...1) How could the Belgium problem have damaged Coca Cola? Coca-Cola had been creating a really strong and successful image, and people had great sympathy for the brand. But because of the Belgian scandal, the credibility of the umbrella brand was being doubted. First of all, customers (mainly from Belgium and France at the beginning) were scared of drinking Coca-Cola products. For example, parents did not want their kids to get contaminated. More so, the brand was not giving a specific reason for these incidents, and by not reacting soon enough the quality of their products was at stake. Because of that, the Belgian government imposed strict hygienic conditions to recover the right to sell their products again. Therefore, the rest of European countries had an "excuse" to distrust the brand, even if the Belgian authorities reacted a bit extremely due to the former chicken crisis. Suppliers and distributors around Europe were also impacted. Coca-Cola, as a global brand, had had to trust its bottlers to follow the quality values the company held, but this scandal challenged the current control of Coca-Cola over its supplier's plants. But these suppliers also were scared of the consequences of their relationship with Coca-Cola in this crisis. Coca-Cola also suffered a financial impact because of this crisis. The withdrawal of their products had a negative impact on the second quarter net income of the year 1999, with a decrease of 21%. Not only that, but the cost of the entire...
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...COKE ETHICAL ISSUE WHO IS THE REAL GUILTY? The Coca-Cola Company is an American multinational beverage corporation and manufacturer, retailer and marketer of nonalcoholic beverage concentrates and syrups, which is headquartered in Atlanta, Georgia. The company is best known for its flagship product Coca-Cola, invented in 1886 by pharmacist John Stith Pemberton in Columbus, Georgia. The Coca-Cola formula and brand was bought in 1889 by Asa Griggs Candler (December 30, 1851 - March 12, 1929), who incorporated The Coca-Cola Company in 1892. On June 13, 1999, Coca-Cola (Coke) recalled over 15 million cans and bottles after the Belgian Health Ministry announced a ban on Coca cola's drinks, which were suspected of making more than 100 school children ill in the preceding six days.This recall was in addition to the 2.5 million bottles that had already been recalled in the previous week. The company's products namely Coca cola, Diet Cola and Fanta had been bottled in Antwerp, Ghent and Wilrijk, Belgium while some batches of Coca cola, Diet Coca cola, Fanta and Sprite were also produced in Dunkirk, France. Children at six schools in Belgium had complained of headache, nausea, vomiting and shivering which ultimately led to hospitalization after drinking Coca cola's beverages.A week after the reported ilnesses, the Coca cola company responded.They said that The Coca cola company`s highet priority is the quality of our products.We deeply regret any problems encountered by our...
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...10/6/2015 10/6/2015 NAVEED KHAN - Student Coca-Cola NAVEED KHAN - Student Coca-Cola Revenue Analysis Business Communication Revenue Analysis Business Communication 1. Introduction For this assignment I will be analysing Coca Cola market line report and conducting a SWOT analysis, strengthens, weaknesses, opportunities and threats. I will also be analysing their financial year and give a conclusion at the end of the report. 2. Findings I have found that Coca Cola have an increasing demand for functional beverages and these are bound to help boost the sales of all Coca Cola products across Western Europe. I have also found that the company address specific consumer needs such as products with no calorie, low calorie and no artificial sweeteners. Coca Cola have recently made their presence known by taking their place in the newly-emerging functional beverages market space. 3. Financial Year As you can see the majority of Coca Cola’s revenue comes from Great Britain. The Netherlands, Belgium, France, Norway and Sweden make up the rest of the revenue for Coca Cola. As you can see the majority of Coca Cola’s revenue comes from Great Britain. The Netherlands, Belgium, France, Norway and Sweden make up the rest of the revenue for Coca Cola. 4. Opportunities Coca Cola have many opportunities which include a new focused portfolio to attract health conscious consumers the “NON ALCOHOLIC READY TO DRINK” (NARTD) category. This is particularly...
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...M ARKETING P LAN D R AP P A A L E S S AN D R O F E R AI L L E J U L I E J AC O B S S É B AS TI E N M AG E R M AN M AR G AU X M O M M E N X AVI E R V AN S NI C K J I M M Y ADVANCED MARKETING – MS. ROTHENBERGER SOLVAY BRUSSELS SCHOOL OF ECONOMICS & MANAGEMENT 2014-2015 T A B L E O F C O N T E NT S 1. 2. Executive summary ................................................................................................................3 Environmental analysis ...........................................................................................................4 2.1. 2.2. Macro-Environmental Factors .......................................................................................4 Micro-Environmental Factors: Industry Analysis...........................................................5 Threat of new entrants –Low Pressure ..................................................................................5 Power of suppliers – Low Pressure.........................................................................................6 Rivalry of existing firms – Medium To High Pressure ............................................................6 Threat of substitute – High Pressure ......................................................................................7 Power of buyers – Low Pressure ............................................................................................7 3. Marketing Strategy ..............................................................
