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AN ANALYSIS OF

COMPANY

An Organizational Analysis
By: Bimple Fyee Leonor
BSA III

Presented to: Dr. Antonio Agustin


Professor

Table of Contents
Brief Profile:................................................................................................................................................2
Mission, Vision & Values of Coca-Cola.....................................................................................................3
Mandate of the Firm....................................................................................................................................6

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Areas of Focus.....................................................................................................................................6
SWOT Analysis – An Analysis of the existing situation or conditions of the firm....................................10
Industry Analysis...................................................................................................................................10
Strengths................................................................................................................................................10
Weaknesses...........................................................................................................................................11
Opportunities.........................................................................................................................................12
Threats...................................................................................................................................................14
An Analysis of the Organization’s:...........................................................................................................14
Mission Statement.................................................................................................................................14
Vision Statement...................................................................................................................................15
Objectives..............................................................................................................................................15
Core Values...........................................................................................................................................16
Strategies...............................................................................................................................................16
Sources......................................................................................................................................................18

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Brief Profile:

The Coca-Cola Company, founded in 1886, is the largest beverage company, refreshing
consumers and serves over 6 billion consumers with nearly 500 sparkling and still brands which varies to
more than 3,500 products including diet and regular sparkling beverages, and still beverages such as 100
percent juices, juice drinks, waters, sports and energy drinks, teas and coffees, and milk- and soy-based
beverages. The company had been incorporated in September 1919 under the laws of the State of
Delaware and succeeded to the business of a Georgia corporation with the same name that had been
organized in 1892. Along with Coca-Cola, recognized as the world’s most valuable brand , the
Company’s portfolio includes 12 other billion dollar brands, including Diet Coke, Fanta, Coca-Cola Zero,
Powerade, Vitaminwater, Sprite, minute maid and Georgia Coffee. Coca-Cola is headquartered in
Atlanta, Georgia but “approximately 3/4 of its products are sold outside the US” (Coca-Cola
Datamonitor). They recorded revenues of $30,990 million in 2009 and they have a $2.93 diluted net
income per share in 2009. Their unit case volume grew 3% to 24.4 billion unit cases worldwide and an
operating cash flow which grew 8% to $8.2 billion as of the year 2009. And as of December 31, 2009, the
firm has 92,800 company associates and daily consumer servings of 1.6 Billion.

The Coca-Cola Company is one of the leading manufacturers, distributors, and marketers of
nonalcoholic beverage concentrates and syrups. They produce nonalcoholic beverage concentrates and
syrups which are sold to bottling partners. The bottlers usually add carbonated water with the
concentrates and sweeteners and then bottle the product and sell it to wholesalers or retailers. Coca-Cola
owns more than 400 brands in which they market for in over 200 different countries on six continents to
businesses and institutions (Coca-Cola Datamonitor, 2010) including retail chains, supermarkets,
restaurants, small neighborhood grocers, sports and entertainment venues, and schools and colleges. The
company continues to expand marketing presence and increase unit case volume growth in most
emerging economies.. Coca-Cola offers a variety more than 3,500 products including diet and regular
sparkling beverages, and still beverages such as 100 percent juices, juice drinks, waters, sports and energy
drinks , teas and coffees, and milk- and soy-based beverage, soft drinks, other beverages. They operate in
eight segments, but most of their revenues come from three of those segments. Their three major
segments are North America, South Asia and the Pacific Rim, and Bottling Investments. Their five other
segments include Europe; North Asia, Eurasia and Middle East; Latin America; Africa; and Corporate.

Mission, Vision & Values of Coca-Cola

The world is changing all around us. To continue to thrive as a business over the next ten years
and beyond, we must look ahead, understand the trends and forces that will shape our business in the
future and move swiftly to prepare for what's to come. We must get ready for tomorrow today. That's
what our 2020 Vision is all about. It creates a long-term destination for our business and provides us with
a "Roadmap" for winning together with our bottling partners.

Mission

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Our Roadmap starts with our mission, which is enduring. It declares our purpose as a company and serves
as the standard against which we weigh our actions and decisions.

 To refresh the world...


