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Coca Cola Company Case Analysis
Strategy ecommendation in Business
The Coca Cola Company (Case Analysis)
The Coca cola Corporation is among the most successful and well-known company in the globe. Its reputable existence is analyzed with its performance and efficient management. The company has dominated and controlled the beverage industry for many years, and has often proven its abilities in innovation, creativity and consumer satisfaction. The company has also set extremely high standards in terms of competition. In fact, its trademark is recognized with over 90% of the entire global population. Many factors contribute to the success of the organization, but also there are many hindrances. Opportunities and external threats are also evident in its positional market. After critical analysis, the following report was acquired, for the purpose of planning the company's future strategies.
Coca Cola's present strategies
The company has implemented a well-designed technological framework, to improve…… [Read More]
The Coca Cola Company is well-known for its commitment to diversity. The Company has a workforce where almost half the employees are women. However, their representation on the senior management levels is only 26%. The company also recruits racial minorities and members from the LGBT community. The company has institutional mechanisms to ensure that workforce diversity is respected and appreciated throughout the organization. Senior managers demonstrate their commitment to diversity by heading the Business esource Groups for specific minorities. This supports the theory that senior management should demonstrate commitment to implementing core values (Davidson 2004, p. 286). The Coca Cola Company also pursues diversity in its marketing campaigns to cater to the diverse communities in which it sells its products. The company has also expanded its supplier network to include firms owned and managed by minorities and women. The company also has plans to increase the number of…… [Read More]
Coca Cola Company Ratios
The Coca Cola Company had an operating leverage of 68.6% (2011 Annual Report, 2011). Return on Investment was 36.5%. The economic value added ratio was 8,935.52. The profit margin on sales was 18.6%.
The return on investment ratio is used to evaluate the efficiency of a single investment or a group of investments (Return on Investment - ROI). There is not considered a right and wrong calculation for return on investment because the definitions of the return and costs items vary from one person to another. A financial analyst may figure the ratio using certain return and cost items, where a manager may figure the return on investment using entirely different return and cost items.
The operating leverage ratio reflects the extent a change in sales affects earnings (Operating Leverage Ratio). For a…… [Read More]
Pre-Analysis of the Coca Cola Company
A good resource to find an industry's North American Industry Classification System (NAICS) code is the NAICS association website http://www.naics.com/search.htm.
Porter's five forces
Two resources to look at supplier power are: To this day, Coca-Cola still imports coca leaves which are used to manufacture cocaine in the United States, accessible at http://www.naturalnews.com/032658_Coca-Cola_cocaine.html; and SugarOnline.com, http://www.sugaronline.com/. The first resource discusses how Coca-Cola is the only company that is legally allowed to import coca leaves and manufacture cocaine in the United States. The second resource offers information about the worldwide availability of sugar. Because the coca leaves are the product that cannot be replaced with corn syrup, the first article is more helpful.
Two sites that can help explain buyer power are: In Coke- Pepsi rivalry, both sides win accessible at: http://www.thestreet.com/story/10490193/1/in-coke-pepsi-rivalry-both-sides-win.html, and Coca Cola's own information page titled Our company,…… [Read More]
Information System Changes
The Coca Cola Company information system management
Implementation of an upgraded portal
Training of staff
This paper is a proposal for an implementation of a change management of a new information system in a business. The paper discusses the steps that ought to be followed when executing an implementation strategy for a new information system in a business organization. The business organization in question is the Coca Cola Company. The areas covered include the role of an information system in a business, the successful integration of the new system into the company's operations, and the way members of staff can embrace the new system for the sake of the company's progress.
The Coca Cola Company information system management
Coca Cola Company is the world's leading beverage company. The company just like the other global companies has adopted…… [Read More]
61, as opposed to only 28.90, the industry average (euters, 2009); this means that the company uses much more debt than equity to finance its operations and that debt reimbursement might constitute for priority in profit distribution
All the above indicate that the largest beverage maker in the world is not as successful as initially believed. Yet, an estimation of the equity futures cannot occur without a look at the company's share. Its value today (September 2, 2009) is of $49.80. In the near past, the KO stock has not suffered major modifications. Yet, its more distant past evolution has been fluctuating. The peak was registered in 2006, when the Coca Cola share was sold for an estimated value of $65; the lowest amount of money paid for it was slightly lower than $40 and it was reached in 2004. The chart below reveals this evolution:
Source: MNS Money, 2009…… [Read More]
Coca Cola Company
The organization of choice for this paper is the Coca-Cola Company that is operating in beverage industry for more than a century principally manufacturing, distributing, and marketing nonalcoholic beverages globally. It mainly offers sparkling and still beverages. The Coca-Cola Company is a USA-based company, headquartered in Atlanta, Georgia and founded in 1886.
Amongst the market leaders in the beverage industry, Coca-Cola Company fights to remain on the top. Keeping up its reputation and serving the masses throughout the globe since the past many decades the company continuously adapts its product and process in order to satisfy the customers to the maximum possible extent. This research paper analyses the organization using the PESTEL analysis and SWOT along with an analysis of the information needs of the organization and how a customer relation management system (CM) can be integrated into this giant beverage firm that has ruled the beverage…… [Read More]
Coca-Cola Company ("Coca-Cola," "Coke") is a U.S.-based manufacturer and distributor of non-alcoholic beverage. The company recorded revenue of $46.5 billion in FY2011, and earned $8.5 billion in net income. According to the company's website, it sells products in over 200 countries, given the company near-global scope. This also ensures that Coca-Cola has substantial exposure to foreign currencies. This report will discuss a number of international financial aspects to Coca-Cola's business, including foreign currency risk and capital structure.
