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Forward-Looking Statements. This presentation may contain statements, estimates or projections that constitute “forward-looking statements” as defined under U.S. federal securities laws. Generally, the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “will” and similar
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Forward-Looking Statements This presentation may contain statements, estimates or projections that constitute “forward-looking statements” as defined under U.S. federal securities laws. Generally, the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “will” and similar expressions identify forward-looking statements, which generally are not historical in nature. Forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from The Coca-Cola Company’s historical experience and our present expectations or projections. These risks include, but are not limited to, obesity and other health concerns; scarcity and quality of water; changes in the nonalcoholic beverages business environment, including changes in consumer preferences based on health and nutrition considerations and obesity concerns; shifting consumer tastes and needs, changes in lifestyles and competitive product and pricing pressures; the impact of the global credit crisis on our liquidity and financial performance; increased competition; our ability to expand our operations in developing and emerging markets; foreign currency exchange rate fluctuations; increases in interest rates; our ability to maintain good relationships with our bottling partners; the financial condition of our bottling partners; increases in income tax rates or changes in income tax laws; increases in indirect taxes or new indirect taxes; our ability and the ability of our bottling partners to maintain good labor relations, including the ability to renew collective bargaining agreements on satisfactory terms and avoid strikes, work stoppages or labor unrest; increase in cost, disruption of supply or shortage of energy; increase in cost, disruption of supply or shortage of ingredients or packaging materials; changes in laws and regulations relating to beverage containers and packaging, including container deposit, recycling, eco-tax and/or product stewardship laws or regulations; adoption of significant additional labeling or warning requirements; unfavorable general economic conditions in the United States and other major markets; unfavorable economic and political conditions in international markets, including civil unrest and product boycotts; changes in commercial or market practices and business model within the European Union; litigation uncertainties; adverse weather conditions; our ability to maintain brand image and corporate reputation as well as other product issues such as product recalls; changes in legal and regulatory environments; changes in accounting standards and taxation requirements; our ability to achieve overall long-term goals; our ability to protect our information systems; additional impairment charges; our ability to successfully manage Company-owned bottling operations; the impact of climate change on our business; global or regional catastrophic events; risks related to our acquisition of Coca-Cola Enterprises Inc.’s North American business operations; and other risks discussed in our filings with the Securities and Exchange Commission (SEC), including our Annual Report on Form 10-K for the year ended December 31, 2009 and our subsequently filed Quarterly Reports on Form 10-Q, which filings are available from the SEC. You should not place undue reliance on forward-looking statements, which speak only as of the dates they are made. The Coca-Cola Company undertakes no obligation to publicly update or revise any forward-looking statements. Strategic management Analysis Year 2007 • MojtabaSaeidinia • ShohrehTabibjam • YasamanDarabiDarabkhani • MarzieDjadidi • MohammadrezaAghaei • NimaShakoori • AminMoazami Reconciliation to US GAAP Financial Information The following presentation includes certain "non-GAAP financial measures" as defined in Regulation G under the Securities Exchange Act of 1934. A schedule is posted on the Company's website at TheCoca-ColaCompany.com (in the “Investors" section) which reconciles our results as reported under General Accepted Accounting Principles and the non-GAAP financial measures included in the following presentation. 2
Company Background • Coca-Cola was founded in 1886 by Pharmacists, Dr. Pemberton • Coca cola company is the world’s largest beverage • The company has 400 brands. • The revenue of the company is approximately $24 billion • Employing about 71000 people • world wide in over 200 countries
Mission • To refresh the world in mind, body and spirit • To inspire moments of optimism - through our brands • and actions • To create value and make a difference everywhere we engage
Improved Mission • Our mission is to be pioneer in non alcoholic beverage products and concentrated on offering the best beverage to consumers. We pursued to assess rewards to our investors and distributers and above of these to our employees, for creation opportunities and growth in our company. Also we strive to observe morality, justice and truthfulness in one by one of our process. • Our mission is that we attained success in variety parts in business, also we positive effect on people and society, we make our decisions based on customer’s needs.
Vision • People: Being a great place to work where people are inspired to be the best they can be. • Portfolio: Bringing to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs. • Partners: Nurturing a winning network of customers and suppliers, together we create mutual, enduring value.
Vision • Planet: Being a responsible citizen that makes a difference by helping build and support sustainable communities. • Profit: Maximizing long-term return to shareowners while being mindful of our overall responsibilities.
Improved Vision • Coca cola company want to have the best performance in all aspects of the world such as economic, social and environment. In fact we want to create better a tomorrow for all of the people in world. • Our vision is, concentrate on environment activities and profit to society and people and also assurance to construct shareholder value by making our company as a firm Strong and Stable.
