Strategic Analysis of Coca-Cola's Mission, Vision, Values

Running head: Strategic analysis of Coca Cola
Report on Strategic analysis of Coca Cola

Obaid Khurshid
SZABIST Islamabad
Strategic analysis of Coca Cola

2
Table of Contents
1.
Existing Mission statement........................................................................................... 4
1.1 Proposed Mission Statement.................................................................................................... 4

2.
Existing Vision............................................................................................................... 4
2.1
Proposed Vision............................................................................................................. 5
3.
Existing Coca Cola Company core values......................................................................5
3.1
Proposed core values:...................................................................................................... 5
4.
Opportunities in the SWOT of coca cola........................................................................6
5.
Threats in the SWOT of coca cola.................................................................................7
6.
Porters Five Forces....................................................................................................... 9
6.1 RIVALRY AMONG EXISTING FIRMS: High Pressure..................................................................9

6.2 POTENTIAL ENTRANTS: Low Pressure..............................................................................11
7.
PESTEL ANALYSIS OF COCA- COLA..............................................................................12
7.1 POLITICAL FACTORS....................................................................................................... 12

7.2 ECONOMIC FACTORS................................................................................................... 13
8. External Factor Evaluation Matrix..................................................................................15
9.
10.
Coca Cola Value Chain analysis...................................................................................16

Strengths in the SWOT of coca cola.........................................................................19
11. Weaknesses in the SWOT of coca cola...................................................................................20

12.
Internal factor evaluation method...........................................................................21
13.
Space Matrix of Coca Cola Company.......................................................................22
14.
Quantitative strategic planning matrix (QSPM).......................................................24
15.
Human Resource Strategy and Plan........................................................................25
16.
Staffing.................................................................................................................... 26
16.1 Recruitment..................................................................................................................... 26
16.1.1 Internal Recruitment........................................................................................................ 26
16.1.2 External Recruitment.................................................................................................... 27
17.
Job Analysis............................................................................................................. 28
18.
Training and Development.......................................................................................29

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18.1
Training design process.................................................................................................. 30
19.
Compensation and Benefits.....................................................................................30
19.1 Pay................................................................................................................................ 31
19.2 Benefits....................................................................................................................... 31
Bibliography....................................................................................................................... 33

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1.
Existing Mission statement
To refresh the world in mind, body and spirit
To inspire moments of optimism and happiness through our brands and actions
To create value and make a difference.

1.1 Proposed Mission Statement
To provide quality carbonated drinks to every individual on this planet earth. Our latest
manufacturing techniques, following corporate social responsibilities, well trained and motivated
human resource are basic steps toward achieving excellence and sustainability.
1.2 Components of Mission statement
Components
Customers
Product
Proposed mission statement

Every Individual
Carbonated Drinks

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Market
Technology
Concern For Growth
Concern of society
Concern of employees
Planet Earth
Latest Manufacturing Techniques
Excellence and sustainability
Corporate social responsibilities
Well trained and motivated employees
2. Existing Vision
To achieve our mission, we have developed a set of goals, which we will work with our
bottlers to deliver:
People: Inspiring each other to be the best we can be by providing a great place to work
Portfolio: Offering the world a portfolio of drinks brands that anticipate and satisfy
people's desires and needs
Partners: Nurturing a winning network of partners and building mutual loyalty
Planet: Being a responsible global citizen that makes a difference by helping to build
and support sustainable communities
Profit: Maximizing long-term return to shareholders, while being mindful of our overall
responsibilities
Productivity: Being a highly effective, lean and fast-moving organization.
2.1 Proposed Vision
Our vision is to be the first choice of every individual in beverages on this planet.
3. Existing Coca Cola Company core values
Our shared values guide our actions and describe how we behave in the world:

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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

3.1 Proposed core values:
Optimistic: We can see the future
Open minded: Appreciate the ideas and creative minds
Learning: learning should ends with your life.
Inspiring: Our dealings show your importance.
Team Building: Group can meet our expectations
Creative: Creativity is highly encouraged and can pay you more than you think.
Humble: Nothing is beyond the humanity

4. Opportunities in the SWOT of coca cola

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1.
Introduced other products Diversification in the healthy and food business will enhance the
offerings of Coca cola to their customers. This will likewise guarantee that they show signs of
improvement income from existing customers by cross offering their product. Supply chain cost
can be reduced by distributing these products along with their drinks( Hitesh Bhasin August 6,
2016)
2.
Demand of carbonated drinks in developing countries In developed countries coca cola has
somehow captured most shares of the beverages market, but developing countries are still
moving slowly toward healthy beverage. They are still being introduced to the delight of
carbonated drinks and soft drinks. Country like Pakistan which are still under development and
have a hot summer, find the used of cold drinks almost twice thrice or may be more. Along these
lines the higher utilization in developing business environment can be a decent chance to
capitalize for Coca cola. ( Hitesh Bhasin August 6, 2016)
3.
Explore local markets Although Coke is capturing Pakistan beverages market quickly but
chance of massive improvement is still there. Most of the population of Pakistan is living in rural
areas where coke can focus to sell their beverages. Coca cola in Pakistan has to develop such
network of distribution through which they could reach everywhere.
4.
Supply chain improvement Coca cola is almost trying to reach everywhere in the world so
they are making it possible on the bases of their distribution. Production network can be a
noteworthy cost sink gap with the transportation costs continually rising. Coca cola's entire
business depends on transportation and distribution. There will dependably be conceivable
upgrades around there. In this manner Coca cola can keep strict watch on its Supply chain and
continue improvement to cut the cost down. ( Hitesh Bhasin August 6, 2016)

