Strategic Management

The Coca-Cola Company

Adriano Oliveira
Bruno Rafael Maciel
David Melia Lopez
Dragana Padjen (Team leader)
Kuba Wrbel
Maja olak
Sergio Muoz Monedero
Goals
Describe the Macro and Micro-Environment
Evaluate the Opportunities and Threats
Analyze the main resources and factors
About the Coca-Cola company:
The Coca-Cola Macro-Environment
Political:
Government regulations or deregulations
Lobbying activities
Changes in Non-Alcoholic business era
Political conditions in foreign countries
Political action committees
Labor Legislation
Changes in tax laws
The Coca-Cola Macro-Environment
Economical:
Foreign countries economic conditions
Demand shifts for different categories of good
Value of the dollar in world markets
Propensity of people to spend
Money market rates
Income differences by region and consumer groups
Price fluctuations
Consumption patterns
The Coca-Cola Macro-Environment
Social:
Population changes by race, age and level of affluence
Lifestyles
Regional changes in tastes and preferences
Number of births
Number of special-interest groups
Buying habits
Ethical concerns
Value placed on leisure time
The Coca-Cola Macro-Environment
Technological:
Internet
Entrance of can and plastic bottles
New machineries and equipment
Electronic devices
Freestyle Dispensers
Communication system
The Coca-Cola Macro-Environment
Environmental:
Use of water
Pollution Control
Waste management
Energy Conservation
Recycling
Water and air pollution
The Coca-Cola Macro-Environment
Legal:
Changes in patent laws
Environmental protection laws
Legislation on equal employment
Special local, state, and federal laws
Importexport regulations
Antitrust legislation
The Coca-Cola Micro-Environment
Also known as internal environmental factors
These factors are within or close to the company
They directly impact the organization strategy
The Coca-Cola Micro-Environment
Rivalry among firms
1 - Pepsi (The biggest)
2 - Bionade (Regional)
3 - Afri-Cola (Regional)
4 - Gaffel (Regional)
Potential Entrants
1 - Expensive to entre
2 Knowledge
3 Coca-Cola Products
4 New entry difficult
Power of suppliers
1 Big number
2 Able to substitute
3 Unique in some countries
Substitutes
1 - Buyer's willingness
2 Relative price of substitute
3 Switching costs to buyers
Power of Consumers
1 Coca-Cola is different
2 Many non-alcohool products
3 Similar prices for consumers
Opportunities
Brand recognition
Coca-Cola's bottling system
Service a large geographic, diverse, area.
Unique formula
Bottled water consumption growth
Increasing demand for healthy food and beverage
Growth through acquisitions
Threats
Changes in consumer preferences
Water scarcity
Strong dollar
Legal requirements to disclose negative information on
product labels
Decreasing gross profit and net profit margins
Competition from PepsiCo
Saturated carbonated drinks market
Opportunities Evaluation
Opportunities
Score
1 2 3 4 5 6 7
Brand recognition X
Coca-Cola's bottling system X
Service a large geographic, diversity and area X
Unique formula X
Bottled water consumption growth X
Increasing demand for healthy food and beverage X
Growth through acquisitions X
Threats Evaluation
Threats
Score
1 2 3 4 5 6 7
Changes in consumer preferences X
Water scarcity X
Strong dollar X
Legal requirements to disclose negative information X
Decreasing gross profit and net profit margins X
Competition from PepsiCo X
Saturated carbonated drinks market X
Resources Evaluation
Resources
Score
1 2 3 4 5 6 7 8 9
Salesforce X
Advertising X
Distribution X
Marketing research X
Manufacturing X
Engineering X
Financial X
Quality Standards X
Location X
Conclusion
Competitors are not strong (exception: Pepsi)
The company uses long experience to its advanced
Some suppliers are strictly related to Coca-Cola
Coca-Cola has great resources and they may keep
the company as world leader
End
Thank you very much!