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Coca-Cola

Strategic Management – CocaCola

By

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Date:
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Coca-Cola

Contents
Executive summary................................................................................................................4

Strategic Management – Coca Cola...........................................................................................5

Introduction............................................................................................................................5

Vision.................................................................................................................................5

Mission...............................................................................................................................5

Objectives...........................................................................................................................5

Employee size.....................................................................................................................6

Products..............................................................................................................................6

Revenue..............................................................................................................................7

Current Business Scenario......................................................................................................7

Core Competencies.............................................................................................................7

Sources of Competitive Advantage....................................................................................8

Porter’s Five Forces...............................................................................................................9

Threat of new entrants........................................................................................................9

Bargaining power of suppliers...........................................................................................9

Buyer Bargaining Power....................................................................................................9

Threat of substitute products..............................................................................................9

Competition and rivalry....................................................................................................10

Organisational performance and current strategy................................................................10

Coca-Cola’s organisational design...................................................................................10

Coco-Cola’s Life cycle.....................................................................................................11

Need for Change and Environmental Analysis....................................................................11

PESTLE Analysis.............................................................................................................11

SWOT Analysis................................................................................................................13

Environmental challenges and Coca-Cola’s Response....................................................14

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Strategy to Overcome Challenges........................................................................................15

BCG Matrix of Coca-Cola...............................................................................................15

Mintzberg Five Ps of Strategy..........................................................................................16

Business Strategy Levels..................................................................................................19

Global Environment Changes and Strategy.....................................................................19

Leadership Values to Manage Strategic Change..................................................................21

Leadership Styles.............................................................................................................21

Change and survival.........................................................................................................22

Recommendations................................................................................................................24

Conclusion............................................................................................................................25

REFERENCES.....................................................................................................................26
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Executive summary
Coca Cola was founded by John S on May 8, 1886. He operated at the Pharmacy of
Jacobs (Coca Cola Company, 2008). The business had a tough start at the beginning and
was called "Coca Cola" by the accountant of the firm, Frank. In 1887, coupons became
the advertising process, and John S registered Coca Cola Syrup and Extract with the US
Patent Office (Coca Cola Company, 2008). A bottle by Alexander Samuelson that became
the traditional bottle for Coca Cola was designed by the Coca Cola Corporation in 1915.
The major games were funded by Coca Cola in 2008 and the Coca Cola Facebook page,
made by two fans, has more than twenty-two million fans worldwide. Coca Cola became
a billion-dollar brand in 2009, and the entire North American bottling industry was
purchased by the Coca Cola Corporation in 2010. The Coca Cola Corporation will
celebrate its 135 years by 2021 (Coca Cola Company, 2020).

Coca Cola is the world's leading company that produces drinks. Coca Cola has large
brands with more than five hundred products. Coca-Cola is the world's largest non-
alcoholic beverage concentrates and syrups manufacturer, marketer and distributor, to
make almost 400 brands of drinks. It offers drink concentrates and syrups for
manufacturing and canning operators, suppliers, retailers and wholesalers of fountains.
The company's beverages contain packaged and canned soft drinks, focus, syrups and
powder products. It also manufacturers and markets drinks for fitness, tea and coffee. In
the 1920s, Coca-Cola started to develop its global network. Today. The corporation Coca-
Cola and its bottlers network comprise the world's most advanced manufacturing and
delivery infrastructure. The Coca-Cola Corporation has become the world's first soft
drinks company with this unique system. Famous names such as Coca Cola Classic,
Fanta, Sprite, and Minute Maid are among its products. Besides being the number one
brand, Coca Cola is the world's most admired company. Coca Cola has a long tradition of
profitability as a profitable enterprise and of preserving people and their environment
(The Coca-Cola Company, 2020).
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Strategic Management – Coca Cola

Introduction
Vision
Their vision is to develop the brands and variety of drinks that people enjoy, to freshen
them in body and spirit. And achieved in ways that build a more prosperous business and
a stronger common future that will make a difference in the life of individuals, families
and the planet. In order to continue achieving sustainable, quality success, our vision
serves as the basis for our Roadmap and directs every part of our business by explaining
what we need to achieve. (Coca Cola Company, 2020).

People: Be an outstanding workplace where people are driven to be the best they can be.

Portfolio: Carry a portfolio of premium soda products to the planet that predict and meet
the wants and needs of people.

Partners: Build a winning client and supplier network, and together we generate shared,
sustainable value.

Planet: Be a responsible company which, by helping to create and foster healthy

communities, makes a difference.

