Business Project of Coca-Cola: Strategy & Business Analysis

Executive summary:

Coca-Cola is a large food and beverage company. A company that specializes in various manufacturing and processing activities and that runs its operations all over the world. To evaluate the recent challenges and the problems that affect the business progress, my suggestions and analysis are very valuable. The firm offers various types of foods and beverages that require adjusting the entire business practices and determining the overall era of the business. By adding greater innovation and maintaining clear roles, the firm’s activities will be classified. Adjusting the roles of the business and maintaining the best policies, the business connections will be valuable to make the change.

The Coca-Cola company has its brand name, but due to different reasons, the business will lose its strengths and decrease its entire progress as it observes the business competencies. Coca-Cola company’s headquarters is in the United States, which improves the stable relations of the business and generates better practices regarding instant directions. So, the business values and progress directly depend on long-term planning as it relies on change and maintains clear characteristics regarding the positive eras of the planning. Coca-Cola has a strong reputation, which is damaged by this impact, and the behavior of the company is not suitable.

One of the recent challenges faced by the Coca-Cola company is the announcement or warning of raising the prices of the product in the United Kingdom market. It is a recent issue that affects business performance and decreases organizational strengths regarding essential values. Deals with the best values and maintains the positive era of the planning, the firm’s decisions can be strongly connected. The recent challenge of the company affects both internal and external stakeholders, which affects the business decisions and decreases the innovation towards the appropriate plans. Stakeholders are the most effective part of the management of the business.

Porter’s five forces and the internal growth analysis are the key models that are discussed in this term to evaluate the external as well as internal analysis of the business. Coca-Cola company’s current issue of rising the higher prices affects the environmental aspects of the business, which is why the company will provide consistent approaches and analyze the impact of change on the given markets.  So, the business will provide consistent and reliable success results. These models are very creative in understanding the impact of the recent environment and its entire stability.

I provide different recommendations to the Coca-Cola organization as it addresses the recent issue and the broader challenge facing the business. As the business consultant, I recommend different strategies or methods in the last section of the report that guide the company to tackle this challenging situation and increase the overall performance of the firm. Coca-Cola is an American multinational firm; therefore, the rules and regulations governing the business's practices will be aligned with the business's representations. So, all of the suggestions will increase the business performance and manage the entire practices regarding the current knowledge of the firm.

Introduction:

In this business project report, the Coca-Cola company is selected for the consultancy of the business operations and the analysis of the environment. Coca-Cola is an international growth and drink firm that was founded in the year 1892. It is the company best known as the producer of the Coca-Cola ad to improve the beverage industry. To boost the overall manufacturing and concentration of alcoholic beverages, the entire practices of the business will be stable. Even the firm is stocked in the NYSE and becomes a part of the DIJA with the relevant indexes. It is related to the industry of beverages and was founded by John Smith. The headquarters of the Coca-Cola company is in Atlanta, U.S.

The most recent issue affecting Coca-Cola is the issue of a warning about the higher prices to its customers with different networks. Customers are very shocked about the news of the company related to the higher prices that they face in their daily as well as occasional purchases. The sales of the company and its business reputation are facing a decline due to the sudden announcement of the warning to the customers. So, it is the most shocking and recent issue that will impact the business consultancy and the greater or the reliable innovation. All of these practices will be tackled to track the change and maintain better decisions that can be updated in the future.

The evaluation of stakeholder analysis and the impact of the business challenge on the environment of the firm is also represented in this report. As a consultant of the Coca-Cola firm, I would recommend some strategies to resolve the issues that appear as the most recent challenge in the company.

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Recent problems:

Coca-Cola issues a warning to its customers about the higher prices:

The recent challenge to the Coca-Cola company about its higher prices for its products. Coca-Cola is the company that issued a warning to its customers to raise the prices this year by approximately 12%. It is the big news from the perspective of shocking for the customers who are loyal customers of the company. This recent issue will affect the business strengths and the customer’s purchasing level. Most of the customers are connected with the company due to its lower prices and the best quality of the Coca-Cola company as compared to its key competitors. By determining the business decisions and generating greater innovation, the company’s strengths will be transformed.

1. Sales decrease:

Coca-Cola product prices rise, so the customer’s purchasing level becomes low, and the sales of the firm are affected. Lower sales will result in lower profits, and the performance of the company will decrease for several months. It is the issue that arises from this recent challenge of the company that affects the valuable plan of the business.

