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INTERNATIONAL BUSINESS [ COCA COLA]
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it,s an assignment on coca colas's international business activities like how they started, expanded, made their brand image etc.

it,s an assignment on coca colas's international business activities like how they started, expanded, made their brand image etc.

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    INTERNATIONAL BUSINESS [ COCA COLA] INTERNATIONAL BUSINESS [ COCA COLA] Document Transcript

    • Page4BUSINESS COMMUNICATIONINTERNATINALBUSINESUNIVERSITY OF DHAKADepartment of Accounting and Information SystemsBBA 19thBatch- 1st year- 1st SemesterCourse- Business Communication (1103)Bilkis Akhter, ACMAAssistant ProfessorDept. of AISUniversity of DhakaMULTIFORMSection-BDept. of AISUniversity of DhakaSUBMITTED TOSUBMITTED BYASSIGNMENT NO: 2
    • Page5LIST OF ILLUSTRATION
    • Page6
    • Page7Table of Content:Name of contents page no.01. Executive summary 0102. Introduction 2-303. Procedures 3-404. Findings 4-20a) Acquisition of the company 4-5b) Revenue 5c) Stock systems 6d) Lobbing of coca-cola company 6e) Consumer relationship 6-7f) Bottlers of the company 7g) Maintenance of civil rights 7-8h) Ingredients 8i) Criticism over the world 8-11j) Brand portfolio 12-15k) Competitors 15-16l) Advertising 16-2008. SWOT analysis 20-2309. Conclusion 2410. Recommendation 24-2511. Bibliography 2512. Appendix13. Glossary
    • Page8Executive Summary:International business is a very broad term to illustrate. In general words international businessmeans doing business out of national boundaries through export-import, licensing,multinational firms, totally owned facilities etc.First of all we have adorned our report with a great overview on international business througha well known company, The Coca-Cola Company. In the very first beginning an introduction tothe report has been prepared for showing a clear overview to coca-cola company. Then wehave written a procedure section. In the next part we also tried to show the illustratedoverview on the company covering some important strategy about Coca-Cola Co. Ltd. Whilepreparing this part we have researched on the acquisition of the company, revenue earned,stock, lobbying system, bottlers of the company. Moreover we have a great analysis on theconsumer relation of coca-cola, civil rights, probable competitors in the international market,advertising system that the company applies to overcome the different difficult situation andcompetition. After that a proper analysis has been made on the company through a very wellknown system known as SWOT analysis. We have also shown some ingredients name andmanufacturing system of a product of The Coca-Cola Company. After researching on theproblems and benefits, a recommendation on the problems has been given in the last part ofthe body of the report. In this report there are some words that may be difficult inunderstanding at the first sight. We have prepared a glossary section for that part as well as anappendix. The information sources are also provided in the bibliography section.In this total report we have focused on the major key requirements of our teacher. We havetried heart and soul to make this assignment informative. When preparing this assignment wehave also focused on better presentation and got much cooperation from our honorable courseteacher Mrs. Bilkis Aktar through her precious lectures and advices. So, we would like to bethankful to our honorable course teacher for being so cooperative and helpful to us.
    • Page9INTRODUCTIONOne of The Coca-Cola Companys headquarters buildings inAtlantaThe Coca-Cola Company (NYSE: KO) is an Americanmultinational beverage corporation and manufacturer, retailer and marketer of nonalcoholicbeverage concentrates and syrups, which is headquartered in Atlanta, Georgia. The company isbest known for its flagship product Coca-Cola, invented in 1886 by pharmacist John StithPemberton in Columbus, Georgia. The Coca-Cola formula and brand was bought in 1889 by AsaGriggs Candler (December 30, 1851 - March 12, 1929), who incorporated The Coca-ColaCompany in 1892. Besides its namesake Coca-Cola beverage, Coca-Cola currently offers morethan 500 brands in over 200 countries or territories and serves over 1.7 billion servings each day.The company operates a franchised distribution system dating from 1889 where The Coca-ColaCompany only produces syrup concentrate which is then sold to various bottlers throughout theworld who hold an exclusive territory. The Coca-Cola Company owns its anchor bottler in NorthAmerica, Coca-Cola Refreshments.Its stock is listed on the NYSE and is part of DJIA, S&P 500 Index, the Russell 1000 Index andthe Russell 1000 Growth Stock Index. Its current chairman and chief executive is Muhtar Kent.
    • Page10Coca-Cola is a carbonated soft drink sold in stores, restaurants, and vending machines in every countryexcept Cuba and North Korea. It is produced by The Coca-Cola Company of Atlanta, Georgia, and isoften referred to simply as Coke (a registered trademark of The Coca-Cola Company in the United Statessince March 27, 1944). Originally intended as a patent medicine when it was invented in the late 19thcentury by John Pemberton, Coca-Cola was bought out by businessman Asa Griggs Candler, whosemarketing tactics led Coke to its dominance of the world soft-drink market throughout the 20th century.We have chosen Coca-Cola Company for our report because it has a widespread brand name,goodwill and most importantly a great impact on the world’s economy.It has a huge share in the international business in every sector of the world. Moreover, Coca-Cola Company is doing great for the world’s environment and a great source of employment.The company produces concentrate, which is then sold to licensed Coca-Cola bottlers throughoutthe world. The bottlers, who hold territorially exclusive contracts with the company, producefinished product in cans and bottles from the concentrate in combination with filtered water andsweeteners. The bottlers then sell, distribute and merchandise Coca-Cola to retail stores andvending machines. The Coca-Cola Company also sells concentrate for soda fountains to majorrestaurants and food service distributors.ProceduresWhile making this report we have researched on coca-cola company through Wikipedia, theirpersonal websites. We have found much information about this company. Moreover we havevisited local Coca-Cola Company situated in Mirpur-2 (beside National Zoo Mirpur, Dhaka).
