I have attached Part 1 and Part 2 for your review before completing the next part.
Organization is: Coca-Cola Bottling
Follow the instructions based on decision to complete the Strategic Plan:
Strategic Plan Part 3: Strategic Evaluation and Recommendation
In this section, you will be evaluating various strategies and making recommendations for the organization (Coca-Cola Bottling)
Write a 1,050-word minimum strategic evaluation in which you include the following:
Evaluate potential business level strategies for the organization.
Assess potential corporate level strategies for the organization.
Assess potential global strategies for the organization.
Recommend a strategy or combination of strategies the organization should implement, and include a rationale for that recommendation.
Format your paper consistent with APA guidelines.
Running Head: INTERNAL ENVIRONMENT ANALYSIS Internal Environment Analysis: Coca Cola Company STR/581
January 9, 2017 1 INTERNAL ENVIRONMENT ANALYSIS 2 Internal Environment Analysis: Coca Cola Company
Internal environment analysis comprises of the identification of a business?s strategic
strengths as well as weaknesses in order to identify the extent of their impact influence on the
business?s value creation as well as its competencies, capabilities, and resources (Coca-Cola
Company 2008). The company is dedicated to assuming the global leadership for the customer as
well as excellent distribution services. Under the coca cola environmental analysis we will
discuss the company?s strengths, weaknesses, as well as the essential internal environmental
factors in the general, industry, and external analysis with regard to the internal analysis.
Coca-Cola bottling company famous for its worldwide presence, which is facilitated by
its strengths. One of its major strengths is that it has a clear and renowned branding. Its logo is
famous globally which makes many people buy its product, not because of its taste only but
since it is globally accepted making its customers feel that they are part of big and unifying. The
company also enjoys the strength of having adequate resources in terms of money.
The company deals with huge amounts of money annually. The company earns the
substantially large amount of money as compared to many beverage companies. The company
also ploys back a big proportion of this money into their own operations so as to enhance
improvement. The other strength of the company is its customer loyalty. Almost eighty per cent
of their earnings come from about twenty per cent of the company?s loyal customers.
Coca-Cola bottling company despite its huge successes it has a few weaknesses. But the
company have a number of weaknesses which it should focus on solving so an effectively its INTERNAL ENVIRONMENT ANALYSIS 3 objective of getting to a higher level. One weakness are the lack of popularity of majority of the
company?s drinks. The company has drinks such as Coke and Sprite been the most famous
products while it other numerous different types of drink is not well known. Many of these types
of drink are rarely available to purchase.
The company needs to address this weakness when analysing their marketing and
advertising strategies. In addition, the company has been encountering another weakness of
public negatively of the health issues posed by a number of its products. For instance, its product
such as coke is famously known to be fewer benefits to our bodies as well as our health. This
might make the company lose some of its customers, as they tend to shift to healthy products.
On the other hand, the company operates in a general industrial environment that presents
it?s with a number of opportunities. For instance, the company has numerous successful brands
that are a factor that it can continuously exploit and pursue (Hooley, G., Piercy, F. & Nicoulaud,
B. 2008). The company can use its successful brands to market its less known products. In
addition, the company has huge money resource base that can be leveraged to put some of the
lesser-known beverages in the market. This can be very advantageous as it can help the company
to sell almost all it?s to the same extent as the main products.
With the strong resource base, the company has the opportunity buy out their
competitors. The company has the power and success that makes this task much possible. In the
past, the company has bought out numerous drink brands. This helps them to earn a profit of an
already established drink brand. In addition, the coca cola brand recognition is a great factor
which affects its competitive position. The company is well known throughout the world. The INTERNAL ENVIRONMENT ANALYSIS 4 company can also leverage this factor to make their product even better known to almost 100%
of the world?s population.
It clears that Coca-Cola bottling company dominates its market, however, like other
companies in the industry the company still has to deal with numerous threats. Both Coca-Cola
Bottling Company together with Pepsi takes charge of nearly 40 per cent of the whole drinks
market. However, the changing customer attitude towards health-conscious products could have
adverse effects on Coca-Cola. This is a huge threat because in the world today people are busy
changing both their eating as well as drinking habits. The other threat for Coca-Cola Company is
of the legal factors. There will usually be chances that somebody will always seek to establish
fault with the best companies in order to take them down.
