Request help with conducting a Strategic Analysis of the Coca-Cola Company & taking an intensive look at this company .
The outcome is to use a completed external and internal analysis of the Coca-Cola Company, in the completion of a SWOT
I have to type a 7- 10-page paper, integrating the external and internal company analysis, completing a formal company SWOT.
•Step 1: Perform research, and complete an industry analysis using each of the Five Forces in Porter's model. Support your analysis with current financial, operational, and marketing data.
•Step 2: Complete your external analysis using each of the four elements in the PEST analysis. When considering economic data, use the most current data you can find.
•Step 3: Write up the results of your external analysis, and be sure to label the impact of each of the Five Forces as high, moderate, or low. Taken together, the Five Forces analysis and the PEST analysis should lead to conclusions about the overall opportunities and threats facing the Coca-Cola Company as revealed by your research. All data and factual information that you report in your Five Forces and PEST analysis must be properly cited using APA style.
•Step 4: Conduct a critical and thorough internal analysis of the Coca-Cola Company, assessing as many of the company's key internal strengths and weaknesses as you can. Consider the operations, customer service, finance, human resources management, and marketing functions. See the following website, as it will help you decide which strengths and weaknesses you might wish to evaluate: http://www.businessballs.com/swotanalysisfreetemplate.htm
•Step 5: Discuss the results of your internal analysis, including your conclusions concerning the strengths and weaknesses facing the Coca-Cola Company.
•Step 6: Synthesize your internal analysis with your external environmental analysis, formulating a complete SWOT analysis. Provide a SWOT diagram (include as an Appendix - not as part of the written analysis!) in which you show - in each of the four quadrants - the most important 3-4 company strengths, weaknesses, opportunities, and threats. Each of these should be discussed thoroughly within your written analysis.
•Based on your SWOT, give very specific and informed recommendations as to what the company should do. Give your overall analysis—does the company have more strengths than weaknesses? More weaknesses than strengths? Whatever you decide, you need to recommend (with strong, convincing support) what you believe should be the company's strategy — in response to your collective assessment of the organization's strengths, weaknesses, opportunities, and threats. You must demonstrate evidence of critical thinking - don't simply restate facts you've learned about the company! Interpret the data and factual information you've found instead!
•Step 7: Consider this as a formal business report that you are developing for the Board of Directors and CEO as the Coca-Cola Company's consultant. This is a professionaldocument. Follow the format below: ◦Executive summary: This is a synopsis of the main points, conclusions and recommendations made in the longer report.
◦Introduction: State the main purpose of the paper (thesis statement), what you hope to accomplish, and how you will go about doing it.
◦Main Body: The "meat" of the paper. Emphasize analysis, not just description. Delineate separate topics or sections with section headings.
◦Conclusion: Summarize in the light of your thesis statement.
In compliance with BrainMass rules, this is not a hand in ready paper but is only guidance.
Five Forces in Porter' model: Industry Analysis:
Threat of new entrants: Low:
A new entrant in the soft-drink industry will require large investments. Investment is required not merely in the manufacturing plants but also in advertising and brand building. Coca Cola makes mega expenditures in its brand awareness. This erects large barriers for new entrants. Another barrier in the industry is access to bottlers and distribution system. Coca Cola has exclusive agreements with bottlers and their distributors. This makes it very difficult for new entrants to enter the industry. Further, the formulae of the concentrates of each product are kept a secret. A new entrant would find it very difficult to enter this industry. Over the period of time, both Coca Cola and Pepsi have developed a strong brand image, which is rivaled by few. This keeps out new entrants. Further, new entrants can expect strong retaliation from the existing companies.
Intensity of competitive rivalry: High
The main competition is from Pepsi. Pepsi has a presence in the market that can rival Coca Cola. It has access to bottlers and distributors all over the world. In addition, Pepsi has a range of products that directly compete with the products of Coca Cola. For example, the flagship product Pepsi directly competes with Coke. Similarly, Mininda competes with Fanta and so on. The structure of the industry is that there are two large main players and the competition is based on advertising and differentiation. The competition takes place world-wide, in every area there is competition between Coca Cola and Pepsi for the share of the market.
Threat of substitute products: Medium Threat
There is an increased threat of substitute products. These products include soda drinks, energy drinks, juice products, mineral water, and even locally made cola. From a different point of view even alcoholic drinks and coffee are substitute products. The consumers can easily shift over to substitutes. The consumer has no shifting cost. In addition, local companies spend large amounts of money on local advertising to draw customers away from advertisers. The main reason why local substitutes pose a threat is that these sellers know the drinking habits of the local people intimately. It is easy for the Coke drinker to be lured away by a local drink.
Bargaining Power of buyers: Medium
Individually, the individual customer of Coca Cola does not have any bargaining power. However, the individual has the ability to switch products or to use substitutes. The consumer does not incur any cost in switching products and so the companies in the industry spend large sums of money advertising. Not only that, both Coca Cola and Pepsi sponsor important sport events and use celebrities because they try to build customer loyalty. On one side the single customer does not have any power. At ...
The answer to this problem explains external and internal analysis of Coca Cola Company . The references related to the answer are also included.