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The Coca-Cola Company

I. Executive Summary

On May 8, 1886, the Coca-Cola mixture arose from a local pharmacist in Atlanta, Georgia, named Dr.John Stith Pemberton. He invented the syrup for Coca-Cola to create a medicine that could help relieve headaches; he fused different chemicals such as water, extracts from the coca leaf, kola nut, and sugar. He brought a jug of his final product to Jacob’s Pharmacy to take some samples. Fortunately, it was labeled “excellent” and then was sold as a soda fountain drink for five cents per glass. After working on it, Dr. Pemberton concluded that it can alleviate indigestion and support having a refreshing feeling. However, Dr. Pemberton never thought of the beverage’s potentials he produced. Hence, he sold allocations of his business to different business partners and, before his death, sold his excess interest and secret formula to a businessman, Mr. Asa G. Candler, who started and founded the Coca-Cola Company in 1892. Up until now, Coca-Cola continues its "delicious and refreshing" theme of providing refreshments to its customers (The Coca-Cola Company, 2021).

According to Foster (2021), since 2014, Coca-Cola has been one of the most famous soft drinks in the United States. However, rivalries within this industry are inevitable due to numerous developing beverages. The carbonated soft drink (CSD) market is constantly dominated by three competitors: Coca-Cola Company, PepsiCo, and Keurig Dr. Pepper. Each company markets a substantial amount of brands, with Coca-Cola Company having a bigger market share as it continues to outsell other emerging brands. The company provides more than 500 brands in over 200 countries. Moreover, Coca-Cola’s net operating revenues during the last three years are the following: in 2018, it obtained $34,300; in 2019, $37,266; in 2020, $33,014 (The Coca-Cola Company, 2021). Thus, the company has to cope with the forces and trends that will determine its overall business in the future to continue to flourish over the following years and beyond.

In this paper, an in-depth view of Coca-Cola Company has been studied to further understand and analyze its business. It comprises several sections in line with various topics that provide vital conclusions for the attainment of the company. Accordingly, through the initial survey of Internal Factor Evaluation (IFE) Matrix and External Factor Evaluation (EFE) Matrix, the company’s strengths, weaknesses, opportunities, and threats were identified. Further, with the use of the Competitive Profile Matrix (CPM), it has shown that Coca-Cola is the most competitive company among its rivalries, which are Pepsi and Dr. Pepper, indicating that it has the highest key success factors in the industry. Moreover, the Boston Consulting Group (BCG) Matrix and Internal-External (IE) Matrix were utilized to determine what beneficial strategies that Coca-Cola must apply. Based on the IE Matrix, the company should go for Grow and Build Strategies. Also, the Grand Strategy Matrix and Strategic Position and Action Evaluation (SPACE) Matrix depicted that Coca-Cola is a relatively stable industry and has a strong competitive position in the market with rapid sales growth, indicating that an Aggressive Strategy is the most appropriate strategy that the company should implement. In addition to these matrices, a SWOT Analysis was used to distinguish four types of strategies by integrating the internal and external factors that are affecting its overall progression. Lastly, the Quantitative Strategies Planning Matrix (QSPM) has established the most effective strategies given by prior matrices.

With regards to several formulated strategies, the Coca-Cola Company needs to focus on market penetration, product development, and horizontal integration to strengthen and maximize its internal and external factors, and boost its comprehensive performance in the industry. The indicated strategies may have unavoidable changes to happen after many years, but with the suitable and timely execution of the Coca-Cola Company, it has the potential to maintain its brand image and name.

II. Internal Assessment

A. Corporate Profile

Headquarters (Abroad): Atlanta 

Philippines (Local): Coca-Cola Philippines – Head Office

Address: 4/F Kings Court 2, 2129 Chino Roces Avenue Makati City, NCR Second District 1550, Pasig City, Metro Manila, Philippines

Coca-Cola is a brand that is known across the world. Holding the record of almost 51% of the worldwide market shares. Produces the world’s most favorite carbonated drinks starting from the famous Coca-Cola classic up to Sprite. People are so fond of consuming these drinks that it was reported to have more than a billion numbers of consumers per day and still counting. The United States has an approximately 800,000,000 total number of consumed soft drinks per year. The prominent brand style is among the reasons why Coca-Cola has become well-known. The red and white logo can be recognized by almost all kinds of races. As soon as they can get a glimpse at the logo, Coca-Cola soft drinks would quickly come into their minds. With this, successes lead the company to become the largest leading distributor of concentrates and syrup mixtures. They do not relax for their triumphs; they always work to be ready for the future (Amin et al., 2014).

