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Presented By:
            Usman Rehmani
Usman Rehmani
VISION
 STATEMENT
 Be, and be
 recognized
 as, the best
  consumer
products and
   services
 company in
 the world.


                Usman Rehmani
MISSION
   STATEMENT
We will provide products and
services of superior quality and
value that improve the lives of the
world's consumers. As a result,
consumers will reward us with
leadership sales, profit and value
creation, allowing our people, our
shareholders,       and         the
communities in which we live and
work to prosper. We will provide
branded products and services of
superior quality and value that
improve the lives of the world's
consumers,      now     and     for
generations to come.
RECOMMENDED
     VISION & MISSION
VISION
P&Gs intent is to offer the highest quality consumer
product goods at the least expensive price for the
widest spectrum of customers in a convenient format.

MISSION
coca-cola will work with its suppliers and distributors
to ensure that its products are recognized both in the
market and on the supply side as contributory to a
retail distributors bottom line.
VALUES
   Integrity
   Passion for Winning
   Leadership
   Trust
   Ownership
PRINCIPLES
 We Are Strategically Focused in Our
    Work.
    We Value Personal Mastery.
   We Seek to Be the Best.
   The Interests of the Company and the
    Individual Are Inseparable.
   We Are Externally Focused.
   Mutual Interdependency is a Way of
    Life
OBJECTIVES
      To build existing core businesses into stronger
    global leaders.
      To grow leading brands in big countries, winning
    customers.
      To develop fast-growing, higher-margin with
    global leadership potential.
      To regain growth momentum rate and leadership
    in Western Europe.
      To drive growth in key developing markets.
COMPANY OVERVIEW & HISTORY
 Procter and Gamble is actually the
name of two persons William
Procter    and     James   Gamble
immigrants from England &
Ireland respectively.
   Procters business was candle
making and Gambles business was
soap making.
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History Of coca-cola In Pakistan
 coca-cola Pakistan, headquartered in Karachi,
  commenced operations in Pakistan in 1991.
 In 1994 coca-cola acquired a soap-manufacturing
  facility Hub, Baluchistan.
 In 2004, a PUR facility was set up to produce P&Gs
  water purifying technology.
 Today, the Hub plant is equipped with state-of-the-
  art manufacturing technologies and quality assurance
  processes and systems, reflecting the company's
  values of safe, hygienic and ethical manufacturing
  practices.
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DISTRIBUTION CHANNEL
coca-cola itself has no distribution channel rather
 they were initially distributing its products through
 International Brands Limited (IBL).
In the 1940s, Abudawood became the exclusive
 distributor of coca-cola(coca-cola) brands throughout
 Saudi Arabia.
 In 1956, Abudawood and coca-cola established a
 joint-venture factory in Saudi Arabia (called Modern
 Industries Inc.). In the same year Abudawood started
 distribution of coca-cola products in Pakistan.
SOCIAL RESPONSIBILITY




     Pampers Hospital Education Program
     Safeguard School Education Program
SUSTAINABILITY AT coca-cola
FINANCIAL ANALYSIS
Balance Sheet 2010

 During the previous 3 years P&Gs assets have
 diminished by 10%.

 While long term debt has been constant short term
 debt has decreased by 48%.

 coca-cola has an extremely low ratio of tangible
 assets to intangible assets.
June 2008   June 2009   June 2010



Total Assets        143992.00   134833.00   128172.00

Total Liabilities   74498.00    71734.00    67057.00

Total Equity        69494.00    63099.00    61115.00

Short Term Debt     13084.00    16320.00     8472.00

Long Term Debt      23581.00    20652.00    21360.00

Current Assets      24515.00    21905.00    18782.00

Intangible Assets   98837.00    93466.00    90146.00
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Porters Five Forces
Continued..
 faces very strong buyers power because retailers like
    Wal-Mart are able to negotiate for pricing with
    companies.
   limited supplier power because of the costs they
    incur when switching suppliers.
   low threat of new entrants because a huge capital
    amount is required.
   high threat of substitutes.
   high level of rivalry exists among existing firms.
PEST ANALYSIS




