Report on Coca-Cola

By
Zainab Usman & Sawera Shabbir
Roll number
F22BMGMTM04015
F22BMGMTM04005
Supervisor
DR. Tasawar Javed
Department of Institute of Business, Management &
Administrative Sciences (IBMAS)
Faculty of Management sciences
Islamia University of Bahawalpur
Pakistan
December 2022
INTRODUCTION
The Coca-Cola Company is an American multinational beverage corporation founded in
1892, best known as the producer of Coca-Cola. The Coca-Cola Company also
manufactures, sells, and markets other non-alcoholic beverage concentrates and syrups,
and alcoholic beverages. The company's stock is listed on the NYSE and is part of
the DJIA and the S&P 500 and S&P 100 indexes.
The soft drink was developed in 1886 by pharmacist John Stith Pemberton. At the time it
was introduced, the product contained cocaine from coca leaves and caffeine from kola
nuts which together acted as a stimulant. The coca and the kola are the source of the product
name, and led to Coca-Cola's promotion as a "healthy tonic". Pemberton had been severely
wounded in the American Civil War, and had become addicted to the pain
medication morphine. He developed the beverage as a patent medicine in an effort to
control his addiction.
In 1889, the formula and brand were sold for $2,300 (roughly $71,000 in 2022) to Asa
Griggs Candler, who incorporated the Coca-Cola Company in Atlanta in 1892. The
company has operated a franchised distribution system since 1889.[3] The company largely
produces syrup concentrate, which is then sold to various bottlers throughout the world
who hold exclusive territories. The company owns its anchor bottler in North America,
Coca-Cola Refreshments.

(The Coca-Cola Company, 2020.)

VISION STATEMENT
Inspiring each other to be the best we can be by providing a great place to work.

MISSION STATEMENT
To refresh the world in mind, body, and spirit, to inspire moments of optimism and
happiness through our brands and actions, and to create value and make a difference.

(Coca Cola Mission and Vision Statement Analysis, n.d.)

Components of mission statement

 Concern for public happiness

 Make difference from the competitors
 Concern for brand image
SWOT ANALYSIS OF COCA-COLA
Strengths

 Coca cola is the world’s most valuable brand

 Broad verity of products
 Coca cola is the leader brand of global soft drink industry
 High market share
 Heavy advertisement
 Coca cola enjoys customer loyalty

Weakness

 Pepsi gave coca cola a tough time to a great extent over market share.
 Coca-Cola company’s soft drinks contain chemicals that are harmful to health.
 Coca-Cola has only made the beverage products they have not made any other
product like food etc.
 Coca-Coca has not focused on making healthy products.

Opportunities

 The Company can target health conscious consumers.

 A lot of customers can be captured by linking up with a food company.
 It can compete PepsiCo by expanding their product line. Like introducing some
snacks.
 To improve the supply chain, Coca-Cola can deliver its product to countries where
Coca-Cola products are not yet available.
 The expansion of Kinley has not yet reached the level of Bisleri. it can increase its
business by improving packaged drinking water.

Threats

 In today’s age people are less using soft drinks due to health concerns.
 There are many alternative of Coca-Cola which are available at lower rates.
 A huge competition with Pepsi etc.
 Increasing prices of sugar and other materials
 Increasing demand of chemical fee beverages

(Coca Cola SWOT Analysis, n.d.)

PESTEL ANALYSIS OF COCA-COLA
PESTEL analysis of a company shows how the factors like politics, economy, sociology,
technology, environment, and law can accelerate or decelerate the development of a
company. Though Coca-Cola is one of the biggest beverage companies operating their
business in more than 200 countries, it gets influenced by these external factors

Political Factors

Political factor can affect the business condition of company. If the political situation of
any country changes, everything in that country changes in a positive or negative aspect.
Here a few political conditions which can affect the business of Coca-Cola.

 If there is any change in taxes, or any labor force it can affect the sales of Coca-
Cola.
 If the government supports any of its favor able product it can affect Coca-Cola
sales.
 Business relationships with other countries can also affect Coca-Cola sales for
example, due to the trade relation between Burma and the US, Coca-Cola cannot
sell its product in Burma.

