Coca-Cola is an extremely effective organization. Nevertheless it has a number of difficulties surfacing at this time. The Coca-Cola Company offers around four hundred various consumer drinks and merchandise. The majority are not known as well as seldom observed with regards to accessible purchase. Furthermore, an additional problem the organization ought to deal with may be the health problems associated with soft drinks since it really is recognized that the well-known Coca-Cola soft drink is not really good for people's health and wellness. Along with modern and continuous change in consumer behaviour towards healthier items, the overall clients for the company may reduce (Brennan, et al., 2008).
Main body -- SWOT Evaluation
Planets top brand
Coca-Cola offers and enjoys a powerful brand name reputation around the world. The organization features a top brand name along with a powerful brand name collection. Business-Week as well as Interbrand, identify Coca Cola among the top brand names within their best one hundred worldwide brand names position for 2010.
An additional power which is enjoyed by Coca-Cola is actually client devotion. The actual 80/20 guideline makes impact within this scenario. 80% of the revenue originates from twenty percent of the devoted clients. Numerous people/families are incredibly devoted to the brand of Coca-Cola (Zahorsky, 2009).
The organization continues to be significantly published negatively with regards to the health problems which encompass a selection of their items. The brand new concentration on bodyweight as well as wellness is actually an issue for your Coca-Cola as it is tagged as being bad for both those aspects.
Financial decrease for current operations
The company's cash flow through current operations has dropped throughout financially in the year 2010. Money penetration through the current operations recorded a much lower ration than those recorded in 2009. Coca-Cola's financial investment in 2010 experienced this significant decrease also because of the $216 million that they had to pay to a tax-qualified trust that was financing retirees' medical insurance (Zahorsky, 2009).
Developing drinking water marketplace
Bottled water is among the fastest-growing sections for the global consumer market right now as the world becomes more health-aware and conscious.
Cash out competitors
An additional business opportunity that seldom surfaces is the ability for a company to buy out its competitors. This is one of the biggest opportunities for Coca-Cola as it does, even with its decline in finances, have the ability to still restrain new competition by buying out smaller firms.
Alternating towards a health conscious attitude
Coca-Cola and Pepsi are the two main beverage monopolies with over 40% market share, the fact remains that the global consumer is changing his/her approach and becoming more health conscious which could directly impact the sales of Coca-Cola which is reputed to be an unhealthy investment (Zahorsky, 2009).
Question 2: Chart
Develop Drinking water marketplace
Alternating to a health conscious attitude
Cash out competitors
Fiscal fall in operations
The above chart is based on the SWOT analysis conducted for Coca-Cola. For the strengths, customer's loyalty has been chosen to be the most significant aspect for the brand and the urgency of increasing this is extremely important due to the rising health concerns that are being raised against the brand (these are discussed in detail later in the paper). The biggest weakness chosen for Coca-Cola is again the health concerns that need to be addressed immediately by the company in the short run so as to retain its clientele. Another weakness highlighted is the fiscal decrease in the functional abilities of the brand; this is not really an urgent issue because the entire global fiscal community is on a downward slope and hence the company can make long-term strategies to rectify this weakness and with Coca-Cola's current stature, this won't be hard to accomplish. The two opportunities highlighted include developing a drinking water brand and cashing out or buying out competitors. The former is far more important to accomplish, also attention must be give to the fact that Nestle already has great market penetration when it comes to drinking water and it will be Coca-Cola's main competitor when they want to develop and market the Coca-Cola drinking water, despite its current ventures with the company. The opportunity to cash out competitors can be dropped till the fiscal performance of the company picks up again. The most urgent threat that Coca-Cola needs to adhere to and thus adapt with is the alternating attitude of its clientele to a more health-conscious level and thus Coca-Cola must work hard to not only develop but alos promote and distribute their healthier products as well as successfully penetrate and challenge the current market that exists for healthier products.
Question 3: Ansoff Matrix
The Ansoff Matrix comprise of four tiers: market penetration (important for existing products in the existing markets); product development (important for new products in the existing markets); market development (important for existing products in the new markets); and, diversification (important for new products in the new markets). Each of these are discussed below with regards to the business operations and networking of Coca-Cola.
The following table shows a much more detailed account of financial investments made by Coca-Cola in the three financial years from 2005-2007. The table also includes investments made in water consumption and awareness programs made in the three fiscal years and also includes the profits and net incomes earned for each year.
Revenue ($ mil.)
Gross Profit ($ mil.)
Operating Income ($ mil.)
Total Net Income ($ mil.)
Diluted EPS (Net Income)
One way that the Coca-Cola Company aims to have a profitable cost benefits ratio is to form international alliances under the guidance of the CEO Water Mandate. These international alliances designed by the CEO Water Mandate supply an opportunity where corporations can contribute to paramount practices and examine the experiments and victories each corporation underwent in accordance to the six fundamentals mentioned in the CEO Water Mandate. "If the communities we serve are not sustainable, than we don't have a sustainable business," said Manley (Water Wide Web, 2010).
To rally the increasing disputes highlighted by the numerous concerns over water consumptions and shortages, the Coca-Cola Company has recognized and implemented numerous procedures to attain the company's international water stewardship objective as well as maintain a profitable cost benefit analysis ratio (Brennan, et al., 2008). Some of these implementations include:
Using the right means and procedures to discard all industrial waste
Identify newer and innovative water management traditions and regulations
Treating all of the company's reproduced wastewater before they use the procedures that will discard it back into the atmosphere (Brennan, et al., 2008)
It was nearly in the mid of the 2010 fiscal year when the Coca-Cola Company was able to effectively and practically treat all of the reproduced wastewater produced from their manufacturing before releasing it into the environment. Hence, when you compare this to the rest of the industrial discharge in the world, the differences are remarkable for both the developed and underdeveloped countries (Munir et al., 2008). Hence, Coca-Cola has an opportunity here to guide all the other industries on the treatment of water before discarding it. The procedure is one that is simple enough for all industries to follow, even those who are not in the beverage industry. The Coca-Cola Company invests in a structure that reduces, recycles, and replenishes the water consumption in the corporate manufacturing procedures which is what makes its treatment least harmful when water is discarded in the atmosphere (Brennan, et al., 2008). The particular process that has helped the Coca-Cola Company establish a very profitable cost benefits ratio includes the following steps:
Decrease the overall use of water as the top beverage consumed by producing an increased number of beverages that can replace water
Recycling and treating water before discarding (Brennan, et al., 2008)
Engaging in activities that replenish water in various communities
Engaging and investing time in activities in many local communities that include watershed protection, water table level protection, rain water harvesting, helping with agricultural use of water by improving use of wells, tributaries, etc. these activities amount to Coca-Cola covering more than 70 countries and over 250 environment-based projects.
Investing in global efforts for preservation of watersheds and community water structures
Improving the water consumption efficiently at a steady rate over the past decade
Establishing the goal that by the year 2012, improve the overall water consumption 20% more than where it stands now (Brennan, et al., 2008)
Water Wide Web (2010) also assert in their recent evaluation of the Coca-Cola Company cost benefit analysis that "the Coca-Cola Company will release their 2009 Sustainability Review. 'Data provided in this review will be verified by a third party', assured Manley. Through strategic partnerships with the World Wildlife Foundation, the Nature Conservancy, and the…