SELECT BUSINESS AND TECHNOLOGY COLLEGE

DEPARTMENT OF MANAGMENT

ASSIGNMENT OF : STRATEGIC MANAGEMENT

Group Name……………………............ ID N0

1) GEMECHU OLJIRA 10179/15

2) ABERA EJETA 10144/15

3) ABOMSA BANTI 10146/15

4) BURTUKAN GIRMA 10151/15

5) DERASE ALAMAYO 10173/15

6) DIRIBA LEMU 10180/15

Summited to: (PH.D)

DATE AGUST 06 2023

1.THE MISSION STATEMENT OF THE COCA-COLA
COMPANY
The Mission Statement of the Coca-Cola Company

Our mission statement is to maximize share owner value over time.

In order to achieve this mission, we must create value for all the constraints we serve,
including our consumers, our customers, our bottlers, and our communities. The Coca-
Cola Company creates value by executing comprehensive business strategy guided by
six key beliefs:

1. Consumer demand drives everything we do.

2. Brand Coca-Cola is the core of our business

3. We will serve consumers a broad selection of the nonalcoholic ready-to-drink

beverages they want to drink through out the day.

4. We will be the best marketers in the world.

5. We will think and act locally.

6. We will lead as a model corporate citizen.

The ultimate objectives of tour business strategy are to increase volume, expand our
share of worldwide nonalcoholic ready to drink beverages sales, maximize our long-
term cash flows, and create economic value added by improving economic profit.

The Coca-Cola system has more than 16 million customers around the world that sells
or serves our products directly to consumers. We keenly focus on enhancing value for
these customers and helping them grow their beverage businesses. We strive to
understand each customer’s business and needs, whether that customer is a
sophisticate retailer in a developed market a kiosk owner in an emerging market.

Nearly 6 million people in the world are potential consumers of our company’s products.
Ultimately, our success in achieving our mission depends on our ability to satisfy more
of their beverage consumption demands and our ability to add value for customers. We
achieve this when we place the right products in the right markets at the right time.

Coca-Cola Mission Statement History

Coca-Cola’s mission statement has indeed evolved over time, reflecting
the changing goals and aspirations of the company. Below is a grouped
outline of Coca-Cola’s mission statement history, organized from the most
recent to the oldest:

 Present Mission Statement

“To refresh the world in mind, body, and spirit, to inspire moments of
optimism and happiness through our brands and actions, and to create
value and make a difference.“
In recent years, Coca-Cola’s mission statement has focused on the idea of
refreshing the world and bringing moments of happiness and optimism.
The company aims to create value and make a positive impact through its
brands and actions.

 2000s – 2010s
“To refresh the world in mind, body, and spirit, and inspire moments of
optimism through our brands and actions.“
During this period, Coca-Cola emphasized the importance of refreshing the
world in mind, body, and spirit. The mission statement highlighted the
company’s desire to inspire optimism through its brands and actions.

 1990s – 2000s
“To benefit and refresh everyone who is touched by our business.“
In this era, Coca-Cola aimed to benefit and refresh everyone who came
into contact with its business. The mission statement emphasized the
company’s commitment to creating a positive experience for its
stakeholders.

 1980s – 1990s
“To create value and make a difference.“
In this period, Coca-Cola focused on the concepts of creating value and
making a difference. The mission statement highlighted the company’s
commitment to generating value for its customers and stakeholders.

It’s important to note that mission statements can vary slightly depending
on the source and the specific year in question. However, the overarching
themes of refreshing the world, inspiring optimism, creating value, and
making a difference have been consistent throughout Coca-Cola’s mission
statement history.

 .there fore it’s full of nine components that means full of those
Customers, Products/Services, Markets, Technology, Concern for growth,
Philosophy, Self-Concept, Concern for Image, and Concern for Employees.

2. External Factor Evaluation Matrix for coca cola company

External Factor Evaluation (EFE) Matrix is a strategy tool used to examine

the company’s external environment and identify the available
opportunities and threats.

Opportunities
1. Great number of effective brands: The Coca-Cola organization has
bunches of brands that proceed and seek after outstanding
achievement.
2. A gap between contenders: There is an incredible opportunity for
the company to defeat the gap between them and their contenders.
3. Notice of disliked items: There is a chance for the Coca-Cola
organization to promote the items that are not famous among the
customers, it is useful for the company to stabilize low benefit
creating items.
4. Specialty market could be engaged: The company sets sight on
specialty spaces of the market that creates and improves the deals of
the products inside the company.
5. Innovation: Innovation ought to be presented by the company to
improve the presentation and effectiveness of the work.
6. The new activities’ acknowledgment in the organization: The
acknowledgment of the new undertakings in the organization has
gazed at the modern level that expands the interest for the
company’s item.
7. Packaging: The plans made by the company identifying with the
cola packaging are generally profitable for the company for
improvement.
8. Solid and differentiated product: Due to a solid and widened
product portfolio, the company is not affected by any n