Economic Factors

Most companies are dependent on the nation's economic conditions to determine how much
they should invest in the country. Even when a country has a good trade relationship, its
economic stability can be another factor to consider. Otherwise, the company may fail to
earn profit and fail to develop. The PESTEL analysis of Coca Cola shows how economic
conditions can impact the sales of the company

 Many companies started the carbonated drink business as a competitor of Coca-

Cola. But the loyal customers still purchased Coca-Coca which can help company
to survive in competitive market.
 Rising costs of beverage raw materials and trade deals with suppliers can affect
company’s business.

Social Factors

When a company does a business in a particular area, their socio-cultural condition

significantly impacts the company. They need to come to terms with the issues to run a
business smoothly. Otherwise, the company may fail to interest more customers. Here are
a few sociological scenarios that can work upon the development of Coca Cola
  The Coca-Cola company primarily deals with carbonated drinks. While many
health conscious people switch to alternatives like Coke zero which can target
health conscious consumers.
 Coca-Cola has spread its business in many countries. Coca-Cola needs to focus on
these countries. They have already introduced more than 30 different flavors in
Japan. These experimental flavors can be helpful for them to gain more consumers.

Technological Factors

Though technological issues do not directly impact the growth of beverage brands, there
are certain other conditions related to technology that can indirectly affect them. The
PESTEL analysis of Coca Cola can give an idea about how technical issues can impact the
brand’s business

 The company need research to develop its product. The more they invest in
developing infrastructure, the better research will be possible.
 Nowadays, many people use smart phones, companies can use social networking
to promote and market their company.

Ecological Factors

For beverage companies, ecological issues may have a brand awareness-related impact.
The PESTEL analysis of Coca Cola can show how ecological issues impact their business

 The Company needs eco-friendly packaging; they can change the plastic bottle
to another material that can be easily recycled.
 Companies can improve their brand impression by using innovative waste
management practices.
 The company has been using water-smart farming methods like RAIN and
CARE. It has helped them to interest people who are concerned about the
environment.

Legal Factors

The legal issues may not have a direct impact on the brand’s business. However, they can
show some indirect influence. Here are some legal conditions that can affect the brand’s
development

 Many countries have already issued a range for sugar usage in beverages. As Coca-
Cola has a wide area of services, they need to consider it. Failing to do so may result
in legal prosecution.
  The caffeine quantity in any beverage is fixed for most countries. Coca-Cola has
previously suffered for its excessive caffeine content and had to pay for the
lawsuits.
 The company should take care of employment ethics If they do not provide healthy
working conditions to the labor, they can face legal problems.

(Coca Cola PESTEL Analysis, n.d.)

IFE (INTERNAL FACTOR EVALUATION)

Internal Factor Evaluation (IFE) matrix is a strategic management instrument for assessing
main strengths and weaknesses in useful areas of a company. IFE matrix also gives a
foundation for recognizing and assessing associations among those parts. The IFE matrix
is utilized in strategy formulation. An example of internal factor evaluation matrix is given
for the Coca-Cola Company.
 Ife matrix of Coca-Cola

Internal factor evaluation Weight Rating Weight

score

Strengths

 Coca cola is the world’s most valuable brand 0.10 4 0.4

 Broad verity of products 0.10 4 0.4

 Coca cola is the leader brand of global soft drink 0.09 4 0.36
industry

 High market share 0.09 4 0.36

 Heavy advertisement 0.10 4 0.4

 Coca cola enjoys customer loyalty 0.12 4 0.48

Weaknesses

 Pepsi gave coca cola a tough time to a great 0.09 1 0.09

extent over market share.

 Coca-Cola has only made the beverage products 0.12 1 0.12

they have not made any other product like food
etc.

 Coca-Coca has not focused on making healthy 0.10 1 0.1

products

 Coca-Cola company’s soft drinks contain 0.09 2 0.18

chemicals that are harmful to health.

Total 1 3.7

The Coca-Cola Company's total weighted score is higher than average, indicating that the
company is internally strong.

(IFE Matrix of Coca-Cola Company, 2010)

EFE (EXTERNAL FACTOR EVALUATION)
A strategic management tool that is frequently used for evaluating the current business
environment is the External Factor Evaluation (EFE) matrix. To priorities and visualize the
opportunities and threats that a company is facing, the EFE matrix is a superior tool. The
EFE Matrix includes social, political, legal, economic, and other external forces as external
factors. For the Coca-Cola Company, an example of an external factor evaluation (EFE)
matrix is provided.

