Mission and vision of Coca Cola
The revolution of coca cola began in 1886 by Dr Johns Pemberton a pharmacist; they have become the leading soft drink company. There are more than over 700, 00 employees worldwide and coca cola head office is located in Atlanta Georgia. The company also have team of scientists, marketers and sale people in more than 200 countries. Coca cola in its first year sold only around 10 bottles per day, at the price of 5 cent. It was first tried by customers at the local Jacobs chemist. Although there have been a tremendous difference in the market and in its existence. The company achieved success with a great challenge especially in the last 2 decades, although recession affected a lot to the company. With the macro and micro environment challenges coca cola has faced and then also the company is one of the largest in this sector. By having a mission it can be easy to achieve success. Coca cola mission statement is to “refresh the world in mind and body and spirit”.
Our mission
we’re driven by three principles which are a standard for our actions and decisions:
- To refresh the world in mind, body and spirit
- To inspire moments of optimism and happiness through our brands and actions
- To create value and make a difference.
Our vision
we’ve come up with a set of goals that outline what we need to do to achieve our mission:
Coca cola as a market target have a particular targeted market, as their market strategy is to target all race and age, as they have different ranges of other products. Presently they have over 15 different brands and plus our famous Ireland deep river rock water.
Coca cola used this statement to achieve their goals in past years, although this achievement has come with a lot of challenges, this challenges are related with various factors like, political, economic, social, technological, environmental and legal factors. As these factors are external, coca cola doesn’t have the power and ability to control it as a company. However using the swot analysis strategy to combat the external factors, by critically evaluating their strength , weakness, opportunity and threats, internally and both externally either good or bad, this will allow them make a plan, which will help achieve goals of the company, once this factors are been identify.
The swot and pestle analysis can either be use on company or self, weakness and strength, the swot analysis was created by Albert Humphrey in 1960- 1970 by using many top company. Also, this analysis was created centuries after the existents of coca cola, sure 1889 when coca cola was first created, the legislations and the world has changed in so many ways. There are many of the macro environmental factors which do not exist and the world wasn’t this civilized and have lot of health issues as most food where still organically grown and the world wasn’t over populated, which make coca cola came up with their new idea statement saying the world as change around us,” taste the feeling” is their new way forward and thinking and long-time market strategy goal. This is the strategy statement below
Market strategy and target audience
“We are evolving our long-term business strategy to offers products related to the drinks. We know that consumers want to manage their sugar intake and that not everyone drinks sparkling soft drinks. That’s why we are leading with the following plans – both inside and outside the bottle:
- We’re reducing sugar and calories across many of our brands
- We’re offering more new drinks that provide benefits like nutrition and hydration
- We’re making low and no-sugar drinks the easy choice through our “Hero Zero” approach
- We’re giving people the information they need to make truly informed choices.
This campaign was created in 2016.The pestle idea was first initiated by Francis Aguilar a Harvard university professor. Now let take an evaluation of coca cola
Political Environmental Factors: politically Ireland and coca cola as maintain a very good relationship in the last 31 years, expect for the recent years, where the company president and the chief executive Muhtar Kent recently warn the government of Ireland that , it will be forced to “Riview” its Irish operation if border tariffs are introduce following the new Brexit: currently coca cola employees over 1750 people all over Ireland this could also lead to job lost an also the new sugar tax which they, have said could affect their operation in Ireland. This article was published on the 28th of July 2017. “The uncertainty of Brexit compounds the enormous pressure the [sugar] tax will have on our business and threatens our ability to continue to invest in our operations here, and to maintain and grow our direct and indirect employment levels,” this actually brings to the economic factors.
Economical Environmental Factors: the recent brexit as cause economic instability between Ireland and coca cola which could have great impact on coca cola. Also, it will have impact on Ireland economy because if coca cola pulls their operation out of Ireland it will affect Ireland, but will decline in coca cola sales as well, because if coca cola will have to be exported to Ireland is going to be quiet more expensive and the consumer are price sensitive especially, because there is competitive market with other brands that could sourced locally and at a cheaper rate. This was already seen in the American states where soda tax was raised by 3 cent in Berkley which was later adopted by many other states. It brought decline to consumption rate of coca cola products and lead consumers to option for cheaper brands.
social environmental factors : There has been a change in people life style in the recent years due to all modern diseases, the killer of them all, cancer which is said that the main cause of cancer is sugar as cancer cells feeds on sugar, and obesity as become an epidemic proportion Ireland. It is said that Ireland is one of the most obsessed country in Europe, especially among the men. Obesity is also linked with many diseases of the last few centuries. In the research that was conducted by diabetes Ireland, it is said that 283,000 people in Ireland will have diabetes by 2020, currently 207,000 is living with diabetes, this survey was conducted 2013 and in this it lives more than 15% of people in Ireland with diabetes, which is said to have increases but figures not confirmed yet. All this diseases are been down to the unhealthy life style people are living , and sugar is said to be one of the main problem of the health issue as is addictive and people consume in excess and the amount of sugar soft drinks are alarming aware. It is putting economic burden on the government and on the hse. Coca cola has been aware of the changes people are willing to make changes, so that they consider the right steps by making healthier options available.
