Strategic Management: External Analysis 1
Strategic Management
MGT499
Module 2
Strategic Management: External Analysis
(Coca-Cola Brings You to the World)
Case Assignment
FOR: Dr. Debra Louis
(Core Professor)
From: William E. Lopez-Valentin
Date: February 8, 2010
TUI University
Strategic Management: External Analysis 2
Introduction
Coca-Cola wasfirst sold in 1886 in a small drugstore in Atlanta. The average sales was 9 drinks a day. Since then things have changed considerably and now sold 1.3 trillion of goods a day. The Coca-Cola is the largest beverage company in the world. Coca-Cola sold 4 of the 5 best-selling soft drink brands worldwide: Coke, Diet Coke, Fanta and Sprite. Coca-Cola produces over 400 brands among soft drinks, waters,juices, teas and coffees worldwide.
Coca-Cola markets its products in over 200 countries, and in each of these countries has been established as part of the community as a local business that creates jobs and develops cultural and environmental initiatives.
Coca-Cola Company in 2005 estimated that directly or indirectly employs a total of more than eight million people worldwide. Coca-Colabottling companies have become trusted members of the community that have been established and which have always been involved with the support of education, development of youth programs and local initiatives.
Coca-Cola External Analysis
Coca-Cola: Challenges and Opportunities
While the West’s economic crisis and its impact on the rest of the world weigh in their sector, Muhtar Kent insists onmoving towards an ambitious goal: to increase the group’s annual revenues and over three hundred independent bottlers of U.S. $650,000 million today to over billion by 2020. In constant currency, this means 54% in twelve years.
To achieve this, Coca-Cola will focus on what the executive defined as a “global rebalancing” which will unfold in that time. Its characteristics are higher fuel costs,food and primary inputs-despite the withdrawal began in September 2007, while rapidly urbanizing economies as expansive (perhaps not so much after 2008) as China, India, Brazil and others. By the same token, the middle class will be built around a billion to its ranks. Kent admits that “the turmoil will
Strategic Management: External Analysis 3
frequent, almost normal in the coming years. Isover its head “. “This does not mean that everything is negative because, in today’s world, every gust front presupposes tailwind. Until December 2008, by the way, the world’s largest maker of soft drinks and related products was little affected directly by the recession of economies of central or peripheral cooling. The balance of the August-October quarter, first under the new mandate, showeda healthy increase in sales (9%) (Mercado Magazine, Jan 2009). In addition, growth in emerging markets has overcompensated setbacks in US-Canada and Western Europe -that will generate $500 million in savings, and market penetration of certain developments (Zero Energy) will keep current account deficits now and 2011. Until, there is real hope for later.
Set the focus
Without abandoning itslong-term optimism, Kent avoids the temptation to gild the pill on realities that are hitting the major stock exchanges and companies worldwide. That includes Coca-Cola, whose shares have lost a third of its value between February and November last. Referring to a meeting with Benjamin Bernanke in October, the shared management positions then made “no more” by the Federal Reserve chairman. “The U.S.economy (noted Kent) could emerge from the crisis stronger, by a number of reasons. I firmly believe that, in times like these, we must not sit and wait events. Turbulence, however, requires fixed focus on the things that matter, drainage or avoiding duplication of resources, capital and labor.”
Kent successfully led operations in Russia, while the economy imploded in 1997/8. He also managed…
