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Coca-Cola

Dela Cruz, Gana, Hernandez, Ramos C., Ramos J.

History

1886 - invention of Coke by pharmasist, John Stith Pemberton in Atlanta Georgia 1893 - Coca cola trademark is patented 1894 - Joseph Bidderman put coke in bottles 1906 - Coca cola was distributed outside the country 1961 - Sprite was introduced in the market 1985 Introduction of New Coke

Coca-Cola Mission
Our Roadmap starts with our mission, which is enduring. It declares our purpose as a company and serves as the standard against which we weigh our actions and decisions.

To refresh the world... To inspire moments of optimism and happiness... To create value and make a difference.

Coca-Cola Vision
Our vision serves as the framework for our Roadmap and guides every aspect of our business by describing what we need to accomplish in order to continue achieving sustainable, quality growth. People: Be a great place to work where people are inspired to be the best they can be. Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs. Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value. Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities. Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities. Productivity: Be a highly effective, lean and fast-moving organization.

Pepsi Mission
Our mission is to be the world's premier consumer products company focused on convenient foods and beverages. We seek to produce financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity.

Pepsi Vision
PepsiCo's responsibility is to continually improve all aspects of the world in which we operate environment, social, economic - creating a better tomorrow than today.

Our vision is put into action through programs and a focus on environmental stewardship, activities to benefit society, and a commitment to build shareholder value by making PepsiCo a truly sustainable company.

External Factor Evaluation (EFE) Matrix

An EFE Matrix allows strategists to summarize and evaluate economic, social, cultural, demographic and other kinds of information. Each factor receives a weight that ranges from 0.0 (not important) to 1.0 (very important)

This indicates the relative importance of that factor to being successful in the firm's industry.
It is then multiplied to a rating of 1-4 to obtain a weighted score.

EXTERNAL FACTORS: Opportunities

Growth through acquisitions Expansion of product range Increasing beverage consumption in emerging markets Brand name recognition Growing fast food market Bottling industry investments Opening in market for healthy beverages Increase in bottled water drinking End of Nestle-Coca-cola venture

EXTERNAL FACTORS: Threats

Competition from PepsiCo and Cadbury Schweppes PLC Trend towards eating and drinking healthy Increasing costs of raw materials and manufacturing costs Low value of dollar Increasing market of PepsiCo Threat from substitutes Banning of softdrinks in public schools Decrease in sales in North America and Pacific Asia Warning labels on products

Opportunities

Weight

Rating

Weighted Score

Growth through acquisitions


Expansion of product range Increasing beverage consumption in emerging markets Brand name recognition Growing fast food market Bottling industry investments Opening in market for healthy beverages Increase in bottled water drinking End of Nestle-Coca-cola venture Threats Competition from PepsiCo and Cadbury Schweppes PLC Trend towards eating and drinking healthy Increasing costs of raw materials and manufacturing costs Low value of dollar Increasing market of PepsiCo

0.11
0.09 0.08 0.08 0.07 0.05 0.04 0.02 0.02

3
1 2 4 4 4 3 3 1

0.33
0.09 0.16 0.32 0.28 0.20 0.12 0.06 0.02

0.09 0.07 0.06 0.06 0.05

3 3 2 1 2

0.27 0.21 0.12 0.06 0.10

Threat of Substitutes
Banning of softdrinks in public schools Decrease in sales in North America and Pacific Asia Stricter label guidelines

0.04
0.03 0.03 0.01

3
2 3 1

0.12
0.06 0.09 0.01

Opportunities Growth through acquisitions Expansion of product range Increasing beverage consumption in emerging markets Brand name recognition Growing fast food market Bottling industry investments

Weight 0.11 0.09 0.08

Rating 3 1 2

Weighted Score 0.33 0.09 0.16

0.08 0.07 0.05

4 4 4

0.32 0.28 0.20

Opening in market for healthy beverages


Increase in bottled water drinking

0.04

0.12

0.02

0.06

End of Nestle-Coca-cola venture

0.02

0.02

Threats Competition from PepsiCo and Cadbury Schweppes PLC Trend towards eating and drinking healthy Increasing costs of raw materials and manufacturing costs Low value of dollar Increasing market of PepsiCo

Weight 0.09 0.07 0.06

Rating Weighted Score 3 3 2 0.27 0.21 0.12

0.06 0.05

1 2

0.06 0.10

Threat of Substitutes
Banning of soft drinks in public schools

0.04
0.03

3
2

0.12
0.06

Decrease in sales in North America and Pacific Asia Stricter label guidelines
Total

0.03 0.01
1

3 1

0.09 0.01
2.62

Coca-Cola in the Philippines


Opportunities Threats

Hot 2013 Summer doubles drinking water demand Fastest economic growth in 3 years 5.1% increase in private consumption

Local beverage companies are expanding and competing International competitors' brands being imported into the country

Current Strategies
Maintain and develop core global carbonated soft drink brands

Assure that the trademark brand is and always will be relevant

Keep eyes open for immediate consumption opportunities o Intensive advertising o Presence in restaurants

Current Strategies
Maintain and develop other core brands

Currently, the Coca-Cola Company owns or licenses over 400 brands of noncarbonated drinks

Develop transformational wellness platforms Entrance into the wellness industry, with focus on selling tea, juice, soy, and enhanced hydration products

Current Strategies
High degree of adaptation and modification against a backdrop of stagnating sales addition of new products into its portfolio introduction of products like Coke Zero, Coke Lite, etc. Embracing virtual world

iCoke - campaign run by the company and used to promote its online contests o Earn points and redeem rewards

Corporate Social Responsibility


"Corporate responsibility is not just good for CocaCola, but for the whole world, too. Protecting resources, saving energy and encouraging recycling are serious challenges. If we all play our part in meeting them, everybody will benefit."

- Coke Corporate Social Responsibility, UK

References

Manila Bulletin Mon, May 6, 2013 "Hotter summer doubles water demand"

"Philippines Economic Growth Surprises", Wall Street Journal May 30, 2013, 1:36 a.m. ET Puravankara, D. (2007). Strategic Analysis of the CocaCola Company. British Columbia: Simon Fraser University.

http://www.businessinsider.com/coca-cola-vs-pepsitimeline-2013-1?op=1