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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.
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.
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
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
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
3 3 2 1 2
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
Rating 3 1 2
4 4 4
0.04
0.12
0.02
0.06
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
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
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
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
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