            Usman Rehmani
SWOT ANALYSIS (Opportunities
and Threats)




           Usman Rehmani
Opportunities
 Developing markets.
 Niche markets.
 New products.
 To invest in the segment for
children.
 To introduce food and
beverages for Pakistani market.
 Emerging consumer market
(China& India).
 Manufacturing facilities in
China.
 Selling through internet.
Threats
Uncertainty in
pharmaceuticals business.
 Increase in prices of raw
 materials.
 Unilever is the biggest
threat.
 Price competition around
  the world.
 Political disruption.
COMPETITORS




       Usman Rehmani
CPM
                                   coca-cola    Kimberly-    Johnson &
                                                  Clark       Johnson

 Critical Success       Weight   Rating Score Rating Score Rating Score
     Factors
Advertising              0.20      4     0.80   1     0.20   3     0.60
Product Quality          0.10      4     0.40   4     0.40   3     0.30
Price Competitiveness    0.10      3     0.30   3     0.30   4     0.40
Management               0.10      3     0.30   4     0.40   3     0.30
Financial Position       0.15      3     0.45   4     0.60   3     0.45
Customer Loyalty         0.10      4     0.40   4     0.40   2     0.20
Global Expansion         0.20      2     0.40   4     0.80   2     0.40
Market Share             0.05      4     0.20   1     0.05   3     0.15

       Total             1.00            3.25         3.15         2.80
EFE Matrix
 Key External Factors                         Weight   Rating   Weighted
                                                                Score
 Opportunities
 1. Global markets are a significant growth     0.15       1       0.15
    market
 1. Increased demand due to new health and      0.05       4       0.20
    beauty needs.
 1. Internet advertising growth.                0.05       1       0.05
 1. coca-cola is a category killer.             0.14       4       0.60
 1. Increasingly health conscious public.       0.10       3       0.30
 Threats
 1. Economic downturn.                          0.10       3       0.30
 1. Increased competition from rivals.          0.05       3       0.15
 1. Lack of product acceptance.                 0.05       2       0.10
 1. Poor media exposure for new products.       0.10       4       0.40
 1. High core commodity prices affecting        0.20       1       0.20
    product cost.
               Total                            1.00               2.45
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SWOT ANALYSIS (Strengths and Weaknesses)
Strengths

 large scale operations.
  very strong brand name and leading market
 position.
  coca-cola has a huge customer base.
  innovations to sustain its customer base.
  Diversified product portfolio.
  Strong focus on research & development.
  Strong global presence (160countries).
Core Strengths
Coca-cola focuses on five core strengths required to
win
in the consumer products industry.
Weaknesses
less innovative than its major competitor Unilever.
 products have failed in certain geographic areas. For
example, Oil of Olay failed in Pakistan, Camay failed
here as well.
Dependent on Wal-Mart stores for majority of its
revenue.
Production facilities in 43 countries while operations
in more than 160 countries.
IFE Matrix
                   Key Internal Factors                  Weight Rating   Weighted
                                                                          Score
Internal Strengths
1.   Largest home consumer product goods manufacturer.    0.05    4        0.20
1.   Innovative products format.                          0.10    4        0.40
1.   Increasing free cash flows.                          0.05    3        0.15
1.   Career development program.                          0.15    4        0.60
1.   Strong management team.                              0.05    3        0.15
1.   Strong logistics supply chains.                      0.05    3        0.15
1.   Discount pricing structures.                         0.05    3        0.15
1.   Long-range planning.                                 0.05    4        0.20
1.   Reputation for quality.                              0.05    3        0.15
1.   Outperforming financial ratios                       0.05    3        0.15
Internal Weaknesses
1.   Many products are not personal care necessity.       0.04    2        0.08
1.   Little unified brand focus.                          0.05    2        0.10
1.   Narrow margins.                                      0.05    2        0.10
1.   High operating costs.                                0.11    1        0.11
1.   Uncertain joint marketing ventures.                  0.10    1        0.10
TOWS MATRIX
                                    S- Strengths                              W- Weaknesses
                                    Innovative products.                     Lack of direct marketing.
                                    Professional management.                 Lack of new media marketing
                                    Diverse product lineup.                  channels.
                                    Plans for acquisitions.                  Dependence on few major
                                                                              product categories.


