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Table of Contents
Description Page No.
Industry Profile 3
Company Profile 4
Mission Vision 5
Micro Environment & Five Forces Model 6
S!" #nalysis 8
Competitive Profile Matri$ 13
EFE AND IFE Matrix 14
Corporate Strategy 16
Porter%s eneric Strategies 17
Space Matri$ 18
rand Strategy Matri$ 19
'C Matri$ 2
I(E Matri$ 21
"!S Matri$ 22
)uantitative Strategic Planning Matri$ 25
Implementation Stage 26
Conclusion 27
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A!"no#le$%&ent
e are very grateful to #lla* +*o ,lessed us t*e strengt* and courage to stand ,y t*e difficulties
t*at came in t*e +ay and +*o ena,led us to complete t*is pro-ect effectively.#s plants cannot
gro+ +it*out seeds ,irds cannot fly +it*out +ings.Similarly /no+ledge cannot ,e attained
+it*out proper direction and supervision. e are t*erefore also t*an/ful to our respected
Ma%am )uratulein Mu0ara, ,ecause of +*ose generous co(operation and *elp
t*e accomplis*ment of t*is Pro-ect ,ecame possi,le.
Exe!'ti(e )'&&ar*
In t*is pro-ect +e *ave analy1ed t*e company%s mission and vision and also proposed a ne+
mission statement for t*e company. !n t*e ,asis of secondary researc* +e *ave identified t*e
S!" analysis of t*e company and also prepared t*e five different matrices to identify t*e
strategies +*ic* governed ,y coca cola and +e also give some recommendations a,out t*e
strategies +*ic* coca cola can use in order to compete in t*e mar/et.
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In$'str* +rofile
"*e ,everage industry in Pa/istan *as gro+n over t*e time. "*e industry produces soft drin/s
-uices syrups mil/ and s0uas*es. it* a,out 234 units currently in operation t*roug*out t*e
country ,ot* upstream and do+nstream industries *ave gro+n and are flouris*ing.
"*ere are 56 ,everage plants in t*e country and t*is is one industry +*ic* is very +ell
organi1ed. 7o, oriented in nature t*e ,everage industry employees over 844444 people directly
and indirectly and also supports many ot*er up9do+n stream industries suc* as cro+n cor/s
glass ,ottles plastic s*ells sugar transport advertising and media P.E." ,ottles concentrates
etc. due to t*is industry a *uge num,er of outlets9s*ops are supported to generate +ide(spread
economic activity in t*e country.
Soft drin/s mar/et in Pa/istan is gro+ing rapidly. #nd t*e car,onated category is t*e leader in
t*e soft drin/ mar/et +it* a s*are of :5.3 ;. "*is reflects suc* a *uge mar/et to cater. "*e
,everage industry in Pa/istan *as a lot of potential and room for gro+t* and development. "*ere
e$ist a lot of opportunities for ne+ entrants and local players to e$ploit t*e untapped facets of t*e
mar/et for instance t*e energy drin/ mar/et or -uices ,y strategically positioning t*eir products
and ,y resorting to innovative and effective mar/eting strategies.
#ccording to a recent report on Pa/istani Food and 'everage Industry dated 7anuary
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certain macroeconomics factors certainly do *ave t*e potential to corrode t*is industry%s
profita,ility
Co&,an* +rofile
T-e Co!a Cola Co&,an*
"*e Coca(Cola Company >"CCC? +as first introduced ,y 7o*n Syt* Pem,erton a p*armacist in
t*e year 2@@: in #tlanta eorgia +*en *e concocted caramel(colored syrup in a t*ree(legged
,rass /ettle in *is ,ac/yard. Ae first Bdistri,uted t*e product ,y carrying it in a -ug do+n t*e
street to 7aco,%s P*armacy and customers ,oug*t t*e drin/ for five cents at t*e soda fountain.
Car,onated +ater +as teamed +it* t*e ne+ syrup +*et*er ,y accident or ot*er+ise producing a
drin/ t*at +as proclaimed Bdelicious and refres*ing a t*eme t*at continues to ec*o today
+*erever Coca(Cola is en-oyed.
