In a very competitive business environment, any organization seeking to achieve its goals ought to have a formidable strategy which will enhance its competitive advantage (Pendergrast, 2000). As such, strategic management forms a core part of an organization’s business process. This paper critically analyses the strategic plan of the Coca-Cola Company. Company Background The Coca-Cola Company is the world’s leading manufacturer of syrups and non-alcoholic beverages (Khan, 2009).
With its global headquarters in Atlanta, Georgia, this company has managed to grow its branch network to cover virtually every part of the world, with a presence of at least one of its products in most of the world’s countries (Pendergrast, 2000). The company’s flagship product is the Coca-Cola drink which traces its advent way back to 1886. Founded in 1891 the Coca-Cola Company’s main customers include sports personalities, people of al walks of life, retail stores worldwide, companies, and public and private institutions.The company’s products can be used by anybody.
Its products appeal to all people (Khan, 2009). The main strategic plan of the company has centered on product differentiation, efficient marketing, corporate social responsibility; and branding (O’Donnell, 2001). With intense rivalry from Pepsi, these strategies have been majorly responsible for the company’s current success as it has sought to offer its customers what they want as opposed to what the company wants for them.As such, it has been engaged in a marketing strategy that utilized information about customer needs to come up with the products they desire and that best meet their needs.
However, there have been times when these strategic plans have failed to pay off particularly where competitors have managed to develop similar brands. Since the products are closely identical, it has been hard for the company to convince customers that its beverages are the best in the market (Khan, 2009).Mission Statement and Vision Statement As accompany that has had enormous success on the global beverages and syrups market, the Coca-Cola Company has relied a lot on its objectives for the future which are entrenched in its statements of vision and mission. Everything undertaken by the company has an inspiration in its mission, vision, and values (Khan, 2009).
Mission Statement The company’s mission is to refresh the world, inspire times and moments of optimism and joyous happiness; and to create value and so make a difference in the beverages industry (The Coca-Cola Company, 2010).Vision Statement The company’s vision for the future is to be the company where people are inspired to become the best they can be; to bring to the world quality beverage brands that predict and satisfy the desires and needs of the people; to develop a winning network of customers and suppliers; to maximize long-term returns to shareowners and enhance sustainable development for different communities; and to be a highly effective, lean, and fast-moving organization (The Coca-Cola Company, 2010). ApplicationThe company has used this mission statement and vision statement to achieve a high level of efficiency and success indifferent ways. For instance, in order to create value for its shareowners on a long-term basis, the company has been building a business that has been seeking to enhance its trademarks that include Coke and Coca-Cola (The Coca-Cola Company, 2010). This has also been the company’s ultimate commitment.
In its position as the world's largest beverage company, the Coca-Cola Company seeks to refresh the world.In order to carry out this duty, it has been developing superior non-carbonated and carbonated soft drinks (The Coca-Cola Company, 2010). In addition, it has been developing profitable non-alcoholic beverage systems that create value for the company, its bottling partners located all over the world, as well as its customers who are the main target of its strategic plan (The Coca-Cola Company, 2010). Internal and External Analysis The Coca-Cola Company has managed to use its strategies well enough to bring about success (Pendergrast, 2000).It has managed to achieve unequalled success in spite of intense competition from Pepsi; and has defied the challenges of global economic crises to remain afloat throughout its history.
Most of its past goals and objectives have been successfully met. The company has also managed to deal with changes and challenges internally and externally quite well. For instance, it has managed to remain lean by licensing bottlers across the world to make its brands on its behalf (Pendergrast, 2000).Externally, it has so well managed to deal with competition and financial hard times like the recent global economic crisis (Pendergrast, 2000).
SWOT Analysis The company’s main strengths, as mentioned earlier, are its marketing and branding approaches. The opportunities it has include continued expansion to new areas like the Middle East which is not fully served. The main weakness of the company is that it has relied on one main strategic plan – branding – which is also being used by its competitors. Threats include increased competition and negative changes in global economic conditions.