    • Page11We have a great survey over the company. After that we had a group discussion amongourselves. At that time we found some problems. And then we found out the solutions of thoseproblems.When we were assigned with the report our semester final examination was knocking at ourdoor. So we didn’t get enough time to make our effective analysis on the company. But we havetried our best to make our investigation on the company properly. Regarding this problems wearranged several group meetings which were very much helpful in making this report.Besides we took cooperation from our senior ones. They suggested us about the sources,procedures.We also analyzed annual reports of the company of different years regarding 2009-2012.Wefound their manufacturing process in both local and websites.FindingsACQUISITION OF THE COMPANY:The company has a long history of acquisitions. Coca-Cola acquired Minute Maid in 1960, theIndian cola brand Thums Up in 1993, and Barqs in 1995. In 2001, it acquired the Odwalla brandof fruit juices, smoothies and bars for $181 million. In 2007, it acquired Fuze Beverage fromfounder Lance Collins and Castanea Partners for an estimated $250 million. The companys 2009bid to buy a Chinese juice maker ended when China rejected its $2.4 billion bid for the HuiyuanJuice Group on the grounds that it would be a virtual monopoly. Nationalism was also thought tobe a reason for aborting the deal. In 1982, Coca-Cola made its only non-beverage acquisition,
    • Page12when it purchased Columbia Pictures for $693 million. It sold the movie studio to Sony for $3billion in 1989.RevenueThe Coca-Cola Companys Minute Maid group North America offices in Sugar Land TownSquare, Sugar Land, Texas, United StatesAccording to the 2005 Annual Report, the company sells beverage products in more than 200countries. The report further states that of the more than 50 billion beverage servings of all typesconsumed worldwide every day, beverages bearing the trademarks owned by or licensed toCoca-Cola account for approximately 1.5 billion (the latest figure in 2010 shows that now theyserve 1.6 billion drinks every day). Of these, beverages bearing the trademark "Coca-Cola" or"Coke" accounted for approximately 78% of the companys total gallon sales.Also according to the 2012 Annual Report, Coca-Cola had gallon sales distributed as follows:42% in the United States37% in Mexico, India, Brazil, Japan and the Peoples Republic of China20% spread throughout the rest of the worldIn 2010, it was announced that Coca-Cola had become the first brand to top £1 billion in annualUK grocery sales.Stock System
    • Page13Since 1987, Coca Cola has been a publicly traded company. One share of stock purchased in1919 for $40, with all dividends reinvested, would be worth $9.8 million in 2012, a 10.7%annual increase, adjusted for inflation. In 1987, Coca Cola once again became one of the 30stocks which make up the Dow, the Dow Jones Industrial Average, which is commonlyreferenced as the performance of the stock market. It had previously been a Dow stock from1932 to 1935. Coca Cola has paid a dividend, increasing each year for 49 years. Stock isavailable from a direct purchase program, through Computershare Trust Company, but unlikemany programs, has investment fees.Lobbying of Coca-Cola CompanyIn the U.S., Coca-Cola is a major lobbying force working to gain favorable legislation for thebeverage industry. In both 2005 and 2006, it spent $1 million each year on lobbying. In 2007,that increased to $1.7 million, and by 2008, to $2.5 million. In 2009, total lobbying expensesjumped to $4.5 million, or nearly double the previous year. Much of the increased lobbyingexpenses are due to the industry’s fight against increased taxes on soft drinks and othersweetened beverages. For 2008, Coca-Cola has 38 lobbyists at 7 different firms lobbying on itsbehalf.Consumer RelationsThroughout 2012, Coca-Cola contributed $1,700,500 to a $46 million political campaign knownas "The Coalition Against The Costly Food Labeling Proposition, sponsored by Farmers andFood Producers" This organization was set up to oppose a citizens initiative, known asProposition 37, demanding mandatory labeling of foods containing genetically modified
    • Page14ingredients. In the aftermath of the propositions defeat at the polls, backers called for a boycottof companies that contributed to the opposition campaign.Bottlers of the companyIn general, The Coca-Cola Company and its subsidiaries only produce syrup concentrate, whichis then sold to various bottlers throughout the world who hold a Coca-Cola franchise. Coca-Colabottlers, who hold territorially exclusive contracts with the company, produce the finishedproduct in cans and bottles from the concentrate in combination with filtered water andsweeteners. The bottlers then sell, distribute and merchandise the resulting Coca-Cola product toretail stores, vending machines, restaurants and food service distributors.One notable exception to this general relationship between The Coca-Cola Company and bottlersis fountain syrups in the United States, where the company bypasses bottlers and is responsiblefor the manufacture and sale of fountain syrups directly to authorized fountain wholesalers andsome fountain retailers.Maintenance of Civil rightsAfter Dr. Martin Luther King, Jr. won the 1964 Nobel Peace Prize, plans for an interracialcelebratory dinner in still-segregated Atlanta were not initially well supported by the citysbusiness elite until Coca-Cola intervened.J. Paul Austin, the chairman and CEO of Coca-Cola, and Mayor Ivan Allen summoned keyAtlanta business leaders to the Commerce Clubs eighteenth floor dining room, where Austintold them flatly, It is embarrassing for Coca-Cola to be located in a city that refuses to honor its