Competition is a major threat to any company. Coca Cola's bottling company main
competitor is the Pepsi Company. This is because they sell the nearly very similar drink.
Therefore, Coca-Cola bottling company should be very careful that Pepsi does not advance and
grow to be a more successful drink. Apart from Pepsi Company, the market has also many
beverage companies, which also serve as Coca-Cola competitors, and also presents threat toward
the company. However, the company stands as a global number one soft drink company.
The competitor's advantage against Coca-Cola involves the presence of a number of risks
over a long period of time healthy earnings of the beverage firm as many consumers are shifting
to safe or health oriented products thus affecting Coca-Cola in some way while its competitors
involved in the sale of health conscience product experience increase in their profits. In addition, INTERNAL ENVIRONMENT ANALYSIS 5 coca cola competitors pose serious competition in a number of coca cola products such as water
as well as sports drinks. However, the company is trying to contain the risk posed by developed
nations through the introduction of Coca-Cola zero products. By doing this, the company is able
to maintain its sale in the United States as well as in Europe. The company tries to stabilize
products across all economic cycles in order to avoid immediate price changes when recession
features in an economy.
The Coca Cola's Bottling Company advantage over its competitors involves the fact that
the company?s top-selling beverages have to perform excellently for many decades. The
company invests largely in research as well as the creation of initiatives meant to assist the
company to survive on its massive production. The company also possess a brand equity that
signifies its brand favourability in the market. The company also possess a competitive edge over
its competitors through being in a market which has no market hindrance to exit or entry this is
why the market has numerous firms that produce a common product as it does.
However, the company did not file its patent as opposed IBM Company, which filled, and
the two firms are successful. The company has a competitive edge in the market, which assists it
in growing bigger and bigger in its sales as well as market share. The company?s famous brand
name has also a competitive advantage and recently the company started pursuing environmental
friendly product. This has seen many of the Coca Cola bottling company products been
recyclable while the company is trying to go for the green effect.
The company' s structure is a huge one and as well as a combination of the mechanistic as
well as organic organizational structure models. The company enjoys a highly centralized INTERNAL ENVIRONMENT ANALYSIS 6 organizational structure, however, in the past few years, the company has slowly been diverting
toward adoption decentralization in order to facilitate easy management in its regions (Haidar, A.
et al. 2007). In addition, the company structure is form based on its standard of maintaining a
high responsiveness. Furthermore, the company has a complicated integration of mechanistic
with a high characterization of an organic organizational structure. Additionally, research carried
out on the structure reveal that it enables the flow of information from the bottom-up, while the
use of intranet by the company enables information to be transmitted laterally. The research
conducted reveals that the coca cola pursues simplification as well as standardization (Coca-Cola
Company 2014). The mechanistic structure is characterized by the presence of both
centralization and standardization.
Competitive positioning is concerned with product differentiation in order to create high
value for a company?s market. Competitive position is concerned with holding on a given market
niche with offer the company competitiveness as well as dominating other companies in the
marketplace. Coca-Cola has a strong competitive position, and the company has proven to have
constant market rapid growth. The coca cola?s competitive advantage over its competitors is
usually gained through providing the consumer with superior quality, through lower price as well
as through offering more advantages that justify higher price.
The Coca-Cola company competitive advantage presents it with the capacity to do well in
a number of ways that their competitor cannot match. As a company coca cola also aims at
having a sustainability advantage since it?s advantageous to the company in long runs. The
competitive advantage provides the coca cola customers with lots of benefits since the company INTERNAL ENVIRONMENT ANALYSIS 7 is in a position to provide its product in a better manner than their competitors making the
customers to automatically opt for Coca-Cola products over those of other companies. INTERNAL ENVIRONMENT ANALYSIS 8 References
Coca-Cola Company (2014). Mission, Vision & Values. Retrieved from http://www.cocacolacompany.com/mission-vision-values
Coca-Cola Company (2008). Impulse Food and Drink Channels. Local Company Profile.
Retreved from http://www.cokesolutions.com/foodservice
Haidar, A. et al. (2007), Strategic Management: An integrated approach, 2nd ed. Melbourne,
Hooley, G., Piercy, N.F., Nicoulaud, B. (2008). Marketing Strategy and Competitive Positioning,
4th Edition, Prentice Hall, London.
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