As Coca-Cola operates in just about every country in the world, there are a very few options for international expansion. The company's Mexican subsidiary is already exporting to Cuba, circumventing Helms-Burton. However, there remains one country where one cannot currently buy a Coca-Cola product, and that is the Democratic People's Republic of Korea (DPRK), or North Korea (Hebblethwaite, 2012). There is increasing wealth in that country, however, as the result of Chinese investment.…… [Read More]
ith a small number of companies competing for a market that in many cases (North America, for example) is subject to slow growth, the competition can be characterized as intense. Thus, Coca-Cola's marketing message must also take into account the moves that its competitors are making. Coca-Cola not only must respond to shifts in the competitive environment but as industry leader must protect its position by making proactive moves to establish competitive shifts, forcing the competition to respond.
The Coca-Cola Company, with its broad product range and ubiquitous market presence broadly targets the entire world. Coca-Cola has only loose differentiation in its target markets because of this. hile the company literally believes it should sell to every single consumer, some segments are more attractive than others. The soft drink business in most markets is subject to fairly strong brand loyalty. Therefore, the company often targets its marketing efforts…… [Read More]
4. Decision and Defense against Weaknesses
The Coca-Cola brand is already a strong one, but the company's involvement in unethical behaviors has negatively affected it. In order to decide upon the most favourable courses of action to be implemented in the direction of brand strengthening, one has to critically analyze the proposed strategies:
restatement of the company's traditional brand values will offer an increased perception of the brand, but is likely to further generate the image of a ruthless competitor
Communications with customers will attract the sympathy of the audience, but require increased resource consumption and the results may be unsustainable
The internal investigations of the ethical division could delay the process and reduce their operational efficiency - however, this risk would not materialize if the proper measures are taken
An increased focus on people would also generate increased expenditures and pose risks on operational efficiency, but it would generate…… [Read More]
Some examples of how they use these things can be seen in their use of sports in their marketing mix. They sponsor NASCA, produce innovative Superbowl commercials and were a major corporate sponsor at the Beijing Olympics last summer. They feel that the more they can connect to their customers through these activities they more comfortable those consumers become with their products. Making these kind of connects is a key to the way the Coca-
Cola Company chooses to do business. It is this type of thinking that allows them to be the leading company that they are.
The Coca-Cola Company is a major player in the beverage industry around the world. They are known as the global leader.
They have been around a long time and are in no danger of going anywhere anytime soon. They are a force to be reckoned with and should be watched very closely…… [Read More]
Typically, buyers have the ability to switch their tastes from one soft drink brand to the other.
Barrier to Entry: It is very difficult to enter the industry due to several factors:
First, a new firm will need to implement economic of scale to enjoy cost reduction and compete favourably within the industry. To establish economic of scale, a new firm will require huge capital investment ranging from several millions of dollar. Huge capital needed to enter the industry serves as a barrier for a new firm. More importantly, a new firm will need to overcome the tremendous marketing muscle to establish market presence within the industry, and entering into the industry requires substantial capital. Moreover, government regulation is another factor making entry into the industry very difficult. egulations such as Soft Drink Inter-brand Competition Act are making the new entry nearly impossible in the U.S. market.
Assessment of the…… [Read More]
Coca-Cola Company. Specifically it will discuss and analyze the case study, including relevant facts and recommendations regarding the study. Coca-Cola is one of the most well-known and famous brands in the world, and it has been in existence since the late 1800s. This case study indicated that it faced several ethical issues in the last decade that eroded its credibility and created strife inside and outside the company.
The facts of Coca-Cola are legendary. One writer notes, "Both the Coca-Cola brand and company took an early lead in the soft-drink industry, for the brand achieved national distribution early on and the company has consistently dominated the industry" (Wolburg, 2003). Coca-Cola is one of the world's leading soft drink manufacturers, and they sell their product in at least 200 countries worldwide. They were the leading soft drink company for decades, and their main rival is PepsiCo, who they have been…… [Read More]
In this paper, Coca-Cola Company which is the biggest beverage company in the world has been analysed. A comprehensive strategic analysis to ascertain its competitive advantage has been conducted using the following analytical tools: SWOT analysis and Porter’s generic strategies. Out of the four generic strategies, it has been revealed that Coca-Cola Company follows the differentiation strategy.
By integrating the differentiation strategy with the strengths, weaknesses, opportunities, and threats of the organization key insights were noted. The strengths pinpointed and selected in the SWOT analysis comprise of distribution system, company valuation, and brand equity. Coca-Cola Company’s system of distribution is unique and inimitable. Second, its high market value facilitates sustaining differentiation and brand equity aids in ensuring its different products are purchased across the world. The three items selected in the weaknesses area in the SWOT analysis include the intense market rivalry with Pepsi, lack of a healthy…… [Read More]
CRM strategy should analyze customer segments and make the appropriate determinations on whether each segment is profitable for their business and how to affect the purchase patterns of the segment so the business can experience the profitable attributes of CRM; loyalty purchasing, cross selling, up selling, etc. Direct Mail fits perfectly into the customer communication strategy for customer segmentation. ith variable printing and data rich files a company can use their intelligence and print relevant Direct Mail that will move customers toward the purchase decision. Additionally customer communications should also enable the company to learn more about the customer over time so that it acts upon that information to better meet customer needs in the future. This is building "learning relationships" with customers, a fundamental CRM concept. A feedback loop must be built into the process so that the company can continually learn more about customers and their needs in…… [Read More]
Coca Cola Initiative
Coca Cola's ecent and Ongoing Integration Initiative: Legal Implications and ecommendations
No company continue to prosper without continuing to grow and adapt -- markets and operating environments are in a constant state of evolution, and companies must respond in kind in order to maintain efficiency and profitability, and to ensure that their products and distribution methods are in keeping with market demand. Many company adaptations are achieved through subtle and simple changes, however at times more significant change initiatives are implemented in order to bring about more profound and widespread organizational changes. These initiatives can have significant legal implications and consequences if they are not undertaken with proper planning and care, and the larger an organization is the more complex these implications can become. The following pages discuss the potential implications of an ongoing initiative at the Coca Cola Company.