    • Page15Nobel Prize winner. We are an international business. The Coca-Cola Co. does not need Atlanta.You all need to decide whether Atlanta needs the Coca-Cola Co. Within two hours of the end ofthat meeting, every ticket to the dinner was sold.—Andrew YoungHowever, Coca-Cola has also faced allegations of racial discrimination in its employmentpractices, and faced a class-action racial discrimination lawsuit regarding this in the early 2000s.IngredientsCarbonated waterSugar (sucrose or high-fructose corn syrup depending on country of origin)CaffeinePhosphoric acidCaramel color (E150d)Natural flavoring.A can of Coke (12 fl ounces/355 ml) has 39 grams of carbohydrates (all from sugar,approximately 10 teaspoons) 50 mg of sodium, 0 grams fat, 0 grams potassium, and 140 calories.Formula of natural flavoringsThe exact formula of Coca-Colas natural flavorings (but not its other ingredients, which arelisted on the side of the bottle or can) is a trade secret. The original copy of the formula was heldin SunTrust Banks main vault in Atlanta for 86 years. Its predecessor, the Trust Company, was
    • Page16the underwriter for the Coca-Cola Companys initial public offering in 1919. On December 8,2011, the original secret formula was moved from the vault at SunTrust Banks to a new vaultcontaining the formula which will be on display for visitors to its World of Coca-Cola museumin downtown Atlanta.On February 11, 2011, Ira Glass revealed on his PRI radio show, This American Life, that thesecret formula to Coca-Cola had been uncovered in a 1979 newspaper. The formula foundbasically matched the formula found in Pembertons diary.Franchised production modelThe actual production and distribution of Coca-Cola follows a franchising model. The Coca-ColaCompany only produces a syrup concentrate, which it sells to bottlers throughout the world, whohold Coca-Cola franchises for one or more geographical areas. The bottlers produce the finaldrink by mixing the syrup with filtered water and sweeteners, and then carbonate it beforeputting it in cans and bottles, which the bottlers then sell and distribute to retail stores, vendingmachines, restaurants and food service distributors.The Coca-Cola Company owns minority shares in some of its largest franchises, such as Coca-Cola Enterprises, Coca-Cola Amatil, Coca-Cola Hellenic Bottling Company and Coca-ColaFEMSA, but fully independent bottlers produce almost half of the volume sold in the world.Independent bottlers are allowed to sweeten the drink according to local tastes.The bottling plant in Skopje, Macedonia, received the 2009 award for "Best Bottling Company".
    • Page17Brand portfolioThis is a list of variants of Coca-Cola introduced around the world. In addition to the caffeine-free version of the original, additional fruit flavors have been included over the years. Notincluded here are versions of Diet Coke and Coca-Cola Zero; variant versions of those no-caloriecolas can be found at their respective articles.Name Launched Discontinued Notes PictureCoca-Cola 1886 The original version of Coca-Cola.Caffeine-FreeCoca-Cola1983 The caffeine free version of Coca-Cola.Coca-ColaCherry1985 Was available in Canada starting in1996. Called "Cherry Coca-Cola(Cherry Coke)" in North Americauntil 2006.NewCoke/"Coca-Cola II"1985 2002 Was still available in Yap andAmerican Samoa[citation needed]
    • Page18Coca-Colawith Lemon2001 2005 Available in:Australia, American Samoa, Austria,Belgium, Brazil, China, Denmark,Federation of Bosnia andHerzegovina, Finland, France,Germany, Hong Kong, Iceland,Korea, Luxembourg, Macau,Malaysia, Mongolia, Netherlands,New Caledonia, New Zealand,Réunion, Singapore, Spain,Switzerland, Taiwan, Tunisia, UnitedKingdom, United States, and WestBank-GazaCoca-ColaVanilla2002;20072005; Available in: Austria, Australia,China, Finland, Germany, HongKong, New Zealand, Malaysia,Sweden, United Kingdom and UnitedStates. It was reintroduced in June2007 by popular demand.Coca-Colawith Lime2005 Available in Belgium, Netherlands,Singapore, Canada, the UnitedKingdom, and the United States.
    • Page19Coca-ColaRaspberryJune2005End of 2005 Was only available in New Zealand.Currently available in the UnitedStates in Coca-Cola Freestylefountain since 2009.Coca-ColaBlack CherryVanilla2006 Middle of2007Was replaced by Vanilla Coke inJune 2007Coca-ColaBlāk2006 Beginning of2008Only available in the United States,France, Canada, Czech Republic,Bosnia and Herzegovina, Bulgariaand LithuaniaCoca-ColaCitra2006 Only available in Bosnia andHerzegovina, New Zealand andJapan.Coca-ColaOrange2007 Was available in the United Kingdomand Gibraltar for a limited time. InGermany, Austria and Switzerlandits sold under the label Mezzo Mix.Currently available in Coca-ColaFreestyle fountain outlets in theUnited States since 2009.
    • Page20Logo designThe Coca-Cola logo was created by John Pembertons bookkeeper, Frank Mason Robinson, in1885.[61]Robinson came up with the name and chose the logos distinctive cursive script. Thetypeface used, known as Spenserian script, was developed in the mid-19th century and was thedominant form of formal handwriting in the United States during that period.Robinson also played a significant role in early Coca-Cola advertising. His promotionalsuggestions to Pemberton included giving away thousands of free drink coupons and plasteringthe city of Atlanta with publicity banners and streetcar signs.Designer bottlesKarl Lagerfeld is the latest designer to have created a collection of aluminum bottles for Coca-Cola. Lagerfeld is not the first fashion designer to create a special version of the famous Coca-Cola Contour bottle. A number of other limited edition bottles by fashion designers for CocaCola Light soda have been created in the last few years.In 2009, in Italy, Coca-Cola Light had a Tribute to Fashion to celebrate 100 years of therecognizable contour bottle. Well known Italian designers Alberta Ferretti, Blumarine, Etro,Fendi, Marni, Missoni, Moschino, and Versace each designed limited edition bottles.