 To inspire moments of optimism and happiness...
 To create value and make a difference.

Vision and Objective

Our objective is to use our formidable assets—brands, financial strength, unrivaled distribution system,
global reach, and a strong commitment by our management and employees worldwide—to achieve long-
term sustainable, quality growth. Our vision serves as the framework for our Roadmap and guides every
aspect of our business by describing what we need to accomplish. Our vision for sustainable growth
includes the following:
• People: Being a great place to work where people are inspired to be the best they can be.
• Portfolio: Bringing to the world a portfolio of beverage brands that anticipates and satisfies people’s
desires and needs.
• Profit: Maximizing return to shareowners while being mindful of our overall responsibilities.
• Partners: Nurturing a winning network of partners and building mutual loyalty.
• Planet: Being a responsible global citizen that makes a difference.

 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 and satisfy
people's desires and needs.
 Partners: Nurture a winning network of customers and suppliers, together we create mutual,
enduring value.
 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 overall
responsibilities.
 Productivity: Be a highly effective, lean and fast-moving organization.

Winning Culture
Our Winning Culture defines the attitudes and behaviors that will be required of us to make our 2020
Vision a reality.

Values
Our values serve as a compass for our actions and describe how we behave in the world.

 Leadership: The courage to shape a better future


 Collaboration: Leverage collective genius
 Integrity: Be real

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 Accountability: If it is to be, it's up to me
 Passion: Committed in heart and mind
 Diversity: As inclusive as our brands
 Quality: What we do, we do well

Focus on the Market

 Focus on needs of our consumers, customers and franchise partners


 Get out into the market and listen, observe and learn
 Possess a world view
 Focus on execution in the marketplace every day
 Be insatiably curious

Work Smart

 Act with urgency


 Remain responsive to change
 Have the courage to change course when needed
 Remain constructively discontent
 Work efficiently

Act Like Owners

 Be accountable for our actions and inactions


 Steward system assets and focus on building value
 Reward our people for taking risks and finding better ways to solve problems
 Learn from our outcomes -- what worked and what didn’t

Be the Brand

 Inspire creativity, passion, optimism and fun

Mandate of the Firm

Areas of Focus

Revitalizing the Organization


The Company is focused on driving accountability throughout the organization, leveraging the
internal talent and strengthening the corporate culture. Realizing that their bench strength has been
weakened as a result of prior organizational realignments, they invested in building capability by training
existing associates and hiring experienced individuals from outside the Company. They are revising their
organizational structure to help improve execution around the world and simplifying and clarifying
individual roles and responsibilities.

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Unleashing the System’s Potential
The company’s goal is to drive efficiency and effectiveness throughout the global Coca-Cola
system. This begins with the alignment of our system around shared goals and performance targets – to
work in a collaborative manner with our bottling partners throughout the world.

Driving enhanced revenue growth across the system is a key focus area for both the Company and
bottling partners. The area is centered on tailoring strategies to match shopping occasions, offering
differentiated packages, building value collaboratively with customers, strengthening in-market execution
and supporting our family of brands with strong marketing activities. And to also build system capability
in this area, sharing learning across the system and capitalizing on immediate-consumption opportunities.

Focusing on revenue growth is an enabler for the financial health of the Coca-Cola system as a
whole. Markets where we effectively implemented a segmented brand, package, price and channel
strategy as a system have seen strong results.

Aside from revenue growth, they are also focused on working with bottling partners to reduce
system costs and improve system efficiencies to create a supply chain management company in Japan and
support the creation of a bottler-owned supply chain organization in North America. By pooling the
resources of bottling partners, costs to manufacture products are reduced. This type of supply chain
initiative is being replicated in China and Africa and a number of other markets. Recognizing that their
ability to respond to customers’ needs as a system provides a significant opportunity for future growth the
company committed to improve route to market and responses to customers. For example, in Mexico,
they created a joint sales company for noncarbonated beverages. This sales company is focused on the
efficient sale and distribution of noncarbonated beverages to customers that span multiple bottler
territories.

