Transcript Strategic Management Plan

Shane Theriault
Pierre-Olivier Lachance
Garik Theriault
Sierra Daigle
Overview
Company Overview
• Company Background
• Existing Mission and Vision
• Proposed Mission and Vision
• Current Strategies
External Assessment
• Industry Analysis
• Opportunities and Threats
• EFE Matrix
• CPM Matrix
Internal Assessment
• Organizational Structure
• Segment Analysis
• Financial Conditions
• Strengths and Weaknesses
• IFE Matrix
Strategy Formulation
•
•
•
•
•
•
•
SWOT Matrix
Space Matrix
Grand Strategy Matrix
BCG & IE Matrix
Matrix Analysis
Possible Strategies
QSPM Matrix
Strategic Implementation
•
•
•
•
3 Year Objectives
Strategies & Cost
EPS/EBIT
Projected Financials
Strategic Evaluation
• Balanced Score Card
Company Update
2
Company Background: Origins
Coca Cola Animated History
3
Company Background: History
• 1928 – Coca-Cola traveled with the US Olympics team to Amsterdam,
and began global expansion
• 1935 – Coca-Cola was certified Kosher by Rabbi Tobias Geffen
• 1941 – Fanta is introduced in World War II during a trade embargo
against Germany on cola syrup
• 1944 – The one billionth gallon of Coca-Cola Syrup was made
• 1963 – Coca-Cola’s first attempt to make a diet drink using saccharin
• 1982 - Coca-Cola purchased Columbia Pictures, sold to Sony in 1989
• 1985 – New Coke was presented to test tasters who enjoyed it better
then Coke and Pepsi; however, top management kept the old formula
“Coca-Cola Classic” (which uses a high fructose corn syrup as
sweeter instead of the proposed sugar can) in order to avoid possible
backlash from customers. It is now only available in select countries
• 1990s – Introduction of healthier beverages including Minute Maid
Juices to Go, Powerade sports beverage, flavored tea Nestea (in a
joint venture with Nestle), Fruitopia fruit drink and Dasani water
• 2007 – World of Coca-Cola was built
4
Company Background: Owned Brands
5
Existing Vision Statement
People: Be a great place to work where people are inspired
to be the best they can be.
Portfolio: Bring to the world a portfolio of quality beverage
brands that anticipate and satisfy people's desires and
needs.
Partners: Nurture a winning network of customers and
suppliers, together we create mutual, enduring value.
Planet: Be a responsible citizen that makes a difference by
helping build and support sustainable communities.
Profit: Maximize long-term return to shareowners while
being mindful of our overall responsibilities.
Productivity: Be a highly effective, lean and fast-moving
organization.
6
Existing Mission Statement
To refresh the world...
To inspire moments of optimism and happiness...
To create value and make a difference.
7
Proposed Vision Statement
Coca-Cola aspires to refresh the world, to inspire
moments of optimism and happiness, and to
create value and make a difference.
8
Proposed Mission Statement
People: Be a great place to work where people are inspired to
be the best they can be(9)(6).
Portfolio: Bring to the world(3) a portfolio of quality beverage
brands that anticipate and satisfy people's desires and
needs(2).
Partners: Nurture a winning, network of customers(1) and
suppliers, together we create mutual, enduring value.
Planet: Be a responsible citizen that makes a difference by
helping build and support sustainable communities(5).
Profit: Maximize long-term return to shareowners(8) while
being mindful of our overall responsibilities(7).
Productivity: Be a highly effective, lean and fast-moving
1. Customers
organization(4).
2. Products or services
3.
4.
5.
6.
7.
8.
9.
Markets
Technology
Concern for survival, growth, and profitability
Philosophy
Self-concept
9
Concern for public image
Concern for employees
Current Strategies
• Vision 2020
• Profit, People, Portfolio, Partners, Planet, Productivity
• Double the numbers of servings of its products -- water,
soft-drinks, juices and the like -- consumed per day to
more than 3 billion.
• 12 month multicultural plans
• 5by20™ program
• Expedition 206
• 2020 water use reduction and replenishment
10
Million Dollar Question
“Should Coke strive to enter the snack or food
business in order to remain competitive with
Pepsi Co”?
