The Coca-Cola Company’s Purpose and Strategy

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Coca Cola’s Purpose: Mission, Vision, Values, and Goals

Attributes of a Good/Quality Mission and Vision Statements

A mission statement is intended to inform employees, stakeholders, and customers about the vision targeted by a firm. The first attribute of a quality mission statement is simplicity. The mission should be short and detailed. The second aspect is that the statement should be informative. The mission should convey the goals and objectives of the firm. The statement should also be memorable to guide the actions and decisions of different employees. The fourth aspect is that the mission should be achievable. The fifth attribute is employee buy-in (Ketchen & Short, 2013). The employees should be involved and ready to offer meaningful ideas that can drive performance.

When it comes to a company’s vision statement, companies should focus on several attributes. The first quality of an effective vision statement is that it should be precise or short. Eight words (or less) would be appropriate for such a vision (Williams, 2008). The second quality is that it should be visible to more people. The third aspect is that the targeted individuals should be able to feel the vision. This means that the vision should generate positive emotion and excitement. The fourth attribute is that the vision should be understandable. This aspect will make it relevant to the business world. Finally, the vision should be spicy and exciting to the greatest number of people.

The Coca-Cola Company’s Mission Statement

The Coca-Cola Company’s success is attributable to its superior mission and vision statements. To begin with, the mission statement acts as the company’s guiding principle. The mission of the company is completed by three key statements. These statements include: “to refresh the world, to inspire moments of optimism and happiness, to create value, and make a difference” (Our company, 2017, para. 2). These statements dictate the framework and model of the company to realize its business goals.

As indicated earlier, the first attribute of a quality mission statement is that it should be simple. The firm’s mission is simple, short, and detailed. The second aspect revolves around the issue of information. The firm’s mission conveys the targeted goals and objectives to every person across the world. A quality mission statement should also be memorable. This is the case with the Coca-Cola Company’s mission (Our company, 2017).

The mission can be remembered and recalled by the greatest number of employees and clients. The fourth aspect is that a quality mission should be achievable. The Coca-Cola Company’s mission statement outlines three unique goals that have been easily realized by the company. The fifth attribute of a powerful mission is the ability to feature employee buy-in (Bunutu-Gomez, 2012). The workers at the company are always encouraged to present meaningful ideas to drive performance.

This analysis shows clearly that the mission statement can be described as a good one. This is the case because it meets the requirements of the 5 criteria indicated above. The employees are always encouraged to support the mission and focus on the targeted goals (Our company, 2017). The quality of the company’s mission is what has made it possible for the company to realize its goals.

Vision Statement

The Coca-Cola Company has been focusing on the best practices to achieve quality and sustainable business growth. This goal is usually guided by the firm’s vision. The vision is characterized by six unique elements. The first one is people and seeks to promote the best environment that inspires every employee (Bunutu-Gomez, 2012). The second one is a portfolio whereby quality brands are produced to meet the needs of different consumers.

The concept of partners is the third one and focuses on the best approach to create positive relationships with business players. The fourth one is the planet. This attribute guides the firm to engage in the best practices that can result in sustainable communities. The fifth one is profit. The firm seeks to maximize returns to its shareholders. Finally, productivity is what supports the firm’s model in an attempt to remain profitable.

Using the criteria presented above, it can be agreed that the firm has a good vision statement. The vision is summarized in such a way that it encompasses six keywords. This approach makes it easier for targeted stakeholders to remember the words and interpret them positively. The vision is also easy to understand. The vision focuses on unique issues such as customer value, corporate social responsibility, and shareholder growth.

The targeted audience believes that the vision is visible. There is also something exciting about the vision (Our company, 2017). For instance, the customer and employee will realize that the vision focuses on specific attributes that give the firm direction and purpose. This direction supports both the firm’s personnel. The corporation should, therefore, continue using the vision statement in an attempt to realize its business goals. More customers will support the firm’s business model and eventually maximize profitability.

The Coca-Cola Company’s Values Statement

Value Statement

Values are powerful tools or attributes that describe how individuals, communities, corporations, and governments behave. This kind of behavior should be sensitive to the welfare, needs, and goals of the other stakeholders involved. This fact explains why the corporation has come up with a powerful values statement. At the firm, every business activity is defined or guided by several values. The first aspect is that of leadership.

The company hires courageous managers and individuals who have what it takes to deliver goals (Our company, 2017). Collaboration is taken seriously whereby employees are encouraged to focus on the targeted goals. Integrity is what makes it easier for the Coca-Cola Company to be real. This means that business actions are completed using the concept of integrity. The managers at the company identify the best approaches that can ensure the targeted goals are realized promptly.

