The Coca-Cola Company announced in 2019 that it has completed the acquisition of Costa Limited from Whitbread

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The Coca-Cola Company announced in 2019 that it has completed the acquisition of Costa Limited from Whitbread PLC. The $4.9 billion transaction follows approval from regulatory authorities in the European Union and China.

Costa, which has operations in more than 30 countries, gives Coca-Cola a significant footprint in the global coffee business. Worldwide, the coffee segment is growing 6% annually. Costa has a scalable platform across multiple formats and channels, from the existing Costa Express vending system to opportunities to introduce ready-to-drink products.

"We see great opportunities for value creation through the combination of Costa's capabilities and Coca-Cola's marketing expertise and global reach," said James Quincey, CEO of The Coca-Cola Company. "Our vision is to use the strong Costa platform to expand our portfolio in the growing coffee category."

"We wish our friends and colleagues at Costa all the very best for their future success," said Alison Brittain, Whitbread Chief Executive. "Whitbread acquired Costa 23 years ago, when it had only 39 shops. Costa has grown to become a leading, international coffee brand, and Coca-Cola is the right partner to take Costa to the next stage of expansion."

Answer 2 questions:

1)Carry out a PESTEL or a SWOT analysis of Coca Cola. Discuss two of the most significant factors you have identified, then discuss the implications that these two elements have on the successful strategic change?Suggest corporate and business strategies to address the identified challenges and opportunities.

2) Discuss the reasons why change is much more likely to cause conflict and resistance for Costa Coffee than small-scale changes and explain how the application of the force-field analysis can help Costa to manage change? Organisational culture and style of leadership can have a considerable influence on Coca Cola's strategy, discuss the benefits and consequences that these two parts have on a radical change programme.