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Cola Wars Continue Essay

4810 words - 20 pages

Coca-Cola was originally formulated in 1886 by John Pemberton in Atlanta, Georgia and then later acquired by Asa Candler. One of the most influential people in Coca-Cola's history was Robert Woodruff, who became CEO of the company in 1923, and later developed Coca-Cola's international business and was instrumental in cooperation with U.S. Armed Forces during WWII.Caleb Bradham, a North Carolina pharmacist, invented Pepsi in 1893. Like Coca-Cola, Pepsi developed a franchised bottling system in the year 1910. Pepsi had a much more difficult time surviving and becoming successful, as it declared bankruptcy in 1923 and 1932. However, today Pepsi is a strong company that is competing with ...view middle of the document...

PepsiCo's mission is "to be the world's premier consumer products company focused on convenient foods and beverages. We seek to produce healthy financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity. Pepsi's responsibility is to continually improve all aspects of the world in which we operate - environment, social, economic -- creating a better tomorrow than today. Our commitment is to deliver sustained growth, through empowered people, acting with responsibility and building trust" (PepsiCo website).SWOT AnalysisIn order to survive and prosper, organizations need to make smart decisions regarding their strategic direction. Determining the future direction of an organization is a process of aligning the internal strengths and weaknesses of the organization with the threats and opportunities in the external environment.Effective strategic decisions require simultaneous consideration of internal strengths and weaknesses and external threats and opportunities. In general, decision makers are able to develop a reasonably good understanding of internal variables. The combination of personal experience and internal reports provide management with a background to questions like "What are the major internal strengths and weaknesses of our organization?"However, a similar question regarding the external environment, such as "What are the major external threats and opportunities facing our organization?" will generally reveal a poor understanding of the external environment. Managers can typically list some of the more obvious external factors, but typically disagree among themselves what those important factors are. What is generally missing is a balanced assessment of all the major components of the external environment: economic, social, legal, governmental, competitive, and technological aspects.SWOT stands for internal Strengths and Weaknesses and external Opportunities and Threats. SWOT analysis provides a useful vehicle to illustrate the importance of describing the external environment in clear and concise ways and the difficulty of identifying a good strategy.Internal AnalysisCoca-Cola has been a complex part of American culture for over a century. The product's image is loaded with over-romanticizing, and this is an image many people have taken deeply to heart. The Coca-Cola image is displayed on T-shirts, hats, and collectible memorabilia. This extremely recognizable branding is one of Coca-Cola's greatest strengths.Brand recognition is the significant factor affecting Coca-Cola's competitive position. Coca-Cola's brand name is known well throughout 94% of the world today. The primary concern over the past few years has been to get this name brand to be even better known. Packaging changes have also affected sales and industry positioning, but in general, the public...

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