Executing with Excellence Globally


Business demands excellence in execution. Their business is not overly complicated, but the
company operates in a dynamic, fast-paced environment of global markets and competitive economies.
Excellent execution requires discipline, concrete objectives, routines, reporting, follow-up, asking hard
questions and the desire to take risks. Their goal is to efficiently transfer the knowledge and insights
gained from successes and failures from one market to other markets around the world. The nonalcoholic
beverages segment of the commercial beverages industry provides opportunities for growth, but it will
take a relentless focus on execution to capitalize on those opportunities.

Identifying the several specific areas that provide opportunities for growth and believing that
significant growth potential exists in diet and light products, the company intends to make investments to
accelerate the growth of such products. Believing that the immediate-consumption channel offers
significant growth potential, they plan to expand offerings in this channel, ensuring that their family of
brands is selectively and profitably expanded to address consumers’ changing preferences. In every
market, their focus Is on the financial health of the entire Coca-Cola system, looking for new
opportunities with each customer and allocating resources to maximize the impact of these opportunities.
To capture this growth by focusing on core brands to maximize the potential of each brand and through
additional innovation is the company’s goal.

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Reestablishing Our Marketing Leadership
In 2005, a new Marketing, Strategy and Innovation group was created for Coca-Cola to ensure
that these three functional areas are fully aligned and integrated. Carbonated soft drinks remain a
fundamental and profitable part of the family of brands, and to invest in marketing aggressively is a must
for the family of brands than in the past few years. In addition, the need to further expand new products
pipeline and continue to develop innovation capabilities. Accordingly, they increased marketing and
innovation spending in 2005 and intend to maintain the increased spending level for the foreseeable
future.

Challenges and Risks


Operating in more than 200 countries provides unique opportunities for the Company. Challenges
and risks accompany those opportunities.

Looking forward, management has identified certain challenges and risks that demand the
attention of the nonalcoholic beverages segment of the commercial beverages industry and the Company.
Of these, four key challenges and risks are discussed below.

Obesity and Inactive Lifestyles. Increasing awareness among consumers, public health professionals and
government agencies of the potential health problems associated with obesity and inactive lifestyles
represents a significant challenge to the industry. They recognize that obesity is a complex public health
problem. And their commitment to consumers begins with their broad product line, which includes a wide
selection of diet and light beverages, juice and juice drinks, sports drinks and water products. This
commitment also includes adhering to responsible policies in schools and in the marketplace; supporting
programs to encourage physical activity and to promote nutrition education; and continuously meeting
changing consumer needs through beverage innovation, choice and variety. Hence the company
committed to playing an appropriate role in helping address this issue in cooperation with governments,
educators and consumers through science-based solutions and programs.

Water Quality and Quantity. Water quality and quantity is an issue that increasingly requires attention and
collaboration with the nonalcoholic beverages segment of the commercial beverages industry,
governments, nongovernmental organizations and communities. Water is the main ingredient in
substantially all of their products. It is also a limited natural resource facing unprecedented challenges
from overexploitation, increasing pollution and poor management. The Company is in an excellent
position to share the water-related knowledge developed in the communities served—water-resource
management, water treatment, wastewater treatment systems, and models for working with communities
and partners in addressing water and sanitation needs. The Company is actively engaged in assessing the
specific water-related risks that they and many of their bottling partners face and have implemented a
formal water risk management program. They are working with global partners to develop water
sustainability projects and are actively encouraging improved water efficiency and conservation efforts
throughout their system. As demand for water continues to increase around the world, expectation for
commitment is high, and continued action of the company will be crucial in the successful long-term
stewardship of this critical natural resource.

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Evolving Consumer Preferences. Consumers want more choices. Impacted by shifting consumer
demographics and needs, on-the-go lifestyles, aging populations in developed markets and consumers
who are empowered with more information than ever, they committed to generate new avenues for
growth through their core brands with a focus on diet and light products and to continue to expand the
variety of choices being provided to consumers to meet their needs, desires and lifestyle choices.

Increased Competition and Capabilities in the Marketplace. The Company is facing strong competition
from some well-established global companies and many local players. Hence continuing to selectively
expand into other profitable segments of the nonalcoholic beverages segment of the commercial
beverages industry and re-energizing marketing and innovation is done in order to maintain brand loyalty
and share.

