Coca-Cola Internal Analysis and SWOT Analysis - Essay Example

Naturally this means that the organizations must develop their internal capabilities to the extent that they will be difficult for competitors to imitate or substitute. This paper conducts an internal analysis of the Coca-Cola Company in order to delineate those resources and capabilities from which it derives its strength as well as those competencies that it either lacks or poorly executes and as such are its major weaknesses that competitors could exploit. The paper begins with an evaluation of Coca-Cola’s tangible and intangible resources that lead to its strengths then uses the value-chain analysis to bring out and then analyze the company’s weaknesses.

Analysis Resource and competency analysis According to Henry (2011) whereas the existence of resources is important, by themselves they do not confer any benefits to the organization. It is how efficiently these resources are configured that provides the organization with competencies that allow the organization to achieve competitive advantage. . company able to blend ingredients into the unique Coke formula X -Ability to continuously come up with new products and/or expand product lines -Managing the world’s largest beverage distribution system (Coca-Cola, 2012) also effective in franchising -Enterprise Value: US$ 173.

46 billion (Yahoo! Finance, 2012) -Current Ratio above 1 from 2009 to 2011 (EBIT Financial, 2012). -Return on Equity, Operating margin and Net margins have been double digits since 2007 (EBIT Financial, 2012) Financial - Has the resources for R&D, market development, market expansion and so on. -Company’s efficient in turning its product to cash - Ability to consistently deliver profits reassures investors and other suppliers of financial capital -146,200 employees Human -Also has a strong diversity and inclusion policy that enriches its talent pool - Holds secret formula X Intellectual / technological -Own and market four of the world’s top five nonalcoholic sparkling beverage brands: Coca-Cola, Diet Coke, Fanta and Sprite.

Intangibles -Intelligently exploited the mystery of Coke’s formula X for market positioning -Renown for superior advertising and other market promotion techniques From the table above three key strengths emerge. Firstly, Coca-Cola has a remarkable global presence. This enables the company to leverage its economies of scale to weaken the power of its suppliers as well as its customers. Also, this global presence implies that the company is able to balance its performance in slow economic regions with that from booming economic regions to sustain its profitability.

Secondly, the company’s healthy financial position even during the global recession gives it a good credit rating. This means the company can easily raise additional capital for various strategic