    • Page21COMPETITORSPepsi, the flagship product of PepsiCo, The Coca-Cola Companys main rival in the soft drinkindustry, is usually second to Coke in sales, and outsells Coca-Cola in some markets. RC Cola,now owned by the Dr Pepper Snapple Group, the third largest soft drink manufacturer, is alsowidely available.Around the world, many local brands compete with Coke. In South and Central America KolaReal, known as Big Cola in Mexico, is a growing competitor to Coca-Cola. On the French islandof Corsica, Corsica Cola, made by brewers of the local Pietra beer, is a growing competitor toCoca-Cola. In the French region of Brittany, Breizh Cola is available. In Peru, Inca Kola outsellsCoca-Cola, which led The Coca-Cola Company to purchase the brand in 1999. In Sweden,Julmust outsells Coca-Cola during the Christmas season. In Scotland, the locally produced Irn-Bru was more popular than Coca-Cola until 2005, when Coca-Cola and Diet Coke began tooutpace its sales. In India, Coca-Cola ranked third behind the leader, Pepsi-Cola, and local drinkThums Up. The Coca-Cola Company purchased Thums Up in 1993. As of 2004, Coca-Cola helda 60.9% market-share in India. Tropicola, a domestic drink, is served in Cuba instead of Coca-Cola, due to a United States embargo. French brand Mecca Cola and British brand Qibla Colaare competitors to Coca-Cola in the Middle East. In Turkey, Cola Turka, in Iran and the MiddleEast, Zam Zam Cola and Parsi Cola, in some parts of China, China Cola, in Slovenia, Cockta andthe inexpensive Mercator Cola, sold only in the countrys biggest supermarket chain, Mercator,are some of the brands competitors. Classiko Cola, made by Tiko Group, the largestmanufacturing company in Madagascar, is a serious competitor to Coca-Cola in many regions.Laranjada is the top-selling soft drink on Madeira.
    • Page22ADVERTISING:Coca-Colas advertising has significantly affected American culture, and it is frequently creditedwith inventing the modern image of Santa Claus as an old man in a red-and-white suit. Althoughthe company did start using the red-and-white Santa image in the 1930s, with its winteradvertising campaigns illustrated by Haddon Sundblom, the motif was already common. Coca-Cola was not even the first soft drink company to use the modern image of Santa Claus in itsadvertising: White Rock Beverages used Santa in advertisements for its ginger ale in 1923, afterfirst using him to sell mineral water in 1915. Before Santa Claus, Coca-Cola relied on images ofsmartly dressed young women to sell its beverages. Coca-Colas first advertisement appeared in1895, featuring the young Bostonian actress Hilda Clark as its spokeswoman.Coca-Cola sales booth on the Cape Verde island of Fogo in 2004.Cokes advertising is pervasive, as one of Woodruffs stated goals was to ensure that everyone onEarth drank Coca-Cola as their preferred beverage. This is especially true in southern areas of theUnited States, such as Atlanta, where Coke was born.
    • Page23Coca-Cola signboard in Lahore, Pakistan.Some Coca-Cola television commercials between 1960 through 1986 were written and producedby former Atlanta radio veteran Don Naylor (WGST 1936–1950, WAGA 1951–1959) during hiscareer as a producer for the McCann Erickson advertising agency. Many of these early televisioncommercials for Coca-Cola featured movie stars, sports heroes and popular singers.Coca-Cola ghost sign in Fort Dodge, Iowa. Older Coca-Cola ghosts behind Borax and telephoneads.During the 1980s, Pepsi-Cola ran a series of television advertisements showing peopleparticipating in taste tests demonstrating that, according to the commercials, "fifty percent of theparticipants who said they preferred Coke actually chose the Pepsi." Statisticians pointed out theproblematic nature of a 50/50 result: most likely, the taste tests showed that in blind tests, mostpeople cannot tell the difference between Pepsi and Coke. Coca-Cola ran ads to combat Pepsisads in an incident sometimes referred to as the cola wars; one of Cokes ads compared the so-called Pepsi challenge to two chimpanzees deciding which tennis ball was furrier. Thereafter,Coca-Cola regained its leadership in the market.Selena was a spokesperson for Coca-Cola from 1989 till the time of her death. She filmed threecommercials for the company. In 1994, to commemorate her five years with the company, Coca-Cola issued special Selena coke bottles.
    • Page24In 2006, Coca-Cola introduced My Coke Rewards, a customer loyalty campaign whereconsumers earn points by entering codes from specially marked packages of Coca-Cola productsinto a website. These points can be redeemed for various prizes or sweepstakes entries.In Australia in 2011, Coca-Cola began the "share a Coke" campaign, where the Coca-Cola logowas replaced on the bottles and replaced with first names. Coca-Cola used the 150 most popularnames in Australia to print on the bottles. The campaign was paired with a website page,Facebook page and an online "share a virtual Coke". Coca-Cola has also advertised its product tobe consumed as a breakfast beverage, instead of coffee or tea for the morning caffeine.In 2013, Coca-Cola swapped the logo on Coca-Cola, Diet Coke and Coke Zero bottles and cansin the UK with 150 of Britains most popular names for a summer-long "Share a Coke"campaign.HOLIDAY CAMPAIGNSFreightliner Coca-Cola Christmas truck in Dresden, Germany.The "Holidays are coming!" advertisement features a train of red delivery trucks, emblazonedwith the Coca-Cola name and decorated with Christmas lights, driving through a snowylandscape and causing everything that they pass to light up and people to watch as they passthrough.
