Strategic Management Project Report Sample

7/24/2019 Strategic Management Project Report Sample

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Strategic Management

Table of Contents

Description Page No.

Industry Profile 3

Company Profile 4

Mission Vision 5

Micro Environment & Five Forces Model 6

S!" #nalysis 8

Competitive Profile Matri$ 13

EFE AND IFE Matrix 14

Corporate Strategy 16

Porter%s eneric Strategies 17

Space Matri$ 18

rand Strategy Matri$ 19

'C Matri$ 2

I(E Matri$ 21

"!S Matri$ 22

)uantitative Strategic Planning Matri$ 25

Implementation Stage 26

Conclusion 27


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A!"no#le$%&ent

e are very grateful to #lla* +*o ,lessed us t*e strengt* and courage to stand ,y t*e difficulties

t*at came in t*e +ay and +*o ena,led us to complete t*is pro-ect effectively.#s plants cannot

gro+ +it*out seeds ,irds cannot fly +it*out +ings.Similarly /no+ledge cannot ,e attained

+it*out proper direction and supervision. e are t*erefore also t*an/ful to our respected

Ma%am )uratulein Mu0ara, ,ecause of +*ose generous co(operation and *elp

t*e accomplis*ment of t*is Pro-ect ,ecame possi,le.

Exe!'ti(e )'&&ar*

In t*is pro-ect +e *ave analy1ed t*e company%s mission and vision and also proposed a ne+

mission statement for t*e company. !n t*e ,asis of secondary researc* +e *ave identified t*e

S!" analysis of t*e company and also prepared t*e five different matrices to identify t*e

strategies +*ic* governed ,y coca cola and +e also give some recommendations a,out t*e

strategies +*ic* coca cola can use in order to compete in t*e mar/et.


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In$'str* +rofile

"*e ,everage industry in Pa/istan *as gro+n over t*e time. "*e industry produces soft drin/s

-uices syrups mil/ and s0uas*es. it* a,out 234 units currently in operation t*roug*out t*e

country ,ot* upstream and do+nstream industries *ave gro+n and are flouris*ing.

"*ere are 56 ,everage plants in t*e country and t*is is one industry +*ic* is very +ell

organi1ed. 7o, oriented in nature t*e ,everage industry employees over 844444 people directly

and indirectly and also supports many ot*er up9do+n stream industries suc* as cro+n cor/s

glass ,ottles plastic s*ells sugar transport advertising and media P.E." ,ottles concentrates

etc. due to t*is industry a *uge num,er of outlets9s*ops are supported to generate +ide(spread

economic activity in t*e country.

Soft drin/s mar/et in Pa/istan is gro+ing rapidly. #nd t*e car,onated category is t*e leader in

t*e soft drin/ mar/et +it* a s*are of :5.3 ;. "*is reflects suc* a *uge mar/et to cater. "*e

,everage industry in Pa/istan *as a lot of potential and room for gro+t* and development. "*ere

e$ist a lot of opportunities for ne+ entrants and local players to e$ploit t*e untapped facets of t*e

mar/et for instance t*e energy drin/ mar/et or -uices ,y strategically positioning t*eir products

and ,y resorting to innovative and effective mar/eting strategies.

#ccording to a recent report on Pa/istani Food and 'everage Industry dated 7anuary


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certain macroeconomics factors certainly do *ave t*e potential to corrode t*is industry%s

profita,ility

Co&,an* +rofile

T-e Co!a Cola Co&,an*

"*e Coca(Cola Company >"CCC? +as first introduced ,y 7o*n Syt* Pem,erton a p*armacist in

t*e year 2@@: in #tlanta eorgia +*en *e concocted caramel(colored syrup in a t*ree(legged

,rass /ettle in *is ,ac/yard. Ae first Bdistri,uted t*e product ,y carrying it in a -ug do+n t*e

street to 7aco,%s P*armacy and customers ,oug*t t*e drin/ for five cents at t*e soda fountain.

Car,onated +ater +as teamed +it* t*e ne+ syrup +*et*er ,y accident or ot*er+ise producing a

drin/ t*at +as proclaimed Bdelicious and refres*ing a t*eme t*at continues to ec*o today

+*erever Coca(Cola is en-oyed.

