ine##*enture. >t in*ol*e# identif&ing the internal and eternal factor# that arefa*orableDunfa*orable for bu#ine## to #ucceed

S(OT ANAL/SIS FOR COCA COLA COM4AN/

STREN5THS1. :rand euit&Dimage recognition2. ,roduct di#tribution andworldwide networ"'. Solid nancial erformance. -ne of the worldG# mo#trecognized brand.

;. ,roduct di*er#ication Cwater%uice#% #oft drin"#% #ort drin"#%etc)6. !o4oerate identit&.nno*ation

O44URTUNITIES1. ,o##ible growing demand.2. (an#ion ? eaching all#egment#.'. @lobalization. !atering to ealth!on#ciou#ne## of ,eole;. :ottled water growth

6. 7cui#ition# of #maller la&er#.

(EA.NESSES1. !redit rating2. !u#tomer concentration%articularl& in the HS CEal4Iartaccount# for more than 10=of !oca !olaG# bu#ine## in the HS)'. 7 lot of lo&al ,e#i cu#tomer#are not enough lo&al !oca !olacu#tomer#. 5oe# not eno& the number oneo#ition in >ndia% ,a"i#tan.

THREATS1. ealth 5rin"# ? Fruit Auice!omanie#2. Be& cometitor# C,e#i% etc)'. !ommodit& rice# growth. >mage ercetion in certainart# of the world.;. Smaller% more nimbleoerator#Dla&er#

Su&&e$#i"n T" S#a a'ead O C"m!e#i#i"n

he three main wa are through inno*ation% relation# or reutation.

Fir#t of all inno*ation can be u#ed. hi# ma& certainl& gi*e coca cola

cometiti*e ad*antage becau#e it introduce# a new roduct% which man&eole will want to tr&. ,eole will li"e to urcha#e the commodit& e*enthough rice i# high becau#e no #ub#titute# are a*ailable. >t ma& al#o gi*ecoca cola brand lo&alt& which mean# cu#tomer# will #ta& lo&al to them nomatter what haen#2+S1SS7S8S3T1TT9,

7nother factor i# mar"eting. hi# i# a *er& imortant factor for coca cola. >n

order for the coman& to maintain it# #trong mar"et o#ition% !oca !olaneed# to continuou#l& #trengthen it# brand to maintain brand lo&alt& ando#iti*e re#on#e# and diJerentiate it#elf from it# cometitor#2

+((9(7O1OO9O7,


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>f coca cola u#ed #trong mar"eting with en*ironment friendl& attitude it ma&

rai#e barrier# to entr&% thu# decrea#ing the threat of new entrant# to theindu#tr&.+T1T7T8SS7S8S6,

!oca !olaG# brand rere#ent# ualit&% ta#te and ecitement to the mar"et%

ualitie# that remain unmatched b& the coman&G# cometitor#% thu##e*erel& reducing an& threat of being #ub#tituted. +S1S7SO1OO9,

ea#on of not being oular in >ndia i# the mi#4utilization of rear waterre#ource#. hi# ut negati*e eJect on the brand image% becau#e of colalant water le*el in the area decrea#e# which ma"e# the re#ident lifemi#erable. >f !ola !oman& want# a number one o#ition in >ndia the& ha*eto follow following criteria

1. (n*ironmental due diligence before acuiring land or #tarting roect#2. (n*ironmental imact a##e##ment before commencing oeration#'. @round water and en*ironmental #ur*e before #electing #ite#. !omliance with all regulator& en*ironmental reuirement#;. :an on urcha#ing !F!4containing refrigeration euiment6. Ea#te water treatment facilitie# with trained er#onnel at all coman&4

ownedS *alue# can ta"e M1 to M6.

he FS and (S dimen#ion# of the model are lotted on the L ai#.

4 (S *alue# can be between 41 and 46.4 FS *alue# range from M1 to M6.


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S!ace Ma#ri* " C"ca C"la C"

IE MATRI0

7- =S4M OF COCA COLA


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From our Strategic 7lternati*e# e*aluation% we #ee that it i# more attracti*e toout#ource our di#tribution networ"# rather than launch a diet line of roduct#. hi#i# in line with their current #trategic direction% and will allow ,a"ola to fortif& theirmar"et reach before introducing new roduct# that will be harder to u#h throughthe di#tribution channel#.CONCLUSION%he !oca !ola !oman& ha# a *er& rich hi#tor& and #read o*er the world% the#tud& in thi# reort #eciall& the articular S,7!( matri tell# u# that !oca !ola!oman& #hould ur#ue an aggre##i*e #trateg&. !oca !ola !oman& ha# a #trongcometiti*e o#ition in the mar"et with raid growth. >t need# to u#e it# internal#trength# to de*elo a mar"et enetration and mar"et de*eloment #trateg&. hi#include# focu# on Eater and Auice# roduct#% and catering to health con#ciou#ne##of eole through introduction of diJerent co"e a*or and maintaining ba#ic co"ea*or. Further coman& #hould integrate with other comanie#% acui#ition of


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otential cometitor bu#ine##e#% inno*ation in branding and aggre##i*e mar"eting#trateg& can bring long term rotabilit&.

Cola Case Study

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