Anda di halaman 1dari 40

Business Strategy

Individual Assignment

Acknowledgement

I would like to express my deepest appreciation to all those who provided me the possibility
to complete this report. In performing my assignment, I had to take the take help and
guideline of some respected persons, who deserve my greatest gratitude.
I would like to show my gratitude Ms. Dulanga for giving me a good guideline for
assignment throughout numerous consultations. I would also like to expand my deepest
gratitude to all those who have directly and indirectly guided me in writing this assignment.
I thank my family members and my friends for their help, directly and indirectly to complete
my assignment.

Batch 61

39

Business Strategy

Individual Assignment

Executive Summary
In this report for the first question explain the strategic context and mention the Coca-Cola
Company strategic context. After that explain the stakeholder analysis of the Coca-Cola
Company. For organizational audit include the value chain and VRIO framework. PEST
analysis and five forces analysis include the environmental audit. After doing these things
explain the SWOT analysis for the coca cola company.
Next describe the different planning technics for the organization and after that using the
product life cycle, BCG matrix and GE matrix relevant to the Coca-Cola Company.
Then discuss the criticism of strategic planning. After that include the Ansoffs growth
strategies and backward and forward integrations. Next explain the future strategy for the
Coca-Cola Company.
After doing above, things explain the roles and responsibilities for strategy implementation
and resources requirements for the new strategy. Finally create the timescale.

Batch 61

39

Business Strategy

Individual Assignment

Table content
Content

Page number

Acknowledgement.1
Executive summary .......2
Introduction......................................................................................................................................
Task 01 Report........................................................................................................................6
(LO 1.1) Strategic context...............................................................................................................
(LO2.3) Stakeholder analyzing........................................................................................................
(LO2.1) Organizational audit.........................................................................................................
Porters Value Chain for Coca Cola Company..............................................................................
VRIO Framework..........................................................................................................................
(LO 2.2) Environmental audit........................................................................................................
PEST analysis................................................................................................................................
Porters five forces analysis...........................................................................................................
SWOT analysis for Coca Cola Company......................................................................................
(LO1.3) Different planning techniques..........................................................................................
Product life cycle...........................................................................................................................
BCG Matrix...................................................................................................................................
GE Matrix......................................................................................................................................
(LO1.2) Criticisms of strategic planning.......................................................................................
(LO 3.1) Ansoffs Growth Strategies.............................................................................................
(LO3.2) Future strategy for the Coca Cola Company...................................................................
(LO4.1) Roles and responsibilities for strategy implementation...................................................
(LO4.2) Resources requirements for new strategy (Water purification system)...........................
(LO4.3) Time scale to monitor the strategy...................................................................................
Conclusion................................................................................................................................38
References................................................................................................................................39
Batch 61

39

Business Strategy

Individual Assignment

List of Figures
Figure

Page Number

Figure 01 Stakeholder analyzing9


Figure 02 - Porters Value Chain11
Figure 03 - VRIO framework5
Figure 04 - PEST analysis6
Figure 05 - Porters five forces analysis9
Figure 06 - BCG Matrix5
Figure 07 - GE Matrix6
Figure 08 - Ansoffs Growth Strategies9
Figure 09 - Ansoffs Growth Strategies for Coca Cola2
Figure 10 - Time scale7

Batch 61

39
IV.

Business Strategy

Individual Assignment

Introduction

In this assignment describe the strategies of the Coca-Cola Company. Because of this module
can understand important of the business strategies for the organizations. These things are
helping us to applying things into working life.it also help to improve strategies and
removable things. Improving new strategies to the organization can increase the sales also.

Batch 61

39

Business Strategy

Individual Assignment

Task 01 Report
(LO 1.1) Strategic context
Mission
Mission statement is a present-based statement. It helps to the organization to go to the
correct path. It describe organizations function, goals, and also described what types of
organizations and reason for the being. For many organizations mission statement include
present situation and purpose of the organization. A Clear mission statement helps to
employees for understanding the organizational decisions, changes, and resource allocation.
In the minimum of the mission statement should defined what the primary customers of the
organization are, product and services and the geographical location in operating.
The Coca-Cola Company Mission
Our mission is:

To refresh the world in mind, body and spirit

To inspire moments of optimism and happiness through our brands and actions

To create value and make a difference. (coca cola journey, 2015)

Vision
A vision statement is a future-based statement. It describes where the organization goes to the
next future time period.
Simple can say, vision is a dream and mission are the paths to achieving the dream.
The Coca Cola Company Vision
To achieve our mission, we have developed a set of goals, which we will work with our
bottlers to deliver:
People: Inspiring each other to be the best we can be by providing a great place to work
Portfolio: Offering the world a portfolio of drinks brands that anticipate and satisfy people's
desires and needs
Partners: Nurturing a winning network of partners and building mutual loyalty

Batch 61

39

Business Strategy

Individual Assignment

Planet: Being a responsible global citizen that makes a difference by helping to build and
support sustainable communities
Profit: Maximizing long-term return to shareholders, while being mindful of our overall
responsibilities
Productivity: Being a highly effective, lean and fast-moving organization. (Coca cola journey,
2015)

Objectives
Organizational members often work to achieve several overall accomplishments, or goals, as
they work toward their mission.
There is two type of objectives.
i.

Primary objectives

Primary objectives mean main objectives that organization having.


Ex:

Make a profit
Supply good products and services for the consumers

ii.

