INTERNAL SITUATION

Review of Company Posture

Coca Cola has strategically positioned itself within the world soft drink market. It has a strong
brand value across the globe. Being the largest beverage company that is non-alcoholic, the company
serves about 1.9 billion of the total 60 billion servings of the beverage of many other types taken across
the world per day. The Coca-Cola Company owns, produces, distributes, and sells about 500 types of
beverage brands in about 200 countries. The leadership position of Coca-Cola in the carbonated
beverage provides substantial manufacturing and distributing efficiency over any rival. Coca-Cola’s
heavy investment in its leading brands has brought its popularity among consumers. According to
Euromonitor data, the top 10 carbonated brands, based on market shares, are Coca Cola, Pepsi, Sprite,
Fanta, Diet Coke, Coca-Cola Zero Sugar, Mountain Dew, 7-Up, Mirinda, and Diet Pepsi. Coca Cola owns
five brands on the list, accounted for 39% of the market in 2019, and the rest belongs to its greatest rival
Pepsi. Among them, Coca-Cola is the most popular soft drink brand that enjoys 22.9% of the sales,
followed by Pepsi’s 9.3%.

Review of Company Culture

The culture of Coca-Cola Company is diversity and inclusion office works cross-functionally with
senior leaders, human resources, business relations and councils to help create an inclusive
environment. The Coca-Cola Company focuses on four strategic imperatives called CARE; create,
articulate, regulate and evaluate. Also, Coca-Cola recognizes the need to protect the environment from
global warming that arises because of intense uncontrolled production activities within the company. It
recognizes the need to ensure the safety of its customers as they may be the victims of uncontrolled
production activities. The company strives to protect the surrounding environment from pollution by
preventing the emission of harmful substances into the atmosphere during mass production and the
manufacture of bottles used for packaging.

Review of Company Resources

Tangible resources of Coca-Cola Company contain fiscal resources and physical resources. In
2019, Coca-Cola earned around $37 billion income and its market value is estimated at $247 billion
( Forbes, 2019). Coca-Cola owns the strong and sustainable fiscal resources. They use strong fiscal
resources to put one million millions of dollars in major markets such as India, China, Russia and a few
possible markets such as Vietnam. For its physical resources, the company had over 900 bottling and
manufacturing facilities located around the globe. On the other hand technological resources and repute
of Coca-Cola are considered as intangible resources. In terms of technological resources, Coca-Cola
invested to overhaul machinery. The brand image, beverage's formulas, taste, flavors and quality are
also included in the intangible resources of Coca-Cola Company. The following are also part of the Coca-
Cola's resources:
Marketing: Coca Cola is known for its great marketing strategy and promotional techniques. Apart from
digital marketing, the company uses social media channels for promotions and customer engagement.
Marketing helps Coca Cola strengthen its sustainable competitive advantage as well as retain sales and
customers in a hyper competitive industry and market. The brand also runs seasonal campaigns from
time to time to grow its popularity and the excitement surrounding the brand and its products.

Finance: Coca-Cola has a strong financial position throughout the year. In 2019, the company's net
income increased by $2.5 billion to $8.9 billion. The increase was due to worldwide concentrate sales
volume. The finance function helps the company to maintain its strong position in financial terms.
However, being a global company, Coca-Cola Company has the most exposure to foreign exchange rate
risk. With more than 60% of income coming from outside of the U.S, Coca Cola has to be on top of its
hedging strategy to be able to control the gain and loss due to exchange rate fluctuation. Hedging
instruments also incur some expenses.

Operations: The Coca-Cola Company manages six operating segments including Europe, Middle East,
Africa (EMEA), Latin America, North America, Asia Pacific, Bottling Investments and Global Ventures. The
company operations of Coca Cola involved manufacturing and selling of beverage concentrates, syrups,
and finished beverages such aa sparkling soft drinks, water and sports drinks, juice, dairy, plantbased
drinks, tea and coffee. These are primarily manufactured in its geographic operating segments.

Research and Development: Coca-Cola is driving innovation and experimentation across its business to
bring new products to market and expand existing products into new markets. Their experimentation is
not only for the sake of experimentation but to connect the product produced with consumers.
Research and innovation of Coca-Cola Company uses sensory science, product development and
consumer insights to create totally new beverages and to improve existing ones. The company works
with other R&D centres around the world as well as suppliers, agencies and outside research institutes
to create the best beverages in the world.

Human Resource Management: The company has maintained a heavy focus on managing its people
strategically. The company apart from paying good salaries, has also made attractive benefits including
financial and non financial available to its employees throughout the world. Moreover, it spends a large
sum each year on the training and development of its people. Coca Cola has an excellent performance
management system in place to manage the performance of its employees worldwide. Also, the
company has maintained an environment of continuous learning and a culture that fosters diversity and
inclusion. The brand was ranked 28th best employer for women for 2019 as well as 33rd among the
world’s best employers for 2018 by Forbes.

Information System: Coca-Cola Company started out with an old system called the legacy system. This
turned out to be very inefficient as it was not user friendly and a lot of costs were incurred in this
system. They also did their financial plans manually on spreadsheets and were submitted as hard copies.
This made it very difficult to update information and was a very big issue as they began to expand
globally. But, as they were growing, an integrated business management system was needed to handle
the different aspects of their worldwide corporation. They decided to incorporate Strategic Enterprise
Management (SEM). This provided them with business planning for finances, data warehousing for
information collection and data analysis, and can also generate financial reports and monthly sales
forecasts. This information system is now fully implemented in the company and all the data it collects
provides baseline information so that Coca-Cola can track the financial health and growth of the
company.