Internal Analysis and Swot Analysis
Trident University International
Troy Leiker
MGT599
Module 3 Case: Internal Analysis and SWOT Analysis
Dr. Kenneth McGee
Introduction Strategic planners analyze Strengths, Weaknesses, Opportunities, and Threats (SWOT) to determine internal and external threats to a company. “The SWOT analysis is a business tool available in the tool box of any small business owner” (Zahorsky, 2009). An internal analysis specifically covers the Strengths and Weaknesses portion of the SWOT analysis. The intent of this paper is to perform an internal Resource Based View (RBV) analysis on The Coca-Cola Company. The paper will address tangible resources, intangible resources, and distinctive capabilities; ultimately tying them to the strengths and weaknesses of the company.
Tangible Resources
1. Physical Resources One of Coca-Colas biggest strengths is their ability locate themselves all over the world. Coca-Cola operates in more than 200 countries worldwide (coca-cola.com, 2011). Infrastructure, a support activity as outlined in the background materials of this module, plays a key role in enabling Coca-Cola to conduct primary activities such as manufacturing (production). As stated in the previous case assignment, the ability for Coca-Cola to sell in external market is one of the reasons Coca-Cola has remained profitable in economic downturn. This is a case where internal strengths complement external opportunities. On the flip side of the coin, worldwide locations have consequences. One geographical natural disaster, such as the earthquake that occurred in Japan, could put the pinch on Coca-Cola’s operations. Again, similar to the example where the strengths and opportunities coincide, this could be considered as an internal “physical resource” weakness and an external “supplier” threat.
2. Financial Resources Research analyst Wendy Nicholson state’s “Coca-Cola's revenue, volume and net income in North America have all grown, she said,
Troy Leiker
MGT599
Module 3 Case: Internal Analysis and SWOT Analysis
Dr. Kenneth McGee
Introduction Strategic planners analyze Strengths, Weaknesses, Opportunities, and Threats (SWOT) to determine internal and external threats to a company. “The SWOT analysis is a business tool available in the tool box of any small business owner” (Zahorsky, 2009). An internal analysis specifically covers the Strengths and Weaknesses portion of the SWOT analysis. The intent of this paper is to perform an internal Resource Based View (RBV) analysis on The Coca-Cola Company. The paper will address tangible resources, intangible resources, and distinctive capabilities; ultimately tying them to the strengths and weaknesses of the company.
Tangible Resources
1. Physical Resources One of Coca-Colas biggest strengths is their ability locate themselves all over the world. Coca-Cola operates in more than 200 countries worldwide (coca-cola.com, 2011). Infrastructure, a support activity as outlined in the background materials of this module, plays a key role in enabling Coca-Cola to conduct primary activities such as manufacturing (production). As stated in the previous case assignment, the ability for Coca-Cola to sell in external market is one of the reasons Coca-Cola has remained profitable in economic downturn. This is a case where internal strengths complement external opportunities. On the flip side of the coin, worldwide locations have consequences. One geographical natural disaster, such as the earthquake that occurred in Japan, could put the pinch on Coca-Cola’s operations. Again, similar to the example where the strengths and opportunities coincide, this could be considered as an internal “physical resource” weakness and an external “supplier” threat.
2. Financial Resources Research analyst Wendy Nicholson state’s “Coca-Cola's revenue, volume and net income in North America have all grown, she said,
References: Coca-Cola.com (2011). Retrieved December 12, 2011 from: www.coca-cola.com Henry, A. (2007). The Internal Environment: A Resource Based View of Strategy. Understanding Strategic Management. Oxford University Press. Retrieved from http://www.oup.com/uk/orc/bin/9780199288304/henry_ch05.pdf Kay, J. (1993). Foundations of Corporate Success. Oxford University Press. Retrieved December 12, 2011 from: http://www.oup.com/uk/orc/bin/9780199288304/henry_ch05.pdf Sector snap: Coca-Cola and PepsiCo. Retrieved on December 5, 2011 from: http://finance.yahoo.com/news/Sector-snap-CocaCola-and-apf-3819667889.html?x=0&.v=1 Zahorsky, D. (2009). A business owner 's secret weapon: SWOT analysis. Retrieved on December 12, 2011 from: http://sbinformation.about.com/cs/bestpractices/a/swot.htm