COCA-COLA

The Coca-Cola Company is an American multinational

beverage corporation founded in 1892, best known as the
producer of Coca-Cola. The Coca-Cola Company also
manufactures, sells, and markets other non-alcoholic
beverage concentrates and syrups, and alcoholic
beverages. The company's stock is listed on the NYSE
and is part of the DJIA and the S&P 500 and S&P 100
indexes.

The soft drink was developed in 1886 by pharmacist John

Stith Pemberton. At the time it was introduced, the
product contained cocaine from coca leaves and caffeine
from kola nuts which together acted as a stimulant. The
coca and the kola are the source of the product name, and
led to Coca-Cola's promotion as a "healthy tonic".
Pemberton had been severely wounded in the American
Civil War, and had become addicted to the pain
medication morphine. He developed the beverage as a
patent medicine in an effort to control his addiction.

In 1889, the formula and brand were sold for $2,300

(roughly $71,000 in 2022) to Asa Griggs Candler, who
incorporated the Coca-Cola Company in Atlanta in 1892.
The company has operated a franchised distribution
system since 1889. The company largely produces syrup
concentrate, which is then sold to various bottlers
throughout the world who hold exclusive territories. The
company owns its anchor bottler in North America, Coca-
Cola Refreshments.
 Missions of Coca-Cola
Coca Cola’s mission statement is “to refresh the world in
mind, body, and spirit, to inspire moments of optimism
and happiness through our brands and actions, and to
create value and make a difference.” Coca Cola is a
company that focusses on leaving a legacy wherever it
operates. The company highly values making a difference
in individuals and communities, while at the same time
letting them enjoy the great tastes of its products. The
mission statement has the outlined components:

1. Improving lives. Coca Cola is a company that has

come to understand that the quality of life comprises
of much more, including the quality of the products
and related brand initiatives. To satisfy this
component, Coca Cola maintains a trend that values
health more than the profit it makes. It does this by
going for natural sweeteners and other extracts to
boost the naturalness of its brands and serve its
customers with products that not only refresh but also
maintain the healthiness of their bodies.
2. Improving communities. While treating its customers
to different flavors, Coca Cola also goes further to
put a smile on the faces of its customers and their
communities through its outreach programs. The idea
of the company to use promotional programs to
generate funds for supporting developmental agendas
in communities, including education, healthcare, and
infrastructure. For instance, the company has a give
initiative where it mobilizes investors and other
stakeholders to donate for a good course in society.
Most importantly, Coca Cola has never neglected its
corporate social responsibilities for over a century,
making it a people’s company. In fact, it has been
involved in numerous environmental reclamation and
protection activities demonstrating its undying
commitment.

3. Exceeding expectations. There is never a shortage of

what Coca Cola Corporation has in store for its
customers. The dynamism of the company has made
it a darling worldwide due to the numerous
opportunities it gives people to improve their lives.
For instance, Coca Cola has always been on the front
line in the promotion of talents across the world and
especially in Latin America, Africa, and Asia.
 Vision of Coca-Cola

The Coca-Cola vision statement focuses on inspiring

people and promoting excellence to nurture a
harmonious environment in the workplace. It reveals
the company's goal for development and change in
the industry. And here lies Coca-Cola's definition of
leadership. Also, its vision statement strives to:

1. Inspire others. Coca-Cola strives to be an

organization that practices harmonious
relationships among employees and stakeholders
by uplifting each other. It works with various
communities and investors to spread its benefits
through best practices that promote positivity.

2. To be the best. As Coca-Cola expands its market

reach, it needs to keep its growth trend. Indeed,
you can count on Coca-Cola to innovate new
products for its market and, in the process, conduct
outreach initiatives for the community. With all
these at hand, Coca-Cola is setting the bar higher
for excellence and its commitment to inspire
customers, communities, stakeholders, employees,
and its other companies in the soda industry.
3. Nurturing a great workplace. A company can never
be successful without excellence from its
employees. The third variable on Coca-Cola's
vision statement reflects the company's uniqueness
as an international brand. It creates an environment
that embraces everyone despite their differences
and promotes professional growth and unity. This
is one of Coca-Cola's primary goals, making it an
ideal workplace for employees across the globe.

Its core values comprise leadership, integrity,

collaboration, passion, accountability, quality, and
diversity. These values will be Coca-Cola's guide
on interacting with its main stakeholders during
service deliveries. Generally, the company values
address the needs of its primary stakeholders,
including employees, company shareholders,
customers, and the community as a whole.

For a company that caters to the global market, it is

not all about survival but also about thriving to stay
at the top in a global spectrum. Here lies the need
for a solid cultural value within the organization.
 Objective of Coca-Cola

This purpose is uniquely us. It’s why we exist, and it’s

needed now, more than ever. In doing so, we must think
expansively. It’s about how we refresh people in both
body and spirit. It’s about how we refresh the planet and
limit the footprint we leave behind. It’s about how our
business system refreshes the communities we serve. It’s
about how we and our bottlers refresh, inspire, and
develop the people who work with us.
We're also clear on the vision for our next stage of
growth.
Our vision is to craft the brands and choice of drinks that
people love, to refresh them in body and spirit. And done
in ways that create a more sustainable business and better
shared future that makes a difference in people’s lives,
communities, and our planet.
This has three connected pillars:
 LOVED BRANDS. We craft meaningful brands and
a choice of drinks that people love and that refresh
them in body and spirit.
 DONE SUSTAINABLY. We use our leadership to
be part of the solution to achieve positive change in
 the world and to build a more sustainable future for
our planet.
 FOR A BETTER SHARED FUTURE. We invest
to improve people’s lives, from our employees to all
those who touch our business system, to our
investors, to the broad communities we call home.
The reality of our success and scale is that we have to
lead, to be a force for progress and for good. We have an
incredible opportunity ahead of us and wind in our sails.
Let us set this as our north star, guiding us to further
purposeful success.
 Structure of coca-cola
The Coca-Cola Company has a somewhat complex
matrix organizational structure with geographic
divisions, product divisions, business-type units,
and functional groups.

