Strategic Plan

Executive Summary

The strategic plan of Coca Cola Company will address the following: forces, trends, and issues that can potentially impact the implementation of the company's final strategy. This could include horizontal integration, concentric diversification, and joint ventures. The plan will outline many areas such implementation of the plan, critical factors that could impact the plan, personnel, and how to create the perfect company. The plan will cover Coca Cola's ability to adapt to the different operating environments that they may face and address how they can capitalize on their strengths. Strengths and weaknesses will be addressed and an analysis will be done on the company's financials.

Company Overview

Coca Cola Company was founded by John Pemberton in 1886 by a simple form of curiosity. One day John stirred up a mixture of caramel-colored liquid and brought it to the pharmacy market down the street from his house. The drink was mixed with carbonated water and offered to the customers as a drink. The customers were impressed with the drink and liked the taste, so it was offered to the customers at 5 cents a glass (Coca Cola, 2009). That experiment brought the company to where they are today, sponsoring such organizations as the Olympic Games, FIFA, World Cup, NASCAR, and many more (Coca Cola, 2009). Within two centuries the company had already produced more than 400 different brands. The company continually reaches out to their customers and continues to uphold the loyalty of their customers (Coca Cola, 2009).

The Coca Cola Company primarily operated in the beverage industry but works closely with the restaurant, fast food and health industries ensuring that there are products available to a wide customer base. Approximately 74% of the company's products are sold outside of the United States (Scribd, 2009). The company works in such an expanded industry, it gives them room for continued opportunities and growth. Currently the company is divided into six operating groups. The company has over 92,400 associates worldwide and operated in more than 200 countries (Coca Cola, 2009). The company has gained the lead over competitors such as Pepsi, Dr. Pepper and Snapple producing over 113.18 billion (Yahoo! Finance, 2009).

Vision Statement

Coca Cola's vision covers every aspect of the company and serves as a guideline for their mission. It states specific goals that must be attained in order for the company's continued growth.

1. People: Be a great place to work where people can be inspired to be the best they can be.

2. Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs.

3. Partners: Nurture a winning network of customers and suppliers, together we can create mutual enduring value.

4. Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities.

5. Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities.

6. Productivity: Be a highly effective, lean and fast moving organization (Coca Cola, 2009).

Mission Statement

The Coca Cola Company exists to benefit and refresh everyone who is touched by our business (Coca Cola, 2009). The company's mission statement is broken down into three different concepts. The company wants to refresh the world, inspire moments of optimism and happiness, and create value to make a difference (Coca Cola, 2009).

Environmental Analysis

One of Coca Cola's strongest competencies has always been their advertising market being able to come up with advertising campaigns that are recognizable by everyone. Two of the most recognized slogans the company came up with are "Coke is it" and "It's the real thing", making it a slogan that everyone recognizes. The marketing team comes up with these slogans in hopes of gaining the public's interest in buying the product. Without having to hear the name, or see the product, the customer can see the ads with polar bears and have recognition of the Coke commercial (Aziz, 2009). This type of brand recognition is critical for brand names like Coke for their continued growth into new markets and existing ones.

Even though the company has a strong status around the world, the company has not been able to gain the sales needed in North America. During the fiscal year of 2006, this market only generated 30% revenue for Coca Cola. Part of the declining sales was because of weak sparkling beverage trends.

The Coca Cola Company operates under a decentralized management structure, which has been proven to be both a strength and weakness for the company. Under this type of management scheme, each regional manager has the ability to set their own goals to meet the demands they feel are needed. This type of management style is not always a faulty one. In some countries decentralized management structures have proven to be successful. This type of management style seems to bring on problems when there are economically disadvantaged areas because the company cannot gain the support needed to support their weak market and gain new business (Aziz, 2009).

Over the years the Coca Cola has also shown a decline in cash from operating activities. This can have a negative impact on the company when it comes to investments. The company will need a sound plan in order to implement any type of grand strategy that would encompass joint ventures, or horizontal integration. In order for the company to participate in any mergers, they would need to be financially fit to do so. Mergers are not cheap and if a company does not have the money, they may have to borrow it, and Coca Cola does not typically manage their business like that. The company does not carry around a lot of debt and in this economy it would not be a good time to start.

Technological Factors

Technology can have a great impact on a company, especially in today's technological world. This environment encompasses the material and machines a company uses to manufacture its goods and services, as well as the cost of said technology, how quickly the technology changes, how receptive employee are to new technologies, and any innovations that might occur (Sethia, 2008). Over the years technology has grown and tools are available to help Coca Cola that helps the company track inventory, product

...