A PROJECT REPORTONSTRATEGIC MANAGEMENT PROCESSOF COCACOLASubmitted to University of Mumbai inPartial fulfilment Of the requirement of the Degree ofM.COM (BUSINESS MANAGEMENT) PART 1. Under guidance ofPROF. S.M.CHITALE SUBJECTSTRATEGIC MANAGEMENT VPM SK.G Joshi College of Arts N.G Bedekar College of CommerceThane (W)Academic Year: 2014-15BYROHAN SUNIL PATIL Roll No.57

Vidya Prasark Mandal, Thane

K.G.JOSHI BEDEKAR COLLEGE OF ARTS & N.G.BEDEKAR COLLEGE OF COMMERCE CERTIFICATEOFPROJECT WORKThis is to certify that MR./MS.ROHAN SUNIL PATIL of M.COM PART-I (BUSINESS MANAGEMENT) Semester I Roll No.15 has undertaken & completed the project work title PERFORMANCE APPRAISAL IN PEPSICO during the academic year 2014-15 under the guidance of PROF. MR. VINAYAK RAJE to this college in fulfillment of the curriculum of MASTER OF COMMERCE PART-I (BANKING & FINANCE) UNIVERSITY OF MUMBAI.This is a bonafied project work & the information presented is true & original to the best of our knowledge and belief

PROJECT GUIDE EXTERNAL EXAMINOR DECLARATION

I am ROHAN SUNIL PATIL studying in MCOM Part-1 hereby declare that I have done a project on reference to STRATEGIC MANAGEMENT PROCESS OF COCACOLA As required by the university rules, I state that the work presented in this thesis is original in nature and to the best my knowledge, has not been submitted so far to any other university.Whenever references have been made to the work of others, it is clearly indicated in the sources of information in references.

Student(ROHAN SUNIL PATIL)

Place: ThaneDate:

ACKNOWLEDGEMENT

It gives me great pleasure to declare that my project on STRATEGIC MANAGEMENT PROCESS OF COCACOLA have been prepared purely from the point of view of students requirements.This project covers all the information pertaining to STRATEGIC MANAGEMENT PROCESS . I had tried my best to write project in simple and lucid manner. I have tried to avoid unnecessary discussions and details. At the same time it provides all the necessary information. I feel that it would be of immense help to the students as well as all others referring in updating their knowledge.I am indebted to our principal Dr. Mrs. Shakuntala A. Singh Madam for giving us such an awesome opportunity. I am also thankful to our coordinator Mr. D.M. Murdeshwar Sir and also librarian and my colleagues for their valuable support, co-operation and encouragement in completing my project.Special thanks to Prof. S.M.CHITALE my internal guide for this project for giving me expert guidance, full support and encouragement in completing my project successfully.I take this opportunity to thanks my parents for giving guidance and for their patience and understanding me while I am busy with my project work.Lastly I am thankful to God for giving me strength, spirit and also his blessings for completing my project successfully.

SR NOPARTICULARSPAGE NO.

1STUDY OF STRATEGIC MANAGEMENT PROCESS

1.1 WHAT IS STRATEGY1.2 WHAT IS STRATEGIC MANAGEMENT1.3 BENEFITS OF STRATEGIC MANAGEMENT1.4 THREE KEY STRATEGIC QUESTIONS1.5 STRATEGY FORMULATION 1-11

2INDUSTRY ANALYSIS OF BEVERAGE INDUSTRY

2.1 THE NON ALCHOLIC SEGMENT2.2 ALCHOLIC SEGMENT2.3 INDUSTRY LEADERS2.4 ABOUT THE COMPETITORS2.5 PORTERS FIVE FORCES

12-15

3STRATEGIC MANAGEMENT PROCESS OF COCA COLA

3.1 HISTORY OF COCA-COLA3.2 MISSION OF COCA-COLA3.3 EXISTING VISION STATEMENT3.4 BRINGING VISION TO LIFE3.5 EXISTING GROWTH STRATEGY

16-23

4OBJECTIVES,STRATEGIS & TACTICS

4.1 OBJECTIVES4.2 STRATEGIS & TACTICS4.3 STRATEGY EVALUATION4.4 VALUES

24-25

5INTERNAL AND EXTERNAL ENVIORMENT

5.1 INTERNAL ENVIORMENT5.2 EXTERNAL ENVIORMENT 26-28

6SWOT

6.1 STRENGHTS6.2 WEAKNESS6.3 OPPORTUNITIES6.4 THREATS

29-34

7.COMPETITION AND BCG7.1 BCG MATRIX7.2 BCG PRODUCT LIFE CYCLE

35-37

8.FUTURE GOALS 38

9.CURRENT STATUS 39-42

10.CONCLUSION & RECCOMENDATIONS 43

11.WEBLIOGRAPHY & BIBLIOGRAPHY 44

CHAPTER 1: A STUDY OF STRATEGIC MANAGEMENT PROCESS1.1 WHAT IS A STRATEGY? A strategy is a business approach to a set of competitive moves that are designed to generate a successful outcome. A strategy is managements game plan for:

1.2 WHAT IS STRATEGIC MANAGEMENT?Strategic management consists of the analysis, decisions, and actions an organization undertakes in order to create and sustain competitive advantages. This definition captures two main elements that go to the heart of the field of strategic management.First, the strategic management of an organization entails three ongoing processes: analysis, decisions, and actions. That is, strategic management is concerned with the analysis of strategic goals (vision, mission, and strategic objectives) along with the analysis of the internal and external environment of the organization. Next, leaders must make strategic decisions. These decisions, broadly speaking, address two basic questions: What industries should we compete in?How should we compete in those industries? These questions also often involve an organizations domestic as well as its international operations. And last are the actions that must be taken. Decisions are of little use, of course, unless they are acted on. Firms must take the necessary actions to implement their strategies.Second, the essence of strategic management is the study of why some firms outperform others. Thus, managers need to determine how a firm is to compete so that it can obtain advantages that are sustainable over a lengthy period of time. That means focusing on two fundamental questions: How should we compete in order to create competitive advantages in the marketplace?Managers must also ask how to make such advantages sustainable, instead of highly temporary, in the marketplace. That is: How can we create competitive advantages in the marketplace that are not only unique and valuable but also difficult for competitors to copy or substitute?The set of managerial decisions and actions determines the long-run performance of a corporation. It focuses on integrating management, marketing, finance/accounting, production/operations, research and development, and computer information systems to achieve organizational success.

1.3 BENEFITS OF STRATEGIC MANAGEMENT Clearer sense of strategic vision Sharper focus on what is strategically important Improved understanding of rapidly changing environment Discharges Board Responsibility Forces An Objective Assessment Provides a Framework For Decision-Making Supports Understanding & Buy-In Provides an Organizational Perspective Enables Measurement of Progress

1.4 THREE KEY STRATEGIC QUESTIONS1.5 STRATEGY FORMULATIONStrategy formulation is the process by which an organization chooses the most appropriate courses of action to achieve its defined goals. This process is essential to an organizations success, because it provides a framework for the actions that will lead to the anticipated results. Strategic plans should be communicated to all employees so that they are aware of the organizations objectives, mission, and purpose. Strategy formulation forces an organization to carefully look at the changing environment and to be prepared for the possible changes that may occur. The five component approaches to promote successful organizational performance are composed of: Vision formulation which leads to the statement of Mission Mission is then converted into performance Objectives To achieve objectives you develop Strategies Strategy implementation Evaluation of performance

CHAPTER 2: INDUSTRY ANALYSIS OF BEVERAGE INDUSTRY:The Beverage Industry is a mature sector and includes companies that market nonalcoholic and alcoholic items. Since growth opportunities are limited, many members of the industry endeavor to diversify their offerings to better compete and gain share. Too, they may pursue lucrative distribution arrangements and/or acquisitions to expand their operations and geographic reach. The soft drink industry spans sparkling drinks, concentrates, juices, bottled water, smoothies, ready-to-drink tea and coffee, and functional drinks. Soft drinks do not usually contain alcohol; though can have up to 0.5% alcohol content. They are generally made on a still or carbonated water base with added flavors and sweeteners, and sometimes fruit juices or caffeine.2.1 The Nonalcoholic SegmentHistorically, two large entities have dominated the nonalcoholic beverage landscape:Pepsi(PEP)andCoca-Cola (KO-Free Coca-Cola Stock Report). They distribute their well known carbonated and noncarbonated drinks internationally via sizeable bottling subsidiaries. The bottlers depend on these two industry leaders to create new products, improve existing offerings and maintain sufficient advertising. Related capital spending amounts to several billion dollars each year. The industry titans often boost their results (and those of their subsidiaries) by purchasing smaller market players or by inking promising distribution agreements. In prosperous economic times, consumers usually favor the most famous brand names. Sales are seasonal, not surprising, peaking during warm summer months. Consumer preferences will drive product diversification. Most notably, greater awareness of the causes of common health issues, e.g., obesity and diabetes, has increased demand for bottled water and other low-sugar or sugar-substitute drinks. Too, beverage companies have capitalized on the popularity of energy drinks and ready-to-drink coffee. Product diversification may be achieved through internal or external means. The same goes for geographic expansion. China and Russia, two, of course, very large markets in the developing-nation arena, have gotten much attention. 2.2 Alcoholic segment: Wine, Beer, and SpiritsThe range of wine, beer and distilled spirits offered by brand and type is wide. Demand is somewhat inelastic across good and bad economic times. There is an overall long-term trend of rising affluence around the globe. Thus, more and more consumers are becoming increasingly discerning about what they purchase. Like their nonalcoholic peers, makers of alcoholic beverages invest large amounts of cash in marketing and advertising to build brand recognition. Debt burdens can be rather hefty here, as well, especially when a company is aggressively expanding through acquisitions.2.3 Industry Leaders The three main players on the global soft drink market are Coca-Cola, PepsiCo and Cadbury Schweppes [now named as Dr Pepper Snapple Group(DPS)]. US-based Coca-Cola employs almost 140,000 people and sells over 3,500 products in more than 200 countries. Headquartered in New York, PepsiCo has 19 leading brands that bring in over $1 billion in yearly retail sales and two dozen other brands with yearly sales of between $250 million and $1 billion.