Secondary objectives

These are not main objectives but without these objective organization can't ran smoothly.
Ex:

Maximizing the sales


Increase the market share
Cost cutting method
Product expansion
Product differentiation

The Coca Cola Company objectives


The main objectives for the Coca-Cola Company are to be globally known as a business that
conducts business responsibility and ethically and to accelerate sustainable growth to operate

Batch 61

39

Business Strategy

Individual Assignment

in tomorrow's world. By having these objectives, it forms the foundation for companies in the
decision making process. (Coca cola journey, 2015)
Goals
Organization goal means strategic objectives that organization management established for
guide employees effort. It is an aim of the organization. As an example for the goals, increase
the profits, established more branches and supply good customer care for the consumers.
Core competencies
The mean of the core competencies is the combination of pooled knowledge and technical
capacities that allow a business to be competitive in the marketplace. (Investopedia, 2015)
The Coca Cola Company Values
Our shared values guide our actions and describe how we behave in the world:
Leadership: The courage to shape a better future
Collaboration: Leverage collective genius
Integrity: Be real
Accountability: If it is to be, it's up to me
Passion: Committed in heart and mind
Diversity: As inclusive as our brands
Quality: What we do, we do well (Coca cola journey, 2015)

Batch 61

39

Business Strategy

Individual Assignment

(LO2.3) Stakeholder analyzing


Stakeholder analyzing helps to understand the situation of the organization and also
community can understand stakeholders roles and responsibilities.
The Coca-Cola Company stakeholders can clarify like as, employees, customers, consumers,
bottlers, suppliers, partners, nonprofit organizations, communities, government, and
shareholders.
Each and every stakeholder has their own roles and responsibilities.
These are prioritize of Coca Cola Company stakeholders.
Figure 01 Stakeholder analyzing

High power
High interest

High power
Low interest

Government
Customers
Media

Shareholders
Investors
Analysts
High

Low power
High interest

Employees
Managers
Staff

Community
Low power
Low interest

L
Low

According to this prioritize matrix, we can identify the influence of the stakeholders.
Shareholders, investors, and analysts have more power influence for the Coca-Cola
Company. According to this prioritize chart above stakeholders are comprising the high
power (influence) and high-interest category. Because they doing most important function in
the Coca-Cola Company such as Annual General Meetings, quarterly roadshows and results
briefings, webcasts, ongoing dialog with analysts and investors. (Coca-Cola Hellenic, 2014)

Batch 61

39

Business Strategy

Individual Assignment

These category is the people company must fully engage and make the greatest efforts to
satisfy.
Under the high power (influence) and low interest categorize include government, customers,
and media. Customers can contribute for the research held by Coca-Cola Company and they
can give ideas about products. According to their ideas and comments company, can improve
their products. Effect of government can be good or bad. Because taxation and interest rates
are created by the government and also foreign investment advisory councils are held by the
government. Media is helping the company for advertising. Because of advertising by media,
consumers are attractive for the coca cola product.
Employees, managers, and staff include by low power (influence) and high-interest category.
According to their commitment company, can increase their sales. The Coca-Cola Company
clarify their employees, managers and staff activities such as engagement and values index
surveys, quarterly CEO business updates, annual Leadership Conference, employee
communications, individual development plans, health and safety communications programs,
community and active lifestyle projects, Employee Works Council, whistleblower hotline.
(Coca-Cola Hellenic, 2014)
Finally, the community is including, low influence and low-interest category. This category
can`t directly effect for the company. But they can influence very little for the company.
According to the definition of the Coca-Cola Company their role and responsibilities like
this; plant visits, community meetings, partnerships on common issues, sponsorship
activities, lectures at universities.
According to another way we can divide this stakeholders in a two method.
i.

Internal stakeholders

This stakeholders can effect directly for the company. The coca cola company should
satisfied these stakeholders because they are very important for the company. Managers,
employees, shareholders, bankers, suppliers and customers are include the internal
stakeholders.
ii.

Batch 61

External stakeholders

39

Business Strategy

Individual Assignment

This stakeholders can`t effect directly for the organization. But these also important for the
organization and organization should consider about this stakeholders. Government and
media include this external stakeholders category.

(LO2.1) Organizational audit


For the organizational audit explain about the, value chain and VRIO framework.
Porters Value Chain for Coca Cola Company
Value chain explains the activities of the firms. In here described Porters value chain and this
method was introduced by Michael Porter in 1985. He focused on the system of the firm and
also how inputs are changed into the outputs purchased by consumers. (Mind tools, 2015)
After preparing the value chain for a company, we can identify how the company situation is
and also how company management running the company. After knowing these things,
company can attract the customers from their products.
Figure 02 - Porters Value Chain
Organization
Support

Human resources

activities

Technology
Purchasing

Primary

Inbound

activities

Logistics

Operations

Outbound

Marketing &

logistics

sales

Services

Primary activities
These primary activities are most important to the organization because these are directly
related with the organizational activities. Inbound logistics, operations, outbound logistics,
marketing & sales, and services are included the primary activities.