11
External Assessment
12
Industry Analysis
Sales of all
beverage
categories in 2010
2%11%
32%
13%
13%
14%
15%
fruit drink
100% juice
Water
Diet Soda
Energy drinks
Regular Soda
Flavored Water
13
Industry Analysis: Competitors
57.84
35.14
24.09
39.47
28.86
43.25
43.23
31.94
30.99
35.12
4.74
5.75
5.71
5.53
5.64
2006
2007
2008
2009
2010
Coca-Cola
PepsiCO
Dr. Pepper Snapple Group
14
Industry Analysis: Ratios
Coca-Cola
Liquidity Ratios
Current
Quick
Leverage Ratios
Debt-to-Total Assets Ratio
Debt-to-equity Ratio
Long-term debt to equity Ratio
Times-Interest-earned Ratio
Activity Ratios
Inventory Turns
Fixed Assets Turnover
Total Assets Turnover
Profitability Ratios
Gross Profit margins %
Operating Profit Margin %
Net Profit Margin %
Return on Total Assets
Return on Equity
EPS
P/E ratio
Growth Ratios (5 years)
Sales
Net Income
EPS
Pepsi
Dr.Pepper
1.17
1.02
1.11
0.89
0.98
0.8
0.57
1.35
0.68
2.2
0.72
2.6
0.45
0.94
0.69
20.43
9.23
-
13.25
2.38
0.48
17.15
3.03
0.85
23.1
4.83
0.64
64%
43%
34%
16%
38%
5.12
6.03
54%
14%
11%
12%
33%
3.97
15.35
60%
19%
9%
6%
21%
2.19
16.o5
8.74%
19.37%
19.92%
12.18%
9.16%
10.35
11.95%
2.05
-
15
Opportunities
1. Global beverage industry is expected to grow from
a valued $1.4 trillion in 2008, to $1.6 trillion by
2013
2. Teenagers have $158 billion dollars of disposable
income annually
3. Economic growth of new emerging markets
4. Potential to partner with fast food chains
5. Projected demand increase in bottled water and
energy drink market by 5.8% and 14.3%
respectively
6. A growing global awareness of health and
wellness
16
Threats
1. Pepsi has the leading beverage in the water and
sports drink categories with Aquafina and
Gatorade
2. More than 10% of the world's population is obese
(WHO)
3. Unpredictable changes in currency rates
4. Water quality and scarcity has the potential to
disrupt production capacity
5. Increasing Government regulation on food and
drinks
6. Evolving consumer preferences and a large
number of substitute products
7. Threat of hyperinflationary economies
17
EFE Matrix
1.
2.
3.
4.
5.
6.
External Factor Evaluation Matrix (EFE)
Opportunities
Global beverage industry is expected to grow from a valued $1.4 trillion in 2008, to
$1.6 trillion by 2013
Teenagers have $158 billion dollars of disposable income annually
Economic growth of new emerging markets
Potential to partner with fast food chains
Projected demand increase in bottled water and energy drink market by 5.8% and
14.3% respectively
A growing global awareness of health and wellness
Threats
1. Pepsi has the leading beverage in the water and sports drink categories with Aquafina
and Gatorade
2. More than 10% of the world's population is obese (WHO)
3. Unpredictable changes in currency rates
4. Water quality and scarcity has the potential to disrupt production capacity
5. Increasing Government regulation on food and drinks
6. Evolving consumer preferences and a large number of substitute products
7. Threat of hyperinflationary economies
TOTALS
Weight Rating Weighted Score
0.08
4
0.32
0.06
0.05
0.09
0.10
3
4
1
3
0.18
0.20
0.09
0.30
0.12
3
0.36
Weight Rating Weighted Score
0.08
3
0.24
0.10
0.04
3
1
0.30
0.04
0.10
1
0.10
0.04
2
0.08
0.07
4
0.28
0.07
1.00
3
0.21
2.70
18
CPM Matrix
Competitive Profile Matrix (CPM)
Coca-Cola
Critical Success Factors
Pepsi Co.