    • Page25Keith Law, a producer and writer of commercials for Belfast CityBeat, was not convinced byCoca-Colas reintroduction of the advertisement in 2007, saying that "I dont think theresanything Christmassy about HGVs and the commercial is too generic."In 2001, singer Melanie Thornton recorded the campaigns advertising jingle as a single,Wonderful Dream (Holidays are Coming), which entered the pop-music charts in Germany at no.9. In 2005, Coca-Cola expanded the advertising campaign to radio, employing several variationsof the jingle.In 2011, Coca-Cola launched a campaign for the Indian holiday Diwali. The campaign includedcommercials, a song and an integration with Shah Rukh Khan’s film Ra.One.Sports sponsorshipCoca-Cola was the first commercial sponsor of the Olympic games, at the 1928 games inAmsterdam, and has been an Olympics sponsor ever since. This corporate sponsorship includedthe 1996 Summer Olympics hosted in Atlanta, which allowed Coca-Cola to spotlight itshometown. Most recently, Coca-Cola has released localized commercials for the 2010 WinterOlympics in Vancouver; one Canadian commercial referred to Canadas hockey heritage and wasmodified after Canada won the gold medal game on February 28, 2010 by changing the endingline of the commercial to say "Now they know whose game theyre playing".Since 1978, Coca-Cola has sponsored the FIFA World Cup, and other competitions organised byFIFA. One FIFA tournament trophy, the FIFA World Youth Championship from Tunisia in 1977to Malaysia in 1997, was called "FIFA — Coca Cola Cup". In addition, Coca-Cola sponsors theannual Coca-Cola 600 and Coke Zero 400 for the NASCAR Sprint Cup Series at Charlotte
    • Page26Motor Speedway in Concord, North Carolina and Daytona International Speedway in Daytona,Florida.Coca-Cola was one of the official sponsors of the 1996 Cricket World Cup held on the Indiansubcontinent. Coca Cola is also one of the associate sponsors of Delhi Daredevils in IndianPremier League.In England, Coca-Cola was the main sponsor of The Football League between 2004 and 2010, aname given to the three professional divisions below the Premier League in football (soccer). Itis also responsible for the renaming of these divisions — until the advent of Coca-Colasponsorship, they were referred to as Divisions One, Two and Three. Since 2004, the divisionshave been known as The Championship (equiv. of Division 1), League One (equiv. of Div. 2)and League 2 (equiv. of Division 3). This renaming has caused unrest amongst some fans, whosee it as farcical that the third tier of English Football is now called "League One." In 2005,Coca-Cola launched a competition for the 72 clubs of the football league — it was called "Win aPlayer". This allowed fans to place 1 vote per day for their beloved club, with 1 entry beingchosen at random earning £250,000 for the club; this was repeated in 2006. The "Win A Player"competition was very controversial, as at the end of the 2 competitions, Leeds United AFC hadthe most votes by more than double, yet they did not win any money to spend on a new playerfor the club. In 2007, the competition changed to "Buy a Player". This competition allowed fansto buy a bottle of Coca-Cola Zero or Coca-Cola and submit the code on the wrapper on the Coca-Cola website {www.coca-colafootball.co.uk}. Introduced March 1, 2010, in Canada, to celebratethe 2010 Winter Olympics, Coca Cola will sell gold colored cans in packs of 12 355 mL each, in
    • Page27select stores..In 2012, Coca-Cola (Philippines) hosted/sponsored the Coca-Cola PBA Youngstarsin the Philippines.In mass mediaCoca Cola advertised on a Volkswagen T2 in Maringa, Parana, Brazil.Coca-Cola has been prominently featured in countless films and television programs. Since itscreation, it remains as one of the most important elements of the popular culture. It was a majorplot element in films such as One, Two, Three, The Coca-Cola Kid, and The Gods Must BeCrazy among many others. It provides a setting for comical corporate shenanigans in the novelSyrup by Maxx Barry. And in music, in The Beatles song, "Come Together", the lyrics said, "Heshoot Coca-Cola, he say...". The Beach Boys also referenced Coca-Cola in their 1964 song "AllSummer Long" (i.e. Member when you spilled Coke all over your blouse?)Also, the best selling artist of all time and worldwide cultural icon, Elvis Presley, promotedCoca-Cola during his last tour of 1977. The Coca-Cola Company used Elvis image to promotethe product. For example, the company used a song performed by Presley, A Little LessConversation, in a Japanese Coca-Cola commercial.Other artists that promoted Coca-Cola include The Beatles, David Bowie, George Michael, EltonJohn and Whitney Houston, who appeared in the Diet Coca-Cola commercial, among manyothers.Not all musical references to Coca-Cola went well. A line in "Lola" by The Kinks was originallyrecorded as "You drink champagne and it tastes just like Coca-Cola." When the British
    • Page28Broadcasting Corporation refused to play the song because of the commercial reference, leadsinger Ray Davies was forced to fly from New York to London and re-record the lyric as "ittastes just like cherry cola" to get airplay for the song.Political cartoonist Michel Kichka satirized a Coca-Cola billboard in his 1982 poster "And ILove New York." On the billboard, the lettering and script above the Coca-Cola wave read"Enjoy Cocaine."CriticismMain article: Criticism of Coca-ColaThe Coca-Cola Company has been involved in controversies and lawsuits related to humanrights violations and other unethical practices.A number of lawsuits have been filed in relation to its allegedly monopolistic and discriminatorypractices, some of which have been dismissed, some of which have caused The Coca-ColaCompany to change its business practices, and some of which have been settled out of court.There have been continuing criticisms regarding The Coca-Cola Companys relation to theMiddle East and U.S. foreign policy.The company has been criticized on a number of environmental issues. An issue with pesticidesin groundwater in 2003 led to problems for the company when an Indian NGO, Centre forScience and Environment, announced that it had found cancer causing chemicals in Coca-Cola aswell as other soft drinks produced by the company, at levels 30 times that considered safe by theEuropean Economic Commission. This caused an 11 percent drop in Indian Coca-Cola sales.