Batch 61

39

Business Strategy

Individual Assignment

Inbound Logistics
Suppliers - Coca-Cola Company finds resources such as ingredients, packaging and
machinery within the suppliers. Their main suppliers are Spherion, Jones Lang LaSalle, IBM,
Ogilvy and Mather, IMI Cornelius, and Prudential. Company consider the quality of the
materials and this material havent good quality and suppliers not given materials on time,
Coca-Cola Company has the right to terminate their contract with these suppliers.
Raw materials Coca-Cola Company used sweeteners, carbon dioxide, plastic bottles, cans,
closures and other packaging materials for their raw materials. Their raw materials are mainly
divided by into two parts such as nutritive and non-nutritive sweeteners. For nutritive
sweetener, they used high fructose corn syrup and form of sugar. For non-nutritive
sweeteners, they used potassium, saccharin, and sucralose. For the raw materials Coca-Cola
Company used 6% renewable materials, 64% virgin materials and 30% recycled materials.
Operations
Syrup production The Coca-Cola Company main operation is prepared the syrup. For this
operation, they used pure refined sugar is mixed with filtered drinkable water. This is the very
simple step and after made this they mix their secret concentrate and make coca cola
beverage.
Bottling operations In 2011, Coca Cola Company introduced Plant Bottle-the first-ever
fully recycle PET plastic bottle made partially from plants and now they looking at how it
will make a bottle that is 100% made from plants.
Distribution networks After bottling, it goes to the distribution networks. Coca-Cola
Company give their product for the distributors and they distribute about retail stores all
around the world. Distribution network distributes in two type such as liquid coke and bottled
coke. Liquid coke bottling in the relevant country. As an example in India, they used this
method.
Sales and marketing activities They doing customer satisfaction surveys and by
developing innovative materials for retail sales activation, including new tracks, point-of-sale
visuals and sales aids for their customers.
Outbound logistics

Batch 61

39

Business Strategy

Individual Assignment

Stores Every company of the world they need to stores for stock their product. This stores
should be good quality and also the technology. This situation is common for the coca cola
company. Otherwise, their beverage may not be good quality. The coca cola company stores
have a cooler system for keeping them.
Transport The coca cola company has more than 200,000 vehicles for delivering to the
coca cola product all around the world. (Coca cola journey, 2015) They used high technology
for this vehicles for keeping these products in good quality. For transport to the international
market, this company used airplane and ships.

Marketing & sales

Advertising Coca-Cola Company has most of the advertising method. They mostly used
television advertisements. They made them like as very colorful type and these
advertisements can attractive the customers. For preparing advertising, they used advertising
icons such as famous persons, different colors, festivals, and animals. Humble Trailblazer is
an example for the first African-American woman who in appear for the coca cola company
advertising.
Promotions Coca-Cola Company gives different types of promotions. Company give
rewards such as coca cola branded calendar door plate, tech stylus pen, coaster, and
backpack, and also gift vouchers, aquarium entry ticket for the winners of the competition.
For doing these things, they can attractive consumers for the coke products.
Customer value The coca cola company want build up a relationship with customers and
company want give value beyond the beverage. So, for their customers include international
chains of retailers and restaurants. The coca cola company try to improve their sales and
profits, reduce the cost. For doing these things, coca cola company hope to attract their
customers and give additional value for them.
Services According to coca cola company services, we can find information via coca cola
company web page. They provide all the information such as product information, product
quality, packaging, and products promotion of the coca cola products. They provide contact
us web page foe asking the question from the company. For do this they provide a virtual
agent for ask question. And also they provide FAQs (Frequently Asked Question) facility for
finding information and it most helpful.
Batch 61

39

Business Strategy

Individual Assignment

Support activities
Human resources Every company does recruit, hiring, and training, developing and
compensating all the employees of the company. For the coca cola company provide training
for their employees all around the world. To improve their employees knowledge they give
scholarship and study leave. To preserve the psychological health from the employees, Coca
Cola Company organized different events such as annual trips and get-to-gather parties.
For hiring new employees company making new planning and they focus on their employee
to changes the new technology. First they HR department of the coca cola company advertise
about new job opportunities in newspapers and company website. After getting applications,
they do short listed and then they held the interview and recruit the new employees. They
held on internal and external recruitment. After recruiting they training their new employees
in 3 months with the salary. After that new employees are part of the coca cola company.
Technology coca cola company used new technology and it helps to them compete with
other competitors. They using technology in different ways. One of the methods is they used
online advertising for advertising their products. This advertises they prepare very interesting
ways. Social media is another way they used technology. According to this social media,
they can identify consumers feeling about the coke products. Greener bottles and packaging
is the project that they used technology in huge capacity. In this technology, they used less
petroleum for produce bottles and packaging.
Organizational policies The coca cola company policies they made according to their
employees welfare. Because their human resources statement made according to the
Universal Declaration of Human Rights and it is guided by the United Nations Declaration of
Human Rights. The coca cola company respect all the human rights and they follow these
things.
Because of their Workplace Rights Policy they believe business depend on the commitment
of the employees. And also for the other policies they have a minimum age limit for avoiding
the employ labor child. Provide a safe and healthy workplace to the employees, protect the
environment and give an offer to the employees to develop their skills are the responsibilities
of the coca cola company.
The coca cola company have qualified persons for control the company. They have educated
persons for their managerial posts. Because of this qualified employees company can easily

Batch 61

39

Business Strategy

Individual Assignment

reach their vision, mission and target. So skilled employees are most important part of the
coca cola company.

VRIO Framework
This framework was developed by B. Barney and VRIO framework is a tool use to analyze
from internal resources and capabilities include continues on through objectives, internal and
external analysis and strategic choices. If any company made this framework they can
introduced what are the resources and capabilities they have. After that, they can improve
their resources and capabilities. And also community can identify the company performance.
VRIO has a different meaning and it explain important factors. For identify these meaning we
can ask different types of questions.
V Valuable - How expensive is the resource? And also we can ask, how easy is it to obtain
on the market?
R- Rare Here include things are unique for the organization. How rare or limited is the
resource?
I Imitability - How difficult is it to imitate the resource?
O Organization - Is the resource supported by any existing arrangements and can the
organization use it properly?
(Management Mania, 2013)
VRIO framework for the Coca Cola Company

Figure 03 - VRIO framework


Valuable
Brand name
Skilled people
Finance situation

Rare
Brand name
Patent
Advertising method

Worldwide

Promotions

distribution network
Customer value

Customer value

Batch 61

Imitability
Technology
Skilled people

Organization
Management system
Managing resources
Organizational
policies
Finance situation

39

Business Strategy

Individual Assignment

(LO 2.2) Environmental audit


In this learning, outcome explains the PEST analysis and Porter`s five forces analysis. After
analyzing these things, explain about SWOT analysis for the coca cola company.
PEST analysis
PEST analysis includes the macro environment analysis. This analysis describes about, P for
political and legal, E for economic, S for social cultural and T for technology. This analyzes
helps to understand market growth, business position, potential and direction for operations.
The company can used PEST analysis for business and strategic planning, marketing
planning, business and product development and also research reports.

