1.

Introduction of the Organisation

The largest soft drink manufacturer Coca Cola was founded on May 8 th, 1886 in Atlanta by John
Pemberten. This American organization is now operation in about 200 countries with above 70000
employees round the globe. (Mayureshnikan and Patil, 2018). Coca Cola is consumed by almost 400
million people daily. This company has also acquired other brands including Zico, Thumbs up, Fuze, and
Honest Tea. The total revenue of Coca Cola in 2017 was about 35.2 billion dollars with 7.3 billion dollars
as operating income (Kant, Jacks and Aantjes, 2008).

Mission

Coca Cola has a mission of refreshing the world, and inspiring moments of happiness and optimism in
order to make a difference by creating some value.

Vision

The goals set by Coca Cola include:

People: Providing healthy and flexible work environment to employees to inspire them.

Portfolio: Satisfying customers by providing them with a variety of carbonated drinks.

Partners: Making the product distribution smooth by increasing the network of partners.

Profit: Increasing profits of shareholders.

Productivity: Increase the productivity, speed and efficiency of the organization.

Macro environment analysis

1. PESTLE analysis
It is a framework which is used by the marketers to monitor the macro environment. Primarily, there are
six different elements of PESTLE analysis these includes political, social, economic, technological, legal
and environmental (Makos, 2011). The PESTLE analysis of Coca-Cola is described below;
i. Political
Like many other business organizations Coca-Cola is also dependent on government policies. The
government has bound Coca-Cola to limit the use of sugar and caffeine in their beverages products.
Coca-Cola have to follow the law of the land in which they operate. The government of Pakistan has
imposed heavy taxes on import of raw material. Coca-Cola is an extensive product line therefore they
have to import different concentrate for each product. Hence Coca-Cola have to pay heavy taxes which
ultimately reduce the overall profit and revenues of the organization. Coca-Cola is under deep influence
of food and drug regulatory authority, trade policies, taxation and public health issues (Foster, 2014).
ii. Economic
The current economic growth of Pakistan effects the overall growth of Coca-Cola. The inflation rate of
Pakistan stands at 11.10% which raises the cost of production of Coca-Cola and on the other hand high
inflation minimizes the buying power of people. A weak economy of Pakistan also effects the market
position of Coca-Cola. Because of high inflation rate the company is not been able to influence the
customers to but the product. Furthermore, Coca-Cola is doing business on credit and because of heavy
interest rates the price of the final product is increased (Ayyoub, Chaudhry and Farooq, 2011).
iii. Social
Nowadays, customers are well aware regarding the ingredients used by the organizations in
manufacturing of a product. Customers would like to use fresh juice to remain health and fit. There exist
a specific segment of customers in the Pakistani market who would like to use domestic products. In
order to maintain goodwill the management of coca cola is involved in different social and welfare
related programs. The organization is offering scholarship programs, books and opportunities of work to
the needy people. Coca-Cola has developed a different strategies for different countries. For instance, in
Japan Coca-Cola has developed 30 different tastes and flavors of their carbonated drinks whereas in
china they are trying to provide as much flavors as possibly they can. But in United States people are
more health conscious therefore they provide less sugary drinks in United States (Alvarado et al., 2019).
iv. Technological
Coca-Cola is using advance level technology to keep themselves remains competitive in the beverages
industry. Coca-Cola is using latest technology to fill their bottles. In order to speed up the production
level Coca-Cola is also using conveyer belts to move their products from one place to another. Coke is
providing latest refrigerators and collier to the retailors to keep the bottles chilled. The latest technology
has helped Coca-Cola in manufacturing products with high quantity and with better quality (Pogue,
2014).
v. Legal
It is a legal obligation for Coca-Cola to follow the law of the land in which they are operating. Currently,
Coca-Cola is operating in more than 200 countries and each country have its own rules and regulation
which Coca-Cola have to follow. In some regions of the world Coca-Cola is known for treating there
employees in an unfair manner by offering them minimum wages (Holzendorff, 2013).

vi. Environmental
One of the most important issue beverage organizations are facing is the use of freshwater. Because of
excessive use of freshwater these beverages organizations are facing backlash form the environmental
organizations. Coca-Cola remains held accountable for an excessive use of freshwater in developed and
developing countries. Recently, coca cola has taken measures to ensure that the operations of the
organization may not harm the environment (Dalmoro, Venturini and Pereira, 2009).