Mission Financial analysis Value chain IFE 2
Financial analysis Unit Case Volume Growth Operating Income Growth 7% 6% Long-term Growth target 4% 3% Long-term Growth target
External Assessment Analysis PEST PORTER’S FIVE EFE
PEST • Political • Economic forces diagnosis • Social cultural, demographic and environmental forces • Technological
PEST Social cultural, Demographic and Environmental Forces 1.Obesity 2.FIFA world cup Germany 2006
PORTER’S FIVE FORCES MODEL Potential development of substitute product Rivalry among competing firms Potential entry of new competitors Bargaining power of suppliers Bargaining power of consumers
Potential development of substitute products • Latin America market • Tea
Strategy Analysis Space Matrix IE Matrix SWOT Analysis QSPM
Space Matrix • Most appropriate strategy: • Backward, forward, horizontal integration • Market penetration • Market development • Product development
Space Matrix • Coca Cola placed in forth quadrant. • Competitive strategies. • Backward, forward, horizontal integration and Market penetration and Market development and Product development.
IE Matrix • Most appropriate strategy: • Market Penetration • Product Development
IE Matrix • Coca Cola placed in fifth division which is Hold and Maintain area. • The recommended strategies for this region are Market penetration and Product development. • Advertise more their beverages • Distribute its new product • Entering in new market by well known • brand name
SWOT Analysis Strengths Opportunities
SWOT Analysis SO Strategies • The company has the opportunity to enter into new industries such as snacks (Pepsi earns 60% from snacks) and confectionary as Cadbury does. (S8,S9,S10,O1) • The success of the company in 2006 FIFA World Cup in Germany is an opportunity for selling more energy drinks in coming events like The Olympic Games in 2008 in China. (S4, S7,O4)
SWOT Analysis SO Strategies • The Coca-Cola company should penetrate on juice/sports drinks in Latin America market by youth target focusing. (S5,O6,) • The company should invest more on e-business and e-marketing in consideration of their previous success in digital marketing. (Latin America, “MyCokeRewards” in North America) (S5,O7) • Using well-known brand name of company to grab more market share in bottle tea. (S9,S10,O3)
SWOT Analysis Weaknesses Opportunities
SWOT Analysis WO Strategies • Entering into the world cup 2010 in South Africa would be an opportunity for company to increase its operating revenue in region. (W13,O4) • The break-off between Coke and Nestle has made an opportunity for expanding ready to drink products in Japan and other countries. (W16,W17,O3,O5)
SWOT Analysis Strengths Threats
SWOT Analysis ST Strategies • Penetrating in snack business (Pepsi earns 60% from snacks) and confectionary. (S9, S10, T10) • More penetration in local market (S1,S8,T14) • Joint-venture with Cad-berry company (S1,S8, S9, S10,T10,T13) • Developing their health drinks products (S10,T11,T12)
SWOT Analysis Weaknesses Threats
SWOT Analysis WT Strategies • Investing in Healthy drinks would be an advantage for company. (W11,T8,T11,T12,T15) • Implement R&D department for company (W19,T9,T16)
Driving Results in North America
North America • Focusing more and more in e-marketing and e-business in this area base on the success of coke in this area by applying “My coke rewards “in 2006 and because the united states has the most user of internet in all around the world. • Choosing a good penetration strategy for United States in order to strengthen their brand more and more in this area. • Increasing unit case volume in the United States since it has no change in this part between 2005 and 2006 and we know that it’s the homeland for producing Coke.
North America • Focusing more and more on promoting calorie burning beverages like tea and coffee in the United States since the obesity problem increases more and more in this area. • Paying more attention on using recyclable bottles especially in south of California because people are really conscious about environment in this region and base on the government regulation in this regards.
Driving Results in Europe
Europe • Concentrating on healthy drinks and sport drinks and increasing the quality of products by using a higher quality water. • Focusing on advertisement and new designs for their packaging. • Improving their collaboration both internally and externally during dealing with customers in order to redirect the skills and talents of the employees to more productive purpose. • Spending more time with customers • in order to understand their real taste • and satisfy their needs.
Europe • Using customers’ feedback for having a better strategy for future. • Increasing company’s advertisement in Europe especially in Belgium, France and England .England is has half of Coca Cola’s market in Europe. • Investing in high tech water recycling in order to decrease the costs of raw material. • Increasing price and quality of products in a parallel way and at the same time in Europe since Europeans are not price sensitive and they pay more attention to the quality of the products
Driving Results in the Pacific
East and South Asia and Pacific Rime • Having more investment in China and increasing units in this area and being one of the sponsors of 2008 Beijing Olympic games in China by referring to the company’s success in FIFA World Cup in 2006 and also because it’s a very huge market for company’s products in Asia. • Investing more in tea, coffee business and penetrating more in countries such as Japan after breaking off the company’s joint venture with Nestle. • Having a segment in India and focusing on the way of using fewer and fewer chemical materials for bottling and distributing the products in this region more conveniently.
East and South Asia and Pacific Rime • Focusing on using recyclable glasses water which has less harm for the environment. • Promoting the products with the lower COGS in Philippine and penetrating more in this area by increasing their market share. • Increasing their distribution in populated areas in Philippine and allocating more budgets to this part since it is a very populated country and full of opportunities. • Adding advertisement in this area and using • famous celebrities in this area since people • pay a special attention to actors and actresses • particularly in South Asia.
Driving Results in Eurasia and Africa
Coke Segments Pie Chart in 2006 • Coke Mission statement: We will think and act locally.