THE COCA-COLA COMPANY

FACULTY OF ECONOMICS AND ADMINISTRATIVE SCIENCES

BUSINESS ADMINISTRATION

BUSINESS-103

ASSIGNMENT-2

TABLE OF CONTENTS

1- INTRODUCTION 1.1 BACKGROUND (Page 3) 1.2 PRODUCTS, MARKETS (Page3) 1.3 KEY COMPETITORS (Page 3)

2- MISSION, VISION, PRIMARY VALUES (Page 3-4)

3- SWOT ANALYSIS (Page 4-5-6)

4- CONCLUSION (Page 6) 4.1 OBJECTIVES (Page ) 4.2 STRATEGIC RECOMMENDATIONS PREFERENCES (Page )

1- INTRODUCTION 1.1 BACKGROUND The Coca-Cola Company is a beverage company, manufacturer, distributor, and marketer of non-alcoholic beverage concentrates and syrups. The Coca-Cola company owns 2

or licenses more than 400 brands which include light and diet beverages, juice drinks, coffees, teas, waters, sports and energy drinks. The Coca-Cola Company was originally established as the J. S. Pemberton Medicine Company, a co-partnership between Dr. John Stith Pemberton and Ed Holland. The company was formed to sell three main products which are Pemberton's French Wine Cola , Pemberton's Indian Queen Hair Dye, and Pemberton's Globe Flower Cough Syrup. In 1884, the company became a stock company and the name was changed to Pemberton Chemical Company. Pemberton stayed on as the supervisor. The company's factory was located at No. 107, Marietta St. Three years later, the company was again changed to Pemberton Medicine Company, another co-partnership, this time between Pemberton, A. O. Murphy, E. H. Bloodworth, and J. C. Mayfield. In October 1888, the company received a charter with an authorized capital of $50,000. The charter became official on January 15, 1889. By this time, the company had expanded its offerings to include Pemberton's Orange and Lemon Elixir. 1.2 PRODUCTS, MARKETS The Coca-Cola Company offers approximately 400 brands in over 200 countries.They produce diet and regular sparkling beverages to still beverages such as 100 percent fruit juices and fruit drinks, waters, sports and energy drinks, teas and coffees, and milk-and soy-based beverages, their variety spans the globe. Their most famous product is Coca-Cola. 1.3 KEY COMPETITORS Around the world, some local brands compete with Coca-Cola Company. Coca-Cola's main global competitor is Pepsi. In Turkey, Cola Turka is a major competitor to Coca-Cola. Also, Cadbury and Cott Companies compete with Coca-Cola Company everytime.

2. MISSION, VISSION AND PRIMARY VALUES Their Roadmap starts with their mission, which is enduring. It declares their aim as a company and serves as the standard against which they consider their actions and decisions. * To refresh the world. * To inspire moments of optimism and happiness. * To create value and make a difference. Their vision serves as the framework for their Roadmap and guides every aspect of their business by describing what they need to accomplish in order to continue achieving sustainable, 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 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. 3

Their values serve as a compass for their actions and describe how they behave in the world. * Leadership: The courage to shape a better future * Collaboration: Leverage collective genius * Integrity: Be real * 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 3.SWOT ANALYSIS STRENGTHS -Popularity -Well known -Branding obvious and easily recognized -A lot of finance -Customer loyalty -International trade THREATS -Changing healthconsciousness attitude -Legal issues -Health ministers -Competition WEAKNESSES -Word of mouth -Lack of popularity of many Coca Colas brand -Most unknown profile or non-existent advertising -Health issues OPPORTUNITIES -Many successful brands to pursue -Advertise its less popular poducts -Buy out competition -More brand recognition

INTERNAL

EXTERNAL

Strengths- Coca Cola is an extremely recognizable company. Popularity is one of its superior strengths that is virtually incomparable. Coca Cola is known very well worldwide. It's branding is obvious and easily recognized. Things like, logos and promos shown on t-shirts, hats, and collectible memorable.. Without a doubt, no beverage company compares to Coca Cola's social popularity status. Some people buy coke, not only because of its taste, but because it is widely accepted and they feel like they are part of something so big and unifying. At the other end of the spectrum, certain individuals choose not to drink coke, based solely on rebelling from the world's idea that coke is something of such great power. Overwhelming is the best word to describe Coca Cola's popularity. It is scary to think that its popularity has been constantly growing over the years and the possibility that there is still room to grow. If you speak the words Coca Cola, it would definitely be recognized all around the world. Money is another thing that is a strength of the company. Coca Cola deals with massive amounts of money all year. Like all businesses, they have had their ups and downs financially, but they have done well in this compartment and will continue to do well and improve. The money they are earning is substantially better than most beverage companies, and with that money, they put back into their own company so that they can improve. Another strength that is very important to Coca Cola is customer loyalty. Many people/families are extremely loyal to Coca Cola. It would not be rare to constantly find bottles and cases of a 4