Accountability is a unique value whereby every player in the firm is required to be responsible. This attribute guides customers, managers, and employees to promote the best practices that can result in sustainability. The concept of passion empowers more people to be committed in mind and heart (Our company, 2017). Diversity is a meaningful value whereby individuals from every culture, gender, and faith are included in the workforce. The concept is also used to ensure every customer is served without any form of discrimination. Finally, quality is taken seriously to define every activity and product associated with The Coca-Cola Company.

Analysis of the Value Statement

The above description shows clearly that the company has a quality values statement. The values statement is subdivided into seven attributes that focus on the emerging needs of every stakeholder. For instance, the values statement guides the employees and managers to embrace the idea of equality. This approach is what guides the firm to produce quality products that can satisfy the needs of the targeted customers (Ketchen & Short, 2013). Accountability and integrity are combined to promote a powerful business model that resonates with the above mission and vision statements.

The Coca-Cola Company is always on the frontline to promote diversity and passion. This practice brings on board many employees from diverse backgrounds. The process improves the level of performance at the firm. Collaboration is encouraged to ensure more business partners add value to the company’s performance (Bunutu-Gomez, 2012). This statement is something that has continued to support the company’s performance.

Sense of Ethics

The Coca-Cola Company’s values statement is a guiding principle that empowers different employees and business partners to promote the concept of ethics. At the firm, the values statement is what dictates how talent is recruited and hired. The company hires more people from different backgrounds. This approach explains why more disabled persons, women, young people, and elderly individuals work at the company. The issue of sustainability is taken seriously whereby evidence-based practices are embraced to safeguard the natural environment. The company has been improving it’s waste disposal and water management practices (Bunutu-Gomez, 2012). These measures have supported the firm’s corporate social responsibility (CSR) and a sense of ethics.

The company has been supporting several initiatives such as planting trees and supporting various environmentally friendly programs. For instance, the firm has been embracing the concept of sustainability throughout its supply chain processes. These attributes, therefore, shows clearly that the firm has been using its values to improve its ethical performance. This practice will continue to support the firm’s business model.

The inclusion of more people from different backgrounds and cultural groups will make the Coca-Cola Company a leading player in the carbonated beverage industry. The firm’s presence in different parts of the world is driven by its values statement (Bunutu-Gomez, 2012). The business model has made it possible for the company to employ more workers from different backgrounds. This fact explains why the Coca-Cola Company tops the list among the companies associated with diverse workforces. The business model has continued to support the welfare of more customers by providing healthy drinks.

SWOT Analysis: External Environment

The Coca-Cola Company operates in a complex business environment characterized by several competitors and partners. The firm implements powerful strategies and models to remain profitable (Our company, 2017). The analysis below gives a detailed description of the company’s external business environment.

Porter’s Five Forces

The threat of New Entrants

The entry of new players or competitors in the carbonated beverage industry is moderate. This threat is medium because new companies are promising to provide fresh juice drinks and sugar-free beverages (Our company, 2017). Although the Coca-Cola Company commands a huge share in the sector, the emergence of different competitors has led to customer loss. However, the strength of the firm’s brand has discouraged its customers from purchasing new beverages.

The Threat of Substitutes

The pressure associated with this factor is high. The beverage industry has been characterized by a wide range of carbonated drinks, fresh fruit beverages, and energy drinks” (Our company, 2017). Experts in the industry currently believe that Coke’s flavor is no longer unique. More often than not, it is usually impossible for many people to tell the difference between a Pepsi beverage and a Coke (Hobbs, 2016).

Bargaining Power of Buyers

It is agreeable that many customers do not have increased pressure on the company’s business model (Our company, 2017). The company has used powerful strategies to promote its brand name. This achievement makes it possible for more customers to use the company’s products. Brand loyalty remains extremely high in different parts of the world.

Bargaining Power of Suppliers

The Coca-Cola Company has a network of suppliers in different parts of the United States. The ingredients required by the firm include sweetener, phosphoric acid, concentrates, caffeine, and water (Our company, 2017). The company discourages the use of differentiated suppliers. The company is “the largest customer of each of each supplier in the supply chain” (Bunutu-Gomez, 2012, p. 163). This analysis explains why the suppliers’ power is quite low.

Industry Rivalry

Analysts in this industry show clearly that the level of industry rivalry is extremely high. The main competitor affecting the Coca-Cola Company’s model is Pepsi. The firm markets a wide range of beverages under its reputable brand (Our company, 2017). The two companies use competitive approaches to ensure the needs of their respective customers are met. The industry is also characterized by different competitors such as Starbucks Corporation.

Function Approach: The Coca-Cola Company’s Strengths and Weaknesses


Financial ratios can be used to analyze the performance of a business organization. The first useful financial tool that can be used to analyze the company’s profitability is the net profit margin. This profit margin is usually aimed at comparing a firm’s net income to its total revenue (Our company, 2017). In 2015, the firm’s gross profit margin stood at 60.53 percent and 60.67 % in 2016. The net profit margin was 15.6 percent in 2016 (Our company, 2017).

