A XXXXXXXXXXwords individual paper that discusses the strategy and change program for one company (based on the group assignment) in a changing environment. Each student is expected to select one...

Strategic Development in Coca Cola         2
STRATEGIC DEVELOPMENT IN COCA COLA
Table of Contents
Introduction    3
Core Problem Analysis    3
Financial Objectives of Coca Cola    4
Strategist’s Vision    5
Internal Analysis    6
Company’s Mission    6
Business Model of Coca Cola    7
Competitive Advantages    8
External Analysis    8
PEST Trends & Development    8
Porter’s Five Forces Analysis    9
Confrontation Matrix    10
Strategic Options & Strategic Selections    10
Strategic Implementation    11
Contingency Plan    11
Conclusion & Recommendation    12
References    13
Introduction
Strategy development is one of the most important aspects for the exponential growth that has to be considered in the present business environment. Strategy is a plan of action that can effectively serve to the goals and apprehensions of the organisation. It is concerned with the deployment of resources for the organisation in terms of realising certain objectives and achieve goals set by the organisation (Tran, 2019). This governs the way various departments in the organisation will operate with the contextual aspects for achieving the goals of organisation. Strategy is a significant prospect to elaborate the unique value proposition of the organisation that is offered to the customers and elements that contribute towards stepping stones in gaining competitive advantage for a company in the industry (Xiao, 2019).
The essential prospect of developing a strategy is to ensure that the customers are aware about the products and the services offered and the products and services are ahead of the other competitors in the market. The purpose of this particular report is to focus on the strategies taken up by the well-known beverage company Coca-Cola. This report shall also throw light upon the transition and other associated trajectories in terms of strategic implementation for becoming a competitive company in the beverage industry. The entire report will concentrate on the strategic vision and strategic implementation based on the internal analysis and external analysis of the organisation Coca-Cola. It shall also summarise the context of strategic options and the related strategic selections which are feasible, acceptable and suitable.
Core Problem Analysis
Food and beverage industry has the biggest assets in the current business aspects that has contributed towards an effective part of the global GDP. In the recent period Global Business has perceived an ever-increasing investment in the beverage industry. In this aspect it is contextual to understand the modern prospects and develop effective strategies to gain the competitive advantages in the beverage industry. Coca-Cola is one of the most popular brands in the beverage industry (Zhang et al., 2020). It is the leading manufacturer and distributor of non-alcoholic beverages that produces more than 400 beverage brands. The company has a cohesive network with a sophisticated distribution system across the globe.
The strategic aspect of the organisation concentrates on adopting tools that are relevant for future business predictions and focuses on a strategy that enhances the market share and achieves the business goals ahead of the competitors. In this prospect, it is contextual to make a brief report about the problems that are presently faced by the products of the beverage industry and more specifically the challenges faced by Coca-Cola (Tien et al., 2020). The changing lifestyle of the consumers have been contemplated by changed food and beverage habits. The products of the beverage industry and more specifically Coca-Cola has faced the medicinal challenge in the recent past.
The company has also been sued for the components that is used in its products. During the 20th century the company mentioned the use of cocaine in its formula. However, the formula was later revised and substituted with caffeine. The prospect of using sugar in the products was also a challenging prospect which was eventually contemplated by the introduction of diet formula with a low sugar content (Štofová, 2020). So, the company had to contemplate with certain strategic goals in order to continue to be an organisation that will be providing quality products to the valuable customers. Strategic comprehensions must select and retain professional people for the organisation that was mostly contemplated by the strategic implementation of effective Human Resource Management. Projecting an outstanding corporate image to satisfy the customers through extraordinary service and excellent tactical and operational support.
Financial Objectives of Coca Cola
The financial objectives of the organisation Coca-Cola are in accordance with the aspects of profitability and an increased revenue that is contemplated by increase in the selling of the drinks. The accounting standards of the Coca-Cola is in accordance with the GAAP standards. The revenue is made by selling the drinks and the revenue is relatively easy to recognise. In terms of the recognition analysis, it is figured out by financial analysis in terms of goodwill (Singaram, 2020). The significant context of goodwill is contemplated by their balance sheet in terms of the acquisition policies. So, the financial objectives of the organisation are not only constituted by an effective increase in revenue but also contemplated by the significant increase in goodwill.
