Nowadays more than ever, with this financial crisis that does not seem to end and creates more and more losses every day, it is very crucial for companies to not only settle for a long term strategy but also a back-up strategy to face problems such as the ones they could face during those times. A company has to have a strategy in order to be able to focus on the main points of the company. That is when strategic management comes in handy, since it allows companies or executives in charge of the strategies of their companies to really study the situation, consider and weigh the various advantages and disadvantages the company has, where the company is heading as well as what the company is really aiming at. This finally leads to a clearer view of the overall situation (the market, the position on the market and the expectations of both the company and the sector). Therefore, setting a strategy, weather it is an emergency one or a long term one, is easier to do.
Strategic management basically raises three questions: Where am I? (and by I, I am referring to the company or the executive in charge of the strategy), Where do I want to go (or be)? And how do I get there? I have decided to apply these questions to a very famous company, Coca-Cola and this, for two main reasons. The first one is that I am very curious about the future of such a company, that is present in almost every country and whose market is going through some serious changes. I wonder what their strategy might be as well as their objectives in the long term. The second reason is my wondering about the effects the financial crisis could have on a huge food company, if there are any at all.
[...] I believe that, as Coca-Cola is more focused on beverages than Pepsico, which owns snacks and food brand as well as beverages, it will be easier for the company to react and act during these tough economical times. On the two main points these companies are trying to fight, Coca-Cola seems to be the one which has the most room of maneuver. Indeed, the reasonable diversification of CocaCola allows it to have a critical size and be present in various beverages markets. [...]
[...] Coca-Cola wants to settle on a permanent basis on the sodas market, to solidify its position, especially on the American market (where Pepsi is becoming a huge threat) and internationally, focusing mainly on countries where sodas are not usually consumed (India, Asian countries in general) and keep on being the historical brand with so many famous commercials and pictures. It also wants the same market shares it has with its Coke range on the other beverages markets: juices, water etc . [...]
[...] It was a success in the town and after deciding on a name (coming from the use of kola and coke leaf, the two main ingredients of the beverage) as well as a logo (which has not changed since its creation), Pemberton registered it as a company and settled himself as a producer. Through various changes of direction and management, many acquisitions, take-overs and buy-outs, Coca-Cola gradually became what it is now known for. Today, it is a huge beverages company, present in 200 countries (there are officially 192 countries, that is to say admitted by the world-wide community but 226 countries and territories in total). [...]
[...] Strengths Excellency in marketing Good brand image Good integration of cultural concepts World-wide implantation Good brand awareness Weight Rating Weighted Score IFAS Weaknesses Linked to various diseases Considered Food” Related to food industry Weight Rating Weighted Score TOTAL Opportunities Weight Rating Weighted Score Food habits are evolving 0.4 Bad economy weaken 0.1 competitors EFAS Threats Maturing market Tough competitor Pepsico Food habits evolving toward green or organic food The negative consequences of the financial crisis Weight Rating Weighted Score TOTAL www.en.oboulo.com THE MAIN GOAL OF THE COCA-COLA COMPANY Strategy of Coca-Cola (Its main mission) Considering the figures (financial statements of the company and its subsidiaries), one can wonder if this company has adopted a strategy for survival, to go through the recession or a growth strategy. [...]
[...] It already has a foot on this market, not new but developing. Therefore, it wants to get the most of the market shares of the “healthy food” market. But, as we have seen previously, the company is having difficulties settling these new brands and healthy products in Europe. Therefore, the objective of Coca-Cola is to go over these difficulties and sell its new products in Europe. Coca-Cola has not immediate need of addressing the financial crisis and the consequences of it. [...]
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