COMPARATIVE STUDY OF CORPORATE STRAREGY OF THE COCACOLA COMPANY

COMPARATIVE STUDY OF CORPORATE STRAREGY OF THE COCACOLA COMPANY

INTRODUCTION

Coca-Cola is a carbonated soft drink sold in stores, restaurants, and vending machines in more than 200 countries.[1] It is produced by The of Atlanta, Georgia, and is often referred to simply as Coke (a registered trademark of The Coca-Cola Company in the United States since March 27, 1944). Originally intended as a patent medicine when it was invented in the late 19th century by John Pemberton, Coca-Cola was bought out by businessman Asa Griggs Candler, whose marketing tactics led Coke to its dominance of the world soft-drink market throughout the 20th century.

The company produces concentrate, which is then sold to licensed Coca-Cola bottlers throughout the world. The bottlers, who hold territorially exclusive contracts with the company, produce finished product in cans and bottles from the concentrate in combination with filtered water and sweeteners. The bottlers then sell, distribute and merchandise Coca-Cola to retail stores and vending machines. Such bottlers include Coca-Cola Enterprises, which is the largest single Coca-Cola bottler in North America and Western Europe. The Coca-Cola Company also sells concentrate for soda fountains to major restaurants and food service distributors.

The Coca-Cola Company has, on occasion, introduced other cola drinks under the Coke brand name. The most common of these is Diet Coke, with others including Caffeine-Free Coca-Cola, Diet Coke Caffeine-Free, Coca-Cola Cherry, Coca-Cola Zero, Coca-Cola Vanilla, and special versions with lemon, lime or coffee.

Coca-Cola

Type Soft drink

Manufacturer The Coca-Cola Company

Country of origin United States

Introduced 1886

Color Caramel E-150d

Flavor Cola, Cola Cherry, Cola Vanilla, Cola Green

Tea, Cola Lemon, Cola Lemon Lime, Cola

Lime, Cola Orange and Cola Raspberry.

Variants See Brand portfolio section below

Related products Pepsi

RC Cola

Cola Turka

Zam Zam Cola

Mecca-Cola

Virgin Cola

Parsi Cola

Qibla Cola

Evoca Cola

Corsica Cola Breizh Cola

COMPARATIVE STUDY OF CORPORATE STRAREGY OF THE COCACOLA COMPANY

Based on Interbrand's best global brand 2011, Coca-Cola was the world's most valuable brand.

HISTORY

Coca-Cola Enterprises, established in 1986, is a young company by theStandards of the Coca-Cola system. Yet each of its franchises has a strongHeritage in the traditions of Coca-Cola that is the foundation for this company.The Coca-Cola Company traces it’s beginning to 1886, when an AtlantaPharmacist, Dr. John Pemberton, began to produce Coca-Cola syrup for sale inFountain drinks. However the bottling business began in 1899 when twoChattanooga businessmen, Benjamin F. Thomas and Joseph B. Whitehead,Secured the exclusive rights to bottle and sell Coca-Cola for most of the United

States from the Coca-Cola Company

The Coca-Cola bottling system continued to operate as independent, localBusinesses until the early 1980s when bottling franchises began to consolidate.In 1986, The Coca-Cola Company merged some of its company-owned operationsWith two large ownership groups that were for sale, the John T. LuptonFranchises and BCI Holding Corporation's bottling holdings, to form Coca-ColaEnterprises Inc. The Company offered its stock to the public on November 21,1986, at a split-adjusted price of $5.50 a share. On an annual basis, total unit

Case sales were 880,000 in 1986

In December 1991, a merger between Coca-Cola Enterprises and theJohnston Coca-Cola Bottling Group, Inc. (Johnston) created a larger, strongerCompany, again helping accelerate bottler consolidation. As part of the merger,The senior management team of Johnston assumed responsibility for managingThe Company, and began a dramatic, successful restructuring in 1992.Unit case