Dr. Peper
Snapple
Group
Weight Rating Score Rating Score Rating Score
Advertising
Market Penetration
Brand Recognition
Global expansion
Number of Products
Financial Profit
Customer Loyalty
Market Share
Top Management
0.08
0.12
0.14
0.14
0.12
0.10
0.12
0.10
0.08
Totals
1.00
4
4
4
3
3
4
4
4
3
0.32
0.48
0.56
0.42
0.36
0.40
0.48
0.40
0.24
3.66
3
3
4
4
4
3
3
3
4
0.24
0.36
0.56
0.56
0.48
0.30
0.36
0.30
0.32
3.48
1
2
2
2
2
2
2
2
2
0.08
0.24
0.28
0.28
0.24
0.20
0.24
0.20
0.16
1.92
19
Internal Assessment
20
Organizational Structure
Mahtar Kent,
CEO, Chairman
of the Board of
Directors
Gary P.
Fayard,
EVP &
VPO
Joseph V.
Tripodi, EVP
& Chief
Marketing/
Commercial
Officer
Ahmet C.
Bozer,
President of
Eurasia &
Africa
Group
Jerry S.
Wilson, SVP,
Chief
Customer
and
commercial
Officer
J Alexander M
Douglas Jr.,
President of
the North
America
Group
Harry L.
Anderson,
SVP, Global
Business and
Technology
Services
Glenn G.
Jordan S.,
President of
Pacific Group
Alexander B.
Cummings Jr.
EVP, Chief
Administrative
Officer
Dominique
Reiniche,
President of
Europe
Group
Geoffrey
J. Kelly,
SVP,
General
Counsel
Steven A.
Cahillane,
President/ CEO
of Coca-Cola
Refreshments
Guy
Wollaert,
SVP and
Chief
Technical
Officer
José Octavio
Reyes,
President of
the Latin
America
Group
Clyde C
Tuggle, SVP,
Global
Affaires/
Communications
Ingrid
Saunders
Jones, SVP,
Global
Community
Connections
Ceree
Eberly, Chief
People
Officer
Irial Finan, EVP
& President,
Bottling
Investments/
Supply Chain
21
Segment Analysis
Revenues by segment in 2010 (%)
Coporate
0%
Bottleing Investments
23%
Eurasia & Africa
7%
Europe
13%
Latin America
11%
Pacific
14%
North America
32%
22
Regional Boundaries
23
Financial Conditions: Income Statement
24
Financial Conditions: Balance Sheet
25
Strengths
1. Over 500 different brands consisting of over 3000
beverage products
2. Located in over 200 different countries
3. Consumers consume over 1.7 billion servings of
Coca-Cola products worldwide each day
4. Net income increase of 5 billion from last year
5. 30% of Coca Cola's revenues come from United
States
6. Coca-Cola owns and markets four of the world's
top 5 nonalcoholic sparkling beverage brands.
7. 12% increase in case volume in Coke's Eurasia &
Asia segment, with China posting a 41% increase
26
Weaknesses
1. Coke is not competing in the snack and food
industries
2. 20% of the bottle supply are from companies Coca
Cola does not have controlling interest
3. There are not a huge amount of sub-industries in
the beverage market in which Coca-Cola does not
operate
4. Only 3 of the 18 top executives are women
5. Long-term debt of 14 billion, up from last year's 5
billion
6. Trademark Coca-Cola beverages accounted for
51% of US case volume
27
IFE Matrix
1.
2.
3.
4.
5.
6.
7.
Internal Factor Evaluation Matrix (IFE)
Strengths
Weight Rating Weighted Score
Over 500 different brands consisting of over 3000 beverage products
0.11
4
0.44
Located in over 200 different countries
0.08
4
0.32
Consumers consume over 1.7 billion servings of Coca-Cola products worldwide each
0.10
4
0.40
day
Net income increase of 5 billion from last year
0.07
3
0.21
30% of Coca Cola's revenues come from United States
0.07
3
0.21
Coca-Cola owns and markets four of the world's top 5 nonalcoholic sparkling beverage
0.06
3
0.18
brands.