Profit: Optimize the long-term return to shareholders while becoming aware of our
overall duties.

Productivity: Be an enterprise that is highly productive, lean and quick-moving.

Mission
In Coca Cola's mission statement, its aim as a business is to serve on standard terms. It
also takes a clear account of each and every Coca Cola move and decision taken. The
purpose of the project is to refresh the world, inspire people, bring pleasure, and
distinguish its goods by value (Coca Cola Company, 2020).

Objectives
The Coca-Cola Company's stated objectives are to be recognised internationally as a
corporation that practises business responsibility ethically and to drive economic
development to function in the world of tomorrow. It forms the basis for enterprises in the
decision-making process by setting these priorities.
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 Involve Coca-Cola in investigating the feasibility and possibilities for the sale of
'social goods' such as oral rehydration salts (ORS) and associated food, hygiene
and sanitation educational materials by leveraging their distribution networks in
developed countries.
 Help Coca-Cola and its allies in designing multiple scenarios that integrate the
delivery network of Coca-Cola with local health programmes to accomplish the
goal.
 To set up a central group of enablers and activists to guide the various aspects of
the initiative.
 To track the success of the campaign to ensure that all experiments and roll-outs
are effectively tracked and assessed. (Coca Cola Company, 2020).

Employee size
Coca-Cola Annual Number of Employees trend from 2015 to 2019.

Year Employee size

2015 123,200

2016 100300

2017 61800

2018 62600

2019 86200

(Coca Cola Company, 2020).

Products
The Coca-Cola Company is the leading multinational beverage company in the world.
Any of their global household names include: AdeS soy-based beverages, Ayataka green
tea, Dasani waters, Fanta, Minute Maid juices, Georgia coffee, Gold Peak teas and
coffees, Del Valle juices, Simply juices and nectars, Honest Tea, Powerade sports drinks,
smart water, Sprite, Zico coconut water, and, vitamin water, in addition to their namesake
Coca-Cola drinks. At Coca-Cola, they are passionate about contributing favourably to the
environment. That begins with reducing sugar in beverages and taking people everywhere
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with fresh and exciting drinks. It also involves working constantly to reduce the effect on
the environment, to build fulfilling jobs for associates, and to offer economic
opportunities everywhere they work. (Coca Cola Company, 2020).

Revenue
Annual/quarterly revenue history and rate of growth of Coca-Cola from 2016 to
2020.

In return for the purchase of products or services, revenue can be described as the amount
of money a business earns from its customers.

 Coca-Cola sales were $8.652B for the period ended September 30, 2020, a year-
over-year drop of 8.99 percent.
 Coca-Cola sales were $33.471B for the twelve months ended September 30, 2020,
a year-over-year fall of 8.74 percent.
 Coca-Cola's 2019 annual sales were $37,266B, a rise of 8.65 percent from 2018.
 Annual sales from Coca-Cola for 2018 were $34.3B, a drop of 5.28 percent from
2017.
 For 2017, Coca-Cola's annual sales were $36.212B, a drop of 13.5 percent from
2016.

(Coca Cola Company, 2020).

Current Business Scenario

PepsiCo, Nestlé, RedBull, Danone, Unilever, Keurig Dr. Pepper, Britvic, Jacobs Douwe
Egberts, Suntory, and Monster Drinks Company are among the Coca-Cola rivals. In the
global beverage sector, PepsiCo is Coca-Cola’s biggest rival. (Jan Conway, 2020)

Core Competencies
 Customer loyalty to the company
 Strong brand portfolio that enables consumers to be recalled and new markets to
join and consolidate their position in developed markets
 Strong global footprint even in developing countries
 Strong bottling alliances
 Comprehensive distribution network
 Capacity to diversify across various beverage markets
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 Equity investments allow for production and marketing. (MarketLine, 2014)

Sources of Competitive Advantage

VRIO Framework Coca-Cola
In order to figure out its sustained competitive edge, the VRIO system assesses the
company's worth, rareness, imitability, and organisation (Pesic, 2013)

Valuable: Coca-Cola can add value by reducing the selling price and increasing
differentiation. Coca-Cola maintains its brand reputation in the consumer market because
of its distinct and unique flavour. It interacts with consumers all around the world.

Rare: Coca-cola is on the top of all other beverage industry firms and its marketing
abilities and strong brand value make it rare, which is much better than that of rivals.
Lastly the business has the highest popularity with its secret recipe and different flavour.