2.4 ABOUT THE COMPETITORS:The PepsiCo*1 challenge (to archrivalCoca-Cola)never loses itsfizzfor the world's #2 carbonated soft drink maker. Itssoft drink brands include Pepsi, Mountain Dew, and their diet alternatives.Cola is not the company's only beverage: Pepsi sellsTropicanaorange juice,Gatoradesports drink, SoBe tea, and Aquafina water.The companyalso ownsFrito-Lay, the world's #1 snack maker with offerings suchas Lay's, Ruffles, Doritos, and Cheetos.The Quaker Foods unit makes breakfast cereals (Life, Quaker oatmeal), Rice-A-Roni rice, and Near East side dishes. Pepsi products are available in200-plus countries; the US generates 50% of sales. The companyoperates its own bottling plants and distribution facilities.Dr Pepper Snapple Group(DPS)*2: For many consumers, it's a snapdecision about which doctor to choose. Dr Pepper Snapple Group(DPS)is the bottler and distributor of Dr. Pepper soda andSnappledrinks. Serving Canada, Mexico, and the US, the company offers a vast portfolio of non-alcoholic beverages including flavored, carbonated soft drinks and non-carbonated soft drinks, along with ready-to-drink non-carbonated teas, juices, juice drinks, and mixers.Among its brands areDr Pepper and Snapple of course, along with A&W Root Beer, Hawaiian Punch,Mott's, and Schweppes. It has some cult favorites as well, includingVernors, Squirt, and Royal Crown Cola.DPS is the#3 soda business in North America after #1Cokeand #2Pepsi.

2.5 PORTERS FIVE FORCES

APPLYING PORTERS FIVE FORCES TO SOFT DRINK INDUSTRY: A fierce competition exists among very few players: Duopoly Intense rivalry between Coke & Pepsi The threats of substitutes is reduced by expansion of products portfolio: Many alternative beverages e.g. juice & tea Suppliers have less bargaining power: Many substitutes for sugar and packaging Different levels of bargaining power exists among the groups of buyers: Vending machine no power bargaining power Fast food chain more bargaining power Strong barriers to new entrants: Amount of capital investment required Exclusive territories in distribution channel The access to retail chain.

CHAPTER 3: STRATEGIC MANAGEMENT PROCESS OF COCA-COLA COMPANY3.1 HISTORY OF COCA-COLA: Timeline

1886-1892In 1886 is when Atlanta pharmacist created the first Coca-Cola mixture out various ingredients, where he then put it up for sale for 5 cents a glass

1893-19041984 is when Joseph Biedenharn was hired to be the first to put the Coca Cola in bottles

1905-1918Due to beverage companies copying Coca-Cola they began to manufacture the contour bottle in 1916

1919-1940In the 1928 Olympics located in Amsterdam, Coca-Cola traveled with the team and began global expansion

1941-1951In 1943, during WWII General Eisenhower requested 10 bottle plants to be shipped to them overseas, which then created an overseas business.

1960-1981After 70 years, Coca-Cola added new flavors: Fanta, originally developed in the 1940s and introduced in the 1950s; Sprite followed in 1961, with TAB in 1963 and Fresca in 1966

1982-1990In 1985, was the release of a new taste for Coca-Cola, the first change in formulation in 99 years. It wasnt long until they changed to their original

1990-1999New beverages joined the Company's line-up, including Powerade sports drink, Qoo children's fruit drink and Dasani bottled water

HISTORY OF COCA- COLA BOTTLE:3.2 MISSION OF COCA-COLA COMPANY: EXISTING MISSION STATEMENTOur Roadmap starts with out 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. PROPOSED MISSION STATEMENTWith six main operating segments in North America, Latin America, Europe, Eurasia, Africa, the Pacific, and bottling investments, Coca-Cola is dedicated to being a highly effective refreshments and fast-moving organization. Our mission is to bring consumers quality refreshments that anticipate and satisfy their desires and needs. As a company we strive to be responsible citizens by helping to rebuild and support sustainable communities, while maximizing long-term return to shareowners. Through modern technology and inspiring employees to be the best they can be we know we can continue to provide the best products on the market.

