STRATEGIC PLANNING

FINAL PROJECT

BASEL ASAD L1F19BSAF0082

AREEZ ISRAR L1F19BSAF0066

HAMMAD IMRAN L1F19BSAF0170

COURSE INSTRUCTOR: SIR WAQAS ZAKI.

 INTRODUCTION:

The Coca-Cola Company is a total beverage company with products sold in more than 200
countries and territories. Coca – Cola is a global business that operates on a local scale, in every
community where they do business. They are able to create global reach with local focus because
of the strength of the Coca Cola system, which comprises the Company and their more than 250
bottling partners worldwide. Coca Cola is operational across 200+ countries

MISSION:
The roadmap starts with our mission, which is enduring. It declares our purpose as a company
and serves as the standard against which we weigh our actions and decisions.
• To refresh the world...
• To inspire moments of optimism and happiness...
• To create value and make a difference.

VISION:
The vision serves as the framework for our Roadmap and guides every aspect of our business by
describing what we need to accomplish in order to continue achieving sustainable, quality
growth.
• 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.

FOUNDED:
Soon after the country’s independence in 1947, Coca Cola came to Pakistan in 1953. The Coca
Cola Company has been operating in Pakistan for over 60 years under the license of The Coca
Cola Export Corporation, Pakistan Branch (TCCEC-PB) which is headquartered in Lahore. The
first plant was opened in Karachi and others major cities followed.
VALUES:
The values serve as a compass for our actions and describe how we behave in the world.
• Leadership: The courage to shape a better future
• Collaboration: Leverage collective genius
• Integrity: Be real
• Accountability: If it is to be, it's up to me
• Passion: Committed in heart and mind
• Diversity: As inclusive as our brands
• Quality: What we do, we do well

PRODUCTS:
Our portfolio of brands includes Coca-Cola, Sprite, Fanta and other sparkling soft drinks. Our
hydration, sports, coffee and tea brands include Dasani, vitamin water, Powerade. Our nutrition,
juice, dairy and plant-based beverage brands include Minute Maid, Simply, innocent, Del Valle.
 MISSION STATEMENT OF COCA-COLA:

The world is changing all around us. To continue to thrive as a business over the next ten years
and beyond, we must look ahead, understand the trends and forces that will shape our business in
the future and move swiftly to prepare for what's to come. We must get ready for tomorrow
today. That's what our 2020 Vision is all about. It creates a long-term destination for our
business and provides us with a "Roadmap" for winning together with our bottling partners.

 To refresh the world...

 To inspire moments of optimism and happiness...
 To create value and make a difference.

EVALUATION:
The mission statement of coke Pakistan is focusing on market, survival, growth, philosophy, and
self-concept.
Market: As the company discussed that the world is changing, they talked about the market.
Survival, Growth: Company talked about the present trends and forces that will shape their
business in future and prepare for what’s to come.
Philosophy: The company talked about the trends and forces that will shape their business in
future, it’s their basic belief.
Self-concept: The company talked to create values and make a difference on which basis they
may gain competitive advantage.
 EXTERNAL FACTORS EVALUATION (EFE) MATRIX:

Key External Factors Weight Rating Weighted

score
Opportunities

1. Production of products on high 0.15 3 0.45

standards
2. High level marketing and 0.14 3 0.42
advertisement
3. Hard working Employees 0.09 3 0.27

4. Capturing small businesses 0.06 1 0.06

shares
5. Business is globalized 0.14 2 0.28

Threats

1. Competitor (PepsiCo) 0.14 4 0.56

2. Fruit juice companies and 0.13 2 0.26

healthy drinks
3. Increased prices of Raw 0.05 2 0.1
materials
4. Increase of health 0.1 2 0.2
consciousness
1 2.60

Opportunities:
 Coke focus on the production of products on high standards as they have promised and
not only, they are providing a better that but also focusing on the production of high-quality raw
materials.
 Coke always focuses on the advertising of the product even if they launch their new
product, it became successful in the market because of the good and well-planned marketing and
advertisement
 As their Employees are corporative and honest with the company because of the good
diversity and leadership.
 Coke has the opportunity to capture shares from small businesses and don’t let them to
compete in the market.
 Their business is globalized all over the world and on this faith and trust they are working
more efficiently and trying to make their business strong day by day.

Threats:
 As PepsiCo is the biggest competitor of Coca Cola company and having more market
shares Coca Cola company could face problems in future.
 Fruit juices companies like Nestle are targeting the customers who are involved in
soft drinks and trying them to use their brand juices and healthy drinks like Milo and
Fruita Vitals etc.
 Due to the increase of Inflation rate in Pakistan coke could face financial issues
because they have huge number of sales and high rate of Raw material should be
required.
 People who are health conscious could discourage people to avoid Coke and other
soft drink beverages because they contain high amount of sugar which could led them
to decrease their sales.
 INTERNAL FACTORS EVALUATION (IFE) MATRIX:

Key Internal Factors Weight Rating Weighted score

Strength

1. Biggest Distributors all over the 0.11 4 0.44

world
2. Good Marketing strategy on low 0.12 3 0.36
budget
3. Variety of Products 0.05 4 0.2