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5.
Market the lesser selling products Coca cola doesnt need any introduction anywhere in the
world so they must promote their other product like kinley. Kinley, is not available easily as their
beverages are. So they should focus on such type of product because there is always a huge
change of improvement just because of brand name and the quality of their rest of products.
( Hitesh Bhasin August 6, 2016)
5. Threats in the SWOT of coca cola
1.
People are conscious about their heaths carbonated drinks are considered a major
contributor to health conditions such as obesity, type 2 diabetes and tooth decay.( Honor
Whiteman 15 August 2015). People are becoming aware of such things which are good for their
health and also the bad for their health. They seem more caring about their diet and eating
healthy food than before. They start preferring the fresh juices instead of using carbonated
drinks. The biggest threat for coke and other carbonated drink is their manufacturing ingredients
in which white sugar is including in greater quantity. White sugar is consider as a slow poison in
the modern world. Further, many health professionals have called for the elimination of foods
and beverages containing lofty amounts of sugar, since these products place individuals at an
elevated risk of becoming obese, developing diabetes, and suffering from heart disease(Kenneth
2.
J. DeFranco, Jr. | May 20, 2015)

Strong competitor competitor like Pepsi is always a threat for Coca Cola in every part of
the world but in Pakistan where Pepsico occupies most numbers of market share is a greatest
threat. Pepsi with its vast product line is the first choice of Pakistani customers in which
mountain dew and 7up are on the top. Coke is having 35% market share while Pepsi is having

9
65% Market share in Pakistan this is due to some reasons. This rate shows that Pepsi is having
more market share than Coke in Pakistan. (The Express Tribune, May 21 st, 2013)
3.
Indirect competitors Juices, coffees, soda and other drinks is also occupying the market of
Coca cola. These types of drinks are real threat for carbonated drinks. Might be they are not
directly target the coke but with their sales and likeness in people, demand of the carbonated
drinks would be minimize. So they will also capture some of the market shares from carbonated
drinks consumers.
4.
Raw material sourcing Water is the principle Threat to Coca cola. The inadequacy of
Coca cola was the related use with pesticides or limitless usage of water. In any case, the hazard
here is that water deficiency is on the climb. With the climate changing, and regions of various
countries defying lack of water, sooner or later some individual may raise fingers on drinks
organizations. In this way, Water sourcing is an ax which can fall at whatever time on the head of
Coca cola. In case water is restricted or apportioned; Coca cola can experience an imperative
demolish in their pay and limit of dispersion. The same can impact its main adversary Pepsi too.
6. Porters Five Forces

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6.1 RIVALRY AMONG EXISTING FIRMS: High Pressure

The greatest competition that Coca-cola faces is from the rival sellers within the industry.
Coca-Cola, and Pepsi Co are among the biggest rivals in this industry, and they both are
internationally settled which makes an extraordinary measure of rivalry. Beside these significant
players, littler organizations, for example, amrat cola gourmet and muree distillery make up the
rest of the piece of the pie. Each of the five of these organizations make a part of their benefits
inside the Pakistan.
Despite the fact that Coca-Cola possesses four of the main five soda brands (Coca-Cola,
Diet Coke, Fanta, and Sprite), it had bring down deals in 2013 than did PepsiCo. Coke is thought
to be the market pioneer on worldwide premise. It possesses 80% piece of the pie around the
world, while Pepsi has 20% share.
Coke is having 35% piece of the overall industry while Pepsi is having 65% Market
partake in Pakistan this is because of a few reasons. Though in Gujranwala, Coke is having 49%

11
piece of the pie and Pepsi is having 51% piece of the pie. This rate demonstrates that Pepsi is
having more piece of the pie than Coke in Pakistan. (The Express Tribune, May 21 st, 2013)
The expansion plans come on the back of a strong growth in the companys top line
and volumes. Coca-Colas Pakistan arm earned over Rs50 billion in revenues for the financial
year ending June 30, 2012, a 55% increase when compared with the previous year. . (The
Express Tribune, May 21 st, 2013)
It is safe to say that PepsiCo is Pakistans most popular cola brand, Pepsico
spokesperson Mohammad Khosa said. The company has a lot of other exciting brands
including Mountain Dew, 7Up, Mirinda, Slice, Sting and Aquafina that are doing wonderfully,
he said.
Khosa refused to reveal the exact revenue or market share, but sources confirmed that
revenues of PepsiCo Pakistan and its eight bottlers stood at a combined Rs82 billion for the
financial year ending June 30, 2012, up 19% compared to the previous year. . (The Express
Tribune, May 21st, 2013)