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...were to be felt throughout Europe with rumblings heard as far away as Japan and India. This time it was a soft drink that was the cause for concern. On 14 June 1999, in a move that was to cost more than $200 million in expense and lost profits and cause damage to the brand image of the trade-marked products of The Coca-Cola Company (CCC), the Belgian Health Ministry ordered that Coca-Cola trade- marked products be withdrawn from the Belgian market and warned Belgians not to drink any Coca-Cola trade-marked products they had in their homes. Later, France, Luxembourg and The Netherlands also banned or restricted the sale of Coca-Cola products. The production and distribution of Coca-Cola The CCC, with headquarters in Atlanta, Georgia, USA, is the world’s leading producer of soft drink concentrates and syrups, providing consumers with one of the world’s most popular soft drinks. CCC and its subsidiaries manufacture, market and distribute syrups, concentrates and beverage bases for the Coca-Cola brand and over 230 other brands bearing CCC trade marks that are sold world-wide. In addition, CCC provides advertising and other promotional support for these brands. Coca-Cola Enterprises (CCE), the world’s largest producer and distributor of products bearing CCC trade marks, as well as other bottlers, buy CCC’s syrups and concentrates and produce and distribute final soft drink products. Europe is an important market for CCC and CCE with approximately 23 per cent of world-wide sales originating...
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...term used by cola beverage manufacturers for their major bottlers around the world. They help make drinks. The Coca-Cola Company employed the strategy of "anchor bottlers" to penetrate markets like China, Eastern Europe and Russia. Notable anchor bottlers include: * The Coca-Cola Refreshments subsidiary of The Coca-Cola Company, the company's anchor bottler for the North American market. * Coca-Cola Enterprises spun out by The Coca-Cola Company in 1986 [1]and now covering [2] Belgium, continental France, the United Kingdom, Luxembourg, Monaco, and the Netherlands; * Coca-Cola Hellenic Bottling Company ("CCHBC") formed from the de-merger of Coca-Cola Amatil's eastern European interests into Coca-Cola Beverages and that company's subsequent meger with the Hellenic Bottling Company, now covering [3] 28 countries in eastern Europe, Russia and Nigeria * Coca-Cola Amatil covering [4] Australia, New Zealand, Fiji, Indonesia and Papua New Guinea; * The Pepsi Beverages subsidiary of PepsiCo is the company's anchor bottler for the North American market. * The bottling subsidiary of Dr Pepper Snapple, formerly the Dr Pepper/Seven Up Bottling Group, is the anchor bottler for most of the company's soda brands in the US. ------------------------------------------------- [edit]References 1. ^ Financial Times "Coca-Cola has tended to keep its bottlers at arm’s length" 2. ^ Coca-Cola Enterprises homepage "The World's Largest Bottler" 3. ^ Coca-Cola Hellenic...
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...Coca-Cola Case Study Factors Affecting Management Christopher H. Thompson Texas A&M University Central Texas Instructor: Dr. David Geigle G BK 444.115 – International Business Texas A&M University-Central Texas Summer 2014 Absract There have been and/or are plenty of factors, both internal and external impact the planning function for management within an organization. Regardless of size, age, revenue, product, or service, planning is the most fundamental and important component for management. By no means is the Coca-Cola Company an exception. Arguably, Coca-Cola is the most recognized, most popular, as well as the biggest-selling soft drink in history. Synonymous for Coke, the company produced nearly 550 million servings in 2007 selling other brands such as Sprite, Dasani, Bacardi, Fanta, Minute Maid, and Powerade generating a net operating revenue of $28.9 million. (Isdell, 2007). This paper will examine 4 major internal and external factors that impact managerial planning; globalization, technology, diversity, and ethics. In addition, will explain how managers can use delegation to manage the impact that these factors have on the four functions of management. Brief History It all started back on a regular afternoon, in the year 1886 in Atlanta, Georgia, when a pharmacist named John Pemberton, by curiosity decided to stir up a fragrant, caramel-colored liquid (syrup) and was combined with carbonated water. This drink, named Coca-Cola, was...