Batch 61

39

Business Strategy

Individual Assignment

Figure 04 - PEST analysis

Technology

Political
and legal
forces

PEST
Analysis

Social

Economic

Political and legal forces


The coca cola company is a beverage company. So it wants permission from the Food and
Drug Administration (FDA). Following are some of the rules and regulation for influencing
for the coca cola company.

Changes in laws and regulations

The coca cola company is a multinational company. So this company has to face most of the
rules and regulations from the different countries. This rules can change such as accounting
standards, taxation requirements include tax rate changes, introduced new taxations and also
environmental laws. This is a most challengeable situation. This rules and regulations
changes can effect for the coca cola company.

Political conditions

The political condition can be changed in different countries. Civil conflict, governmental
changes are most affect the coca cola company. After 4, 5 years most of the countries
government are changed. According to the government rules and regulation can be changed.

Batch 61

39

Business Strategy

Individual Assignment

As an example before 2, 3 years ago in Sri Lanka had a civil conflict. In this time, Sri Lankan
business going to the bottom. It also effects for the coca cola company.
Government policies, government change, current legislation of the home market,
international legislation and also wars and conflicts are included for the political factors.
Economic forces
Economic factors can high influence for the coca cola company. For this, forces include
economic growth, interest rates, exchange rates and the inflation rate. Changes of these things
can affect the coca cola company in high rate. Operating a coca cola business activity and
before get a decision company should search this economic forces. According to changes of
the exchange rate, the cost of the exporting products and prices of the supply products can be
changed. Changes of the interest rate can be affected for the Coca-Cola company`s cost of
capital.
Economic forces depend on the home economy situation, general taxation issues, weather
issues, taxation for the coke products, interest and exchange rates and also international trade
issues.

Social and cultural forces


For this force include population growth rate, age distribution and career attitudes. This
forces mainly depend on countries. The coca cola company target the cultural and social
occupation for the advertising campaign and also making their products. These forces affect
the sales of the coke products. In the present most of the US peoples are moving for the
healthy foods and because of this situation Coca-Cola Company has a great chance for sale
their non-alcoholic beverages.
Normally social factors depend on the consumer attitudes and opinions, religious factors,
advertising, life style of the consumers, media views, the brand of the company, consumer
buying patterns and also fashion.
Technological forces
Technology is also most important part of the coca cola company. If the company used the
new technology for the advertising, marketing, and promotional programs, the company can
get more efficiency. As an example, the company can advertise their products on the
television, the web, and social media. Nowadays young generation used new technology and
coca cola company can used that situation for attract the consumers for their products.
Batch 61

39

Business Strategy

Individual Assignment

In this year coca cola company build up the new factory in England that used in modern
technology to ensure the quality and speedy delivery of the product. According to these
things we can decide the coca cola company going with a new technology and it is good
things for company future.
Technology depends on the global communications, technology access, and technology
legislation.

Porters five forces analysis


Porters five forces analysis was introduced by Michael E Porter in 1979. This analysis is a
tool to identify and evaluate the competitive strength and position of an organization. And
another advantage of this analysis is, if the business tries to move another field, this analysis
will help to understand the strength of a position. This analysis is a part of the macro
environment.

Figure 05 - Porters five forces analysis


Competitive
rivalry
within the
industry

Threat of
new entry

Threat of
substitutes

Five
Forces

Bargaining
power of
buyers

Batch 61

Bargaining
power of
suppliers

39

Business Strategy

Individual Assignment

1. Threat of new entry


Normally in a beverage companies reputation can increase by the advertising campaign. It
helps to increase the sales also. In the world to the beverage industry entry barriers is low.
But hard to the existence. Because it has world famous beverage companies such as CocaCola Company and Pepsi. The coca cola company famous all around the world and most of
the peoples know about the brand name. Coca-Cola Company has most powerful distribution
all around the world.
In here consumer switching cost is low. Because the coca cola company long time stay in the
market and loyal customers are normally not like to move another brand. In here threat of
new entry has medium to high pressure.
2. Competitive rivalry within the industry
In the world beverage industry has main two competitors as coca cola and Pepsi. These two
companies have the majority of the market share and others have very less quantity.
Comparing with Pepsi and coke there are more product differentiation in the coca cola. CocaCola has recognized in the world as a best-known brand name. In the beverage industry
havent outstanding market growth rate in the near future.

3. Bargaining power of buyers


Individual buyers can`t effect the coca cola. Because their buyer volume is low. So their
bargaining power is low. But the large retailers have more bargaining power because their
buyer volume is high.
4. Bargaining power of suppliers
To produce to the soft drinks need ingredients such as carbonated water, sweetener, and
caffeine. These things can find easily in a low price. So, suppliers switching cost is very low
because Coca-Cola Company can easily change the suppliers and find new ones.
5. Threat of substitutes
In here threat of substitutes is high. Because there is so many substitutes such as tea, coffee,
juice, and beer. Accordingly consumers have more choices. So, it has low switching cost of
the substitute products. But according to the advertising and also brand loyalty can attractive
the consumers to the coke products.

