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The Coca-Cola Company Analysis Research Paper

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Updated: Jun 5th, 2020

The Coca-Cola Company is a public limited company in the Fortune 500 companies where it currently ranks at position 57 (CNN Money, 2014). It is an international nonalcoholic beverage company, as well as a manufacturer and a marketer with its headquarters at Atlanta, Georgia. The company makes and sells syrups to various “affiliate bottlers across the world as they hold its license…the bottlers then produce the finished products and pack them in different containers before distributing them to the retail stores, restaurants, as well as beverage service distributors” (Hays, 2005, p.64).

The Coca Cola Company is the world’s largest beverage company, which owns and markets five of its dazzling soft drinks, which include Coca-cola, Fanta, Diet Coke, and Sprite (Hays, 2005). It takes a leading position in distribution of beverages across the world and in the previous year, the company reported a growth rate of about 3 percent due to high consumption of its drinks (Coca Cola, 2014). The company is now looking forward to joining forces with global organizations as it works to bring back the impulse to the business. The persistent macroeconomic challenges in 2013 posed challenges to the company, but this occurrence could not prevent it from realizing sound financial results.

In its operations, the company emits harmful gases and thus the need to protect the environment (Pendergrast, 2000). However, the company is working to reduce the emissions in the manufacturing process. Recently, they have been working hard to improve packaging materials to recover the loss of bottles and cans; that is, ensuring that more than 55 percent of cans and bottles introduced in the market are collected for reuse (Coca Cola, 2014).

The company mission statement is “To refresh the world…To inspire moments of optimism and happiness…To create value and make a difference” (Coca Cola, 2014, para. 5). However, the Coca Cola’s mission statement is quite poor since it only includes two components, and it does not mention any other value. It appears that the slogan is a mixture of the vision and the mission statement. Unfortunately, the company does not follow its mission statement and it only accomplishes less than half of its mission when ranked. Therefore, the Coca Cola’s mission statement needs to be replaced.

Apparently, some competitor companies even outsell the Coca Cola’s products in some areas, for example PepsiCo and Dr Pepper Snapple Group. However, the Coca Cola Company is in a position to outdo its competitors by advertising heavily. It also gains a competitive edge through involving itself in sports sponsorship, for instance in the Olympics and the FIFA world cup games (Raman, 2007).

The following is a SWOT analysis of the company

Strengths
-The company has the most excellent beverage products in the world
-Prevalent market share in soft drinks
-Well-built promotion and publicity
-Consumer sovereigns
Weaknesses
-Focuses on processed beverages only
– Lack of a diversified portfolio
– High leverage
– Pessimistic public
Opportunities
-Bottled water consumption growth
-High demand for health foodstuffs and drinks
– Growth of the company through acquisition
Threats
-Changes in customers tastes,
-Strong dollar
– Stiff competition in the industry.

Just like any other company, Coca Cola has its strengths, opportunities, threats, and weaknesses as shown in the above analysis. However, the Coca Cola Company remains one of the best performing companies in the world as it achieves its set goals despite many challenges in the economy. This aspect has allowed it to remain in the fortune among 500 other companies.

References

Coca Cola: Our Company. (2014). Web.

CNN Money: Fortune 500. (2014). Web.

Hays, C. (2005). The Real Thing: Truth and Power at the Coca-Cola Company. New York, NY: Random House. Web.

Pendergrast, M. (2000). For God, Country, and Coca-Cola. New York, NY: Basic Books. Web.

Raman, R. (2007). Community–Coca-Cola interface: political-anthropological concerns on corporate social responsibility. Social Analysis, 51(3), 103-106. Web.

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