SWOT ANALYSIS AND IMPROVEMENT

Running head: SWOT ANALYSIS AND IMPROVEMENTSWOT Analysis and ImprovementAlberto MoreuRasmussen CollegeAuthor NoteThis assignment is submitted on May 29, 2016, for Andrea Tamboureas TRA 4017Procurement and Supplier Relations course.1SWOT ANALYSIS AND IMPROVEMENT2Abstract"The Coca-Cola Company is the world’s largest beverage company. We own or licenseand market more than 500 nonalcoholic beverage brands, primarily sparkling beverages but alsoa 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 topfive nonalcoholic sparkling beverage brands: Coca-Cola, Diet Coke, Fanta and Sprite. Finishedbeverage products bearing our trademarks, sold in the United States since 1886, are now sold inmore than 200 countries. On this paper we will analyze the Strengths, Weakness, Opportunitiesand Threats of Coca Cola company as well their improvements that they needs.SWOT ANALYSIS AND IMPROVEMENT3SWOT Analysis and ImprovementStrengthsThe coca-cola company has many strengths and here we are going to discuss three ofthem 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 thecompany products, averagely it is the largest investor in the advertisement in the world therecords show that. This advertisement power has helped the company to sell more of its productsand since the sales are there then the revenue increases making the company to be able to investin 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 marketingof the products, as the sales increases and more products are well known by the customers thenthe company has a potential to grow.3. Brand name:The company is very competitive to the other similar companies since their products hasa good name to the users this makes the users and the consumers to increase more and more.SWOT ANALYSIS AND IMPROVEMENT4WeaknessesThe coca-cola company has many weakness and the three that we are going to discuss aremanagement of water, Expenditure, Fluctuation of foreign currency and absence in healthbeverage.1. Management of waterWater is the main product of the production of the products of the company, this helps inthe processing of the farm products that are used in the production. Water in many places is arare product and this one makes the company to extract a lot of water raising and demand forfood problem.2. ExpenditureThe company uses a lot of the resources not majoring on the main factors which will leadto the improvement of the product, though it has majored in the advertisement and the rawmaterials but they need to do more on it since it is the main key in the production and selling ofthe products.3. Fluctuation of the foreign currencyThe company earns a lot of the revenue through making the sales of the drinks that iswell known in the world and also incurs expenses in the buying of the raw materials, they usethe U.S dollar ,Japanese Yen, the Euro, Brazilian real, the statements are consolidated and thismakes the company to translate the revenues the exchange at the end of the day affects thereport.SWOT ANALYSIS AND IMPROVEMENT54. Absence in health beverages – If you watch the news, you would know that obesity amajor problem affecting people nowadays. The business environment is changing andpeople are taking measures to ensure that they are not obese. Carbonated beverages are one ofthe major reasons for fat intake and Coca cola is the largest manufacturer of Carbonatedbeverages. The inference is that the consumption of beverages in developed countries might godown as people will prefer a healthy alternative.OpportunitiesThe coca-cola company has many opportuniites the three discuss are Diversification,Extend reach and consumers.1. DiversificationThe company has been very hard in the utilization of the war chest to make the mostgrowing categories of the beverages. Most of the hot drinks are planning to feature the cokebranded products.2. Extended reachThe company has an opportunity to reach too many nations since the demand is evenincreasing to the some areas where the products have not reached since they have been hearingof it through the social media and effort in the advertisements.3. ConsumersSWOT ANALYSIS AND IMPROVEMENT6The company has got consumers who have not been established and it should strive in thereaching these customers and consumers.ThreatsThe coca-cola company has many Threats and the three discuss are Nutritious selections,Indirect competition and Management.1. Nutritious selectionsThe nutritious selection of many beverage companies have got this threat of the sideeffects in the of the nutrition’s they choose to the consumers and coca-cola company is one ofthem.2. Indirect competitionThere are some companies like star buck who compete the coca-cola company this timenot direct but indirectly, they try to place a dent on the market share of the company.3. ManagementThe company should be changing the management after some time because it has got along serving management which can be doing some dubious business underground and this cancollapse the company.Improvement StatementThe company should major in the putting more finds in the improvement of the rawproducts and the use of the experts in the processing stage and also it should make theadvertisements more vibrantly but not use more funds on the advertisements. So far the productsSWOT ANALYSIS AND IMPROVEMENT7of the company and the brand name of the company is well known and this should stop thecompany from majoring on the more expenditure to the marketing because the products are wellknown in the world and this should be diverted to the making of the new product and increasethe diversification of the products.When there is a number of challenges that face the company but there are having a goodpredictions of the future. The size and the financial status will be having the big percentage in theacquisition of the future target. Also the company should address their Absence in healthbeverages and create some kind of beverages or invest money in the health addressing theobesity problem that most of their drinks are related to it (Bashin, 2014, p. 2)