3.3: EXISTING VISION STATEMENTOur vision serves as a 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.Areas of focus: Employee inputDeveloped and implemented action plans from Employee Insights SurveyHealth and safety: Implemented system-wide metrics for health and safetyWorkers rights: Formally pledged support for the United Nations Global Compact Introduce and implemented Workplace Rights Policy in 2006 PORTFOLIO: Bring to the world a portfolio beverage brands that anticipate and satisfy peoples desires and needs.Product range: Launched more than 400 new beverage products, bringing the total to nearly 2,400 Launched Make Every Drop Count marketing campaign to communicate beverage portfolio breadth and rangeNutrition: Extended availability of beverages and nutritional information for consumers Launched web site for the Beverage Institute for Health and Wellness Expanded the range of low and no calorie alternatives by 23% Increased variety of package sizes, including 100-calories cans PARTNERS: Nurture a winning network of customers and suppliers, together we create mutual, enduring value.Bottler relations; Held first relations workshop with largest bottling partners International Labor Organization conducted an independent assessment of human rights in the workplace at Coca-Cola bottler facilities in Columbia PLANET: Be a responsible citizen that makes a difference by helping build and support sustainable communities.Area of focus: Refrigeration emissions Completed transition to hydroflourocardbon free insulation for 98% of new refrigerated sales and marketing equipment Placed 2,000 HFC free CO2- refrigerated coolers and vending machines in the market, bringing total placements to 4,000 Introduced EMS-55, a device that can generate energy savings of up to 35% in purchase of new coolersEmissions: Achieved 100 percent compliance with wastewater standards by 2010 Developed water strategies and initiative using data from global water risk assessment Continued comprehensive reporting on our carbon footprint and our corresponding climate protection activities.Packaging: Strengthened the integration of environmental considerations into the packaging design process Launched initiatives to enhance global environmental packaging performance metricsEnvironmental leadershipJoined Global Greenhouse Gas Register of the World Economic forum PROFIT: Maximize long-term return to shareholders while being mindful of our overall responsibilities.Stakeholder Engagement: Established a Stakeholder Relations department Held stakeholder forums with leading international nongovernmental organizations Launched global stakeholder engagement toolkit PRODUCTIVITY: be a highly effective, lean and fast-moving organizationPROPOSED VISION STATEMENTCoca-Colas vision is to inspire moments of happiness while refreshing the world. MUHTAR creates the 2020 VISION! 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 - Muhtar Kent (The Coca-Cola Company, CEO)*1

*1http://www.coca-colacompany.com/our-company/mission-vision-values

3.4 BRINGING VISION TO LIFE Our vision to become truly sustainable and achieve long-term growth is changing the way we think and operate. Youll see evidence of our progress every day as we work closely with our bottling partners in achieving our goals: We will be in the top three for total return to shareowners among a set of comparable global companies, while ensuring the long-term health of our system. We will be the employer of choice, where people create extraordinary results every day, in every country where we operate. We will double the value of our most recognized brand, Coca-Cola, and grow the rest of our portfolio so it is comparable in size. We will be the world's most respected, preferred and trusted global partner, as measured by superior satisfaction scores and innovations that ignite the categories in which we choose to compete. We will be the recognized global leader in corporate social responsibility. Its in our very nature to innovate, create and excel.The more we grow, the greater the opportunity for you to grow with us.

3.5 EXISTING GROWTH STRATEGY Driving global beverage leadership Accelerate innovation Leverage our balanced geographic portfolio

COCA-COLA DEFINES SUSTAINABLE GROWTH IN 3 WAYS:

Environment: practices that reduce footprint on the planet

Process efficiencies: working smarter, not harder; dont wasteRespectful business citizenship: nurturing communities in which you operateSustainable Growth

