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Part 2 - Environment Analysis

Prior to beginning work on this assignment, read the Swot Analysis: Discover
New Opportunities to Manage and Eliminate Threats Links to an external
site.article.
Optimal solutions are determined when a researcher has a thorough
understanding of a company and its industry, along with the strengths and
weaknesses that impact its future viability. In the second part of your plan,
perform a SWOT Analysis (Strengths, Weaknesses, Opportunity, and Threats)
on your chosen organization and provide an analysis of these results in light
of the problem or issue under study. Based on your SWOT analysis, explain
how the problem or issue impacts the organization and its competitive
position within the industry.
The complete instructions for Parts 1, 2, 3, and 4 of the Final Paper can be
found in Week 5 Final Paper page.
The Part 2 – Environment Analysis paper

 Must be two to three double-spaced pages in length (not including

title and references pages) and formatted according to APA style as
outlined in the Writing Center’s APA Style Links to an external
site.resource.

 Must include a separate title page with the following:

o Title of paper

o Student’s name

o Course name and number

o Instructor’s name

o Date submitted
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Part 2 - Environment Analysis

Xxxxx

The University of Arizona Global Campus

MGT 490: Strategic Human Resources Planning

Prof. Steven Foster

December 12, 2022

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Introduction

To understand how the problem or issue under study impacts Coca-Cola and its

competitive position within the industry, it is essential to understand the company and its

strengths, weaknesses, opportunities, and threats. This can be done through a SWOT analysis.

This blog post will explore Coca-Cola's SWOT analyses, its current situation, and what the

future might hold for them. We will also touch on some of the company's controversies and

how they have handled them.

SWOT Analysis of Coca Cola

Strengths

-A firm brand name and global recognition: Coca-Cola is one of the most recognized

brands in the world. It has a strong presence in over 200 countries and is synonymous with the

soft drink industry.

-A diversified product portfolio: Coca-Cola offers a wide range of products, including

carbonated drinks, juices, sports drinks, and bottled water. This gives them a competitive edge

as they can cater to broader consumer needs.

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-A well-established distribution network: Coca-Cola's extensive distribution network

ensures its products are readily available to consumers worldwide.

-A history of successful marketing campaigns: Coca-Cola is no stranger to effective

marketing and has launched some of the most iconic advertising campaigns in history. These

campaigns have helped solidify their brand and drive sales.

Weaknesses

1) Dependence on Carbonated Soft Drinks: While Coca-Cola has diversified its

product portfolio in recent years with acquisitions and the introduction of new products, a

large majority of its revenues still come from carbonated soft drinks (Panigrahi, 2020). This

dependence leaves the company vulnerable to trends in the market and could lead to declining

sales if consumers shift away from these products.

2) Obesity Concerns: In recent years, there has been increasing concern about the role

sugary drinks play in obesity and other health problems. This has led to calls for taxes on

sugary drinks and bans on advertising these products to children. These trends could

negatively impact Coca-Cola's sales and profits in the future.

Opportunities

Coca-Cola has many opportunities to continue to grow as a company. They have a

powerful brand and are known around the world. They also have many financial resources to

invest in new products and marketing campaigns. One opportunity for Coca-Cola is to focus
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on healthy and sustainable eating and drinking habits. They could develop new products that

are low in sugar or calories and promote them through their marketing channels. Another

opportunity for Coca-Cola is to expand its reach into new markets. They could enter emerging

markets, such as Africa or Asia, with the potential for high growth. Finally, Coca-Cola could

focus on increasing its online presence and sales. This could include developing an e-

commerce platform or investing in digital marketing initiatives.

Threats

1. Competition from other companies in the non-alcoholic beverage industry: Coca-

Cola competes with many other companies in the non-alcoholic beverage industry, including

PepsiCo, Dr. Pepper Snapple Group, and Monster Beverage Corporation.

2. Fluctuations in commodity prices: The cost of raw materials used to produce Coca-

Cola products, such as sugar and aluminum, can fluctuate significantly due to changes in

global markets.

3. Changing consumer tastes: Consumer preferences for beverages can change over

time, which could lead to reduced demand for Coca-Cola products.

4. Increased regulation: Governments worldwide may impose new regulations on the

non-alcoholic beverage industry that could negatively impact Coca-Cola's business

operations.
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How the problem or issue impacts the organization and its competitive position

within the industry.

Coca-Cola's main problem is that sales have been flagging in recent years. In

particular, soda consumption has been declining in North America and Europe for over a

decade. This has put pressure on Coca-Cola's bottom line as these are two of its most

important markets. The decline in sales is due to health concerns about sugary drinks and

changing consumer preferences. More people are now looking for healthier alternatives to

soda and opting for more premium beverages (Renz & Vogel, 2022). This has led to increased

competition from the likes of PepsiCo and Nestle. To combat this, Coca-Cola has been

diversifying its product range with offerings such as Dasani water, Honest Tea, and Gold

Peak tea. It has also launched several marketing campaigns centered on healthy living and

fitness. However, it remains to be seen if these efforts will be enough to turn things around for

the company in the long run.

Conclusion

After conducting a SWOT analysis of Coca-Cola, it is evident that the company has

significant strengths and opportunities to leverage to address its challenges. While Coca-Cola

does have some weaknesses, such as its reliance on sugary drinks, these are offset by its

strong brand recognition and global reach. Overall, Coca-Cola is in an excellent position to

continue being a significant player in the beverage industry.

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References

Panigrahi, V. (2020). An Organisation Study On The Coca-cola Company (Doctoral

dissertation, CMR Institute of Technology. Bangalore).

Renz, F., & Vogel, J. (2022). Analysis of The Coca-Cola Company.