Question

Review the critical external and internal environmental factors that have strategic implications in the future for Coca Cola1. Are Coca Cola recipients or creators of the market for their products? Why? How is this factored into the decisions of each firm?2. What recommendations can you make to the task force to enhance the effectiveness of Coke's strategy or change the strategic approach for better results?

Answer 1

Answer with Explanation:

Requirement 1.

First of all we will do SWOT analysis to develop an understanding of the company.

The Strengths of Coca Cola are as under:

• Great brand recognition worldwide
• Highly valued company worldwide
• Operational in 200 countries across the globe
• Largest market share in cold beverages
• Huge Customer Fan
• So many acquisition in last 10 years

The weaknesses of the company are as under:

• Less diversified products
• Not recommended by the doctors because of its adverse impact on health.
• Well known for its environmental issues which includes devastating effect on environment, violation of worker's rights in many countries, usage of water in different communities is so much high that it effects the local farmers.
• Aggressive competition with Pepsi has effected Coca Cola business operations and profits.

The opportunities that must be exploited by the Coca Cola company are as under:

• Diversification of products will help the company to grow its market share and improved profits.
• Specially focus on sales and marketing department in countries which are near the equator because the consumption of cold drinks here is more than countries with cold climate.
• Package beverages with environmentally friendly material to abandon single use plastic.
• Improving Supply chain management will increase benefits drawn because of its presence in almost 200 countries.

The threats that Coca Cola faces is as under:

• Environmental Issues which includes use of single use plastics, water controversy, etc.
• Raw material resourcing uncertainty
• Indirect competitions which includes thousands of Local players in different states across the globe.

Requirement 2.

No doubt they are the creators of the market. They set principles for aggressive marketing that was very helpful in gaining market share due to product design that encourage customer to buy, Brand design, Logo and Font, Simplicity of bottles, etc.

These factors are incorporated in each firm's decision making programs and is the reason why it enables the product acceptance by a wide majority of customers. Though the marketing strategy for every single product is different and is largely dependent on the location and availability of the product.

Requirement 3.

Following are some recommendations to Coca Cola Company:

• Coca Cola Company must step into food market not because it would help in managing its supply chain but it will also help in building a more diversified product ranges.
• Infrastructure development which would include franchises of Coca cola that will help it to develop McDonald's like offerings of it own that only offers Coca Cola products. This will increase the market share of Coca Cola company increase its brand recognition as well. Furthermore, it can also add value to its franchises by use of special offers that would increase its franchise sales.
• The company must resolve its environmental issues to increase its share value as nowadays Dow's and S & P adds value to market price of shares of companies that are environmental friendly.
• Marketing and distribution team of gulf countries must be given additional budget to increase their sales as their is great demand of products here.
• Coca cola must introduce health benefiting drinks that they can recommend children to taste as frequent consumption of cold drinks are not recommended by the doctors.