Imitability: There are many generic Cola drinks in the market, but the particular product
of coke is just not imitable. Compared to an organisation that already has them, the
company without capital and skills faces a major cost disadvantage.

Organisation: The organisation of the Coca-Cola company involves the management and
control mechanism of the company, and compensation practices that enable the company
to gain sustainable competitive advantage.

For sustained competitive advantage the brand value of Coca-Cola is its most significant
resource.
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Porter’s Five Forces

The Coca-Cola Company's managers not only can use Porter Five Powers to establish a
competitive role in the soft drinks market, but can also pursue lucrative prospects in the
entire food and beverage sector.

Threat of new entrants

The new entrants can introduce creativity and new ways of doing business, which places
pressure on the Coca-Cola business for a reduced-price policy, cost reduction, and
consumers' provision for innovative product offerings. This will provide old customers an
incentive to purchase products from the Coca-Cola Brand. Through economies of scale
the fixed cost per unit can be reduced. New entrants are less likely to enter a competitive
market where existing companies like the Coca-Cola, continue to periodically determine
and maintain the standards.

Bargaining power of suppliers

The Coca-Cola can resolve the Suppliers' Negotiating Power by building multiple vendors
and an effective supply chain. Different materials may be used such that if the cost of one
raw material escalate, then the business will switch to another. Contracts can be made
with dedicated suppliers whose business depends on the group.

The lower and larger the consumer base, the greater the negotiation strength of the
consumers and the greater their willingness to demand improved incentives and deals
from the Coca-Cola Firm.

Buyer Bargaining Power

The Coca-Cola company can counter consumers' purchasing power through developing a
broad customer base. This would be beneficial to decrease the customers' purchasing
power and provide the company with an ability to streamline the method of sales and
output.

Threat of substitute products

The Coca-Cola Company can handle the threat of alternative or substitute goods by being
service-oriented instead of simply product-oriented. They need to understand the
consumer's basic desires more than what the customer is purchasing. The threat can be
countered by rising consumers' switching costs.
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Competition and rivalry
In a very dynamic soda - soft drinks market, the Coca-Cola’s rivalry may take a toll on the
organization's overall long-term viability. The extreme rivalry in the soft drinks industry
can be handled by forming a sustainable differentiation and building size. Coca-Cola can
collaborate with competitors to expand the size of the industry instead of only battling
over small markets.

Organisational performance and current strategy

The Coca Cola brand is the most famous brand worldwide. Coca-Cola’s strategic
management is also committed to the continuing growth of the iconic brand. A major
Coca Cola investor Warren Buffett claims that there are no fair questions to consider that
Coca Cola can lead to a lifetime investment worldwide in its sector, and definitely the
dominance will improve. The Coca Cola brand is solid, but few in Coca Cola
management feel that there is a chance that the public will get bored with the brand, so
they want Coca-Cola to be driven through a significant shift in the framework of
management.

The company is a multinational, but it works on a small basis. Coca Cola builds industry
with a local focus. In various parts of the world, Coca Cola does business, and it can
continue to expand in valued places to be profitable.

Coca-Cola’s organisational design

Based on many reasons, organisational structure and designs vary among various
organisations. Organizational tasks such as financial marketing practises and human
resources are likely to impact the organisational structure as well as the nature of the
enterprise.(Amaral & Uzzi, 2007). A form of modernism is adopted by highly
decentralised structure. There are two major operational groups in the organisation. One is
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investment in bottling and the second is corporate. In addition, the operating groups are
classified into regions: Africa, Eurasia, North America, Latin America, the Pacific, and
the European Union. These are further classified geographically  into separate regions as
a result. (Plasketes, 2004).

Coco-Cola’s Life cycle

(Prashanthan.P, 2017)

In most countries, Coca Cola is in the maturity stage. The United States, Europe, Africa
and Asia are the regions where Coke is a good striker and a powerful candidate. However,
in respect to geographical locations, there are some differences. Coke has reached
saturation in the Europe and US and Europe, while the commodity still has room in Africa
and Asia and is still growing.

Need for Change and Environmental Analysis

PESTLE Analysis
PESTLE analysis is an imperative framework for businesses such as Coca Cola, as it
allows to understand industry trends and continually develop the sector. (Ho, 2014)
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Political factors
In order to have the right drinks, Coca cola must meet FDA regulations. Coca cola's
involvement in government lobbying means that their voice is politically being heard and
regarded (Coca Cola Company, 2018). The recent trade war between China and the
US has had a major effect on the prices of canned Coca Cola products. Owing to the raise
in tariffs on steel and aluminium, the company is under cost pressure.