Dr. Pem,erton%s partner and ,oo/(/eeper Fran/ M. o,inson suggested t*e name and penned

BCoca(Cola in t*e uni0ue flo+ing script t*at is famous +orld+ide even today.

'y t*e year 2@@: sales of Coca(Cola averaged nine drin/s per day. "*e first year Dr. Pem,erton

sold


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Company in t*e year 2


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!ur mission is to ,ring consumers 0uality refres*ments t*at anticipate and satisfy t*eir desires

and needs t*roug* modern tec*nology and inspiring employees to ,e t*e ,est t*at t*ey can

continue to provide t*e ,est products on t*e mar/et.

.ision

e are dedicated to up*olding standards +*ile maintaining t*e leaders*ip position in t*e

,everages category +*en delivering superior customer service in a *ig*ly efficient and profita,le

manner.

'r oals

+eo,le an$ r%aniational /ea$ers-i, 'uild a *ig*ly capa,le organi1ation and ,e t*e

employer of c*oice.

Co&&er!ial /ea$ers-i, Profita,ly deliver superior value to consumers & customers at

t*e optimal cost to serve.

)',,l* C-ain "o ,e t*e ,est in class consumer demand fulfillment organi1ation t*at e$ceeds customer

e$pectations *ig*est in 0uality lo+est in cost in a sustaina,le socially responsi,le manner.

,erational Ex!ellen!e Create a culture of !perational E$cellence to support

continuous improvement of our ,usiness process and systems.

)'stainabilit* Ensure t*e long term via,ility of our ,usiness ,y ,eing proactive and

innovative in protecting t*e environment and ,e recogni1ed as one of t*e most

responsi,le corporate citi1ens ,y all sta/e*olders.

Mi!roen(iron&ent

Entry ,arriers are relatively lo+ for ,everage industry t*ere is almost 4 consumer s+itc*ing cost

and very lo+ capital re0uirement. "*ere are more and more ne+ ,rands appearing in t*e mar/et

+it* usually lo+er price t*an Co/e products. Ao+ever Coca(Cola is seen not only as a ,everage

,ut also as a ,rand. It *as a very significant mar/et s*are for a long time and loyal customers are

not very li/ely to try a ne+ ,rand ,everage. "o analy1e t*e micro(environment and its factors

+e use t*e PorterJs five forces model to identify t*e e$isting industrial factors +*ic* include t*e

follo+ing


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2. "*reat of ne+ entrants


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T-e ar%ainin% +o#er of )',,liers

"*e main ingredients for soft drin/ include car,onated +ater p*osp*oric acid s+eetener and

caffeine. #ny supplier +ould not +ant to lose a *uge customer li/e Coca(Cola

i(alr* a&on% Existin% Fir&s

Currently t*e main competitor is Pepsi +*ic* also *as a +ide range of ,everage products under

its ,rand. 'ot* Coca(Cola and Pepsi are t*e predominant car,onated ,everages and commit

*eavily to sponsoring outdoor festivals and activities. #s Coca(Cola *as a longer *istory it is

advertised in a more classical approac* +*ile Pepsi tried to attract younger generation ,y using

pop stars as ,rand am,assadors. Currently Coca(Cola slig*tly topped Pepsi as t*e possessor of

t*e most G.S mar/et s*are.
http://valuationacademy.com/bargaining-power-of-suppliers/http://valuationacademy.com/competitive-rivalry-among-existing-firms/http://valuationacademy.com/bargaining-power-of-suppliers/http://valuationacademy.com/competitive-rivalry-among-existing-firms/


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)T anal*sis


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)tren%t-s

Finan!iall* stron%

!ne of t*e main strengt*s of CC'P is t*e financial strengt* of t*e company ,ecause it

is supported and controlled ,y Coca Cola International. "*erefore unli/e past no+ t*ey

can start any long term pro-ect +it*out concerning too muc* a,out finances availa,le.

#ccording to Inter,red "*e Coca Cola Company is t*e most valued>H33@5 ,illion? ,rand in t*e +orld. So t*ere is no issue of finance in CC'P.

/o*al C'sto&ers

"*e firm en-oys *aving one of t*e most loyal consumer groups. Coca Cola is en-oying a

positive image in t*e minds of t*e consumers. "*ey normally t*in/ t*at it is ,etter in

0uality as compare to ot*er competitors availa,le in t*e mar/et. .

