Cola Wars Continue: Coke and Pepsi in 2010
Instructions - Read the case study and complete a full analysis by answering the questions below. Be sure to conduct a situational analysis by looking at both the external and internal environments when formulating your answers. Also consider other management disciplines and impacts (i.e. Human Resource Management, Marketing, and Finance). Some key considerations: 1. This is not a summary of the Case. Students are expected to apply relevant management principles, critical and analytical thinking when completing the case study 2. Output must be thorough, grammatically accurate and well written using APA format. 3. Case studies will be used for future classes and therefore students are expected to take exceptional care of the document: do not write or spill liquids/food on the document. 4. All Cola Wars Cases must be returned on March 2. Grades will be withheld if cases are not returned. 5. There is 10% penalty for late submission.
Note: All responses will be used as part of the college's assessment process for the masters' program.
Case Questions
1. HR Analysis a) As Coke and Pepsi move forward from this point, are there any important human resource issues that should be considered as part of their corporate and business strategies? Explain answer.
2. Strategy Analysis a) Discuss Porter's 5 forces in this industry with respect to the profitability of bottlers. What are the keys? b) What are the likely challenges to the stability of the industry structure in the coming decades? c) What are the potential drivers of structural change? Consider external factors
3. Financial Analysis a) For companies to be (or continue to be) profitable, they have to use different strategies such as improving existing products, producing new products, entering new markets, and being able to adopt to changes in the market and/or consumer behavior. How did Coke and Pepsi use these strategies? Make sure to provide examples to each strategy.
4. Marketing Analysis a) How do the soft drink companies get away with charging as much as $2-$3 per serving for a product when the "healthy" (tap water) is often free?