Company and Initiative Overview
Coca Cola is…… [Read More]
The company does not discriminate their employees in any way and it ensures that their employees are always satisfied. This has helped the company to have a high employees retention rate and employee satisfaction rate. The company always aims high and this is why the employees are encouraged to e as innovative as possile Veale, Oliver, & Langen, 1995()
The Coca-Cola Company elieves in their own unique culture which they share and why helps to nurture all that the company does. The company culture is driven y one major factor which is passion. This is one of the company values. The other values are leadership, integrity, accountaility, collaoration, innovation and quality Foster, 2007()
The company strives in all ways possile to e analytical and creative in a rilliant way. This helps the company to commit to change and to always find more sustainale ways for carrying out the company's…… [Read More]
Coca Cola's Localization Strategy
When most multinational corporations like Coca Cola enter foreign markets and implement localization strategy, they do it with reasons. As presented in the case, Coca Cola seeks to set up a corporate image. When it penetrates a local market, it replaces consumers' and government's collision. Implementation of corporate culture, personnel, marketing, and materials localization is useful in establishing the company's public image. The second reason is to dominate the local market rapidly. When multinational corporations enter foreign markets, they tend to lack understanding of the domestic market (Banutu-Gomez, 2012). This makes it challenging to keep up with development and changes of the target market resulting in the loss of vibrant market opportunities.
By implementing a localization strategy, Coca Cola could also choose local human resources to attain research and development, materials and marketing through observing the market via a local subsidiary. The company could be based…… [Read More]
Coca-Cola enterprises formulated a formal risk-assessment approach in 2003 that divided their business environment into 5 categories: financial, operational, social, environmental and ethical considerations.
In order to better assess the various risks that potentially impact their business in each of these areas, they divided each of these into a further six categories:
Reputation and Image,
Business and Operations,
Political and Regulatory,
Market and Financial,
Information Technology and Business Process Change,
People and Organization.
By focusing attention on each sector in turn and paying close attention to potential risks and possible market changes, Coca-Cola is able to move towards the future in a progressive and optimistic manner.
An example of their risk evaluation in operation is paying attention to the People and Organization sector when, Coca-Cola may, and indeed has noted in the past, that consumers are more interested in healthy beverages. eeking the best for their organization and seeking profit…… [Read More]
Company Mission, Vision, And Stakeholders
The Coca-Cola Company is a multinational corporation that manufactures, retails, and markets nonalcoholic beverages and syrups. The company is commonly recognized for its Coca Cola product. Coca Cola refers to a carbonated soft drink that is sold in restaurants and vending machines across the globe. This report endeavors to explain the major vision and vision, objectives and goals of the company and the actions it undertakes to create and sustain competitive advantages. I plan to get this information from the web and reading pamphlets from the company (The Coca Cola Company, 2010).
The key motivation for choosing Coca Cola arises from its multinational nature, serving millions of individuals around the globe. For the company to thrive as a business in the coming years, it must look ahead and understand the forces and trends shaping the business environment. The company must be prepared for the future…… [Read More]
One way that Coca-Cola could have avoided the lawsuit, then, would have been to enforce its existing regulations concerning diversity. The evidence supported that these codes were ignored, even at the senior management level. In addition, the acrimonious relationship between primarily white managers and primarily black workers should have been an indication that there were issues of discrimination.
Aside from taking recognizing troubles and reacting early, there are systemic ways that Coca-Cola could have addressed the situation. During the trial, a number of statistics were introduced in support of the claimants. These included numbers on blacks being dismissed vs. whites being dismissed and figures concerning promotions. Coca-Cola could have recognized the situation in advance by setting up utilizing these types of metrics to understand the impact of its human resources policies.
In addition, Coca-Cola could have avoided the issue by enforcing its existing codes. Senior management did not appear to…… [Read More]
Coca-Cola leads the world's beverage industry with as many as 400 products and has its presence globally in more than 200 countries. In addition to this, Coca-Cola collaborates with some 320 licenses to produce more than 10000 products in 57 countries. Products range from fashion apparel to holiday decorations and even a Coca-Cola Picnic arbie doll. Every year, licensees sell 50 million licensed Coca-Cola products.
Internal usiness Environment
For over 100 years, Coca Cola still remains the world's largest producer of carbonated soft drinks. The company sells the very famous Coke® with the punch line "Always Coca-Cola" that is still the common man's term for any aerated soft drink.
The company's signature Coke® brand is well recognized by literally billions of consumers, and Coke is sold in almost every country in the world - more than 200 countries worldwide.