O- Opportunities                    S-O Strategies                            W-O Strategies
Expanding marketing strategies.    Develop new products to target niche     More focused marketing
Undifferentiated rival products.   markets.                                  strategy.
Consumer demand.                   Utilize managerial competencies for      Liaison with good distributors
Niche markets.                     aggressive marketing strategy to attain   to increase online sales.
                                    competitive advantage.                    Utilize niche markets rather to
                                    Continue diversification to fulfill      depend upon few product
                                    consumers demand.                        categories.



T- Threats                          S-T Strategies                            W-T Strategies
Price competition.                 Utilize buying volume to put pressure on Develop good partnership with
Regulations.                       competitors.                              internet consumer product goods
Rival competitors.                 Continue product diversification to      distributors to increase sales.
                                    offset increased chances of competitor
                                    entry.
SPACE Matrix
Financial Strength                                                                         Ratings

   The companys original capital ratio is 7.23 percent which is 1.23 percentage points     1.0
    over the generally required ratio of 6.                                                  1.0
                                                                                             3.0
   P&Gs return on assets is negative 8.7 compared to industry average of positive 8.0.
                                                                                             4.0
   The companys net income is continually expanding.                                       9.0
   The companys revenue increased 14 percent.


Industry Strength                                                                          Ratings

   Increasing market share provides geographic and product freedom.                         4.0
                                                                                             2.0
   More competition in global markets.                                                      4.0
   Kimberly-Clark provides a strong industry benchmark.                                    10.0

Environmental Stability                                                                    Ratings

   High inflation rate in developing countries and political instability are big
                                                                                             -4.0
    hurdles for international business growth.                                               -4.0
   Merger and acquisitions are also difficult due to credit markets.                        -5.0
   coca-cola get more of its revenue fr0m US market.                                       -13.0

Competitive Advantage                                                                      Ratings

   coca-cola focused on home consumer product goods for health and beauty.
                                                                                            -2.0
   coca-cola is a recognized category killer.                                              -5.0
   In addition of Kimberly-Clark, Johnson & Johnson is a trouble creating                  -2.0
    competitor.                                                                             -9.0
Conclusion:
ES average is -13.0 歎 3= -4.33
IS average is +10.0 歎 3= +3.33
CA average is -9.0 歎 3= -3.00
FS average is +9.0 歎 4= +2.25
Directional vector coordinates:
x-axis: -3.00 + (13.33) = 0.33
y-axis: -4.33 + (12.25) = -2.08




Outcome:
coca-colashould pursue Competitive Strategies.
QSPM Chart

QUANTITATIVE STRATEGIC PLANNING MATRIX
                                                                     Strategic Alternatives
                    Key Factors                      Weight   Joint Ventures in Joint Ventures in
                                                                   Europe               Asia
  Opportunities                                                 AS       TAS        AS       TAS
  1. Europe is a potential growth market.            0.10     4        0.40     2        0.20
  1. The US market continues to develop              0.15     4        0.60     3        0.45
     new product categories.
  1. Free market economies increasing in             0.10     2        0.20     4        0.40
     Asia.
  1. Demand for health & beauty products             0.05     -        -        -        -
     is increasing.
  Threats
  1.   Competitor threats such as Kimberly-Clark.    0.10     3        0.30     4        0.40

  1.   Economic contraction in its main US market.   0.05     -        -        -        -

  1.   Lack of defining product to attract continued 0.10     4        0.40     1        0.10
       foot-traffic in the companys retail
       distributors.
  1.   Environmental issues with some home           0.05     -        -        -        -
       consumer product goods products.
  1.   Low value of US dollar abroad.                0.15     4        0.60     2        0.30
Strengths
1. Profits rose                                  0.10   4   0.40   2   0.20
1. Strong management team                        0.10   -   -      -   -
1. New employee development programs.            0.10   4   0.40   2   0.20


1. Diversified product portfolio.                0.05   4   0.20   3   0.15
1. Performance driven management.                0.05   -   -      -   -
1. Capacity utilization increased from 60%       0.15   3   0.45   4   0.60
   to 80% for all manufacturing facilities.