12% increase in case volume in Coke's Eurasia & Asia segment, with China posting a
0.07
4
0.28
41% increase
Weaknesses
1. Coke are not competing in the snack and food industries
2. 20% of the bottle supply are from companies Coca Cola does not have controlling
interest
3. There are not a huge amount of sub-industries in the beverage market in which CocaCola does not operate
4. Only 3 of the 18 top executives are women
5. Long-term debt of 14 billion, up from last year's 5 billion
6. Trademark Coca-Cola beverages accounted for 51% of US case volume
TOTALS
Weight Rating Weighted Score
0.10
1
0.10
0.05
2
0.10
0.09
1
0.09
0.04
0.07
0.09
1.00
2
2
2
0.08
0.14
0.18
2.73
28
Strategy Formulation
29
SWOT Matrix
SO Strategies
SO1 - Move to the alcoholic beverage industry (S2, O1)
SO2 - Increase expedition 206 (S6, O2, O6)
SO3 - Increase number of healthy products(S1, S2, O5, O6)
SO4 - Increase number of culturally specific products (S2, S5, O1)
ST Strategies
ST1 - Increase health programs (S1, S2, T2, T5)
ST2 – Expansion and increased marketing for energy drinks (S6, T1)
WO Strategies
WO1 - Move to the snack and foods industry (W1, W3, O2, O3, O4,)
WT Strategies
WT - Increase Marketing and Advertising (W3, T1, T6)
30
Space Matrix
FP
Conservative
Aggressive
Aggressive strategies
• Backward, Forward, Horizontal
integration
• Market Penetration
• Market Development
• Product Development
• Diversification
7
6
5
4
3
2
1
CP
-7
-6
-5
-4
-3
-2
-1
1
-1
2
3
4
5
6
7
IP
X-axis
4.5
Y-axis
2.3
-2
External Analysis:
Internal Analysis: -3
Financial Position-4(FP)
Stability Position (SP)
Return on Investment (ROI)
7 Rate of Inflation
-5
Leverage
6 Price Elasticity of Demand
Liquidity
6 Competitive Pressure
-6
Cash Flow
6 Barriers to Entry into Market
-7
Financial Position (FP) Average
6.3 Stability Position (SP) Average
Defensive
Competitive
Internal
Analysis: SP
External Analysis:
Competitive Position (CP)
Industry Position (IP)
Market Share
-1 Growth Potential
Product Quality
-1 Financial Stability
Customer Loyalty
-2 Resource Utilization
Control over Suppliers and Distributors
-2 Profit Potential
Competitive Position (CP) Average
-1.5 Industry Position (IP) Average
-1
-5
-6
-4
-4.0
5
7
5
7
6.0
31
Grand Strategy Matrix
Rapid Market Growth
Quadrant II
Quadrant I
Weak
Competitive
Position
Quadrant IV Strategies
• Related Diversification
• Unrelated diversification
• Joint ventures
Strong
Competitive
Position
Quadrant III
Quadrant IV
Slow Market Growth
32
BCG & IE Matrix
Segment
Operating Income
Eurasia & Africa
980
Europe
2,976
Latin America
2,405
North America
1,520
Pacific
2,048
Bottling Investments
227
Corporate
(1,707)
Total
8,449
%
Revenue
% RMSP Growth EFE IFE
11.60%
2,426 6.91%
1
4.7% 2.78 2.7
35.22%
4,424 12.60%
1
2.1% 2.58 2.7
28.46%
3,880 11.05%
1
6.0% 2.71 2.7
17.99% 11,140 31.72%
1
2.4% 2.61 2.7
24.24%
4,941 14.07%
1
7.5% 2.82 2.7
2.69%
8,216 23.39%
-20.20%
92 0.26%
1 35,119
1
33
BCG Matrix
Relative Market Share
0.5
1
0
10
5
3
1
4
Growth
Rate
0
-10
2
Star Strategies
• Backward, Forward, Horizontal
integration
• Market Penetration
• Market Development
• Product Development
34
IE Matrix
Hold and Maintain Strategies
• Market Penetration
• Product Development
IFE
4
3
2
3
1
5
1
EFE
3
4
2
2
1
35
Matrix Analysis
Alternative Strategies
SPACE
Forward Integration
X
X
2
Backward Integration
X
X
2
Horizontal Integration
X
X
2
Market Penetration
X
X
Market Development
X
X
Product Development
X
X
Related Diversification
X
X
2
Unrelated Diversification
X
X
2
X
1
Joint Venture
GRAND
BCG
IE
X
COUNT
3
2
X
3
Retrenchment
0
Divestiture
0
Liquidation
0
36
Million Dollar Question
“Should Coke Strive to enter the snack or food
business in order to remain competitive with
Pepsi Co”?