The Coca-Cola Company is the world's largest…… [Read More]
Coca Cola Corporation is an American Icon of business that has established a new direction for American Industry operations in the 20th century. According to Moxley (2002), "Beginning with its invention in 1886 by druggist John "Doc" Pemberton in Atlanta, the development of the product is shown, along with the changes in American life that accompanied -- and affected -- the prices. We learn that by giving out free samples and pervasive advertising, Coca-Cola became known throughout the country." (Moxley, 2002)
Coke was a known brand by the turn of the 20th century. The use of free samples gave future customers the chance to try the product risk-free and instil confidence in the owners belief in the quality of the product. According to Moxley (2002), "Bottling plants were shipped around the world, laying the base or the worldwide expansion of the product in the late 1940s and 1950s. Throughout, the…… [Read More]
Coca-Cola's Philanthropic Practices as a Successful Organizational ehavior
Coca-cola is an immensely successful corporation, and a large part of that success is owing to unbeatable brand recognition. No one asks for an "RC Cola," whereas everyone asks for a "Coke." Coke, a private brand, has become synonymous with that particular type of beverage -- something against which PepsiCola has had to struggle during its entire existence, especially in the United States.
ut fortunate posturing in brand recognition does not go entirely to organizational behavior. Rather, Coke benefits from a corporate culture in which philanthropy is encouraged and indeed lived. Coke informs its employees constantly of its philanthropic moves and commitments, and really instills the feeling that employees are working not only for higher dividends but for humanity as well.
This practice has been so successful for Coke that it has turned into an organizational behavior for them -- it is…… [Read More]
All departments: marketing, production, distribution, sales, customer service should be trained for ethics. Company should become the flag bearer of equal employment and diversity as some measure has already been taken by the management. It is not just the product that goes into market; for the company as old as Coca Cola a lot more is at stake. The voices of employees, complaints of customers, grievances of distributors and even concerns of competitors should be given importance. Ethics is the do or die situation and if not tackled and constantly monitored, then the fate of Coca Cola would not be different from that of Enron.
Stakeholders & Future company's future depends on safeguarding the interests of all its stakeholders. Most companies like Coca Cola count on the charitable works they do for maintaining their public reputation. Setting up charity schools, hospitals, roads and health centers etc. does not necessarily mean…… [Read More]
Coca Cola's business strategy is built upon differentiation. It uses both types of differentiation, quality and branding, to set itself apart from its competition. The success of Coca Cola is literally built upon the strength of the Coke brand, even though Coca Cola now markets thousands of products in addition to the original Coca Cola. This branding has proven a significant source of the company's strength, as seen when one examines the brand in connection with a SWOT analysis of the company. However, when Coca Cola faces any type of threat as a brand, that threat can leave the entire company vulnerable. Moreover, the company's largest opportunities are in areas outside of its traditional soft-drink market.
This paper will provide an internal overview of the business strategy employed by the Coca Cola Company, differentiation, and how it uses both a quality strategy and effective branding to set…… [Read More]
Coca-Cola Enterprises Strategic Alliances
The carbonated beverage industry is one of the oldest and more complicated industries in existence. This industry is heavily dependent on its customer loyalty that it has developed historically and its reliance on marketing and innovation to grow new revenue streams. There are a growing number of potential threats that are present in the carbonated beverage industry. One trend that is emerging in many of the markets in the developed countries is that the consumers are becoming more health conscious. As a result the demand for drinks containing high fructose corn syrup is diminishing relatively rapidly in some segments. Coca-Cola has had to innovate to diversify their product mix to offer products that appeal to these demographics.
Another threat is that younger generations are seeking new types of drinks and new product brands. For example, the energy drink industry has grown rapidly. "Globally, the…… [Read More]
(Conniptions886 2009). Again the ad stresses the outdoor beach culture among those who have the means and leisure to enjoy it.
Coca Cola ads have not seemed to change that much over time. They have sacrificed expressing multiculturalism, without popular exception to build a following for their target market. One comparison ad done by Pepsi and much more reflective of diversity, and especially the diversity of the urban culture is the ad affectionately known as "Chain reaction." In general Pepsi seems to have somewhat let go of the beach culture and decided to focus on the massive urban youth culture. This is not to say that Pepsi has become the label of multicultural expression, as they still clearly target the white youth audience:
(Youtube user DuncansTV2008)
The Pepsi chain reaction video is a great example of the change of focus of one brand to the urban culture of the youth…… [Read More]
Coca Cola Company is the biggest beverage company in the world. The company faces major competition and the top three competitors include Pepsico, Inc., Nestle S.A. and Dr. Pepper Snapple Group, Inc. The weaknesses of the company encompasses its substantial dependency on carbonates and the adverse perception of coca cola products being filled with high sugar content and therefore deemed unhealthy. The prospects that the company should seize encompasses the rise in growth and development of emerging markets and also the increase in need for healthier drinking options. The company's recent performance has been impressive as the company has generated increases in net income. However, the company should improve the sales revenue generated as this amount has been dwindling in the past three years. The company relies on debt to finance its assets as its debt to equity ratio stands at 188%.
The history of Coca-Cola started out in…… [Read More]
This modeled on the precedent here for healthy charitable contribution to active-living initiatives. Accordingly, from its $82 million raised in philanthropic funds, "$6.7 million or 18% was directed to innovative physical activity and nutrition education programs, ranging from the restoration of walking trails and biking paths through the National Park Foundation to support for the Great Fun2Run Program, a curriculum-based program in England that guides teachers, students and their families on the benefits of healthier active lifestyles." (CCC, 1) This constitutes a significant counterpoint to the way it is seen today, largely as a major contributor to this crisis.
According to the 2009 published outline of its intended role as a more ethically oriented corporate entity, Coca-Cola reports that "we aspire to help people around the world lead active healthy lives through the variety and availability of the beverages we produce; our assortment of package sizes; the ingredient, nutrition and…… [Read More]
Coca-Cola faced a number of different ethical issues. The case outlines some of them. The company had faced charges of racial discrimination at many of its plants, in particular relating to the lack of upward mobility for African-Americans at some of the company's southern plants. The company also faced charges of misrepresenting market tests, manipulating earnings, disrupting long-term contractual agreements with some of its distributors. All of these issues affect different stakeholders, but each has the ability to disrupt the company's reputation as an ethical firm. The new management needs to prioritize these issues and address them, while placing the issues in the context of a new philosophy of ethical management.