 Coca-Cola has a total of six business segments,

with four of these geographic divisions and the
remainder business-type units for the company’s
acquired brands and bottling operations. In 2021,
the company introduced 9 new business units to
eliminate the duplication of resources and introduce
new products more quickly.

 Product-based divisions help Coca-Cola manage a

portfolio of approximately 200 brands, while there
are also various functional groups to
support business operations in multiple
departments.
 Functions of Coca-Cola company
Planning
The vision of the Coca-Cola Corporation is to become
the biggest and the best anchor bottler in the world
and its mission is to refresh everyone which guides its
management team in the planning process.
The top management of the company engages in
formulating five year longer term plans as well as
shorter term planning for the next year or so. The idea
behind this type of planning is to have a strategic
vision extending over a longer period as well as a
flexible and adaptive strategy to change according to
the imperatives of its external environment.
Organizing
Coca-Cola follows the decentralization within
centralization model of organizing itself. This means
that while the global headquarters retains its overall
decision making, the corporation is divided into
regions and geographical territories in which it
operates. These regional divisions are then organized
into the functional departments which in its case
comprise the Production, Industrial Relations, Sales
and Marketing, and Human Resources departments.
The key to understanding the organizing function at
Coca-Cola is to recognize that employees with similar
skills and common work functions are grouped
together. This helps the company avoid redundancies
in problem solving processes as well as bestowing a
certain functional autonomy at all levels.
report to the global functional heads. Similarly, the
responsibilities are clearly defined which means that
accountability is taken care of as is the aspect of
transparency.
Leading
Though Coca-Cola is organized around geographical
regions and then the various departments for each
region, the company emphasizes the importance of
transformative leadership at both the Global and the
Local levels.
This means that local managers and the heads of
departments in addition to the Country Heads in the
various markets that the company operates in are free
to decide on the appropriate strategies for their
territories as long as they conform to the global norms
and global culture that permeates the organization.
This decentralization within centralization is the
hallmark of the Glocal approach which has been
stated in the thesis.
Controlling
The controlling function in Coca-Cola is done through
periodic reviews of managerial and salespersons
performance. Towards this end, an appraisal system
based on objective evaluation of whether the employee
being appraised has met his or her targets forms the
backbone of the controlling function in the company.
Though managerial performance goes beyond
evaluation of targets and their compliance as the
managers typically perform other roles such as people
management and strategic planning, the salespersons
are appraised based on the Sales Person’s reporting
system and the Sales Person’s evaluation system.
 SWOT Analysis

Strength:
For Coca Cola, the very first step is to expand their
market into high purchasing capability areas. Market
penetration seems important for majority of companies.
Then, only innovation could make greater progress in this
industry:

Coca Cola is the top-most beverage brand with a presence

in 200 countries, it bagged the highest brand equity award
in 2011;
The company valuation of Coca-Cola is $79.2 billion. Its
subsidiaries include Limca, Sprite, Fanta, Thumps Up,
Maaza, Kinley Water, Minute Maid;
The company has the most robust supply chain and
delivers a product in the remotest places. The vast global
presence has made it created its brand image;
It associates with celebrity brand ambassadors for
advertising and marketing. It maintains a good marketing
strategy. Coca Cola enjoys customer loyalty;
The company performs CSR activities in water
conservation, education, health, and recycling, it has an
association with international sports events and
sponsorship, the company is moving towards sugar-free
options, water, and juice.
Weakness:
Besides its strengths, it is also crucial for a company to
know its weakness. Once they identify the reasons
affecting their growth, they can take the necessary steps to
negate their impact:

PepsiCo aerated drinks are giving it tough fights over

market share;
The company's soft drinks have high sugar content and
other chemicals that have health concerns;
Unlike PepsiCo, the company has not yet initiated a food
business. The focus is primarily on beverages. More so,
until now, it has not shown any interest to make healthy
beverages;
Though the company has a wide variety of brands, it is
primarily dependent on Sprite and Coca-Cola brands;
The company has faced flak for water management issues
and exploiting groundwater even in water-scarce regions.
Opportunities:
The company's performance assessment shows how they
can use the available opportunities in their favor. The
company can concentrate on the ones that align with their
strengths. As a top-rated brand, Coca Cola has several
strengths which allow them to use many of the
opportunities to ensure their growth:

It can increase its reach in untapped countries to boost the

Coca-Cola market and supply-chain improvement;
The company can popularise lesser-known products. It
must utilize the scope to acquire other companies and
strengthen the company;
It can diversify its product portfolio by starting the snacks
industry to compete with PepsiCo. It can also start a full-
fledged business for health drinks;
Kinley’s expansion is not at the level of Bisleri. It can
grow its business for packaged drinking water.
Threats:
How to keep the fisrt position of beverage industry in the
world seems the priority for Coca Cola, since there are
substantial brand-new vegan and other organic beverage
brands grown fast:

People are interested in making healthy choices these

days and so are avoiding aerated drinks. To source, raw
material is a significant concern;
It is facing difficulty in complying with different
government norms and regulations in other countries;
The recent economic slowdown, inflation, and instability
have affected its market share;
Strong competitors like PepsiCo, Nestle, Gatorade,
Lipton, Danone, Schweppes are giving it a tough fight.