CHAPTER 4. OBJECTIVES, STRATEGIES, AND TACTICSDecision making is a key aspect to any business. Objectives, strategies, and tactics are crucial to a businesss success. The main difference between those three terms are that objectives are medium-long term targets, strategies are long term objectives, and tactics are short term objectives. Objectives give a sense of direction, unity, and purpose. They play a big role in forming the foundation for companies in the decision making process. Objectives can be communicated through mission statements. Strategies and tactics both refer to a plan or scheme but strategies are long term plans that will have significant consequences while tactics are short term and may be less significant in comparison to strategies.4.1 OBJECTIVESThe main objectives for the Coca-Cola Company are to be globally known as a business that conducts business responsibility and ethically and to accelerate sustainable growth to operate in tomorrow's world. By having these objectives, it forms the foundation for companies in the decision making process.4.2 STRATEGIES AND TACTICSThe Coca-Cola Company aims to be globally known, they do this by targeting different areas across the globe with different products, gaining their brand name and popularity. All the bottling partners work closely with their customers such as convenience stores, grocery stores, movie theaters and street vendors to create and use localized strategies developed in partnership with the Company. Their competition with other beverage companies are also narrowed down as they own various brands that could be possible competition. For example, the company sells Coke without the competition of other popular soft drink brands like Sprite and Fanta because the company owns those brands as well. The company often reviews and evaluates their business plans and performance to improve their earnings and analyze their competitive position in the market. They make decisions in realigning their business models to match the objectives of the company by using strategies and tactics in the analysis of their performance.4.3 STRATEGY EVALUATIONINTEGRATION STRATEGIES We have integrated into many suppliers prior to 2010 We recently purchased CCE which helps integrate our bottling and marketingPRODUCT AND MARKET DEVELOPMENT We are highly established worldwide prior to 2010MARKET PENETRATION We are currently in 200 different countries prior to 2010UNRELATED OR RELATED DIVERSIFICATION We dont offer a food segment (Unrelated) None of our main competitors offer an alcoholic beverage (Related) 4.4 VALUES 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 wellCHAPTER 5. INTERNAL & EXTERNAL ENVIRONMENT:5.1 INTERNAL ENVIRONMENT5.1.1 Primary Activities: The inbound logistics aspect of Coca-Cola is very strong as they have over 300 distribution or bottling centers across the globe serving to over 200 countries. Having many distribution facilities will minimize shipping time & shipping costs and therefore increase revenue. A lot of research is put into the design and layout of the warehouse and other bottling centers. Since having intelligently laid out these warehouses, Coca-Cola has increased efficiency. Not only having inbounded warehouses being effectively designed, Coca-Cola incorporates this layout technology in their outbound factories to increase their overall workflow design. Coca-Cola is one of the most recognizable brands in the world and continues to market their product extremely well. Coke's trademark value is estimated at a whopping $25 billion. The brand basically sells itself. The Coca-Cola Company actively researches the needs of its customer segments and targets to provide drinks and snacks that people will want. For this reason they provide excellent service to their suppliers and customers. 5.1.2 Support Activities: With over 500 brands owned by the Coca-Cola Company, there are many raw materials that are needed to support these snack and beverage brands. The main ingredient most of Coca-Cola's products is water. Coke understands the difficulties with many countries receiving fresh water and they work hard to deliver to these remote areas. Other than water, nutritive and non-nutritive sweeteners are used in their products. Coke has developed win-win relationships with their suppliers because both parties are in understanding that they will do a lot of business together. Coke does depend on one supplier for different ingredients they use. This could be dangerous for Coke as the supplier may take advantage of this relationship. The Coca-Cola Company is massive and has its own internal administration. These internal divisions include Human Resources, Information Technology, Accounting and others. They also spend millions of dollars a year on research and development of new products. Continually changing and understanding the needs and wants of the world's population will lead to happier customers and increased revenues.5.2 EXTERNAL ENVIRONMENT5.2.1 Political Analysis: Changes in laws and regulations Changes in the non-alcoholic business environment Political conditions including civil unrest, government changes Their