Efe Matrix of Coca-Cola

External factor evaluation Weight Rating Weight

score

Opportunities

 The Company can target health conscious 0.10 4 0.4

consumers.

 A lot of customers can be captured by linking up 0.12 4 0.4

with a food company.

 introducing some snacks. 0.10 4 0.4

 To improve the supply chain 0.10 4 0.4

 improving packaged drinking water. 0.09 4 0.36

Threats

 In today’s age people are less using soft drinks 0.10 3 0.3
due to health concerns.

 There are many alternative of Coca-Cola which 0.09 2 0.18

are available at lower rates.

 A huge competition with Pepsi etc. 0.12 1 0.12

  Increasing prices of sugar and other materials 0.09 3 0.27

 Increasing demand of chemical fee beverages 0.09 2 0.18

Total 1 3.01

In the case of Coca-Cola Company, the total weighted score is above average, indicating
that the company's strategies are effective and that it is capitalizing on existing
opportunities while mitigating the potential negative effects of external threats.

(EFE Matrix of Coca-Cola Company, 2010)

COMPETITIVE PROFILE MATRIX OF COCA-COLA
A competitive profile matrix (CPM) classifies a firm's main competitors as well as its
specific strengths and weaknesses in relation to the strategic position of a design firm. In a
Competitive Profile Matrix, an organization evaluates itself as well as its competitors by
assigning ratings and weights to critical/key success factors. It then recognizes its strategic
competitive position in relation to its major rivals. A company with more weighted points
than its competitors will have a stronger competitive position. The following is the
construction of a competitive profile matrix for the Coca-Cola company

Coca-Cola Pepsi Cadbury

Key success Weight Rating Weighted Rating Weighted Rating Weighted

factor score score score

Financial 0.08 4 0.32 3 0.24 3 0.24

Position

Advertising 0.12 4 0.48 4 0.48 3 0.36

Market Share 0.12 4 0.48 3 0.36 2 0.24

Brand Image 0.10 4 0.40 4 0.40 3 0.30

Customer 0.10 3 0.30 3 0.30 2 0.20

Loyalty

Product 0.12 4 0.48 4 0.48 4 0.48

Quality

Product Range 0.08 3 0.24 4 0.32 3 0.24

Distribution 0.10 4 0.40 3 0.30 3 0.30

Price 0.08 3 0.24 3 0.24 3 0.24

Completion

Geographical 0.10 4 0.40 3 0.30 2 0.20

Expansion

Total 1.00 3.74 3.42 2.80

This Matrix also shows that Coca-Cola is strong in all aspects of rivalry and has a strong
market position.

(Competitive Profile Matrix of Coca-Cola, 2010)

SWOT MATRIX OF COCA-COLA
Strengths –S Weakness – W

 World’s most valuable  Pepsi gave coca cola a

brand tough time.
 Broad verity of  Soft drinks contain
products chemicals.
 Leader brand  Only made the
 High market share beverage products
 Heavy advertisement  Not focused on making
 Customer loyalty healthy products.

Opportunities – O SO – Strategies WO – Strategies

 Can target health  Can do food business  Soft drinks contain

conscious consumers. using customer loyalty chemicals and can
 Captured customer by  Can expand their target customers by
linking up with a food product line through creating a new product
company. advertising. for health conscious
 Expand their product  Coca-Cola is a leading people.
line. brand; they can reach  They only make
 To improve the supply their supply to countries beverage products, they
chain. where it has no access. can link to food
 Improving packaged companies or make
drinking water. their own food
products.

Threats – T ST– Strategies WT – Strategies

 Health concerns.  They can compete  The company can

 Alternatives available Pepsi using their eliminate the threat of
at lower rates. customer loyalty. health concern by
 A huge competition  Coca-Cola has a high eliminating the
with Pepsi etc. market share they can weakness of chemicals
 Increasing prices of reduce increasing prices in its soft drink.
sugar and other threat.  The company can
materials mitigate the threat of
 Increasing demand of increasing demand for
chemical free beverages beverages by focusing
on healthy products
SPACE MATRIX OF COCA-COLA
Internal Strategic position External Strategic position