2. Rising the substitute products:

After taking the warning of the rising prices as 12%, customers move to the competitors like PepsiCo. Because it is the major substitute for Coca-Cola in the same price range. So, the threat of substitutes appears to affect the business values and the entire practices regarding the particular changes. Coca-Cola’s competitors can be supportive or reorganized due to this bad situation for the company.

3. Missing the chance to gain additional profit:

Sometimes, loyal customers purchase in larger quantities either on an occasional basis or at the retailer's discretion. But as the warning about higher prices, the retailers or loyal customers also move to the substitutes of Coca-Cola, as not want to gain additional profits. The additional profit of Coca-Cola also fluctuated after the shocking news of raising the prices by 12% instantly in the UK market.

4. Customer value perception gets down:

The customers who have a strong interest in the company also let down their value because Coca-Cola is famous for only two things: its low price range and the best quality of its products. Due to the rising prices, the customer’s strengths and their entire values decrease, which affects the broad changes of the business.

5. Demand for the products decreases:

The demand for the Coca-Cola company’s products decreased after receiving the warning of a 12% rise in prices this year. Customers move to other brands that provide the same quality at lower prices, especially during this higher cost inflation period, when a penny is required to survive for the common man in the world.

6. Competitors arise:

After taking advantage of this negative situation, there are a lot of competitors that arise in the market with the development of new or innovative strategies. Offering discounts and gift cards are the strategies used by the competitors of Coca-Cola to compete and tackle the negative situation.

Purpose:

The purpose of this report on business consultancy is to analyze and develop the proper investigation of the announcement of drink giants as raising the overall prices for the products of the Coca-Cola company in the global market, but especially targeting the maker to the United Kingdom. This main or recent issue affects the progress of a firm and its sales. The business consultancy repeat will recommend that how the firm can resolve the recent issue of higher prices to achieve success and take the loyal customers in the specific maker to the UK. Leading the demand of customers and generating higher sales are the suggestions that resolve the current problem of the business.

Stakeholder analysis:

Stakeholders of the company are the most integral part that boosts the change and builds the entire practice. Without the existence of stakeholders, the company can’t see the entire operation. To get the possible era of the planning and maintain the broad changes, the evaluation of stakeholders is important. The motivation as well as satisfaction of the stakeholders are important to achieve higher success of the business that relates to a wide variety of people and generates instant networks. To lead the company, there is a group of individuals who create the loyalty and the plans, which are stakeholders. They represent the firm in front of others and build a strong image of the company.

By raising the overall prices of the Coca-Cola company, the associated parties are negatively impacted. The customers, employees, and other people would lose their interest and happiness in dealing with the large organizational success criteria. By adding greater innovation and determining the broad era of planning, the stakeholders’ satisfaction is an important part of the business success that increases the reputation of the company and the generation of particular strengths toward the active eras of learning.

Stakeholders:

Various stakeholders of the company exist that affect the performance of the business and generate effective decisions, such as the impacts of internal stakeholders and external ones. Internal stakeholders are those that represent the company’s operations internally, but the external stakeholders are spread across the boundary of the company. For the Coca-Cola company, the internal stakeholders are their customers, managers, owners, and the teams. But the external ones are the suppliers and customers. NGOs and the government, with the external linkers. So, the performance of the business will be affected to get the higher change and get clear changes. With the higher prices of the Coca-Cola company, the satisfaction of the stakeholders decreases, which affects the broader changes and the entire categories of the business.

To lead the change and generate the proper analysis of the company’s prices in the commitment era, the business values become aware. Media and local communities are also the external stakeholders that increase the business roles and generate valuable strengths regarding the business policies, such as making consistent decisions. It helps to increase the possible success of the business that can be observed to make all the decisions and generating the best values regarding the instant change. These innovative eras will be classified to get better and more reliable planning for instant decisions.

Matrix:

From the matrix of stakeholders, power and interest are two factors that represent the company's business decisions and generate a broad range of planning regarding the instant change. To achieve the proper success and manage the challenges of the business, the stakeholder matrix helps to take effective roles. Raising the cost and price of the products will lose the image of Coca-Cola among the customers at some time, but it has an impact on the stakeholders, about losing power and interest in purchasing the entire product.

Shareholders and the government have higher power and lower interest towards the stakeholder value, but the chairman and founder have both higher power as well as interest due to the impact of the rising overall prices of the Coca-Cola company’s products. NGOs that supported or promoted the company have low interest and power levels because they are not interested in this type of challenge. The general public has a higher interest, but they can’t do it as it is the policy of the company.

