Challenge of organization

1. Competition:
The non - alcoholic beverage industry is highly competitive. Coke have to compete with
international companies as we as local companies where it function. In many countries
where coke operates including USA, Pepsi is a primary competitor in the market. Cokes
capability to maintain the sales of share or get profit in the global market or various local
markets may be limited because of competitors.
2. Change in non - alcoholic beverages business environment:
The business of non - alcoholic beverage has been changing because of Consumers life
style, emerging views of health and nutrition, changing consumer needs and preferences,
increase in similar products and price factor. Furthermore, the beverage industry is being
affected by the intermediates, especially in USA and European countries. If Coca Cola
Company is not able to change along with changing business environment it will effect on
companys profit and sales of share.

3. Complexity costs

When Coca cola company grow bigger and more diverse, complexity costs inevitably rise.
Efforts to standardize the common elements of essential functions, such as sales or legal
services, can clash with local needs. And emerging markets complicate matters, as operations
located there sometimes chafe at the costs they must bear as part of a group centered in the
developed world: their share of the expense of distant corporate and regional centers, the cost
of complying with global standards and of coordinating managers across far-flung geographies,
and the loss of market agility imposed by adhering to rigid global processes.

4. Dependence on bottling companies:

The Company generate lion share of it revenue through sales of concentrates and syrups to
many bottling companies of which the Coca-Cola Company have no total control of. It was
approximated in 2006 that 83% of the total volume unit is been produce and distributed by
various bottling companied across the world.
References
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Prentice-Hall India.
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https://www.ukessays.com/essays/business/coca-cola-changes-and-challenges-
business-essay.php, viewed 31 July 2017.

3. Anthony McGrew, Researching Globalization, Retrieved June 19, 2014,

http://www.polity.co.uk/global/research.asp , viewed 30 July 2017.

4. Coca-Cola Company, Sustainability report, Retrieved May 28, 2014,

http://www.coca-colacompany.com/sustainability/global-challenges.html , viewed
30 July 2017.

5. G.A Cole (2006), personnel management theory and practices, Hemisphere D.P
publication Ltd.

6. M. Porter (2006). Strategy and society: the link between competitive advantage and
corporate social responsibiliyu, Harvard Business Review Thomas Donaldson,
(2014).

7. Global Business Strategy: A case study of Coca-Cola Company,

https://www.academia.edu/8516284/Global_Business_Strategy_A_case_study_of
_Coca-Cola_Company, viewed 01 August 2017.