...Coca-Cola Case Aravind Jeevan Coca-Cola is the pioneer in soft drink industry and had been serving people for more than a century. It was started in Atlanta in 1986 as a company which made drinks from Coco leaf. Today Coca-Cola is the top soft drink company in the world and aiming to be a total beverage company. The original coke has been the company’s bestselling product for decades. Coke’s environment had changed couple of times in the past few decades. The major change was when Coke outsourced its bottler system in 1986. The company concentrated on the production of the concentrate and marketing strategies. The production and distribution of the product was left to independent bottlers. The second major environment shift was when the company executed the new policy “think local, act local”. This lead to a decentralization of the company’s management, strategy making and marketing activities to shift from Atlanta to rest of the globe. One of the success strategies of Coca-Cola Company under the leadership of CEO Roberto Goizueta followed by Douglas Ivester was the creation of independent bottler system. A global expansion was needed for growth and it required an enormous amount of capital. In order to achieve this task Coca-Cola sold its in-house bottlers and outsourced the bottler system to independent companies all over the world. Another part of the strategy was to integrate the bottler units into one single independent unit called CCE. Also Coke picked the bottler companies...
Words: 1529 - Pages: 7
...Coca-Cola, the iconic soda maker, had its roots in globalization in the early twentieth century. Historically, up until the 1980s, Coca-Cola primarily encouraged the strategy of localization. When Roberto Goizueta became the CEO in 1981, Coca-Cola slowly shifted towards a more standardized policy in an attempt to more effectively penetrate international markets. Within a matter of ten years, Coca-Cola was forced to once again shift its policies because standardization creating growth the corporate giant had hoped to see. Both strategies of localization and standardization have had limited successes in the past. The question now becomes what are the necessary considerations needed to be taken into account to enable a product to sell internationally and to continue to grow? Before analyzing the strategy Coca-Cola should partake, it is important to look at the general strengths and limitations to both strategies. On one hand, standardization brings in competitive advantages that localization cannot bring. According to Meyer and Bernier, the ultimate advantage of standardization is economies of scale in R&D, production, and marketing. Such economies of scale have led to “greater sales volume, lower production cost, greater profitability, and [an] integrated image around the world” (Meyer and Bernier 11). However, standardization often fails to adhere to cultural differences. For example, when Phillips a technology company, introduced its standardized coffee maker to the Japanese markets...
Words: 922 - Pages: 4
...Case Study: THE COCA-COLA COMPANY Ian Christopher Tapia Christine Joy Pabiton Edgel Perfinan Ma. Christina Gallaza INTRODUCTION 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. The company operates a franchised distribution system dating from 1889 where The Coca-Cola Company only produces syrup concentrate which is then sold to various bottlers throughout the world who hold an exclusive territory. The Coca-Cola Company owns its anchor bottler in North America, Coca-Cola Refreshments. Coca-Cola’s Background Information • Invented in May of 1886 by Dr. John Styth Pemberton • First glass sold for 5 cents at Jacob’s Pharmacy in Atlanta • May 29, 1886- first newspaper advertisement pronounced it “Delicious and Refreshing” Coca-Cola’s History • April 1888, Dr. Pemberton sold off his interest in Coca-Cola and passed away two days after. • April 1888, Asa Candler began buying up Coca-Cola shares • By 1892, Asa Candler was sole proprietor of Coca-Cola for a total investment of $2,300. Coca-Cola’s Growth ...
Words: 636 - Pages: 3
...I. Executive Summary Coca Cola is one of the largest leading beverage company that produce products such as water, juice and juice drinks, sports drinks, energy drinks, teas and coffees. Coca Cola products are distributed through restaurants, grocery markets, street vendors, and others, all of which sell to the end users: consumers. Coke is increasing investments in bottling investments, front-end capability, equipment and people. Coke’s long –term bottling strategy is to reduce ownership interest in bottlers and sell the companies interest to investee bottlers. Coca – Cola Company has two major rivals: PepsiCo and Cadbury Schweppes PLC. PepsiCo is a fierce competitor in the beverage industry’s two fastest growing categories: water and sport drinks. Cadbury Schweppes PLC is the world’s largest confectionery company and has a strong regional beverage presence. In order for Coca – Cola to compete with PepsiCo, Coke should also focus in making a sport drinks. Consumers now a day is so conscious of their health that they buy sport drink in order to energize them to exercise more. Coca Cola should produce beverage such as sport drink in order to attract consumers to but their product instead of PepsiCo. This case answers, How can Coca – Cola produce healthy products in order to lessen health problems that consumers are facing today, the use of plastic bottles in order to help the environment and to have a new line of energy drink that is less unhealthy...