product such as coke in a house. It seems that some people would drink coke religiously like some people would drink water and milk. If two parents were avid Coca Cola drinkers, this will be passed down do their children as they grow loyal to the company. Weaknesses- Coca Cola is a very successful company, with limited weaknesses. However they do have a variety of weaknesses that need to be addressed if they want to rise to the next level. Word of mouth is probably a strength and weakness of every company. While many people have good things to say, there are many individuals who are against Coca Cola as a company, and the products in which they produce. Word of mouth unfortunately is something that is very hard to control. While people will have their opinions, you have to try to sway their negative views. If bad comments and views are put out to people who have yet to try Coca Cola products, then that could produce a lost customer which shows why word of mouth is a weakness. Another aspect that could be viewed as a weakness is the lack of popularity of many of Coca Colas drinks. Many drinks that they produce are extremely popular such as Coke and Sprite but this company has approximately 400 different drink types. Most are unknown and rarely seen for available purchase. These drinks do not probably taste bad, but are rather a result of low profile or non existent advertising. This is a weakness that needs to be looked at when analyzing their company. Another weakness that has been greatly publicized is the health issues that surround some of their products. It is known that a popular product like coke is not very beneficial to your body and your health. With todays constant shift to health products, some products could possibly loose customers. This new focus on weight and health could be a problem for the product that are labeled detrimental to you health. Opportunities- Coca Cola has a few opportunities in its business. It has many successful brands that it should continue to exploit and pursue. Coca Cola also has the opportunity to advertise its less popular products. With a large income it has the available money to put some of these other beverages on the market. This could be very beneficial to the company if they could start selling these other products to the same extent that they do with their main products. Another opportunity that we have seen being put to use before is the ability for Coca Cola to buy out their competition. This opportunity rarely presents itself in the world of business. Coca Cola has bought out a countless number of drink brands. An easy way to turn their profit into your profit is too buy out their company. Even though this may cost a large amount of money initially, in the long run, if all goes to plan, it results in a large profit. Also, the company will no longer need to worry about this product being part of the competition. Brand recognition is the significant factor affecting Cokes competitive position. Coca Cola is known well throughout 90% of the world population today. Now Coca Cola wants to get there brand name known even better and possibly get closer and closer to 100%. It is an opportunity that most companies will ever dream of, and would be a supreme accomplishment. Coca Cola has an opportunity to continue to widen the gap between them and their competitors. Threats- Despite the fact that Coca Cola dominates its market, it still has to deal with many threats. Even though Coca Cola and Pepsi control nearly 40% of the entire beverage market, the changing health-consciousness attitude of the market could have a serious effect on Coca Cola. This definitely needs to be viewed as a dominant threat. In todays world, people are constantly trying to change their eating and drinking habits. This could directly affect the sale of Coca Colas products. Another possible issue is the legal side of things. There are always issues with a company of such supreme wealth and popularity. Somebody is always trying to find fault with the best and take them down. Coca Cola has to be careful with lawsuits. Health minister could also be looked at as a threat. Again, some people may try to exploit the 5

unhealthy side of Coca Colas products and could threaten the status and success of sales. Other threats are of course the competition. Coca Colas main competition being Pepsi, sells a very similar drink. Coca Cola needs to be careful that Pepsi does not grow to be a more successful drink. Other product such as juices, coffee, and milk are threats. These other beverage options could take precedent in some peoples minds over Coca Colas beverages and this could threaten the potential success it presents again. 4.CONCLUSION 4.1 OBJECTVES Coca-Cola Company's objectives are to increase volume, expand worlwide share of nonalcoholic ready to drink beverage sales, maximise long-term cash flow and create added shareholder value by improving profit margins. 4.2 STRATEGIC RECOMMENDATIONS PREFERENCES In recent years, due to changing global economies, coke has taken a less aggressive stand in market place. Coca-Cola Company should always remain dedicated to build a better business. This is the promise that a company makes to its stockholders everyday.