MBA 2nd semester

2020-2022

Name- Ashita punjabi & Adarsh Jaiswal

JLU ID’s- JLU05118, JLU05317

Subject- Accounting for Managerial Decisions

Internal assignment

Submitted to- Dr. B. Padmapriya

 COCA-COLA VALUE CHAIN ANALYSIS

Coca Cola is perhaps the most recognizable brands all around the world. Known for its solid
image picture and worldwide presence, Coca Cola has a few billion-dollar brands in its portfolio.
In any case, making an enormous and fruitful brand likewise requires dealing with the value
chain effectively. A value chain incorporates every one of the exercises beginning from getting
the crude materials from different sources to the last deals and after sales administration. There
are a few exercises in the center which structure the value chain. Administrators can acquire an
image of how each stage in the value chain increases the value of the item and in like manner
enhance the value chain to get better outcomes. Improvement won't simply bring effectiveness
however it can likewise produce new wellsprings of upper hand. Here is a definite value chain
investigation of Coca Cola. There are essential and backing exercises in the value chain which
are examined are as follows: -
Primary Activities: -

 Inbound Logistics: - Water is the principal element for all items manufactured by
Coca Cola Company and the organization periodically faces critical difficulties in getting
to this specific raw material. Coca Cola utilizes high fructose corn syrup (HFCS) broadly
and this raw material is bought from US-based providers and conveyed or delivered by
means of trucks. There are additionally a few ingredients that must be sourced globally.
For instance, orange juice and orange juice concentrate is sourced from Florida and
Southern Hemisphere, especially Brazil. For worldwide buys inbound logistics are
encouraged by means of ships and trucks. Coca Cola esteems variety among its
providers. Coca Cola has dealt with a huge production network which comprises of a
huge number of farmers and providers. It regards its providers as colleagues. These
colleagues give its framework raw material including ingredients, packaging and
machinery just as goods and services. In any case, it has likewise set core values for the
providers to follow. At the very least these providers are needed to agree with every one
of the applicable laws and guidelines. In its rules Coca cola likewise emphasizes on
mindful ecological and working environment strategies and practices. It has overseen
excellent relationship with its providers and that causes it keep a consistent and
continuous progression of raw material.
 Operations: Coca-Cola working fragments are divided into the accompanying 7
gathering:
-Eurasia and Africa
-Europe
-Latin America
-North America
-Asia Pacific
-Packaging Investments
-Corporate
The Coca Cola framework is definitely not a single entity from lawful and management
perspectives. Coca Cola produces and sells concentrates, beverages bases and syrups to its
packaging accomplices, keeps up responsibility for brand and creates and applies advertising
system. Packaging accomplices, entities that don't have a place with Coca Cola, do
manufacturing, packaging, promoting and they circulate the eventual outcome to clients and
distributing partners. The activities function of Coca Cola incorporates concentrate improvement
and every one of the regulatory elements of central command. Coca Cola is a worldwide
business that works at a nearby scale locally where it works together. The Coca cola framework
works through numerous local channels. Notwithstanding, it doesn't claim or control all its
packaging accomplices. The organization simply produces and sells beverages bases and syrups
to packaging activities. The organization possesses the brand and is answerable for the customer
brand advertising activities.

 Outbound Logistics: - Coca Cola Company sells its items in excess of 200 nations
and naturally claims to work the world's biggest refreshment appropriation system.
Distribution channels used by Coca-Cola comprises of distribution activities worked or
constrained by the organization, free packaging accomplices, distributors, wholesalers
and retailers. This portion of Coca Cola's Value chain comprises of its packaging
accomplices and merchants. It packaging accomplices manufacture, package, stock and
circulate the final result to the clients and distributing accomplices. These distributing
accomplices at that point offer the item to the clients. The clients of Coca Cola
incorporate the supermarkets, cafés, road merchants, convenience stores, cinemas and
amusement parks. The packaging partners of Coca Cola work with the clients to execute
confined strategies created in partnership with Coca Cola organization.
 Marketing and Sales: - Coca Cola applies integrated marketing system utilizing
advertising, sales promotions, events and experiences and advertising components of the
promoting mix in a joined way. The brand promoting message is related with being glad,
appreciating life and driving a functioning way of life. Coca Cola's the most recent
advertising endeavors have been aimed at joining four famous beverages – Coca Cola,
 Diet Coke, Coca Cola Zero and Coca Cola Life into the idea of 'One Brand', in this
manner giving more extensive decision to the objective client segment.
Coca Cola is a worldwide perceived brand. Be that as it may, it has not become as
renowned without zeroing in on showcasing. The coca cola logo is quite possibly the
most conspicuous logos. Its image is likewise known for a substantial use on promoting.
Aside from advanced channels and web-based media, Coca Cola additionally utilizes
print media and outside showcasing to advance its image and items. It likewise runs
crusades now and again. A year ago, it acquired a significant move its showcasing
technique and as opposed to advancing its brands independently, it is presently zeroing in
on advancing the whole brand together. Its items are sold in excess of 200 nations around
the world. From retail locations to cafés and theaters, Coca Cola items can be seen
wherever designing the shelves.
 Service: - Coca Cola keeps up its client support practices through online talk with a
virtual specialist in official website of the organization committed client assistance
telephone. Coca Cola site has a comprehensive FAQ that covers the most parts of their
items in a detailed manner and the site likewise addresses a wide scope of rumors
identified with the brand immediate and indirect ways.