Dr. Pem,erton%s partner and ,oo/(/eeper Fran/ M. o,inson suggested t*e name and penned
BCoca(Cola in t*e uni0ue flo+ing script t*at is famous +orld+ide even today.
'y t*e year 2@@: sales of Coca(Cola averaged nine drin/s per day. "*e first year Dr. Pem,erton
sold
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Company in t*e year 2
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!ur mission is to ,ring consumers 0uality refres*ments t*at anticipate and satisfy t*eir desires
and needs t*roug* modern tec*nology and inspiring employees to ,e t*e ,est t*at t*ey can
continue to provide t*e ,est products on t*e mar/et.
.ision
e are dedicated to up*olding standards +*ile maintaining t*e leaders*ip position in t*e
,everages category +*en delivering superior customer service in a *ig*ly efficient and profita,le
manner.
'r oals
+eo,le an$ r%aniational /ea$ers-i, 'uild a *ig*ly capa,le organi1ation and ,e t*e
employer of c*oice.
Co&&er!ial /ea$ers-i, Profita,ly deliver superior value to consumers & customers at
t*e optimal cost to serve.
)',,l* C-ain "o ,e t*e ,est in class consumer demand fulfillment organi1ation t*at e$ceeds customer
e$pectations *ig*est in 0uality lo+est in cost in a sustaina,le socially responsi,le manner.
,erational Ex!ellen!e Create a culture of !perational E$cellence to support
continuous improvement of our ,usiness process and systems.
)'stainabilit* Ensure t*e long term via,ility of our ,usiness ,y ,eing proactive and
innovative in protecting t*e environment and ,e recogni1ed as one of t*e most
responsi,le corporate citi1ens ,y all sta/e*olders.
Mi!roen(iron&ent
Entry ,arriers are relatively lo+ for ,everage industry t*ere is almost 4 consumer s+itc*ing cost
and very lo+ capital re0uirement. "*ere are more and more ne+ ,rands appearing in t*e mar/et
+it* usually lo+er price t*an Co/e products. Ao+ever Coca(Cola is seen not only as a ,everage
,ut also as a ,rand. It *as a very significant mar/et s*are for a long time and loyal customers are
not very li/ely to try a ne+ ,rand ,everage. "o analy1e t*e micro(environment and its factors
+e use t*e PorterJs five forces model to identify t*e e$isting industrial factors +*ic* include t*e
follo+ing
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2. "*reat of ne+ entrants
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T-e ar%ainin% +o#er of )',,liers
"*e main ingredients for soft drin/ include car,onated +ater p*osp*oric acid s+eetener and
caffeine. #ny supplier +ould not +ant to lose a *uge customer li/e Coca(Cola
i(alr* a&on% Existin% Fir&s
Currently t*e main competitor is Pepsi +*ic* also *as a +ide range of ,everage products under
its ,rand. 'ot* Coca(Cola and Pepsi are t*e predominant car,onated ,everages and commit
*eavily to sponsoring outdoor festivals and activities. #s Coca(Cola *as a longer *istory it is
advertised in a more classical approac* +*ile Pepsi tried to attract younger generation ,y using
pop stars as ,rand am,assadors. Currently Coca(Cola slig*tly topped Pepsi as t*e possessor of
t*e most G.S mar/et s*are.
http://valuationacademy.com/bargaining-power-of-suppliers/http://valuationacademy.com/competitive-rivalry-among-existing-firms/http://valuationacademy.com/bargaining-power-of-suppliers/http://valuationacademy.com/competitive-rivalry-among-existing-firms/7/24/2019 Strategic Management Project Report Sample
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)T anal*sis
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)tren%t-s
Finan!iall* stron%
!ne of t*e main strengt*s of CC'P is t*e financial strengt* of t*e company ,ecause it
is supported and controlled ,y Coca Cola International. "*erefore unli/e past no+ t*ey
can start any long term pro-ect +it*out concerning too muc* a,out finances availa,le.
#ccording to Inter,red "*e Coca Cola Company is t*e most valued>H33@5 ,illion? ,rand in t*e +orld. So t*ere is no issue of finance in CC'P.
/o*al C'sto&ers
"*e firm en-oys *aving one of t*e most loyal consumer groups. Coca Cola is en-oying a
positive image in t*e minds of t*e consumers. "*ey normally t*in/ t*at it is ,etter in
0uality as compare to ot*er competitors availa,le in t*e mar/et. .
