There are two parts to this question. Please answer both as they are connected.

Strategic Planning for Coca-Cola

PART 1:

Exercise 3A: Develop an EFE Matrix for Coca-Cola

Purpose

This exercise will give you practice in developing an EFE Matrix. An EFE Matrix summarizes the results of an external audit. This is an important strategic-planning tool widely used by strategists.

Instructions

Step 1 Prepare an EFE Matrix for Coca-Cola. Refer to the Cohesion Case, if necessary, to identify external opportunities and threats. Make sure the factors you include are actionable, quantitative, comparative, and specific. Use the online sources such as IBIS WORLD, PRIVCO.

Be sure not to include strategies as opportunities; but do include as many monetary amounts, percentages, numbers, and ratios as possible.

The Cohesion Case

Headquartered in Atlanta, Georgia, Coca-Cola Company (Coke) is the worlds largest producer and distributor of beverages, marketing over 500 nonalcoholic brands in more than 200 countries. Coke has 21 billion-dollar brands, 19 of which are available in lower- and no-sugar options. Four of the top five beverages sold globally are Coke products: 1) Coca-Cola, 2) Diet Coke, 3) Fanta, and 4) Sprite. Other Coke products include Dasani waters, Fanta, Gold Peak teas and coffees, Honest Tea, Powerade sports drinks, Simply juices, Glaceau Smartwater, Sprite, and Zico coconut water. However, companys revenues for 2017 declined 15 percent, so rumblings are spreading within the firm.

Coke brands sold mostly outside the United States include Ayataka green tea in Japan, I LOHAS water in Japan, Ice Dew water in China, FUZE TEA outside the United States, Minute Maid Pulpy in Asia Pacific, Georgia coffee in Japan, and Del Valle in Latin America. Five large independent bottling companies supply Coke with 39 percent of their bottling needs, led by Coca-Cola FEMSA that supplies central Mexico and countries in Latin and South America.

Coke revenues have declined every year for nearly a decade, usually accompanied by net income declines. Since 2005, sales of diet soda in general have dropped every year, a combined 34 percent. Although Diet Coke is the weakest link in the companys whole soda lineup, the brand is still the third best-selling carbonated drink in the United States.

Environmentalists are complaining, saying Coke produces 110 million plastic bottles annually that end up in landfills and oceans. To combat this complaint, the company launched in 2018 its World Without Waste initiative. Coke needs a good strategic plan because its customer base is eroding and its shareholders want sustained 5 percent annual growth in revenues and profitsand not declinesevery year.

History

Founded in 1886, Cokes flagship product Coca-Cola was invented in 1886 by pharmacist John Pemberton in Columbus, Georgia. Coke has operated a franchised distribution system since 1889, whereby the company only produces syrup concentrate, which is then sold to various bottlers throughout the world, who hold exclusive territories.

Interestingly, the big, jolly man in the red suit with a white beard (Santa Claus), did not always look that way. In 1931, Coke paid illustrator Haddon Sundblom to create advertising images depicting a jolly, plump, red (like Coke cans) dressed, warm, friendly Santa Claus delivering toys to children. To create the new Santa ads, Sundblom used Clement Clark Moores 1822 poem A Visit from St. Nicholas (commonly called Twas the Night Before Christmas).

Cokes new Santa advertisements debuted in 1931 in magazines such as The Saturday Evening Post, National Geographic, The New Yorker, and others. Before 1931, Santa was depicted as everything from a tall gaunt man to a spooky-looking elf. He was often shown wearing a bishops robe and a Norse huntsmans animal skin. From 1931 to 1934, Coke ads featuring the new Santa Claus changed the whole worlds view of Santa; these original images of Santa are valuable works of art even today.

In 2010, Coke became the first brand to exceed 1 billion euros in annual United Kingdom grocery sales. In January 2018, in the United States, Coke introduced its slimmer 12-ounce Diet Coke can, updating the logo and offering the 35-year-old drink four new flavors: mango, cherry, blood orange, and ginger lime. Diet Coke sales have declined as more people switch to other low-calorie drinks, such as flavored fizzy water. The company said the new flavors and lookwith a different color vertical stripe for each flavor and red for plainare aimed at appealing to millennials (people ages 18 to 34). Coke tested more than 30 flavors before settling on the four new ones.

PLEASE USE CHART TO ANSWER PART 1

PART 2:

Exercise 3B: Develop a Competitive Profile Matrix for Coca-Cola

Purpose

Monitoring competitors performance and strategies is a key aspect of an external audit. This exercise is designed to give you practice in evaluating the competitive position of organizations in a given industry and assimilating that information in a CPM.

Instructions

Step 1 Turn back to the Cohesion Case and review the section on competitors. Also view online resources that compare Coca-Cola with Pepsi .Use the online sources such as IBIS WORLD, PRIVCO.

Step 2 Prepare a CPM that includes Coca-Cola, Pepsi, and Dr Pepper.

PLEASE USE CHART TO ANSWER PART 2

EXERCISE 3A: Template EFE Matrix - Coca Cola EXERCISE 3B: Template