Moreover, Coca-Cola does not only cater to selling soft drinks. Connecting and satisfying the thirst of their consumers is Coca-Cola’s utmost concern. As a solution, they expanded their reach for their customers by selling a variety of beverages such as coffees, teas, energy drinks, and many more. In addition, to have a stronger ally, they have also partnered with different companies that help people and animals worldwide. Examples are World Wild Fund (WWF), United States Agency for International Development (USAID), American Red Cross, World Open Forum, and the like. This is their way of giving back to the environment and people to achieve a goal of building a sustainable world, a company that cares for the future (The Coca-Cola Company, 2021).

To continue the triumph, Coca-Cola Company has merged with the bottling business to lessen their bottling expenses which was also a great strategy. They have incorporated to cover bottling for the whole United States with the bottling business of Mr. Thomas and Mr. Whitehead. In 1899, they affixed their partnership with each other. Rapid growth made the company further the bottling partnerships with owned and consolidated companies offering bottling services to be able to produce worldwide and continue to have a higher revenue rate (Vault, 2021). 

B. Company Vision and Mission

Coca-Cola Vision

Become the best total global beverage leader, generating sustainable economic, social, and environmental value by managing innovative, winning business models with the best employees in the world.

Coca-Cola Mission

Satisfy our beverage consumers with excellence.

C. Corporate Officers

D. Product Line

Coca-Cola serves over 500 brands in over 200 countries, and there are more than 3,500+ beverages world frames brands given here.

E. Internal Factor Evaluation Matrix

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

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.

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.

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.

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.

Brand equity: Coca-Cola  has a high level of market equality, as it is one of the world's top ten most  valuable brands.

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.

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.

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

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.

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.

Some products have low sales: The margins for retailers are quite high;  therefore, many retailers do not want to carry a new product.

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.

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.

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 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.

III. External Assessment

A. Porter’s Model Analysis

Porter's Model Analysis is a strategic analysis tool that helps to analyze some critical forces affecting the level of competition in the industry. Porter's Model Analysis is named after its developer Michael E. Porter, its five forces are the bargaining power of suppliers, the bargaining power of buyers, the threat of new entrants, the threat of substitutes, and the competitive rivalry between the existing players. Coca-Cola is the leading brand in the beverages sector and also has a global presence, its major competitor in the industry is Pepsi, and these forces help on how the Coca-Cola Company builds a sustainable competitive advantage in the beverage industry.

PORTER’S MODEL ANALYSIS OF COCA-COLA

Bargaining Power of Suppliers

Many companies would not want to lose a huge customer like Coca-Cola.

Coca-Cola has a large number of suppliers on the market.

There are small to moderately large sizes of individual suppliers.

The switching costs for Coca-Cola are not so high that is why it likely has the largest customer of any of these suppliers.

The manufacturing company needs them.

Bargaining Power of Buyers

The buyers can compare different alternatives easily with the other brands.

There are their main competitors, like Pepsi, that almost taste the same as Coca-Cola.

Consumers can buy new or more popular beverages than Coca-Cola.

There are a lot of buyers that are loyal to Coca-Cola. 

The buyers are sensitive to price change. 

There are a lot of choices between different brands. 

Coca-Cola has a number of customers in supermarkets, grocery, and convenience stores, and even in restaurants.

Some people prefer not to buy carbonated beverages because of their negative effects on our health. 

Threat of New Entrants

More brands are appearing in the market just like the Oishi products, and Zest-O products which are one of the leading food and beverages companies here in the Philippines that usually have lower costs than the Coca-Cola products.

There are companies that change their existing products' quality by improving their product features to be able to give customer satisfaction and have lower price costs than Coca-Cola.

Coca-Cola products have a very significant market share for a long time which is why the possibility of the threat of new entry is low. Also, there are customers that are loyal to the brand Coca-Cola that is why the customers are not likely to try a new brand beverage.  