Most extensi(e be(era%e $istrib'tion !-annel
Coca Cola serves more t*an
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ea"nesses
/ess Fo!'s on )&all Cities
"*e ma-or +ea/ness of t*e company is its distri,ution c*annel. It is one of t*e main
reasons of its slo+ progress and lo+ mar/et s*are in t*is mar/et as compared to t*e
competitor. Due to lac/ of availa,ility of t*e products and less differentiation from
competitors it *as ,ecome very difficult to capture a ,ig mar/et s*are. CC'P o+ns ,ig
s*ares in ,ig cities of Pa/istan ,ut in rural areas it lac/s ,e*ind a lot.
0tiliation of eso'r!es
"*e company is also lac/ing in utili1ation of t*e resources. People are *aving various
facilities ,ut t*ey don%t /no+ t*eir ,est use. For e$ample people +or/ing in fleet
department don%t /no+ to ma/e t*e ,est use of Fleet Management System and usually
performing tas/s in very difficult manner manually t*at can ,e easily performed ,y using
FMS.
ran$ fail'res
Plus t*e firm%s success of introducing ne+ drin/s is +ea/. Eit*er t*ey aren%t mar/eted
+ell or are not launc* after a proper mar/et survey. Many of its introduction result in
failures for e$ample Sprite 5 or Fanta Citrus.
0n$i(ersifie$ ,ro$'!t ,ortfolio
Gnli/e most company%s competitors Coca Cola is still focusing only on selling ,everage
+*ic* puts t*e firm at disadvantage. "*e overall consumption of soft drin/s is stagnating
and Coca Cola Company +ill find it *ard to penetrate to ot*er mar/ets >selling food or
snac/s? +*en it +ill *ave to sustain current level of gro+t*.
)i%nifi!ant fo!'s on !arbonate$ $rin"s
"*e ,usiness is still focusing on selling Co/e Fanta Sprite and ot*er car,onated drin/s.
"*is strategy +or/s in s*ort term as consumption of car,onated drin/s +ill gro+ in
emerging economies ,ut it +ill prove +ea/ as t*e +orld is fig*ting o,esity and is moving
to+ards consuming *ealt*ier food and drin/s.
,,ort'nities
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ottle$ #ater !ons'&,tion %ro#t-
Consumption of ,ottled +ater is e$pected to gro+ ,ot* in Pa/istan and t*e rest of t*e
+orld.
In!reasin% $e&an$ for -ealt-* foo$ an$ be(era%es
Due to many programs to fig*t o,esity demand for *ealt*y food and ,everages *as
increased drastically. "*e Coca Cola Company *as an opportunity to furt*er e$pand its
product range +it* drin/s t*at *ave lo+ amount of sugar and calories.
Enter into ne# &ar"et
# *uge part of t*e mar/et is still +aiting for first entry. Coca Cola can get t*e advantage
of first entry if it focuses on suc* areas.
A(ailabilit* of +ro$'!ts
"*e ,est opportunity for CC'P is to increase mar/et s*are t*roug* increasing t*e
availa,ility of t*e products in t*e mar/et.
T-reats
C-an%es in !ons'&er tastes
Consumers around t*e +orld ,ecome more *ealt* conscious and reduce t*eir
consumption of car,onated drin/s drin/s t*at *ave large amounts of sugar calories and
fat. "*is is t*e most serious t*reat as Coca Cola is mainly serving car,onated drin/s.
/e%al re
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"*e local manufacturers can also distur, t*e mar/et s*are due to t*eir lo+ price offerings.
For e$ample ourmet
'&ors of Co"e bein% 0n:ealt-*
"*e c*anging *ealt*(consciousness attitude of t*e mar/et could *ave a serious effect on
Coca Cola.C+M = CM+ETITI.E +FI/E MATI>
Co!aCola +e,si
Criti!al
)'!!ess
Fa!tors
ei%-t atin% ei%-te
$ )!ore
atin% ei%-te$
)!ore
Mar/et S*are
Price Comp
Financial
Position
Product )uality
Product ines
Customer
oyalty
Employees
Mar/eting
"otal
4.28
4.24
4.2