Of these issues, the manipulation of earnings is the most important. In order to make that determination, we must examine the different issues from the stakeholder perspective to understand the bottom line. The charges of racial discrimination affect a…… [Read More]
Marketing Strategy -- Coca Cola
Coca Cola Company
Marketing Strategy - Coca Cola
The Coca-Cola Company is a market leader with the market of 42% in the soft-drink industry and possesses a sustainable brand image due to its variety of products and product quality. The current study aims to analyze and discuss the current marketing strategies adopted by the Coca-Cola Company. The Coca-Cola Companies contains a large portfolio of products that are available in more than 200 countries of the world. The company holds the ability to develop its current and existing products in order to meet the customer preferences and demands.
History of the Company
Global Marketing Strategy
Selection of Products
Advertisement and Promotion
Future Outlook of the Company
History of the Company
The Coca-Cola Company was incorporated in 1892 by Asa Griggs Candler and the…… [Read More]
Coca-Cola's mission, vision and values are analyzed, against the literature outlining what the best practices for these things are. Coca-Cola's mission statement has three parts, only one of which says something meaningful; the other two state the obvious. The vision statement contains no vision, does not meet the criteria of a high quality vision statement, and needs to be replaced in its entirety. The values statements are superficial; taken at face value they express nothing wrong, but they also add no real value because of their superficiality. Recommendations for improving or replacing these three statements are given at the end of the analysis.
When used properly, a mission statement can be a powerful strategic tool (Mullane, 2002). A poorly constructed mission statement might have limited strategic value, but a good one can clearly define why the organization exists, and what it hopes to accomplish by way…… [Read More]
In this paper, beverage giant, the Coca-Cola Company, has been analyzed. An internal as well as external analysis of the company has been undertaken using the following analytical tools: PESTEL, SWOT and Porter’s Five Forces. The 5-factor analysis has revealed: medium threat of new entrants, medium to high threat of substitute products, low supplier and buyer bargaining power, and high level of rivalry with its chief competitor, PepsiCo.
SWOT analysis results were as follows: Strengths: Brand Equity; Company valuation; Extensive international presence; Greatest market share; Brilliant marketing plans; Customer Loyalty and Distribution system. Weaknesses: Competition with Pepsi; Low Product Diversification; Lack of a health beverage offering and Water management. Opportunities: Diversification; Focusing on developing countries; Packaged drinking water; Supply chain improvement and Market lesser selling offerings. Threats: Sourcing of Raw Materials and Indirect competition.
Lastly, PESTEL analysis results were as follows: Political and Legal Factors potentially impacting the…… [Read More]
Coca Cola's strategic controls and their fit with the company strategy. What the paper reveals is that there is a real disconnect between Coca Cola's corporate image and its internal corporate dealings. The company is far more ruthless and cutthroat than one would imagine from its very friendly corporate image. It has been involved in several substantial scandals and appears willing to do morally questionable things in order to retain its role as market leader. However, the lack of fit between the company's strategic controls and its stated strategy does not appear to have hurt the company. Coca Cola has been and remains one of the world's economic leaders, despite whatever internal leadership problems the company has faced.
What is fascinating about Coca Cola is that its mission and organizational components do not seem to fit with its strategy, but the company is still tremendously successful. Coca Cola's stated…… [Read More]
The company was also performing less profitably than other companies in beverages industry.
The profit margin of the company 7.12% which is lower than those of major company competitors, namely, of Pepsi Co and Hansen, Embotell and must be managed carefully by the corporate headquarters.
The competitive advantages of the company include very high market capitalization, the highest in the industry, very high brand awareness and well developed network of retail locations all around the globe, though facing fierce competition from world wide brands and local brands, good marketing tactics and developed employee selection and retaining process. These factors ensure the company diversifies its' output markets and also enjoy searching of outsourcing and thus less cost consuming production facilities, and spread the output network.
The management of the company clearly identifies the major risk factors associated with the company business and ensure to develop risk management system within the corporation.…… [Read More]
Marketing Plan for Coca-Cola Drink
Current marketing situation
Coca-Cola is a carbonated drink that is manufactured by The Coca-Cola Company. The drink is aimed for the non-alcoholic beverage industry because it is a soft drink. Within the non-alcoholic beverage industry, there are soft and hot drinks. Hot drinks comprise of tea and coffee, while soft drinks contain flavor, sweetness, and carbonated or non-carbonated water. The industry is dominated by the soft drinks category and includes bottled water, sports drinks, ready to drink coffee, energy drink, juice, carbonates, and bottled water. In the United States, Coca-Cola is the most consumed non-alcoholic beverage. In order to cater for the health conscious consumers the company developed two drinks namely Coca-Cola Zero, and Diet Coca-Cola that are aimed for health conscious teens and adults respectively. With a global presence, the drink has continued to attract more and more consumers mainly because of its unique…… [Read More]
The latter was clearly not the case when the packaging was changed as the customer dissatisfaction was evident. That said, the firm's decision of withdrawing the new packaging showed that it valued its customer satisfaction equally.
The CSR steps taken by the Coca Cola Company not only contribute back to the society immensely, but also have created massive employment, and added value to the brand itself. Many of its CSR strategies are incorporated in mainstream marketing strategies this helping the company generate greater brand loyalty (Ronen 637).
