Strategic Management Project

EGYPT 2013

Contents Coca-Cola History Vision, Mission & Objectives PEST Analysis Porter's 5 Forces SOWT Analysis Corporate Strategy Business Strategy Coca-Cola Life Cycle BCG Matrix Recommendations

COCA-COLA History Coca-Cola history began in 1886 when the curiosity of an

Atlanta pharmacist, Dr. John S. Pemberton, led him to create a distinctive tasting soft drink that could be sold at soda fountains.

He created a flavored syrup, took it to his neighborhood pharmacy, where it was mixed with carbonated water and deemed "excellent" by those who sampled it.

Dr. Pemberton's partner and bookkeeper, Frank M. Robinson, is credited with naming the beverage "Coca-Cola" as well as designing the trademarked, distinct script, still used today

COMPANY OVERVIEW

A leading manufacturer, distributor and marketer of non-alcoholic beverage concentrates and syrups

The company owns or licenses more than 500 brands

It operates in more than 200 countries

The company is headquartered in Atlanta, Georgia

Coca-cola Products

Vision statement:Our vision serves as the framework for our road

map and guides every aspect for 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.

Vision statement: 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

Mission statement:

Our Roadmap start with our mission, which is enduring. It declares our purpose as a company and serves as the standard against which we weigh our action and decisions.

To refresh the world. To inspire moments of optimism and

happiness. To create value and make a difference .

Objectives :

The main objectives for the Coca-Cola Company are

To be globally knows as a business that conducts business responsibility and ethically.

To accelerate sustainable growth to operate in tomorrow’s world.

To maximize share owner value over time.

Coca-Cola’s Objectives To maximize long-term cash flow

To ensure the strongest and most efficient production, distribution, and marketing systems possible

By having these objectives , it forms the foundations for companies in decision making process .

PEST )) Country Analysis

Political Forces:*Stability of government ( after 25th

(30 June*Tax Law

*Attitude towards foreign companies

Jan. and

Economic Forces *Interest Rate*Inflation Rate

*Energy cost &availability*(Wages ( Low labor cost

PEST ANALYSIS

Social Forces:*Population growth rate*Life style changes*Religious orientation (Ramadan Season)* Age distribution: 0-14 years: 32.3% - 15-24 years: 18% - 25-54 years: 38.3% (2013 estimate)

Technological Forces:*Spending on R&D

*Telecom Infrastructure*Internet availability

*(Media(TV&Radio

Industry AnalysisPorter's 5-Forces

Entry Barriers

Bargaining Power of Suppliers

Bargaining Power of Buyers

Rivalry amongCompetition

Threat of Substitute

Medium Pressure

Low pressure

Medium to High pressure

Low pressure

High Pressure

Porter’s Five Forces Threat of New Entrants: Medium Pressure Economies of scale Switching costs Capital requirement Product differentiation (variety) Access to distribution channels

Porter’s Five Forces Threat of Substitute: Medium to High pressure

Availability of substitutes

Switching costs

Coca-cola doesn’t really have an entirely unique flavor. In

a blind taste test, people can’t tell the difference between

Coca-Cola and Pepsi.

Porter’s Five Forces Bargaining Power of Buyers: Low pressure The individual buyer has small pressure on

Coca-Cola Large retailers, like Carrefour, have bargaining

power because of the large order quantity, but the bargaining power is lessened because of the end consumer brand loyalty.

Porter’s Five Forces Bargaining Power of Suppliers: Low pressureRaw materials of soft drink industry include CO2, water, sugar, syrup, plastic, glass, tins, etc. Amount purchased from supplier Switching costs Suppliers forward integration

Porter’s Five Forces Rivalry Among Competition : High Pressure

Monopolistic competition

Product characteristics

SOWT Analysis

Strengths WeaknessesInternal

How maximize them How minimize their effect

1. Negative publicity2. Low profits in strong areas3. Decline in cash flow4. Supply is restricted5. Significant focus on carbonated

drinks6. Brand failures or many brands with

insignificant amount of revenues7. Carbonated drinks have bad

physical effects

1. Global presence2. Brand awareness3. Logo famous4. Strong marketing and advertising5. Customer loyalty6. Bargaining power over suppliers7. Corporate social responsibility8. Strong distribution channels

SOWT Analysis

Opportunities Threats

1. Bottled water consumption growth2. Increasing demand for healthy food

and beverage3. Growth through acquisitions

1. Changes in consumer preferences2. Water scarcity3. Negative health effect4. Decreasing gross profit and net

profit margins5. Competition from PepsiCo6. Saturated carbonated drinks

market

External

How we avoid themHow we capitalize them

Corporate Strategy

Manufacturing

Horizontal Integration

New Products New Region

Business StrategyCompetitive Advantage

MaintainSpecialty

OutstandingSuccess

Hope forMarket Growth

Maintain CostAdvantage

Degr

ee o

f Diff

eren

tiatio

n

Relative Cost

Low

Hi

gh

High Low

SALESPROFIT

COCA-COLA Life Cycle

Emerging Growth Maturity DecliningMoney

Time

Coca-Cola has more than Life Cycle , on which had a new products and in the same time they are on the Maturity stage

BCG Matrix

Star Question Mark

Cash Caw DogGrow

th R

ate

Relative Market Share LowHigh

High

Low

Recommendations Coca-Cola should try to have product differentiation for carbonated drinks through R&D Coca-Cola should spend more R&D on avoiding bad physical effects of carbonated drinks. Coca-Cola should focus on non carbonated drinks as bottled water and healthy drinks Coca-Cola should start producing new products rather than beverages as food and snacks

to enter a new life cycle Coca-Cola should think about Vertical Integration : - Backward Integration: Produce raw Material - Forward Integration : Distribution ( Coca-Cola Stores ) Coca-Cola's distribution channel is mostly through retails. Whereas the competitors also

concentrates more on Restaurants and Coffee shops. Coca-Cola should try to increase their distribution in these areas .

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