Threats
1. Expansion popular of substitutes: The increase in the interest of
the creation of the non-carbonated items like juices and nectars and
suchlike can influence the competency of the company.
2. Economic changes: When the global market changes due to
inflation rates, the overall pricing of Coca-Cola will be affected.
3. Wavering individuals showing the unwanted side of the item: The
achievements and deals of the Coca-Cola Company were
compromised by wavering individuals showing the unwanted side of
the product.
4. The factor of claims: The factor of claims is dangerous for the
company, it causes a decrease in riches, popularity, and influences
the deals of the company.
5. Health-conscious individuals: Due to the factor of health-
conscious individuals’ behavior, the company can be affected
seriously and influences its deals.
6. Competitors especially Pepsi: The significant threat for the
company is its rival, especially Pepsi, which is selling most similar
products like Coca-Cola, and the different kinds of the marked juices,
coffee, and milk are threats for the company.
7. Limited water supply: The company will be drastically affected, it
will bear a direct effect of reduced supply and increased costs
 because of limited water supplies due to climate change, which will
inevitably be passed on through the supply chain.

On account of Coca-Cola Company, the total weighted score is 3.5,

which is better than expected and implies that the Coca-Cola
Company procedures are viable and are making the most of existing
opportunities alongside limiting the likely unfavorable impacts of
external threats.

3. Internal Factor Evaluation Matrix for coca cola company

The Internal Factor (IFE) Matrix is a strategic management tool for

identifying a company’s main strengths and weaknesses in key areas. It
also serves as a basis for identifying and evaluating relationships between
those components.

Strengths

1. Strong brand: Coca-Cola is one of the strongest brands in the world,

with a strength index ranking in the top five. The Coca-Cola
Company controls a significant portion of the soft drink industry in
the United States.
2. Strong marketing and advertising of products: One of the main
reasons the Coca-Cola brand is so well-known and recognized is due
to the company’s promotional campaign. People search for the
bright red Coca-Cola truck as it travels through their towns and
cities every year around Christmas.
3. Products are available almost globally: The Coca-Cola business is
nearly global, and its main product is well-known and widely
consumed all over the world, except in Cuba and North Korea. This
reality is expressed in the way the business is organized and
structured. At the same time, the organization aims to respond
quickly to the specific needs of regional markets, and its structure
must reflect this.
4. Healthy financial position in the HR department: Coca-Cola puts a
lot of money into its human resources department. Employees are
paid well, working conditions are decent, and they have a plan in
place to improve in this sector, according to their sustainability
report. Other fields where they make good use of their funds are
marketing and advertising.
5. Brand equity: Coca-Cola has a high level of market equality, as it is
one of the world’s top ten most valuable brands.
6. Competent workforce: Building products that people enjoy and
making the most of ourselves as a business and as individuals gives
us a sense of pride.
7. Wide variety of products: Coca-Cola products are segmented
successfully because they cater to identifiable broad segments, and
the company’s brand and history make it easy for them to reach
representatives of the segments they are trying to sell to.
8. Taste differentiation: Coca-Cola has been effective in
differentiating its products for various consumer groups. When you
come across a Coca-Cola product, the first thing you will note is the
various packaging used by the various labels

Weaknesses
1. High debts: Due to acquisitions, Coca-Cola had a high debt ratio.
Coca-Cola’s debt level, interest rates, and borrowing cost greatly
inflated as a result of the nearly $8 billion of debt gained from CCE’s
acquisition.
2. Health issues: Carbonated drinks are one of the major sources of
sugar intake. It results in two grave health issues – obesity and
diabetes. Coca-Cola is the biggest manufacturer of carbonated
beverages. Many health experts have prohibited the use of these soft
drinks. It is a controversial issue for the company. However, Coca-
Cola has not devised any health alternative or solution for this
problem yet.
3. Some products have low sales: The margins for retailers are quite
high; therefore, many retailers do not want to carry a new product.
4. Weak image in India: The Center of Science and Environment (CSE)
of India accused the company of using pesticide residue in the
products that they sell in India.
5. Negative publicity: The lawsuit alleges that Coca-Cola engages in
false advertising by paying researchers, medical professionals, and
others to contradict independent scientific evidence about the
adverse health effects of drinking sugar-sweetened beverages.
6. Taste similarity: Coca-Cola and Pepsi are almost the same color,
contain the same amount of carbon dioxide, and nearly taste the
 same. Previously, they both relied on natural coconut extracts, but
now they both rely on
7. \artificial flavors and man-made components.

Coca-Cola has a 2.53 average score, indicating that the business is in

average shape; it has some flaws that trigger issues in its operations,
but it also has some strengths that are not being used to their full
potential.