Economic factors
Exchange rates and tax rates among the countries in which they market their beverages
affect Coca-Cola company. The business is supported by the latest trade deal between the
US, Canada and Mexico for open and equal trade between nations.

Social factors
Since declaration that the United States owes multiple overweight individuals to soft
drinks and fast food the company introduced sugar free drink as a better and healthier
version of coke. (Ramakrishnan, 2017). Consumer preference has changed from juicy
drinks to low-calorie drinks. To please the taste of customers, Coca cola has provided
more than 30 flavours in Japan. In 2014, it released a mega-successful campaign
by #shareacoke. People were urged to find bottles with the names to which they felt
associated.

Technological factors
In order to ensure optimal efficiency and preserve its market share, Coca Cola must
embrace the new technology. Coca cola is considered the first of its development to
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embrace the new innovations. They have a programme called " Bridge " which helps the
organisation to introduce technology before its rivals (Forbes, 2017) The freestyle
dispenser that helps customers to make their own beverage through a machine. Its
computer like interface also preserves market analysis data that can be further used by the
organisation to consider customer desires and expectations.

Legal factors
The company’s acts are conducted in compliance with the laws and regulations of the
nation under which they reside (Coca-Cola, 2018). In the past, in numerous countries,
Coca Cola has faced trouble owing to the amount of caffeine in the products. The
business was also charged of insufficient salaries and handling its workers
inappropriately, which attracted numerous trade union protests.

Environmental factors
Coca cola must work in an eco-friendly manner. Coca Cola manufactures its drinks in
100% recyclable containers to preserve the planet (Coca-Cola, 2017). In their 2018
sustainability study, they said they will strive for a world without pollution and set
different targets for 2020, such as a 25% percent rise in water usage efficiency, which is
18% currently.

SWOT Analysis

Strengths
Coca Cola is a renowned company and its success is its strength. People are familiar to its
flavour, ads, and logos. In the beverage industry, Coca Cola has a role that is not
comparable by any other company. For instance, 80% of Coca Cola's sales come from its
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20% loyal customers. People who drink Coca Cola are loyal and it has the potential to
market and manufacture goods exclusive to Coca Cola worldwide.

Weaknesses
The Coca-Cola has shown weaknesses to address the concern that people ask about the
harms of drinks from Coca-Cola. People don't believe Coca-Cola products are safe for
their wellbeing. In contrast, there were several rumours about the harmful consequences
that can be caused by consuming coke, pesticides in the coke in 2007 were rumoured
(Vedwan, 2007). Coca-Cola was criticised for misleading ads in 2017 (Fantozzi, 2017).
This had a major influence on the company's publicity.

Opportunities
Coca-Cola has multiple choices for its growth that it can take advantage of. Coca-Cola
will be able to aggressively sell its less popular products. Around 90 percent of the
world's population knows Coca-Cola and it will raise this to 100 percent. Coca-Cola is
capable of increasing the distance between itself and its rivals.

Threats
It is important to identify niches that their rivals do not use to make more products. As
individuals are becoming more health conscious presently, they should concentrate on the
healthier snacks and drinks. This will aim to resolve their vulnerability, which is the lack
of nutritious goods. Coca-cola can resolve this issue by running constructive campaigns
that benefit the community and culture in relation to the vulnerability in misleading ads.

Environmental challenges and Coca-Cola’s Response

Economies have disrupted as a result of the COVID-19 pandemic, triggering significant
losses. Many businesses have closed their shops in countries such as France, China, and
the United Kingdom due to heavy competition (Jin, 2018).

A rapid downturn in the away-from-home market has so far been the largest effect of the
pandemic on Coca-Cola, which has seen a 25 percent decrease since the pandemic gained
strength. This covers outlets for drinking and eating as well as on-the-go channels such as
supermarket comfort. However, Coca-Cola predicts a drastic change towards e-
commerce, both in the long term and during the pandemic, and thereby ramps up its
efforts in this environment. (Arthur, 2020)
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Coca-Cola seeks to minimise its product offerings including its headcount after a year of
pandemic-induced volatility.  That's according to a WSJ report indicating that finance
chief John Murphy plans to reduce the number of his brands, revise his marketing strategy
and buy out or lay off thousands of staff. (Hallstrom, 2020). The brand Coca-Cola is
global, but it must be applicable and relevant locally. The same message of pleasure, the
same architecture of the brand may be conveyed, but in each country, it needs to be
handled differently.

