Professional Documents
Culture Documents
Vision Mission
Our vision serves as the framework for our
Roadmap and guides every aspect of our
Our Roadmap starts with
business by describing what we need to
accomplish in order to continue achieving our mission, which is
sustainable, quality growth. enduring. It declares our
People: Be a great place to work where
purpose as a company and
people are inspired to be the best they can
be.
Portfolio: Bring to the world a portfolio of
serves as the standard
quality beverage brands that anticipate and
satisfy people's desires and needs.
against which we weigh
Partners: Nurture a winning network of our actions and decisions.
customers and suppliers, together we
create mutual, enduring value. To refresh the world...
Planet: Be a responsible citizen that
makes a difference by helping build and
To inspire moments of
support sustainable communities. optimism and happiness...
Profit: Maximize long-term return to
shareowners while being mindful of our To create value and make a
overall responsibilities.
Productivity: Be a highly effective, lean
difference
and fast-moving organization.
1.2 Existing Objective
Our objectives is to use our formidable assets
– brands, financial strength, unrivaled
distribution systems, global reach and a
strong commitment by our management and
associates worldwide – to achieve long-term
sustainable growth.
1.3 Strategies
Distributes products through restaurants, grocery markets, street
vendors & others, which sell to the end users.
2006 FIFA – Germany promotes Coke with the “It’s Your Heimspiel –
Make It Real!” campaign.
Introducing new products, innovating packaging & collaborating
with customers.
Acquisition to gain competition advantage. For example: mineral
water company Apollinaris (Germany) and Traficante (Italy).
Apply different kinds of marketing according to region. For example:
Sensitivity marketing in European region.
Increase investment in bottling investments, front-end capability,
equipment, and people/training.
Collaboration with Apple iTunes – involved in a digital program that
focuses on youth.
New Mission Statement
Weaknesses
Inventory turnover decreased by 13.29% 0.090 2 0.180
Return on equity down decreased 0.105 2 0.210
Lack of information and appealing website 0.040 1 0.040
Insufficient supplier time delivery 0.070 1 0.070
Total 1.000 3.050
Financial Ratio
Income Statement
Revenue 24 088 100.0 23 104 100 21 962
Cost of Good Sold 8 164 33.9 8 195 35.5 -
Interest Expense 220 0.9 240 1.0 -
Tax Expense 1 498 6.2 1 818 7.9 -
Income from Cont. Operation 5 080 21.1 4 872 21.1 4 847
Net Income 5 080 21.1 4 872 21.1 -
Balance Sheet
Cash 2 440 8.1 4 701 16.0 -
ST Investments 150 0.5 66 0.2 -
Acc. Receivable 2 704 9.0 2 281 7.8 2 171
Inventory 1 641 5.5 1 424 4.8 1 420
Current Assets 8 441 28.2 10 250 34.8 -
LT Investments 6 783 22.6 6 922 23.5 -
Net Fixed Assets 6 903 23.0 5 786 19.7 -
Other Assets 7 668 25.6 6 469 22.0 -
Total Assets 29 963 100.0 29 427 100.0 31 327
Current Liabilities 8 890 29.7 9 836 33.4 -
Total Liabilities 13 043 43.5 13 072 44.4 -
Stockholders’ Equity 16 920 56.5 16 355 55.6 -
Ratio Analysis
2006 2005 2004
$ in millions % $ in millions % $ in millions
Cash Flow
Cash Flow from Operations 5 957 6 423 5 968
Dividends Paid 2 912 2 697
Interest Paid 220 240
Per Share
Market Price at Year 48.25 40.31
Earning Per Share 2.16 2.04
Ratio Analysis
2006 2005 2004
Growth Ratios
SO WO
Opportunities
1.Entering into snacks business
1. (S1, S3, S5, O1, O3, O4, O5, O6) 1. (O5, W2)
2. (S3, S4, S7, O8, O10) 2. (O8, W3)
ST WT
Threats
1.Hurting product containing sugar & sugar
substitute based drinks
2.Salesman not equipped with sales ordering devices
1. (T1, T4, T5, T8, S3, S5) 1. (T2, T8, W1, W2)
TOWS Matrixcont’d
Increase investment and market for Coca-Cola products &
acquisition will increase profit and return on equity (S1, S3, S5, O1,
O3, O4, O5, O6)
Efficiency of technical support & research enables Coca-Cola to
diversify its products through collaboration with computer network
company (S3, S4, S7, O8, O10)
Continuous increase in demand for Coca-Cola products with
advanced marketing, technical support & research efficiency may
help the company to enter new business & expanding product line.