Sales had climbed to 1.4 billion, and total revenues were $5 billion

The Fact of Coca-ColaCoca-Cola enterprise has a good policy to control their employee, and theirWorkplaces are based on Workplace Rights policy is guided by international human rights Standard, of course every company should have. They are not only make the

COMPARATIVE STUDY OF CORPORATE STRAREGY OF THE COCACOLA COMPANY

profit, but they give back the benefit to consumer and be friendly with the environment, like they was associated with WWF to help conserve and protect fresh water resources throughout the world. In 2004 Coke Chairman and CEO devised a plan to revive Coke, the included several strategic initiatives including innovation, increasing marketing investment and introducing new products. A part of the plan to revive is “The Coke side of life”. Coca Cola was paying attention to what people from different cultures and background like to drink, and where and how they want to drink it. They try to make the consumer like and accept coca cola products and make sure that Coca Cola is their first choice.

Mission and Vision statement analysisMissionCoca-Cola wants to satisfy people around the world with the best-branded beverages. They must first start from the inside to become a successful company. All employees are treated equally and are encouraged to contribute their ideas to the company. Teamwork within the company contributes to great customer service. Outside the company, Coca-Cola works alongside with local leaders to establish closeness as a community. Coca-Cola becomes a part of a community to contribute to education, health, wellness, and diversity. Coca-Cola believes that customers’ tastes are always changing therefore Coca-Cola keeps on making new products to satisfy their needs. Coca-Cola is a local company in over 200 countries. The quality is a huge factor in serving people. All products going out are checked thoroughly by employees before reaching the consumer. Inside and outside help contribute to Coca-Cola staying on top of the marketplace. Employees work their hardest to deliver the best product. While expanding into the world, Coca-Cola makes sure that the community isBeing treated to the greatest extent.

VisionTheir vision serves as the framework for the Roadmap and guides every aspect of theirBusiness by describing what they need to accomplish in order to continue achievingSustainable, quality growth.

People: Be a great place to work where people are inspired to be the best they can be.

Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate andSatisfy people's desires and needs.

Partners: Nurture a winning network of customers and suppliers, together we createMutual, enduring value.

COMPARATIVE STUDY OF CORPORATE STRAREGY OF THE COCACOLA COMPANY

Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities.

Profit: Maximize long-term return to shareowners while being mindful of our overallResponsibilities.

Productivity: Be a highly effective, lean and fast-moving organization.

PRODUCT LINE

Energy drinks: now people are taking energy drinks as quick pick me up to energize themselves. Most popular are burn, gladiator

Soft drinks: non alcoholic and carbonated drinks that is offered in different flavors, sweetener’s ang colors. most famous are coca cola, Fanta, sprite, diet coke, coke zero

Juices: juice in our more than 100 juice and juice drink brands, offering both adults and children nutritious, refreshing and flavorful beverages .famous juices include minute maid juice range

Water: water beverages offer hydration in its purest form.dassani water,vio and many

COMPARATIVE STUDY OF CORPORATE STRAREGY OF THE COCACOLA COMPANY

more are products of coca cola company

Sports drinks: it is mostly used by professional athletes and excersie enthusiast. It includes fuze, power race, power zero and others

Tea and coffee: coca cola is also offering bottled and canned teas and coffee so that people can take them conveniently anywhere and can enjoy with traditional tea and growing culture of coffee. It includes honest tea, deeppersso and many more

Coca cola company is not offering a limited no. Of products but it is dealing with more than 500 brands and offering 3500+ beverages and also offering milk products and soups. Coca cola products are serving people for nutrition, refreshment and other needs

Coca-Cola strategic management

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. However, over the last ten years, the firm has struggled to reach its financial objectives and has been associated with a number of ethical crises. Warren Buffet served as a member of the board of directors and was a strong supporter and investor in Coca-Cola but resigned from the board in 2006 after several years of frustration with Coca-Cola's failure to overcome many challenges.