37
Million Dollar Question
No
38
Possible Strategies
• Market Penetration
• SO4 - Increase number of culturally specific products
• Product development
• SO3 - Increase number of healthy products
• SO4 - Increase number of culturally specific products
39
QSPM – External
Increase number of
healthy products
Opportunities
Weight
1. Global beverage industry is expected to grow from a valued $1.4
0.08
trillion in 2008, to $1.6 trillion by 2013
2. Teenagers have $158 billion dollars of disposable income annually
0.06
3. Economic growth of new emerging markets
4. Potential to partner with fast food chains
5. Projected demand increase in bottled water and energy drink
market by 5.8% and 14.3% respectively
6. A growing global awareness of health and wellness
Threats
1. Pepsi has the leading beverage in the water and sports drink
categories with Aquafina and Gatorade
2. More than 10% of the world's population is obese (WHO)
3. Unpredictable changes in currency rates
4. Water quality and scarcity has the potential to disrupt production
capacity
5. Increasing Government regulation on food and drinks
6. Evolving consumer preferences and a large number of substitute
products
7. Threat of hyperinflationary economies
Increase number of
culturally specific
products
AS
TAS
AS
TAS
3
0.24
4
0.32
4
0.24
3
0.18
0.05
0.09
3
0.00
0.27
2
0.00
0.18
0.10
4
0.40
2
0.20
0.12
4
0.48
1
0.12
Weight
AS
TAS
AS
TAS
0.08
2
0.16
1
0.08
0.10
0.04
4
-
0.40
0.00
1
-
0.10
0.00
0.10
-
0.00
-
0.00
0.04
-
0.00
-
0.00
0.07
3
0.21
4
0.28
0.07
-
0.00
-
0.00
40
QSPM – Internal
1.
2.
3.
4.
5.
6.
7.
1.
2.
3.
4.
5.
6.
Increase number of
healthy products
Increase number of
culturally specific
products
Strengths
Over 500 different brands consisting of over 3000 beverage
products
Located in over 200 different countries
Consumers consume over 1.7 billion servings of Coca-Cola
products worldwide each day
Net income increase of 5 billion from last year
30% of Coca Cola's revenues come from United States
Coca-Cola owns and markets four of the world's top 5
nonalcoholic sparkling beverage brands.
12% increase in case volume in Coke's Eurasia & Asia segment,
with China posting a 41% increase
Weight
AS
TAS
AS
TAS
0.10
-
0.00
-
0.00
0.07
3
0.21
4
0.28
0.10
4
0.40
2
0.20
0.07
0.06
-
0.00
0.00
-
0.00
0.00
0.04
-
0.00
-
0.00
0.06
-
0.00
-
0.00
Weaknesses
Coke are not competing in the snack and food industries
20% of the bottle supply are from companies Coca Cola does not
have controlling interest
There are not a huge amount of sub-industries in the beverage
market in which Coca-Cola does not operate
Only 3 of the 18 top executives are women
Long-term debt of 14 billion, up from last year's 5 billion
Trademark Coca-Cola beverages accounted for 51% of US case
volume
Weight
0.11
AS
-
TAS
0.00
AS
-
TAS
0.00
0.06
-
0.00
-
0.00
0.10
3
0.30
4
0.40
0.05
0.08
-
0.00
0.00
-
0.00
0.00
0.10
-
0.00
-
0.00
TOTALS
3.31
2.34
41
Strategy Implementation
42
3 Year Objectives
Objectives:
• Provide healthy alternatives beverages
• Diversify revenues amongst products
• Increase revenue to over 50 billion
•
currently at 35.119
43
Strategies and 1 Year Costs
• R&D for new products: $65 million (Pepsi spent $45m
for similar initiative in Japan)
• Marketing: current budget is 2.9 billion
• New healthy products: 15% increase – ~435 Million
Total expense: $500 Million
Desired return : 5.2 billion(15%) revenue increase
44
Assumptions
• Stock Price $57.00
• Cost of Strategy $500,000,000
• Additional Stocks needs to raise strategy cost
8,771,930
• Revenues increase 15%
• Interest rate 5%
• Tax rate 16.7%
• $1.76 in Dividends $4,062 mil.