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6.2 POTENTIAL ENTRANTS: Low Pressure

Entry barriers are moderately low for the Bevrages Industries: there is no purchaser
exchanging expense and zero capital prerequisite. There is an expanding measure of new brands
showing up in the market with comparable costs than Coke items.
Another hindrance to section is the high settled expenses for stockrooms, trucks, and
work, and economies of scale. New participants can't contend in cost without economies of scale.
These high capital necessities and market immersion make it greatly troublesome for
organizations to enter the soda pop industry along these lines new contestants are not a solid
aggressive constrain.
Coca cola is not just a drink now its a brand. People never trust new things so easily and
to try something over a brand like coke is not a good choice for anyone. Customer loyalty is a
barrier for new entrants so we can say that threat of new entrant is low for coca cola.
6.3 SUBSTITUTES: Medium to high
Carbonated drinks are considered a major contributor to health conditions such as
obesity, type 2 diabetes and tooth decay.( Honor Whiteman 15 August 2015). People are
becoming aware of such things which are good for their health and also the bad for their health.
They seem more caring about their diet and eating healthy food than before. They could start
preferring the fresh juices instead of using carbonated drinks.
The ingredients using in the carbonated drinks can allow their customer to switch to their
substitutes. i.e. Lassi, milk, fresh juices etc.
6.4 BARGANING POWER OF BUYERS: Low pressure
Bargaining power of a supplier is almost negligible because ultimate customer of the coca

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cola is individual consumer. He is satisfied with the quality of the coke and the prices what is
offering for it.
Larger retailer like savours and macdonalds can have bargaining power because they
have a large quantity orders but they are also much lessened because of the loyalty of end
consumer toward this brand.
6.5 BARGANING POWER SUPPLIERS: Low pressure
The main ingredients for soft drink include carbonated water, phosphoric acid, sweetener,
and caffeine. The suppliers are not concentrated or differentiated. So we can assume that
bargaining power of the supplier is almost negligible like buyer.
Coca-Cola is likely a large, or the largest customer of any of these suppliers. Seeing the
image of its brand and utilization of its product any supplier will love to work with coca cola.
7. PESTEL ANALYSIS OF COCA- COLA
PESTLE remains for Political, Economic, Social, Technological,
Legal and Environmental. It is a device that helps the associations for
making techniques and to know the EXTERNAL environment in which
the association is working and will work later on.
Coca-Cola refreshment, which is the main producer and
wholesaler of non-mixed beverages additionally need to experience
this PESTLE examination to think about the outer environment
(particularly their rivals and the open doors accessible) so as to keep
pace with the quickly developing economy.

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7.1 POLITICAL FACTORS

The political environment of Pakistan influences the coca-cola refreshments and CocaCola Export Corporation, to some degree. For example, the political insecurity in Pakistan causes
exchange and import approaches to change quickly as the administration changes which cause
numerous issues in the import of crude materials. Exchange obstructions, for example, taxes and
obligations on the import of syrup (concentrate) from USA expand the operational cost. An
unwinding has been given by the present government. So the circumstance for the refreshment
business is showing signs of improvement step by step for the last couple of years. Likewise the
arrangements have been pretty much steady furthermore the emaciation of free trade zones by
the government will assist the Coca-cola with flourishing all the more successfully in Pakistan
7.2 ECONOMIC FACTORS
The economic state of Pakistan has not been steady for quite a while but The recent
economic indicators recommend that the economy is developing and macroeconomic issues are
getting sold yet in the meantime there has no stamped increment in the consumer purchasing
power (inflation). At the point when the recession happen the price of the bottles are dropped
down to increase the sales and to accomplish the objectives of the organization. Overall economy
of Pakistan straightforwardly influences the costs and prices of the Coca-Cola Company.
7.3 SOCIAL FACTORS
Being an outside based organization Coca-cola confronts restriction by Muslim activists.
The fundamental social issues are:

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It confronted scandal e of embarrassing Muslim's religion that when the reversed picture
of Coca-Cola mark name is being seen on the mirror it disrespects the name of Holy city Makkah
and Hazrat Muhammad (P.B.U.H). This was a wrong conception as there was no reality in it and
this scandal was slumped after a limited capacity to focus.
One of the greatest social barrier to coca-cola Lahore is the confinement of coke in the
campus premises. Jamiat's strike to coke influences the deals and general picture of coke as a
bigger number of students from everywhere throughout the Pakistan are considering in the
University of The Punjab. Be that as it may, despite what might be expected in the all parts of the
country coke is seen as the accomplice in the real occasions like Basant and promoter of music in
this way making a place in the hearts of young generation of the society. i.e. coke studios
7.4 TECHNOLOGICAL FACTORS
The making of Coke, Fanta, Diet coke and sprite includes "blending and mixing, filling
and topping ". For this procedure, think or syrup is foreign from USA and is then blended in the
neighborhood plants .Machinery for the nearby plants was likewise transported in yet now the
coca-cola organization takes after Local substance law as the majority of the extra parts are
privately made. The framework is computerized and hardware is completely operational and upto-dated. In technology Coca-cola company is far ahead than the several other local beverage
brands of Pakistan.
High
Growth Of
Market
Low
Cash Cow
High
Dog
Low
Relative share