Weaknesses
1. Johnson & Johnsons troubles could be         0.05   -   -      -   -
   contagious.
1. Restructuring costs could be significant if   0.05   -   -      -   -
   the market requires.
1. International expansion suffers.          0.15       2   0.30   4   0.60
1. The company is slow in leveraging its     0.15       4   0.60   3   0.45
   global operations due to current economic
   conditions.
1. Pre-tax profit margins are narrow.            0.05   -   -      -   -
Sum of Total Attractiveness Score                1.0        5.30       4.65
INTERNAL-EXTERNAL (IE) MATRIX
BOSTON CONSULTANT GROUP MATRIX
CONCLUSION
 coca-colais the worlds largest producer of household
  and personal products by revenue with net sales of
  $83503 million with its products reaching 4 billion
  people worldwide.
 Being in more competitive position coca-cola must
  continue to scan the environment for possible
  threats, whether through acquisition or Greenfield
  investments.
 coca-cola must continue to innovate because
  economies of scales allow coca-cola to spend much
  more than rivals on research and development.
 coca-cola will also have to control its pricing and

 reduce outside vendors.


 coca-cola will want to continue its strong support

 and funding of its world class research and
 development in order to continue to provide
 innovative products to touch the lives of customers
 worldwide.
RECOMMENDATIONS
 coca-cola may have a series of strategies which can

 be more attractive to the company. Such series of
 alternatives may not result in an alternative internal
 rate of return (IRR) relative to the cost of the
 strategies. Hence, in such time of economic pressure
 it is recommended to do nothing and continue
 business as usual and even avoid organic expansion
 also.
 Another recommendation is to expand organically.

 coca-cola has access to a greater number of
 developed and developing markets.
 The   company    has   also   product    co-branding
 opportunities because of its size and volume of sales.
 Thus, coca-cola can opt to expand through organic
 growth by establishing another brand category that
 will target specifically the UK and European markets
 to increase companys continued growth.
 Third suggestion is about acquisition that the company can
  acquire its primary competitor. Through such acquisition the
  established company can gain immediate sales capacity and
  market position without investing in substantial marketing
  effort.
 New       products   must   be    introduced   which   must   be
  appropriately positioned relative to its competitors but this
  would involve thousands of dollars in terms of marketing.