Strategy to Overcome Challenges

BCG Matrix of Coca-Cola
The BCG Matrix is also known as the growth-share matrix that companies use to group
their business divisions or goods into four distinct categories: Dogs, Cash cows, Stars, and
Question Mark.

Cash Cow
For years, Coke has become an industry leader in the category of carbonated soft drinks
and a big cash source for the business. All these years, coke has been the number one
option for millions of customers when it comes to choosing a carbonated soft drink, with
a presence in 200+ countries.

Star
Kinley and Dasani are still Coca-Cola-owned bottled water brands and are sold in markets
in numerous countries. In Asian and European countries, though Kinley is a reasonably
successful bottled water brand, Dasani has a strong foothold in the US market.
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The bottle-watered industry is currently under an evolutionary process due to the rising
demand for low calorie and balanced beverages.

Coke is looking to introduce various types of bottled water EG to appeal to different

consumer groups and their requirements: Coke now provides Kinley and Dasani sparkling
water in addition to only plain bottled water. They also introduced multiple varieties that
offer consumers a wide variety of choices.

Question mark
The beverage industry is at a tipping point and is experiencing a substantial transition. In
order to satisfy customers' changing demands for zero calories and no sugar beverages,
Coca-cola has launched a range of products/brands to meet this even. To build awareness
with these brands, the organisation is spending a lot of money. Such products are still in
the product lifecycle's initial phase and have a tremendous opportunity to expand. Coca-
Cola’s Diet-coke and a few products which come under the Question Mark quadrant are
Smartwater, Honest Tea, Sparkling Water, and Minute Maid.

In order to distinguish itself from rivals and increase brand recognition and market share,
increasing healthy lifestyle trends and new opportunities have caused the brand to spend a
significant amount of capital in healthier drinks.

Dog
Inability to deliver the anticipated outcomes makes the product the organization's cause of
failure, causing the management to withhold further investment in the product. As no
substantial capital is expected to be brought in by the commodity, potential spending is
seen as a waste of business money, which should instead be spent in a Question mark or
Star group.

Coke is seen as the declining market for carbonated soft drinks, attributed to the
decreasing sales of the Coke due to growing demand for reduced low-calorie and
balanced beverages and snacks. Due to all these variables, the coke brand that is actually
known as a cash cow for the company may inevitably collapse into dog quadrant in the
future.

Mintzberg Five Ps of Strategy

The 5 Ps of Strategy by Mintzberg is a model that helps to build strategy by analysing it
from five distinct perspectives. Owing to Coca Cola's Vision 2020, the increased focus
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should be on five P's: Plan, Ploy, Position, Pattern, and Perspective (Mintzberg, 1987).
The report discusses the opportunities and the distribution of financial resources to
accomplish the five P's. Each of the five P's are analysed separately to get an outline of
the 2020-21 vision of Coca Cola and the strategy path set out by the organisation to
achieve the vision.

Plan
By recognising its large product range, Coca Cola's product approach can be analysed in
its marketing mix. Coca Cola products are marketed in varying sizes and packets. Coca
Cola bottles also have distinctive brand-related shapes. In their respective divisions, Coca
Cola, Sprite and Fanta have wide market shares, but the performance is almost static.
They then produce tremendous cash for the company. Minute maid has a significant
market share and a strong rate of growth. Coca-Cola also greatly increased the annual
marketing capital, launched various fresh goods, and strengthened a representation to help
their retail clients exploit their sales as they continue to arrange in business for the
following five to ten years. Coca-Cola has recently launched a ground-breaking appliance
approach to promote its Sprite brand, showing that smartphone marketing has been an
important part of its marketing strategy.

Ploy
In its marketing blend, Coca Cola is adopting a 2nd degree price discrimination approach.
In that way, various premiums for goods in different segments are paid. It is considered
that the soda industry is an oligopoly of which there are few vendors and more
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consumers. The main competitors are Coca Cola and Pepsi. Coca cola items in that same
category are priced close to those of Pepsi products. If Coke prices its goods too high in a
specific segment relative to Pepsi, then consumers could turn, particularly in developing
countries where consumers are sensitive to prices. Therefore, all agree on the preservation
of similar prices in each section. Coca Cola, though, provides discounts on bulk sales and
also bundling the items often.

