Coca-Cola 2018

アブストラクト

In September 2018, a report from BNN Bloomberg stated that Coca-Cola was in talks with Aurora, a Canadian licensed cannabis producer, considering the development of cannabis-infused beverages (with a non-psychoactive ingredient, CBD). The case study takes on the role of Francisco Crespo, Chief Growth Officer. In 2018 he is in charge of Coca-Cola’s growth strategy and, in particular, of the brand diversification of Coca-Cola’s portfolio. He tries to assess if venturing into the cannabis-infused drink is a right strategic move for Coca-Cola. The Coca-Cola Company, albeit the leader in the soft drinks market, is too reliant on carbonated soft drinks, which account for 70% of its sales. With changing consumers' preferences – for health and wellness reasons but also boredom of the current drinks market offering, and governmental interventions – including taxation on sugary products, it needs to achieve the strategic transformation to adapt to the new global landscape. Sales of cannabinol-containing products in the U.S. are expected to increase 15-fold over the next five years, making it a promising diversification option for Coca-Cola. As the cannabis industry continues to evolve and legalization progresses, more and more companies are taking the plunge, but mainly are alcoholic drinks producers. Should Coca-Cola take such a bold move despite the legal incertitude and risks on its brand image of going into a controversial industry? The case aims to help students understand strategic moves taken by companies to adapt their value proposition in a changing business environment; apply strategic management frameworks to analyze the current industry (Porter 5 forces, 3Cs, SWOT); recognizing and mitigating risks in business-decision making and understanding the evolution of ethical standards. The case also gives students experience in making decisions regarding uncertain and ethically controversial but growing and dynamic markets.

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