International Journal of Advanced Research and Development

International Journal of Advanced Research and Development

ISSN: 2455-4030
Impact Factor: RJIF 5.24
www.advancedjournal.com
Volume 2; Issue 6; November 2017; Page No. 60-62

Strategic Planning & SWOT Analysis

Dr. Jayashree R Kotnal
Assit. Professor & Head, M.com Programme, BLDEA’s SBS, Arts & Commerce College for Women, Vijayapur, Karnataka, India

Abstract
There is no doubt that for an organization to actually remain stable and productive effort should be made to identify what
constitute their strength, weakness, opportunities and threat, hence the acronym SWOT. It is the identification and careful analysis
that would actually keep every productive organization going. If an organization does not make necessary effort to identify its
strength, weakness, opportunities and threat, such organization is bound to fail in area of productivity as such organization will not
be stable. This paper however dealt on the actual meaning and what the acronym stands for and its evaluation in two private
schools. The paper however identified what constituted strength, weakness, opportunities and threat of the two schools. SWOT
analysis however helped one of the two studied to advance in the face of growing challenges thereby leading to its stability and
increased productivity.

Keywords: strength, weakness, opportunities, threat, stability, productivity and organization

Background and History strengths and weaknesses, its opportunities for growth and
Coca-Cola’s history dates back to the late 1800s when Atlanta improvement, and the threats the external environment
pharmacist John Pemberton mixed caramel-colored syrup with presents to its survival. Originally designed for use in other
carbonated water to come up with a drink that many people at industries, it is gaining increased use in healthcare.
the time thought was different than anything they’ve ever had.
The name Coca-Cola was given by Pemberton’s bookkeeper, 1. Steps in SWOT Analysis
Frank Robinson, who also wrote the name in the distinctive The primary aim of strategic planning is to bring an
script that is still used this day in every can and bottle around organization into balance with the external environment and to
the world. The Coca-Cola Company as it is known is still maintain that balance over time (Sackett, Jones, and Erdley
headquartered in Atlanta Georgia where is it was founded over 2005). Organizations accomplish this balance by evaluating
one hundred years ago. new programs and services with the intent of maximizing
organizational performance. SWOT analysis is a preliminary
Introduction decision-making tool that sets the stage for this work.
Healthcare organizations must continually make adjustments
to maintain optimal function (Christiansen 2002). A number Step 1
of different techniques can be used to determine where SWOT analysis involves the collection and evaluation of key
adjustments need to be made. One essential technique data. Depending on the organization, these data might include
involves a discussion of an organization’s strengths, population demographics, community health status, sources of
weaknesses, opportunities, and threats, commonly called healthcare funding, and/or the current status of medical
SWOT analysis. SWOT analysis has been used extensively in technology. Once the data have been collected and analyzed,
other industries but has not been widely used in healthcare the organization’s capabilities in these areas are assessed.
(Kahveci and Meads 2008). SWOT analysis is a precursor to
strategic planning and is performed by a panel of experts who In Step 2
can assess the organization from a critical perspective (Gibis SWOT analysis, data on the organization are collected and
et al. 2001). This panel could comprise senior leaders, board sorted into four categories: strengths, weaknesses,
members, employees, medical staff, patients, community opportunities, and threats. Strengths and weaknesses generally
leaders, and technical experts. Panel members base their stem from factors within the organization, whereas
assessments on utilization rates, outcome measures, patient opportunities and threats usually arise from external factors.
satisfaction statistics, organizational performance measures, Organizational surveys are an effective means of gathering
and financial status. While based on data and facts, the some of this information, such as data on an organization’s
conclusions drawn from SWOT analysis are an expert opinion finances, operations, and processes (Carpenter 2006).
of the panel.
Step 3
Definition SWOT Involves the development of a SWOT matrix for each
Analysis is an examination of an organization’s internal business alternative under consideration. For example, say a

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hospital is evaluating the development of an ambulatory drink online, mainly because drinks of that sort are considered
surgery center (ASC). They are looking at two options; the convenience items and people want to consume them right
first is a wholly owned ASC, and the second is a joint venture away, it does sell apparels and gears online to promote its
with local physicians. The hospital’s expert panel would brands and products. Nowadays you can find coke products in
complete a separate SWOT matrix for each alternative. just about anywhere.