Mohr, Lois a., and Deborah J. ebb. "Do Consumers Expect Companies to Be Socially Responsible? The Impact of Corporate Social Responsibility on Buying Behavior."Journal of Consumer Affairs 35.1 (2001): 45. Questia. eb. 23 Feb. 2012.Blossfeld, Peter, ed. The New Role of omen: Family Formation in Modern Societies. Boulder, CO: estview Press, 1995. Questia. eb. 21 July 2011.
Shamir, Ronen. "Between Self-regulation…… [Read More]
Coca-Cola: Strategy Implementation
The Coca-Cola Company's organization is a double-edged sword. The Company's structure is one of global decentralization in which the Company manufactures and sells concentrates, bases and syrups, owns the brands and conducts marketing initiatives, while its global "partners" manufacture, package, merchandise and distribute the final products. This business model involves a "tall hierarchy" of at least 5 levels in which daily operations are apparently left to lower levels while long-term planning and extended-vision is handled by higher levels. The Company also employs committees to handle vital functions such as audit and budget, while using task forces to study unusual-but-possible repetitive problems that may arise for the Company. The management style is apparently very culturally adaptable, optimistic, passionate, responsible and rewarding, having lower level management handle day-to-day operations while upper management focuses on long-range objectives. The Company's conflict-resolution style is also quite adaptable, using Ombudsmen who are confidential,…… [Read More]
Coca Cola -- External Analysis
An external analysis of Coca-Cola (NAICS # 312111 -- Soft Drink Manufacturing) requires scrutiny of the specific industry environment with Porter's 5-Forces model and examination of the larger business environment through a PEST analysis. In his interview on YouTube, Porter speaks of the five factors of Competitive Rivalry, Threat of New Entrants, Threat of Substitute Products, Bargaining Power of Suppliers, and Bargaining Power of Buyers. He also discusses the underlying forces for each factor, examining the Airline Industry, in which all five factors are strong, and the Soft Drink Manufacturing Industry, in which all five factors are "benign," essentially making the Soft Drink Industry "a license to print money" (Harvard Business Publishing, 2008). Porter stresses the importance and flexibility of his five forces, which keeps an organization focused on "underlying fundamentals" so the organization's leadership is not tricked or trapped by the latest trend or…… [Read More]
Coca Cola & Pepsi
Coca-Cola and Pepsi are long-time rivals in the soft drink industry. In terms of their primary markets, the two have been engaged in an intense battle for market leadership for decades. hile this makes them natural comparables as investments go, they are significantly different in a number of other ways and this makes the question of which is the better investment a more challenging debate. Pepsi has spun off its bottling enterprises into a separate company, Pepsi Bottling Ventures, while Coca-Cola uses third party bottlers under contract. Pepsi has historically been the more diversified of the two companies, with its current businesses including Lay's and Quaker Oats/Gatorade. The nature of competition in the soft drink industry is international for both firms, but it is also intense. For both firms, the core soda products are viewed strategically as cash cows, but gains in market share and shelf…… [Read More]
This provides tremendous opportunity to build market share without significant increases in infrastructure. The downside of these markets is that they tend to be less efficient, because fixed costs are higher in relation to revenues. The company can win in such markets, however, if it uses its globally powerful brand to gain a stronger presence in underserved markets, thereby pre-empting rival firms from entering these markets. ith Coca-Cola establishing market share, it will be all the more difficult for other companies to match the distribution clout and brand loyalty that Coca-Cola can build up.
In every market, competition remains a serious threat. Economies of scale can help the company in two ways. The first is that it improves margins, leaving more money left over for marketing efforts. The second is that there is often price competition in competitive markets. ith better economies of scale, Coca-Cola can withstand price wars long…… [Read More]
Its key formulas and marques have trademark and patent protection. The Coca-Cola brand itself has been named the world's most valuable brand with a value over $71 billion (Interbrand, 2011). On the balance sheet, intangibles are recorded at $15.4 billion. The company has strong relationships with Coca-Cola Bottlers (a separate company) and with a vast network of contract producers and distributors around the world. The company interacts with retailers through their distributors, so these relationships have significant value that is not normally reflected on the balance sheet. Goodwill accrues when a firm is acquired, and is valued at $12.2 billion.
Coca-Cola's reputation is generally strong, the company having avoided major ethical scandals and boasting an exceptional business track record. The corporate culture at Coca-Cola is supportive of innovation "our shared passion is transforming Coca-Cola" (Coca-Cola, 2012), and this attracts top talent to the company and allows the company…… [Read More]
No organization exists in a vacuum, but instead, is part of society and culture. This is more extreme in the 21st century due to the process of globalization. Globalization has changed the world of marketing and consumerism. No longer are markets just local, and with the advances in telecommunication and the Internet, customers may be a few miles from the vendor, or a few thousand miles. Organizations have also undergone a change in overall philosophy -- not just moving toward entrepreneurial thought as a way to change their marketing paradigm, but through consumer and corporate expectations of business in a more ethical and sustainable manner. While this is true, and there is even a philosophical paradigm called Corporate ocial Responsibility, there has been a reason for the evolution of this change in viewpoint, really beginning in the post-World War II world. The entire premise of globalism, though, teaches…… [Read More]
Coca-Cola's key resources are its brand, its distribution network, its innovation pipeline and its bottlers. The company success is largely related to its ability to leverage the first three, while the bottlers are basically a hygiene factor. Poor relations with bottlers can distract the company but at best the bottlers can only be a minor contributing factor to the other three resources. The company's positioning within the industry is as an industry leader, and the most powerful firm within the industry. Coca-Cola markets itself as a differentiated producer.