                          Usman Rehmani
                        Conts no= 03007477593

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Presentation p&g

  • 1. Presented By: Usman Rehmani
  • 3. VISION STATEMENT Be, and be recognized as, the best consumer products and services company in the world. Usman Rehmani
  • 4. MISSION STATEMENT We will provide products and services of superior quality and value that improve the lives of the world's consumers. As a result, consumers will reward us with leadership sales, profit and value creation, allowing our people, our shareholders, and the communities in which we live and work to prosper. We will provide branded products and services of superior quality and value that improve the lives of the world's consumers, now and for generations to come.
  • 5. RECOMMENDED VISION & MISSION VISION P&Gs intent is to offer the highest quality consumer product goods at the least expensive price for the widest spectrum of customers in a convenient format. MISSION coca-cola will work with its suppliers and distributors to ensure that its products are recognized both in the market and on the supply side as contributory to a retail distributors bottom line.
  • 6. VALUES Integrity Passion for Winning Leadership Trust Ownership
  • 7. PRINCIPLES We Are Strategically Focused in Our Work. We Value Personal Mastery. We Seek to Be the Best. The Interests of the Company and the Individual Are Inseparable. We Are Externally Focused. Mutual Interdependency is a Way of Life
  • 8. OBJECTIVES To build existing core businesses into stronger global leaders. To grow leading brands in big countries, winning customers. To develop fast-growing, higher-margin with global leadership potential. To regain growth momentum rate and leadership in Western Europe. To drive growth in key developing markets.
  • 9. COMPANY OVERVIEW & HISTORY Procter and Gamble is actually the name of two persons William Procter and James Gamble immigrants from England & Ireland respectively. Procters business was candle making and Gambles business was soap making.
  • 16. History Of coca-cola In Pakistan coca-cola Pakistan, headquartered in Karachi, commenced operations in Pakistan in 1991. In 1994 coca-cola acquired a soap-manufacturing facility Hub, Baluchistan. In 2004, a PUR facility was set up to produce P&Gs water purifying technology. Today, the Hub plant is equipped with state-of-the- art manufacturing technologies and quality assurance processes and systems, reflecting the company's values of safe, hygienic and ethical manufacturing practices.
  • 18. DISTRIBUTION CHANNEL coca-cola itself has no distribution channel rather they were initially distributing its products through International Brands Limited (IBL). In the 1940s, Abudawood became the exclusive distributor of coca-cola(coca-cola) brands throughout Saudi Arabia. In 1956, Abudawood and coca-cola established a joint-venture factory in Saudi Arabia (called Modern Industries Inc.). In the same year Abudawood started distribution of coca-cola products in Pakistan.
  • 19. SOCIAL RESPONSIBILITY Pampers Hospital Education Program Safeguard School Education Program
  • 22. Balance Sheet 2010 During the previous 3 years P&Gs assets have diminished by 10%. While long term debt has been constant short term debt has decreased by 48%. coca-cola has an extremely low ratio of tangible assets to intangible assets.
  • 23. June 2008 June 2009 June 2010 Total Assets 143992.00 134833.00 128172.00 Total Liabilities 74498.00 71734.00 67057.00 Total Equity 69494.00 63099.00 61115.00 Short Term Debt 13084.00 16320.00 8472.00 Long Term Debt 23581.00 20652.00 21360.00 Current Assets 24515.00 21905.00 18782.00 Intangible Assets 98837.00 93466.00 90146.00
  • 26. Continued.. faces very strong buyers power because retailers like Wal-Mart are able to negotiate for pricing with companies. limited supplier power because of the costs they incur when switching suppliers. low threat of new entrants because a huge capital amount is required. high threat of substitutes. high level of rivalry exists among existing firms.
  • 27. PEST ANALYSIS Usman Rehmani
  • 28. SWOT ANALYSIS (Opportunities and Threats) Usman Rehmani
  • 29. Opportunities Developing markets. Niche markets. New products. To invest in the segment for children. To introduce food and beverages for Pakistani market. Emerging consumer market (China& India). Manufacturing facilities in China. Selling through internet.
