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(Solved) Running Head: COCACOLA STRATEGIC PLANNING Strategic Management Plan Christopher Hisel BUS/475 Hector Perez January 30, 2017 1 Running Head: COCACOLA...

Conduct an internal and external environmental analysis, and a supply chain analysis for your proposed new division and its business model.

Create a SWOT table summarizing your findings. Your environmental analysis should consider, at a minimum, the following factors. For each factor, identify the one primary strength, weakness, opportunity, threat, and trend, and include it in your table.

External forces and trends considerations:

  • Legal and regulatory
  • Global
  • Economic
  • Technological
  • Innovation
  • Social
  • Environmental
  • Competitive analysis

Internal forces and trends considerations:

  • Strategy
  • Structures
  • Processes and systems
  • Resources
  • Goals
  • Strategic capabilities
  • Culture
  • Technologies
  • Innovations
  • Intellectual property
  • Leadership

Write a synopsis of no more than 1,750 +/-10% words in which you analyze relevant forces and trends from the list above. Your analysis must include the following:

  • Identify economic, legal, and regulatory forces and trends.
  • Critique how well the organization adapts to change.
  • Analyze and explain the supply chain of the new division of the existing business. Share your plans to develop and leverage core competencies and resources within the supply chain in an effort to make a positive impact on the business model and the various stakeholders.

Identify issues and/or opportunities:

  • Identify the major issues and/or opportunities that the company faces based on your analysis.

Format your paper consistent with APA guidelines.