ability to penetrate developing and emerging markets, which also depends on economic and political conditions 5.2.2 Economic Analysis: After the attacks on September 11, 2001, Coca Cola sales were down. Consumers are now resuming their normal habits The Federal Reserve cut the interest rate to recover from recession & this excited consumer demand. Coca-Cola borrowed money for investing in other products The non-alcoholic beverage industry has high sales in countries outside the U.S. 5.2.3 Socio-Cultural Analysis: Many U.S. Citizens are practicing healthier lifestyles. Many are switching to bottled water and diet colas instead of beer and other alcoholic beverages. Time management has increased .The need for bottled water and other more convenient and healthy products are in important in the average day-to-day life. 5.2.4 Technological Analysis: The new technology of internet and television which use special effects for advertising through media. Introduction of cans and plastic bottles have increased sales for coca-cola as these are easier to carry and you can bind them once used. There has been introduction of new machineries all the time. The Wakefield factory has the technology to produce cans of coca-cola faster than bullets from a machine gun. 5.2.5 Legal Analysis: Soft drink Interbrand competition act of 1980 secured the right of concentrate Producers to grant exclusive territories to bottlers The company was granted a trademark for the name coke in 1945. Pressure from the scientific community for the FDA to enforce caffeine labels warning of the dangers of caffeine consumption Obstacles in international operations included regulations, price controls, advertising restrictions and lack of infrastructure 5.2.6 Demographic Analysis: Educated people belonging to upper and middle-income groups also commonly use Coca-Cola. Major emphasis of Coca-Cola is to attract teenagers. Diet Coca-Cola offered by Company is Very popular among diabetic patients. Consumers from the ages of 37 to 55 are also increasingly concerned with nutrition. CHAPTER 6:- SWOT ANALYSIS:6.1 STRENGTHS1) Coca-Cola owns four of the worlds top five nonalcoholic sparkling beverage brands including Coca-Cola, Diet Coke, Sprite and Fanta.2) Acquired Coca-Cola Enterprises, Inc., one of the major bottlers for Coca-Cola in North America which had $3.6 billion in revenues.3) Coca-Cola has more than 500 brands and 3,500 beverages and products. 4) Most extensive beverage distribution channel. Coca-Cola sells 1.7 Billion servings of beverages per day in over 200 countries. 5) The best global brand in the world in terms of value.According to Interbrand, The Coca Cola Company is the most valued ($77,839 billion) brand in the world.6) Worlds largest market share in beverage: Coca Cola holds the largest beverage market share in the world (about 40%).7) Strong marketing and advertising.Coca Cola advertising expenses accounted for more than $3 billion in 2012 and increased firms sales and brand recognition.8) Customer loyalty.The firm enjoys having one of the most loyal consumer groups.9) Bargaining power over suppliers.The Coca Cola Company is the largest beverage producer in the world and exerts significant power over its suppliers to receive the lowest price available from them.10) Corporate Social Responsibility (CSR).Coca Cola is increasingly focusing on CSR programs, such as recycling/packaging, energy conservation/climate change, active healthy living, water stewardship and many others, which boosts companys social image and result in competitive advantage over competitors.6.2 WEAKNESSES1) Does not hold number 1 spot for either the water brand or the leading sports drink 2) Currently does not hold a snacks segment, where Pepsi Co. has a food division which creates for 60% of their total revenue. 3) Significant focus on carbonated drinks.The business is still focusing on selling Coke, Fanta, Sprite and other carbonated drinks. This strategy works in short term as consumption of carbonated drinks will grow in emerging economies but it will prove weak as the world is fighting obesity and is moving towards consuming healthier food and drinks.4) Brand failures or many brands with insignificant amount of revenues.Coca Cola currently sells more than 500 brands but only few of the brands result in more than $1 billion sales. Plus, the firms success of introducing new drinks is weak. Many of its introduction result in failures, for example, C2 drink. 5) Undiversified product portfolio.Unlike most companys competitors, Coca Cola is still focusing only on selling beverage, which puts the firm at disadvantage. The overall consumption of soft drinks is stagnating and Coca Cola Company will find it hard to penetrate to other markets (selling food or snacks) when it will have to sustain current level of growth.6) High debt level due to acquisitions.Nearly $8 billion of debt acquired from CCEs acquisition significantly increased Coca Cola's debt level, interest rates and borrowing costs.7) Negative publicity.The firm is often criticized for high water consumption in water scarce regions and using harmful ingredients to produce its drinks.