  • 30. Threats Uncertainty in pharmaceuticals business. Increase in prices of raw materials. Unilever is the biggest threat. Price competition around the world. Political disruption.
  • 31. COMPETITORS Usman Rehmani
  • 32. CPM coca-cola Kimberly- Johnson & Clark Johnson Critical Success Weight Rating Score Rating Score Rating Score Factors Advertising 0.20 4 0.80 1 0.20 3 0.60 Product Quality 0.10 4 0.40 4 0.40 3 0.30 Price Competitiveness 0.10 3 0.30 3 0.30 4 0.40 Management 0.10 3 0.30 4 0.40 3 0.30 Financial Position 0.15 3 0.45 4 0.60 3 0.45 Customer Loyalty 0.10 4 0.40 4 0.40 2 0.20 Global Expansion 0.20 2 0.40 4 0.80 2 0.40 Market Share 0.05 4 0.20 1 0.05 3 0.15 Total 1.00 3.25 3.15 2.80
  • 33. EFE Matrix Key External Factors Weight Rating Weighted Score Opportunities 1. Global markets are a significant growth 0.15 1 0.15 market 1. Increased demand due to new health and 0.05 4 0.20 beauty needs. 1. Internet advertising growth. 0.05 1 0.05 1. coca-cola is a category killer. 0.14 4 0.60 1. Increasingly health conscious public. 0.10 3 0.30 Threats 1. Economic downturn. 0.10 3 0.30 1. Increased competition from rivals. 0.05 3 0.15 1. Lack of product acceptance. 0.05 2 0.10 1. Poor media exposure for new products. 0.10 4 0.40 1. High core commodity prices affecting 0.20 1 0.20 product cost. Total 1.00 2.45
  • 35. SWOT ANALYSIS (Strengths and Weaknesses)
  • 36. Strengths large scale operations. very strong brand name and leading market position. coca-cola has a huge customer base. innovations to sustain its customer base. Diversified product portfolio. Strong focus on research & development. Strong global presence (160countries).
  • 37. Core Strengths Coca-cola focuses on five core strengths required to win in the consumer products industry.
  • 38. Weaknesses less innovative than its major competitor Unilever. products have failed in certain geographic areas. For example, Oil of Olay failed in Pakistan, Camay failed here as well. Dependent on Wal-Mart stores for majority of its revenue. Production facilities in 43 countries while operations in more than 160 countries.
  • 39. IFE Matrix Key Internal Factors Weight Rating Weighted Score Internal Strengths 1. Largest home consumer product goods manufacturer. 0.05 4 0.20 1. Innovative products format. 0.10 4 0.40 1. Increasing free cash flows. 0.05 3 0.15 1. Career development program. 0.15 4 0.60 1. Strong management team. 0.05 3 0.15 1. Strong logistics supply chains. 0.05 3 0.15 1. Discount pricing structures. 0.05 3 0.15 1. Long-range planning. 0.05 4 0.20 1. Reputation for quality. 0.05 3 0.15 1. Outperforming financial ratios 0.05 3 0.15 Internal Weaknesses 1. Many products are not personal care necessity. 0.04 2 0.08 1. Little unified brand focus. 0.05 2 0.10 1. Narrow margins. 0.05 2 0.10 1. High operating costs. 0.11 1 0.11 1. Uncertain joint marketing ventures. 0.10 1 0.10
  • 40. TOWS MATRIX S- Strengths W- Weaknesses Innovative products. Lack of direct marketing. Professional management. Lack of new media marketing Diverse product lineup. channels. Plans for acquisitions. Dependence on few major product categories. O- Opportunities S-O Strategies W-O Strategies Expanding marketing strategies. Develop new products to target niche More focused marketing Undifferentiated rival products. markets. strategy. Consumer demand. Utilize managerial competencies for Liaison with good distributors Niche markets. aggressive marketing strategy to attain to increase online sales. competitive advantage. Utilize niche markets rather to Continue diversification to fulfill depend upon few product consumers demand. categories. T- Threats S-T Strategies W-T Strategies Price competition. Utilize buying volume to put pressure on Develop good partnership with Regulations. competitors. internet consumer product goods Rival competitors. Continue product diversification to distributors to increase sales. offset increased chances of competitor entry.
  • 41. SPACE Matrix Financial Strength Ratings The companys original capital ratio is 7.23 percent which is 1.23 percentage points 1.0 over the generally required ratio of 6. 1.0 3.0 P&Gs return on assets is negative 8.7 compared to industry average of positive 8.0. 4.0 The companys net income is continually expanding. 9.0 The companys revenue increased 14 percent. Industry Strength Ratings Increasing market share provides geographic and product freedom. 4.0 2.0 More competition in global markets. 4.0 Kimberly-Clark provides a strong industry benchmark. 10.0 Environmental Stability Ratings High inflation rate in developing countries and political instability are big -4.0 hurdles for international business growth. -4.0 Merger and acquisitions are also difficult due to credit markets. -5.0 coca-cola get more of its revenue fr0m US market. -13.0 Competitive Advantage Ratings coca-cola focused on home consumer product goods for health and beauty. -2.0 coca-cola is a recognized category killer. -5.0 In addition of Kimberly-Clark, Johnson & Johnson is a trouble creating -2.0 competitor. -9.0