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A Coca-cola refreshment restricted is presently at a phase of question mark on the off chance that
we put it in a BCG Matrix. Since general market is developing and it has moderately less pieces
of the pie then its genuine rival PEPSI. Just around 5% of the chilly refreshments are being used
and this number is expanding. Coke is sold in the 1:2 roughly proportion concerning Pepsi as
piece of the overall industry or Coca-Cola Company is 35% and that of Pepsi is 65%.
7.5 Legal Analysis Legal angles concentrate on the effect of the national and world institution.
The Coca Cola Company gets each one of the rights material in the method for their business and
each innovations and thing headways are consistently going into the protected procedure.
7.6 Environmental Analysis Environmental analysis looks at the nearby, national and world
ecological issues. As per the data of the Coca Cola Company, most of the workplaces are entirely
observed as showed by the ecological laws constrained by the organization.
8. External Factor Evaluation Matrix
Factors
Opportunities
Diversification in food business will increase their customers
In developing there is huge market for coke
There are many local are in Pakistan where coke can increase their
sales.
Can reduce cost by making supply chain effective
Coke should also focus on other product with their carbonated
Weigh
t
Ratin
g
Weighte
d score
0.14
0.15
0.13
2
3
3
0.28
0.45
0.39
0.12
0.1
2
3
0.24
0.3

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drinks
Threats
Carbonated drinks cause some diseases
0.12
3
0.36
Pepsi competes with coke everywhere
0.13
3
0.39
Juices, coffees and soda also capturing market shares of coke cola. 0.07
2
0.14
Availability of pure water could not be possible.
0.04
2
0.08
Total
1
2.63
Weighted score is more than 2.5 so its mean we have more opportunities as compared to threats.
9. Coca Cola Value Chain analysis
Value Chain analysis is an expository system that helps with recognizing business
exercises that can make esteem and upper hand to the business. The figure underneath outlines
the substance of significant value chain analysis
Inbound logistics
Water is the principle element for all items fabricated by Coca Cola Company and the
organization once in a while confronts critical difficulties in getting to this specific crude

18
material. Coca Cola utilizes high fructose corn syrup (HFCS) broadly and this crude material is
obtained from US-based providers and conveyed by means of trucks. There are likewise a few
fixings that must be sourced universally. For instance, squeezed orange and squeezed orange
think is sourced from Florida and Southern Hemisphere, especially Brazil. For universal buys
inbound coordination are encouraged through boats and trucks. Coca Cola values diversity
among its suppliers. In 2013, $952 million were spent on diverse suppliers, an increase of 14.8%
compared to the previous year. (John Dudovskiy August 12, 2015)
Operations
Coca-Cola operating segments are divided into the following 7 groups:
1.
Eurasia and Africa
2.
Europe
3.
Latin America
4.
North America
5.
Asia Pacific
6.
Bottling Investments
7.
Corporate
The Coca Cola system is not a single entity from legal and managerial points of view.
Coca Cola manufactures and sells concentrates, beverage bases and syrups to its bottling
partners, maintains ownership of the brand and develops and applies marketing strategy. Bottling
partners, entities that do not belong to Coca Cola, do manufacturing, packaging, merchandising
and they distribute the final product to customers and vending partners (John Dudovskiy August
12, 2015)

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Outbound logistics
Coca Cola Company sells its products in more than 200 countries and understandably
claims to operate the worlds largest beverage distribution system. Distribution channels utilized
by Coca-Cola consists of distribution operations operated or controlled by the company,
independent bottling partners, distributors, wholesalers and retailers. The five major bottling
partners accounted for 33% of the total unit case volume sales in 2014. Moreover, outbound
logistics are organized via manual distribution across Africa with more than 2500 independent
manual distribution businesses employing more than 11,000 people (John Dudovskiy August 12,
2015)
Marketing and sales
Offers of drinks having a place with Coca-Cola portfolio added up to 28.6 billion, 28.2
billion and 27.7 billion unit cases in 2014, 2013 and 2012, separately. The volume of offers in the
nation of origin US represented 19% to the aggregate volume of offers in 2014[4]. 31% of
aggregate deals outside of the US happened in Mexico, China, Brazil and Japan.
Coca Cola applies incorporated showcasing technique utilizing publicizing, deals
advancements, occasions and encounters and advertising components of the promoting blend in a
joined way. The brand advertising message is connected with being cheerful, appreciating life
and driving a dynamic way of life. Coca Cola's the most recent showcasing endeavors have been
coordinated at consolidating four prevalent beverages Coca Cola, Diet Coke, Coca Cola Zero
and Coca Cola Life into the idea of 'One Brand', therefore giving more extensive decision to the
objective client fragment. (John Dudovskiy August 12, 2015)
Service