Secondary data evaluation:

Porter’s forces:

Porter’s five forces help the company to evaluate the external environment and analyze the position of the firm regarding consistent knowledge. By adding greater innovation and maintaining better strengths, the firm’s decisions can be managed to get consistent and broad values regarding instant change. These activities will be classified to determine the possible and sustainable trends. Porter’s five forces analyze the competitive strengths and the position of the company in the market. Due to the recent issue of raising the prices of the company, the management will take the best actions to allocate resources and update the current activities in the valuable trends.

Porter’s five forces improve the organizational success and maintain the specific operations that can be observed in the clear resources. The bargaining power of buyers, suppliers, rivalry among the competitors, threats of new entrants, and suppliers are the broad terms that increase the stability of the business and generate broad value towards the clear performance of the firm. With the referral era of planning and maintaining the specific, the business consistency can be organized.

Porter’s five forces help to take the image of the business and evaluate the current synopsis in the entire market. Coca-Cola is the company that faces the issue of charging higher prices as a warning to customers in the UK. So, the buyers and suppliers are end negatively affected by the lower sales that resulted from this warning of the company. This analysis represents which factors are necessary to produce greater and more competent advancements regarding the broad eras of planning. By adding organizational strengths and maintaining clear resources, the business values become attached.

Porter's five forces.

1. The bargaining power of suppliers:

It is a weak power because the number of suppliers is high, and the cost of switching for the Coca-Cola company is low. While the Coca-Cola company can easily switch from one supplier to another. The company can lead to losses for any of the suppliers, as forward integration is a distant possibility for most of its suppliers. The number of suppliers is still high; the main factors that have come to light regarding the bargaining power will be effective. The large number of suppliers and the use of forward integration, which is difficult for the suppliers, are the entire processes that will increase the business planning and generate resources.

2. The bargaining power of buyers:

The bargaining power of individual customers in the case of Coca-Cola is low. Because individual customers generally buy small volumes, and they are not properly concentrated on the specific markets, whether it is low or not. There is a low differentiation between Pepsi and Coca-Cola that the business values as making clear and reliable changes. The customers of Coca-Cola are not price sensitive but due to this inflation period, when the level of income of people is limited, then they are really sensitive in the matter of the prices. So, the bargaining power of customers is weak in terms to aware them of the higher prices of the company.

3. Threat of new entrants:

In the industry of beverages and foods, various factors demotivate or discourage new brands from entering or growing their brands. There is a higher amount of investment or capital is required to initiate the food and beverage business in the global market or the UK due to the large size of the population. So, Coca-Cola does not see the threat of any new entrants due to the required skilled labor and the more capital targeting the company’s customers. It requires both capital and skilled human resources to manage the entire practices of the business.

4. Threat of substitutes:

It is a serious threat because the main substitutes for Coca-Cola products are fruit juices, Pepsi, and hot and cold beverages. Various substitutes for Coca-Cola products ensure the low cost of switching. By adding consistent value and maintaining the possible era of success, the business transformation can be organized to get the possible and reliable ways of thinking. Due to the threat from the substitute being low, the Coca-Cola company will provide a consistent experience of quality.

5. Competitive rivalry:

Coca-Cola and PepsiCo are the major players in the industry. Due to the announcement of the drink giant Coca-Cola giving a warning of a rise in prices of 12% in the UK market, the sales and demand level of PepsiCo has increased. Because it is the leading player in the competitive world that affects the performance of Coca-Cola. The Coca-Cola company maintains its appearance and visibility on social media sites to get the competitive advantage as referred to PepsiCo.

So, all of these forces indicate that raising the overall prices of the products is not a good situation for Coca-Cola, especially in this lower-income period. So, the force of rivalry among existing players becomes low, affecting the possible situations and the broad planning thinking. Coca-Cola company maintains the proper appearance that increases business planning and generates the best era of planning regarding the broad changing terms.

Unlike typical companies, the strategies of the Coca-Cola company are very stable, increasing the business strengths, weaknesses, and opportunities for learning. The process of business is changing as it is already known about what the facts and figures are that impact ng the business values, consistency, and the convenient practices of the firm towards the change of the business terms. Porter’s forces evaluate the business competencies and provide the proper framework that can increase the organizational image of the business. The process of business success is changing, which will raise the organizational growth and update the current practices related to the broad eras of planning through consistent experience.

