The Coca-Cola company

With over 500 beverage brands distributed globally, the Coca-Cola Company is the biggest and most successful beverage company in the world. The business is renowned for its capacity to satisfy all of its clients worldwide by creating drinks with various sugar contents. In reality, the corporation has recently increased its production of drinks with little to no sugar. One of the company's most well-known brands is the commonly available Coca-Cola beverage in bottles. The Coca-Cola firm is still expanding and awe-inspiring in business.

The Coca-Cola Company uses inclusive or regional commercials as part of a healthy marketing strategy to market its drink brands. Still, the company embraces a high level of cultural proficiency which has been influential in promoting Coca-Cola brands across the globe.

The company embraces and boasts of a merit-based hiring strategy where new hires are evaluated regarding creativity, innovativeness and their competitive ability. Generally, the company has a competitive, creative and innovative working staff. The company has diversified incentive programs for rewarding and motivating employees for their hard work.

The company’s extensive licensing system gives it the freedom and privileges to transact in business any place across the globe. The company does not spend enormous amounts of money like its counterparts thanks to the franchising approach which is a cheaper alternative when it comes to production.

Another strength is the presence of a dedicated team of External Technology Assessment (ETA) who are on the frontier of ensuring that the company is updated regarding productive technologies. Still, on this, the company has best technologies at their disposal facilitating the efficiency of operations within the company.

Equally, the company has a well-structured organization framework that has been influential and also important where management is concerned. The company operates in over 200 countries across the globe on a local scale which makes it reach a large number of customers. This is also the reason to why their drinks have been widely accepted and are always received well in the market environment.

Weaknesses

Low product diversification is one of the company’s weaknesses as it jeopardizes the marketing of Coca-Cola brands. In short, the company’s marketing strategies are inefficient.

The company is highly geared which means the company has a high financing cost paid out as interest which diminishes the profits.

Opportunities

The company has substantial financial muscles which it can use to diversify its product lines into the health products sector.

With an excellent reputation, the company has and a popular brand name which is a unique opportunity for Coca-Cola to market any new product that they launch.

Threats

The rising trends of health-conscious consumers who are avoiding sodas are a threat to the company’s future.

Their products are not so much differentiated concerning competitors which makes the products easily substitutable.

Question 3. Application of the Grand Strategy Selection Matrix

I believe Coca-Cola lies in cell 1; Supports an aggressive strategy.

Coca-cola has been doing well in its business ventures since it is ranked as the world's top distributor of beverages. Coca-Cola company has been able to maintain its market performance and competitive advantage because it has a strong and healthy internal setting which is inclusive of a creative, innovative and competent working staff. Typically, following on the company's progress regarding market performance and productivity, the company embraces five of all the aggressive strategies (Pearce, 1982). The workforce and management are focused they have a high sense of concentration to ensure the effectiveness of operations. The company is partnering with other companies and venturing into other product development ventures, bottling. Innovations and market development have also been widely accepted by the company as they seek to accommodate all of its global customers.

Question 4. Application of the Model of Grand Strategy Clusters

While referring to the Grand Strategy Selection Matrix, Coca-Cola should pursue the following grand strategies; Concentrated growth, Market Development, Product development and Innovation. Some of the assumptions I made while evaluating this Grand Strategy Selection Matrix are that Coca-Cola already operates on an established and stable market environment, the company's primary product which is the Coca-Cola drink has monopolized the beverage market, and the company is already familiar with the very many trends in technology. The assumptions as mentioned above suggest that the company already has a well set internal framework with various noticeable internal strengths which are a background or basis for the company to maximize its strengths.

Question 5.

On evaluating the Model of the Grand Strategy Clusters, I identify that Coca-Cola should fall in quadrant 1. Assumption during this evaluation includes; Coca-Cola needs to penetrate the market deeper and more profound as its primary product has been widely accepted across the globe, the company should seek to promote efficiency and cost-saving measures, and the company should focus product and market diversification. Another assumption was the need for Coca-Cola to diversify its businesses to reach more consumers. Coca-Cola stands in a strong competition position.

Question 6. Application of the BCG Matrix

Coca-Cola is a star. Assumptions are that Coca-Cola has a large market share of the beverage business. The company is still expanding and diversifying its ventures which means that Coca-Cola is still investing in growth.

Question 7. Comparison of Results

The results are not very much different as they depict the positive side of Coca-Cola company. The Grand Strategy Selection Matrix suggest an average performance in favor of Coca-Cola; a company trying to build its business background by maximizing on its strengths. Model of Grand Strategy Clusters calls for the company to pursues its goals since resources and the framework for the speculate growth plan is the place. The BCG, on the other hand, recognizes Coca-Cola as a firm whose earnings are stable and are still growing. The company has a neutral cash flow and embraces the strategy of investing for growth.

Conclusion

Coca-Cola should follow the grand strategy of Model of the Grand Strategy Clusters. This is because of the strategy advocates for increased diversification and market penetration which would perfectly suite Coca-Cola as it is worldwide and since the company also opts to diversify its business ventures. This strategy acknowledges efficiency and cost-saving measures which are some of the measures that Coca-Cola has been on the line to embrace. Equally, the strategy recommends for increased diversification to create a larger customer base. This will indeed be helpful to Coca-Cola as it tries to penetrate the deeper local regions to reach out to potential customers.

References

Pearce, J.A. (1982). Selecting among alternative grand strategies. California Management Review, 30(2), 29.

Thompson, A.A., & Strickland, A.J. (1987). Strategic management: Concepts and cases (4th ed.). Plano, TX: Business Publications.