4. Strong financial position 0.09 4 0.36

5. The biggest market capturer in soft 0.04 3 0.12

drink Industry
Weakness

1. Problems of Health 0.1 4 0.4

2. Water Usage 0.18 4 0.72

3. Almost no diversification 0.16 3 0.48

4. Focusing on customer needs 0.15 2 0.3

1 3.38

Strength:
 Coca cola company have wide range of suppliers and distributors all over the world
which are creating strong image for them.
 They have a good marketing campaign strategy where they pay out less for marketing
2campaign and earn a lot of revenue and that’s all because of their employees.
 They have a variety of soft drink products like Fanta, Mountain Dew, Sprite Etc.
according to the different customer taste and their needs by which they are gaining a
good competitive advantage in the market.
 They have strong financial position because of the huge sales and demand of their
product.
  As Coca Cola company is biggest soft drink beverage manufacturing company in the
world so they claim to have the largest shares in the market in the sector of soft drink
industry.

Weakness:
 As we know that they focus on high amount of sugar in their beverages which can cause
serious problems for the customers who love to drink Coke. It can cause serious health
issues like Sugar, Diabetes etc.
 As their all products are prepared from water so it is important for them to maintain the
quality and sustainability of the water, they are using but in future water issues can create
hurdle for them.
 As there only focus is to create soft drink products, they have no diversification like
having their snacks while their competitors are also having a good diversification such as
PepsiCo.
 As customer mind changes day by day Coca cola is only focusing on Soda Beverages
products but they don’t have other Beverage’s products like coffee, Tea or the tropical
drinks which are making trend now a days in restaurants and cafes.
 COMPETITIVE PROFILE MATRIX (CPM):

COCA – COLA PEPSI CO. NESTLE

CRITICAL WEIGHT RATING WEIGHTED RATING WEIGHTE RATING WEIGHTED

SUCCESS SCORE D SCORE SCORE
FACTORS

MARKET SHARE 0.17 4 0.68 3 0.51 3 0.51

PRICING 0.13 2 0.26 4 0.52 3 0.39

DISTRIBUTION 0.07 3 0.21 2 0.14 4 0.28

CHANNELS
PRODUCT 0.08 3 0.24 4 0.32 2 0.16
RANGE
MARKETING & 0.12 4 0.48 3 0.36 3 0.36
ADVERTISMENT
CUSTOMER 0.14 3 0.42 3 0.42 3 0.42
SERVICE
CSR 0.08 2 0.16 2 0.16 4 0.32

GOODWILL 0.11 4 0.44 3 0.33 3 0.33

CUSTOMER 0.10 3 0.30 3 0.30 2 0.29

LOYALITY
TOTAL 1 3.19 3.06 3.06
REASONS:
 The market share of Coca Cola is relatively greater than that of Pepsi and Nestle.
That’s why we have given a rating of 4 to Coca Cola and 3 to both others.
 The prices in the market of Pepsi are less than both Coca Cola and Nestle, so we have
given them a rating accordingly.
 According to our research, Coca cola has a larger distribution channel than Pepsi but
smaller than nestle.
 When it comes to product’s variety, Pepsi beats both Coca Cola and nestle.
 Coca Cola promotes its product through most unique ways and by very appealing
slogans which beats Pepsi and Nestle in Marketing and advertisement.
 Customer service of all of the three competitors has been exceptional and up to the
mark with almost no difference at all.
 When it comes to serving the mankind, nestle has no competitor. It beats Coca Cola
and Pepsi by a fair margin here.
 Coca Cola has established a better goodwill than both Pepsi and Nestle which has
given it a competitive advantage in the industry.
 The customers of Coca Cola and Pepsi are more loyal to their brands as compared to
the customers that use the products of Nestle. They can anyhow use the substitute of
them.
THE STRENGTHS-OPPORTUNITIES-THREATS-WEAKENESSES
(SWOT) MATRIX

Strengths:
1. Biggest Distributors all over the world
2. Good Marketing strategy on low budget
3. Variety of Products
4. Strong financial position
5. The biggest market capturer in soft drink Industry

Weakness:
1. Problems of Health
2. Water Usage
3. Almost no diversification
4. Focusing on customer needs

Opportunities:
1. Production of products on high standards
2. High level marketing and advertisement
3. Hard working Employees
4. Capturing small businesses shares
5. Business is globalized

Threats:
1. Competitor (PepsiCo)
2. Fruit juice companies and healthy drinks
3. Increased prices of Raw materials
4. Increase of health consciousness

SO Strategies:
 Company should focus on high level of marketing. (S2, O2)
 Company should acquire the small businesses. (S4, S5, O4)
WO Strategies:
 Company should enhance the production to reduce the health problems to the minimum
level. (W1, O1)
 Company should focus on the diversification. (W3, O5)

ST Strategies:
 Company has to do the backward integration. (S4, T3)
 Company has to focus on the product development. (S3, T2)

WT Strategies:
 Company has to work for health problems. (W1, T4)
 Company should go for healthy products. (W3, T2)
 INTERNAL EXTERNAL (IE) MATRIX