Running Head: COCACOLA STRATEGIC PLANNING Strategic Management Plan
Christopher Hisel
Hector Perez
January 30, 2017 1 Running Head: COCACOLA STRATEGIC PLANNING 2 Strategic Management Planning for Coca-Cola
Strategic planning is expected to impact significantly towards the organization’s
operations. It is considered a critical aspect for organizations as it facilitates the structuring of
organization’s operations in such a way that maximally achieves the intended goals and
objectives. Coca-Cola Enterprises Inc. was founded in 1986, with the Current successor being
Coca-Cola European Partners (CCEP), CCEP is the largest manufacture of Fast- Moving
Consumer Goods (FMCG). The paper aims at addressing the major aspects and approaches that
Coca Cola utilizes in the pursuance of its intended goals and objectives.
Importance of New Division
New Division is created with the sole purpose of creating multiple business divisions to
serve different products and services. Divisions are formed to serve a specific purpose and
increase ownership of the brands. This occurs such that each Division operates almost as an
individual though under an umbrella organization. Geographic location or demographic market
sectors also affect the formation of divisions as a way to develop a competitive market
advantage. Adding a division allows a company to expand without changing the company’s
existing structure.
With more brand in the market the company will increase its visibility through various
channels of communication. Introducing Diet Coke and with flag brand of Coca-Cola does not
necessarily mean that the firm is going to “kill” Coke as a brand by itself but rather to increase
Coke brand globally. Coke as a brand has been able to tap into the global market. With the
introduction of Diet Coke or Coke light as its referred in some parts of the world it is gaining
more market share with it being known as a product of Coca-Cola Enterprises. Running Head: COCACOLA STRATEGIC PLANNING 3 Sharing the brand name with our flag brand creates Diet Coke as brand from Coca-Cola
that values the needs of those with Diabetes as Diet Coke is a sugar free brand. Diet Coke will be
riding on Coke flag brand market share and presence. Diet Coke will have its own logo different
from our flag brand coke. Coca-Cola new division with the the intention to increasing sales for
Diet Coke and creating customer awareness for the existing product. Coca-Cola Diet coke is also
referred as Coca-Cola Light in some countries. Diet Coke is a sugar-free Soft Drink The brand
was unveiled on July 8 1982, it was the first new brand since 1886 to use the Coca-Cola
Diet Coke Division is also purposed to target customers with Health concerns such as
Diabetes, Diet Coke is Division will focus on the demographical needs of people with health
concerns, the demographics help us to identify the target market and division of various
customers and increase the sales of the product. Diet Coke will be packaged in different stock
keeping units(SKU)and therefore they are priced differently depending on the customer
economic abilities. With product packaging in different SKU we can able to sell to every
segment of the market increasing our visibility
Coca-Cola has a corporation often form Divisions as a separate business division to
develop a competitive market advantage. Adding the division allows the company to expand
without changing the company’s existing structure. Coca-Cola Enterprises prides in Innovation
and customer focused inventions that are customer focused (customer Value proposition) brand
and services that provide solution to customer needs translating to increased sales and good
profit margins for the company.
Structure of the New Division Running Head: COCACOLA STRATEGIC PLANNING 4 The new Division sole purpose will be to push sales for Diet Coke, and to increase brand
knowledge to the public and with the sales punch line or vision Statement Being Diet Coke for
Healthy Living. Vision defines what the company core values and Ideologies are, the ideologies
of what Coca-Cola Enterprises stand for, Vision determines the direction of the company, it is the
heartbeat of the organization. In these case Coca-Cola was established with the sole purpose of
manufacturing Fast Moving Consumer Goods (FMCG)
The Division will be responsible in growing Diet Coke brand sales and the vision that
Diet Coke is manufactured sugar free and can be enjoyed with all people of Diverse health
concerns and those without Health Concern as well. Diet Coke as a brand is a soft Drink
manufactured by Coca-Cola Corporate values of the Coca-Cola.
Management Goals
The major management goals include: Increase Brand awareness and visibility of Diet
Coke a brand that is sugar free and Increasing profit margins of the brand. There is also a need to
put across Diet Coke as a drink that can be enjoyed by all with either Diabetes or those with the
need to look into calories intake. The new division sole purpose will be to operate as an
individual of Department of Diet Coke with the intention of growing Diet Coke as brand that will
be the key mission and vision statement, Diet Coke was manufactured with the sole purpose of
having all people to enjoy a brand and Diet Coke targets all people with health
Vision defines what the company core values and Ideologies are, the ideologies of what
Coca-Cola Enterprises stand for, Vision determines the direction of the company, it is the
heartbeat of the organization. In these case Coca-Cola was established with the sole purpose of
manufacturing Fast Moving Consumer Goods (FMCG). Running Head: COCACOLA STRATEGIC PLANNING 5 Mission on the other hand determines the purpose of the organization with the ability to
change with the new business strategies, economic changes adapt to the new technologies,
economic changes. and practices of customer needs depending on the culture norms and values
of the customers at that given time.
Strengths Weakness Opportunities and Threat (SWOT) Analysis
SWOT Analysis of the new division is done in order to increase the sole purpose of the
new Division, the analysis will identify the needs and purpose of the new Division. Strengths and
weakness are always within our corporate organization and therefore referred as Internal factors
while external factors are the threats that we will affect the organization.
Internal and External Analysis
Internal analysis includes the fact that Diet Coke will be riding on an already known
brand in the market but at the same time with more market visibility combining two brands
might be dangerous Diet Coke might “kill Coke flag brand and take Coke market share. Keller
2000 Harvard Business Daily 2000
Diet Coke is a brand that customers desire as it serves those with diabetes and those with
low calories in-take. Diet Coke as a brand has to remain relevant as the customers’ perceptions
beliefs and attitudes towards the brand whether created by the company or competition will
determine the performance of the brand in the market. Customer feedback determines the brand
performance and therefore all this knowledge determines the brand performance in the brand and
profit margins.
Pricing of the brand apart from SKU as a determining factor will also be influenced by
consumer perception of the value of the brand. Brand consistency also determines the brand
performance in the market. Once Diet Coke has been introduced in the market the brand has to Running Head: COCACOLA STRATEGIC PLANNING 6 be able to reach all consumers and therefore good distribution network is of utmost importance
as we cannot launch a product in the market that is not available in the stores.
Brand consistency also means that if packaging has to be changed a better and improved
packaging introduced then the consumers have to be communicated to leading to less confusion
of the brand visibility in the market. A balance has to be achieved between continuity of the
brand and the marketing activities either through TV commercials or billboards such activities
have to communicate the same theme, advertising language and the slogan of the commercial
being repeated, in these cases we will be working towards making Diet Coke a soft Drink that
does not make life come to a stand-still in taking soft Drinks because Diabetes. Enjoy Coke
Light in all seasons and all the time.
Brand Portfolio and hierarchy make sense because different brands have different market
segments and hold different market power. Coca-Cola as a corporate organization acts as an
umbrella for all the Coca-Cola brands as they appeal to different clientele in the market. We have
the first brand that is always almost a default brand of the corporate organization such that
there’s the flag brand just like now the company has Coke as the flag brand while Diet Coke can
be rated as the third or second brand, the second most of the time targets family segment of the
market industry whereas the third and fourth brands always appeal to a section of the market. All
brands therefore contribute to Equitable share of the company portfolio in the market through
their individual ability.
Guiding Principles, Measuring Social Responsibility and Culture
When the competitive strategies of Coca- cola rely on global brands, corporate social
responsibility (CSR) comes from measuring social expectations, affluence, and globalization of
the Coca-Cola as a brand. Every market has different needs and expectations and these therefore Running Head: COCACOLA STRATEGIC PLANNING 7 necessitates the division of the brand depending on different segmentations of the market and
needs, different activities and ethics are determined by cultures of the different communities and
regions. In Africa and Europe have different stakeholders’ category and the way of doing things.
Different needs can build or destroy, brand image among networked stakeholders who are
affluent enough to buy branded products and services. CSR is also a way of redefining profit
maximization as these will affect the bottom line of the brand and its activities leading to either
increased or decreased profit margins. Environmental activities are always seen as factors
Ethics are also affected by environmental rules and regulations of a region depending on
the production and manufacturing of the products. Activist and potential employees are some of
the risks that affect the profits and ratings of corporations' environmental activities and
capabilities influence billions of dollars of socially responsible guiding cultures and ethics are
always determined by the geographical division of the regions as different regions have different
ethics and cultures. Also, different regions have different climatically conditions that affect the
buying and selling the brands as different climates determine the buying power of the brands.
In hot weather, the company usually has more buying power of the soft drinks and also
different climates determine the buying power of consumers. Occasions and celebrations
determine the purchasing power the brands
  Running Head: COCACOLA STRATEGIC PLANNING 8 References
Anonymous: 2003, ‘Co-op has Credibility but Needs Fresh Look’, Marketing, June 23, 13
Balmer J. M. T., E. R. Gray 1999,
Chatterji, A. K., Levine, D. I. and Toffel, M. W. (2009), How well Do Social Ratings Actually
Measure Corporate Social Ratings Actually Measure Social Responsibility? Journal of
Economics & Management Strategy, 18: 125–169. doi:10.1111/j.1530- 9134.2009.00210.x
Corporate Identity and Corporate Communications: Creating Competitive Advantage, Corporate
Communications: An International Journal, 4(4):171–176
Jon–Arild Johannesssen, Biorn Olsen ,G.T.Lumpkin (2001) European Journal of Innovation
Management, Vol. 4 Iss: 1, pp.20 –
Kevin Lane Keller 2000 Harvard Business Review Brand Report Card.


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