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Coca Cola keeps up its client benefit hones by means of online talk with a virtual
operator in authority site of the organization committed client benefit telephone. Coca Cola site
has an exhaustive FAQ that covers the most parts of their items in an itemized way and the site
likewise addresses an extensive variety of gossipy tidbits identified with the brand immediate
and aberrant ways. (John Dudovskiy August 12, 2015)
10.
1.
Strengths in the SWOT of coca cola
Brand Equity Interbrand in 2011 awarded Coca cola with the highest brand equity
award. ( Hitesh Bhasin August 6, 2016) Coca cola with its boundless worldwide nearness and
one of a kind brand identity is unquestionably one of the costliest brands with the most
noteworthy brand equity.
1. Company valuation Coca cola is valued around 79.2 billion dollar and considered as a most
valuable company in the world. This valuation includes the brand value, the numerous factories
and assets spread out across the world and the complete operations cost and profit of Coca cola.
2. Vast global presence Coca cola is present in 200 countries across the world. People hard find
any country where coca cola is not present. The presence of coca cola at the vast level around the
world shows the value of this brand. ( Hitesh Bhasin August 6, 2016)
2.
Largest market share The two big competitors of beverages segment is coca cola and
Pepsi. Coca Cola is on the top in terms of profitability and market share in the world but in
Pakistan Pepsi has more market shares than coke. Sprite, coke, diet coke, Fanta, Kinley, is

21
considered as a growth driver for coca cola in Pakistan. Its largest shares in the world is showing
its brand image and helping him to become a market leader.
3.
Fantastic marketing strategies Coca cola dissimilar to Pepsi dependably tries to win
people groups heart. Pakistan invited the country to #ShareaCoke with their friends, families,
colleagues and loved ones. Where Pepsi's objective is constantly changing, and is focused on
towards youths, Coca cola targets individuals of any age.. ( Hitesh Bhasin August 6, 2016)
4.
Customer Loyalty With such solid items, it is characteristic that Coca cola has a
considerable measure of customers Loyality. The items specified above like Coca cola and Fanta
have too much likeness among peoples. Individuals will incline toward these soft drinks over
others. In light of the great taste of Coca cola, discovering substitutes seems difficult for the
customers. ( Hitesh Bhasin August 6, 2016)
5.
Distribution network Coca cola has the biggest distribution network because of demand
in the market for its products. After seeing the high demand of coca cola in the market this is
obvious that coca cola has to increase its distribution network to capture every market, which
coca cola done it nicely (Hitesh Bhasin August 6, 2016)
11. Weaknesses in the SWOT of coca cola
1.
Competition with Pepsi Pepsi is still seeing as a market leader in Pakistan and giving tuff
time to coca cola in this market. So it seems that pepsi wont give up so easily and coke has to do
2.
something extra ordinary to beat the Pepsi. ( Hitesh Bhasin August 6, 2016)
Product Diversification is low Where Pepsi has made a shrewd move and broadened into the
snacks section with items like Lays and Kurkure, Coca cola is lost from that portion. The portion
is likewise a decent income driver for Pepsi and had Coca cola been available in this section,

22
these items would have been an extra income driver for the organization. ( Hitesh Bhasin August
6, 2016)
3.
Absence in health beverages On the off chance that you watch the news, you would realize
that obesity is a noteworthy issue influencing individuals these days. The business environment
is changing and individuals are taking measures to guarantee that they are not obese. Carbonated
drinks are one of the significant explanations behind fat intake and Coca cola is the biggest
maker of Carbonated refreshments. The derivation is that the usage of soft drinks in developed
nations may go down as individuals will incline toward a healthy alternatives. ( Hitesh
Bhasin August 6, 2016)
4.
Lack of Popularity in many coca colas brand - Another viewpoint that could be seen as a
weakness is the lack of popularity of a considerable lot of Coca Cola's beverages. Many
beverages that they create are greatly well known, for example, Coke and Sprite yet this
organization has around 400 distinctive drink sorts. Most are hardly seen in the markets to
purchase. These beverages don't likely taste awful, yet is somewhat a consequence of low profile
or nonexistent advertising. This is a weakness that should be taken a gander at while
investigating their organization.
12.
Internal factor evaluation method
Factors
Strength
Brand equity of coke is too high.
Company is high valued
Coke is almost present in every region of the world
Coke has highest market share
Through attractive marketing strategies they attract
customers
Customers are loyal with coke
Weight
Rating
Weighted
score
0.12
0.09
0.09
0.12
0.09
3
3
2
3
3
0.36
0.27
0.18
0.36
0.27
0.08
0.16

