Coca Cola Internal Analysis Essay

Executive digest coca plant-cola corporation is leading manufacturer, distributor, and commercialiseer of non alcoholic drinks in the United States of the States and all all over the world. It is a multinational Giant alliance that has market armorial bearing in almost all countries of the world. The comp all has in addition alter from its initial soft drinks to manufacture fruit juices and any(prenominal) other non-soda drinks. Its objective has been to nourish its globose leadership in provision of beverages and other non-soda drinks by dint of maintaining senior racy school quality intersectionion orders that ensure the name and products remain a phratry pock. Introduction Re point of reference based view approach has been a method most managements have used to formulate their companies strategies (Barney, 1991).This is because Resource Based muckle regards a fraternitys inbred environment rather than the immaterial environment. The advantage of exploitation internal environment as a source of strategy formulation is that the family is able to consider factors which be inside its controls which constitute its strengths and weaknesses (Connely, 2010). This paper presents an internal analysis of coca plant cola connection with specific regard to the economic value of the companion, its resources and capabilities that make it distinct from other companies giving it competition through provision of similar soft drinks. Economic value Added In 2010, The coca Cola Company posted an emergence in revenues as compared to the previous year. The profits came to $6.48 billion. The cost of capital for Coca cola Company is estimated to be 8.7% and the capital totaled $72.929 billion. Ensuing is the EVA slowness for the company. Net Operating Profit After Tax (NOPAT) (capital * cost of capital) = 4.08 (72.929*.087) billion. This comes to $0.2 billion. The companys EVA comes to $0.2 billion.Coca cola Company Resources Being a global leader in feat of beverages and soft drinks, Coca Cola Company has various resources that play a major role in all(prenominal) exertion stage to ensure that the production and delivery of its various product and resultant client services are of high standards. The company has some(prenominal) tangible and intangible resources that help it in the various production stages and subsequent delivery of the products to the targeted consumers. Tangible resources The tangible resources include physical, human and Financial Resources. Coca Cola Company has many physical resources it possesses and manages. These physical resources include buildings and equipment. Coca cola has managed to construct buildings in almost all regions. The presence of self owned production plant means that the cost of production is maintain low. This enables the company to offer high quality products at low prices. The presence of self owned equipment ensures that the company does not lease or call for any equip ment and frankincense managing to cost of production low.The companys lovesome financial position ensures that it has stable financial resources to charter out the production process without major problems in terms of money shortages. The positive cash flows usually ensure that a company has cash available for any activity that needs cash (Lawton, 2006). This position enables it to avoid unnecessary debt financing. The company also maintains a motivated work lunge. This has been a major force in driving its products into shelves and subsequently into the shopping lists of consumers. The company has highly invested in employee training and development as this is an important factor in ensuring that the workers have-to doe with in the production deliver a high quality work, and those that are concerned with marketing ensure that the products are bought by consumers.This has come through realization that the coca cola products do not fall to a lower place the necessity class but rather fall under notion products. Intangible Resources The Companys intangible resources include the practiced resources, adroit and good allow. Coca cola company has for a dour time enjoyed technical resources that have helped the company has technical expertness in production of some products that have been of great use fostering the companys goals. The company has been able to come up with numerous flavors in their soft drinks much(prenominal) as such as , Orange flavor, Pineapple, b wish currant, lemon, Ginger and so on. These productions are a clear indication that the company has great expertise knowledge that it uses as an advantage of other companies offering similar products, the company also enjoys intellectual property of the brands that they provide. This is because once a company does question and development and comes up with a product, it has the option of patenting that particular product thus maintaining the exclusive rights to supply that particular product (Edvinsson & Malone, 1997).The company has also enjoyed a good testament and customer loyalty over a huge period of time this has been an internal strength that it has used to its advantage since the coca Cola brand and its products have enjoyed an undying loyalty from consumers. The brand visibleness of the company has also ensured that many people access the products really in time. characteristic capabilities Coca Cola Company enjoys distinctive capabilities that enable it to carry out productions in a manner that is superior to other competitors. Distinctive capabilities that Coca Cola Company has are Innovation, reputation, and architecture. The company has been able to reveal new products into the market.This has been a major competitive edge over the competitors since they lack the innovation capability to come up varied new products. Its production methods and the ingredients mixture have remained a strong contributor to the unique and high quality products that have enabled the products enjoy a superior status over the competitors. The company has also managed to command strong reputation in congress to its competitors. This reputation has earned it goodwill and ensured that it remains a favorite brand among the consumers. The companys architecture plans ensure that the company daily tally is congruent with the objectives. The company has instituted a structure system where it outsources product dissemination from individual distributors and this has enabled it to manage its operations without dealing with many market dynamics. proofAn analysis of the Coca Cola Companys internal analysis through considering the Resource based View provides insightful knowledge on the companys management practices with regard to strategy formulation using the internal environment approach. The company should therefore keenly look into the areas of internal environment as this is where much strategy formulation ought to originate. The company will continue to be a global leader in supply of non-alcoholic beverages because it has fortunately employed the use of its internal analysis to formulate successful strategy. It will however have to improve on its sluggish performance in northern America which is its major market. The internal resources and capabilities of Coca-cola Company will continue to provide a secure foundation for formulation of long term strategy and ensure it maintains a strong reputation.RerencesBarney, J. B. (1991). Firm Resources and carry on Competitive Advantage. Journal of Management , 99-120. Comeford, R., & Callaghan, d. (2011). Environmental, industry, and internal analysis. London prentice Hall. Connely, D. (2010). Strategy for Internal Environment. Power point presentation. Edvinsson, L., & Malone, S. (1997). Intellectual slap-upRealizing Your Companys True Value by Finding its obscure Brainpower. New York Harper Business. Henry, A. (2007). The Internal Environment of an Organization. London Oxford Uni versity Press. Lawton, K. (2006). Swot analysis A management Strategic Success Tool. New York Cambridge. Szulanski, G. (1996). Exploring Internal StickinessImpediments to the channel of Best Practices within the Firm. Strategic Management Journal , 27-44. Zahorsky, D. (2009). A rail line owners Secret Weapon Swot analysis. New jersey Mc Graw Hill.