Revenue Declines

Outline

Introduction

Problem Definition

Implemented Strategy

Variables Affect the Strategy

Causal Loops

Recommendations

Slide 2

Introduction

The Coca-Cola Company is

an American multinational beverage corporation
and manufacturer, retailer and marketer of
nonalcoholic beverage.

The Problem Definitions

Coca Cola domestic revenue growth started to

decline

Slide 3

The Problem Definitions

Decrease
Increasing

Revenue

ingredient prices
Increasing
Health
Awareness
Local
Market
Saturatio
n

Slide 5

Coca Cola Strategy

Developing New Markets:

Coca Cola intended to invest approximately $4 billion into China
over the next 3 years and $5 billion into India for the next 8 years.

Developing New Products:

Coca Cola now offers more than 3,500 beveragesthree times the
number it offered a decade ago and more than 10 times the number
it offered 20 years ago.

Company Image
Coca Cola started in its products promotions, policies and programs
to inspire people to be active and make informed nutritional choices.

Slide 6

Variables affecting the Strategy

1.
2.
3.
4.
5.
6.

Developing of new markets

Developing of new products
Company Image
Ingredient Prices
Competition
Health Awareness

Slide 7

Causal Loops
Markets

Potential
Customers

R3

Recruitme
nt for new
Customers

Coca Cola
Brand Users

Competiti
on

Health
awarenes
s

Company
Image

Sales

Develop new Markets

Develop new products

R2

R1

Need for
expansi
on

Growth
Current
Market
Saturation

Profit

B1
Martial and
ingredients price

Causal Loops Diagram

Pro
fit
Management capacity

Local market
saturation limit

Time

Effect of R1 and B1

Effect of R2 and B3

Slide 9

Recommendation

Improving supply chain of Coca cola with high

technology suppliers so it can reduce the increase of
ingredient costs which is affecting the profit and growth
of the company.
Coca cola needs to expand aggressively in healthier
ranges of products; sports and energy drinks, premade
tea, bottled water and other beverages as these new
segments are growing at a rate that is faster than the
CSDs rate.

Slide 10

THANK YOU!