Coca Cola Co. Part III
Coca Cola Co. Part III
Coca Cola history starts in Atlanta, Georgia with only one product inside a little pharmacy with sales of less than a dozen a day. 125 years later Coca Cola is all around the globe with over a billion sales a day in more than 200 countries. Coca Cola states that “because of the local nature of our business, we are in the unique position to contribute to the economic vitality of even the most remote communities around the world (Coca Cola, 2012).
Coca Cola’s head quarter are in Atlanta and as part of many Fortune 500 companies that share this major city, Coca Cola enjoys ...view middle of the document...
Sometimes these risks come with changes and adaptations that Coca Cola must accept to better the company. Some of the risks Coca Cola may encounter is the obesity trend and health issues, competition, financial performance, changes in accounting standards, and many more.
Getting in depth with the different risks, obesity and health issues is a concern that is seizing the attention of consumers, health officials, and even government. Each of them is trying to conscientize the damages that sugary products like Coca Cola is affecting the community. Government wants to regulate by adding more taxes to the beverages and also there has been a rumor that consumers will be fined if they are purchasing more than 12 onces of soft drinks at conviniece stores. Now competition is another risk that companies face, Coca Cola’s biggest rival is Pepsi, that is why the company must stay at the top with innovative ideas and good marketing, keeping consumers interested. “Our ability to gain or maintain share of sales or gross margins in the global market or in various local markets may be limited as a result of actions by competitors” (Coca Cola, 2012). Financial risk is the one that worries any company the most when there is recession. Consumers usually have a tendency to make cuts to make ends meet, and sometimes products like the ones offered by Coca Cola are additional in the customer’s list. Now in the accounting aspect “new standards could have a significant effecton our reported results for the affected periods” (Coca Cola, 2012).
Coca Cola’s tactical plan is to come up with ways to expand the company. More marketing planning is needed to gets customer’s attention to the product, the company as well needs to review if there is a market that can be developed into a new product. Coca Cola also has to keep up with the competition by finding out the size of the markets around the world.By performing a market sizing analysis, Coca Cola must execute a study to find out how many product consumers have in a specific area. Collecting global data, through survey, the company can authenticate the amount of residents in the area and throughout that survey Coca Cola can also can verified the fraction of the population that use the company’s products. If Coca Cola completes the surveys all through a specific region, will help the company organize themselves and follow the right path to target the market that is lacking of their services and products.
After surveying the market, Coca Cola should strategically target the areas that are not using the product, find out if it is because the region do not recognize the product, or is it because competition is controlling that sector. Using that same study the company should be able to accommodate the needs of the market and implement a tactical plan to guarantee that new consumers purchase the product. Studies mostly shows what a company lacks to impress the customers. Paying...