All four of these challenges and risks—obesity and inactive lifestyles, water quality and quantity,
evolving consumer preferences and increased competition and capabilities in the marketplace—have the
potential to have a material adverse effect on the nonalcoholic beverages segment of the commercial
beverages industry and on the Company; however, the management believes that the Company is well
positioned to appropriately address these challenges and risks.

SWOT Analysis – An Analysis of the existing situation or conditions of the


firm

Industry Analysis
The Coca-Cola Company falls in the beverage industry with many other developing companies.
Leading the beverage industry by generating revenues of $30,0990 million, Coca-Cola’s closest
competition in this industry is Coca-Cola Enterprises and Anheuser-Busch. Others that fall into the
industry include Pepsi Bottling, Molson Coors Brewing, Constellation Brands, Pepsi Americas, and
Brown-Forman.

The beverage industry is moving toward the more health conscious consumer. The market is
shifting from soft drinks to juices, sport drinks, and water products. To remain competitive Coca-Cola
must also enter into this market and follow the healthier trends. “ In many European countries, the
increasing consumer trend toward a healthier lifestyle continues to grow demand for functional beverages
that offer physical or mental wellbeing, lower calories and other added values”. Consumers’ value
products that are going to help them live a healthy lifestyle and feel better both physically and mentally.

Strengths
Coca-Cola has a lot of strength in their marketing plan and business – brands, financial strength,
unrivaled distribution system, global reach, and a strong commitment by the management and employees
worldwide and others. They are the world’s leading brand name, and they have a large scale of
operations, and have continuing revenue growth in all of their three segments. Coca-Cola’s three major
segments are Latin America; East, South Asia, and Pacific Rim; and Bottling Investments. These are the
segments that earn the highest revenues. Each of these segments continuously grows in revenues each

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year. The revenues earned in these segments have helped The Coca-Cola Company to grow and expand
(Coca-Cola Datamonitor, 2009).

Coca-Cola’s brand name is valued higher than their biggest competitor, Pepsi. Business Week
valued Coca-Cola at $67,000 million and Pepsi at only $12,690 million. The brand of Coca-Cola is
known globally and allows the company to enter new and emerging markets. Having a strong brand
name also allows them to expand their company by adding products such as Cherry Coke and Coke with
Lemon, and allowing them to meet different consumers’ needs. Coca-Cola owns the brand names of
Coca-Cola, Diet Coke, Sprite, and Fanta which are four of the leading brands in soft drinks (Coca-Cola
Datamonitor, 2009).

Coca-Cola, with large scale operations, is the leader in manufacturing, distributing, and
marketing nonalcoholic beverage concentrates and syrups. Selling in 200 countries, Coca-Cola owns 32
beverage concentrate manufacturing plants. They also own bottle water production and beverage
facilities. The company’s large-scale of operation allows it to feed upcoming markets with relative ease
and enhances its revenue generation capacity. And as fo December 31, 2009, a total of 92,800 associates
with the following composition

THE COCA-COLA COMPANY GLOBAL WORKFORCE: 92,8002

• North America Group 10,800 Bottling Investments 1,200

• Latin America Group 4,200 Bottling Investments 8,400

• Europe Group 2,500 Bottling Investments 13,500

• Eurasia & Africa Group2,500 Bottling Investments 20,300

• Pacific Group 2,600 Bottling Investments 26,800

The company also have a strong network of bottling partners, distributors, wholesalers and
retailers — the world’s largest beverage distribution system. In addition they have noncontrolling
ownership interests in numerous beverage joint ventures, bottling partners and emerging beverage
companies. (Coca-Cola Datamonitor, 2009).

Weaknesses
Coca-Cola has three major weaknesses that occur internally in the company, they include:
negative publicity, poor performance in North America, and decrease in cash from operations. In 2006,
Coca-Cola was accused of selling a product with pesticide residues in India and received negative
publicity. These residues contained harmful chemicals that could damage the nervous and reproductive
systems and could potentially cause cancer. Coca-Cola was plagued with harmful publicity much like this
scenario throughout the year. This type of publicity can affect their brand image and decrease demand for
their products (Coca-Cola Datamonitor, 2009).