    • Page29The Indian Health Minister said the CSE tests were inaccurate, and said that the governmentstests found pesticide levels within Indias standards but above EU standards. The UK-basedCentral Science Laboratory, commissioned by Coke, found its products met EU standards in2006. Coke and the University of Michigan commissioned an independent study of its bottlingplants by The Energy and Resources Institute (TERI), which reported in 2008 no unsafechemicals in the water supply, though it criticized Coke for the impact of its water usage on localsupply.Critics claim that the companys overuse of local water supplies in some locations has led tosevere shortages for regional farmers and the forced closure of some plants. Packaging used inCoca-Colas products have a significant environmental impact. However, the company stronglyopposes attempts to introduce mechanisms such as container deposit legislation.The company was accused of being involved in a violent repression of a union at several of itsbottling plants in Colombia, South America. As of August 2005, when PBSs Frontline ran astory on the controversy, Coca-Cola strenuously denied all allegations of union-busting andmurder of union leaders. A few shareholders and a few U.S. colleges.have attempted to boycottCoca-Cola to exert pressure on the company to approve what they call a full-scale investigationof the charges.On December 10, 2008, the US Food and Drug Administration (FDA) wrote to Mr. MuhtarKent, President and Chief Executive Officer, to warn him that the FDA had concluded that thelabel on Coca-Colas product Diet Coke Plus 20 FL OZ was is in violation of the Federal Food,Drug, and Cosmetic Act labeling requirements. During an interview with Reuters, The Coca-Cola Companys spokesman, Scot Williams, stated, "This does not involve any health or safety
    • Page30issues, and we believe the label on Diet Coke Plus complies with FDAs policies andregulations."In January 2009, the US consumer group the Center for Science in the Public Interest filed aclass-action lawsuit against Coca-Cola. The lawsuit was in regards to claims made, along withthe companys flavors, of Vitamin Water. Claims say that the 33 grams of sugar are moreharmful than the vitamins and other additives are helpful. Coca-Cola insists the suit is"ridiculous."Company backgroundName The Coca Cola CompanyIndustries served BeveragesGeographic areas served WorldwideHeadquarters U.S.Current CEO Muhtar KentRevenue $ 48.01 billion (2012)Profit $ 9.01 billion (2012)Employees 146,200Main Competitors PepsiCo Inc., Dr Pepper Snapple Group, Inc.,Unilever, GroupeDanone, Kraft Foods Inc., NestléS.A. and others.
    • Page31The Coca Coola Company is the largest beverage company in the world serving more than 200countries and offering more than 500 brands.SWOT analysis of Coca Cola CompanyCoca Cola SWOT analysis 2013Strengths Weaknesses1. The best global brand in the world interms of value ($77,839 billion)2. World’s largest market share in beverage3. Strong marketing and advertising4. Most extensive beverage distributionchannel5. Customer loyalty6. Bargaining power over suppliers7. Corporate social responsibility1. Significant focus on carbonated drinks2. Undiversified product portfolio3. High debt level due to acquisitions4. Negative publicity5. Brand failures or many brands withinsignificant amount of revenuesOpportunities Threats1. Bottled water consumption growth2. Increasing demand for healthy food andbeverage3. Growing beverages consumption inemerging markets (especially BRIC)4. Growth through acquisitions1. Changes in consumer preferences2. Water scarcity3. Strong dollar4. Legal requirements to disclose negativeinformation on product labels5. Decreasing gross profit and net profitmargins6. Competition from PepsiCo7. Saturated carbonated drinks marketStrengths
    • Page321. The best global brand in the world in terms of value. According to Interbrand, The CocaCola Company is the most valued ($77,839 billion) brand in the world.2. World’s largest market share in beverage. Coca Cola holds the largest beverage marketshare in the world (about 40%).3. Strong marketing and advertising. Coca Cola’ advertising expenses accounted for morethan $3 billion in 2012 and increased firm’s sales and brand recognition.4. Most extensive beverage distribution channel. Coca Cola serves more than 200 countriesand more than 1.7 billion servings a day.5. Customer loyalty. The firm enjoys having one of the most loyal consumer groups.6. Bargaining power over suppliers. The Coca Cola Company is the largest beverage producerin the world and exerts significant power over its suppliers to receive the lowest price availablefrom them.7. Corporate Social Responsibility (CSR). Coca Cola is increasingly focusing on CSRprograms, such as recycling/packaging, energy conservation/climate change, active healthyliving, water stewardship and many others, which boosts company’ social image and result incompetitive advantage over competitors.Weaknesses1. Significant focus on carbonated drinks. The Coca Cola Company is still focusing on sellingCoke, Fanta, Sprite and other carbonated drinks. This strategy works in short term as
    • Page33consumption of carbonated drinks will grow in emerging economies but it will prove weak as theworld is fighting obesity and is moving towards consuming healthier food and drinks.2. Undiversified product portfolio. Unlike most company’s competitors, Coca Cola is stillfocusing only on selling beverage, which puts the firm at disadvantage. The overall consumptionof soft drinks is stagnating and Coca Cola Company will find it hard to penetrate to othermarkets (selling food or snacks) when it will have to sustain current level of growth.3. High debt level due to acquisitions. Nearly $8 billion of debt acquired from CCE’sacquisition significantly increased Coca Colas debt level, interest rates and borrowing costs.4. Negative publicity. The firm is often criticized for high water consumption in water scarceregions and using harmful ingredients to produce its drinks.5. Brand failures or many brands with insignificant amount of revenues. Coca Colacurrently sells more than 500 brands but only few of the brands result in more than $1 billionsales. Plus, the firm’s success of introducing new drinks is weak. Many of its introduction resultin failures, for example, C2 drink.Opportunities1. Bottled water consumption growth. Consumption of bottled water is expected to grow bothin US and the rest of the world.