Position
The large delivery network highlights the marketing mix of Coca Cola's position policy.
Using its secret exclusive formula, the Coca Cola corporation manufactures the drink and
transports it to bottlers situated in different parts of the globe. Much of the time, the
products from the dealer are delivered on a daily basis to wholesalers who sell them to
consumers as per demand. Coca Cola has a vast sales chain and nearly all grocery stores
and supermarkets across the globe have its products accessible. Coca Cola products are
now sold all around the world to different hotels and restaurant chains.

Pattern
Coca Cola has set up the world's biggest delivery infrastructure in more than two hundred
countries with customers scattered across the world.

In addition, Coca-Cola improves the source of income by complementary goods such as

lays, etc. The company seeks to multiply by creative campaigns and goods in both
industrialised and emerging markets in order to provide guaranteed cash and sales flow.

For ads and branding, Coca Cola lays the bench mark. Coca Cola's advertising approach
relies on direct promotions through commercial campaigns using channels such as
television, internet commercials, sponsorships, print media, etc.

Perspective
In order to achieve Vision 2020, it is important to promote and improve people and their
perspective in a varied community and in the areas where the business works in order to
deliver superior performance. Therefore, employers play a critical role in the
organization's progress in lowering labour expenses by designing programmes that are
meant for the general benefit of workers, and the Pension Plan is one such programme.
The proposed proposal is split into two parts, one part of which accounts for the fixed
expense, while the other part is structured to account for age, operation, etc. These
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improvements are expected to compensate the employee who has been representing the
company for a long time while reducing the cost.

Business Strategy Levels

The company need to adhere to various strategies relating multiple items. Coca Cola
tracks activities in each nation with regard to foreign exchange and aims to follow
effective policies that are adaptive to fluctuating political and economic conditions. There
are four criteria when it comes to suggesting an investment strategy:

 Boost the long-term return to a satisfactory degree of risk on strategic assets

 Maintain a broad divergence
 Maintain cautious monitoring of the risk level of each investment vehicle
 set target long-term yields
 Build a corporate culture for strategic advantage.

In a good business model, we need a business level approach that gives an

organisation a strategic edge over its competitors (Hill, 2007). The business strategy
has to reflect consumer expectations and how they are met, as well as customer
classes and how they need to be met (Hill, 2007).

Global Environment Changes and Strategy

Depending on the environment of the sector, chaining, franchising and horizontal merger,
and the use of the internet are the main mode of strategic strategy in bigger businesses
comprising of large and medium-sized enterprises. The policies are dictated by consumer
demand in development industries (Hill, 2007). Companies need to define their business
plan from development to maturity by selecting an investment approach that benefits or
encourages it. If demand is declining, there are four key tactics that a business should
have:

 Leadership Service
 Harvesting
 Divestment from loss bearing ventures
 Marketing and focus in the Niche
 High-Technology Industry plan
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When new technology arrives, it revolutionises the structure of the market, radically
transforms the dynamics of competition, and allows the organisation to react to new
survival tactics. With this a technical paradigm transition takes place (Hill, 2007)

International globalisation for some firms suggests a way to gain better profits by
transferring the input of talents and goods generated from their distinctive competencies
to the market where such skills are missing in local rivals. Companies also follow
customary localization policy for their product selection, country-condition sales strategy,
and marketing strategy. In economically prosperous and progressive countries, the most
appealing foreign countries seem to be politically stable ones (Hill, 2007). The forms of
entering the international market are; export, joint ventures, licensing, wholly owned
subsidiaries and franchises.

The strategic plan for Coca Cola is to make it more than just a soft drink. It puts itself in a
position to help make life healthier, fun, simpler and more enjoyable for people. Coca
Cola's strategic approach is focused around prospects. Coca Cola knows because they're
in the soda business and also that they sell one billion cokes a day, and they know that
every day across the world, people consume forty-eight billion drinks. So, it now has only
two shares of the soda market in terms of global opportunity, so they need to design a
business method or plan to take that opportunity. As a brand it makes those promises,
such as promising consistency, promising value, jobs, retail margin, and promising to
make a living by selling Coca-Cola. Coca Cola should capitalise on its brand.

