Strategic Planning: A Dynamic Duty Essay

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Strategic Planning: A Dynamic Duty

Coca-Cola and Pepsi Cola are household names. Together they control soft drink market. Their success can be attributed to their overall strategy to produce and promote their products. They both decided to build global brands to bottlers throughout the world. And a portion of the proceeds goes toward advertising to build and maintain brand awareness. The bottlers are responsible for producing and distributing to vending machines, supermarkets, restaurants, and other retail outlets. However, the advertising is left up to Coca-Cola and Pepsi. In addition, the bottlers must sign an agreement that prohibits them from distributing competing cola brands. Their strategy is simple, yet dynamic. It forces …show more content…

These objectives are their strategy to increase sales to improve profit. Their goals are ambitious and require that managers continually improve performance capabilities. Once the mission and goals are agreed upon and formally stated in a corporate plan, the next step is to formulate a strategy.

Strategy formulation involves managers analyzing an organization’s current situation and then developing strategies to accomplish its mission and achieve its goals. It begins with analyzing the factors within the organization and outside, in the environment, that may affect its ability to meet its goals now and in the future. SWOT analysis is a technique used by managers to analyze these factors. Its planning exercise identifies organizational strengths, weaknesses, opportunities, and threats. Based on SWOT analysis managers are capable of implementing the best strategies to achieve its organization’s mission and goals. It is assumed Coca-Cola has a well-developed strategy, brand name reputation, good marketing skills and differentiation advantage as strengths. One of their opportunities was expanding into foreign markets. One of their weaknesses would be their recent conflict and politics. And a potential threat would be an increase in industry rivalry (Pepsi). With the SWOT analysis completed, and strengths, weaknesses, opportunities, and threats identified managers can determine strategies to achieve the organization’s mission and goals. These

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