2. Porter Five forces

According to E. Porter, (2011) , a porter five force framework is used for assessing and evaluating the
competitive strength and position of a business organization (E. Porter, 2011)
I. Threat from new entrant
Threat from new entertain is low. In order to enter in the beverages industry new entrants first have to
invest a huge amount of money in establishing a strong distribution and warehousing setup. In Pakistan,
two big multinational which includes PepsiCo and Coca-Cola are already opening. The local bottler’s
supplies bottles to these multinationals and it becomes difficult for them to supply bottles to new
entrants. Currently, Coca-Cola offers approximately 12%-15% profit margin to the retailers and it
becomes difficult for the new entrants to offers such high profits to the retailers. Coca-Cola is advertising
their products through social media platforms, television, newspapers and other marketing channels.
For new entrants it becomes difficult to invest a huge amount of money on such platforms (Jernigan and
Ross, 2020).
ii. Bargaining power of suppliers
The bargaining power of supplier is low. A lot of suppliers are already operating in the market and for
Coca-Cola the switching cost is low. It becomes easier for coca-cola to switch from one retailer to
another but it becomes difficult for the suppliers to stay away from coca-cola. The suppliers of coca-cola
provides them sugar, caffeine, bottles and other commodity items. Generally, the suppliers which
provides raw material to Coca-Cola are almost proving same quality of the product therefore for Coca-
Cola the switching cost is low. (Yadav, Stapleton and Wassenhove, 2013).
iii. Threat from substitutes
Threats from substitutes is high. A large variety of international and domestic brands are available in
the market which gives consumers an opportunity to select beverage brand of their own choice.
However, consumer which are brand loyal and likes the taste of coca-cola would not prefer to use any
other soft drink.
iv. Bargaining power of buyers
The bargaining power of buyer is high. Coca-cola is not just targeting individual as well as the corporate
buyers which includes grocery stores, restaurants and shopping malls. Shopping malls. The management
of coca-cola has developed strong relationships with fast food chains which allows them to wider their
distribution network. The food chains and corporate clients of coca-cola buy soft drinks in bulk therefore
the buying power is high (Boyjoo et al., 2017).
v. Competitive Rivalry
In the beverage industry competitive rivalry is moderate. Coca-Cola is in direct completion with Pepsi
cola and other domestic soft drinks manufacturers. Domestic manufacturers are operating at a very
small level and they do not have the potential to effect the market share of Coca-Cola. A few beverage
brands are operating in the market. These few beverage brands holds a large share in the market.
Furthermore, these organizations try to gain a competitive on each other which forces rivalry among
these firms (Dalmoro, Venturini and Pereira, 2009). It is difficult for the beverage companies to influence
the consumers of each other because each of these organizations have different taste and quality.
Beverage organizations are using different strategies to influence there customer which means that
these organizations are unique to each other in terms of strategy. (McCusker, Goldberger and Cone,
2006).
3. Stakeholder Analysis
According to Kurtz, (2012) stakeholders involves the people who have directly or indirectly influenced
the organization. Generally, stakeholder effects action, policies and objectives of an organization. The
key stakeholders of Coca-Cola includes customer, employees, suppliers, government and union (Kurtz,
2012).