The company is also focusing to expand its scale which contemplates being a financial objective and developing strategies to consider a fair value for the acquired company. It has been focussing on the intellectual property rights that mark the distinguished aspects from its competitors. The financial objectives also focus on an increased acquisition objective (Serodio, 2020). This focuses to reduce the risk in terms of understanding the financial objectives of the organisation. In this prospect, it is effective to mention that the acquisition as a part of the financial objectives can be apprehended in terms of the product diversification strategy of the organisation (Sen, 2020). The organisation also proposes to have a strong advantage in order to ensure a strategic implementation of innovation and combine its entrepreneurial spirit and ability to innovate with reach, resources and expertise. It is obvious to understand the effective change in the revenue of the company as contemplated by its financial strategies.
Figure 1: Revenue (Source: About Coca-Cola)
The revenue of Coca-Cola company has significantly increased from 2018 to 2021 even though there was a sharp fall in revenue in 2020 but it had gained its momentum after 2020.
Profitability is another major financial objective of the organisation. The gross profit has increased during the last 3 years. (Monteiro et al., 2022). This particularly indicates that even though Coca Cola was experiencing an increasing trend in their revenue and sales before the pandemic. If we consider the gross profit margin and net profit margin, we can considerably find that the net profit margin has significantly dived down (Meresa et al., 2020).
Figure 2: Gross & Net Profit (Source: About Coca-Cola)
Strategist’s Vision
The strategic problems that have been discussed in the contemplated issues focuses on significant challenges and threats that must be cohesively addressed with better strategic development. It is cohesive to understand that Coca-Cola has been affected by the pandemic as well as the context of health challenges that has been a considerable aspect which requires an effective product management (Lomachenko et al., 2020).
The existing strategy of Coca-Cola is a cost leadership strategy that has been successful in its implementation. But new problems require new solutions and hence, they are needed to be addressed with a new set of strategies. The main risk that the company is facing is the alternatives and the competitors in the market. A lack of product diversity and the expansion of the organisation Pepsi has proved that the cost leadership strategy has been easily duplicated. In this aspect Coca-Cola leads to focus on a differentiation strategy that is cohesive not only in terms of its production that needs to stand out of the crowd but a strategy to dominate the market (Lee et al., 2020).
This strategy implementation focuses on the leadership of global water stewardship with a legacy of ambition and partnership to enhance the context of sustainability management in the industry. So, the contemplative issues that needs to be addressed in the strategy implementation in order to meet the gaps in the organisations must focus on meeting the challenges faced by the organisation. Sustainability management and the attitude towards the environment would effectively provide the company to establish the most suitable beverage portfolio and grow in a rapidly changing market (Lee, 2019).
Strategies must contemplate with new product diversity that not only focuses on health challenges and medicinal challenges but also understands the dominant pattern in the market with its potential to expand and grow. The changing financial variables of the company need to establish a form of contemplation of the risk abortion strategy with a financial perspective to achieve the short-term financial objectives and eliminate the negative trend in the key profitability indicators (Grindrod, 2020). It is relevant to mention the associated strategies that must focus on Customer Management and lead a market of customer retention through innovative technology which helps in achieving consumer engagement and retaining loyal customers.
Internal Analysis
Strength & Weakness
Coca-Cola is known for its unique brand proposition and it is the most selling drinks in the history. This is undoubtedly one of the most renowned brands with a high brand value and is presently sold in more than 200 countries. It is estimated that there is 1.9 billion solving per day 2023 it has more than 500 new products that is being sold globally. This particular company is considered as one of the most emotionally connected brands and is associated with happiness and a has a strong customer loyalty.
The aggressive competition of Pepsi which is the biggest rival of the company Coca-Cola. The company has a low product diversification compared to that of its competitive Pepsi that has launched many snacks items like Lays and Kurkure. Coca-Cola is lagging in this segment and it gives Pepsi Laboratories over Coca-Cola. Carbonated drinks are often related with obesity and diabetes. This is a controversial issue company which has contemplated this company to face several law suits. The company’s operation relay heavily on technology expertise of third parties which is another weakness of the company.
Company’s Mission
The mission statement of the organisation Coca-Cola focuses on “to refresh the world” and “inspire moments of optimism and happiness creating value and making the difference”. So, the strategic prospects in the mission statement accomplishes the context of the product that is being provided to the customer.
The mission of Coca-Cola is not just creating value...