IFE, EFE, and Space Matrix of Coca-Cola

Table of Content


Coca-Cola – the merchandise that has given the universe its best known gustatory sensation was born in Atlanta Georgia on May 8 1886. Coca-Cola Company is the world’s prima maker, seller and distributer of non-alcoholic drink dressed ores and sirups, used to bring forth about 400 drink trade names. They have a strong direction and selling squad and they produce merchandises that people want and in some instances need.

Examples of well-known trade names they own include Coke, Sprite, Fanta, Vitamin Water, Minute Maid, Bonaqua and Powerade. Although, even a successful company can come toppling down and in order to remain in front of the competition and to go on gross growing we would rede the company to seek out extra concern schemes in which will explicate in deepness in the undermentioned subdivisions ( our company 2014 ) .

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Coke’s mission is to “refresh the universe inspire minutes of optimism and felicity and to make value and do a difference.

Coca-Cola believe that they chief duty is supplying clients with reviewing drinks including soft drinks H2O energy drinks, juice and tea to suit any juncture in their day-to-day lives. Coca-Cola signature merchandise Coke is a favourite around the universe and a broad assortment of merchandises are sold in over 200 states. They use the merely the most sophisticated equipment to procedure and do the merchandises to guarantee each glass of coke merchandise it every bit good as ever. Besides, employees are reasonably compensated and we pattern just trade in all markets we compete Coca-Cola values their duty to all communities to function and back up many educational plans.

Furthermore, The Company’s ends include maximising growing and profitableness to increase shareholders’ wealth and to be globally known as a concern that conducts concern duty and ethically and to speed up sustainable growing to run in tomorrow’s universe. The schemes that The Coca-Cola Company is presently prosecuting to accomplish these ends include: merchandise invention ; making good planned packaging and pricing strategies ; and increasing operating efficiencies. The Company frequently reviews and evaluates their concern programs and public presentation to better their net incomes and analyze their competitory positioning the market. They make determinations in realining their concern theoretical accounts to fit the aims of the Company by utilizing schemes and tactics in the analysis of their public presentation ( our company.

2014 ) .

INTERNAL Analysis: ( See attached IFEM )

The Coca-Cola Company has an IFEM mark of 2. 82 which is an indicant of a strong internal place. It can besides be observed that there are much more internal strengths than the failing which is why besides the company has a strong internal place.

Finance: Coca-Cola has consistent fiscal operating consequences and compared to their competition they are much better fiscal form. For the twelvemonth stoping 2013 the company generated a humongous $ 48 billion in gross an addition over the past two old ages. Harmonizing to the company’s 2013 Income Statement net income, runing income, and gross net income resulted in a positive year-over-year per centum alteration. Coca-Cola has a Quick Ratio of 0.

92 % and a Current Ratio of 1. 03 %  therefore holding a low projected hazard of delinquency and a low hazard of failure. Coca-Cola has the entire debt to plus ratio of 41. 17 and net income border of 18.

22 % .The company meets its end of maximising shareholders’ wealth as the company’s stock ( KO ) monetary value plus reinvested dividends continue to tendency upwards. Management: There are a batch to state for a company that is been in concern for 127 old ages and it’s evident that the direction construction is strong the company besides has a planetary employee work force of 150. 900 that contributes to the overall success of the organisation.

The company strives to do a positive impact in the universe and intends for their nucleus values to expose non merely inward but besides outward toward the client. Some of those nucleus values are: diverseness, coaction, passion, answerability and unity.


With the proper qualitative research. the company can estimate what type of drink the consumers want and whether or non their merchandises taste good to the consumer.

The company offers over 91 merchandises worldwide but in order to remain in front of competition the development of new merchandises, merchandise packaging and merchandise variegation is indispensable.Selling: Coca-Cola is a selling giant which proves to be an internal strength for the organisation. Through effectual selling schemes 98 % of the world’s population recognizes the celebrated white and ruddy Coca-Cola logo. Over the old ages Coca-Cola has had many originative mottos such as “Open Happiness” and “It’s the existent thing” .

Consumers besides enjoy the annual Coca-Cola Super Bowl commercials that frequently promote felicity with the Clydesdale Equus caballuss or Polar Bears. In add-on Coca-Cola is taking advantage of societal media sites to pass on with their clients. In drumhead The Coca-Cola Company yielded a positive internal analysis.The company is in good fiscal form and continues to better and bring forth positive year-over-year net incomes.

Equally long as the company can maintain its debt under control they will go on to be in good fiscal wellness. The direction squad and planetary work force at Coca-Cola are strong and their nucleus values reflect positively though their committedness to societal duty. The company should go on to research what type of drinks best suit consumer’s demands in order to remain in front of the competition. Last, the company excels with their selling runs and should go on with aggressive and originative selling to keep market portion.

External ANALYSIS ( See attached EFEM )

Company Coca-Cola appears to be viing in a hostile environment as indicated by the EFEM mark of 2. 39. It can be seen in the External Factor Evaluation matrix that the industry is confronting more menaces than the chances and the precedence of the menaces are besides more than the chances. This means that the industry is more vulnerable to the effects of menaces than chances.

