Nandita Alwe ID 003063126 BADM638 – A02 Strategic Decision Making Ronald L.

Nandita Alwe ID 003063126
BADM638 – A02 Strategic Decision Making
Ronald L. Spicer
Summer 2022
University of Cumberlands
Bi – Term
05/11/2022
Exercise 3B: Develop a Competitive Profile Matrix for Coca-Cola
A Competitive Profile Matrix (CPM) orders the primary contenders of the firm with their solidarity and shortcomings connected with the essential place of the firm. In CPM, the Organization finds out about itself and its rivals by giving them evaluations and Weights to the key variables. The firm having a more weighted focus has a Strong Competitive spot than its rivals.
In this Competitive Profile Matrix of Coca-Cola, we have taken their two opponents Pepsi and Cadbury Schweppes. In this CPM, we have used the Weighted Rating System.
In the First Column, We have made each one out of the fundamental parts of The Sector.
In the Second Column, We have assigned the heaps to each factor from 0.0 (Not Important) to 1.0 (Very Important). The people who have more significant burdens have more command over affiliation execution.
After this, We have assessed each variable from 1 to 4. Rating 1 portrays the high weakness, Rating 2 depicts the lower deficiency and Rating 3 depicts the lower strength and Rating 4 depicts the higher strength.
Then, we have decided on the weighted score by expanding each variable score by its evaluation.
Get the Total Weighted Score by adding all of the weighted scores.
In the above CPM, Coca-Cola has the highest Weighted Score of 3.74 and rules its adversaries. Pepsi has the Second Highest Weighted Score with 3.42 concentrations and Cadbury Schweppes has the most un-weighted score of 2.80 core interests. Thus, it clearly communicates that Coca-Cola is strong in the Competition and moreover has the most grounded Market Position. (David, M. E. (2020))
A Competitive Profile Matrix CPM portrays the essential competitors of the firm with their fortitude and deficiency related to the fundamental circumstance of the firm. In CPM, the Organization looks into itself and its opponents by giving them examinations and Weights for the key components. The firm having a more weighted center has a Strong Competitive spot over its adversaries. Along these lines, The Competitor Profile Matrix of Coca Cola is according to the accompanying Competitive Price Matrix of Coca Cola.
Competitive Price Matrix of Coca Cola –
Coca Cola
Coca Cola
Pepsi
Pepsi
Cadbury Schweppes
Cadbury Schweppes
Key Factors
Weights
Rating
Weighted Points
Rating
Weighted Points
Rating
Weighted Points
Financial Wellness
0.08
4
0.32
3
0.24
3
0.24
Advertising
0.12
4
0.48
4
0.48
3
0.36
Share in the Market
0.12
4
0.48
3
0.36
2
0.24
Brand Image
0.10
4
0.40
4
0.40
3
0.30
Loyalty of Customer
0.10
3
0.30
3
0.30
2
0.20
Product Quality
0.12
4
0.48
4
0.48
4
0.48
Product Range
0.08
3
0.24
4
0.32
3
0.24
Distribution
0.10
4
0.40
3
0.30
3
0.30
Price Rivalry
0.08
3
0.24
3
0.24
3
0.24
Geographical Expansion
0.10
4
0.40
3
0.30
2
0.20
Total Score
1.00
3.74
3.42
2.80
Exercise 4A “Perform a Financial Ratio Analysis for Coca-Cola” Step 1
A summary of Coke’s financial ratios for the past four years is as follows :-
Strangely significant expenses added to Coke’s decrease in net benefit in 2017 notwithstanding its steady productivity over the previous four years. Although the gross margin diminished fairly over the most recent two years, the working edge and EBITA edge recommended that the firm had worked really hard on controlling costs and paying off its obligation.
Both the pay explanation edges and the asset report turnovers showed a comparative pattern in the organization’s monetary prosperity. The organization’s stock and receivables assortment might have been lazy in 2019, as seen by a minor ascent in the turnover rates. Coke requires research stock administration issues since its entire situation depends on a decent turnover of its items.
It was predictable with the pay explanations’ obligation proportions. There are signs that Coke’s ROE and ROI are vigorous and in a vertical direction. Less weight on its free incomes from credit reimbursement is conceivable assuming that it further develops its obligation to the executives. This finding was affirmed by the expansion in the free income proportion per share. (Macrotrends. (2020))
Generally, Coke’s monetary outcomes are reliably great, aside from a couple of sad years. Quite a while back, the association’s free income went positive, proposing that the organization had started to make cash inflows from activities, which ought to give its investors more prominent trust in the organization’s future.
REFERENCES :-
Macrotrends. (2020). CocaCola Financial Ratios for Analysis 2005-2019 | KO. https://www.macrotrends.net/stocks/charts/KO/cocacola/financial-ratios
David, F. R., David, F. R., & David, M. E. (2020). Strategic Management Concepts and Cases A Competitive Advantage Approach. Pearson.