For this essay, you will conduct research on corporate strategies and the affect they have on the decision process. Use the same company you chose in Unit II. As you explore the decision process, cons

SWOT Analysis of Coca Cola company

Miguel Figueroa

May 5th, 2019

Columba Southern University

Introduction

Companies always need to evaluation to ensure they are in line with the requirements for them to be in market for long time and endure the challenges imposed from competition and understand the advantages they need to take to maximize on the available opportunities in order to achieve the institutional mission and vision. The SWOT analysis will cover Coca Cola as the public company of choice and analyze all the possible endeavors to better their outputs.

STRENGTHS

• Broad market

Being a global brand, Coca-Cola is internationally recognized in nearly all the countries around the world. The forms a strong basis to withstand competition in production of non –alcoholic drinks for over a long period of time without the company becoming obsolete. The company has a massive outreach and does trade its product across all the continents. Having such a broad market helps the company reputation to grow to sustainable limits thus outweighing the competitors.

• Source of employment

Coca-Cola is a top employer providing employment to more than 500,000 people worldwide. This improves their living standards by acting as source of income in distributer countries. This improves the economy of the countries where the distributors and bottling stations are located as well. Women are also employed in this company which bring about gender equality in place.

• Steady growth of revenue and income

Despite the taxation, the organic revenue of Coca-Cola company rapidly grows and the company makes profit worth enough to keep the business ongoing. This is due to a stable growth rate with time though minimizing the cost of production while maximizing the output. Indeed, the company has higher rank in terms of multicultural opportunities.

WEAKNESES

• Organization instability

A fall in sales growth and instability of the organization has led to the company’s transition from being a capital intensive through structural modification over time. This is majorly felt in Africa and Europe, where certain structural changes have been made.

• Structural changes

Refranchising plans for bottling operations across regional boundaries have negatively impacted the company’s revenue by a drastic fall yearly. This greatly affected the earnings of the company per shares as well as the topline. The more challenging weakness is that some popular supermarkets have ditched Coca-Cola in favor of other rival company and are no longer served by the company since they terminated the contracts established. This affects the product formulated to be sold at such markets.

OPPORTUNITIES

• Circular economy

The company has an opportunity to focus on circular economy, that is products being able to undergo perpetual cycle. This comes in contrary to damping the product just after first use and should be put into consideration as future model in business to make the products more sustainable.

• Revolution in opportunities

There have been new innovations in the company, for instance production of zero sugar Coca-Cola soft drink. Focusing on these innovations will promote a competitive leading score which is an added advantage in this revolutionary world of business. Consumer wants change with time, thus being in a position to adapt more often and address them accordingly can expound the growth limits of the company.

• Fresh markets

The company can still invest in countries where there is no dominance of the product and maximize on the entire benefits as previously evident in the analysis.

• Opting new products

Coca cola can opt out new products such as food and diversifying the products it offers.

• Introduction of healthy products

It can use healthy products to its stock to increase its markets and add consumers.

THREATS

• Competition

Although the Coca-Cola company is trying to improve its brand, rival companies are aiming at establishing broader ecommerce. This will pose a greater competition if it meets the consumer’s expectation. Furthermore, prioritizing on premium products by competitors may result to decline in growth of Coca-Cola company.

• Effects of recycled bottles

Criticisms have also been raised over the use of recycled materials in bottle production. Just in case this comes as a distaste to the consumers, it can result to a boycott for the products from the company heavily impacting on it.

• Sugar policy

Many countries are always in disregard for sugar and sugar tax in always higher than any other which places sugary drinks being implemented by the same policy.

• Government tax

Government are in concern for tax being paid on overseas and that can result to more taxation.

CONCLUSION

SWOT analysis in the Coca Cola company indeed covers all the aspects that affect the company. The strengths are many than the weaknesses and the opportunities can open new fields for investment and innovation. These analyses should be done annually or in every quarter as they conduct audit on the other departments.

References

Ivanov, D., Tsipoulanidis, A., & Schönberger, J. (2019). Operations and Supply Chain Strategy. In Global Supply Chain and Operations Management (pp. 81-110). Springer, Cham.

SHTAL, T. V., BURIAK, M. M., AMIRBEKULY, Y., UKUBASSOVA, G. S., KASKIN, T. T., & TOIBOLDINOVA, Z. G. (2018). Methods of analysis of the external environment of business activities. Revista ESPACIOS, 39(12).