  • 42. Conclusion: ES average is -13.0 歎 3= -4.33 IS average is +10.0 歎 3= +3.33 CA average is -9.0 歎 3= -3.00 FS average is +9.0 歎 4= +2.25 Directional vector coordinates: x-axis: -3.00 + (13.33) = 0.33 y-axis: -4.33 + (12.25) = -2.08 Outcome: coca-colashould pursue Competitive Strategies.
  • 43. QSPM Chart QUANTITATIVE STRATEGIC PLANNING MATRIX Strategic Alternatives Key Factors Weight Joint Ventures in Joint Ventures in Europe Asia Opportunities AS TAS AS TAS 1. Europe is a potential growth market. 0.10 4 0.40 2 0.20 1. The US market continues to develop 0.15 4 0.60 3 0.45 new product categories. 1. Free market economies increasing in 0.10 2 0.20 4 0.40 Asia. 1. Demand for health & beauty products 0.05 - - - - is increasing. Threats 1. Competitor threats such as Kimberly-Clark. 0.10 3 0.30 4 0.40 1. Economic contraction in its main US market. 0.05 - - - - 1. Lack of defining product to attract continued 0.10 4 0.40 1 0.10 foot-traffic in the companys retail distributors. 1. Environmental issues with some home 0.05 - - - - consumer product goods products. 1. Low value of US dollar abroad. 0.15 4 0.60 2 0.30
  • 44. Strengths 1. Profits rose 0.10 4 0.40 2 0.20 1. Strong management team 0.10 - - - - 1. New employee development programs. 0.10 4 0.40 2 0.20 1. Diversified product portfolio. 0.05 4 0.20 3 0.15 1. Performance driven management. 0.05 - - - - 1. Capacity utilization increased from 60% 0.15 3 0.45 4 0.60 to 80% for all manufacturing facilities. Weaknesses 1. Johnson & Johnsons troubles could be 0.05 - - - - contagious. 1. Restructuring costs could be significant if 0.05 - - - - the market requires. 1. International expansion suffers. 0.15 2 0.30 4 0.60 1. The company is slow in leveraging its 0.15 4 0.60 3 0.45 global operations due to current economic conditions. 1. Pre-tax profit margins are narrow. 0.05 - - - - Sum of Total Attractiveness Score 1.0 5.30 4.65
  • 47. CONCLUSION coca-colais the worlds largest producer of household and personal products by revenue with net sales of $83503 million with its products reaching 4 billion people worldwide. Being in more competitive position coca-cola must continue to scan the environment for possible threats, whether through acquisition or Greenfield investments. coca-cola must continue to innovate because economies of scales allow coca-cola to spend much more than rivals on research and development.
  • 48. coca-cola will also have to control its pricing and reduce outside vendors. coca-cola will want to continue its strong support and funding of its world class research and development in order to continue to provide innovative products to touch the lives of customers worldwide.
  • 49. RECOMMENDATIONS coca-cola may have a series of strategies which can be more attractive to the company. Such series of alternatives may not result in an alternative internal rate of return (IRR) relative to the cost of the strategies. Hence, in such time of economic pressure it is recommended to do nothing and continue business as usual and even avoid organic expansion also.
  • 50. Another recommendation is to expand organically. coca-cola has access to a greater number of developed and developing markets. The company has also product co-branding opportunities because of its size and volume of sales. Thus, coca-cola can opt to expand through organic growth by establishing another brand category that will target specifically the UK and European markets to increase companys continued growth.
  • 51. Third suggestion is about acquisition that the company can acquire its primary competitor. Through such acquisition the established company can gain immediate sales capacity and market position without investing in substantial marketing effort. New products must be introduced which must be appropriately positioned relative to its competitors but this would involve thousands of dollars in terms of marketing. Usman Rehmani Conts no= 03007477593