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...INTRODUCTION The invention of coca-cola originally started as coca-wine by John Pemberton in 1885. After the reinvention of coke’s identity into a refreshment, it began being sold in bottles for the first time in 1894. Coca Cola has always portrayed itself as a company based on unwavering values, morals, and goals. They offer world class quality of sparkling and still beverages, from coca-cola extending to 400 soft drinks, juices, teas, coffees, waters, sports and energy drinks that refresh, hydrate, nourish, relax, and energize. The Coca Cola Company and has become a Coca-Colonization. The world of Coca Cola is ever spreading in more than 200 countries around the globe. Drinking Coca Cola has always been a trend and a life-style. The company’s publicity and communications with their customers and employees have always been of utmost clarity, honesty, and candor. The various campaigns carried out over the years, have only become better and ever more powerful as an influence. However, when a crisis as big as the one that hit Coca Cola in Belgium in 1999 takes a company by surprise, no matter how big it is, no crisis management team can be prepared for a problem of this magnitude. II. CRISIS HITS COKE According to an article written in Junk Science (July 3rd 1999) 33 children from one school suffered from symptoms of nausea, headache, fatigue, palpitations, abdominal discomfort, and malaise after having drunk bottled Coca-Cola on June 8th, 1999. They were hastily...
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...COKE CASE STUDY: ISSUES IN THE GLOBAL SECTOR BY COREY J. GRIFFIN Coke is a major product brand that has grown from 1886 to becoming the number 1 brand in the world according to Interbrand’s Global Scorecard in 2003. All this success has not come with a little hardship, due to the fact that Coke is a global brand. Just as it was seen in the Nike case study, when a company becomes globalized it is hard to monitor and maintain every sector of the product name. On August 5, 2003 the CSE (Center for Science and Environment) released a critical press release that name 12 soft drinks brands, Coke brand included, that were sold in and around Delhi to have contain a deadly pesticide residues (CSE Press Release, “Hard Truths about Soft Drinks, 5 Aug 2003). CSE claimed that these dangerous pesticides were known to cause cancer, cause failure of the nervous and reproductive systems, birth defects, and damage to the immune system. Along with the hazardous chemicals found by CSE, there were very limited regulations in place for this industry to follow. These soft drink companies were receiving exemptions for the industrial licensing under the Industries (Development and Regulation) Act of 1951 that would have probably had a chance to take notice to these soft drink contamination events (CSE Press Release, 5 Aug 2003). In response to these very strong allegations from the Center for Science and Environment, Coke Enterprise of India launched their own internal investigation...
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...MECCA COLA: Building a Protest Brand in an Increasingly Anti-American Environment Tawfik Mathlouthi hopes to rid the world of American domination. He has started a company to compete with Coca-Cola and uses proceeds from the sale of his product, Mecca Cola, to help Palestinians. While some might concede that the product may sell well in certain Arab countries, Mecca Cola has successfully penetrated the European soft drink market as well. This case explores the success of this protest brand and the rising trend of anti-American marketing. In November 2002 French political activist, Tawfik Mathlouthi began selling a new brand of cola in France. Mathouthi called his cola Mecca, after the city in Saudi Arabia when Muhammad was born. While some religious leaders question the use of Islam’s holiest city for a brand name, not many people are questioning the brand’s success. Mecca, the site of the Great Mosque and the yearly hajj, or pilgrimage, holds a very significant meaning to followers of Islam. Mathlouthi hopes the name can have an equally significant meaning for consumers of soft drinks. Mathlouthi is capitalizing on the rising tide of anti-Americanism in the Arab world and beyond. He has fashioned his product on Zamzam Cola, an Iranian Coca-Cola substitute sold in Iran, Saudi Arabia, and Bahrain. Mecca Cola sponsored a large peace rally in London to promote opposition to America’s war in Iraq and the Mecca brand. The company gave out 36,000 bottles of Mecca Cola, and 10,000...
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...The Coca-Cola Company July 24, 2011 CONTENTS Abstract……………………………………………………………………………………………3 Coca-Cola: An Introduction.……………………………………………………………………....4 Financial Analysis………………..……………………………………………………………..…6 Competition Analysis: Pepsi………………………………………………………………………9 Recommendations………………………………………………………………………………..13 Conclusion…………………………………………………………………………………….…15 References………………………………………………………………………………………..16 Abstract Many international corporations began as small domestic ventures. As businesses grew, corporations saw the many possibilities brought on by expanding operations. Companies began to expand by opening franchises in various cities, yet they knew there was more potential for success if they were to expand their operations even further. Thousands of companies, such as Coca-Cola, chose cities internationally to gain more revenue. The purpose of a corporation is to maximize profits for all shareholders involved. Opening firms abroad allowed Coca-Cola to gain worldwide recognition, which gave them a competitive advantage over other soft drink makers. Now, Cola-Cola is not only recognized, but it is one of the most consumed soft drinks both within the United States and in cities across the globe. Coca-Cola took a huge risk in expanding their operations. However, their success proves that multinational corporations need to choose the right market to venture into and choose marketing techniques that appeal to their consumers. Coca-Cola: An Introduction In 1866...