23
Distribution network of coke is worldwide.

0.09
2
0.18
Weaknesses
Pepsi is the only strong competitor of coke
0.08
3
0.24
Coke doesnt go for other product quickly
0.07
3
0.21
Their healthy beverages are almost hardly seen in the
0.09
2
0.18
markets.
Coke is failed to popular their other product with its
0.08
3
0.24
name.
Total
1
2.65
Weighted score is more than 2.5 so its mean we have more strengths as compared to weaknesses
13. Space Matrix of Coca Cola Company

Internal strategic position
External strategic position
Competitive Position
Industrial position
X
A
X
I
S
Y
A
X
I
S
(-6 worst, -1 best)

Market share
Product quality
Product life cycle
Customer loyalty
Technological knowhow
-1
-1
-2
-1
-2
(1 worst, 6 best)
Growth potential
Profit potential
Financial stability
Extend leverage
Ease to entering into the market
Average= -1.4
Total X axis Score 3.8
Financial Position
Average=5.2
(1 worst, 6 best)
(-6 worst, -1 best)
Leverage
Liquidity ratio
Networking capital
5
5
6
6
4
Stability position
2
5
6
Technological change
Rate Of inflation
Barrier to entry into market
-1
-2
-2

24
Inventory turnover
Earnings per share
Average=4.5
Total Y Axis Score 3.2
5
5
Ease to exist from market

Risk Involve In business
-1
-1
Average= -1.4
As shown in the above matrix we fall in aggressive quadrant. As we know that we use
space matrix for strategic formulation as a strategic management tool. Now in aggressive
quadrant we have further five strategies and to pick the best one we have to put them in
Quantitative strategic planning matrix (QSPM). Those five strategies are

25
Integration (Horizontal, Forward, Backward)

Market penetration
Market Development
Product Development
Diversification(Related, Unrelated)
14.
Quantitative strategic planning matrix (QSPM)
Factors
Opportunities
Diversification in food business will increase
their customers
In developing there is huge market for coke
There are many local are in Pakistan where
coke can increase their sales.
Can reduce cost by making supply chain
effective
Coke should also focus on other product with
their carbonated drinks
Threats
Carbonated drinks cause some diseases
Weight
S1
AS
TAS
S2
AS
TAS
S3
AS
TAS
S4
AS
TAS
S5
AS
TAS
4
3
0.56
0.45
5
5
0.7
0.75
2
4
0.28
0.6
3
1
0.42
0.15
1
2
0.14
0.3
0.65
0.26
0.13
0.52
0.39
0.24
0.48
0.36
0.12
0.6
0.3
0.2
0.1
0.5
0.4
4
3
0.48
0.39
5
5
0.6
0.65
2
4
0.24
0.52
3
1
0.36
0.13
1
2
0.12
0.26
5
2
3
0.35
0.08
0.3
2
4
2
0.14
0.16
0.2
1
3
1
0.7
0.12
0.1
4
1
5
0.28
0.4
0.5
3
5
4
0.21
0.2
0.4
4
3
0.48
0.27
5
5
0.6
0.45
2
4
0.24
0.36
3
1
0.36
0.09
1
2
0.12
0.18
5
2
0.45
0.24
2
4
0.18
0.48
1
3
0.09
0.36
4
1
0.36
0.12
3
5
0.27
0.6
3
5
2
0.27
0.4
0.18
2
2
4
0.18
0.16
0.36
1
1
3
0.09
0.08
0.27
5
4
1
0.45
0.32
0.09
4
3
5
0.36
0.24
0.45
0.14
0.15
0.13
0.12
0.1
0.12
Pepsi competes with coke everywhere

Juices, coffees and soda also capturing market
shares of coke cola.
Availability of pure water could not be possible.
0.13
0.07
Grand Total
Strength
Brand equity of coke is too high.
Company is high valued

Coke is almost present in every region of the
world
Coke has highest market share
Through attractive marketing strategies they
attract customers
Customers are loyal with coke
Distribution network of coke is worldwide.
0.09
0.09
0.04
0.12
0.12
0.09
0.08
0.09

26
Weaknesses
Pepsi is the only strong competitor of coke
Coke doesnt go for other product quickly
Their healthy beverages are almost hardly seen
in the markets.
Coke is failed to popular their other product
with its name.
Total
0.08
0.07
0.09
5
2
0.4
0.14
2
4
0.16
0.28
1
3
0.08
0.21
4
1
0.32
0.07
3
5
0.24
0.35
0.27
0.18
0.09
0.45
0.36
5
70
0.4
7
2
68
0.16
7.13
1
42
0.08
5
4
56
0.32
5.83
3
64
0.24
6.03
0.08
2
Attractive score is selected through judgmental or intuitive judgmental skills.