6.3 OPPORTUNITIES1) Spurring demand for energy drinks, especially in the US where estimates show about 2 billion.2) Approximately 85% of the companys unit case volume is delivered in recyclable bottles and cans, and the company targets to recover at least 50% of the equivalent bottles and cans sold worldwide.3) Bottled water drinking has increased 11%. 4) European and China market show large potential to grow by an estimated amount of 7%. 5) 55 billion beverage servings are consumed worldwide each day6) The non-alcoholic ready to drink (NARTD) beverage industry is expected to grow by 50 billion unit cases by 2020.7) Bottled water consumption growth.Consumption of bottled water is expected to grow both in US and the rest of the world.8) Increasing demand for healthy food and beverages.Due to many programs to fight obesity, demand for healthy food and beverages has increased drastically. The Coca Cola Company has an opportunity to further expand its product range with drinks that have low amount of sugar and calories. 9) Growing beverages consumption in emerging markets.Consumption of soft drinks is still significantly growing in emerging markets, especially BRIC countries, where Coca Cola could increase and maintain its beverages market share.10) Growth through acquisitions.Coca Cola will find it hard to keep current growth levels and will find it hard to penetrate new markets with its existing product portfolio. All this can be done more easily through acquiring other companies.

6.4 THREATS1) Increasing preference for non carbonated healthy drinks. The Coca Cola soda saw a 5% volume declines respectively in the carbonated soda brands category. 2) With rising obesity rates of 35.7% for adults and 17% for youth in the U.S. alone, health concerns may cause reduced consumption of sugar sweetened beverages, impacting profitability.3) Water is the main and most significant ingredient in beverages, quality and abundance of water is scarce worldwide, where 70% is used for agriculture and irrigation.4) The primary beverage of Coca Cola is sparkling beverages, the most popular drinks consumed worldwide, in their respective order, are water, tea, and beer.5) Changes in consumer tastes.Consumers around the world become more health conscious and reduce their consumption of carbonated drinks, drinks that have large amounts of sugar, calories and fat. This is the most serious threat as Coca Cola is mainly serving carbonated drinks.6) Water scarcity.Water is becoming scarcer around the world and increases both in cost and criticism for Coca Cola over the large amounts of water used in production. 7) Strong dollar.More than 60% of The Coca Cola Company income is from outside US. Due to strong dollar performance against other currencies firms overall income may fall.8) Legal requirements to disclose negative information on product labels.Some Coca Colas carbonated drinks have adverse health consequences. For this reason, many governments consider to pass legislation that requires disclosing such information on product labels. Products containing such information may be perceived negatively and lose its customers.9) Decreasing gross profit and net profit margins.Coca Colas gross profit and net profit margin was decreasing over the past few years and may continue to decrease due to higher water and other raw material costs. 10) Competition from PepsiCo.PepsiCo is fiercely competing with Coca Cola over market share in BRIC countries, especially India.11) Saturated carbonated drinks market.The business significantly relies on the carbonated drinks sales, which is a threat for the Coca Cola as the market of carbonated drinks is not growing or even declining in the world. 6.5 DESIGNING ORGANIZATIONAL STRUCTURE: The coca cola company realizes that divisional structure gives to react in uncertain environment and also allow to main level of stability. Multi visional structure allows divisional managers to handle daily operations while operate managers are free to follow long term planning. A multidivisional matrix structure may be better suited for the coca cola company. This would increase coordination between cooperate and at all levels to create solution to problem. The core competences that give the organization its best competitive advantages are its strong brand name and its network of bottlers and distributers. Relationship with its distributers another completive advantage, the structure of coca-cola is ideal for its differentiation strategy because they focus on market. Company known that for innovative marketing that constantly promote their brand name which protects their domain from competitors, coca-cola is too late for introduction new type of beverages, energy drinks, as well as blossoming coffee drinks.

ORGANIZATION STRUCTURE OF COCA-COLA

CHAPTER 7:- COMPETITION AND BCG:The number one competitor of the Coca Cola Company is Pepsi Co. Believe it or not at one point Pepsi Co. was doing much better than Coca Cola. Coca Cola only focused on its one type of product which was soft drinks. Pepsi on the other hand sold chip snacks. Coca Cola, after more planning and market research, was re-evaluated and expanded by a strategy formulated by CEO Roberto Goizveta. Because of his re-evaluation, Coca Cola became one of the worlds most recognized brands. The company now owns four of the worlds top five non alcoholic sparkling beverages, The competition and growth of either Pepsi Co or Coca Cola is now based on three things. They are, The ability to expand internationally where 6 soda sales are growing, to play health card and introduce a new drink with little or no sugar and fewer calories, and to expand to carbonated beverages, The BCG of the company consists of Question marks which, Indicate that a product is growing rapidly and consumes large amounts of cash, but because they have low market shares they do not generate much cash; the result is large net cash consumption, The question marks in Coca Colas case are there energy drinks. An example would be the energy drink Full Throttle. With the majority of America consuming energy drinks this products quality and taste and purpose brings the company a profit. They just do not know how long it last. The next part of the BCG matrix for Coca Cola deals with Stars. The stars are said to, Generate large amounts of cash because of their strong relative market share, but also consume large amounts of cash because of their high growth rate, A star in Coca Cola Company is its Dasani water. Next are the cash cows. They Exhibit a return on assets that are greater than the market growth rate, and thus generate more cash than they consume, Coca Colas cash cow is Limca. Last but not lease is the Dog. Dogs have low market share and a low growth rate and thus neither generate nor consume a large amount of cash, The dog in the Coca Cola Company is its Hi C drink. 7.1 BCG MATRIX

7.2 BCG PRODUCT LIFE CYCLE

CHAPTER 8: FUTURE GOALS:

ProductivityProfitsPlanetPartnersPeopleCOKE WILL ACHIEVE THE FOLLOWING BY THE YEAR 2020

Manage people, time & money for greatest effectivenessAttain corporate globalLeadership in corporate sustainabilityBe the most trusted and preferred business partnersBecome one of the worlds premier employeesDouble revenue and increase system margin SUSTAINABILITY GOALS:Planet: Created the live positively initiative to achieve their 2020 goal: Live Positively:It focuses on seven core areas key to our business sustainability, with measurable goals and metrics for the company and the Coca-Cola system. Some goals are stretch aspirations, and at times, despite our efforts, marketplace and other conditions may impact our ability to meet these goals.People: 5by20 Created the 5by20 initiative to: Empower 5 Million Women throughout the Coke organization by 2020. Coca-cola plans to double the size of its business globally by 2020 and women run businesses play an important role in the coke network. The 5by20 plan provides women access to finances, business skills and mentors in order to grow their business futures.