Many issues were facing Doug Investor when he took over the reins at Coca-Cola in 1997. Investor was heralded for his ability to handle the financial flows and details of the soft-drink giant. Former-CEO Roberto Goizueta had carefully groomed Investor for the top position that he assumed in October 1997 after Goizueta's untimely death. However, Investor seemed to lack leadership in handling a series of ethical crises, causing some to doubt "Big Red's" reputation and its prospects for the future. For a company with a rich history of marketing prowess and financial performance, Ivester's departure in 1999 represented a high-profile glitch on a relatively clean record in one hundred years of business. In 2000 Doug Daft, the company's former president and chief operating officer, replaced Investor as the new CEO. Daft's tenure was rocky, and the company continued to have a series of negative events in the early 2000s. For example, the company was allegedly involved in racial discrimination, misrepresenting market tests, manipulating earnings, and disrupting long-term contractual arrangements with

COMPARATIVE STUDY OF CORPORATE STRAREGY OF THE COCACOLA COMPANY

distributors. By 2004 Daft was out and Neville Is dell had become president and worked to improve Coca-Cola's reputation.

Strategic intent

Coca-Cola’s strategic intent was for their tube a Coke within the reach of every human being on the planet. This seemed like a crazy idea at the time, but think about how prevalent Coke

products are these days. By setting a developing a vision of the future and developing long-term goals, Coca-Cola made enormous strides in developing their brand.

STRATEGY

One of our goals is to maximize growth and profitability to create value for our

shareholders. Our efforts to achieve this goal are based on: (1) transforming our

commercial models to focus on our customers’ value potential and using a value-based

segmentation approach to capture the industry’s value potential, (2) implementing multi-

segmentation strategies in our major markets to target distinct market clusters divided

by consumption occasion, competitive intensity and socioeconomic levels; (3)

implementing well-planned product, packaging and pricing strategies through different

distribution channels; (4) driving product innovation along our different product

categories and (5) achieving the full operating potential of our commercial models and

processes to drive operational efficiencies throughout our company.

Business Level strategy of Coca   Cola Coca Cola with its fizzy flavor in fashionable bottles attracts its main target:  youths.

Everyone likes to take Coca Cola with them wherever they go as Coca Cola fashionable

bottles are convenient to take out. Coca Cola has many customers in 206 countries.

With consideration for its customers, Coca Cola innovates different flavors.  For people

COMPARATIVE STUDY OF CORPORATE STRAREGY OF THE COCACOLA COMPANY

who do not like drinking pop will become liking to taste Coca Cola by watching its

advertisement — one of its reach point to customers. By taking chance of the

emergence of the technology, Coca Cola targets to get more customers on Facebook

and twitter.

Why people still like Coca Cola is obvious to see –Coca Cola has been using all

differentiation and low cost strategies. Customers satisfaction increases; Coca Cola has

no problem to introduce its innovated products. Moreover, Coca Cola gives its

customers more information about beverages by having a big museum in Atlanta. Not

only customers like the fizzy Coca Cola flavor but also they like Coca Cola’s positive

mission, vision, and slogans — are persuasive and positive. With customers support,

Coca Cola also satisfies its suppliers, bottlers. Coca Cola’s employees are loyalty.

However, maintaining its shareholders and customers satisfaction, time after time, while

producing differentiated low-cost beverages will be a puzzle question for Coca Cola

CEO, Muhtar Kent.

Corporate-level strategy:   Corporate-level strategy Diversification the Coca-Cola produced new RTD (Ready-To-

Drink) coffee with Italy-based café. International expansion their products are launched

in more than 200 countries.

Three levels of plan : 

Three levels of plan The corporate-level plan …How to manage their affiliates The

business-level plan …To make a connection to restaurants etc The functional-level plan

…How to advertise their products

Structure : 

Structure Coca-Cola company’s structure Hybrid Structure The company includes many

organizations. Ex. Allen & Company Incorporated, Delta Air Lines, Hearst Magazines,

and Expedia. We will show the company’s figure

Environment: 

Environment the Company’s environment is faster than other companies. The company

has to change drinks to fit taste and flavor into season or public demand. Fast!!!