Words: 9773 - Pages: 40
...Taylor Levesque Case Study #2 – Alternative Marketing April 27th, 2014 Professor Milbourne Coca – Cola Happiness Machine Description: In 2010 Coca Cola developed a plan to reinstate the message Coca – Cola has had for quite some time “Open Happiness”. For this campaign they wanted to extend their digital content. Coke executives and their marketing team came up with the Happiness machine. The idea behind the Happiness vending machine was to express a real organic experience. How they executed this was by Placing a normal coke machine on a college campus and making it seem genuine by having the machine wide open while it was being stocked. When a student paid for a coke the machine continues to hand out more of its product for free along with other awesome surprises. The element of surprise and happiness this stunt created a new emotional connection with the brand to the given audience. Target: The audience for the Coca Cola happiness machine was a college campus that was coke affiliated and had heavy foot traffic. St John’s University in New York was the surprise location. This Target audience is a more specific for the product and brands target audience. Since Coca Cola target audience is much generalized. Connecting to a heavy traffic target audience on a college campus allowed them to create a more personalized emotional connection to a certain group of people. Also, it allowed them to create the bigger buzz they were looking for on social media and digital...
Words: 387 - Pages: 2
...Coca-Cola’s globalization and its main strategies by Olga Skuratovska Management 502 (MGT502) Professor Claudia J.Ford October 15, 2014 Olga Skuratovska Skuratovska1 Professor Claudia J.Ford Management 502 (MGT502) October 15, 2014 Introduction For my business case study research paper I chose the Coca-Cola Company. I went through a lot of information about the company, I learned the company’s history and analyzed their main strategies that made Coca-Cola one of the most successful and recognized beverage company in the world. “The Coca-Cola Company, founded in 1886, is the world leading manufacturer, marketer and distributor of non-alcoholic beverage concentrates and syrups. It currently operates in over 200 countries worldwide and is most famous for the innovative soft drink, ‘Coca-Cola’, but can now boast in the region of 230 different brands (www.coca-cola.com). Its headquarters are in Atlanta, Georgia. Its subsidiaries employ nearly 30,000 people around the world. 70% of the company volume and 80% of the company profit come from outside the United States. It is one of the most visible companies in the world. Their Coca-Cola product is now available all over the world and has resulted in the drink becoming the world’s...
Words: 1725 - Pages: 7
...facing The Coca-Cola Company in this case? Describe the “performance-expectations gap” found in the case—what were the stakeholders’ concerns, and how did their expectations differ from the company’s performance? Public issue is defined as any issue that is of mutual concern to an organization and one or more of its stakeholders. The public issue in this case was concerning the amount of water The Coca-Cola Company was using and how safe if was for its consumers, and the deprivation of water from local villagers in a town in Kerala, India. Also another issue was the amount of pesticide residues the Coca-Cola products contained. The performance-expectations gap is defined as when the performance from a company and the expected performance of that company by stakeholders are progressing on two different levels leaving space between them or a “gap”. The stakeholders’ concern is that with the amount of water Coca-Cola uses in its production of products it will cause a shortage in the amount of fresh water available to everyone worldwide. Their expectations are that the company is keeping up with making clean products that do not continue to cause harm to the environment. Stakeholders are expecting the business to be increasing performance as well as being economically friendly. 2. If you applied the strategic radar screens model to this case, which of the eight environments would be most significant and why? After applying the strategic radar screens model to this case the most...
Words: 745 - Pages: 3
...Case Study: Coca-Cola OL – 421 INTRODUCTION: The Coca-Cola Company, an Atlanta based beverage giant, has spent the last 127 years refreshing the world, one Coke, one beverage, at a time. The evolution of The Coca-Cola Company is a true story of success, success that is contributed to producing quality products that people want, genius marketing, and effective corporate strategic planning. At Coca-Cola’s inception, only 9 servings of Coke were sold per day, and today, 10,450 Coca-Cola beverages are consumed each second; Coca-Cola is what success tastes like. Coca-Cola is the world’s largest beverage company and is strong all the way around, their financials are sound, they have a strong management and marketing team, and they produce products that people want and in some cases need. Although, even a successful company can come tumbling down, and in order to stay ahead of the competition and to continue revenue growth, I would advise the company to seek out additional business strategies in which I will explain in depth in the following sections. CURRENT MISSION, GOALS AND STRATGIES: Coke’s mission is to, “refresh the world, inspire moments of optimism and happiness, and to create value and make a difference.” The company’s goals include maximizing growth and profitability to increase shareholders’ wealth. The strategies that The Coca-Cola Company are currently pursuing to achieve these goals include: (1) product innovation; (2) creating...