Demographic: Coca-Cola is the most well-known merchandise throughout the universe. The demographics used to section those users of Coca-Cola located in the United States are as follows: age, race, income, instruction, employment, family size, gender and life style. Coca-Cola was originally created as sirup to be sold to soda fountains. where it would be assorted with soda H2O and served to frequenters typically adolescents and immature grownups.

And merely as it was created for the younger coevals, that’s where it’s popularity has remained. with the 18-24 year-old age demographic.However Coca-Cola’s volume potency is highest for 25-34 year-olds. In the grownup population Coca-Cola is most popular among work forces.

and more specifically individual work forces. However there is important volume potency for married individuals. and Coca-Cola could therefore prospectively increase their gross revenues volume by marketing more towards married individuals ages 25-34.Competition: Existing Rivalry in the soft drinks industry is between Coca Cola PepsiCo and Dr Pepper Snapple.

However Coca Col a remains to be the market leader and has maintained the leading through its intensive selling runs. invention in presenting trade names which captures the germinating client demands and the wider presence of its trade names in many states across the universe. This combined by the important market experience for the many old ages the concern has been in the industry gives the Coca Cola a competitory border over rivals. New entrant’s new entrants: Coca Cola as the taking soft drink marketer in the industry has a big web which gives it economies of graduated table and broad presence all over the universe.

The economic systems of graduated table makes Coca Cola’s mean cost to be excessively low for new entrants to be able to come in the market since they can non afford to bring forth at such low cost hence the market has low entrant. The cost of come ining the soft drinks industry is besides high due to the much research needed for the trade names development. equipment and expertness involved which besides keeps off many possible entrants in the market. This gives Coca Cola a competitory border against any possible entrants.

Economic: Inflation rate rise which is the general rise of the monetary value degree reduces the consumer’s buying power cut downing demand for the business’s merchandises while its decrease additions buying power increasing demand. Following Emerging markets are increasing concern operations in international market l. This can be demonstrated by the important public presentation of the company with the net incomes before involvement in markets outside US stand foring 80 % of the company net incomes. Interest rate determines the cost of borrowing for investors in the market.

Therefore a rise of the rate increases the cost of investing which reduces competition in the market while a autumn of the rate reduces the cost of capital increasing competition in the market. Unemployment rise affects the sum of disposable income available to the consumers with its rise cut downing the income hence cut downing demand. On the reverse an addition in employment increases the disposable income increasing demand for goods hiking the concern public presentation. Economic growing rate and public presentation determines the degree of income in the economic system which determines the aggregative demand in the market.

Thus a positive economic growing additions demand in the market while a negative growing reduces demand.SOCIAL: Lifestyle alteration in the market alterations demand for merchandises naming for the concern to present merchandises that meet the new demand while phasing out the old merchandises with no demand ; this has promoted invention of the company in presenting relevant merchandises like the diet trade names and low or Zero Calories trade names.Aging population and population composing alteration and diversified merchandises penchant in the market as different age groups have different gustatory sensations and penchants with the aged going more concerned with their wellness hence holding their demand alteration to healthy merchandises cut downing demand for some of the concerns merchandises. The consumers wellness concern and age penchants has resulted to Carbonated drinks being much preferred by and commanding a big vernal market section who care less about C wellness consequence which has been the concern.

There has besides been a important growing of healthier soft drinks due to their stigmatization image that they are natural but the carbonated trade names ingestion among the kids and the grownups has reduced.


The I & A ; E Matrix secret plan depicts a scheme country of 2. 56 which indicates that the company should “hold and keep. Suggested schemes for this place on the I & A ; E Matrix are market incursion.

market development and merchandise development. This is non a big job for the company as they are in a really strong fiscal place to keep and keep the current market place. Elimination of the major jobs of Coca-Cola in term of production and selling will beef up the company internally and ease the acceptance of a broader scope of schemes.Coca-Cola must besides see to making merchandises for market niches in order to do it less vulnerable to competition ( Product Development ).

One of the menace in the market is client are altering health-consciousness attitude. the company have to develop merchandises that can fulfill the demand of client and that are perceived as being clearly superior to the competition.


The SPACE matrix shows a boundary line secret plan in the AGGRESSIVE quarter-circle. which correlates with the consequence from the IE matrix every bit good.

The secret plan guarantee the company’s strong fiscal place ( FS+5 ) with a great competitory advantage ( CA-1. 50 ) . The industry itself is strong ( IP+5. 2 ) but the Coca-Cola finds itself in an unfavorable environment ( CP-1.

80 ) . Due to these factors. it is best that Coca-Cola be aggressive and cautious at the same clip. The secret plan suggests that Coca-Cola demands to utilize their internal strengths to develop a market incursion and market development schemes to remain in front of the competition.

Some of the factors that afforded Coca-Cola with a competitory evaluation are their big per centum of market portion. consumer trueness to the trade name. and their high-quality merchandise offerings.

TOWS MATRIX: The TOWS Matrix Yielded Ten Strategies

Steps in the Construction of IFE Matrix

  1. In the first column, lists down all the strengths and weaknesses.

    IFE matrix should include 10 to 20 key internal factors.

