Independently develop a SWOT Matrix for The Coca Cola Company (Assurance of Learning Exercise 6A, step 1) using the information presented in the Cohesion Case in Chapter 1. You will need further information to develop this matrix. Be sure to develop at least three strategies for each section (not just two as the text states). In addition, write a thorough analysis of the SWOT. At a minimum, an analysis should always include what the matrix means, why it is important to the company, and what your factors mean to the company. Utilize the resources discussed in week one’s exercise in addition to finding new resources. Post your work in the Exercise forum, compare your results to that of other students and discuss the differences. Utilize this information to refine and update your SWOT Matrix.
Independently develop a SPACE Matrix for The Coca Cola Company (Assurance of Learning Exercise 6B) using the information presented in the Cohesion Case in Chapter 1. You will need further information to develop this matrix. In addition, write a thorough analysis of the SPACE. At a minimum, an analysis should always include what the matrix means, why it is important to the company, and what your factors and numbers mean to the company. Utilize the resources discussed in week one’s exercise in addition to finding new resources. Post your work in the Exercise forum, compare your results to that of other students and discuss the differences. Utilize this information to refine and update your SPACE Matrix. NOTE: Use the example factors on page 175 for the Financial Position (FP), Industry Position (IP), Stability Position (SP), and Competitive Position (CP). With this information, develop a graph similar to the one on page 177. Do not try to post the graph part of the SPACE on the discussion board

Coca-Cola Company SWOT & SPACE Analysis

Introduction

The development and formulation of strategies in organizations assess their functionality and effectiveness to determine whether they are doing the right thing. However, the constant and random changes in market trends, technology, and events such as globalization, among other phenomena, necessitates these organizations to conduct regular appraisals to avoid complacency or obsolescence. It is due to these that the modern strategy formulation tools, namely, SWOT and SPACE matrices become significant to appraise, enhance strategy quality, and improves strategic decision-making in an organization (David, 2011). The paper assesses the Coca-Cola Company’s strategic quality through a SWOT and SPACE matrices and further analyzes the outputs showing the importance of these tools to the company.

SWOT Analysis 

SWOT Analysis matrix is used among organizations to determine their corporate Strengths, Weaknesses, Opportunities, and Threats. Through the assessment of the corporate strategies, managers can easily develop the SO (strength-opportunities), WO (weaknesses-opportunities), ST (strengths-threats), and WT (weaknesses-threats) strategies. These strategies assess the company’s internal and external business operational environments outlining the capabilities and core competencies that can be used to address the limitations, weaknesses, and threats, as well as, exploiting the potential opportunities (David, 2011). The strategy formulation tool is effective and essential in the operations and effective strategic management in Coca Cola Company. The SWOT analysis tool is vital as it reveals how Coca Cola Company controls its brand to maximize its competitive advantage and meet the ever-changing customer needs and wants.

From the analysis, it is notable that Coca-Cola company being a global company and having a vast global reach, presence, and spatial influence, controls one of the largest market shares in the beverage industry. It serves over 200 countries with over 500 products, which serves as the primary source of its internal strength and competency. This enables the company to control a competitive customer base, market power, large economies of scales, the products, and corporate valuation and brand portfolio (Jurevicius, 2020). However, Coca Cola Company is highly limited and threatened by health issues, especially now that the consumers are shifting into healthier lifestyles. In addition, the company is faced with law controversies, technological advancement, and greener initiative issues.

Through this analysis, it is clear that Coca Cola Company invests highly in its SO and WO strategies, as it uses its internal strengths of the vast audience reach and customer loyalty, among others, to exploit the opportunities and improve on its weaknesses. Coca Cola Company has devised effective strategies such as substantial acquisitions to address its deficiencies and enhance its internal strengths that have resulted in increased market share and competitive advantage (David, 2011). The company has sufficient core competencies and strengths to address its limitations and threats in the external environments of its operations. The company should invest mostly in diversified products that address the consumer’s need for healthier lifestyles that remain untapped. This is a significant opportunity and threat if exploited or left untapped to the company. Whichever decision made would affect its financial and brand valuation as it will either increase or decrease its customer base. However, the best strategic decision lies in exploiting the opportunity and addressing the threat through the ST strategies.

SPACE Analysis

The SPACE analysis involves corporate Strategic Position and Action Evaluation that determines the nature of the strategies based on the most appropriate approach. A company’s strategic strategies can be conservative, defensive, aggressive, or competitive depending on its financial, stability, competitive, and industrial positions. The SPACE matrix enables companies such as Coca-Cola Company to evaluate its internal strategic position, which involves the financial and competitive positions. They include factors such as ROI, cash flows, liquidity, product quality, customer loyalty, and market shares, among others (David, 2011). On the other hand, the company can evaluate its external strategic position, including its stability and industrial positions. Factors such as growth potentials, rates of inflation, competitive pressures, resource utilization, and financial stability are used in the evaluation.

From the SPACE analysis conducted in Coca-Cola Company, the company utilizes aggressive strategies, including market development and product development strategies. This conclusion is acquired through the plotted scores on the x-axis (2.5) and y-axis (-2) on the Cartesian plane. These scores lie within the aggressive strategies, showing that Coca Cola Company is in an excellent position to utilize its internal strengths such as market and product development. To address its weaknesses, exploit and take advantage of the opportunities identified in the SWOT analysis while avoiding the threats present in its external environment of operation (David, 2011). These strategies among market penetration, forward and horizontal integrations, and diversification are the most appropriate strategies for Coca Cola Company. This information from the SPACE matrix enables the company to makes appropriate and strategic decisions on how to maximize its internal strengths while addressing its weaknesses and threats.

In conclusion, the analysis and results from both matrices, that is, SWOT and SPACE tools are consistent and align they agree that Coca-Cola company is in an excellent position to use its internal strength and core competencies to exploit the opportunities present while minimizing the weaknesses and threats posed to its products and operations. Most importantly, they recommend aggressive strategies such as market and product development, market penetration, forward and horizontal integrations, and diversification strategies to capitalize on its strengths and minimize its weaknesses and threats.

References

David, F. R. (2011). Chapter 6: trategic Analysis and Choice. In Strategic Management: CONCEPTS AND CASES 13th Edition (pp. pp: 174-204). New York: Pearson Education.

Jurevicius, O. (2020, January 10). SWOT analysis of Coca Cola (6 Key Strengths in 2020). Retrieved from https://strategicmanagementinsight.com/swot-analyses/coca-cola-swot-analysis.html

SWOT ANALYSIS

SPACE ANALYSIS