Threat of Substitutes

There are many substitute brands of Coca-Cola in the market that are also good and with cheaper prices like the different beverages that we can see in any store and market, just like Zest-O products. We all know that this company became one of the famous brands because of its non-carbonated fruit juices which are made from a wide variety of fruits, including oranges, apples, grapes, pineapples, mangoes, and so forth. Also, they branched out some of their products into manufacturing soda, and this is called fruit soda that includes the local flavors of calamansi and dalandan, and pomelo which are also popular with children. However, Coca-Cola gives people a different satisfaction than this other cheaper brand.

Competitive Rivalry between the Existing Players

The main competitor or rival of Coca-Cola is the Pepsi brand which is currently in the second place of the top brands of carbonated beverages today. The Great Cola Wars began in the 1980s where the battle for dominance between Coca-Cola and the Pepsi brand started (Little, 2019).

There are a lot of beverage brands in the market that becomes popular just like the top 10 most popular soft drinks which are: Coca-Cola, Pepsi, Diet Coke, Dr. Pepper, Mountain Dew, Sprite, Diet Pepsi, Coke Zero, Fanta and Mountain Dew because of their different and unique flavors (Foster, 2021).

B. External Factor Evaluation Matrix

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

Great number of effective brands: The Coca-Cola organization has  bunches of brands that proceed and seek after outstanding achievement.

A gap between contenders: There is an incredible  opportunity for the company to defeat the gap between them and their  contenders. 

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.

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.

Innovation: Innovation ought to be  presented by the company to improve the presentation and effectiveness of the  work.

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.

Packaging: The plans made by the company  identifying with the cola packaging are generally profitable for the company  for improvement.

Solid and differentiated product: Due to a solid and widened  product portfolio, the company is not affected by any new designs.

Threats

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.

Economic changes: When the global market changes  due to inflation rates, the overall pricing of Coca-Cola will be affected.

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.

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.

Health-conscious individuals: Due to the factor of  health-conscious individuals’ behavior, the company can be affected seriously  and influences its deals.

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.

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.

C. Competitive Profile Matrix

Aside from Coca-Cola, Pepsi and Dr. Pepper are among the popular beverage brands in the market. Pepsi is one of the most well-known companies in the world for providing a wide variety of products, both in the beverage industry as well as in other markets such as consumer products. Also, it is famous for its advertisements besides its never-ending competition with Coca-Cola (Cleary et al., 2012). On the other hand, Dr. Pepper is the oldest carbonated drink in the United States of America. It produces bottles and delivers more than 50 types of carbonated beverages, and it is one of North America's leading refreshment beverage firms (Dr. Pepper, n.d.). Dr. Pepper is least acidic unlike Coca-Cola and Pepsi, which indicates that Dr. Pepper reaps the benefits of much substantial health satisfaction than Coca-Cola (Virginia, 2015).

Based on the Competitive Profile Matrix, each company was evaluated based on their crucial success factors. It shows here that Coca-Cola is the most competitive company among the three companies with the highest spike of 3.8. Meanwhile,   Pepsi is in the second position with a total score of 3.35. Dr. Pepper is in the third position with a total point of 2.78. With this, in terms of industry key success factors, Coca-Cola has the highest ranking.

D. Key External Factors

Coca-Cola is one of the leading beverage companies that serve customers almost globally. According to Pestle Analysis, it is an external analytical method for studying and analyzing external factors. It is the product of external analysis that recognizes threats and opportunities.  Pestle Analysis can be divided into six (6) classifications:

Political Environment: It investigates the present and future effects of policy factors. The government has the power to implement possible penalties on companies that fail to attain their compliance with applicable responsibilities. For Muslim countries, Coca-Cola added “Halal” in their every product.

Economic Environment: It analyzes the influence of the national, regional, and world economies, as well as the issue of depression and commodity prices. These companies will perform a significant position in the non-alcoholic drinks industry of the country and sustain growth. In addition, economic changes are one of the most serious issues that a country may encounter.

Social Environment: It focuses on cultural influences and perceptions, health promotion knowledge and understanding, population expansion with demographic breakdown.  Consumers are becoming more aware of the public health implications, especially obesity. With this, health-conscious individuals are one of the threats that Coca-Cola is facing right now.

Technological Environment: It is required for the company to keep a good relationship with their distribution centers. For soft drinks industries like Coca-Cola, technology plays an important role in the company. In addition, the company’s technological developments also resulted in the growth of alternative methods for Coca-Cola such as vending machines. With that, innovation is a great opportunity for the company.

