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External Environment Analysis - Coca Cola

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Complete an external analysis for The Coca-Cola Company, using Porter's 5-Forces Model and a PEST Analysis. Ultimately, this analysis will lead to some conclusions about opportunities and threats facing the company (the first part of the SWOT analysis).

What is the scope of the analysis (entire company, selected business division?) and determine the proper NAICS code for the Coca-Cola Company.

Use data to support and apply the industry analysis for the 5-Forces of Porter's Model. Also use recent data to analyze the four elements of a PEST analysis.

Using the results of the analysis, label the 5-Forces high, moderate, or low. This can then be used, along with the PEST analysis, to make conclusions about the threats and opportunities facing Coca-Cola Company.

This should be treated like a formal business report made by the Board of Directors and CEO as Coca-Cola's company consultant.




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External Environment Analysis-Coca Cola

Executive summary:

Conducting a PEST and a Porter's five forces analysis on the entire business operations of Coca Cola Company will play part in deriving the various opportunities and threats that the company faces. The scope of the analysis will involve the entire coca cola company. The appropriate NAISCS code for the company is 312111 (DATAMONITOR: The Coca-Cola Company, 2011).


Coca Cola Company is the leading company in the production of non alcoholic beverages and drinks throughout the globe. The company has its headquarters in Atlanta where it has a total of 139,600 employees. The company serves over 200 countries around the globe (DATAMONITOR: The Coca-Cola Company, 2011).

Porter's 5 Forces:

Porter's five forces will provide an overview of the supplier power, the existing threats of new entrants, threat of substitutes, buyer power, and the degree of rivalry which results to rivalry being born. Various industrial characteristics available in the beverages industry where Coca cola is located has resulted to the development of rivalry. Low levels of product differentiation are one on the factors which has led to the development of rivalry.

Looking at the threat of substitutes which is characterized as low, Coca cola's price elasticity is not affected by the substitute products since the company has a limited number of substitutes when it comes to the products that they purchase. The level of the existing price competition of Coca Cola Company is therefore considered to be low. The reason behind this is that the company is involved in ...

Solution Summary

The solution looks into the Coca Cola Company's environment, with tools like a PEST and Porter's Five Forces analysis. 999 words with 2 references.

See Also This Related BrainMass Solution

Coca Cola Company: External & Internal Analysis

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.

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