Coca-Cola focuses on North America as their major target market; therefore it is important for
them to have a good performance for the target market. In 2006, Coca-Cola did not perform well and its
market growth ceased in North America. The company actually got worse. If this poor performance

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continues, it could affect the overall company’s growth in the future and could allow their competitors to
surpass them (Coca-Cola Datamonitor, 2009).

Coca-Cola had a decrease of 7% in cash flows from operations in the year 2006. This affected the
company by reducing the amount of funds available for Coca-Cola to reinvest in the company (Coca-Cola
Datamonitor, 2007). Coca-Cola must then finance their growth with debt which makes them vulnerable to
interest rates.

Other loss—net amounted to a net loss of $93 million for 2005 compared to a net loss of $82
million for 2004. This line item in 2005 primarily consisted of $23 million in foreign currency exchange
losses, the accretion of $60 million for the discounted value of our liability to purchase CCEAG and the
minority shareowners’ proportional share of net income of certain consolidated subsidiaries.

Other loss—net amounted to a net loss of $82 million for 2004 compared to a net loss of $138 million or
2003, a difference of $56 million. Approximately $37 million of this difference is related to a reduction in
foreign exchange losses. This line item in 2004 primarily consisted of foreign exchange losses of
approximately $39 million, the accretion of $58 million for the discounted value of our liability to
purchase CCEAG shares.

And in 2008 due to the net loss of CCE, a company associate, with the shared loss of $874million
the net income of the company decreased.

Opportunities
Major opportunities for growth for Coca-Cola include acquisitions, the bottled water market, and
the growing Hispanic population in the United States. This growing demographic segment gives Coca-
Cola an opportunity to try and reach new consumers and expand their product lines. Some acquisitions of
the Coca-Cola Company are Kerry Beverages Limited in 2006 which is headquartered in Hong Kong. By
acquiring Kerry Beverages Limited Coca-Cola gained control over distribution and manufacturing joint
ventures in nine major Chinese provinces (Coca-Cola Datamonitor, 2007). They also acquired Apollinaris
in Germany, which sells sparkling and mineral water. Coca-Cola also took over TJC Holding, a bottling
company located in South Africa. They even acquired companies in Australia and New Zealand. This
enabled Coca-Cola to have a strong hold on the global market, which as a result helped their international
operations grow and get stronger. It also gives them an opportunity for growth and to enter into new
markets.

The increasing health conscious market is just one of the new markets that Coca-Cola has shown
a growing interest in, like the bottled water market. “Bottled water is one of the most fast-growing
segments in the world’s food and beverage market owing to increasing health concerns (Coca-Cola
Datamonitor, 2009).

Operating in more than 200 countries provides unique opportunities for the Company that
demand the attention of the nonalcoholic beverages segment of the commercial beverages industry and
the Company.

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Increasing awareness among consumers, public health professionals and government agencies of
the potential health problems associated with obesity and inactive lifestyles represents a significant
challenge to the company to expand product line meeting changing consumer needs through beverage
innovation, choice and variety. And to widen more the company’s broad product line selection of diet and
light beverages, juice and juice drinks, sports drinks and water products.

Consumers want more choices. Impacted by shifting consumer demographics and needs, on-the-
go lifestyles, aging populations in developed markets and consumers who are empowered with more
information than ever, the company can generate new avenues for growth through core brands with a
focus on diet and light products and to continue to expand the variety of choices being provided to
consumers to meet their needs, desires and lifestyle choices.

Threats
Even a large and successful company like Coca-Cola has external threats. Three of their major
threats are intense competition, dependence on bottling partners, and slow growth of carbonated
beverages. The nonalcoholic beverage industry is highly competitive, leaving Coca-Cola with many
competitors in their industry. Their largest ones are PepsiCo, Nestle, Cadbury Schweppes, Groupe
Danone, and Kraft Foods. This intense competition influences Coca-Cola and their strategies. Key aspects
that are affected are pricing, advertising, sales promotion programs, product innovation, and brand and
trademark (Coca-Cola Datamonitor, 2009).