Words: 1907 - Pages: 8
...Case study Coca-cola Industry The Competition among companies selling same or substitutes of a product is an important determinant of the performance of the companies. However, firmly established companies enjoy competitive advantages in the market hence leading to their stable existence. Among businesses that enjoy these benefits include the Coca-Cola Company. Coca-Cola took part in securing of its competitive advantages in lots of ways. The company’s history is a huge determinant the space Coca-Cola occupies when you talk of competitive advantages between businesses. It is so since it has created awareness for a long time and still spends heavily in the advertisement procedure. The companies also brand help improved competitive advantages since it has existence and adjusted with the change of taste and presences making it universally accepted hence improving its stakes in the competitive advantages among other companies. Coca-Cola has also implemented strategies that have helped its existence for the more than 120 years of existence. These policies have given the company a comfortable seat in the world of stock exchange. All these strategies are: a) Putting up a flexible structure – Coca-Cola has been able to cut costs so as to deal with hardship times in the market. It is an activity that not all companies can do lead to their dissolution and making Coca-Cola enjoy competitive advantages. It is all made possible since Coca-Cola has a broad scope of capital that would...
Words: 645 - Pages: 3
...1. Situation Analysis Case Background Created in 1886 by Dr. John Pemberton, Coca-Cola has gone through many changes, some good and some bad, but in the end has become the worldwide leader in its industry (Graham, 2011). The company boasts a lineup of approximately 500 different drinks, including soft drinks, teas, coffees, juices, and waters. Soft drinks are their “cash cow” with around two billion cans and bottles sold each day (Graham, 2011). The syrup originally was designed as a "cure-all tonic" and contained coca leaves (Davis, 2004). Two years after creating the mixture, and just before he died, Dr. Pemberton sold the rights to the beverage to Asa Candler. Due to increasing demand Joseph Biedenharn started bottling Coca-Cola and bottled distribution of the soda began; within five years large scale bottling operations became available. Throughout the company's history, and even today, it has faced and overcame many challenges. Coca-Cola was, until recently, the world’s most valuable brand (Elliott, 2013), but is still the worldwide leader in the beverage industry. Through all the successes, Coca-Cola has encountered some challenges along the way. Coca-Cola has been criticized for discrimination against minority employees, poor working conditions of migrant workers, and even assassinations of trade union leaders and union-affiliated workers that provoked protests (Raman, 2007). Another emerging issue the company is facing is criticism that their products are contributing...
Words: 5834 - Pages: 24
...Coca-Cola India On August 20, 2003 Sanjiv Gupta, President and CEO of Coca-Cola India, sat in his office contemplating the events of the last two weeks and debating his next move. Sales had dropped by 30-40%1 in only two weeks. On August 5th, The Center for Science and Environment (CSE), an activist group in India focused on environmental sustainability issues (specifically the effects of industrialization and economic growth) issued a press release stating: "12 major cold drink brands sold in and around Delhi contain a deadly cocktail of pesticide residues" (See Exhibit 1). According to tests conducted by the Pollution Monitoring Laboratory (PML) of the CSE from April to August, three samples of twelve PepsiCo and Coca-Cola brands from across the city were found to contain pesticide residues surpassing global standards by 30-36 times including lindane, DDT, malathion and chlorpyrifos (See Exhibit 2). These four pesticides were known to cause cancer, damage to the nervous and reproductive systems, birth defects, and severe disruption of the immune system. After this incidence the brand image of Coca Cola was tarnished and people started avoiding coca cola consumption. Since 2003 following the various allegations and issues such as presence of pesticide residues in its beverages and water resource contamination issues that the soft drink giant faced in India, their community-focused initiatives were further accelerated. To address these issues and to rebuild its tarnished...
