Coca Cola Swot

578 Words3 Pages
MEANING AND OBJECTIVES OF INTERNAL ANALYSIS (SWOT ANALYSIS) Swot Analysis is a strategic planning tool used to evaluate the strengths (S), weaknesses (W), opportunities (O), and threats (T) involved a business venture. It involves specifying the objective of the business venture and identifying the internal and external environmental factors that are expected to help or hinder the achievement of that objective. After a business clearly identifies an objective that it wants to achieve, SWOT analysis involves: 1. examining the strengths and weaknesses of the business (internal factors); and 2. Considering the opportunities presented and threats posed by business conditions, for example, the strength of the competition (external factors). By identifying its strengths, a company will be better able to think of strategies to take advantage of new opportunities. By identifying current weaknesses and threats, a company will be able to identify changes that need to be made to improve and protect the value of its current operations. Criticisms SWOT analysis has two clear weaknesses. Firstly, using SWOT may tend to persuade companies to write lists of Pros and Cons, rather than think about what needs to be done to achieve objectives. Secondly, there is the risk that the resulting lists will be used uncritically and without clear prioritization. For example, weak opportunities may appear to balance strong threats. Case example: Coca Cola ltd Let’s use SWOT analysis to consider the strategy of a hypothetical prominent soft drinks manufacturer called Coca-Cola. Coke is currently the market leader in the manufacture and sale of sugary carbonated drinks and has a strong brand image. Sugary carbonated drinks are currently an extremely profitable line of business. The company’s goal is to develop strategies to achieve sustained profit growth into the future.
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