The high dependence Coca-Cola has on their partners and suppliers makes them vulnerable. Most
of the revenue that Coca-Cola generates comes from selling concentrates and syrups to bottlers, in which
they have no ownership control. These distributors and bottling partners make their own business
decisions and Coca-Cola has no say in the choices they make. Not having control over a major aspect of
their business is a major threat. (Coca-Cola Datamonitor, 2009).

The availability and quality of water, inflation, foreign currency exchange fluctuations, and fuel
prices adverse changes affects the company. Due to the pronounced limitation of water resources which is
their main ingredient in substantially all of their products, the company is faced with the threat of
insufficiency of materials needed for the operation. And lastly the fluctuations and inflations, like its
effects to any other business puts the company in a situation that when adverse change occurs, losses will
be realized.

An Analysis of the Organization’s:

Mission Statement
Their Mission statement is short but nonetheless creative and meaningful. It promotes curiosity
and inquisition, is clear and understandable. It clearly specifies what kind of business they are and the
products and services they offer. The statements can also serve as a basis for decision making because
they are like the company’s established threshold for each of their products and services. Not only that, it
also serves as the benchmark for every employees and people in the organization wherein they could get
their own thoughts and ideas for the improvement of the company. It is a great to mission statement –

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very fitting for the company as well as for the industry that nothing can be thought of to further improve
the statement.

Their statement clearly is a helping hand to the company to have a growing profit margin. The
consolidated net income for 2009 and 2007 are $6,906million and $6,027million respectively, meaning
with just a 2-year interval, the 2009 profit is better off than 2007 with a total advantage of $879million.

Vision Statement
The Vision of Coca-Cola which is the 2020 vision is truly a great one for it is realistic, credible,
has attractive future. It is simple and short and describes clearly a preferred and meaningful state which is
for them to win together with their bottling partner. It is powerful to the ears which gives off the aura of
perseverance to resource usage maximization hence it creates he fire to achieve every goals mentioned. It
is strategic and timely because the vision was crafted in view and consideration of the present trends and
forces in the market and industry where the company is, for its future stability. It has a motivating force to
continue achieve sustainable quality growth and to know and satisfy people’s desire and needs. The
words used were easy to understand and promotes imagination which burns every employee’s desire and
inspire every decision makings.

Objectives
The objectives of the company are clear and understandable. It clearly states that the company
wants to achieve long-term sustainable, quality growth using formidable assets—brands, financial
strength, unrivaled distribution system, global reach, and a strong commitment by the management and
employees worldwide. It is clearly helpful in the attainment accomplishment of the company’s mission
and vision statements. It is a challenging objective because of the presence of many factors against the
easy realization of the objective but it is nonetheless attainable, realistic and relevant. The objective is
established in both areas of organizational performance and organizational capability to perform because
it tactfully stresses what should be done accordingly. Although it does not state a specific method for
measuring the results, it is implied from the statement that when the company is achieving constantly and
inevitably sustainable quality growth, it is then that the company is achieving the stated objective of the
company.

Core Values
The core value of Coca-Cola Company creates a good code which is clear enough and easy to
understand and inculcate in every employees’ and officers’ lives. It is so particular and specific which
makes it easy to determine each personnel’s’ own code or rule and responsibility to follow and to do. It
creates a clear cut point of view to every responsibility. It also creates and gives opportunity and chance
for the employees to change for the better. It enhances not only business related skills and capabilities but
also human and business ethics of every employees.