Words: 379 - Pages: 2
...Cola Wars Continue: Coke and Pepsi Case Analysis 1. Soft Drink Industry (SDI) overview The industry considered in this analysis is Soft Drink Industry (SDI). SDI serves customer needs for refreshing and cold non-alcoholic beverages, with main industry sectors being: carbonated drinks, fruit punches, and bottled water sectors. There are three dominant companies in the industry, namely: Coca-Cola, Pepsi, and Schweppes. The soft-drink industry includes the following four major types of participating companies: • Producers of syrups and concentrates, • Bottlers, • Retail channels, and • Suppliers. 2. Porter’s Five Forces Analysis of the Soft Drink Industry (SDI): Soft Drink industry’s Carbonated Drink sector is 66 billion industry in US alone. Soft Drink industry remains very profitable, with pre-tax profits of 30% and 9% for concentrate producers and bottlers respectively. The following five forces analysis will attempt to show factors contributing to the profitability in the industry. Risk of entry by Potential Competitors: It is difficult for new entrants to enter the market because of few factors: First, in order to produce soft drinks a new company would have to have bottling or some other kind of packaging capacities or contracts with bottlers or packagers. To build a new bottling plant is very capital intensive and to enter in a contract with existing bottlers is difficult if not prohibited by the Coca-Cola and Pepsi’s agreements with existing bottlers. Because it...
Words: 769 - Pages: 4
... Int. Marketing Coca-Cola and PepsiCo. Case Study Hw#4 1. Q1. The key specific aspects of the political environment in India that have proven to play a critical role in the performance of both PepsiCo and Coca-Cola are ones that have portrayed India to be seen as unfriendly to foreign investors during years where imports were being banned from being sold in India. Coca-Cola chose to leave India in 1977 after a dispute with the government over its trade secrets and Coca-Colas refusal to cut its equity state to 40 percent. In 1991, a new government took office and introduced measure to stabilize the economy, which was appealing to foreign investors. 2. Q3. In terms of production policies, the two companies entered the market with products close to those already in the Indian market such as colas, fruit drinks, carbonated waters. They also entered the market introducing some new products such as sprite and their own brands of bottled water. Both companies have used promotional strategies to help their brand grow in India. PepsiCo gives away premium rice and candy with purchases of their product while Coca-Cola offers free passes, and special prizes like a vacation. PepsiCo and Coca-Cola have production plants and bottling centers in large cities around India for their wide range of distribution all over. Coca-Cola bought out Parle in 1993, and obtained its bottling...
Words: 531 - Pages: 3
...Coca cola case study In 2007, Coca-Cola began working in partnership with the Carbon Trust to calculate the carbon footprint of some of its most popular products in Great Britain. As part of this work, Coca-Cola Enterprises (CCE) piloted the Carbon Trust's product carbon foot printing methodology (PAS 2050). In March 2009, the carbon footprint of four brands (Coca-Cola, Diet Coke, Coke Zero and Oasis Summer Fruits) was published .The work that the Carbon Trust has undertaken with Coca-Cola in Great Britain is now being applied to a wider range of products and across European markets. The Carbon Trust has now licensed its Footprint Expert tool to Coca-Cola. During 2011 Coca-Cola will use the tool to repeat the carbon foot printing of the 14 products originally selected, as well as extending it to a further 36 products. Coca-Cola has launched Trace Your Coke, a new online tool to help consumers understand the journey and carbon footprint of some of its most popular products.In the distribution channels, the company has installed 2000 EMS-55 energy management devices in vending machines. These devices activate lights and adjust cooling based on use, leading to improved energy efficiency by up to 35 percent. In addition, the company installed 1,400 climate-friendly coolers at the 2010 Olympic Games to reduce greenhouse gas emissions by approximately 5,600 metric tons, the equivalent of taking about 1,200 cars off the road for an entire year. Finally...
Words: 290 - Pages: 2
...Log In Sign Up Global Business Strategy: A case study of Coca-Cola Company Fahad Muhammad Umar Uploaded by Fahad Muhammad Umar top 0.1% 10,752 Info Download DOCX 6 The Coca-Cola Company being a non-alcoholic beverages company falls in the category of what is known as the Food and Drug Administration (FDA), FDA is a globally recognized agency originated from the United State of America to monitor and verify ingredients that are being used in manufacturing non-alcoholic products. The coca-cola company cautiously examine their ingredients to meet up requirements of the FDA before presenting it for approval. However, aside from the FDA’s requirements other political majors that are being set in accordance with the jurisdictions of countries includes income tax, import and export regulations and the uncertainty of political crisis. Political crisis can be in form of protest, which might affect the demand of products, as well as political violence that makes it hard for the products to penetrating in political crisis zones. ECONOMIC: These are economical factors, which companies uses in forecasting future decisions on investment. These includes interest rate, inflation, standard of living, wages, exchange rate, unemployment rate and the overall economic growth of the country. These economical factors differs in each of the operating countries, which is why before a company venture any country it has to comprehensively analysed the economy of the country considering...
Words: 1236 - Pages: 5