  2. In the second column, assign weights to each factor ranging from 0.0 (not important to 1 (most important). Greater weights should be given to those internal factors which have grater influence on the organizational performance.

  3. The sum of all weights must equal 1.
  4. In the third column, rate each factor ranging from 1 to 4. Here, rating 1 represents major weakness, rating 2 shows minor weakness. Similarly, rating 3 indicates minor strength whereas rating 4 shows major strength.

    It means that weakness must receive 1 or 2 rating while strength must get 3 or 4 rating.

  5. In the fourth column, calculate weighted score by multiplying each factor’s score by its rating.
  6. Find the total weighted score by adding the weighted scores for each variable.


Coca-Cola should follow a strategic push which is aimed at positioning the company as a company that owns the advanced merchandises. Aside from that Coca-Cola should go a originative and memorable leader in the nutrient and drink industry. Coca-Cola should seek to at least maintain, but sooner increase its market portion.

Major accent should be placed on farther perforating foreign markets with accents on our selling which able to tap into the mind of the populace, particularly the adolescents ( Hoistein. 2014 ) . It should, every bit shortly as possible, come in the adolescents market by conveying the fantastic merchandises that could catch the teenager’s head. Coca-Cola must do its merchandises more attractive and tasty to carry through the customer’s outlook.


The undermentioned functional schemes should be carried out in the clip frames indicated. F/MG: Create new section to research and develop nutrition merchandises. Product life rhythms are shortening because of the people’s penchant and tendencies are altering quickly. Develop a “Market need” merchandises for consumers in order to vie with other rival.

For case, Coca-Cola must develop the right pricing and packaging. with little battalions. big battalions. or take-home battalions ( Hoistein.

2011 ) . This demand is pressing and paramount. Short RANGE. but will be an on-going demand.

F/MG: Develop endowment human capital in gross revenues squad. The organization’s construction must be redesigned to be more antiphonal to the field and unpredictable nature of the competitory environment. A gifted sale leaded is needed to take their squad in order to supply the best in town services for the clients. SHORT-MID-LONG RANGES.


Short RANGE-INITIATE IMMEDIATELY AND IN PRIORITY:Strategy # 2 and # 3 – Research and development to make advanced merchandises that appeal to the wellness witting consumers and Capitalize on their strong trade name name and spread out operations to include nutrient ( SO ) and ( WO ) : Coca-Cola should use more originative and advanced worker and derive several new attractive forces for the merchandises Hire more originative and advanced worker able to bring forth more new thoughts for Coca-Cola and Coca-Cola could increase the degree of satisfaction of clients. For case, Coca-Cola must understand the civilization of every state before enter into the international market in order to increase the competitory advantage. For illustration, Coca-Cola has announced programs to establish a new version of its best-selling soft drink with a 3rd less sugar and a 3rd fewer Calories in the market ( Smithers 2014 ) .New green tins and bottle labels will have alongside its scope of drinks from the iconic 330ml ruddy Sns with 139 Calories to Coke Light and Zero with no Calories ( Sayid.

2014 ) . It can assist Coca-Cola increase the market portion. Both schemes have the highest precedence.Strategy # 4 – Increase selling attempts for bottled drinks ( WO ) : Coca-Cola should make research on the bottled drinks Coca-Cola has to do the bottled drinks that the client feels attractive and purchase us.

Harmonizing to Fox ( 2014 ) Coca-Cola will personalise its bottled drinks with 250 of the nation’s most popular names among teens and millennian. Nowadays. most of the people likes fresh and new the merchandises. which able to catch their attending.

This tendency had brought an chance for Coca-Cola to bring forth more clients.


Strategy # 1 – Improve environment consciousness with community engagement ( SO ) : To accomplish environmental awareness Coca-Cola should form seminars for the populace in order to portion the information and cognition of the company. Aside from that. every bottled drink should publish the information about environmental consciousness to remind the client regards the crucial of it.


Strategy # 5 Increase advertisement to keep competitory border ( ST ) : Dressed ore on every individual advertizement able to keep a competitory border Coca-Cola should aim all audiences when advertise for its merchandises. If the advertizement able to catch the attendings of consumer it means the advertizement was a good advertizement. Zmuda ( 2014 ) said increase the effectivity of our selling investing by transforming our selling and commercial theoretical account to redeploy resources into more consumer facing selling investings to speed up growing.

It proves that a good selling will be after a good advertizement and it could keep the competitory advantage.Strategy # 6 – Acquire Golden Enterprises ( GLDC ) to assist diversify the merchandise line ( ST ) : Coca-Cola should diversify its merchandise line for market development and GLDC is required for this scheme. Coca-Cola must make research and development to accomplish this end. NOT RECOMMENDED:Strategy # 8 – Ad on encourages consumers to take a healthy life style ( WT ) : Coca-Cola should non publicize a healthy lifestyle advertizement.

merchandises of Coca-Cola non a drink that can imbibe for healthy intent. It seems to increase the hazard of failure if advertise healthy lifestyle advertizement.

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IFE, EFE, and Space Matrix of Coca-Cola. (2016, Dec 07). Retrieved from


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