SWOT and PESTLE analysis
Legal environmental Factors: the biggest scandal that has affected the coca cola and abroad is the discrimination employment act between the white and black employee which they were found guilty and made a huge compensation amount. The law also focuses on the overall cost of the company. Recently they were also sued over misleading advertisement on diet coke.
Environmental Factors: coca cola has been the biggest and the giant in the soft beverages industry that produce over 100 billion plastics bottle per year, they have plan recycle 50% of the bottle, in other to help environmental pollution of world, especially the ocean coca cola as been acquired of polluting the sea with their bottle after a survey taking. By the coca cola bottles and can alumnus, a plan has been put in place to recycle can’s 100%. Low carbon effect has been put in place by the government globally and this does not applies to just coca cola.
Strength: the greatest strength that coca cola as been able to main since their existence is that they have been able to main their position in the market. They have a large market share globally and especially in the soft drink beverages market sector. They face a lot of challenges that declined in the share market world-wide.
It can be stated that the weakness which is analysed in reference to the company is related with low product diversification. Pepsi has taken a smart move and also focused on diversification in the segment of snacks like Lays and kurkure. But Coca Cola is not able to consider the right move. The company is still focusing on the drink segment which has also reduced the overall sales of the company in the competitive market (Business teacher, 2018).
Also, the company has faced flak in the pat years just because of the problems related to water management. There are many groups who enhanced the law suits by taking the name of the company as due to consumption of more water in the scarce regions also. Competition with Pepsi is also immense and it can be stated that Pepsi will not give up so easily in the competitive market (Flynn and Okuonzi, 2016).
The company has the opportunity to diversify their products in the competitive market. By diversification in the health and food business will assist in bringing improvisation in the products of Coca Cola. This will also help to boost the overall revenue of the company in the competitive market. The supply chain of the company which is focusing on the distribution of the beverages should also focus on distribution of the snacks as it can help to share the overall cost of the supply chain. In the overall product portfolio of the company, it can be seen that there are many products which are not accepted by the customers in the market. The company should emphasize on marketing the products so that it can be accepted by the customers in the competitive market. By marketing, it can also be simple for the company to boost the sales and also revenue in the market (Grant, 2016).
It can be seen that the indirect competitors of the company is Starbucks, Costa coffee and café coffee day. Through these chains it can be seen that healthy competition exists in the market. Also, only of the major competitor of the company is Coca-Cola but it does not affect the overall beverage market. Also, there are healthy drinks offered in the market like real and Tropicana and energy drinks are red bull and Gatorade. These companies are grabbing the large market share of the company in the competitive market. The weakness of the company is also related with the use of pesticides or the huge consumption of the water. In this the threat is related with the rise of scarcity of water. Also, by this the company is experiencing the downfall in the overall revenue of the company in the competitive market (Telegraph, 2018).
Conclusion
It can be concluded and recommended that coca cola should look into branding their own water all over the world as one, basically given their water one name, just as coke is not as coke worldwide, the water business is growing as people are becoming more aware of their health, so they are opting for healthier options. Secondly they should take use of the opportunity to create more awareness of their healthier options, and make people more aware of their health of beverages. It can be seen that the innovation option is there but the consumer are not aware of this, from what it can be easy to gather from the people. Also, it is important to make it available world-wide, as there are rivals like PepsiCo. Lastly they should become more diversify and look beyond just drinks and look into healthy snacks.
Coca Cola HBC.2018. Coca?Cola’s new pack line-up will offer people simple choices when the government’s tax on sugar-sweetened drinks is introduced. [Online] Available from: https://ie.coca-colahellenic.com/en/our-stories/coca-colas-new-pack-line-up-will-offer-people-simple-choices-when-the-government-s-tax-on-sugar-sweetened-drinks-is-introduced/ [Accessed on 11 December 2018].
Coca Cola.2018. About us.[Online] Available from: https://www.coca-cola.co.uk/about-us/our-business [Accessed on 11 December 2018].
Flynn, A. and Okuonzi, S.A., 2016. Coca-Cola’s multifaceted threat to global public health. The Lancet, 387(113), p.25.
Grant, R.M., 2016. Contemporary strategy analysis: Text and cases edition. John Wiley & Sons.
Kokemuller, N.2018. Relation between pest and Swot.[Online] Available from: https://smallbusiness.chron.com/relationships-between-pest-swot-10083.html [Accessed on 11 December 2018].
Mindtools.2018. PEST Analysis. [Online] Available from: https://www.mindtools.com/pages/article/newTMC_09.htm# [Accessed on 11 December 2018].
The times.2018. Coca-Cola issues jobs warning over Brexit.[Online] Available from: https://www.thetimes.co.uk/article/coca-cola-issues-jobs-warning-over-brexit-rglqhc26z [Accessed on 11 December 2018].
Business teacher. 2018.SWOT ANALYSIS.[Online] Available from: https://businessteacher.org.uk/swot/coca-cola.php [Accessed on 11 December 2018].
Telegraph. 2018. Threat’ by Coca-Cola to cut investment over sugar tax.[Online] Available from: https://www.telegraph.co.uk/news/2017/11/04/revealed-threat-coca-cola-cut-investment-sugar-tax/ [Accessed on 11 December 2018].
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