IFE Total weighted score

Strong Average Weak
4.0 3.0 2.0 1.0
High
4.0

3.0 51%
Medium
EFE
Total
weighted
2.0
score

Low 1.0

Company Revenue Percent Profit Percent IFE EFE

Name Revenue Profit SCORE SCORE
COCA 41,860,000,000 40% 6,530,000,000 51% 3.38 2.60
COLA
PEPSI 62,800,000,000 60% 6,300,000,000 49%
CO.
Total 104,660,000,000 12,830,000,000
COCA COLA falls in the first group (ie Cell I, II, IV) which is grow and build. Intensive
(market penetration, market development, and product development) or integrative (backward
integration, forward integration, and horizontal integration) strategies can be most appropriate
for COCA COLA.

THE BOSTON CONSULTING GROUP (BCG) MATRIX

RELATIVE MARKET SHARE

High Medium Low
1.0 0.5 0
High
+20
Star Question Mark

Medium
0
CASH COW DOG
MARKET
GROWTH

Low -20

Company Revenue Percent Profit Percent RMS MARKET

Name Revenue Profit GROWTH
COCA 41,860,000,000 40% 6,530,000,000 51% 0.67 12.87%
COLA
PEPSI 62,800,000,000 60% 6,300,000,000 49%
CO.
Total 104,660,000,000 12,830,000,000
COCA COLA is a STAR according to the BCG matrix. Hence it is the market leader with the
largest relative market share in a high growth market. Coca Cola should receive substantial
investment to maintain or strengthen their dominant positions. Forward, backward, and
horizontal integration; market penetration; market development; and product development are
appropriate strategies for Coke.

SPACE MATRIX

Internal Strategic Position External Strategic Position

Competitive Position Industry Position
(-6 worst, -1 Best) (+1 Worst, +6 Best)

X
AXIS
-2 Good Technology 4 Resource Utilization

-1 Market Share 6 Growth Potential

-1 Good Image of the Brand 6 Barriers to Entry

-1 Satisfied Customers 4 More profit maker1

-2 Good control on distributors 6 Well financially stabled

Average -1.4 Average +5.2

Total X Axis Score +3.3

Financial Position Stability position
(+1 Worst, +6 Best) (-6 Worst, -1 Best)

Y 5 Working Capital -1 Change in Technology

AXIS 6 Liquidity -3 Competitor Pressure
5 Cash Flow -1 Price Elasticity of Demand
4 Return on Assets -2 Inflation Changes
6 Net Income -1 Customer Demand

Average +5.2 Average -1.6

 Total Y Axis Score +3.4

FP
6 (3.3,3.4)

Conservative 5 Aggressive
4

CP -6 -5 -4 -3 -2 -1 -1 1 2 3 4 5 6 IP
-2
-3
Defensive -4 Competitive
-5
-6

SP

ANALYSIS:
As we can see in above graph Coke company falls into Aggressive Quadrant because they have a
good know how to survive in hard times and they have great focus on their weaknesses. As we
can see that the bar is located at the 3.3 At X Axis and 3.4 at Y Axis which shows that Coke Cola
Co can take benefit from their external opportunities and could avoid future threats. They are
following the Aggressive Strategies which includes product development, Market Penetration,
Forward Integration, Backward Integration and Diversification etc.

THE QUANTATIVE STRATEGIC PLANNING MATRIX (QSPM)

Market Product
Developmen Development
t
STRENGTH WEIGHT AS TAS AS TAS
Biggest distributor all over the 0.11 4 0.44 3 0.33
world
Good marketing strategy on low 0.12 4 0.48 2 0.24
budget
Variety of products 0.05 2 0.1 4 0.2
Strong financial position 0.09 - - - -
The biggest market capturer in 0.04 4 0.16 2 0.08
soft drink industry

Weaknesses  
Problems of health 0.1 2 0.2 4 0.4
Water usage 0.18 1 0.18 4 0.04
Almost no diversification 0.16 - - - -
Focusing on customer needs 0.15 - - - -
Total 1.00 - - - -

Opportunities
Production of products on high 0.15 2 0.3 4 0.6
standards
High level marketing and 0.14 4 0.56 2 0.28
 advertisement
Hard working employees 0.09 - - - -
Capturing small business shares 0.06 - - - -
Business is globalized 0.14 4 0.56 2 0.28

Threats   
Competitor (PepsiCo) 0.14 - - - -
Fruit juice companies and healthy 0.13 3 0.39 4 0.52
drinks
Increased prices of raw materials 0.05 2 0.1 4 0.2
Increase of health consciousness 0.1 3 0.3 4 0.4
Total 1.00 3.77 3.57

ANALYSIS:
There are two strategies in QSPM one market development and the other is product development
because coca cola is a star product and company’s internal external matrix shows that company
is strong enough that it falls in grow and build strategy. These are good options for company
because it is financially strong.
This analysis shows the weight of both strategies which is 3.77 and 3.57. The first strategy has
high weightage so the company has to move toward it because new market can also enhance the
financial position of the company.