Legal Environment: Competitive environment, product safety, marketing and packaging, bottle storage, environmental conservation, and labor protections are all regulations that the company is subject to in the multiple nations where they do business. Furthermore, the legal aspect focuses on the effect of national and world legislation. With that, any innovation and product creation goes through a unique process, and also the Coca-Cola Company receives all necessary assets in the nature of the industry.

Environmental Analysis: It discusses global concerns on a community, global, and international market. Also, all of the facilities of Coca-Cola are closely monitored in order to comply with the administration's environmental regulations. However, Coca-Cola considers limited water supply as one of the company’s threats.

IV. Strategy Formulation

A. Boston Consulting Group Matrix

Stars: Based on the BCG Matrix, Coca-Cola is under the Star Category because it has a high market share in the fast-growing industry with the help of its products, most especially aerated drinks. Coca-Cola is doing well in managing the products, has great opportunities, and has a wide range of business customers in the Philippines. This quadrant can be the market leader; however, it requires ongoing or progressing investment to support it. They create a greater Return on Investment (ROI) than other product categories.

Question Marks: Fruit-based beverages and sports drinks are under the Question Mark Category because they also have a high market growth but have a low market share; they do not know what to do with opportunities, decide whether to increase investment or not. This quadrant frequently requires significant investment to drive the company into the Star Category. The challenge is that a great deal of investment might be needed to get a return. It is not always simple to recognize a future star.

Cash Cows: While energy drinks and J.V. & CO-brand products fall under the Cash Cow Category because they have a high market share and a low market growth, they are having a hard time with growth in the market with limited opportunities. Cash Cow products create a consistent return of benefits that far surpass the expense of cash needed to acquire or begin it. The simple rule in this quadrant is to “Milk these products as much as possible without killing the cow!” Meaning, the company should be careful and guarantee to do the most out of it without killing the product.

Dogs: Bottled water, tea & coffee products, vending machines, and canned soup fall under the Dog Category since they both have a low market share and a low market growth, are weak in the market, having a hard time making a profit, and they are not much known in the Philippines. In this quadrant, the typical marketing advice is to eliminate any dogs from the product portfolio as they are a drain on assets and resources.

B. Strategic Position and Action Evaluation Matrix

Strategic Position and Action Evaluation Matrix, also known as SPACE Matrix, is an important Stage 2 matching tool that is used to analyze the company and its environment. This SPACE Matrix will indicate what type of strategy the Coca-Cola Company should undertake.

According to the graph above, the total of Y-axis coordinates falls to +2.3, and the total of the X-axis coordinates falls to +4.3. The Coca-Cola Company goes to the Aggressive Strategy, which is located on the upper-right quadrant of the matrix, which implies that Coca-Cola Company is an attractive and relatively stable industry; it has a strong competitive position in the market with rapid growth. This position of Coca-Cola Company, which is an Aggressive Strategy, shows that it has a set of possible strategies such as market penetration, market development, product development, diversification, and backward, forward, and horizontal integration that can be employed.

C. Grand Strategy Matrix

Coca-Cola demonstrates how they achieve a competitive edge and expand their company by creating and producing goods and services. Coca-Cola is positioned in Quadrant I, indicating a strong competitive position in the industry and rapid sales growth. Coca-Cola will continue expanding and improving its products and markets in the industry and adopt the market segmentation and backward and forward integration strategies to create a better opportunity and make the company more competitive in the industry.

D. Internal-External Matrix

Based on the IE Matrix of Coca-Cola, whose scores were based on the IFE and EFE Matrices, it should go for Grow and Build strategies like market development, product development, market penetration, and integration.

Product Development: Based on the IFE and EFE Matrices, Coca-Cola Company should reduce its investments in soft drinks and increase them to its other products that support a healthy option for the customers.

Horizontal Integration: Coca-Cola Company should focus on its diversified products through its partnerships to reduce the low market sales and regain the image of the company.

E.    Strengths - Weaknesses - Opportunities - Threats Analysis

F. Quantitative Strategies Planning Matrix

In accordance to the matrix above, the total attractiveness score (TAS) of the strategic alternative which is creating more drinks that are stevia-based got 4.7 and it is greater than the 3.83 total attractiveness score of the second strategic alternative which is strengthening the 2030 water security by teaming up with environmental organizations. That said, in respect to the attractiveness scores of the two strategies, it can be concluded that it is better to recommend strategy 1 to the Coca-Cola Company for them to successfully reach their long-term objectives. The company should create more drinks that are stevia-based for the reason that due to the emerging health trends, more and more people opt for a less unhealthy alternative, and some, despite it not making a huge difference in their health, prefer beverages that contain less hazardous ingredients. Thus, even if stevia is not a healthy alternative to the usual sugar that the company uses, it is still the next big thing for the company to use until they find healthier alternatives to their drinks without totally changing the chemical composition and taste of the drinks. 