    • Page342. Increasing demand for healthy food and beverages. Due to many programs to fight obesity,demand for healthy food and beverages has increased drastically. The Coca Cola Company hasan opportunity to further expand its product range with drinks that have low amount of sugar andcalories.3. Growing beverages consumption in emerging markets. Consumption of soft drinks is stillsignificantly growing in emerging markets, especially BRIC countries, where Coca Cola couldincrease and maintain its beverages market share.4. Growth through acquisitions. Coca Cola will find it hard to keep current growth levels andwill find it hard to penetrate new markets with its existing product portfolio. All this can be donemore easily through acquiring other companies.Threats1. Changes in consumer tastes. Consumers around the world become more health consciousand reduce their consumption of carbonated drinks, drinks that have large amounts of sugar,calories and fat. This is the most serious threat as Coca Cola is mainly serving carbonated drinks.2. Water scarcity. Water is becoming scarcer around the world and increases both in cost andcriticism for Coca Cola over the large amounts of water used in production.3. Strong dollar. More than 60% of The Coca Cola Company income is from outside US. Dueto strong dollar performance against other currencies firm’s overall income may fall.
    • Page354. Legal requirements to disclose negative information on product labels. Some Coca Cola’scarbonated drinks have adverse health consequences. For this reason, many governmentsconsider to pass legislation that requires disclosing such information on product labels. Productscontaining such information may be perceived negatively and lose its customers.5. Decreasing gross profit and net profit margins. Coca Cola’s gross profit and net profitmargin was decreasing over the past few years and may continue to decrease due to higher waterand other raw material costs.6. Competition from PepsiCo. PepsiCo is fiercely competing with Coca Cola over market sharein BRIC countries, especially India.7. Saturated carbonated drinks market. The company significantly relies on the carbonateddrinks sales, which is a threat for the Coca Cola as the market of carbonated drinks is notgrowing or even declining in the world.ConclusionThe Coca-Cola Company has built internal and external structures to support the delivery of itsbusiness goals. The regional structure is the best way of supporting this growth, allowingattention to local requirements while at the same time building on a clear strategic direction fromthe centre.
    • Page36A culture of innovation, teamwork and partnership means that the Company has a firmfoundation of relationships and open communication channels on which to build its growth.The Coca-Cola promise is simple, solid and timeless: The Coca-Cola T Company exists tobenefit and refresh everyone who is touched by its business. Part of this promise is to continuallyoperate as a model business citizen, consistently shaping business decisions to improve thequality of life in the communities in which it does business.The Company is committed to monitoring performance in the area of social responsibilityagainst benchmarks to make sure that it is, and continues to be, a good citizen as well as thebenchmark global brand.RecommendationRecommendations are the insights of our diverse global workforce." -CEO, Neville Isdell.Recommendations The Coca-Cola Company should pursue a multi-pronged strategy. The firstrivals. Consumer fast changing product preference is hard for Coca-Cola to keep pace with.Recommendation of Coca-Colas Future Generic Business Strategy position of Coca-Cola isdetermined through careful analysis of the organizations history, market conditions, markettrends, and finally the recommendations needed water management practices in India. Theassessment recommends that Coca-Cola shut down its bottling plant in Kala Dera because theplant contributes significantly born in 1886.
    • Page37Its product line has several popular soft drinks including Coca-Cola, Diet Coke, Fanta, Barqs,and Sprite, selling over 400 drinks brands in about 200 the world. Company’s products are soldsince 1886 and in more than 200 countries. Coca Cola have 450 brands in different 15 categoriesand they continue to expand far to adjust to different economic, social and other related issues.Thus, we recommend for Coca-Cola to implement the first strategy proposed. VI.Implementation of the key lessons I learned along the way.When I first went to work for The Coca-Cola Company in Atlanta 30 years ago, America andthe world were in a situation Media Recommendation for: Coca Cola Classic Communications352 Dr. Ju-Pak Section Two Yolanda Michel Oscar Perris Patty Pineda Iris Preciado of the keylessons I learned along the way. When I first went to work for The Coca-Cola Company inAtlanta 30 years ago, America and the world were in a situation and career paths (Nel, Werner,Haasbroek, Poisat, Sono, Schultz (2008:446).Glossary1. AcaciaSee definition of Acacia / Acacia Gum / Gum Arabic2. Ascorbic AcidAscorbic Acid is Vitamin C. Vitamin C is an antioxidant vitamin. It helps to protect body cellsand tissues and helps to maintain healthy skin. Ascorbic acid is also used as a preservative insome products and this use is indicated in the ingredient statement.3. Artificial FlavorsArtificial Flavors are substances used to impart flavor that are not derived from a naturalsubstance such as a spice, fruit or fruit juice, vegetables or herbs.