Support activities: -

 Technology Development: - Coca Cola additionally keeps up heavy focus or

spotlight on technology, research and development. From production to distribution
and sales, wherever it has put resources into innovation. Aside from that it
additionally Research & Development centers around mechanical development
through Research & Development. It has six Research & Development revolves
around the globe that are associated with hubs innovation and appraisal center points
interfacing it with partners, tech new businesses and college researchers. The
organization works together with partners in different businesses to fuel development
across items, packaging, equipment and different things. Along these lines, Coca Cola
is consistently focusing on advancement for growth & development.
 Human resource management: - This is additionally a vital or important area
of Coca Cola's value chain. The organization has focused on employing and creating
ability and establishing a climate of learning and development. It pays them great pay
rates and furthermore supplements the installments with remunerations. Coca cola
centers around worker inspiration and commitment. Aside from it, the emphasis is on
execution and the executives to give the workers career growth and development.
 Procurement: - Coca Cola secures from a large number of farmers and suppliers.
It utilizes innovation to make the whole interaction simpler and efficient. It has kept
up great relationships with its suppliers and gave rules that the suppliers are needed to
follow.
 Infrastructure: - The role of an association's infrastructure is vital to its success.
Coca Cola has managed with a huge framework including its management, HR,
financial, innovative and technological infrastructure. It is additionally educating its
suppliers and focusing in on advancement through its R&D centers.

Coca cola’s Cost strategy: - Coca Cola, the soft drink beverages giant is the
leader in its industry. 21st century is set apart by extraordinary rivalry and any brand
that needs to stay in front of the others should have some basic benefit. A reasonable
competitive advantage assists brands with advancing beyond the opposition and work
beneficially. Coca Cola is a worldwide brand that is found in practically every one of
the edges of the world. Its nearest rival is Pepsi. Coca Cola has managed its place
through some basic elements which are a wellspring of economical competitive
advantage for it.
These techniques are – cost leadership, differentiation and focus. The third strategy
has divided into two classifications – cost focus and differentiation focus. These
strategies can help a brand assemble a competitive advantage and overcome serious
competitive factor. In any case, there are likewise four intensive strategies that are
valuable with regards to expanding the brand's client base and developing sales. This
is a discussion of the conventional and intensive technique that Coca Cola has used to
sustainable reasonable competitive advantage and develop its market presence
internationally.

Generic Strategy: - The main generic strategy utilized by Coca Cola is that of
cost leadership. This is a technique utilized by a few major brands of the world that
are driving on the lookout. Cost administration is a powerful technique that assists
brands with expanding piece of the overall industry and gain popularity. Everybody
needs to save on any item. Particularly, the working class which shapes an
exceptionally enormous piece of Coca Cola's client base loves low costs of items.
Coca Cola has kept the costs of its items low. These are reasonable items and
accessible effectively in each edge of the world. Coca Cola has guaranteed both
moderateness and availability which has prompted both higher deals and ubiquity.
This has end up being a wellspring of economical upper hand for Coca Cola.

Occasionally, Coca Cola additionally utilizes limits and special missions to build
deals and prevalence. It is principally for the moderateness of its items nonetheless,
that the deals of the brand and its items have stayed high. Consequently, the
advantages of cost initiative are clear. It accomplishes higher deals, construct an
enormous client base and furthermore acquire acknowledgment. Coca Cola spends a
ton on showcasing and advancement yet on the off chance that its items' costs were
not as reasonable, its deals would have been lower. While cost initiative is the
principle conventional procedure sued by Coca Cola, it has likewise utilized
separation to acquire a benefit over the contenders. It has presented various sound
items including wellbeing beverages and juices that are focused on the wellbeing
cognizant clients. Along these lines, Coca Cola has sued a blend of cost initiative and
separation to acquire competitive advantage and to construct client devotion.
Intensive Strategies: - There are four intensive strategies for a brand's
development and market expansion. They are – market penetration, market
development, product development and diversification. The following is a discussion
of the intensive strategies utilized by Coca Cola to develop its market and sales.

Market penetration: This is the strategy of offering more to the current client base.
It is one of the key procedures Coca Cola has used to develop its deals. Aside from
keeping costs reasonably low, the brand likewise utilizes special strategies like
occasional limits to push deals among its current clients. It delivers new packages and
runs special campaigns that are aimed toward expanding the sales of its products
around the world.

Market development: This is the strategy of entering new business sectors or regions
and offering to new clients. It is another key strategy that has helped Coca Cola
become a worldwide brand. Coca Cola items are sold in excess of 200 nations. The
brand has spread worldwide to virtually every edge of the world. Aside from the kind
of the coca cola items and their reasonable prices, the credit additionally goes to the
utilization of marketing and promotions for global development. the strategy has been
highly powerful and helped Coca Cola get the leadership role in the drinks business.

Product Development: Product Development is the strategy of carrying more items

to the market to expand sales and income. overtime, the item cluster of Coca Cola has
become very expansive. Its enormous product portfolio is comprised of 500 shining
and still brands and it serves almost 3900 refreshment decisions. Presently, there are
21-billion-dollar brands in its portfolio. Thusly, Coca Cola has accomplished a ton of
development through product development.