HIGH Keep satisfied Managed closely

Shareholders
/investors
Customers
Power
 Government Suppliers

Low Monitor Keep Informed

Low INTEREST HIGH

i. Customers
Customers are external stakeholders of Coca Cola.  The management of Coca-Cola gives sufficient
importance two customers because they are influenced by the strategies developed by the
organization.  Moreover, customers play a vital role in improving the financial health of the
organization.  Coca Cola tries to keep customer satisfied by providing name quality products at a
reasonable price. Coca Kola generates high amount of revenues and profits from their customers by
keeping them satisfied (Szybiak et al., 2013). 
ii. Shareholders
According to (Kellehear and Kellehear, 2019), shareholders of any business organization are much
interested in financial returns. The management of Coca-Cola keeps on introducing new products in the
market as per market need to extend their portfolio to generate more and more profits. Coca-Cola gives
sufficient consideration to their shareholders. These shareholders contributed with the objective that
the company pays them the dividends (Holzendorff, 2013).
iii. Government
According to Praditya, Janssen and Sulastri, (2017), the role of government is to Create laws and
regulations for the business organization (Praditya, Janssen and Sulastri, 2017). The government has
high power but has no interest in financial health and profit returns of the organization. Rather the
interest of the government is to ensure that Coca-Cola comply with the rules and regulations.
iv. Employees
Employees are internal stakeholders of Coca-Cola. According to Sharma and Taneja, (2018), employees
spent a significant amount of time in organization and plays a vital role in developing strategies,
performing day to day operations and helps the management in achieving strategic objectives of the
organization (Sharma and Taneja, 2018). Coca-Cola employees plays a very important role in delivering
final product to the customer. Therefore, employees have significant power and the management of
coca-cola gives them sufficient importance as without them the organization cannot operate efficiently
in the market. The employees of Cola have high interest in policies developed by the top management.
Furthermore, they have high interest in attaining different training opportunities, promotions and
compensations (Fritz, Kaestner and Bergmann, 2010).
v. Suppliers
The suppliers provides raw material to business organizations (Flint, Blocker and Boutin, 2011). Coca-
Cola keep their suppliers informed regarding the raw material they required to develop a finish good.
The suppliers of Coca-Cola has less power because there are so many suppliers operating in the market
(Lakshmi, 2012).
Micro Environment Analysis
According to da Costa, (2018)., in marketing micro environment includes this factors which effects
strategy, performance and decision making of an organization (da Costa, 2018).
VRIO Framework
Primarily, there are four elements of a VRIO framework these includes value, rare, imitable and
organized. It is a strategic tool which is used to help a company in uncovering and protect the resource
and capabilities which provides them competitive advantage (Barney and Hesterly, 2010)

i. Valuable
Coca-Cola has an extensive global network which allows them to serve their customers in an efficient
manner. Coca-Cola provides a wide range of products with different sizes, shapes and tastes according
to the needs of the customers. Coca-cola is using a unique formula for making beverage products due to
this they have a different and a unique taste. Due to the leader of the cola world they have much better
sales reputation as compare to their competitors (Nash, 2007).
ii. Rare
The resource owned by coca-cola are hardly acquired by any other organization. These rare resources
provides competitive advantage to coca-cola over their rivals. When customer started thinking about a
soda drink coca-cola comes first in the mind. This rarity company capabilities and resource persist over
the long time period. In terms of human resource management practices, coca-cola is leading the
market and their marketing skills and high brand image makes them rare (Barkay, 2012).
iii. Imitable
According to (Knott, 2015) resource which is difficult to produce by a competitor is known as an imitable
resource (Knott, 2015). Recently, Coca-Cola has integrated their database with a SAP system which is
difficult to replace by the competitors because it involves high expenditure and technological
technologies (Parker, 2007).
iv. Organized
In the current business environment it is extremely important for the organization to have the
organizational capability to exploit the resources. Coca-Cola is a well-renowned organization and always
follows the laws and regulation in which they operate (Gill, 2007).