Value chain analysis:

The process of value chain analyses for the recent issue of Coca-Cola as rising prices by issuing the warning affects its primary as well as secondary or supporting activities. The company should create a strong internal system that will improve business consistency.

Primary activities:

The value chain analysis of the Coca-Cola company outlines the primary activities as essential for the compelling of business instructions and the greater or valuable process of the business authorities. To compel the value chain analysis, the primary activities directly ensure the business characteristics.

1. Inbound logistics:

Coca-Cola receives, stores, and manages the products to reach the customers by using different operational activities, that are the inbound logistics. The company consists of different departments that focus on the quality and the packaging of the business. Due to the more skilled workers in inbound logistics, the company raised the prices by 12% in the UK. Ten thousand farmers work for the supply chain of Coca-Cola, and the firm regards them as partners. The Coca-Cola company value chain promotes environmentally friendly workplace activities and broad policies related to the business's valuable plans.

2. Operations:

The selected company Coca-Cola is the most reorganized worldwide beverage brand that operates in more than 200 countries. Although a global business, the firm has a tradition of working through the use of local channels that add the bottling partners and make them stay loyal to the company and gain more success. The operation activities in the Coca-Cola value chain include the headquarters administration and the development of the company’s brand behavior regarding the brand marketing initiatives.

3. Outbound logistics:

The delivery and distribution process of the company’s products to the customer is the outbound logistics. It refers to the activities that involve the customer’s services. Coca-Cola managed to reach the top with services of higher quality and ensured that there is no limited stock or shortage of the products that are available in the market. The company creates the packaging as well as Coca-Cola merchandise for the time deliveries of the final product to the customers and the vendors.

4. Marketing and sales:

The Coca-Cola company has achieved its current success and become the world’s leading beverage perform from an innovative marketing strategy. The firm has been advertising its products with promotions, merchandising, and sponsorships to get media attention for a long period. Coca-Cola's value chain analysis helps the firm to increase sales in all the 200+ countries through broad partnerships with other brands in the stores or supermarkets. To build the vending machines and generate the proper investigation, the business values can be consistent experiences to track the possible eras of the planning, as doing the best and the most reliable activities regarding the change.

5. Services:

The company’s higher prices also affect its services as the primary activity. The firm is well-known for its higher quality of service because there is proper customer care, where the firm gives answers to queries and tries to solve the issues that might be unpleasant to the target market, as well as highly efficient call centers. The value chain of Coca-Cola uses the primary activities to increase the loyalty of its customers.

Support activities:

For the value chain analysis of Coca-Cola, there is a supporting activity tackled that improves the business resources and manages the consistent values.

1. Infrastructure:

The infrastructure of the Coca-Cola company is very visible and efficient, which increases the productivity of the company and raises the overall planning regarding the broad eras of the business success. To accomplish the business objectives and generate the best roles, the business strengths will be leveraged to identify possible actions.

2. Human resource management:

Coca-Cola Company has highly skilled and talented employees who are restoring the business image and increasing the overall image of the business. To raise the overall performance of the firm and maintain the greater changes, the business competencies can be carried out. With the higher prices, the employees’ working nature also changes, affecting the performance of the Coca-Cola Company.

3. Technology development:

The Coca-Cola firm uses advanced technology in the research and development era to produce effective quality and reliable services for customers. Customers of the business are an essential part that increases the business value and maintains the greater decisions towards the active eras of the plans. To boost the advanced technology, the Coca-Cola company’s strengths will be reliable. Using social media tools also motivates the firm to reach the customer’s specifications and implement greater innovation regarding the broad eras of planning.

4. Procurement:

Coca-Cola invests a lot in fish products and the process of transforming the raw materials related to the given competencies. The company produces raw materials from thousands of farmers and fixed suppliers to develop a trusting relationship with the suppliers. To create a more efficient program, the management of Coca-Cola Company develops better practices that can increase the business resources and generate actionable reliability plans. This department of the company is responsible for analyzing the change and finding the areas that are necessary to tackle the change. Using advanced technology and maintaining better practices, the firm’s transformation will be valued to achieve the proper success regarding the consistent eras of learning.

So, the value chain analysis of the Coca-Cola company develops the long-term performance and evaluates the internal environmental analysis of the business to determine the strengths of the business and manage the greater processes; the business roles can be transformed or organized. Various functions and activities help to track the business policies and generate greater decisions. When dealing with the business's proper plans and determining a consistent experience, the firm’s transparency becomes rare. This company boosts organizational strengths and manages the convenient eras of learning by getting the best and the most valuable planning. So, Coca-Cola is an American multinational company that increases the business functions and generates greater awareness towards appropriate learning.

