(1)

Coca-Cola, having started its operations more than a hundred years ago, the company has gone
through different challenging times of economic prosperity and depression, and war and peace.
The company specializes in making and selling carbonated soft as well as many other non-
carbonated drinks. With its mission statement “to refresh the world, to inspire moments of
optimism, and to create value and make a difference everywhere we engage”, Coca-Cola has a
set of ideals to which it adheres to both at the business and corporate level.

(1)Business Level Strategies

Differentiation Strategy : The company embraces differentiation strategy in order to remain

unique in the market and separated from its competitors. Through differentiation strategy, the
company makes unique and valued products for its customers. The company has unique
capacities to customize its products in order to ensure that they meet the wants and needs of its
target markets.

For instance the company satisfies the needs of old health conscious consumers by providing
Diet Coke, Odwalla products and Vitamin water. On the other hand, it meets the needs and
expectations of young consumers by providing vanilla coke and cherry coke, which are flavored
and PowerAde products of Coke.

Cost Leadership Strategies: The positioning of Coca-Cola regarding cost leadership strategy is as

a result of learning, knowledge as well as experience in matters of production as well operational
processes. The strategy is also achieved through economies of scale especially in research,
promotion and development. The company also achieves cost leadership strategy through
embracing efficient/effective manufacturing systems and distribution networks.

Focus Strategy: the company uses focus strategy in both in low cost and differentiated
dimension. For it’s focused low cost strategy, it has defined a specific line of beverage products
trou wic it van taret a specific market and acieve low cost by manufacturin tese products under
ily efficient manufacturing processes

(2)

Coca-Cola external environment analysis through PESTLE

analysis model:
External factors of the organization affect the whole
operations and working of the company. It is a must for an
organization to comply with all external factors to stay in the
industry and to remain competitive. Various external
environment factors affecting the working of the Coca-Cola
company are discussed as follows:
Political factors: Coca-Cola Company is a non-alcoholic beverage company that runs under the
guidance of the Food and Drug Administration. This administrative agency is a federal agency of
United States that is responsible for protecting the health of the public by ensuring that correct and
accurate information is made available to the organization. Along with the regulations of the FDA,
Coca Cola has to comply with various other rules of government authorities to ensure that the health
and safety of employees are maintained in the organization.

Economic factors:

Various economic factors such as recession, tax rates, inflation, interest rate, etc. also affect the
sales of Coca-cola company. Coca-Cola operates at the global level, and the universal condition
of the economy is not much strength in the current times. Along with this, fluctuations in the
exchange rate of various currencies also affects the working of coca-cola at the global scale. In
addition to this, there are rising prices of different raw materials such as plastic and oil may
affect the result in lower profit margins to Coca-cola. However, the rising standard of living and
purchasing power of consumers is a decisive growth factor for Coca-cola.

Social factors:

Consumers in current times are becoming more health-conscious, which is a major threat to the
company. Consumers may avoid taking beverages and may prefer to have juice and other fresh
products. Also, operations at a global level may affect Coca Cola through changes in the taste
and preferences of customers. However, Coca-cola has launched the number of healthy products
such as coca-cola zero and diet coke with the aim to target a large group of health-conscious
customers.

Technological factors:

Technological changes take place at a rapid pace in the industry. Coca-cola also adapts to various
technological changes at regular pace by innovation in technology as well as its product base.
Technological innovation in machinery has helped Coca-cola to manufacture quality products for
customers. 
Legal factors:

The hereditary factors for Coca-cola include the number of legislations imposed upon the
company by the FDA and other regulatory authorities. Besides the regulations of FDA, there are
various other legislations such as federal trade act, food regulations, environment protection laws
etc. that influences the operations of Coca-cola. The company ensures that compliance with all
legislation is maintained in all activities.

Environmental factors:

Various ecological laws are developed in current times due to rising awareness for
environmental actions. Business firms have to comply with all the environmental laws to reduce
negative impacts on the environment and to successfully run their operations in the industry.
Coca-cola also has to comply with various environmental regulations, such as laws relating to
waste management and water protection laws in the industry. Also, Coca-cola has to comply
with multiple environmental legislation during the manufacturing of its products.