Coca-Cola
PESTEL,
VRINE and
Diamond
Submitted by: Julien Nicolas, Jiaming
ge, Ineka Aitcheson-Hogge, Roshan
Joy
Contents
• Introduction to the company
• PESTEL Analysis
• VRINE
• Diamond
• Conclusion
Part 1: Introduction to the company
-Coca-Cola was founded in 1892.
- World leading manufacturer and seller
- ‘refresh people, refresh communities, refresh the planet'
- Operates in over 200 countries around the world.
- Coca - Cola has a diverse portfolio of 200 brands expanded
their products to create 2,800 products
Part 2
External Environment:
PESTEL ANALYSIS
PESTEL Analysis
Political
• Adhere to FDA guidelines, local taxation, labour laws, employment conditions (U.S. Food
and Drug Administration, 2021)
• Adhere to trade relations of other countries with the US can impact the business of CocaCola
Economic
• Businesses, has decreased the annual revenue and net income of the company due to
the covid-19 pandemic in 2020.
• Trading countries like the US, Canada, and Mexico have a free trade agreement
Sociocultural
• The streamlined Coco-Cola ranges are adapted to local lifestyle trend (Kaplan, 2021)
• Opting for teas and waters for sugary drinks for health-conscious consumer like Coke
Zero
PESTEL Analysis
Technological
• Developments in artificial intelligence and machine learning
• Data-driven decision making
• Greater efficiency in manufacturing due to machinery innovations (The CocaCola Company, 2021)
Environmental
• Climate crisis has led to pending water risk which will impede availability of raw
materials for Coca-Cola
• Chronic and physical risks due to climate change – impedes availability of crops
Legal
• Foreign employee practices
• Legal compliance of local laws
Part 3
Internal Environment: VRINE
ANALYSIS
Resources and Capabilities
Tangible resources
• building, equipment and their bottling partners
Intangible resources
• secret formula
• technology
• its “Goodwill” (strong brand name, good customer relations or good employee
relations)
Capabilities
• distribution and bottling operations.
• innovation in products
VRINE
Resources &
Capabilities
Valuable?
Rare?
Inimitable & Nonsubstitutable
Exploitable?
Manufacturing and
bottling facilities
Yes, helps the company
reach to many customers
and consumers globally
No, other huge companies
own global manufacturing
facilities
No, it can be
imitated and
substituted
yes
Yes, it is unique
Yes, cannot be
imitated and cannot
be substituted
yes
Brand image
Yes, many individuals
around the globe recognize
the company
Beverages’ formulas
Yes, because it is unique
and adds value to the
consumers
Yes, it is unique
Yes, cannot be
imitated and unique
formulas
yes
Beverages’ quality
Yes, high quality of
beverage create great
value to Coca-Cola
No, there are many
beverages substitutes with
same quality such as Pepsi
beverages
No, there are
many
beverages
substitutes
with same
quality such
as Pepsi
beverages
yes
Marketing
Capabilities
Yes, it helps the company
attract many customers and
consumers
Yes, it is rare to find strong
marketing capabilities on a
global scale
Yes, it is unique
yes
Part 4
Diamond and Strategy
recommendations
•
•
Conclusion
• propel Coca Cola to propel their innovative technology
towards new markets.
• constant works to gain competitive advantages
• face competition from healthier companies
• drastic changes need to be done
i. Replacement to alcohol drinks.
ii. Development in purified water system.
iii. Use of purified sea water for Coca Cola drinks.
Thank you very
much for your
attention.
Any Question?
Reference
Coca Cola Company. (2021). 125 Years of Sharing Happiness. Retrieved November 16, 2021, from Coca Cola Company: https://investors.coca-colacompany.com/filings-reports/annual-filings-10-k/content/0000021344-21-000008/0000021344-21000008.pdf
Coca Cola Company. (2021). About Our Suppliers. Retrieved November 16, 2021, from Coca Cola Company: https://www.coca-colacompany.com/our-company/suppliers/suppliers
Coca Cola Company. (2021. About Us: Coca-Cola History. November 16, 2021, from World Of Coca: https://www.worldofcoca-cola.com/about-us/coca-cola-history/
Coca Cola Company. (2021). Supplier Guiding Principles. Retrieved November 16, 2021, from Coca Cola Company:https://www.coca-colacompany.com/shared-future/people-values/supplier-diversity/supplier-guidelines
Coca Cola Company. (2021). The Coca-Cola System. Retrieved March 25, 2019, from Coca-Cola Company: https://www.coca-colacompany.com/company/coca-cola-system
Kaplan, J. ( 2021). Coca-Cola’s Focus on Healthier Drinks Pays Off. [online] Bloomberg.com. Available at: <https://www.bloomberg.com/news/articles/2018-04-24/coca-cola-s-focus-on-healthier-drinks-pays-off-with-profitbeat> [Accessed 15 November 2021].
U.S. Food and Drug Administration (2021). Carbonated Soft Drinks: What You Should Know. [online] Available at: <https://www.fda.gov/food/buy-store-serve-safe-food/carbonated-soft-drinks-what-you-should-know>
[Accessed 15 November 2021].
The Coca-Cola Company. 2021. Tech and Big Data Accelerate Innovation Strategy - News & Articles. [online] Available at: <https://www.coca-colacompany.com/news/tech-and-big-data-accelerate-innovation-strategy> [Accessed 12 November 2021].
https://www.forbes.com/sites/greatspeculations/2018/09/04/why-is-coca-cola-paying- a-hefty-premium-for-costa-coffee/#38170e1f1643
The Coca Cola Company. (2018). 2017 Agriculture Update: More Sustainably Sourcing and Sharing Opportunities with Farmers. Retrieved April 1, 2019, from Coca Cola Company: https://www.coca-colacompany.com/stories/2017-ag
The Coca Cola Company. (2012). Offices & Bottling Plants. Retrieved April 4, 2019, from Coca Cola Company: https://www.coca-colacompany.com/stories/offices-bottling- plants
Innovating Beyond the Traditional Package — and Giving People the Drinks They Want. Retrieved April 13, 2019, from Coca Cola Company: https://www.coca-colacompany.com/stories/innovating-beyond-the-traditional- package-giving-peopledrinks-they-want?utm_source=annual-review- 2017.com&utm_medium=referral&utm_campaign=Annual_Report
Nestlé and The Coca-Cola Company ending their Beverage Partners
Worldwide joint venture. Retrieved April 1, 2019, from Nestle: https://www.nestle.com/media/news/nestle-coca-cola-company-end-beverage- partners-worldwide-joint-venture
Coke and McDonald’s, Growing Together Since 1955 . Retrieved
from NYtimes: https://www.nytimes.com/2014/05/16/business/coke-and-mcdonaldsworking-hand-in-hand-since-1955.html
Coke buys remaining stake in Honest Tea. Retrieved March 30, 2019,
from Reuters: https://www.reuters.com/article/us-cocacola-honesttea-