Running head: SWOT ANALYSIS AND IMPROVEMENT
SWOT Analysis and Improvement
Alberto Moreu
Rasmussen College
Author Note
This assignment is submitted on May 29, 2016, for Andrea Tamboureas TRA 4017
Procurement and Supplier Relations course.
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Abstract
"The Coca-Cola Company is the world’s largest beverage company. We own or license
and market more than 500 nonalcoholic beverage brands, primarily sparkling beverages but also
a variety of still beverages such as waters, enhanced waters, juices and juice drinks, ready-todrink teas and coffees, and energy and sports drinks. We own and market four of the world’s top
five nonalcoholic sparkling beverage brands: Coca-Cola, Diet Coke, Fanta and Sprite. Finished
beverage products bearing our trademarks, sold in the United States since 1886, are now sold in
more than 200 countries. On this paper we will analyze the Strengths, Weakness, Opportunities
and Threats of Coca Cola company as well their improvements that they needs.
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SWOT Analysis and Improvement
Strengths
The coca-cola company has many strengths and here we are going to discuss three of
them that is Advertising and marketing power, Growth and Brand name.
1. Advertising:
In one year this company spends $3.97 Billion in the advertising and the marketing of the
company products, averagely it is the largest investor in the advertisement in the world the
records show that. This advertisement power has helped the company to sell more of its products
and since the sales are there then the revenue increases making the company to be able to invest
in the marketing of the products more and more.
2. Growth:
The growth is made by the selling of the most products which is a result of the marketing
of the products, as the sales increases and more products are well known by the customers then
the company has a potential to grow.
3. Brand name:
The company is very competitive to the other similar companies since their products has
a good name to the users this makes the users and the consumers to increase more and more.
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Weaknesses
The coca-cola company has many weakness and the three that we are going to discuss are
management of water, Expenditure, Fluctuation of foreign currency and absence in health
beverage.
1. Management of water
Water is the main product of the production of the products of the company, this helps in
the processing of the farm products that are used in the production. Water in many places is a
rare product and this one makes the company to extract a lot of water raising and demand for
food problem.
2. Expenditure
The company uses a lot of the resources not majoring on the main factors which will lead
to the improvement of the product, though it has majored in the advertisement and the raw
materials but they need to do more on it since it is the main key in the production and selling of
the products.
3. Fluctuation of the foreign currency
The company earns a lot of the revenue through making the sales of the drinks that is
well known in the world and also incurs expenses in the buying of the raw materials, they use
the U.S dollar ,Japanese Yen, the Euro, Brazilian real, the statements are consolidated and this
makes the company to translate the revenues the exchange at the end of the day affects the
report.
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4. Absence in health beverages – If you watch the news, you would know that obesity a
major problem affecting people nowadays. The business environment is changing and
people are taking measures to ensure that they are not obese. Carbonated beverages are one of
the major reasons for fat intake and Coca cola is the largest manufacturer of Carbonated
beverages. The inference is that the consumption of beverages in developed countries might go
down as people will prefer a healthy alternative.
Opportunities
The coca-cola company has many opportuniites the three discuss are Diversification,
Extend reach and consumers.
1. Diversification
The company has been very hard in the utilization of the war chest to make the most
growing categories of the beverages. Most of the hot drinks are planning to feature the coke
branded products.
2. Extended reach
The company has an opportunity to reach too many nations since the demand is even
increasing to the some areas where the products have not reached since they have been hearing
of it through the social media and effort in the advertisements.
3. Consumers
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The company has got consumers who have not been established and it should strive in the
reaching these customers and consumers.
Threats
The coca-cola company has many Threats and the three discuss are Nutritious selections,
Indirect competition and Management.
1. Nutritious selections
The nutritious selection of many beverage companies have got this threat of the side
effects in the of the nutrition’s they choose to the consumers and coca-cola company is one of
them.
2. Indirect competition
There are some companies like star buck who compete the coca-cola company this time
not direct but indirectly, they try to place a dent on the market share of the company.
3. Management
The company should be changing the management after some time because it has got a
long serving management which can be doing some dubious business underground and this can
collapse the company.
Improvement Statement
The company should major in the putting more finds in the improvement of the raw
products and the use of the experts in the processing stage and also it should make the
advertisements more vibrantly but not use more funds on the advertisements. So far the products
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of the company and the brand name of the company is well known and this should stop the
company from majoring on the more expenditure to the marketing because the products are well
known in the world and this should be diverted to the making of the new product and increase
the diversification of the products.
When there is a number of challenges that face the company but there are having a good
predictions of the future. The size and the financial status will be having the big percentage in the
acquisition of the future target. Also the company should address their Absence in health
beverages and create some kind of beverages or invest money in the health addressing the
obesity problem that most of their drinks are related to it (Bashin, 2014, p. 2)