Strategies
The Company’s adapted strategies are both successful and unsuccessful for the past years but the
present strategies for the company are both appropriate and clear in all functions of the business. Clearly

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they have the best strategy for marketing because Coca-cola is the world’s leading brand today. The
Coca-Cola Company has increased its product mix width since 1960. This enabled the Coca-Cola
Company to spread risk across many product lines rather than depend only on one and to help generate
sales and boost profits within its organization but the result was a success for the company generates more
revenues than competing rivals. Though this is costly for the company, the result was much beneficial and
it exceeds the costs incurred to attain. This strategy is worth doing for it emphasizes the attainment of
company’s goals and objectives. The Coca-Cola Company also increases its product mix and broadens its
market by the innovation of new juice and sport drink products. This fairly large product mix enables the
Coca-Cola Company to satisfy the needs of their consumers’ thirst, whatever it may be. This type of
product mix allows the Coca-Cola Company to achieve its mission statement in which it states that it
wants to “refresh the world” (Coca-Cola Company, 2009). Their innovation and introduction of new
products as well as their “winning culture” has helped them begin to grow again worldwide. This is a
timely strategy for it is sensitive to the consumers’ behavior. Place and distribution strategies are
“concerned with making products available when and where customers want them” (Hair, Lamb, &
McDaniel, 2006, p. 48). The Coca-Cola Company states in its mission statement that it wants to offer its
products to all consumers globally (Coca-Cola Company, 2006). The Coca-Cola Company uses
intermediaries (i.e. retailers and distributors) instead of directly selling to distribute its products
worldwide (Coca-Cola Datamonitor, 2007). The Coca-Cola Company also uses intensive distribution
strategies to make sure their products can be available everywhere. One low profile type of retailing that
the Coca-Cola Company does to increase its distribution of its product is the use of automatic vending
machines. These can be found in a number of places, such as schools and concert venues. Since the
Coca-Cola Company operates on a global scale, their promotional strategy needs to consider the external
environment in which their products are. These external environmental factors include culture, economic
and technological development, political structure, demographic makeup and natural resources. ). In
addition, the Coca-Cola Company often has to adapt its advertisements in different cultures. This made
their products more well-known and acceptable hence it boosted revenues. The Coca-Cola Company also
uses publicity to try and create a good company image. An example of this is when the Coca-Cola
Company invested 60 million dollars in creating a recycling plant in South Carolina. By creating this
plant the Coca-Cola Company hopes to help eliminate carbon dioxide emissions and recycle a vast
majority of their plastic bottles. This effort in trying to help reduce the carbon dioxide emissions
strengthens the Coca-Cola Company image of wanting to create value and make a difference everywhere
they go.

To stay competitive, Coca-Cola conducts marketing research to try and better understand their
consumers. Coca-Cola creates products and services that will help fit into the needs and wants of their
marketplaces. They have found that people expect more from their beverages. To try and fill this desire
Coca-Cola has developed the Beverage Institute For Health and Wellness. Coca-Cola within the last
decade has been slowly grasping the idea of introducing and emphasizing products that may not be
profitable in certain regions to other cultures where they may find value in such a product. For instance,
Coke Zero is a product that carries no carbohydrates or calories and was not quite meeting the expected
profits in the United States, but Coca-Cola started to advertise it more in Europe to areas that to enjoy it.
This region seemed more concerned about their health and wellbeing, which contributed to Coke Zero
becoming more of a profitable product. Coca-Cola also develops interesting marketing techniques such as
business to business strategies to make their products more appealing to the younger generations.
According to marketing research, younger generations will pay more attention to consumer products
when they are advertised in a modern and ‘hip’ way. For example, Coca-Cola united with iTunes, so that
whenever someone purchased a Coca-Cola product they would receive free songs to promote both
products (Fuhrman, 2007).Since in younger generations are very music oriented. This relationship proves
to be effective in promoting their products and attracting to the youth.

So over-all, the strategies of the firm has made it possible for them to achieve their goals, objectives, and
mission and vision statements so the company has a present strategy that is not only working but is
remarkable bringing the company to the top, Coca-Cola Company as the World’s leading brand and
number one in the beverage industry.

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Sources

Truini, J. (2007, September 17). Beverage maker plans biggest plastics plant. Waste News, 13. (10), 4-4.
Retrieved October 9, 2007, from Business Source Premier database.

Coca-cola Annual Review (2009)

Coca-Cola Company website.

Facts Sheets, Annual Reports, Business profiles and data monitors.

Flagg, Michael. (1999, November 29). Pepsi Siphons Off Some of Coke's Lead In China by Learning to
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