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STRATEGIC MANAGEMENT

PRESENTED BY:
MIR DANIYAL AHMAD KHAN
REHMAN AKRAM.CH
HAROON FAREED
SARDAR YUSUF DURRANI
History analysis
^ In May, 1886, Coca Cola was invented by Doctor John
Pemberton
^ The soft drink was first sold to the public at the soda
fountain in Jacob's Pharmacy in Atlanta on May 8, 1886.
^ Until 1905, the soft drink, marketed as a tonic, contained
extracts of cocaine as well as the caffeine-rich kola nut.
^ Until the 1960s, both small town and big city dwellers
enjoyed carbonated beverages at the local soda fountain or
ice cream saloon.
^ On April 23, 1985, the trade secret "New Coke" formula
was released.
Xision Statement

To maintain our reputation as the leading cola


company in the world.
×      
Everything we do is inspired by our enduring
mission:
^ M ... in body, mind, and
spirit.
^ M  ×   ... through
our brands and our actions.
^ M   ×  ...
everywhere we engage.
Continued
At Coca Cola we believe our main responsibility
is providing customers:
1. With refreshing beverages including soft drinks,
water, energy drinks, juices, and tea.
2. To fit any occasion in their day to day
3. We use the only the most sophisticated
equipment
4. To process and make our products to ensure
each glass of Coke product is as good as the last
Continued
5. Our employees
6. Our signature product, Coke
7. Are fairly compensated and we practice fair
trade in all markets we compete.
8. We value our responsibility to all
communities we serve and support many
educational and leadership programs
Continued
^ Customer
^ Products or services
^ Markets
^ Technology
^ Concern for survival, profitability, growth
^ Philosophy
^ Self-concept
^ Concern for public image
^ Concern for employees
M 
   

^ Bottling Network
^ Advertising Spend
^ Brand Image / Loyalty
^ Retailer Shelf Space (Retail Distribution)
^ Fear of Retaliation
Continued
 
^ Commodity Ingredients


^ Food Stores
^ Convenience Stores
^ Fountain
^ Xending
  
 M 
 
The PEST Analysis is an analysis to examine
the macro-environment of Coca-Cola͛s
operations (Johnson, Scholes and Whittington,
2008).
^ Economic
^ Political
^ Social
^ Technological
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Ô 


^ Bottled water consumption has increased 11 percent.
^ According to the 2 
2
, consumers are drawn to new
smaller beverage brands that are not sold on a mass scale.
^ Less developed countries are in desperate need to improve
community water supplies.
^ Energy drink sales are expected to increase 7 to 8 percent in 2007.
^ Disposable income has increased 6.2 percent.
^ Consumers are striving to drink and eat their way to better health
than pervious generations.
^ EPS is expected to rise 7 to 8 percent in 2007.
Continued
M  
^ Consumption of American beverages is denounced by foreign
officials in areas where conflicting interest exist.
^ Multiple lawsuits against the new Enviga beverage for calorie
burning claims in advertising
^ Overall carbonated drink sales have been flat due to links of sugar
to obesity and high fructose corn syrup to heart disease.
^ Pepsi is more diversified offering beverage and food products.
^ High cost of commodities such as sugar, and metals used in
production of cans.
^ Many smaller companies are fierce competitors around the world in
their local markets.
×    ×  !
!     "#×  !
   
     
 
Continue..
î   
 
(December 2007 in millions)
     "#×  !
M  $ 
 ×  !
Coordinate: (3.6, 2.2)
Continued
©   $
×  !
M  !  "#×  !
©  
6 ×
Continued
   
The QSPM strategies assessed whether acquiring
KKD and GLDC (a potato chip and snack food
company) was a better option than producing a
new diet soda line made form more healthy sugar
alternatives. Both scores on the QSPM are
relatively close and given the financial condition
of KKD and GLDC, it is recommended Coca Cola
undertake both strategic alternatives. The Net
Worth of both companies is provided below. It is
estimated it would cost $200 million to research,
produce and market the new diet drinks.
Continued
 %M 
 
M î&'.

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