COMPARATIVE STUDY OF CORPORATE STRAREGY OF THE COCACOLA COMPANY

Other Organizational Structures: 

Other Organizational Structures 1. Technology Routine 2. Human resources Skilled and

non-skilled 3. Strategy Decentralized

Other Concepts: 

Other Concepts The company’s hierarchy is “Tall” They need to have many level

positions to put together thinking from each organization. The company has “liaison

role”. The role is connecting between Coca-Cola and McDonald’s.

Ethics: 

Ethics Code of business Conduct It guides their business conduct, requiring honesty

and integrity in all matters The Global Workplace Rights Policy It is to relate to the

organization and their employees

Competitive AdvantageMarket Leadership. Coca-Cola FEMSA is the largest bottler of Coca-Cola trademark beverages in the world in terms of total sales volume, with operations in Mexico, Guatemala, Nicaragua, Costa Rica, Panama, Colombia, Venezuela, Argentina and Brazil.Business partnerships. Coca-Cola FEMSA is working together with the Coca-Cola Company to develop more advanced joint business models to continue exploring and participating in new lines of beverages, extending existing product lines and effectively advertising and marketing our products. As partners, we have a shared incentive to capture important growth opportunities in Latin America’s fast-growing, but under-developed non-carbonated beverage segment, developing and expanding our still beverage portfolio through innovation, strategic acquisitions and by entering into agreements to jointly acquire companies with The Coca-Cola Company.Strong brand portfolio. The company offers a powerful and wide portfolio of beverages to its customers and consumers, and continuously explores promising beverage categories to capture growth in its different markets. To get closer to its customers and help them to satisfy consumers’ expanding needs, Coca-Cola FEMSA has become a one-stop shop for its retailers by offering a complete beverage portfolio - including carbonated soft drinks, bottled water, juices, orangeades, isotonics, teas, energy drinks, milk, coffee and even beer in some markets such as Brazil.

COMPARATIVE STUDY OF CORPORATE STRAREGY OF THE COCACOLA COMPANY

Collaborative customer relationships. As an organization, Coca-Cola FEMSA continually looks to deepen its customer relationships. Our company is working closely with its largest clients to develop stronger multi-faceted relationships. Among the company’s initiatives, are tailoring its extensive portfolio of products and packages for their stores - based on the local market’s socioeconomic demographics, relevant consumption occasion and the store’s distinctive characteristics. We partner with our customers on multiple fronts-from knowledge management and capabilities development to go-to-market and point-of-sale execution-to ensure each and every shopper’s trip counts.Channel Marketing. In order to provide more dynamic and specialized marketing of our products, our strategy is to classify our markets and develop targeted efforts for each consumer segment or distribution channel. Our principal channels are small retailers, “on-premise” consumption such as restaurants and bars, supermarkets and third party distributors. Presence in these channels entails a comprehensive and detailed analysis of the purchasing patterns and preferences of various groups of beverage consumers in each of the different types of locations or distribution channels. In response to this analysis, we tailor our product, price, packaging and distribution strategies to meet the particular needs of and exploit the potential of each channel.Multi-Segmentation. We have been implementing a multi-segmentation strategy in the majority of our markets. This strategy consists of the implementation of different product/price/package portfolios by market cluster or group. These clusters are defined based on consumption occasion, competitive intensity and socio-economic levels, rather than solely on the types of distribution channels.Client Value Management. We have been transforming our commercial models to focus on our customers’ value potential using a value-based segmentation approach to capture the industry’s potential. We have started the rollout of this new model in our Mexico, Brazil, Colombia and Central America operations.Go-to-market strategies. We continuously evaluate our distribution model in order to fit with the local dynamics of the marketplace and analyze the way we go to market, recognizing different service needs from our customers—from traditional mom-and-pop retailers to modern hyper and supermarkets—, while looking for a more efficient distribution model. As part of this strategy, we are rolling out a variety of new distribution models throughout our territories looking for improvements in our distribution network.