CHAPTER 9: CURRENT STATUSA FEW ACHIEVEMENTS: Currently serving 3,500 products worldwide Global volume growth in the first quarter of 2013 was 4% On Earth Day Coca Cola donated more than 55,000 recycling bins to parks, schools, colleges, and homes in a 115 communities across the US 72,583,040 likes on Facebook Coca Cola Rewards program is now offered;COCA COLA- OVER 100+ OF CHOICES:

FULL-YEAR AND FOURTH QUARTER 2012 HIGHLIGHTS Strong full-year global volume growth of 4%, in line with our long-term growth target and led by brandCoca-Cola, up 3%. Global volume grew 3% in the quarter, driven by international volume growth of 4% and North America volume growth of 1%. Full-year reported net revenues grew 3% and comparable currency neutral net revenues grew 6%, in line with our long-term growth target. Fourth quarter reported net revenues grew 4% and comparable currency neutral net revenues grew 5%. Full-year reported and comparable currency neutral operating income both grew 6%, in line with our long-term growth target. Fourth quarter reported operating income grew 12% and comparable currency neutral operating income grew 14%. Currency was a 3% headwind on comparable net revenues and a 5% headwind on comparable operating income for the full year. Full-year reported EPS was $1.97, up 6%, and comparable EPS was $2.01, up 5%. Fourth quarter reported EPS was $0.41, up 14%, and comparable EPS was $0.45, up 15%. Full-year cash from operations was up 12%. Evolution of global bottling system continues, with bottler-led consolidation announced in Japan and Brazil, and a majority interest in our Philippine bottling operations sold toCoca-ColaFEMSA (transaction completed in January 2013).

PERFORMANCE HIGHLIGHTSTheCoca-ColaCompanyreported worldwide volume growth of 4% for the full year and 3% in the quarter. The Company reported solid growth for the full year in key developed markets, including North America (+2%) and Japan (+2%). Europe volume declined 1% for the full year, reflecting ongoing uncertain macroeconomic conditions. In addition, the Company delivered strong volume growth in key emerging markets such as Thailand (+22%), India (+16%) and Russia (+8%) for the full year. China business delivered 4% volume growth for the full year, cycling double-digit growth in the prior year, and was impacted by the further effects of a slowing economy, poor weather and a later Chinese New Year. Worldwide sparkling beverage volume grew 3% for the full year and 1% in the quarter. This represents approximately 550 million incremental unit cases in 2012, or the equivalent of adding 13.2 billion new servings to our global business. The volume and value share in global core sparkling beverages for the full year and in the quarter, led by brandCoca-Cola and reflecting a balanced portfolio approach to growth in the core sparkling beverage category. Worldwide brandCoca-Colavolume grew 3% for the full year, with growth across diverse markets, including India (+33%), Thailand (+31%), Russia (+20%), the Philippines (+8%), Brazil (+3%) and Mexico (+3%). In addition,Fantavolume grew 5% andSpritevolume grew 4% for the full year, as we activated global marketing campaigns in locally relevant ways such as theFantaPlaycampaign, now in nearly 200 markets, and theSpriteUncontainable GameNBApartnership.

Worldwide still beverage volume grew 10% for the full year and 9% in the quarter, with growth across beverage categories, including packaged water, ready-to-drink tea and coffee, juices and juice drinks, sports drinks and energy drinks. Excluding the impact of acquisitions, still beverage volume grew 8% for the full year and 7% in the quarter. We grew global volume and value share in still beverages and delivered volume and value share gains across nearly every still beverage category.

CONCLUSION & RECOMMENDATIONS: For the products like diet coke, pulpy orange and kinley soda it better to stop manufacturing these products Invest profits for future growth and for earning more of market share and profits Invest heavily into products like Fanta and sprite in order to push the products to star status. For coca-cola -cost management, product differentiation and marketing have become more important as growth slows and market share becomes the key determinant of profitability The organization has to carefully study external environment moves and accordingly devise strategies to gain competitive advantage Coca cola has to make every possible move to ensure that its image remains that of an FMCG giant that would never compromise on the quality front Coca-Cola continues its expansion across the world by using strategic aggressive marketing methods and campaigns. The continual focus on new products, promotions and advertising which now include both their famous contour bottle and infamous Sprite dimple bottle Appraisal system is an effective technique to support and change culture of the organization optimistically; it would only be possible if the system is equal for all employees of organization. Therefore, companys management should utilize this system to all employees so as to increase effectiveness and productivity.

BIBLIOGRAPHY concept in strategic management and business policy By Thomas l. Wheelen Advanced Strategic Management and Business Policies for Managers - R. Hiremani Naik Strategic Thinking: A Nine Step Approach to Strategy and Leadership for Managers and Marketers - Simon Wootton strategic management and business policy - By Azahar Qazmi

WEBLIOGRAPHY www.google.com www.wikipedia.com www.coca-cola.com www.coca-colacompany.com www.wikipedia.org/wiki/Coca-Cola www.hindustancoca-cola.com www.coca-colastore.com

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