In yesterday’s post, Finally, A Solution Provider Gets the Big Picture, And It Isn’t AI, I talked about sending Target’s “business case overview over the weekend to select solution providers.” The business case to which I am referring is the top five “business” challenges the retailer faces in 2024.
Today, I am sharing Coca-Cola’s business challenges in 2024 and inviting select solution providers to demonstrate their understanding of the food and beverage industry by addressing the list of challenges. In short, how can they contribute to the company’s “bigger picture or more pressing” objectives beyond the procurement department?
A Little Homework
“Very good, Jon. Business needs vs tech needs.” – Tom Craig (June 12th, 2024 Post)
Here are a few issues that Coke is and will be facing – how can you as a solution provider help them address these issues:
Coca-Cola reported organic revenue growth of 11% last quarter.
Price increases have primarily been responsible for that growth.
But volume growth has slowed, which could continue if a recession hits.
The soft drink company’s resiliency could face a big test next year.
Coca-Cola(KO -0.06%) and other top consumer food brands have been able to perform well amid inflation as their pricing power has allowed them to simply raise prices and continue to generate revenue growth. But after multiple price hikes, that can start to have a significant effect on consumers.
Although the business is still growing, Coca-Cola could be facing tougher times ahead, and that could be bad news for the stock. Let’s evaluate.
Volumes have been slowing down
In Coca-Cola’s most recent quarterly earnings report, for the period ended Sept. 29, the company posted net revenue growth of 8%, with its top line rising to $12 billion. Organically, and without factoring in the impact of foreign exchange and acquisitions or divestitures, revenue was up 11%. Price increases and sales mix were responsible for the vast majority (9 percentage points) of that growth. Sales volume, however, which Coca-Cola refers to as concentrate sales, rose by only 2%.
Risk of volatile and challenging macro-economic conditions caused by key global events including conflict, inflation, and foreign currency fluctuations.
Deterioration of financial conditions.
Reduced consumption spending.
Changes in consumer spending patterns.
Weaknesses
Like any company, Coca-Cola also has some weaknesses – I have highlighted the areas where I believe that a solution provider can have either a direct or indirect impact:
Dependency on bottlers: Coca-Cola produces concentrates, syrups, and powders for its drinks, but it does not produce the finished bottled or canned products itself. Instead, Coca-Cola relies on independent bottlers to manufacture, package, distribute, and sell its products in local markets around the world.
Dependence on carbonated drinks: Coca-Cola’s success has been largely tied to its carbonated soft drink products. While the company has diversified its product portfolio in recent years, carbonated drinks still make up a significant portion of its sales. This dependence makes the company vulnerable to changes in consumer preferences for healthier beverages.
Health concerns: Coca-Cola has faced criticism for its products’ high sugar content and calorie count. Health concerns related to the consumption of sugary drinks have led to a decline in sales of carbonated beverages in some markets.
Environmental impact: The production and distribution of Coca-Cola products have a significant environmental impact. The company has been criticized for its use of plastic packaging and its contribution to pollution and climate change.
Legal challenges: The Coca-Cola Company has faced various legal challenges related to marketing practices, product labeling, and workplace discrimination over the years.
Competition: Coca-Cola faces intense competition in the beverage industry from other large multinational companies as well as smaller regional brands. This competition can put pressure on the company’s market share and profitability.
These weaknesses pose challenges for Coca-Cola and require the company to adapt to changing market conditions and consumer preferences.
NOTE: There is even a PESTLE analysis that is worth a look.
I am going to open this up to all solution providers. You have the above background information. and the six identified areas of weakness. How do you address them?
Procurement Insights
Coca-Cola’s Real Features, Functions, and Benefits Concerns
Posted on June 12, 2024
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How about a solutions map of practitioners?
In yesterday’s post, Finally, A Solution Provider Gets the Big Picture, And It Isn’t AI, I talked about sending Target’s “business case overview over the weekend to select solution providers.” The business case to which I am referring is the top five “business” challenges the retailer faces in 2024.
Today, I am sharing Coca-Cola’s business challenges in 2024 and inviting select solution providers to demonstrate their understanding of the food and beverage industry by addressing the list of challenges. In short, how can they contribute to the company’s “bigger picture or more pressing” objectives beyond the procurement department?
A Little Homework
“Very good, Jon. Business needs vs tech needs.” – Tom Craig (June 12th, 2024 Post)
Here are a few issues that Coke is and will be facing – how can you as a solution provider help them address these issues:
Ref Link – https://www.fool.com/investing/2023/11/03/why-coca-cola-stock-could-struggle-in-2024/
Why Coca-Cola Stock Could Struggle in 2024
KEY POINTS
The soft drink company’s resiliency could face a big test next year.
Coca-Cola (KO -0.06%) and other top consumer food brands have been able to perform well amid inflation as their pricing power has allowed them to simply raise prices and continue to generate revenue growth. But after multiple price hikes, that can start to have a significant effect on consumers.
Although the business is still growing, Coca-Cola could be facing tougher times ahead, and that could be bad news for the stock. Let’s evaluate.
Volumes have been slowing down
In Coca-Cola’s most recent quarterly earnings report, for the period ended Sept. 29, the company posted net revenue growth of 8%, with its top line rising to $12 billion. Organically, and without factoring in the impact of foreign exchange and acquisitions or divestitures, revenue was up 11%. Price increases and sales mix were responsible for the vast majority (9 percentage points) of that growth. Sales volume, however, which Coca-Cola refers to as concentrate sales, rose by only 2%.
Also, check out the following link: https://thestrategystory.com/blog/coca-cola-swot-analysis/
Risk of volatile and challenging macro-economic conditions caused by key global events including conflict, inflation, and foreign currency fluctuations.
Weaknesses
Like any company, Coca-Cola also has some weaknesses – I have highlighted the areas where I believe that a solution provider can have either a direct or indirect impact:
These weaknesses pose challenges for Coca-Cola and require the company to adapt to changing market conditions and consumer preferences.
NOTE: There is even a PESTLE analysis that is worth a look.
I am going to open this up to all solution providers. You have the above background information. and the six identified areas of weakness. How do you address them?
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