Table of Contents
2.0 External Business Environment Analysis.
PESTLE Analysis for Coca Cola.
3.0 Internal Business Environment Analysis.
Value chain analysis for Coca-Cola.
4.0 Competitive Environment Analysis.
Porter’s Five Forces Analysis for Coca-Cola.
5.0 Efficiency of Coca-Cola strategy.
Coca-Cola’s strengths and weaknesses.
Coca-Cola’s opportunities and threats.
Coca-Cola’s strategic growth.
The term ‘Strategic management’ means the management of the resources of the organization to meet the objectives and goals of that business organization (David, 2016). In addition, strategic management is involved to set business objectives, analyze the business competitive environment, evaluate business strategies, and ensure other management systems of the business organization. According to Bhattacharyya (2016), strategic management is very significant because it helps business organizations to identify their risks, future opportunities, and market trends. That is why it is important for businesses to conduct strategic analysis to develop and implement effective strategies. Before developing and implement strategies a business needs to analyze its both external and internal environment along with competitive situations.
This assignment first analyzes the external environment of Coca-Cola using the PESTLE analysis tool. Then, this paper conducts a competitive analysis for Coca-Cola using Porter’s Five Forces model and conducts an internal analysis for Coca-Cola using Porter’s Value Chain model. Then, this paper analyzes the efficiency of Coca-Cola strategies using SWOT and Ansoff’s growth matrix. Finally, this paper concludes the finding and recommend to Coca-Cola.
2.0 External Business Environment Analysis
As Saleem (2017) notes, the term ‘Business environment’ is the marketing term that refers to both business internal and external factors and competitive forces that affect the ability of the organizations to maintain as well as create better customer relations. Capon (2016) said that the business environment is the most significant aspect of any kind of business because it helps business organizations to identify the opportunities and risks, copes with the changes, and helps to develop business performance. According to Johns (2018), the business external environment includes all the outside factors which affect the business operation both positively and negatively.
The external environment of a business can be analyzed using the PESTLE tool (David, 2016). According to Thomas (2017), PESTLE is a common tool that is used by the business organization to analyze the external environment factors of a business. PESTLE analysis tool concentrates on political, economic, social, technological, legal, and environmental factors that have a great impact on the productivity and performance of the business (Kotler, 2015).
Kotler (2015) said PESTLE analysis gives an easy-to-use and simple framework that includes cross-functional skills and expertise. This is one of the effective tools to identify business potential threats and develop strategic thinking for businesses. Thomas (2017) stated that this tool provides a mechanism to define and exploit new opportunities, assess the implication of entering new markets in both domestic and international platforms. However, David (2016) argued that information can be oversimplified in decision making using this tool, and the process has to be applied on a regular basis to improve its effectiveness. It is also time-consuming and cost-effective to access to quality external information that may raise questions against the effectiveness of this tool (Kotler, 2015).
PESTLE Analysis for Coca Cola
Political factors: Several government policies (such as unrest, violence, political stability, government laws or policies- tax policy, trade policy, and employment law) are included by political factors (Kotler, 2015). Coca-Cola is operating its business in both developed and developing countries. Thus, several political issues of those developed and developing countries impact Coca-Cola’s business (Coca-Cola, 2017). In addition, its business is impacted negatively on its supply chain management because of the violence, unrest, and political stability of third world countries. Moreover, many countries’ slower growth of the economy and restricted laws are influencing the profits and revenue of Coca-Cola.
Economic factors: Economic factors include a business’s economic environment such as economic volatility, interest rate, exchange rate, inflation rate, and other fiscal policies of a country (Kotler, 2015). The business performance of Coca-Cola is influenced by several economic factors. Coca-Cola is now operating its business in many countries. According to Thomas (2017), many countries’ increased tax rate is affecting the profit of Coca-Cola. The economic volatility in different countries affects the buying power of the customers that has a great impact on the sales of Coca-Cola……………..