P5
It is vital for an organisation to examine and make changes based on internal and external factors that affect its performance because if there is anything that is steadfast and unchanging it is change itself. Change is inevitable in an organisation. So let us identify COCA-COLA’s strength and weaknesses a SWOT analysis which stands for strength, weaknesses, opportunity and threats.
STRENGTH.
Brand Equity – Coca cola with its vast global presence and its unique brand identity is definitely one of the costliest brands with the highest brand equity as suggest by interbrand which awarded coca cola the highest brand equity in 2011.
Company valuation – Coca Cola is one of the most valuable companies in the world with a valuation of around 79.2 billion dollars.
Market – Coca Cola has a vast global presence, it operates in around 200 countries across the world. Chance are wherever you go in the world your most likely to find coca cola in the market.
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Political factors – These factors determine to what extent the government may influence the economy or certain industries for example the remove of some regulations can cause some advantages or disadvantages to an organisation. Political stability, tax policies, foreign trade regulation or proper security, for example every organisation needs political stability to be able to operate smoothly.
Economic factors – These are determinants of the economic performance that directly impacts an organisation for example, levels of employment or unemployment, inflation rates, consumer confidence, cost of raw materials, investment opportunities and GDP per capita. Another example, some organisations are manufacturing their goods from China because of cheap raw materials, cheap labour and also because of its economic
The Coca-Cola Company is one of the largest soft drink corporations, manufacturers, marketers and retailers of non-alcoholic beverages based in Atlanta, USA. The company sells over 55 million beverages each day in more than 160 countries. The top consumers of Coca-Cola products by consumption per capita are Mexico, Chile, United States and Panama. The Coca-Cola Company has a 47% share of the global soft drinks market. The bestselling Coca-Cola product is “Coke”; a dark coloured soft drink based primarily on sugar, caffeine and cocoa, which is marketed as a refreshing beverage that provides an energy boost. The company has over 100 additional products, some of which are exclusive to certain countries. Some of the other popular and well known
Coca-Cola and PepsiCo are the two biggest beverage companies in the world. Both companies dominate the beverage industry and are globally recognized by a large and diverse array of consumers. Both are massive industry leaders, each with a market cap of over $150 billion dollars. The Coca-Cola Company is roughly 130 years old and is based in the United States. Coca-Cola products are sold in over 200 countries across the world and every single day billions of coke beverages are consumed. PepsiCo was also established about 125 years ago and is based in the United States. PepsiCo, since its early beginnings, has always rivaled Coca-Cola Company as the most prominent beverage company in the world. Although each of these companies have
Political factors influence organisations in many ways. Political factors can create advantages and opportunities for organisations. Conversely they can place obligations and duties on organisations. Political factors include the following types of instrument:
Political factors are basically how the government intervenes in the economy. Exactly, political factors have areas including tax policy, labor law, environmental law, trade restrictions,
Coca cola is the largest beverage company in the world with over 550 brand names. Coca cola’s product include various brands that supply carbonated beverages, diet / low calorie
Research shows Coca-Cola is home to 21 billion-dollar-brands, including four of the top five soft drinks: Coca-Cola, Diet Coke,
The article then goes on to break down each of these factors into subcategories and from there he defines the impact each factor potentially has on a business. Just to name a few, Barnat (2005) defines one of the factors as political and regulatory forces which define any restrictions and mandatory guidelines that must be met in order for an organization to function legally. In terms of environment government tends to occupy both the macro-environment and operating environment. Because of this governments have a great amount of influence on an organization’s external environment in general and as such must be included as a major factor for any organization with long or short term plans.
No matter where you live, chances are you know Coca-Cola. It is the world 's most valuable brand. One may not, however, be as familiar with their extensive product portfolio, how they work with their bottling partners or the specific actions they take every day as they relate to people and the planet.
Political: These factors influence the expansion strategies of the company. For instance, changes in tax compliance affect the operations of the company since it has to stick to the new rules. Also, trade investments affect the company’s operations in different markets (Roberts & Berg, 2012). These changes influence the patronage of the customers affecting the company growth.
It also includes but is not limited to, voting rates and trends, public opinion and activism of regulatory agencies. These are all cited within Bensouusan & Fleisher’s (2012) text discussing the benefits of PEEST when in the process of strategic decision making. Economic factors include the exchange rates, GDP rates, interest rates and so on. These are all indicators of how the government is using their reforms and implementing their goals. This factor is crucial as economic development has a direct correlation with the standard of living of a country and will affect any marketing objective a company will put in place. A prime example of this is the current global recession, which has increased unemployment and lowered average disposable income per person. Thus making marketing plans less likely to succeed. Social factors highlight an consumer behavior trends and focuses on culture and lifestyle within society. These are important when deploying a new marketing strategy or objective as a greater knowledge of the social trends allows for more understanding of the market situation. Technological includes factors such as research and development (R&D), the pace of technological innovation and more abstractly the number of colleges and universities within a region . With the recent change in the world’s view on the ecological state of the earth environmental
Coca-Cola and Pepsi companies are the dominant players in the soft drinks industry (Yoffie, 2011). The two companies manufacture drinks whose contents are relatively the same. The two companies leverage price and package to achieve differentiation. Consumers exhibit a low level of loyalty to the products of the two companies largely because their core product is similar. When soft drinks from the two companies are freely available in the market, consumers consider the price and packaging of the products when making their purchasing decision. The costs of switching products between the two companies were considerably high during the last century, but today the costs of switching products
The Coca-Cola Company is one the world’s largest beverage company that handles and markets four of the world’s top five leading soft drinks which are Coke, Diet Coke, Fanta, and Sprite. These products made Coca-Cola as the most valuable brand name worldwide and created many opportunities for the company to be successful in all facets of business performance. The company operates worldwide with the largest distribution system in the world which allows it to reach out and serve to more than two hundred countries.
In order to double up the current revenue by 2020, Coca-Cola must have the most appropriate strategy to maximize its benefit. Indeed, Coca-Cola should use the SWOT analysis to understand its internal environment. This analysis allow Coca-Cola to know its pros and cons. It also allows Coca-Cola to identify the opportunities opened to it and the threat it faced.
Key economic factors include: the general economic framework of a country, its degree of economic stability, the existence and role of capital markets, the presence of factor endowments, market size, and the existence of economic infrastructure. Factor conditions represent available inputs to the production process, such as human, physical, knowledge, and capital resources, as well as infrastructure. [See Fig. 4.1.]
Economic factors are variables that influence a company 's capacity to successfully do business. They may be helpful or harmful, and the same factor can have either a positive or negative impact depending on its current status or the type of business it is affecting. Although economic factors create the climate in which a business operates, the success or failure of any company also strongly depends on its own resourcefulness and ability to adapt to these external economic factors.