Suggestions and summary:

Suggestions:

Different recommendations that I give to the firm, all of these are evaluated, and the firm issues the warning to all the customer giants to raise the prices of the drinks and other products a 12% increase in the global market. So, the market of the UK is already facing higher inflation after several situations will be challenged after this shocking news about Coca-Cola.

I would suggest some recommendations to Coca-Cola for managing this challenge and increasing the business value, as referring to the areas shortly. Coca-Cola is a large company, which is why it is facing different issues, but issuing the warning of raising the price raises awareness in customers about being shocked. The competitors of the company will benefit from this negative announcement and steal the customers. So, as the consultant for business growth, I gave some suggestions to the Coca-Cola company on dealing with consistent experiences with the customers and being a loyal brand that no one can substitute with other products.

The recent challenge affects the organizational success and manages the internal decisions towards the change. To develop the proper strengths and maintain higher effectiveness, the business can be motivated to get instant plans. These changes will be classified to get the change. To transform the organizational values and maintain the greater values, the business transformation will be organized in competitive times.

• The company should offer discount prices and offerings in the form of bundles to resolve the issue of higher prices for a single item. The customers will buy the products in the form of bundles at the normal price range, as compared to purchasing a single product. It is the strategy that helps the Coca-Cola company to raise sales and make better decisions towards the business values. To accomplish the business values and manage a consistent experience, the firm’s activities will be classified.
• The Coca-Cola company should focus on the packaging and the tagline of the product that attracts customers rather than going to their substitute. Putting the low cost of switching customers also indicates the Coca-Cola company’s efforts to be loyal to the brand. With strong loyalty to the brand, the management of the business develops the best activities that can be sustainable and manages the possible era of change regarding the consistent experience towards proper planning.
• As per reason of higher prices of Coca-Cola products, the company missed the chance to gain additional profit. By adding business decisions and generating the perfect areas of planning, the business values can be tackled. The Coca-Cola company should give coupons and gift cards to customers to tackle the negative situation of higher prices. By developing strong relationships with retailers, the Coca-Cola Company can improve business practices regarding clear and sustainable decisions.
• As the consultant of the business, I suggest the Coca-Cola company develop the proper plan and manage the broad era of the planning regarding the instant change of the business values. Learning from the business perspectives and maintaining greater innovation, the company gets the value of the customers who are strong and the most valuable referrals. Customers of the company must be valued to track the possible era of the change regarding accurate planning.
• The Coca-Cola company should add seasonal and event-based campaigns that help to raise the demand for Coca-Cola products among customers in the UK market. The company develops effective strategies to be loyal to the brand and manage the current practices by doing consistent and valuable eras of learning regarding the change of the business practices. The firm should take the proper discussions as it refers to the business transformation and implement the particular era of learning.
• The company should develop a strong competitive advantage that increases business planning and motivates the customers to be loyal to the brand. Coca-Cola should focus on higher quality and developing more stock-keeping units for those customers who can’t afford the rise of a 12% increase in the existing products. They can use small SKUs for loyalty and the stay connecting with the brand. It helps to raise the awareness of the brand and increase business consistency in the competitive market.

Conclusion:

In this report, there is a strong business consultancy plan is defined that increases the business values and generates greater innovation. To conclude the basic terms and improve the organizational practices, the firm’s values will be stable and motivated to get the strongly attached eras. Coca-Cola company increased the prices of its products by issuing a warning to customers in the UK which is a recent challenge for the company. The external and internal environment of Coca-Cola was also impacted by these decisions affecting the business strengths and decreasing the entire growth valuable terms of the business. Coca-Cola is a large American multinational organization raise the business direction and generates greater policies as it deals with business resources.

Porter’s five forces and the value chain analysis are the key models that represent the environmental analysis of Coca-Cola as impacted by the recent challenge. The stakeholders of the company are also impacted by the current issue of the business and they analyze their power and interest regarding the business consistency towards the proper and reliable valuable activities. As the consultant of the business of Coca-Cola company, I give different recommendations to the firm about managing this challenge in the global market.t this business report aims to clarify the impact of higher the prices after announcement, and effect on business direction or its performance of the business.

Coca-Cola is the most important part that increases the organizational practices and refers to tracking the clear change towards the business roles.  Leading the business plans and maintaining the organizational success, the business values can be taking place. Business consultants improve the organizational functions and manage the reliable values to get the change.