Step 4 6. Main Competitors

Involves incorporating the SWOT analysis into the decision- Coca-Cola has several competitors. However, the company’s
making process to determine which business alternative best main competitor is undoubtedly the Pepsi Cola Company or
meets the organization’s overall strategic plan. Pepsico. Both companies have been rivals competing against
each other ever since they were founded. Both Coke’s and
2. Products and Brands Pepsi’s portfolios of products are extensive. They offer
Coca-Cola has hundreds of brands and thousands of products products that are somehow similar in flavor, ingredients, and
sold worldwide in over 200 countries. Some brands and price. However, Coke tries to position itself as a company that
products are only sold locally due to cultural taste while other has been around much longer and cater to the needs of thirsty
products are sold in a specific region or around the world. drinkers around the world by offering distinct products to its
Coca-Cola’s most famous brand is its Coca-Cola Classic customers around the world.
Brand known for its white and red colors and original formula.
Aside from its popular soft drink Coca-Cola brands which 7. Financial Records and Company Growth Financially
comes in a variety of flavors and diets, some of Coca-Cola’s Coca Cola has been lagging behind PepsiCo with both
other popular brands include, Canada Dry Ginger Ale, Dasani revenue and net income decreasing over the past few years.
Water, Nestea, Bacardi, Fuze, Minute Maid orange juice, However, the company’s total assets have increased by several
Odwalla, Powerade, and Sprite. billions in the last few years including cash flow. Over the
past three years from 2012 to 2014, Coca Cola’s revenue has
3. Target Market decreased from about $48 billion to $45.9 billion; a decrease
Coca-Cola’s target market is as vast and varied as its product of over 4 percent over the past three years. Net income
lines around the world. While the company does not have a decreased from $9 billion to about $7 billion or 22 percent
specific target market, it does however, target specific markets during the same period. On the other hand, PepsiCo’s revenue
and demographics based on taste and habits. For example, it’s increased from $65.4 billion to about $66.6 billion during the
Odwalla brands of healthy juices is targeted towards people 2012-2014 period; an increase of 1.8 percent compared to
who are health conscious and do not mind spending a bit more Coke’s 4 percent decrease during the same period. Pepsi’s net
money for a healthy drink while its Powerade drink is geared income increased slightly from $6.1 billion to $6.5 billion; an
towards athletes who need a drink to replenish their system increase of 6 percent. As we can see, Coca Cola is lagging
after a hard workout. Around the world Coca-Cola offers behind PepsiCo in revenue and in profits.
products targeted towards local markets and tailored to
national tastes while keeping in mind cultural beliefs. For 8. Market Value and Stock Growth
example, in India Coke offers Limca a light lemon-lime drink The Coca-Cola Company’s total dollar market value, which is
that is a favorite of the locals; and in Europe it offers Fanta, an calculated by multiplying a company's outstanding shares by
orange flavored drink that is consumed daily by people there. the current market price of one share, is over $178 billion. At
its highest Coca-Cola’s stock peaked at over $42 in May 2013.
4. Social and Environmental Involvement It increased from below $32 in January 2012. It has been
The Coca Cola Company runs an international philanthropic gradually rising over the past few years. The stock is currently
nonprofit organization called the Coca Cola Foundation. The hovering around $40 a share.
foundation promotes water conservation within communities
and industry and supports access to clean water and sanitation 9. Company Management and Key Officers
in rural areas. It also supports access to exercise, physical Coca Cola’s CEO and Chairman of the Board is Muhtar Kent.
activity and nutritional education programs that promote Mr. Kent joined the company in 1978 and served in various
healthy living. In addition, it looks into new recycling roles since then. He became Chief Executive Officer of the
methods to decrease litter and increase recovery and reuse. Company on July 1, 2008, and as Chairman of the Board of
The foundation also supports education by providing access to Directors in 2009. Coca Cola’s President of Eurasia and
programs through grants and scholarships. Africa Group is Mr. Ahmet C. Bozer. Mr. Bozer joined the
company in 1990 as a financial controller. In 2000 he was
5. Distribution Channels appointed president of Eurasia and Middle East Division and
Coca-Cola’s products are sold and distributed worldwide Eurasia Group President in 2007. He leads the company's
through many outlets from store shelves and vending business activities in over 90 countries. The President of
machines, to concession stands and restaurants. The Coca- Coca-Cola's Latin America Group is Mr. José Octavio Reyes.
Cola Company tries to extend its reach and offer its products Mr. Reyes began his career with Coca Cola in 1980 as
through many channels to expand its offerings to everyone Manager of Strategic Planning in Mexico. He was named
around the world. Although the company does not sell its president of Latin America Group in 2002.

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SWOT Analysis Strengths, Weaknesses, Opportunities,

and Threats
a. Strengths: One of Coca Cola strength is its extremely
recognizable brand. The company’s popularity is one of its
superior strength which is virtually incomparable. The
Coca Cola brand is known all over the world. People drink
Coke not only for its taste, but because feeling that they
are part of something cool, hip, and popular.
b. Weaknesses: Coca Cola is a very successful global
company, with limited weaknesses. Like every
multinational corporation with several products sold in
many countries, Coca Cola does have some weaknesses.
Word of mouth can be a weakness in some cases. Some of
its products do not taste as good and are not as popular as
its flag brand Cole Classic. However, one of the biggest
weaknesses that Coke faces is the public’s perception that
it is unhealthy and can leads to certain diseases like
diabetes if consumed in high quantities.
c. Opportunities: Because Coca Cola is a big company it
has few opportunities that it can exploit. It has many
unpopular brands and products that it should continue to
take advantage of and develop. Another opportunity lies in
its ability to develop new products based on changes in
consumer tastes.
d. Threats: In spite of the fact that Coca Cola dominates the
beverage market, it still has to deal with many threats. The
first and foremost of which is competition, especially from
second leading competitor Pepsi. Another threat is the
changing health-consciousness attitude of the market,
which could have a serious effect on Coca Cola.

Reference
1. http://us.coca-cola.com/ Accessed Coca Cola Financial
Profile, 2012.
2. http://finance.yahoo.com/ Accessed Coca Cola
Distribution Information, 2012.
3. http://www.colalife.org/2010/12/19/how-coca-colas-
distributionsystem-works/ Accessed Coca Cola Brands,
2012.
4. http://www.coca-colacompany.com/brands/all Access
2012.

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