V. Strategy Recommendation

A. Market Penetration

1)    Natural Sweetener

Consumers have become aware of their health. Leading for the Coca-Cola company, specifically Coca-Cola Australia, to switch to their alternative, to create more drinks that are stevia-based.

2)    Awareness Towards Emerging and Alternative Brands

Emerging brands are much cheaper than Coca-Cola.

The company should improve their product’s taste because consumers often mistakenly recognize a Coca-Cola product as a Pepsi product, and vice versa could result in decreased sales.

Seek ways on how to possibly add a unique taste to their products since alternative brands almost have the same taste as Coca-Cola’s leading products such as the classic cola.

3)    Company and Product Image Enhancing

Coca-Cola’s marketing departments need to highly focus on strengthening their product’s image for the Indian people by slowly curving the negative misconception of the issue that has occurred in 1970 that still has a negative impact due to the water pollution and pesticide issues in the country.

4)    Regain Company Image

It would be helpful to regain the company’s image if they would render time and investment in clearing the company’s name with regards to the false advertising issue by releasing statements and responses. The public would greatly appreciate it if they would let them become aware of this.

B.    Product Development

1)    Water Scarcity Solution

A high amount of water is used for both the company’s product and bottling plants. It would potentially decrease water scarcity by:

a)    Giving back the same amount of water to the environment that they have accumulated.

b)    Sustainable ways on how waters used in manufacturing be reused such as in their boiling, chilling, and evaporating procedures.

c)     Associating with government and non-government partnerships for them to effectively impose possible facility construction for rain-water harvesting, and dam-like natural reservoirs for water storage.  

C.    Horizontal Integration

1)    Secure Firm Partnerships

Build firmer partnerships with their long-term, especially new, suppliers since there are emerging brands that could have greater impacts on the consumers.

2)    Careful Price Alignment

Consumers may feel uneasy about sudden price hikes that is why it is highly effective to gather the company’s accounting and marketing teams to align their product’s price with other emerging and alternative brands.

VI. Action Plan

VII. Conclusion

To initiate the study, internal and external assessments must be done before conducting the matrices to gather fundamental information required in each matrix. The Internal Factor Evaluation Matrix resulted in a total weighted score of 2.53. It has eight strengths which are the following: a strong brand, strong marketing and advertising of products, almost globally available products, healthy financial position in the HR department, brand equity, competent workforce, a wide variety of products, and taste differentiation. While the weaknesses are high debts, health issues, some products have low sales, a weak image in India, negative publicity, and taste similarity. In line with the total weighted score, these factors indicate that Coca-Cola is capable of sustaining its strengths and is cautious in controlling its weaknesses. On the other hand, the External Factor Evaluation Matrix has a total weighted score of 3.5. Its opportunities are the following: a great number of effective brands, a gap between contenders, a notice of disliked items, specialty market could be engaged, innovation, the new activities’ acknowledgment in the organization, packaging, and solid and differentiated product. While the threats are expansion of popular substitutes, economic changes, wavering individuals showing the unwanted side of the product, the factor of claims, health-conscious individuals, competitors especially Pepsi, and limited water supply. Based on the total weighted score, it implies that Coca-Cola Company is executing its opportunities well despite the adverse impacts by threats. As for the Competitive Profile Matrix (CPM), Coca-Cola, Pepsi, and Dr. Pepper are three of the most well-known beverage brands in the market. Among these three, Coca-Cola has the highest score of 3.8. While Pepsi is in the second position with a total score of 3.35, then Dr. Pepper is in the third position with a total score of 2.78.