Batch 61

39

Business Strategy

Individual Assignment

SWOT analysis for Coca Cola Company


Strengths

Brand Equity

Coca Cola Company is the best global brand in the world in beverage. This company win the
highest brand equity award in 2011. For the expansion of the company helps it unique brand
identity and its vast global presence.
(Strategic management insight, 2013)

Distribution network

Coca Cola products have a large demand all around the world. Because of this reason
company want and now it has largest distribution network in the world.

Customer loyalty

Most of the customers are like Coca Cola because this company has also received the trust of
the consumers making its products, products of choice. And most of the consumers like taste
of this beverage.

Corporate Social Responsibility (CSR)

Coca Cola Company doing CSR projects such as recycling, packaging, energy conservation,
climate change, active healthy living, water stewardship and many other things are help to the
increase company image among the consumers and other competitors.

Weakness

Competitors

Pepsi is the main competitor of the coca cola. Pepsi haven`t market share than coca cola. But
we can`t forget the impact of the Pepsi. As an example in India, Pepsi is more popular than
coca cola. They try to increase their market share and coca cola has very competitive
competition with the Pepsi.
Batch 61

39

Business Strategy

Individual Assignment

Significant focus on carbonated drinks.

In the coca cola company produce only carbonated drinks such as Coke, Fanta, and Sprite.
But now business environment is changing, consumer wants healthy beverages. Because they
believe carbonated drinks are not good for their health. This situation is not good for the coca
cola company and they try to move healthful beverages also.

Product Diversification is low

Most of the companies such as competitors of the coca cola have product diversification. As
an example Pepsi also move to the snacks segment, but coca cola is still focusing only
beverages. According to this situation coca cola company hard to preserve their growth. If
they starting produce food, snacks or healthy drinks, it will help to the company growth.
Opportunities

Increasing demand for healthy food and beverages.

Now most of the people find more helpful foods and beverages. According to this situation,
Coca Cola Company has great opportunity. Company can moving to new segment produce
healthful foods and beverages. And also company has more opportunity, coca cola is
worldwide company and many peoples are known about the company.so with this new
segment Coca Cola Company can go to consumers easily.

Bottled water

Coca-Cola has a strong bottled water portfolio. It includes Glaceau Smartwater, Glaceau
Vitamin Water, and Dasani. The company is keen on expanding its portfolio to capture the
rapid growth in this category.
Threats

Changes in consumer tastes

Coca Cola Company main threat is changes the consumer taste. Now consumers want more
healthful and consumers withdraw the large amounts of sugar, calories and fat drinks. This is
the serious problem had to face Coca Cola Company.

Water scarcity

Batch 61

39

Business Strategy

Individual Assignment

There are many reasons for the water scarcity and it directly affect the Coca Cola Company.
They should find the water resources and water should be pure and without pesticides.

(LO1.3) Different planning techniques


Planning techniques are help to understand method that using the organizational activity for
manage.
1. Emergent Strategies
This plan usually used for identify unexpected situation that comes from the future corporate
plans. Emergent strategies are most useful in product development activities. Because when
the companies want improve their product they are looking for new features and compare
these with competitors. For do this they want emergent strategies.
2. Top-Down Planning
Top-Down planning helps for the top management to create goals and control planning
activities for the middle level and lower level management. Top-down planning provides a
consistent direction for the marketing effort. (all Business, 2015)
3. Bottom-Up Planning
These plans are starting at the lowest level of the organization and next going to this planning
each and every higher level. For this plans need to approval from the senior management.
Because of this plan, employees get motivation. They believe their ideas are important for the
organization. So they try to give their maximum to the organization.
4. Implicit and Explicit Strategies
Implicit strategies can create only the higher top management such as CEO. Explicit
strategies are created very clearly.

Batch 61

39

Business Strategy

Individual Assignment

Product life cycle


This PLC describes about, the life cycle of a product. It has five steps.
i.

Product development

This step is a result of a new idea. Demand is in the very low limit. Sales started with very
low limit and sales like zero. So profits are negative. But cost is very high. There are
advantages. Because this product havent any of competitors.
For example for this stage, can introduced launching of coke diet. It is zero calories and sugar
products.
ii.

Introduction

In here can see, slow growth of sales. Customer has to be encouraged and promoted for
buying this product. In here price, competition reactions and consumer responses all
uncertain. Because the product is not popular among the consumer.
Few years back, the coca cola company give huge advertise for the coke diet.
iii.

Growth

Here the product is popular among the consumers. Sales are increasing and also profit also
increasing. Then the cost is reduced. Price stabilization. Competitors try to follow the
product.
In the year 2000 coke diet very popular among the consumers. Features of the product are
stabilization.
iv.

Maturity

Now sales are becoming a slow and profit also go down. For increasing sales should give
promotions and price reductions. For attracting to the customers company introduced new
products with new features. Sometimes competitors introduced new products better than
existing product. It is another reason for slow down the sales.
Coke zero is an example for this. Coca-Cola Company introduced the new product with low
calories.
v.

Decline

In here sales and profits are declines. So advertising is very expensive and stopped it. New
products can make profits easily comparing with existing product.
Coke diet product now stay in this stage.

Batch 61

39

Business Strategy

Individual Assignment

BCG Matrix
After preparing this BCG matrix, can identify what are the products most popular among the
consumers, what are the declining product. And also can identify the unit of the resources
need, units can improve all of the things. This matrix has four symbols and they describe
different factors.
Figure 06 - BCG Matrix

This is the BCG matrix of the Coca Cola Company.