VCA Model
Value chain analysis helps an organization is identifying primary and secondary activities which adds
value in the final product (Fearne, Garcia Martinez and Dent, 2012).
Primary Activities
These are the activities which are performed by an organization for the manufacturing of goods and
services. Primary activities of Coca-Cola includes; inbound logistics, outbound logistics, operations, and
marketing and sales.
i. Inbound logistics
Coca-Cola has a wide distribution network and we have thousands of farmers and suppliers which
provide them the raw material.  Coke has considered formers as their business partners entities
business partners provide the  raw material which is essential for manufacturing a a beverage product
this includes packaging,  sugar  and machinery.  Coca-Cola has made strong relationship with those
suppliers and formers which provides them quality raw material.  A strong relationship between Coca-
Cola and suppliers ensures smooth delivery of raw material (Dalmoro, Venturini and Pereira, 2009).
ii. Outbound Logistics
Coca-Cola sell their products and services in more than 200 countries.  The company is best known for
its huge distribution network around the world.  All the operations related to distribution are controlled
by the management of the company, bottling partners, wholesalers and retailers. The bottling partners
of Coca-Cola manufacture, package and merchandise and distribute it to the vending partners
iii. Operations
Like any other business organization Coca-Cola is engaged in different business operations. The company
is engaged in marketing activities and sell their products and services to bottling partners. Furthermore,
Coca-Cola has made different marketing strategies to maintain the ownership of the product (Dalmoro,
Venturini and Pereira, 2009).
iv. Marketing and sales
Currently, Coca-Cola is using marketing strategies which are integrated. Coca-Cola is promoting their
products and services by using different marketing channels which includes social media, digital
advertisements and sales promotions. With changing time Coca-Cola has transformed themselves and
use different social media for the promotions of their beverage products (Dalmoro, Venturini and
Pereira, 2009).
Secondary Activities
Secondary activities backed up all the primary activities and processes. These includes technology,
human resource management and procurement.
i. Technology
The management of Coca-Cola spends a huge amount of money on technology which allows the
organization to bring efficiency in there processes. By using latest technology Coca-Cola can efficiently
enhance their production level. The company is spending huge amount of money on research and
development through which they adopt latest technological trends. Coca-Cola has established different
research and development centers in different regions of the world, which allows them to connect with
different suppliers, vendors and distributors.
ii. Human resource management
The management of Coca-Cola is keen to hire right talent for the right hob. Coca-Cola has a well-defined
training and development program through which they provide necessary training to their employees.
The company has offered good salaries, perks and privilege to their employees to keep them satisfied
and motivated (Dalmoro, Venturini and Pereira, 2009).
iii. Procurement
Coca-Cola strongly believes on maintaining strong relationship with their suppliers. The suppliers
provides Coca-Cola all the necessary raw material to manufacture beverage products (Dalmoro,
Venturini and Pereira, 2009).
7s Model
A McKinsey 7S model explains seven diverse essentials of an association which requires being line up so
that the company can make a successful business. These seven elements are further grouped in two
different sections which involve soft elements and hard elements. Hard elements comprises of Strategy,
structure and systems while soft elements contain style, shared values, staff and skills (Hanafizadeh and
Ravasan, 2011).
 i. Strategy
It is considered as the plan of action that a business use to provide reaction to the changes expected
from the exterior environment. Coca-Cola has implemented market leadership strategy and growth
strategy for its drinks items. For the sake of becoming a market leader, Coca-Cola is diligently operating
its functions with their supply partners, uninterruptedly boosting the quality of their goods and
products.
ii. Structure
Coca-Cola is working and providing its products and services in various regions all over the world.
Therefore, the structure if the corporation is exclusively reliant on the country and state in which the
organization is operational. Coca Cola is doing its business in production, advertising and supply of soft
drinks.  The organization is functional in 200 plus countries. Atlanta, Georgia have the Headquarter of
Coca Cola (Taylor et al., 2011).  The company’s Structure is designed in such a way that it satisfies the
demands of the customer.  Coca Cola offers power to their area managers to take any kind of required
decisions on behalf of the administration as well as the board of directors situated at the headquarter,
by implementing a system of decentralized manager management. The key objective of using system of
decentralized structure is to authorize the area managers and permit them to take every kind of
required decisions at the hours of urgency. Furthermore,  every department’s managers acquires
enough power to order to work on their decisions to the juniors.  The decisions taken and ordered by