15.
Human Resource Strategy and Plan
From QSPM matrix we can further decide strategic goal of Coca Cola Company or which
strategy should be adopted in future for sustainability and progress. Integration strategy could be
the best choice among five different options of Aggressive strategy. In integration strategy we
could either go for forward integration, backward or horizontal integration but we will go for
forward integration and widened our distribution network in south Punjab. We will open 4 new
distribution networks which will focus to distribute our products in urban as well as rural areas.
1 in Bahawalpur
1 in Multan
1 in Rajanpur
1 in Rahim Yar Khan
For bringing our distribution networks in action we need to hire at least 40 people
initially to run our operations for each setup. We need almost 460 employees to capture the full
market shares but this thing will take some time. So we are going to design a HR plan to fulfill
our need of employees for next five years 2017 onward. Our distributions will be four fo next
five years in the main cites of allocated districts but our ware house will be in each city of above
mentioned districts which will allow us to reduce the transportation cost. All of our operation

27
will be carried out from the district offices and deliveries will be provided from the nearby
warehouses.
District Offices
Multan
Bahawalpur
DG Khan
Rahim Yar Khan
HR Strategy setups
Multan
Bahawalpur
Rajanpur
Rahim Yar Khan
Total
Ware Houses
Khanewal
Bahwalnagar
DG khan
Rahim Yar Khan
Multan
Bahawalpur
Layyah
Lodhran
Vehari
Muzfargarh
Rajanpur
HR plan to fullful future and current need of employees

2017
2018
2019
2020
40
30
20
15
40
30
20
15
40
30
20
15
40
30
20
15
160
120
80
60
16.
2021
10
10
10
10
40
Staffing
To fulfill the current and future need of employees according to the forward integration
strategy we have to hire staff for some of desired position in the initial setup. We will follow the
coke traditional method of recruitment and selection in which internal and external methods are
included.
16.1 Recruitment
Recruitment is a first step in staffing process in which employers start seeking the right
people for the right job. Two types of recruitment are basically noticed within organizations.

28
16.1.1 Internal Recruitment

In internal we can seek staff working from our current setup, which could be the one
method to fulfill our current need of employees.
Advantages
Assessment of best participants is easy.

Reduce training time
Its a cheaper process
Best motivation for employees
Disadvantages
Insufficient supply of candidates

Creates vacancies and disturb current setup
16.1.2 External Recruitment

In this type of recruitment company seeks applicants for desired position from outside the
company by advertising and using other techniques to reach the right applicants.
Advantages
Increase diversity so new ideas can be introduced

Facilitate growth
Disadvantages
Its a slower and expensive process

Less reliable data
Stifle upward movement of personnel
16.3 Recruitment source

Following recruitment source can be adopted to reach the right number of desired people
for the company
Media advertisement

29
E- Recruitment
Employment agencies
Fresh graduates induction program
Summer internship program
16.4 Selection Methods

After recruitment process when we would have sufficient number of application will be
received. Then the next step would be picking up the right person to pass through from selection
process, So that we could hire the right people for the right jobs. The coca cola would adopt the
following methods of selection
m
C
tio
le
p
nIn
p
m
E
o
l
e
y
t
n
u
o
r
g
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n
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I
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a
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P
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R
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e
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ita
D
g
irn
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c
e
17.
Job Analysis
For our distributions we would need to hire different people on different position but job
analysis of marketing executives is

30
Job Analysis
Marketing Executive
Job Specification
Marketing executives maximize the profit through developing sales

strategies by promoting product, services and ideas to fulfill the
customer requirement.
MBA (Marketing) or 16 year degree in marketing with 3 year

experience in sale and marketing
Experience in related field will be preferred
Job Description
Analyzing and investigating price demand and competition

Devising and developing ideas and strategies
Taking part in promotional activities
Compiling and distributing financial and statistical information
Writing reports
Organizing events and product exhibition
Monitoring performance
Managing campaigns on social media
Skills Required
Good teamwork skills

Communication skills
Adaptability
Good organization and planning skills
Creativity
Market awareness
IT skills
Numerical Skills
18.
Training and Development
Training is an expensive process but without training it could be more expensive. Purpose
of training and development is to impart skill abilities and knowledge to the employees to meet
the goal of an organization.
Training and Development=Standard performance - Actual performance
After hiring the staff we need to train them because of following reasons

31
Reduce the learning time of new hired employees and to make them competent to meet future
needs of an organization.
Develop the competencies and improve the performance of employees.
Socialization is also known as one of the techniques in nowadays through which employees
become familiar with the working environment and way of working in the organization
Steps involved in training design process are shown in the diagram below
18.1
Training design process

32
19.
Compensation and Benefits
Coca cola always focus on total reward strategy in which their employees feel motivated
and put their efforts toward the development of the organization. Pay, benefits, personal
development, recognition, flexibility all comes together under this under this total reward
strategy, which help our employees to achieve our objective in a short term and health, wealth
goals in the long term. This strategy helps us to achieve our goals and our people drive our
company toward sustainability.
19.1 Pay
Our base pay, performance based rewards and structured incentives system make winning
and inclusive culture of the organization. Equity among pay structure keep people motivated
within organization and allows them to focus on their works without any insecurity.
19.2 Benefits
Coca cola offer some of their benefit all of their territories and follow the trend of local
markets practices and expectations to ensure they stay competitive in each country.
1. Health and welfare (group life insurance, independent life insurance, medical, dental, accidental
death and dismemberment, accident, short term disability, long term disability etc)
2. Protection for the unexpected (Medical and dental services, free medical services for spouse)
3. Work place (diverse, inclusive and fair environment, specialized employees affinity groups, a
commitment to training, a truly learning environment)
4. Life style (quality of life benefits including paid vacations, flex timing, job sharing)
5. Allowances (house allowance, fuel allowance, telephone allowance)
6. Financial benefits
Reward and recognition that includes competitive compensation, annual merit review, and equity
plan for employees.