1. Stars
In here growth rate and market share, both are high. This unit is a leader of the market. If
growth rate and market share going to decline it will become a cash cow. So company try to
preserve this situation in the future also.
Thumbs up and Maaza includes the stars unit.
2. Cash cows
Here market share is high and the growth rate is low. Meaning of this stage is, the
organization having money. So they can move another field. As an example Coca Cola try to
establish water purification system. Coca-Cola is the example for this stage.

Batch 61

39

Business Strategy

Individual Assignment

3. Question marks
In this stage, market share is low and the growth rate is high. Now organization situation is
good. But future situation can`t be analysed. This product can go for stars or cash cows
stages.
Fanta and sprit are an example for the Coca-Cola question mark stage.
4. Dogs
This stage has low growth and low market share. Dogs are cash traps. This products situated
in declining stage. Diet Coke and Minute maid are an example for this stage.
GE Matrix
GE matrix explain the each strategies in business units and uniqueness in terms of it being
high or low.
Business strengths;

Customer loyalty

Market leadership

Innovations

Service quality

Research and development speed

Industry uniqueness;

Industry size

Market share

Relationships

Revenue streams

Entry barriers

Batch 61

39

Business Strategy

Individual Assignment

Figure 07 - GE Matrix
Business strengths
GE Matrix
Strong (5-4)
Industry uniqueness
Average (3-2)
Weak (0-1)

Strong (5-4)

Average (3-2)

Weak (0-1)

Coca Cola

VitaminWater

Cherry Coke

Fanta

Sprite

Minute Maid

Dr Pepper

Diet Coke

(LO1.2) Criticisms of strategic planning


Strategic planning is a process for identify the strategy and help to the making decisions and
also this plan can use to the resources allocation. The simple mean of the strategic planning is
setting goals and achieving goals. For achieving goals should implement one goal for one
time. Sometimes organization wants do several activities in same time. If this do according to
the plan, easily can achieve the goals. This plan can include what are the right things should
do in the plan, time period, like that. If organization havent proper plan surely fail the
organization while achieve the goal and implementing the planning.
Because of this strategic planning organization can get more benefits. But sometimes people
are not like for this because of some reasons. This reason can be changing the economic
environment, competitor actions, technological change or governmental changes.
Organization should have faced these problems and they try to develop strategies according
to the changeable environment.
Environmental changes can cause for the organization. According to environmental changes
can change demand. If the demand is decreasing, organization should reduce their production.
It is a bad situation. But organization cant change these things and try to use methods that
increasing sales. Government change also affect to the organization same like above reason.
Changing the value of the monetary unit is including the economic changes. These things
can`t change the organization. But can make strong strategies for facing these problems. Most
of the time competitors actions are serious. Competitors copy the other organizational
activities. For avoiding this things organization try to use new technology and powerful
strategies.

Batch 61

39

Business Strategy

Individual Assignment

When organizations create the strategic plans, studying historical data and current trends to
arrive at projections. Then can identify most suitable strategies and ways of using. Otherwise,
if not using these data cant develop a good strategy for the organization, because it is not
matching with the current situation of the organization.
Another problem is can`t finish work on time. Should avoid this can keep buffers while
making a strategic planning. As an example, a project need to 20 days for finish it and most
suitable for giving extra 5 or 6 days for the finish to the project. It needs for if the suppliers
can get extra time for supplying the materials or time lost accidents. For finish to the project
on time these preparations help for the organization.
Unqualified persons having a main position of the organization is the another reason for the
birth problems on the planning process. If manager is unqualified, his decision may be
wrong. So, organization have the problems regarding the organizational activities.
The organizational strategic plan should match with the market condition. If it does not match
with the market condition immediately it should be changed for adapt to the market
condition. Otherwise, the organization cant survival on the business world.
To success strategic plan of the organization want full commitment and understand of the all
the managers CEO, and also employees. CEO can collect the ideas from all the employees of
the organization how a strategic plan can improve their organization and after that can best
ideas for an implement.
These are the problems that having the organizations in the planning process.

Batch 61

39

Business Strategy

Individual Assignment

(LO 3.1) Ansoffs Growth Strategies


Ansoffs Growth Strategies is a tool that used in an organization for identifying and develop
the business decisions about companies products and market growth strategies.
Figure 08 - Ansoffs Growth Strategies
Existing

Products

New

Existing
Market
Penetration

Product
Development

Marke
t

New

Batch 61

Market
Development

Related
Diversification

39

Business Strategy

Individual Assignment

The coca cola company want increase their sales growth of the company. For do this, the
company should find the strategies and after that should choose the best strategy. To find the
best strategy is not easy. For do this Coca Cola Company can use this Ansoffs growth
matrix. According to this matrix, there are four steps.
1. Market Penetration
In this strategy, organization try to develop their existing product in the existing market from
increasing market share. For achieving these things, Coca Cola Company can do selling more
products, finding the new customers from the existing market, deduct the prices of the coke
products and also can give promotions to the consumers.
As an example for the market penetration of the coca cola company are coca cola and
Christmas. Coca-Cola Christmas advert, help to increase sales in the festival season.
2. Product Development
In this strategy, organization try to introduce a new product into the existing market. The
purpose of this strategy, how achieve the consumers needs from this new product and try to
compete with competitors.
Product development example for the coca cola company, launch of Cherry Coke in 1985. It
is the first time that Coca-Cola Company produces new product beyond their original recipes.
After that company identifies producing cherry syrup is cheap. After producing this product,
Coca-Cola Company was introducing new flavor products such as vanilla, lime, and lemon.
3. Market Development
In this strategy, organizations try to find a new market from the existing product. This new
market can be geographies areas or countries.
In 1980, Coca-Cola Company was introduced by a new product called by Diet Coke.
According to its name actually it is zero sugar and low calories product and it has great taste.
This product was launched more than 30 years ago, but it still popular among the peoples.
Other product called by Coke Zero and it also zero calories product.
4. Diversification
In this strategy, organizations try to go new market with new products. The reason for this,
increase market share of the organization. This strategy is more risky comparing with other
strategies. Because product and market both are new.

