McKinseys 7’s Framework of Coca-Cola Philippines

Strategy (further divided to 5 types of sub-strategies)

1. Business Strategy

Cola-cola business strategy mainly focuses on their competitors, price-quality points. Adoption of
differentiation rather than price leadership clearly stated are more vital factors inside a competition to
be worked at clearly indicated.

2. Marketing Strategy

The marketing strategy of Coca-cola is a mix of three important elements – affordable prices, worldwide
accessibility, and great customer connection. Coca-cola also known for marketing expertise and the
company has always followed a great marketing strategy that is responsible for bringing the success to
the company for over a century.

3. Pricing

One of the Coca-cola's pricing strategy is depending competitor's pricing due to the wide range
availability of products of other competitors and its pricing according to their market.

4. Production

Coca-cola famous soda are differs the tastes to their container itself (can and plastic or glass bottles)
that operates in the production. Although Coca-cola in plastic or glass bottles are better to avoid altered
drinking experience rather than drinking in a can that touches lips and also tastes the can. But soda's
flavor in almuminum cans can absorb the soda that turns the drink into milder flavor after a certain time
of drinking it. Coca-cola consider this packaging to have a better drinking experience.

5. Distribution

-Direct Selling: In this method Coca-Cola supply various products to retailers and the retailers may be
retail stores, restaurants, cinema halls etc. The company uses its own vehicles to deliver the products.

-Indirect selling: Most of the revenue comes from this channel. Coca-cola gets into partnership with
various distributors, who then make them available to the retailers.

Structure
The corporate structure of Coca-cola is having a segment that is responsible for giving the organization
an overall direction to be followed and providing support to the regional structure. Key strategic
decisions at The Coca-Cola Company are made by an Executive Committee of 12 Company Officers.

System

There are several main systems that are part of Coca-Cola business strategy. The have directional
systems that flow from ExCo’s down to entry level employees where upper management ensures the
shared values is adhered to when making any strategic decisions. Also the information system of the
Coca-cola for actually analyzing and organizing data. Thus, the primary purpose of the information
system is too raw seizure data into information that is useful and can also be used for deciding on an
organization.

Style

Coca-cola PH treat their employees right from keeping their health and safety as the top of their priority
inside the organization. It reflects to the employees to treat their customers at the same way of taking
care by the management to them. They continual look to implement the idea of One team, one
company, One passion. Coca Cola PH strives to promotes sustainability and community development, as
well as being environmentally friendly.

Staff

Due to the continuous growth of the Coca-cola PH since 1981, expanding its employee is a must. It
contains 9,700 regular employees with 19 manufacturing plants and approximately 50 sales offices and
distribution centers and provides career development opportunities, stock options, and performance
rewards to its employees resulting in a high retention rate and low employee turnover.

Skills

Coca-cola Philippines works consistently and passionate to their 'people-first approach' especially in this
times of COVID-19 that they still serve in a way of earmarking of Php150 million to assist in emergency
response to the in a midst of COVID-19 pandemic. Coca-Cola has also continued to serve its customers
throughout the imposition of quarantine, via the provision of essential hydration needs.

Shared Values
As previously mentioned, the shared values are at the core of McKinsey 7s Model. Coca-Cola has clearly
recognized this and look to implement their own shared values in their systems, structure, strategy and
style as a world leader in the soft drink industry. Before making any key business and management
decision, Coca-Cola will ensure the decision at hand meets their 6p’s:

People: Be a great place to work where people are inspired to be the best they can be.

Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people's
desires and needs.

Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring

value.

Planet: Be a responsible citizen that makes a difference by helping build and support
sustainable communities.

Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities.

Productivity: Be a highly effective, lean and fast-moving organization.

Referenfces:

Ghazi, A. (2015). Marketing Strategy [Powerpoint Slides]. Retrieved from https://www

.slideshare .net/mobile/AyeshaGhazi1/marketing-strategy-56464947

Cutolo, M. (2019). This Is Why Soda Tastes So Much Better in Glass Bottles. Retrieved

from https://www.rd.com/article/soda-tastes-better-glass-bottles/

Wong, M. (2020). Coca-Cola and its people-first approach. Business Mirror. Retrieved from https:

//businessmirror.com.ph/2020/06/17/coca-cola-and-its-people-first-approach/

Homehub Study (n.d.) Retrieved from https://homehubstudy.com/information-system-and-coca

-cola-company/

Businees Case Study (2019). Creating an effective organisational structure at Coca-Cola.

 Retrieved from https://businesscasestudies.co.uk/creating-an-effective-organisational-

structure-a-coca-cola/

Cj, J. (n.d.). The 7S Framework – An Application to Coca Cola. Business Leadership

Management. Retrieved from https://businessleadershipmanagement.wordpress

.com/2013/06/11/the-7s-framework/