33
Education benefits that includes reimbursement tuition fee and offer scholar ship for the
undergraduate children of the employees.

Discount and convenience that include automobile discount plan, company stores, credit union,
on site dry cleaning, cafeteria, which provide discount their employees on each visit.
Retirement plans are there for the employees which are totally funded by the company after
certain year of serving in the organization.
19.3 Total Compensation
Rewards
Salary
Benefits
Bonus
Pay
Health Plans
Salary Increases
Overtime (if in non-
Retirement Plans
Promotions
exempt classification)
Vacation/ time off
Equity Offerings
Paid Training
Awards
Working Hours
Recognition
New job
assignments
Bibliography
SWOT Analysis of coca cola. Hitesh Basin. Aug 6, 2016. Retrieved from
http://www.marketing91.com/swot-coca-cola/
Mission, Vision of COCA Cola. Retrieved from http://www.coca-colacompany.com/ourcompany/mission-vision-values

34
Pestle analysis of Coca Cola. Retrieved from

https://www.academia.edu/9706910/SWOT_AND_PESTAL_ANALYSIS_OF_COCA_COLA
Porter Five Forces. Retrieved from http://valuationacademy.com/porters-five-forces-in-actionsample-analysis-of-coca-cola/
Value chain. Annual Report (2014) Coca-Cola Company Clinton, B. (2009) Harvard Business
Review, Available at: https://hbr.org/2009/09/creating-value-in-an-economic-crisis
Compensation and benefits of company, Retrieved from http://www.cocacolacompany.com/careers/us-employee-benefits
Compensation and benefits of company, Retrieved from
http://careers.cokecce.com/en/experienced/working/benefits/#

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Running head: Strategic analysis of Coca Cola

Report on Strategic analysis of Coca Cola

Strategic analysis of Coca Cola

Existing Mission statement........................................................................................... 4

1.1 Proposed Mission Statement.................................................................................................... 4

Existing Coca Cola Company core values......................................................................5

Proposed core values:...................................................................................................... 5

Opportunities in the SWOT of coca cola........................................................................6

Threats in the SWOT of coca cola.................................................................................7

Porters Five Forces....................................................................................................... 9

6.1 RIVALRY AMONG EXISTING FIRMS: High Pressure..................................................................9

PESTEL ANALYSIS OF COCA- COLA..............................................................................12

7.1 POLITICAL FACTORS....................................................................................................... 12

Coca Cola Value Chain analysis...................................................................................16

11. Weaknesses in the SWOT of coca cola...................................................................................20

Internal factor evaluation method...........................................................................21

Space Matrix of Coca Cola Company.......................................................................22

Quantitative strategic planning matrix (QSPM).......................................................24

Human Resource Strategy and Plan........................................................................25

Training and Development.......................................................................................29

Strategic analysis of Coca Cola

Training design process.................................................................................................. 30

Compensation and Benefits.....................................................................................30

Strategic analysis of Coca Cola

Existing Mission statement

To refresh the world in mind, body and spirit

To create value and make a difference.

Proposed mission statement

Strategic analysis of Coca Cola

Strategic analysis of Coca Cola

Leadership: The courage to shape a better future

Collaboration: Leverage collective genius

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

Optimistic: We can see the future

Open minded: Appreciate the ideas and creative minds

Learning: learning should ends with your life.

Inspiring: Our dealings show your importance.

Team Building: Group can meet our expectations

Humble: Nothing is beyond the humanity

Strategic analysis of Coca Cola

Strategic analysis of Coca Cola

J. DeFranco, Jr. | May 20, 2015)

Strategic analysis of Coca Cola

6. Porters Five Forces

Strategic analysis of Coca Cola

6.1 RIVALRY AMONG EXISTING FIRMS: High Pressure

Strategic analysis of Coca Cola

Strategic analysis of Coca Cola

6.2 POTENTIAL ENTRANTS: Low Pressure

Strategic analysis of Coca Cola

Strategic analysis of Coca Cola

7.1 POLITICAL FACTORS

Strategic analysis of Coca Cola

Strategic analysis of Coca Cola

Strategic analysis of Coca Cola

Strategic analysis of Coca Cola

Eurasia and Africa

Strategic analysis of Coca Cola

Strategic analysis of Coca Cola

Strengths in the SWOT of coca cola