Batch 61

39

Business Strategy

Individual Assignment

There are two types of diversification named by related and unrelated diversification. For
related diversification can introduced coca cola company health drink brand Vitaminwater.
The reason for introduced this new product, decreasing demand of the carbonated soft drinks
and increasing demand of the health drink products.
For unrelated diversification, Coca-Cola Company identify the risk, to go to unknown
industry and solution for this, they understood the way is giving their brand name and offers
for the products such as pens, T-shirts, and glasses.
According to this matrix, we can get a clear idea about the coca cola products. And below
chart explains the coca cola company strategies according to their products.
Figure 09 - Ansoffs Growth Strategies for Coca Cola

Backward and Forward Integration


The coca cola company is a largest non-alcoholic beverage in the world. So they want
backward and forward industries to the preserve the company. These industries help to the
mother company for doing their main activities correctly and easily.
Coca-Cola Bottling Company is an example for the coca cola company backward industry.
Bottle industry most important part of the any liquid companies. Most of the companies pay
very large amount for the bottling. So if the companies have their own bottling industry it
help to decrease the cost also. This backward industry already have the coca cola company.
So it want new backward integration. According to my vision, most suitable backward
industry is water purification center. The coca cola company produce so many products and
they want high quantity water liters per day. Because all the beverages want water for the
producing process. And also that water should be pure. Otherwise quality of the coke
products can be decrease.
The coca cola company is worldwide distributer and they want expansion distribution
network. Transport is the part of this network. Company can used external transportation
services to do this. But if the company has their own transportation services company can
serve the money and can distribute products on time. This is an example for the forward of
the coca cola company. For do this they can buy or rent trucks for the land transportation,
ships for water transportation and airplane for the air transportation.

Batch 61

39

Business Strategy

Individual Assignment

They already have about 20,000 trucks. But if other transport equipment has, they can easily
transport their products.

(LO3.2) Future strategy for the Coca Cola Company


Evaluating the strategies, most helpful for the organization, to understand what the most
suitable strategy is. For evaluating the process, there are three steps. After evaluating this
steps, can apply most suitable strategy for the organizations.
The first step is suitability. According to this step measure the most suitable strategy for the
organization. This strategy should match with the organizational situation. It should have the
ability to improve organizational strategies and reduce the organizational infirmity. It should
have an ability for deducting the defect of environmental threats. It has the ability to get new
opportunities to the organization and satisfy the goals of the organization. And also should
find politics and the corporate culture are matching with this strategy. After the find, all these
things can decide this strategy match with the organization.
Establish the water purification center for the coca cola company is the strategy. Water
purification center is the compulsory requirement for the coke company. Because the water is
the main ingredients in beverages and most important resources of the company. The health
of the water resources directly affects the quality of the coke products. If the quality is good,
the company can increase the sales easily. It chance to get a new opportunity to the company.
This system should be environmental friendly. Before establishing this system, the company
should find the political and cultural situation of the countries and after that can select the
most matching country for established the company.
The second step is feasibility. This step depends on the capacity of the organization.
According to feasibility, try to uncover the strengths and weakness of the organization.
Success of the feasibility depend on some factors such as historical background of the
organization, description of the product, accounting statements, details of the operations and
management, marketing research and policies, financial data, legal requirements and tax
obligations. According to this factors can change feasibility.

Batch 61

39

Business Strategy

Individual Assignment

The coca cola company has a good historical background. This company was established in
1886. For 1886 to present them get huge market growth and they become a world famous
brand of the world for the beverages. People's trust coke products and they like to use these
products. They have a good financial position to move the new industry also. Such as water
purification system. Because their development of income growth is 17.5% and net income is
US$ 5.82 Billion in 2009. (The Coca-Cola Annual Report, 2009) And now they can expand
their business if they have water purification system.
The final step is acceptability. According to this step consider the extent to which it relates to
stakeholders expectations. In here also consider the financial situation, customer
expectations, governmental legislation and environmental impact.
Coke Company is a worldwide multinational company and it has to have faced many of the
governmental legislations in different countries. Sometimes environmental organizations may
oppose this water purification center. Because most of the times this organization's effort for
the new industries if have an environmental impact. The company should try to face these
things and try to avoid this impact. But it has a high ability to success this system. Because
the company has good financial situations.

(LO4.1) Roles and responsibilities for strategy implementation


Corporate strategy
Established new water purification system for the Coca Cola Company in August 2016.
Operational strategy
Before established new water purification system for the coca cola company should achieve
compulsory requirements. Different departments have different roles and responsibilities.
Water purification system can established separate company from the coca cola company.
HR Department

Batch 61

39

Business Strategy

Individual Assignment

Recruit and selection are the main responsibilities of the HR department. For this new
company wants new employees. HR department should hire the new employees and also they
can get the employees from mother company. For do this first take the decisions, how many
employees they want, for what position and all the things. Then prepare the job descriptions
and job specifications. After that make a plan how and when to advertise these vacancies,
such as advertising channels. After got the vacancies applicants are short listed and
references. After that candidates are invited for the interviews and selection tests. Finally
successful candidates can recruit to the most suitable position of the organization. New
employees training process also a role of this department.
Advertising also their main role. In here they advertise only hiring the employees. Because
this is part of the Coca-Cola Company.
Finance Department
Find the finance is the main responsibility of this department. This department should pay the
wages of the employees. They should allocate the money for the training process, advertising
campaign, purchasing new buildings, purchasing equipment and materials and extra
expenses. Finance department should prepare daily expenses reports, financial position,
budgets all the things. This department has very responsible responsibilities.