Most extensi(e be(era%e $istrib'tion !-annel

Coca Cola serves more t*an


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ea"nesses

/ess Fo!'s on )&all Cities

"*e ma-or +ea/ness of t*e company is its distri,ution c*annel. It is one of t*e main

reasons of its slo+ progress and lo+ mar/et s*are in t*is mar/et as compared to t*e

competitor. Due to lac/ of availa,ility of t*e products and less differentiation from

competitors it *as ,ecome very difficult to capture a ,ig mar/et s*are. CC'P o+ns ,ig

s*ares in ,ig cities of Pa/istan ,ut in rural areas it lac/s ,e*ind a lot.

0tiliation of eso'r!es

"*e company is also lac/ing in utili1ation of t*e resources. People are *aving various

facilities ,ut t*ey don%t /no+ t*eir ,est use. For e$ample people +or/ing in fleet

department don%t /no+ to ma/e t*e ,est use of Fleet Management System and usually

performing tas/s in very difficult manner manually t*at can ,e easily performed ,y using

FMS.

ran$ fail'res

Plus t*e firm%s success of introducing ne+ drin/s is +ea/. Eit*er t*ey aren%t mar/eted

+ell or are not launc* after a proper mar/et survey. Many of its introduction result in

failures for e$ample Sprite 5 or Fanta Citrus.

0n$i(ersifie$ ,ro$'!t ,ortfolio

Gnli/e most company%s competitors Coca Cola is still focusing only on selling ,everage

+*ic* puts t*e firm at disadvantage. "*e overall consumption of soft drin/s is stagnating

and Coca Cola Company +ill find it *ard to penetrate to ot*er mar/ets >selling food or

snac/s? +*en it +ill *ave to sustain current level of gro+t*.

)i%nifi!ant fo!'s on !arbonate$ $rin"s

"*e ,usiness is still focusing on selling Co/e Fanta Sprite and ot*er car,onated drin/s.

"*is strategy +or/s in s*ort term as consumption of car,onated drin/s +ill gro+ in

emerging economies ,ut it +ill prove +ea/ as t*e +orld is fig*ting o,esity and is moving

to+ards consuming *ealt*ier food and drin/s.

,,ort'nities


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ottle$ #ater !ons'&,tion %ro#t-

Consumption of ,ottled +ater is e$pected to gro+ ,ot* in Pa/istan and t*e rest of t*e

+orld.

In!reasin% $e&an$ for -ealt-* foo$ an$ be(era%es

Due to many programs to fig*t o,esity demand for *ealt*y food and ,everages *as

increased drastically. "*e Coca Cola Company *as an opportunity to furt*er e$pand its

product range +it* drin/s t*at *ave lo+ amount of sugar and calories.

Enter into ne# &ar"et

# *uge part of t*e mar/et is still +aiting for first entry. Coca Cola can get t*e advantage

of first entry if it focuses on suc* areas.

A(ailabilit* of +ro$'!ts

"*e ,est opportunity for CC'P is to increase mar/et s*are t*roug* increasing t*e

availa,ility of t*e products in t*e mar/et.

T-reats

C-an%es in !ons'&er tastes

Consumers around t*e +orld ,ecome more *ealt* conscious and reduce t*eir

consumption of car,onated drin/s drin/s t*at *ave large amounts of sugar calories and

fat. "*is is t*e most serious t*reat as Coca Cola is mainly serving car,onated drin/s.

/e%al re


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"*e local manufacturers can also distur, t*e mar/et s*are due to t*eir lo+ price offerings.

For e$ample ourmet

'&ors of Co"e bein% 0n:ealt-*

"*e c*anging *ealt*(consciousness attitude of t*e mar/et could *ave a serious effect on

Coca Cola.C+M = CM+ETITI.E +FI/E MATI>

Co!aCola +e,si

Criti!al

)'!!ess

Fa!tors

ei%-t atin% ei%-te

$ )!ore

atin% ei%-te$

)!ore

Mar/et S*are

Price Comp

Financial

Position

Product )uality

Product ines

Customer

oyalty

Employees

Mar/eting

"otal

4.28

4.24

4.2

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