45
EPS/EBIT
EBIT
Interest
EBT
Taxes
EAT
# Shares
EPS
EBIT
Interest
EBT
Taxes
EAT
# Shares
EPS
100% Common Stock
Low
High
14,700,000,000
15,500,000,000
14,700,000,000
15,500,000,000
2,454,900,000
2,588,500,000
12,245,100,000
12,911,500,000
2,316,771,930
2,316,771,930
5.29
5.57
20% Stock 80% Debt
Low
High
14,700,000,000
15,500,000,000
20,000,000
20,000,000
14,680,000,000
15,480,000,000
2,451,560,000
2,585,160,000
12,228,440,000
12,894,840,000
2,309,754,386
2,309,754,386
5.29
5.58
100% Debt
Low
High
14,700,000,000
15,500,000,000
25,000,000
25,000,000
14,675,000,000
15,475,000,000
2,450,725,000
2,584,325,000
12,224,275,000
12,890,675,000
2,308,000,000
2,308,000,000
5.30
5.59
20% Debt 80% Stock
Low
High
14,700,000,000
15,500,000,000
5,000,000
5,000,000
14,695,000,000
15,495,000,000
2,454,065,000
2,587,665,000
12,240,935,000
12,907,335,000
2,315,017,544
2,315,017,544
5.29
5.58
46
Projected Financials: Income Statement
Coca-Cola
Projected Income Statement (in
millions)
Total Revenue
Cost of Revenue
Gross profit
Selling, General and Admin. Expenses
Other Operating Charges
Operating Income (loss)
Interest Income
Interest Expense
Equity Income (loss) -- net
Other Income (loss) -- net
Income Before Tax
Income Tax Expense
Net Income
Less: Net Income atributable to
noncontrolling interests
Net Income Attributable to
Shareowners of The CocaCola Company
2010
35,119
2011
40,386 Increased by 15%
12,693
22,426
13,158
819
8,449
317
733
1,025
5185
14243
2384
11859
14,597 CGS
25,789
15,631 CGS + 500 expense
942
9,216
317 Same
758 Increased by 25
1,025 Same
5185 Same
14985
2508
12477
50
50
11809
12427
47
Projected Financials: Balance Sheet
Coca-Cola
Projected Balance Sheet (in
millions)
Assets:
Curent assets
Cash and cash equivalents
Short-term investments
Net Receivables
Inventories
Other current assets
Total current assets
Long-term Investments
Property Plant &
Equipment
Goodwill
Intangible Assets
Accumulated Amortization
Other Assets
Def Long-term Asset Charges
Total Assets
Liabilities:
2010
8379
2820
4430
2650
3162
21441
7585
14727
11665
15244
2121
72783
2011
13135 Fudged to balance
3243 Increased by 15%
5095 "
3048 "
3636 "
28156
7585
14727
11665
17531 Increase by 15%
2122
81786
Current liabilities
Accounts Payable
9132
9132
Short-term Debt
9376
9376
-
-
18508
18508
Long-term debt
14041
14541 Increased by 500
Other Liabilities
4794
4794
Deferred Long-term Liability
Charges
4261
4261
314
314
-
-
41918
42418
Other Current Liabilities
Total current liabilities
Minority Interest
Negative Goodwill
Total Liabilities
Stockholders' Equity:
Misc Stock Opt Warrants
Redeemable Pref Stock
Preferred Stock
Common Stock
Retained Earnings
880
49278
880 same
Increased by Net
Income minus
57,643 Dividends
Treasury Stock
-27762
-27762 Same
Capital Surplus
10057
10057 Same
Other Stockholders' equity
-1450
-1450
Total Stockholders' Equity
31003
39368
Total Liabilities and SE
72921
81786
48
Projected Financials: Ratios
Liquidity Ratios
Current
Quick
Leverage Ratios
Debt-to-Total Assets Ratio
Debt-to-equity Ratio
Long-term debt to equity Ratio
Activity Ratios
Fixed Assets Turnover
Total Assets Turnover
Profitability Ratios
Gross Profit margins %
Operating Profit Margin %
Net Profit Margin %
Return on Total Assets
Return on Equity
EPS
2010
2011
1.17
1.02
1.52
1.36
0.57
1.35
0.45
0.52
1.08
0.37
2.38
0.48
2.74
0.49
64%
43%
34%
16%
38%