Coca-Cola's strong industry position is only somewhat congruent with its key resources. Certainly the strength of the Coca-Cola brand is closely related with the firm's premium status in the industry. The brand supports this status and the differentiated pricing that Coca-Cola has. However, the rocky relationship with the bottles does not support Coca-Cola's premium image. Customers would probably expect that an exceptional…… [Read More]
Voluntary Inter-industry Commerce Solutions Association (VICS) Case
"True or false: Coca-Cola's experience with inventory forecasting supports the principles set forth by CPFR"
There was a time in which supply chain management was a rather straight forward process. However, as business has grown substantially larger throughout the years so have their supply chains and distribution networks. As the case mentions, Coca-Cola used to come in little green bottles and the drivers unloaded the products to retail locations from the truck as needed. Today however, the second-largest Coca-Cola bottler in the world delivers more than a hundred and twenty five million cases to different types of customers all with different requirements and promotional activities (Murphy, 2002). Today's modern organizations have to integrate the latest in technology and supply chain management in order to effectively meet the demands for their products on such a massive scale.
Coca Cola's experience with inventory…… [Read More]
Coca-Cola has a number of products, but their core product is the eponymous flagship beverage. But what is Coca-Cola? In essence, it is a syrup that is mixed with carbonated water in order to produce a soft drink. The production method is to gather the base ingredients, and then to create the syrup, which is a mixture of these flavoring ingredients, sugars and some water. This syrup is then blended with the carbonated water in order to produce the final product. When you get a Coke at a soda fountain, the blending occurs at the fountain. When you get a Coke in a bottle or can, it is blended at the manufacturing facility right before it is packaged, so that the packaging maintains the carbonation.
The process looks like this:
source: Process Flow Sheets (no date)
The Coca-Cola supply chain is complicated mainly by the volumes that the…… [Read More]
(Olsen) One of Coca-Cola India's community projects was the "Elixir of Life Project," which brought clean water into 100 schools benefiting more than 30,000 children, and earned Coca-Cola India 2008's Golden Peacock Award. (Muruganantham).
One of the major themes of the Bible, and perhaps the reason for it's existence, is the concept of communal responsibility. People must be responsible to the community in which they exist, otherwise conflict, destruction, and harm is often the result. In the modern world large multinational companies must also be responsible to the communities which produce and consume their products. In the case of Coca-Cola India, Coke's inability to maintain production values allowed pesticide contamination of their product. Their initial response was anything but neighborly; calling the CSE liars, incompetents, seeking gag orders and threatening lawsuits. However once they came to the understanding that they did indeed have a responsibility to the local…… [Read More]
Summary of the Company
Coca-Cola is a manufacturer and sometimes distributor of non-alcoholic beverages. The company was founded in 1886 in Atlanta, where the company is still based. It was concocted by John Pemberton, who then sold the product in soda fountains and pharmacies. The name comes from key ingredients, including cocaine and Kola nut, and the drink was initially marketed as a medical tonic. Coca-Cola was initially a syrup that was sold, to which carbonated water was added at the time of dispensing. The company spread nationwide in the early part of the 20th century, and began overseas expansion (Bellis, 2015).
The first major shift in the business model came in the 1960s when the soda fountain -- the main distribution point for the product, began to fall out of favor (Bellis, 2015). To some extent, this was replaced with fast food restaurants, another primary distribution point,…… [Read More]
" (U.S. Secuities and Exchange Commission Annual Repot No. 1-2217)
Economical and Political Influences:
Economical and political conditions in the intenational maket place include: "civil unest, poduct boycotts, govenmental changes and estiction on the ability to tansfe capital acoss bodes." It is vey possible that the cuent instability in economic and political conditions in the Middle East, Noth Koea, Iaq o elsewhee as well as continued teoism could advesely impact the Company's financial esults in business."
Othe factos include: "Changes in the nonalcoholic beveages business envionment which is inclusive of changes in consumes pefeences due to health o nutition aspects, competition pessues in poduct and picing competitive poduct. Othe changes such as changes in foeign cuency fluctuation and inteest ates as well as othe capital maket conditions, weathe conditions advesely effecting the Company by a eduction in demand, vaiations in effectiveness of advetising, maketing and pomotions. Fluctuations on cost and…… [Read More]
products or service of your chosen organization, and two (2) key factors in the organization's external environment that can affect its success. Provide explanation to support the rationale.
De Beers is the world's famous diamond company, established in 1888, with proficiency in exploration, mining and marketing of diamonds. More than 20,000 employees make contribution to the communities in which we work. De Beers carries out profitable business which helps the government reach their aims of turning natural resources into natural wealth and is working to provide good long-term development for Africa. Anglo American and the Government of the epublic of Botswana are the two shareholders of De Beers, 85% and 15% respectively. This company is made up of fully owned partnerships, investments and subsidiaries. It is involved in most of the diamond chain value such as exploration in four continents, mining in Namibia, Canada, South Africa and Botswana; valuation, arrangement,…… [Read More]
Another way to increase the market share could materialize in product developments. This would ensure that the number of customers increases as the product offering becomes more diversified and is able to suit more tastes. Sales would immediately boost up, in part due to the promotional strategies, but the growth must be sustained even after the promotions are over. The reason for this specification is that several companies registered record sales during promotional periods, but the revenues were unsustainable in normal periods.
Constant communications with the final consumers and the retail customers would also help in identifying newer needs and trends. The satisfaction of these demands would eventually lead to more buyers and a significantly higher market share.