The company's business decision to work in a multinational marketing position is getting

more challenging. Global operations cannot be interpreted by managers in the form of
independent decisions (Pearce & Robinson, 2007). They are thus faced with trade-off
choices in which multiple goods, ecosystems, sourcing of capital and strategic alternatives
must be taken into consideration. Two major things also play an important role in those
industries, one is stockholder advocacy and the second is the multi-domestic market, in
which rivalry is split from country to country. A global climate brings several challenges
(Pearce & Robinson, 2007)

As the company's globalisation is growing there is more demanding role of global

management. There is an outburst of data and information with increased competition
internationally. The focus of the long-term strategy should be on speedy technology
creation and planning for strategic management to improve managerial trust.
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There are a lot of things an enterprise can do to succeed in a competitive global climate.
For each and every business to grow quite effectively, a business should have a strategic
plan. An organisation should respond to changes that emerge in the global economy
(Porter, 1986). Because of its bottling department, which operates in several countries, a
corporation such as Coca Cola operates on a country-to-country basis, offers it an edge in
the global climate.

Leadership Values to Manage Strategic Change

Leadership Styles
Democratic, autocratic and laissez-faire models are the three primary leadership styles.

Democratic

In the type of democratic leadership, the individual exchanges decision-making expertise

with the members of the group by upholding the interests of the members of the group
and maintaining social inclusion.

Autocratic
By maintaining close regulation of the policies and procedures given to the followers, the
authoritarian leadership style or autocratic leader maintains strict, close control over the
followers. These types of leaders ensure that only a separate professional relationship is
established in order to keep the focus. There is a clear distinction between the
authoritarian leader and their followers.

laissez-faire
The laissez-faire leadership style was first presented by the Lewin, Lippitt and White in
1938, together with the autocratic leadership and the democratic leadership styles. In the
laissez faire style leader delegates the tasks to their followers, assigns the duties to his
followers, thus supplying them with little or no guidance.

The performance of Coca Cola is attributed to their culture of laissez-faire and the culture
is relevant because it can influence people and business-related things. If the corporate
atmosphere is not transparent, it will influence the appearance and punctuality of the
organisation. This suggests that if Coca Cola keeps firm and unfriendly culture at
workplace, it might result in their workers not coming to work, or they could not like the
job they are offered. It can lead to the organisation missing out on the task and finding
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little chance to schedule for a substitute. Alternatively, the leader can inspire them by
multiple styles such as coach style, cooperative, democratic, or even parent-style
leadership if a group of staff is unmotivated to execute their duties (Canady, 2020).

There has to be a balance in leadership styles within the system. There is an autocratic
management structure on the factory floor in Coca Cola, in which the workers are
supervised by the bosses and obey their instructions. The elements of democracy are still
there through team work and uniforms.

Feedback from Coca-bottling company around the world offers valuable knowledge that
is ingrained by leaders in their strategies.

The method of modifying Coca-Cola's strategy would require considerable sums of time
and resources, which is why the leaders should not only adopt a single style of leadership,
but a mix is required instead (Van Wart, 2013).

In order to remain competitive in an unpredictable political, social and economic climate,

organisations need to adapt change and follow complex survival tactics (Hiatt & Creasy,
2003). On a constant basis, all environmental variables involved in the perception of
nature change. Human nature opposes transition, but it takes carefully designed change
management techniques to manage the resistance. The aim of this report is to explain the
relevance of leadership styles to manage strategic change in the organization's priorities
and management procedures, how all stakeholders can be involved in the effective
application of change and the steps that an organisation can follow to achieve it
successfully.

Change and survival

For organisational sustainability and survival is inevitable. So, in order to retain its value
in the market, the organisation should implement improvements in management
strategies. Psychologists and organisational experts have developed a range of change
management theories, methods and philosophies that enable positive changes in the
company (Paton & MacCalman, 2008). There can be three levels in change management;

 Preparation for change,

 Managing and implementation of change, and
 Change reinforcement.
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Preparing for the stage of transition means assessing the potential and capacities of
change and designing a plan that matches those capabilities. The second phase involves
activities such as the preparation and execution of first phase techniques. The final stage
entails strengthening the change and procedures. It is done by gathering and reviewing
input results, recognising weaknesses and dealing with a determined degree of opposition
from outside and inside the organisation. Lastly, corrective steps are taken to effectively
achieve the process of change management.

Therefore, the turn towards employee participation is appropriate by all the Coca-Cola
market sector, anywhere they are situated around the globe, if they have to harvest the
fruits obtained from a successful integration method.

The Coca Cola Corporation can use tools for managing change to ensure that all people
who are expected to be part of the process of change are involved. Force field analysis is a
tool developed by Kurt Lewin to analyse the factors that cause resistance to the
mechanism of transition (Bass, 2009). The Coca Cola Company would be able to induce
people who require adequate training by doing Force Field research.