All the cost will be supported by assets & revenue gained by other
segment and worldwide (O5, W2)
Hire computer expertise to improve website & cell gaming that
indirectly will attract youth attention & hence it will help in
enlarging Coca-Cola market segment (O8, W3)
TOWS Matrixcont’d
Efficiency of research can help in improving the beverages
ingredients so that it can be acceptable by society. In addition, it
also help in producing a healthier products (T1, T4, T5, T8, S3, S5)
As Many of Coca-Cola’s plastic bottles are recycled and as a result
less resources are lost & costs decrease. Through diversification &
innovation in water & juices business supported with aggressive
advertising strategy Coca-Cola Company can attracts a new
market segment. This will mean they will have a higher revenue
increasing long term profitability & improve credit rating (T2, T8,
W1, W2)
SPACE Matrix
Factors Determining Environmental Stability
Technological Changes Many 1 2 3 4 5 6 Few
Rate of Inflation High 1 2 3 4 5 6 Low
Demand Variability Large 1 2 3 4 5 6 Small
Price Range of Competing Wide 1 2 3 4 5 6 Narrow
Products
Barriers into Entry to Market Few 1 2 3 4 5 6 Many
Competitive Pressure High 1 2 3 4 5 6 Low
Price Elasticity of Demand Elastic 1 2 3 4 5 6 Inelastic
ES
Conclusion
ES Average is -2.86 IS Average is 4.38
CA Average is -4.25 FS Average is 3.00
Directional Vector Coordinates: x-axis: -4.25 + 4.38 = 0.13
y-axis: -2.86 + 3.00 = 0.14
European Union
18.66%
INDUSTRY SALES Latin America
GROWTH RATE % 11.7%
Medium 0
Bottling
Investment
10.48% Africa
4%
Low -10
BCG Matrixcont’d
Division ? $ Cows Dogs Strategies
3.
EFE weighted score
0 Ⅳ Ⅴ Ⅵ
Medium
Grow & Build
2.
0 Ⅶ Ⅷ Ⅸ
Low
1.
0 Backward, Forward or Horizontal Integration
Market Penetration
Market Development
Product Development
Matrix Analysis & SWOT Summary
1. Forward Integration 4
2. Backward Integration 4
3. Horizontal Integration 4
4. Market Penetration 4
5. Market Development 4
6. Product Development 4
7. Concentric Development -
8. Related Diversification 2
9. Unrelated Diversification 1
10. Joint Venture -
11. Retrenchment 1
12. Divestiture 1
13. Liquidation 1
Quantity Strategic Planning
AS TS AS TS
Opportunities
1. Expansion by introducing new ready-to-drink 0.05 3 0.15 4 0.20
products
2. Entering into snacks business (Pepsi earns 0.100 3 0.30 3 0.30
60% from snacks)
3. Expansion by taking over Cadbury division 0.050 2 0.10 3 0.15
or product line
4. Entering into or introducing new sports 0.025 4 0.10 2 0.05
events to introduce energy drinks
5. Introduce soft drink with focus of "healthy 0.075 2 0.15 4 0.30
soft drink" – eliminate obesity concept
QSPMcont’d
Key Factors Weight Market Product
Penetration Development
AS TS AS TS
Threats
1.Hurting products containing sugar & sugar- 0.100 - 3 0.30
substitute based drinks (trend towards more
healthy eating & drinking)
2. Increase in raw material costs 0.075 1 0.075 4 0.30
3. Government policies may hurdle in 0.075 4 0.3 1 0.075
expansion 0.075 - 2 0.15
4. Lack in snacks business 0.015 3 0.045 2 0.03
5. Lack of share in homeland market - room for
other brands 0.025 - 2 0.05
6. Availability of purified water (being main
component) in different parts of the world 0.015 3 0.045 3 0.045
7. Competitor may access unreached parts of
the world prior to Coca Cola
QSPMcont’d
Key Factors Weight Market Product
Penetration Development
AS TS AS TS
Strengths