COMPARATIVE STUDY OF CORPORATE STRAREGY OF THE COCACOLA COMPANY

Flexible sales and distribution models. We use several sales and distribution models depending on market, geographic conditions and the customer’s profile: (1) the pre-sale system, which separates the sales and delivery functions, permitting trucks to be loaded with the mix of products that retailers have previously ordered, thereby increasing both sales and distribution efficiency, (2) the conventional truck route system, in which the person in charge of the delivery makes immediate sales from inventory available on the truck, (3) a hybrid distribution system, where the same truck carries product available for immediate sale and product previously ordered through the pre-sale system, (4) the telemarketing system, which could be combined with pre-sales visits and (5) sales through third-party wholesalers of our products.Full Operating Potential. More with less is a key part of the Coca-Cola FEMSA corporate culture. The company continually seeks to optimize manufacturing and distribution capacity to maximize operating efficiency, adapting its organizational processes to address changing competitive, economic, and sociopolitical environments. In addition, we rely on state-of-the-art market intelligence systems that enable the company to execute and refine its channel-marketing and multi-segmentation strategies, consistent with customers’ and consumers’ purchasing patterns and preferences.Managerial expertise. We focus on management quality as a key element of our growth strategy and remain committed to fostering the development of quality management at all levels. Both FEMSA and The Coca-Cola Company provide us with managerial experience. To build upon these skills, we also offer management training programs designed to enhance our executives’ abilities and to provide a forum for exchanging experiences, know-how and talent among an increasing number of multinational executives from our new and existing territories.Sustainable Development. Sustainable development is an important pillar of our Company’s strategy. We continually develop programs that ensure the creation of social and economic value by fostering the quality of life of our employees, promoting a culture of health and well-being, supporting our surrounding communities and minimizing our operations’ environmental impact.

Strategies analysis

COMPARATIVE STUDY OF CORPORATE STRAREGY OF THE COCACOLA COMPANY

The Coca Cola Company doesn’t want just their business growth, but they want a sustainable growth and meet the long term goal in the future. The Coca Cola Company has a clear vision and goals to achieve long term growth. Coca Cola leads their strengths, carbonated soft drinks remain their most profitable business and Coca Cola is the most popular brand in the world. The Coca Cola look forward to generate the new energy through core brands that focus on health and wellness. It is the opportunity for Coca Cola to capture. The people around the world used to recognize family of brands, that Coca Cola deliver more than 3,000 beverages to 200 countries around the world, not just soft drinks, but juice, sport drinks, water. Coca Cola maintain the trust local in every community and looking ahead to anticipate from communities, what they need and want, to gathering resources to support them. The Coca Cola company also help their retail customer to increase their sales by launched many products and developed a model to maximize their sales.

The brand development strategy of Coca Cola comprised redesigning of its brandDevelopment policies and techniques to keep up with the changing attitude of its consumer,

This brand believe in the following1. Afford ability: Coca Cola guarantees it offers the suitable price that all consumersCan afford. Coca Cola aim to reach as many consumers as possible with offer inQuality product and packages.

2. Availability: Coca Cola place their range of the products within easy reach ofConsumers in the right package, in the right location, and at the right time. CocaCola make sure that their brands are available anywhere consumers wantRefreshment, and can buy it whenever they want.

3. Acceptability: Coca Cola supplies an extensive and growing range of products toMeet the highest quality standard in each country, increasing their acceptability toConsumers. Coca Cola has the detailed understanding of consumer needs andAccess to the most effective communication channels. Coca Cola make consumersLike and accept coca cola and make them feel happy to buy and drink thisBeverage.

4. Price value: consumers are not only can afford to buy but also can get benefitsOver their gives from coca cola products.

5. Pervasive: make consumers can buy at everywhere at any time.

COMPARATIVE STUDY OF CORPORATE STRAREGY OF THE COCACOLA COMPANY

6. Preference: make consumers not only like and accept coca cola products, but alsoAre partial to the coca cola brands. To make sure Coca Cola is their first choice

Company financials

Year-on-year growth rate of coca cola2007-2011