According to the outcomes from the various matrices, the following analyses have been concluded: Boston Consulting Group (BCG) Matrix demonstrated where Coca-Cola Company belongs. In the Star Category, aerated drinks can be found, which signifies that Coca-Cola falls under this since the company is highly in demand for this type of product, while fruit-based beverages and sports drinks are under the Question Mark Category. As for the Cash-Cows Category, energy drinks and J.V. & CO-brand products are based, while bottled water, tea & coffee products, vending machines, and canned soup fall under the Dog Category. This matrix suggests which products have to prioritize or eliminate to fully enhance the growth of the company. Moreover, the Strategic Position and Action Evaluation (SPACE) Matrix explained which is the most appropriate strategy for Coca-Cola. Based on the graph, the total of Y-axis coordinates falls to +2.3, while the total of the X-axis coordinates falls to +4.3. It signifies that Coca-Cola is a relatively stable industry and has a strong competitive position with rapid sales growth. Hence, an Aggressive Strategy is a suitable strategy for the company to apply. In the same way, a Grand Strategy Matrix depicted that Coca-Cola is positioned in Quadrant 1, implying that the company has a strong competitive position with fast market growth, and should choose the market segmentation and backward and forward integration as their strategies. Additionally, the Internal-External (IE) Matrix has shown that Coca-Cola falls under Quadrant 2 as results were based on the IFE and EFE Matrices. This quadrant signifies that Coca-Cola should implement the Grow and Build strategies, which are market development, product development, market penetration, and integration. Further, a SWOT Analysis generated four types of strategies through the integration of strengths, weaknesses, opportunities, and threats. Among the eight formulated strategies, creating more drinks that are stevia-based and strengthening the 2030 water security by teaming up with environmental organizations were considered as the two ideal strategies by the Quantitative Strategies Planning Matrix (QSPM).  The creation of more stevia-based drinks had a total attractiveness score (TAS) of 4.7 while strengthening the 2030 water security had 3.83.

In line with the overall analysis of various matrices, this study recommends that Coca-Cola should concentrate on market penetration, which consists of the following approaches: the use of more natural sweeteners, the awareness towards emerging and alternative brands, the company and product image enhancing, and regain company image. This study also suggests the application of product development which concerns water scarcity solutions. Lastly, Coca-Cola should adopt horizontal integration which intends to secure firm partnerships and careful price alignment. Considering the Strategy Recommendation, the Action Plan has enumerated measures to be done by specific departments to help achieve feasible results. By applying these strategies, the Coca-Cola Company has the potential to further excel among its rivalries through its timely and competent execution in the industry.

VIII.          Financial Projection

Coca-Cola’s first-quarter 2021 results and provided an update on progress against its strategic initiatives:

Revenues: Net revenues grew 5% to $9.0 billion, and organic revenues (non-GAAP) grew 6%. This was driven by a 5% growth in concentrate sales, while price/mix grew 1%. The quarter included five additional days, which resulted in an approximate 6-point benefit to revenue growth.

Margin: Operating margin, which included items impacting comparability, was 30.2% versus 27.7% in the prior year, while comparable operating margin (non-GAAP) was 31.0% versus 30.7% in the prior year. Operating margin expansion was primarily driven by effective cost management, partially offset by currency headwinds.

Earnings per share: EPS declined 19% to $0.52, and comparable EPS (non-GAAP) grew 8% to $0.55. Comparable EPS (non-GAAP) growth included the impact of a 2-point currency headwind.

Market share: The company lost value share in total nonalcoholic ready-to-drink (NARTD) beverages as an underlying share gain in both at-home and away-from-home channels was more than offset by negative channel mix due to continued pressure in away-from-home channels, where the company has a strong share position.

Cash flow: Cash from operations was $1.6 billion, up $1.1 billion versus the prior year, driven by positive business performance, five additional days in the quarter, and working capital initiatives. Free cash flow (non-GAAP) was $1.4 billion, up $1.2 billion versus the prior year, primarily driven by cash from operations along with lower capital expenditures versus the prior year.

 VALUATION

INCOME STATEMENT EVOLUTION

The Income Statement Evolution shows the graph of the financial statement of the Coca-Cola Company starting from 2018, 2019, 2020, and in the projected years 2021, 2022, and 2023. Based on the coming years, Sales, Net Margin, Operating Profit, Operating Margin, and Net Income will increase as indicated on the graph.

FINANCES – LEVERAGE

On the Finances Leverage, it shows that as time goes by, the finance of the Coca-Cola Company increases as they sell more products and earn more profit which will generate revenue in the future. Based on the graph, it shows that the number of sales through the years is not that far from each other, however, it is projected that 2023 has the highest sales and EBITDA.