Competitive position Industry Position

-1 Market Share +5 Growth Potential

-1 Brand Image +6 Resource utilization

X Axis

-2 Customer loyalty +6 Financial stability

-1 Product life cycle +4 Profit potential

-2 Control over supplier +5 Ease of entry

-2 Technological know-how +4 Consolidation

Average -1.5 Average +5

Total X axis score +3.5

Financial Position Stability Position

+5 Working Capital -1 Technological changes

+6 Liquidity -4 Competitive pressure

Y Axis

+5 Net income -2 Inflation rates

+6 Return on investment -2 Barriers to entry

+4 Leverage -1 Price elasticity of demand

+4 Return on assets -1 Demand Variability

Average +5 Average -1.83

Total Y axis score +3.17

Total score of x axis is +3.5

Total score of y axis is +3.17

BCG MATRIX OF COCA-COLA
Question Marks

Question marks are products that are still in development and have not yet received a strong
response from the market. They have only achieved a small market share so far, and there
is still a lot of risk involved in investing in them. They could either become very successful.

Coca-Cola is branching out into new, healthy product lines including Diet Coke, Smart
water, Honest Tea, Sparkling Water, and Minute Maid. They are investing heavily in these
products in order to raise awareness and grow the healthy non-carbonated drinks market.
As these products are relatively new, they are considered question marks for the company.

Stars

A company's products with low growth and market share and no promising growth chances
are called dogs.

Coca-Cola Watered bottle comes in star products Coca-Cola has two water products Kinley
and Dasani. Kinley is offered in Europe market while Dasani is popular in U.S market. If
the healthy water product is expanded Coca-Cola take advantage from this product. And
they gain high market share.

Cash Cow

Cash cows are products that have low growth markets but high market share. As we can
see Coke is a market leader in carbonated soft drink industry. And Coke generates a lot of
revenue for the company. They have been around the world for years. Coke is a cash cow
for the Coca-Cola company.

Dogs

A company's products with low growth and market share and no promising growth chances
are called dogs. Management does not look at such products and invest money in it because
it has no profit or less chance of profit. We can see Coca-Cola has a product which is now
decreasing in demand which is carbonated soft drinks while demand of healthy products is
increasing however Coke is a cash cow, can become a low market share.

(Coca Cola BCG Matrix Analysis, 2022)

IE MATRIX OF COCA-COLA

3.0-4.0 Strong 2.0-2.99 Average 1.0-1.99 Weak

THE EFE TOTAL WEIGHTED THE IFE TOTAL WEIGHTED SCORES

High I II III
3.0-4.0
SCORES

Medium IV V VI
2.0-2.99

Weak VII VIII IX

1.0-1.99
The internal-external matrix consists of 3 quadrants. I, II, IV which is grow and build. III,
V, VII which is hold and maintain. VI, VII, IX which consist of harvesting and diver
sting. The EFE weighted score is 3.01 with similarity in the IFE weighted score is 3.7.
Coca-Cola falls in quadrant I with a strong high growth.

References
Coca Cola BCG Matrix Analysis. (2022, March 14). Retrieved from
https://www.edrawmax.com/article/coca-cola-bcg-matrix-analysis.html
Coca Cola Mission and Vision Statement Analysis. (n.d.). Retrieved from https://mission-
statement.com/coca-cola/
Coca Cola PESTEL Analysis. (n.d.). Retrieved from https://www.edrawmax.com/article/coca-
cola-pestel-analysis.html
Coca Cola SWOT Analysis. (n.d.). Retrieved from https://www.edrawmax.com/article/coca-cola-
swot-analysis.html
Competitive Profile Matrix of Coca-Cola. (2010, Nov 15). Retrieved from https://mba-
lectures.com/management/principles-of-management/1091/competitive-profile-matrix-
of-coca-cola.html
EFE Matrix of Coca-Cola Company. (2010, Nov 15). Retrieved from https://mba-
lectures.com/management/strategic-management/1094/efe-matrix-of-coca-cola-
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IFE Matrix of Coca-Cola Company. ( 2010, Nov 15). Retrieved from https://mba-
lectures.com/management/strategic-management/1097/ife-matrix-of-coca-cola-
company.html
The Coca-Cola Company. ( 2020., February ,September 5, 24). Retrieved from "2019 Annual
Report (Form 10-K)"