the managers are extremely connected with the strategic Mission and Vision of the company
(Marketline, 2014).
iii. System
Similar to other association Coca-Cola tracks numerous stems like Recruitment, quality assurance,
advertising, selection, cash handling, and quality control. The hiring and selection of the applicants are
accomplished by the area offices of the company. The business has a clear quality control and quality
assurance to make sure that the product fulfils the wished quality standards (Cox et al., 2002).
iv. Skills/key competency areas in Coca-Cola
Technology section makes the key competency of Coca cola business. The manufacturing faculty of
Coca-Cola Company are equipped with up-to-date tools. Technology and equipment for manufacturing
in Coca-Cola are kept updated to cope up with the demands of the consumers and market. Coca-Cola is
involved in a chain of lab tests to guarantee that the manufactured goods fulfils the preferred standards
of quality (Ram, 2007).
v. Staff
Coca-Cola is a very popular organization of beverages. Currently, Coca-Cola has hired roughly 62,600
workers. Coca-Cola gave training to their current and fresh workers to guarantee smooth running of the
processes. The employees are hired through various channels which involves; programs of employee
referral, taking in account the previous applicants and use of various online platforms. Besides, for the
sake of keeping the staff intrinsically and extrinsically driven, Coca-Cola rewards their workers with
acknowledgements, appreciations, upgrades, promotions and monetary paybacks (LaTour, LaTour and
Zinkhan, 2010).
vi. Style
Coca-Cola is functional in various areas all over the globe. The administration style of Coca-Cola is unlike
in every region of the globe because of their decentralized managerial structure. For example, the
administration of Coca-Cola practices directive or participative methodology in Japan, in Pakistan it
follows autocratic style of leadership, whereas, in UK democratic style of leadership is implemented
(Walsh and Dowding, 2012).
vii. Shared Values
According to Reed et al., (2009), shared values are considered as the central ideas of a business and the
purpose for why an association was formed. The Coca-Cola’s core values are linked with taking over
societal and environmental duty which makes the foundation of every corporation decision (Reed et al.,
2009).
SWOT
A SWOT analysis is considered as a method practiced by the marketers and administration to know the
internal strengths, weakness, and external threats and opportunities of the business (GÜREL, 2017). It is
taken as a simple and a powerful technique of a business in outlining a business policy.
i. Strengths
One of the vital strengths of Coca-Cola is its well-built brand value. There are a lot of consumers in
global market and in Pakistan who have a preference of drinking Coca-Cola instead of Pepsi and other
refreshing soft-drinks. The corporation has retained healthy relationships with all the strategic
associates. Coca-Cola has maintained a powerful supply network and they rely deeply on self-regulating
distributors, retailers and bottlers to trade their goods and services. Coca-Cola company has a wide
range of product portfolio (Moschini, 2012). Internationally, the business retains a portfolio of above
500 brands and handling 4100 plus drinks all over the world. One of the major strengths of Coca-Cola is
its well-recognized brand all over the world. The corporation provides quality drinks and products at a
competitive rate. A large number of food chains which consist of; stores, fast food businesses, eating
places, hotels, are very happy to have Coca-Cola in their shelves (Mayureshnikan and Patil, 2018)
ii. Weaknesses
Due to lack of bottle manufacturing system in Company, Coca-Cola has to depend on business associates
and other third party sources. In Pakistan, Coca-Cola Company is demanding bottles from Mehran
bottlers. Though, Coca-Cola does not have efficient supply chain managing system which has an impact
on the supply of Coca-Cola bottles in Pakistan. Coca-Cola and other cold drink companies have gone
through a big problem over water management associated issues. The corporation is spending big
amount of water conversation to cope up with water management associated matters (Freeman et al.,
2014).
iii. Opportunities
Future generation is exceptionally conscious about health. In this respect Coca-Cola can bring innovation
in their services and products and deliver such products that are health friendly (Dalmoro, Venturini and
Pereira, 2009).
iv. Threats
One of the major threats that is being challenged to Coca-Cola is that the local producers are trying to
take hold of the market share. Many of the Brands are providing similar products that lower rates for
example; Gourmet. Besides, consumers are getting more health conscious and so the intake of cold
drinks can be lessened. Coca-Cola has a low product diversification while the powerful competitor Pepsi
has introduced different snacks items which comprise of Lays Chips and Kurkure. Coca-Cola is behind in
this sector. Buyers are very conscious and well informed nowadays. Soft drinks are considered as the
main cause of obesity, sugar and many other health related problems. Most of the Health specialists
stop consumers from taking soft drinks. So, the shifting opinion of customers turn out to be a threat for
Coca-Cola (Rey-López and Gonzalez, 2019).
Task 2
Ansoff Matrix
An Ansoff matrix is one of the most useful strategic planning technique used by business association.
