Coca Cola Internal Analysis Essay

Executive Summary coca- dope ac partnership is leading manufacturer, distributor, and marketer of non alcoholic drinks in the United States of America and only over the world. It is a multinational Giant comp either that has market comportment in al well-nigh all countries of the world. The keep company has excessively diversified from its sign soft drinks to manufacture fruit juices and other non-soda drinks. Its objective has been to maintain its global drawship in supply of beverages and other non-soda drinks through maintaining high graphic symbol business methods that ensure the name and products remain a household flaw. introduction mental imagery based view approach has been a method most tweakments leave used to formulate their companies strategies (Barney, 1991).This is because Resource Based View regards a companys internal surroundings rather than the external environment. The avail of using internal environment as a source of schema formulation is that the company is open to consider factors which are within its controls which distinguish its strengths and weaknesses (Connely, 2010). This paper presents an internal analysis of coca pot Company with specialised regard to the Economic care for of the company, its resources and capabilities that make it distinct from other companies well-favoured it competition through provision of similar soft drinks. Economic value Added In 2010, The coca locoweed Company posted an increase in revenues as compared to the previous year. The profits came to $6.48 billion. The cost of capital for Coca cola Company is estimated to be 8.7% and the capital totaled $72.929 billion. Ensuing is the EVA calculation for the company. net profit Operating Profit After Tax (NOPAT) (capital * cost of capital) = 4.08 (72.929*.087) billion. This comes to $0.2 billion. The companys EVA comes to $0.2 billion.Coca cola Company Resources Being a global leader in production of beverages and soft drinks, Coc a low-down Company has assorted resources that play a major role in every production stage to ensure that the production and slant of its various product and subsequent client services are of high standards. The company has both manifest and intangible resources that help it in the various production stages and subsequent delivery of the products to the targeted consumers. Tangible resources The tangible resources include physical, human and Financial Resources. Coca Cola Company has many physical resources it possesses and manages. These physical resources include buildings and equipment. Coca cola has managed to construct buildings in almost all regions. The presence of ego own production plant means that the cost of production is maintained low. This enables the company to offer high quality products at low prices. The presence of self owned equipment ensures that the company does not lease or rent any equipment and thus managing to cost of production low.The companys strong pecuniary position ensures that it has stable financial resources to carry out the production functioning without major problems in terms of cash shortages. The positive cash flows normally ensure that a company has cash available for any occupation that needs cash (Lawton, 2006). This position enables it to avoid unnecessary debt financing. The company in like manner maintains a motivated work force. This has been a major force in driving its products into shelves and subsequently into the shopping lists of consumers. The company has highly invested in employee facts of life and breeding as this is an important factor in ensuring that the workers involved in the production deliver a high quality work, and those that are view-to doe with with marketing ensure that the products are bought by consumers.This has come through identification that the coca cola products do not fall under the essential class but rather fall under impulse products. intangible asset Resources The Companys intangible resources include the technical resources, intellectual and grace. Coca cola company has for a long while enjoyed technical resources that fuck off helped the company has technical expertise in production of some products that remove been of great use fostering the companys goals. The company has been able to come up with numerous flavors in their soft drinks such as such as , Orange flavor, Pineapple, black currant, lemon, Ginger and so on. These productions are a clear indication that the company has great expertise companionship that it uses as an advantage of other companies offering similar products, the company similarly enjoys intellectual property of the brands that they fork out. This is because once a company does research and development and comes up with a product, it has the option of patenting that particular product thus maintaining the grievous bodily harm rights to supply that particular product (Edvinsson & Malone, 1997).The company has alike enjoyed a goodwill and customer loyalty over a long period of time this has been an internal strength that it has used to its advantage since the coca Cola brand and its products have enjoyed an undying loyalty from consumers. The brand visibility of the company has also ensured that many people access the products really in time. Distinctive capabilities Coca Cola Company enjoys distinctive capabilities that enable it to carry out productions in a manner that is superior to other competitors. Distinctive capabilities that Coca Cola Company has are Innovation, reputation, and architecture. The company has been able to introduce new products into the market.This has been a major competitive edge over the competitors since they lack the innovation mental ability to come up varied new products. Its production methods and the ingredients mixture have remained a strong contributor to the unique and high quality products that have enabled the products enjoy a superior status over the competitors. The company has also managed to command strong reputation in relation to its competitors. This reputation has realise it goodwill and ensured that it remains a favorite brand among the consumers. The companys architecture plans ensure that the company daily running is congruent with the objectives. The company has instituted a structure system where it outsources product distribution from individual distributors and this has enabled it to manage its operations without dealing with many market dynamics.ConclusionAn analysis of the Coca Cola Companys internal analysis through considering the Resource based View provides insightful knowledge on the companys management practices with regard to schema formulation using the internal environment approach. The company should therefore keenly look into the areas of internal environment as this is where much strategy formulation ought to originate. The company will continue to be a global leader in supply of non-alcoholic b everages because it has successfully busy the use of its internal analysis to formulate successful strategy. It will until now have to improve on its sluggish performance in Yankee America which is its major market. The internal resources and capabilities of Coca-cola Company will continue to provide a secure foundation for formulation of long term strategy and ensure it maintains a strong reputation.RerencesBarney, J. B. (1991). Firm Resources and Sustained Competitive Advantage. daybook of perplexity , 99-120. Comeford, R., & Callaghan, d. (2011). environmental, industry, and internal analysis. London Prentice Hall. Connely, D. (2010). Strategy for Internal Environment. post point presentation. Edvinsson, L., & Malone, S. (1997). Intellectual CapitalRealizing Your Companys True cheer by Finding its Hidden Brainpower. New York Harper Business. Henry, A. (2007). The Internal Environment of an Organization. London Oxford University Press. Lawton, K. (2006). Swot analysis A ma nagement Strategic advantage Tool. New York Cambridge. Szulanski, G. (1996). Exploring Internal StickinessImpediments to the Transfer of Best Practices within the Firm. Strategic Management Journal , 27-44. Zahorsky, D. 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