    • Page384. BottlersBusiness entities that sell, manufacture, and distribute beverages of The Coca-Cola Companyunder a franchise agreement.5. Bottling plantA beverage production facility, including associated warehouses, workshops, and other on-sitebuildings and installations.6. Black Tea ConcentrateBlack Tea Concentrate is Black Tea extract that has been concentrated and spray dried7. ConsumerPerson who consumes Coca-Cola FEMSA products.8. Carbonated soft drinks; CSDsNon-alcoholic carbonated beverages containing flavourings and sweeteners, excluding, amongothers, waters and flavoured waters, juices and juice drinks, sports and energy drinks, teas andcoffee.9. Coca-Cola HellenicCoca-Cola Hellenic Bottling Company S.A. and, as the context may require, its subsidiaries andjoint ventures. Also, ‘the Company’ or ‘the Group’.10. Future consumption; FCA distribution channel where consumers buy beverages in multi-serve packages (typically onelitre and above) for consumption at a later time, mainly at home.11. CaffeineCaffeine comes from the leaves, seeds, or fruits of more than 60 plants. It is found in beveragesand foods, such as coffee, tea, colas, and chocolate. Caffeine can also be man-made.12. Dutch CocoaDutch Cocoa is cocoa that has been treated to reduce its natural acidity.13. Evaporated Cane JuiceEvaporated Cane Juice is a sweetener made from sugar cane.14. Flavors / Flavorings
    • Page39Flavorings are used to provide the taste to beverages and foods. They can be natural extractsfrom food plants, such as fruits, or can be man-made.15. Folic AcidFolic Acid is a vitamin important for pregnant women as it is needed for the normal developmentof the brain and spinal cord. It also is needed by your body to make red blood cells.16. Jerusalem ArtichokeJerusalem Artichoke is a plant of the sunflower family that is added for flavor. It is not a type ofartichoke, but a root vegetable17. Market:When used in reference to geographic areas, territory in which Coca-Cola Hellenic doesbusiness, often defined by national boundaries.18. Manganese CitrateManganese citrate is a source of manganese, an essential nutrient for the body. Manganese isneeded for bone formation and energy metabolism.19. Non-carbonated soft drinks; non-CSDsNon-alcoholic beverages without carbonation including, but not limited to, waters and flavouredwaters, juices and juice drinks, sports and energy drinks, teas and coffee.20. Natural FlavorsNatural flavors are derived from the essential oils or extracts of spices, fruits, vegetables andherbs.21. Polyethylene GlycolPolyethylene Glycol is used as an emulsifier or substance to disperse two liquids in beverages.22. Purple CarrotPurple Carrot is a coloring agent made from purple carrots.23. Zinc PicolinateZinc Picolinate is a source of zinc, an essential nutrient for the body. Zinc is needed for thenormal functioning of the immune system
    • Page40APPENDIXAPPENDIX-1Type PublicTraded asNYSE: KODow Jones Industrial Average ComponentS&P 500 ComponentIndustry BeverageFounded 1886Founder(s) Asa Griggs CandlerHeadquartersCoca-Cola headquarters,Atlanta, Georgia, U.S.Key peopleMuhtar Kent(Chairman & CEO)Revenue US$ 48.01 billion (2012)[1]OperatingincomeUS$ 10.84 billion (2012)[1]Net income US$ 9.01 billion (2012)[1]Total assets US$ 86.17 billion (2012)[1]Total equity US$ 32.79 billion (2012)[1]Employees 146,200 (Dec 2011)[2]SubsidiariesList of The Coca-Cola CompanysubsidiariesWebsite Coca-ColaCompany.comAPPENDIX-2Coca-Cola Co., Income Statement, RevenuesUSD $ in millions12 months ended Dec 31,2012Dec 31,2011Dec 31,2010Dec 31,2009Dec 31,2008Eurasia & Africa 2,818 2,689 2,426 1,977 2,135Europe 4,481 4,777 4,424 4,308 4,785Latin America 4,560 4,403 3,880 3,700 3,623North America 21,665 20,559 11,140 8,191 8,205Pacific 5,559 5,454 4,941 4,533 4,358Bottling Investments 8,807 8,501 8,216 8,193 8,731Corporate 127 159 92 88 107Net operating revenues, third party 48,017 46,542 35,119 30,990 31,944
    • Page41Bibliography1.Wikipedia (2013). The Coca-Cola Company. Available at: http://en.wikipedia.org/wiki/The_Coca-Cola_Company2.The Coca Cola Company (2013). Coca Cola Journey. Available at: http://www.coca-colacompany.com/3.Bazil, M. (2013). The Motley Fool. Coca-Cola Has a Prosperous 2013 Ahead of It. Available at:http://beta.fool.com/muhammadbazil/2013/01/04/coca-cola-has-prosperous-2013-ahead-it/20272/?ticker=KO&source=eogyholnk00000014.Visit to Coca-Cola company of Bangladesh. ( Situated in Mirpur-2, Beside National Zoo)5. In June 2012, Coca-Cola announced its intentions to begin distributing in Myanmar.Stafford, Leon (Sept. 9, 2012). "Coca-Cola to spend $30 billion to grow globally".SS