Coca-Cola has decision-making engine at its heart. Something which halts the decision-
making process hinders its competitiveness, slows down its time to market and makes it
susceptible to speedy rivals. This difficulty has never been greater than in the high-speed,
volatile media market of today, where the proliferation of fresh, fragmented marketing
channels can overpower brands’ decision-making and contribute to stagnation.

If Coca-Cola's executives do not perform well and the corporate social duty for the use of
plastics and the protection of land is neglected, there will be a significant disruption of its
activities and prestige (Zulch, 2014). When it is undertaking a transition, it is a
challenging job to keep reminding the organisation of its principles and ideals, but Coca-
Cola's core values include becoming a sustainable organisation, and if this is ignored, the
change in the plan will only be a disappointment.

Shift is unavoidable with the volatile conditions in which corporations deal today.
Therefore, the emphasis should not be on preventing change, but on bringing about a
seamless transition by dialogue about the move towards the new change, and on making
clear that it benefits of all concerned parties. A specific attention to organisational
structure, design, philosophy, management and leadership is needed to see how the
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Coca-Cola
transition will be ideally matched to the organisational priorities and strategies in order to
effectively incorporate organisational change of some type.

Recommendations
Few sugar reduction measures need to be taken as buyers are promoting healthy habits
and advances in packaging products by limiting the use of plastics in packaging. People
should limit their daily intake of added sugar to no more than ten percent of their overall
energy or calorie consumption (World Health Organisation). The Coca-Cola Company's
plastic bottle pollution and water shortages have a major detrimental influence on the
climate. The Coca-Cola Group's other challenge is to raise rivals in the non-alcoholic
beverage markets, leading the company to require more creativity and transformation to
beat rivals. Leaders would need to ensure that Coca-Cola activities do not affect the
environment and that their goods are safe for all to use (Mikkelson, 2015).

In both human and animal models, the scientific findings confirm the hypothesis that
excessive sugar intake has detrimental metabolic consequences such as elevated
inflammatory markers, dyslipidaemia, weight gain, NCD associated changes and
increased risk of type 2 diabetes. (Gallagher, 2016).

In addition, the non-alcoholic beverage industry has grown highly competitive due to new
entrants in the market. PepsiCo, which was founded 12 years after Coca-Cola, is the
principal and closest rival of the Coca-Cola Company. Pepsi has developed comparable
and complementary market lines that have strategic benefit for PepsiCo over Coca-Cola.
Diversification of the PepsiCo Corporation into a snack business has assisted the company
in distribution and revenue growth. In this situation, the Coca-Cola should adopt good
marketing tactics to defeat the opponent.

The Coca-Cola Company uses three million tonnes of plastic for packaging in one year. In
the natural atmosphere, large quantities of plastic products are disposed of. Of these,
plastic waste bottles are larger in proportion, are not environment friendly (Zhao & Gong,
2017). Since plastic is indeed not biodegradable, and it is made of toxic compounds,
pollution caused as a result has a huge negative impact on the natural environment.

High sugar is potentially harmful to health, growth in rivals, plastic bottle waste and water
shortage are the issues faced by Coca-Cola Company. Such challenges can lead to
multiple detrimental effects on the social and natural world. Consuming high sugar drinks
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Coca-Cola
and plastic bottles can harm the wellbeing of customers and degrade the environment. The
growth in rivals may lead to a decline in Coca-Cola business revenues and a decrease in
market share. Coca-Cola company must take steps to maintain and boost its sales and
prestige.

Next, the Coca-Cola Company is recommended to fix the issues to frequently update
technology. To ensure better performance and increase quality, the organisation has to
replace outdated technologies with new technology. Since the technology is changing too
quickly, Coca-Cola Company has to keep track of the technological advancement and
ensure that the challenges of plastic bottle waste and water shortages are accurately and
successfully addressed. The problems of water shortages, for example, have many
technological solutions to mitigate the crisis, but for better outcomes, Coca-Cola
Company needs updating technology.

Conclusion
With a dedication to become a market leader in the area of wellness, Coca-Cola can move
forward with a strategy of environmental conservation and sustainability. In terms of
marketing, it needs to adopt an aggressive approach. In conclusion, workplace safety,
water replenishment and reforestation should be enforced by Coca Cola. Coca Cola can
still use water wisely since it is used in many beverages by Coca Cola and lack of water
could be a major concern in the future. Coca Cola has a good competitive advantage, and
market growth has also been seen to be fast. To advance market growth and market
creation policy, Coca Cola needs to build and use internal power. Products like water,
juices, snacks and other nutritious products should be subject of focus for the company.
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Coca-Cola

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