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...and employees are being used by corporations to increase their own profits on public time and with public dollars.” Dr. Brita Butler-Wall, Executive Director, Citizens’ Campaign for Commercial-Free Schools, US. THE RECALL On June 13, 1999, Coca-Cola[1] (Coke) recalled over 15 million cans and bottles after the Belgian Health Ministry announced a ban on Coke’s drinks, which were suspected of making more than 100 school children ill in the preceding six days. This recall was in addition to the 2.5 million bottles that had already been recalled in the previous week. The company’s products namely Coke, Diet Coke and Fanta had been bottled[2] in Antwerp, Ghent and Wilrijk, Belgium while some batches of Coke, Diet Coke, Fanta and Sprite were also produced in Dunkirk, France. Children at six schools in Belgium had complained of headache, nausea, vomiting and shivering which ultimately led to hospitalization after drinking Coke’s beverages. Most of them reported an ‘unusual odor’ and an ‘off-taste’ in the drink. In a statement to Reuters, Marc Pattin, a spokesman for the Belgian Health Ministry explained the seriousness of the issue: “Another 44 children had become ill with stomach pains, 42 of them at a school in Lochristi, near Ghent, northwest Belgium. We have had five or six cases of poisoning of young people who had stomach pain after drinking (the suspect beverages)." In the same week, the governments of France, Spain and Luxembourg also banned Coke’s products while Coke’s Dutch arm...
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...A TERM PAPER ON OB PRACTICES IN COCA-COLA COMPANY Table of Contents No. Contents…………………………………………………...……………………….. Page no. 1.0 Chapter One 1. Introduction……………………………………………………………………………6 1.2 History of Coca cola…………………………………………………………….………7-8 1.3 Coca cola company in Bangladesh……………………………………………………. 9 2.0 Chapter Two 2.1 Bangladesh Beverage Industry……………………………………………….…………10 2.2 Competitive Analysis of Coca cola………………………………………………...……11 2.3 SWAT Analysis………………………………………………………………..…………12 A. Strengths…………………………………………………………………………..……12 B. Weaknesses…………………………………………………………………………….12 C. Opportunities………………………………………………………………………..….13 D. Threats………………………………………………………………………………….13 3.0 Chapter Three 3.1 Segmentation…………………………………………………………………………….14 3.2 Targeting…………………………………………………………………………………14 A. Porter’s Five Factors……………………………………………………………………14 3.3 Positioning Strategy………………………………………………………………………16 A. Points of Parity……………………………………………………………………..……16 B. Points of Difference……………………………………………………………………...16 C. Positioning Statement……………………………………………………………………16 4.0 Chapter Four 4.1 Product……………………………………………………………………………………16 A. Products in Bangladesh………………………………………………………………. …17 B. Product levels: The customer Value Hierarchy…………………………………...18 4.2 Price……………………………………………………………………………………...
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...The Coca-Cola Company Struggles with Ethical Crises "Coca-Cola has the most valuable brand name in the world and, as one of the most visible companies worldwide, has a tremendous opportunity to excel in all dimensions of business performance" (Ferrell, Fraedrich, & Ferrell, 2008). However, as proven in this case study, Coke has a lot on their plate as the biggest brand name in the world. Ethical issues throughout different aspects of the company, and with multiple leadership changes in the last ten years, Coke has some catching up to do. The company has been involved in racial discrimination, misrepresenting market tests, manipulating earning and disrupting long-term contractual arrangements with distributors. Neville Isdell, the new president of Coke is currently working to improve their reputation cause by some of the problems presented next. The Coca-Cola Company Struggles with Ethical Crises Coca-Cola History Coca-Cola is the world's largest beverage company that operates the largest distribution system in the world. This allows Coca-Cola companies to serve more than 1 billion of its products to customers each day. The marketing strategy for Coca-Cola promotes products from four out of the five top selling soft drinks to earn sales such as Coke, Diet Coke, Fanta and Sprite. This process builds strong customer relationships, which gives the opportunity for these businesses to be identified and satisfied. With that being said, customers will be more willing to help...
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...not be alike to all stake holders and it depends on the way the stakeholders receive familiarity once in touch with the organization. This may rise from direct experience with organization or through some other medium like news channels or talk with friends. Harrison ( n d) states that Stakeholders’ outlook for a company and their associations and interactions with the per se organization and thus the reputation may be impacted by relationship management actions some of which are outlined below pertaining to the Coca Cola case Customers: Direct Impact: Many consumers got ill effects related to health while consuming the product in 1999 in Luxemburg and Netherlands. The coke further took a step back and did not want to come in limelight to discuss the issue openly. The response time was too high for consumers to accept. France was also affected similarly. The contaminated products were also shipped to Poland. This direct impact which reduced reputation of Coca Cola in these countries also brought the sale down. Employees: The African American employees felt that the organization shows bias during performance assessments and related pay rises and promotions in 1995. They filed a case against the company too. Way back they did...
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