5.12
64%
39%
31%
15%
32%
5.41
49
Foreseeable problems
• Lack of recognition from efforts
• Keeping related development costs under control
• Cost of goods sold may be higher for healthy
alternatives
50
Strategic Evaluation
51
Balanced Scorecard
Time
Area of Objectives
Measure or Target
Primary Responsibility
Expectation
Consumers
1
Satisfaction
Customer Survey results
Yearly
Chief Customer and commercial officer
2
Brand recognition
Industry Reports
Yearly
Chief Customer and commercial officer
3
Customer loyalty
Customer Survey results
Yearly
Chief Customer and commercial officer
Employees
1
Quality and service training
On site and webinars
Yearly
Chief People Officer
2
Employee Satisfaction
Survey
Yearly
Chief People Officer
Number of pruducts
Yearly
Product Quality
Chief Customer and commercial Officer
1
Number of healthy alternatives
Financial
1
Revenues
increase 15% (2011), over 10% for
following 2 years
Quarterly
VPO
2
Ratio analysis
Better than Industry & PepsiCo
Yearly
VPO
Volume of recyclable materials
Quarterly
Global community connections Officer
Business Ethics/Natural Environment
1
Waste reduction
2 Ethics Training
number of ethics training sessions Yearly
Global community connections Officer
52
Company Update
53
Update
• Well Being: In advancing one of our global commitments
to help address obesity, we offer more than 800 low- and
no-calorie options worldwide—nearly 25 percent of our
global portfolio. In 2012, we introduced more than 500
new products globally, including portion-controlled options
for regular calorie products, and more than 100 new lowor no-calorie options. Since 2000, our average number of
calories per serving has decreased by 9 percent globally.
In 2012, we supported more than 290 active healthy living
programs in 118 countries.
• Women: In our third year, we continue our journey to
economically empower 5 million women entrepreneurs
across our value chain by 2020 through our 5by20™
program.
• Water: We are partnering around the world to meet our
2020 water use reduction and replenishment goals. This
work has improved our water efficiency by 21.4 percent
since 2004 and supported an estimated replenishment of
approximately 52 percent of the water we used in our
finished beverage products through 2012.
54
Update
55
Questions
56
References
• Babal, A. (2013). Coca-Cola Company - 2011. In F. R. David, Strategic
Management; A competitive approach (pp. 235-243). Florence: Pearson.
• Coca-Cola Corporation. (2011). 2010 Annual Report. Atlanta.
• David, F. R. (2013). Strategic Management; A Competitive Advantage
Approach. Florence: Pearson.
• Harrison, J. S. (2013). Dr. Pepper Snapple Group. In F. R. David,
Strategic Management; A Competitive Approach (pp. 224-234). Florence:
Pearson.
• PepsiCo. (2011). 2010 Annual Report. Purchase.
• Press Release: The U.S. Liquid Refreshment Beverage Market
Remained Flat in 2013. (2014, March 31). Retrieved from Beverage
Marketing Corporation: http://www.beveragemarketing.com/newsdetail.asp?id=299
• Wikinvest. (2014, April 27). Coca-Cola Company (KO). Retrieved from
Wikinvest: http://www.wikinvest.com/stock/CocaCola_Company_%28KO%29
• Zmuda, N. (2009, November 22). Coca-Cola Lays Out Its Vision for the
Future at 2010 Meeting. Retrieved from Advertizing Age:
http://adage.com/article/news/coca-cola-lays-vision-future-2010meeting/140664/
57