Improve customer relations good relationship with the customers, both end consumers as well as retail customers, is the key to a successful corporate outcome. In order to improve it, the company could…… [Read More]
Coca-Cola and Pepsi are the world's two largest producers of non-alcoholic beverages. Both companies are global in scope, and market hundreds of different products. Each has multiple billion-dollar brands. Yet, there are significant differences between the two. Coca-Cola has typically focused on its soft drink businesses, while Pepsi has sought to build market size through diversification. Corporate restructuring has allowed Pepsi to divest itself of its restaurant businesses and its bottling business, leaving the company in recent years with a structure similar to that of its rival and a focus on the beverage and snack food industry. The intent of this paper is to analyze the two soft drink giants in the context of their finances. The financial performance of these companies derives from their business practices, so some attention will be paid to strategic issues in this report. The bulk of the report, however, will be focused on…… [Read More]
This research paper examines the organizational design of the Coca Cola Company and describes its structure of organization. The organizational structure of the Coca Cola Company is clearly unique. Regional managers employed by the company are given powers to make decisions. The company has ensured that it responds quickly to the changes in market demands by allowing localized decision making. The management at higher level is, consequently, given the time they need to think through long term strategies and plans. Although Coca Cola has made significant efforts to reinvent its brand and products on the market, its growth has slacked in recent day. There is an indication that the company should rethink its strategy for products if it is to remain relevant and competitive on the market. This study sums up by pointing out the changes recommended to keep the company growing fast.
It is evident that…… [Read More]
Financial Analysis of Pepsi and Coca Cola
Synopsis of Companies
Pepsi and Coca-Cola companies boast of having two of the most recognized and preferred or desired beverages in the whole world. These two establishments are very fierce competitors in the beverage industry and incessantly compete with one another with the main objective of becoming the main and top distributor of not just sodas built but other beverages as well. This fierce rivalry that exists between the two companies is referred to as the "Cola Wars" and began in the period leading to the 1980s and has since then continued and become even more intense. In the period leading to the 80's Pepsi boosted and increased its market share, a time which coincided with Coca Cola Company being the top most distributor and supplier of beverages (PepsiCo Annual eport, 2013).. At this point in time, the two companies energetically and dynamically…… [Read More]
Coca-Cola Company is the leading soft drink and beverage company across the globe that has constantly achieved tremendous success and profitability throughout its operations. The company's success and profitability throughout the years can be attributed to effective management strategies of its business operations. This has contributed to a strong reputation that has not only attracted a huge customer base but also resulted in enhanced performance. The success and profitability can also be attributed to diversification of its products and provision of excellent customer service. However, the company has experienced significant challenges in the recent past that has forced its former executive to come out of retirement to become the Chief Executive of the firm. The company's troubles started after the death of oberto C. Goizueta, its revered Chief Executive Officer, in 1997. The firm's situation since then provides a good scenario for analysis of marketing problems and opportunities…… [Read More]
32). By contrast, PepsiCo benefitted from its wide product diversification. PepsiCo's product line includes popular snack names, while Coca-Cola has stuck to beverages. That has given PepsiCo the lead in overall sales, $43 billion to $31 billion in 2009 (see Dlugosch, 14 April 2010, p. 1). Question 4: Both companies' vertical involvement in their main global markets was determined by the consideration that contracts between soft-drink concentrate producers and bottlers allow the bottlers to have the last say in retail price, new packaging (but they could use only authorized packaging), selling and advertising in its territory (Martin, 26 March 2004, p. 5). This often causes strain on the relationships between bottlers, that very often are unable to produce and sell in large volumes, and the concentrate producer (Martin ibid). To accelerate revenue growth and be more agile and flexible both companies engage in vertical involvement in their main global markets…… [Read More]
Does Coca-Cola have the ability to influence CCE's debt levels?
The debt to equity ratio of Coca Cola is: .92 for 2009 and 1.33 for 2010. While CCE has a debt to equity ratio of: 1.51 for 2009 and 1.3 for 2010. Coca Cola does have the ability to influence the debt levels of CCE. The way that this can take place is to use Coca Cola's credit line to help the firm raise additional working capital in the public markets. This would cause the debt levels of CCE to increase. Another option is that Coca Cola can purchase CCE and assume a percentage of their debt. A good example of this can be seen with Coca Cola's acquisition of CCE North America. In exchange for increasing their ownership in this segment, there was also an agreement for Coca Cola to take on CCE North America's debt of $7.9 billion.…… [Read More]
Describe the strategic implications that would need to be considered in setting a price for that product
The public company selected for this analysis is Coca Cola Company. The identified product of the company is the Coca-Cola 20 fl oz bottle, which can be typically obtained from a convenient store, vending machine as well as super market. There are strategic implications that would need to be taken into consideration in setting the price of this particular product, which include the following:
1. Competition in the market
Rivals in the market have a significant impact on pricing decisions. Imperatively, the comparative market shares of market rivals impacts whether an organization can set prices independently or whether such decisions take into account the direction taken by competitors. In this case, Coca Cola Company faces intense competition from brands such as Pepsi and Dr. Pepper who have also unveiled similar products.…… [Read More]
) if the offer were closer to $200,000,000 then it would at least be realistic considering all that my clients have endured over the years.
Attorney for defendant: Listen Mrs. Douglas, in total, we have been at this for some time now and we have made considerable progress throughout these negotiations. I feel as if we are close enough to reaching some type of agreement. We are currently offering $140,000,000 and you are asking for somewhere in the ball park of $200,000,000. We are not prepared to offer that to your clients, but we are prepared to take this case to trial and let the jury decide on this issue. In this case, they could lose and get nothing. We are willing to increase the offer to $150,000,000. They can take this amount today and walk away with approximately $75,000 each. The other option for your clients is to take…… [Read More]