IT Department
Water purification system control according to the computerized system. So it wants
computers and other stuff. Want new technology for the running the programs and also
qualified IT persons. Because normal employees cant control this programs. Established all
the equipment and control the system are the main process of this IT department.
Operations
Water purify is the main operation of this company. For do this want chemical, equipment,
and other stuff. This system depends on the operations of this system. So should complete
correctly all the tasks of this operations.

Batch 61

39

Business Strategy

Individual Assignment

(LO4.2) Resources requirements for new strategy (Water purification system)


Before established the new strategy consider about resources. This water purification system
started as a new company. So all the resources need for it. Under physical resources include
the land, materials, and buildings. For established to the water purification instrument want
big land and new buildings. This land should have easy transport facilities, facility of
removing non-essential things and other facilities. This is a compulsory requirement.
And also this company havent human resources. In this new company used new technology.
Because it easy for the complete target. For work with new technology want high
knowledgeable persons in the mechanic field. Not only that one, for the managerial posts
want to be educated talented persons.
Raw materials suppliers also want to the company. Another essential requirement is finance.
For started this company wants above things. For complete it, need financial resources. The
company can get a bank loan for completing these things. But better way for achieving these
thing is merging with the coca cola company. It already part of it. But after the merge, the
new company can complete it requirements from the mother company resources. The new
company can get skilled employees and knowledge from the existing company.
Because of the merge, the new company can reduce the cost. This two company can share
manufacturing facilities, technology, and office space. Finance risk is reducing because of
this merge. So it can continue the quality of the water. It also affects the quality of the coke
products. If coke product has good quality, consumers are attracting the coca cola. It helps to
the increasing sales.

Batch 61

39

Business Strategy

Individual Assignment

(LO4.3) Time scale to monitor the strategy


Figure 10 - Time scale
Sep

Activities

Oct

No
v

Dec

Ja
n

Month
Feb Mar Apr

May

Ju

Jul

Aug

Present the new strategy


for the top management of
the Coca Cola Company
and get approval.
Get legal documents
Finding the finance
Purchase

the

physical

resources
Starting the recruiting and
selection process
Training the employees
Check the operations of the
process and machine
Start the process
Supply pure water for the
Coca Cola Company

Batch 61

39

Business Strategy

Individual Assignment

Conclusion
In this assignment mainly describe the new strategy for the Coca-Cola Company. It is water
purification system for the coca cola company. It is a world largest beverage company. So it
wants more quantity of water liter per day. If the company get this water from the outside
resources company had to pay more value. But if they have water purification system they
can supply water easily with low cost. And also they provide pure water bottled called
VitaminWater. For produce it also they want pure water.
According to this reasons, can conclude water purification system is compulsory
requirements for the Coca-Cola Company. To established this project not easy. It wants
resources such as manpower, land, buildings, and also finance.
After finding these things can established system. After that, the company can develop their
productions.

Batch 61

39

Business Strategy

Individual Assignment

References
Web sites.
1. Value chain analysis of coco cola. 2015. Value chain analysis of coco cola. [ONLINE]
Available

at:

http://www.scribd.com/doc/50839208/Value-chain-analysis-of-coco-

cola#scribd. [Accessed 01 August 2015].


2. Coca-Cola Company. History, SWOT analysis, maketing strategies | Self-Publishing
at GRIN. 2015. Coca-Cola Company. History, SWOT analysis, maketing strategies |
Self-Publishing at GRIN. [ONLINE] Available at: http://www.grin.com/en/ebook/280535/coca-cola-company-history-swot-analysis-maketing-strategies.
[Accessed 03 August 2015].
3. Vision and Mission - What's the difference and why does it matter? https://www.psychologytoday.com/blog/smartwork/201004/vision-and-missionwhats-the-difference-and-why-does-it-matter [Accessed by 24 June 2015]
4. Basic Definition of Organization. 2015. Basic Definition of Organization. [ONLINE]
Available at: http://managementhelp.org/organizations/definition.htm. [Accessed 24
5.

August 2015].
[PDF]
The Coca-Cola Company 2015. . [ONLINE] Available at: http://assets.cocacolacompany.com/79/be/d742827346398d224347d10205b4/10k_12_19.pdf.

[Accessed 15 August 2015].


6. Customers & Marketing | Coca-Cola HBC. 2015. Customers & Marketing | CocaCola

HBC.

[ONLINE]

Available

at:

http://www.coca-

colahellenic.com/aboutus/customers. [Accessed 13 August 2015].


7. Coca-Cola Company. History, SWOT analysis, maketing strategies | Self-Publishing
at GRIN. 2015. Coca-Cola Company. History, SWOT analysis, maketing strategies |

Batch 61

39

Business Strategy

Individual Assignment

Self-Publishing at GRIN. [ONLINE] Available at: http://www.grin.com/en/ebook/280535/coca-cola-company-history-swot-analysis-maketing-strategies.


[Accessed 10 August 2015].
8. Coca-Cola: Ansoff Matrix | the Marketing Agenda. 2015. Coca-Cola: Ansoff Matrix |

the

Marketing

Agenda.

[ONLINE]

Available

at:

http://themarketingagenda.com/2015/03/28/coca-cola-ansoff-matrix/. [Accessed 08
August 2015].

Batch 61

39

Anda mungkin juga menyukai