The second financial ratio that can be used to analyze the firm’s performance is inventory turnover. In the first quarter of the 2016-2017 year, the firm’s inventory was around 2.78 billion US dollars. The inventory turnover during the same period was around 1.26 (Our company, 2017). This is a clear indication that the firm has been performing positively financially. Another financial ratio is the return on assets (ROA). The firm’s ROA has averaged around 5.3 percent (Hobbs, 2016). This index shows clearly that the company has been performing positively.


The Coca-Cola Company has designed a powerful strategy that is informed by the changing needs of the targeted customers. The firm hires competent employees who can support the marketing process. The collaboration with different restaurants and retailers is a powerful model that has made it easier for the firm to record positive sales volumes. The marketing approach is customized depending on the needs of the targeted customers. Recently, the firm launched a “powerful One Brand marketing strategy” (Hobbs, 2016, para. 1). The strategy has been designed in such a way that it brings together its four major variants. These include Coca-Cola Life, Coca-Cola Zero, Coke, and Coca-Cola (Our company, 2017).

Human Resources

At the firm, human resource management (HRM) is guided by the existing values statement. Leaders and managers use the best strategies to hire individuals from diverse backgrounds. The employees are then empowered and equipped with the right resources. Conflicts are resolved promptly (Hobbs, 2016). The employees are allowed to form appropriate teams that can take up various functions such as marketing, strategic planning, and operations.

Operations Management

The firm’s operations management is characterized by several internal processes and strategies that define its model. The first element in manufacturing. The company has bottling facilities and production systems in different parts of the world. Outsourcing is done to minimize costs and improve performance. Total quality management (TQM) is embraced to ensure the products are guided by the demands of the consumers (Ketchen & Short, 2013). The model makes it easier for the firm to improve its processes and eventually promote product quality and safety (Bunutu-Gomez, 2012). Inventory management is done using advanced software programs to boost performance.


The Coca-Cola Company embraces the use of modern technology to support business performance. Modern technologies are used to improve communication and support decision-making. Inventory is managed used advanced software (Hobbs, 2016). Logistical processes and production systems have become automated. The use of technology continues to support the company’s business model.


Supply chain management is one of the strategic strengths associated with the company. The firm follows a powerful supply chain approach to ensure supplies are obtained promptly (Hobbs, 2016). The firm has set up several bottling plants in different parts of the world. The bottlers are then required to distribute the products to different restaurants and retail stores.

SWOT Analysis Table


  • A strong brand name
  • It is the largest carbonated beverage firm
  • Powerful marketing strategies
  • Effective supply chain and operations
  • Quality mission and vision statements


  • The heavy reliance on carbonated drinks
  • The firm has attracted negative publicity
  • The firm is not diversified


  • Beverage consumption is on the rise
  • Production costs have declined
  • Technology is making it easier for the Coca-Cola Company to achieve its business goals


  • Increased rivalry
  • The emergence of local brands globally
  • Increasing the bargaining power of customers

Concluding Remarks

The above discussion shows conclusively that the Coca-Cola Company is a leading player in the beverage industry. The firm has more strengths than weaknesses. This is the case because the organization has competent managers, skilled workers, sustainable operations, and powerful supply chain practices (Bunutu-Gomez, 2012). The company has managed to develop one of the most revered brands across the globe. It has several superior products that fulfill the needs of targeted customers. Its weaknesses include reliance on carbonated drinks and a lack of diversification.

The firm also stands a chance to benefit from the wide range of opportunities associated with the industry. For instance, the current wave of technology is making it easier for the company to realize its goals. The cost of production in the sector has reduced significantly. This development will support the company’s goals. The increasing level of diversity will transform the corporation’s performance (Hobbs, 2016). The increased level of consumption will eventually make the company successful. However, there are specific threats that affect the firm such as rivalry and the emergence of new brands.

Finally, the Coca-Cola Company has several sustainable competitive advantages that can support its future performance. The firm is characterized by a superior brand name that supports its competitive edge. The existing supply chain processes are unrivaled. The company’s marketing strategies are usually redesigned depending on the level of competition (Ketchen & Short, 2013). The firm’s sustainable business model supports its goals. In conclusion, the firm can tackle the current weaknesses and threats to develop new competitive advantages.


Bunutu-Gomez, M. (2012). Coca-Cola: International business strategy for globalization. The Business & Management Review, 3(1), 155-169. Web.

Hobbs, T. (2016). Coca-Cola takes ‘One Brand’ marketing strategy global with ‘Taste the Feeling’ campaign. Marketing Week. Web.

Ketchen, D., & Short, J. (2013). Mastering strategic management. New York, NY: Flat World Knowledge.

Our company: Mission, vision, & values. (2017). Web.

Williams, L. (2008). The mission statement: A corporate reporting tool with a past, present, and future. Journal of Business Communication, 45(2), 94-119. Web.

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