Senior management, administrators and marketers broadly use this tool to improve their policies for
future growth (Cordell et al., 2019).
i. Market Penetration
Coca-Cola links their products and soft drinks with different cultures and occasions to penetrate in the
markets.  Besides, Coca-Cola is also acquiring the opponents.  Furthermore, it is also penetrating by
introducing its different size of tins, bottles, and cans to cope up with the demand of the consumer. The
company also offers discounts in bundle pricing to enhance their sales as it is facing tough competition
from its Competitors.  The business has also penetrated in the market by boosting their brand image and
involved themselves in in several Sporting activities. It is also offering their items to various other
business buyers which involves; KFC, McDonalds, subway, and Dunkin Donuts. The administration of
Coca-Cola also keeps the local buyers in consideration.
Recommended strategy for market penetration
Additionally, Coca-Cola can lessen the rates of their current products from the rates proposed by the
competitor. In this way the business will be capable of increasing the interest of the consumers. Besides,
Coca-Cola should also bring innovation in their methods of producing develop a carbonated drink which
might not have intense impact on health.
ii. Market development
Business group that is entering into the new markets with their current goods is called as market
development. Coca-Cola is working in 200 countries all over the globe. Though, there are specific areas
where Coca-Cola products are still not accessible. For the sake of acceptance in the new market Coca-
Cola offers various packaging sizes. Coca-Cola is constantly involved in supplying new soft drink flavors
to their consumers.
Recommended strategy for market development
Businesses which are working in the cold drink industry are offering carbonated drinks with similar
flavors for many past years. In this concern, Coca-Cola can carry out a market research to examine the
shifting needs and demands of buyers. After carrying out all the market research Coca-Cola can bring
new refreshing soft drink tastes in the market.
iii. Diversification
Coca-Cola does not have any diversification strategy. The company is merely trading in drinks.
Recommended strategy for diversification
Coca-Cola can bring diversification in their business products by delivering new products in various
markets. For example, Coca-Cola initiated making juices, snacks, energy drinks, and mineral water and
offers them in new and prevailing markets. Particularly, Coca-Cola can diversify into the associated
industry by manufacturing mineral water. Coca-Cola can unrelatedly diversify their business by trading
Coca-Cola goods for example clothes and fridge’s. The horizontal diversification permits Coca-Cola to
grow their corporate in different drinks industries outside the carbonated drinks. In simple terms, Coca-
Cola can spend their business in related or unrelated dealings.
iv. Product Development
Coca-Cola brings product development by indorsing new products in prevailing markets. Coca-Cola
repeatedly introduces new variations in its current carbonated beverages. These fresh variants contains;
Coke Zero, Cola Diet, and Fanta.
Strategy for product development
In order to grasp a large portion of the market share, Coca-Cola requires introducing new variants of
their carbonated beverages with which the business is capable to produce more profits.
Suggested Strategy for Coca-Cola
New products: Coca-Cola must attempt to diversify their business by supplying new products in current
and new markets. Coca-Cola can offer energy drinks, snacks, and mineral water bottles to their
prevailing and new consumers. One of the advantages of using this policy is that Coca-Cola can simply
get large portion of energy drink, mineral water and snack.
Strategic management plan
Aim: The aim is to present and bring a new good or product in the market
Vision: To turn out to be the prominent snacks producer and supplier in the industry.
Mission: To provide high quality products with value addition to certify high contentment of consumers.
Goals and objectives: The short term goal is to deliver snack products that are quality and long term
goals include penetration in the prevailing markets.
Strategies: Coca-Cola will make use of market penetration strategy to enhance sales and profit of the
business in the local market.
Tactical: following are the tactics used by business for the completion of the goals and objectives;
 Carry out market research and collect data from consumers.
 give in-house training to staff and manager to market the goods more efficiently
 Evaluate strategies, method and procedures to deal with the customer demands

Resource requirements and responsibilities

Resource requirements Responsibilities

To indorse good in new and current markets.

 To carry out market research.
Marketing To examine the requirement of the product and
services in the market.
To utilize various media sources to encourage
buyers to purchase the product.

To assign funds to various operational functions.

To assess the overall cost incurred to introduce a
new good in the market.
Finance
To observe the expenses occurred throughout
the introduction of new product.
To provide approximation of staff required for
the future business.
To make job descriptions regarding different job
Human Resource roles.
To carry out screening, interviews, and selection
of staff.

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