Discussion 2
Monitoring competitors’ performance and strategies is a key aspect of an external audit.
Monitoring competitors’ performance and strategies is a key aspect of an external audit. This exercise is designed to give you practice in evaluating the competitive position of organizations in a given industry and assimilating that information in a CPM.
EXERCISE 3B Develop a Competitive Profile Matrix for Coca-Cola
Purpose
Monitoring competitors’ performance and strategies is a key aspect of an external audit. This exercise is designed to give you practice in evaluating the competitive position of organizations in a given in-dustry and assimilating that information in a CPM. Instructions
Step 1 Turn back to the Cohesion Case and review the section on competitors (p. 28). Also view online resources that compare Coca-Cola with Pepsi. Use the sources listed in Table 3-7.
Step 2 Prepare a CPM that includes Coca-Cola, Pepsi, and Dr Pepper.
Step 3 Turn in your CPM for a classwork grade.
THE COHESION CASE
Coca-Cola Company, 2018 BY FRED R. DAVID www.coca-cola.com, KO
Headquartered in Atlanta, Georgia, Coca-Cola Company (Coke) is the world’s largest producer and distributor of beverages, marketing over 500 nonalcoholic brands in more than 200 countries. Coke has 21 billion-dollar brands, 19 of which are available in lower-and no-sugar options. Four of the top five beverages sold globally are Coke products: 1) Coca-Cola, 2) Diet Coke, 3) Fanta, and 4) Sprite. Other Coke products include Dasani waters, Fanta, Gold Peak teas and coffees, Honest Tea, Powerade sports drinks, Simply juices, Glaceau Smartwater, Sprite, and Zico coconut water. However, company’s revenues for 2017 declined 15 percent, so rumblings are spreading within the firm. Coke brands sold mostly outside the United States include Ayataka green tea in Japan, I LOHAS water in Japan, Ice Dew water in China, FUZE TEA outside the United States, Minute Maid Pulpy in Asia Pacific, Georgia coffee in Japan, and Del Valle in Latin America. Five large independent bottling companies supply Coke with 39 percent of their bottling needs, led by Coca-Cola FEMSA that sup-plies central Mexico and countries in Latin and South America. Coke revenues have declined every year for nearly a decade, usually accompanied by net income declines. Since 2005, sales of diet soda in general have dropped every year, a combined 34 percent. Although Diet Coke is the weakest link in the company’s whole soda lineup, the brand is still the third best-selling carbonated drink in the United States. Environmentalists are complaining, saying Coke produces 110 million plastic bottles annually that end up in landfills and oceans. To combat this complaint, the company launched in 2018 its “World Without Waste” initiative. Coke needs a good strategic plan because its customer base is eroding and its shareholders want sustained 5 percent annual growth in revenues and profits—and not declines—every year. Copyright by Fred David Books LLC
Answer preview Monitoring competitors’ performance and strategies is a key aspect of an external audit.
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