Presentation by
Denny Tabula, Edward Charfauros, Rowan Kamaunu, and Tawnya Tanudra
• Introduction
• Previous Findings
• The Rationale for South Africa
• Market Mix
• Financial Over-view
• Finance Options
•...
• Organizations require decisions concerning how to proceed and
operate, pursue global interests, local interests, multi-d...
Previous Findings
• The Coca-Cola Company succeeds through cheaper resources.
• The South Africa location possesses many b...
Previous Findings
• Coca-Cola focuses on regarding corporate responsibility to care of the
environment while still pleasin...
The Rationale for South Africa
• The South Africa Reserve Bank and South Africa's central bank
maintain independence from ...
The Rationale for South Africa
• South Africa’s banking regulations globally ranks among the top 10
throughout the world.
...
Market Mix
• Coca~Cola’s Target
• Marketing Plan
• Product/s
• Price/s
• Place/s
• Promotion/s
Financial Over-view
• General budget
http://www.thecoca-
colacompany.com/ourcompany/ar/pdf/TCCC_2010_Annual_Revi
ew.pdf
• ...
Finance Options
• Domestic
• Capital Market
• Foreign Direct Investment
• Currency Hedges
Forward exchange contracts in So...
Organized Structure
• Decentralized Organization
• Disperses decision-making authority throughout
the organization
• Ideal...
CEO
Board
of
Directors
Finance
Strategic
Planning
MarketingInnovation
Human
Resources
Regional Structure
Pacific
Africa
and
Eurasia
North America Europe
Latin
America
South Africa
Business Unit
Subsidiaries
A...
Exit Strategies
• IPO’s
• Strategic Acquisition
• Management Buyout
• Divestiture of assets
• Handing over a joint venture...
Recommendation
• Pursue the global venture in South Africa
• Low labor cost
• Abundant resources
• Generate jobs, local ec...
Conclusion
• Team A analyzed South Africa demographics,
market shares and risks.
• Coca-Cola(CC) discovers opportunities o...
References
• Embassy of the Republic of South Africa (2008). business environment
south africa: open for business. Retriev...
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Mgt448 lt a_week5 Copyright 2013 Edward F. T. Charfauros. Reference, www.YourBlogorResume.net.

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Edward F. T. Charfauros, inspiring author, assists fellow students with their presentation for a successful grade. He also blogs upon his own inspiring blog, where you'll discover life changing stuff. Sign up for his blog by sending him an email~

Copyright 2013 Edward F. T. Charfauros. Reference, www.YourBlogorResume.net.

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Mgt448 lt a_week5 Copyright 2013 Edward F. T. Charfauros. Reference, www.YourBlogorResume.net.

  1. 1. Presentation by Denny Tabula, Edward Charfauros, Rowan Kamaunu, and Tawnya Tanudra
  2. 2. • Introduction • Previous Findings • The Rationale for South Africa • Market Mix • Financial Over-view • Finance Options • Organized Structure • Organizational Chart: Corporate Level • Organizational Chart: Bottling Investments • Conclusion • References Questions/More Information
  3. 3. • Organizations require decisions concerning how to proceed and operate, pursue global interests, local interests, multi-domestic strategies, export strategies, products for sell, and consumers of choice. • Team A investigates Coca-Cola Company’s strategies and actions within its global plans. • Team A embraces five aspects • First section describes Coca-Cola’s generic strategy indicating important developments and concerning issues • Second section describes management’s challenges between headquarters and its subsidiaries and regional offices • Third section describes Coca-Cola’s implementation problems and reward • Forth section describes the relationships with stakeholders emphasizing the codes of conduct • Fifth section reveals strategy intentions and actual strategy implementation upon its chosen location.
  4. 4. Previous Findings • The Coca-Cola Company succeeds through cheaper resources. • The South Africa location possesses many benefits providing an ideal infrastructure with lower labor costs. • Coca-Cola Company offers an abundance of products and businesses. • Coca-Cola establishes itself as a high internationalization index and is the most recognizable brand worldwide. • Coca-Cola offers its products to majority of nations globally. • Coca-Cola’s strategy and international efforts reaps profits of over 60 percent outside its home market while producing abroad with more than 65 percent of its assets internationally. • Coca-Cola possesses a significant amount of investments within the United States and South Africa catering to a large market. • The cultural, geographical and operational distance largely affects both business and entrance strategies requiring Coca-Cola to invest in training employees with cultural awareness to benefit within its new markets.
  5. 5. Previous Findings • Coca-Cola focuses on regarding corporate responsibility to care of the environment while still pleasing society. • Coca-Cola puts effort into its environmental projects involving communities within society. • Coca-Cola’s senior government relation leadership approves political contributions ensuring compliance with South Africa government officials. • Coca-Cola enters contracts to gain an edge on exchange rates through net investment hedges for international operations. • Coca-Cola uses the CCA Risk Management Framework and Guide for risk analysis. • Coca-Cola uses the four P’s product, price, promotion and place when marketing exposing and educating its target market for its operation within South Africa. • Coca-Cola gains more net revenues from external than internal operations through taxation and double taxation. The water source is what the locals and native tribes use to conduct business when dealing with Coca-Cola.
  6. 6. The Rationale for South Africa • The South Africa Reserve Bank and South Africa's central bank maintain independence from government. • Real interest rate is stabile while the currency remains competitive. • South Africa’s government welcomes foreign investments within South Africa and represents investor-friendly policies supporting public pronouncements. • South Africa’s government strategy increases economic growth rate toward a gross domestic product of 6% by 2014 to reduce unemployment. • South Africa possesses a world-class progressive legal system. Legislation is particularly well developed pertaining to commerce, labor, and maritime concerns, while laws relate to policing competition through policy, copyrighting, patenting, trademarking, and disputing conformity, and international norming. • Common law protects sanctity of contract, as independent courts respect commercial rights and obligations, as the Constitution guarantees independence.
  7. 7. The Rationale for South Africa • South Africa’s banking regulations globally ranks among the top 10 throughout the world. • South Africa's labor costs are lower versus other emerging markets. • According to the business environment South Africa: open for business article upon the Embassy of the Republic of South Africa website (2008). “South Africa ranks 35th among 178 countries in the World Bank and International Finance Corporation's Doing Business 2008 report, an annual survey that measures the time, cost and hassle for businesses to comply with legal and administrative requirements. South Africa is ranked above developed countries such as Portugal (37) and Spain (38), as well as major developing economies such as Mexico (44), China (83), Russia (106), India (120) and Brazil (122)” (ease of doing business in SA, p. 1, para. 1) • South Africa’s government provides an environment for small business development, industrial innovation support, finance access, and gives incentives to value-adding manufacturing projects.
  8. 8. Market Mix • Coca~Cola’s Target • Marketing Plan • Product/s • Price/s • Place/s • Promotion/s
  9. 9. Financial Over-view • General budget http://www.thecoca- colacompany.com/ourcompany/ar/pdf/TCCC_2010_Annual_Revi ew.pdf • Foreign exchange rate and risks involved
  10. 10. Finance Options • Domestic • Capital Market • Foreign Direct Investment • Currency Hedges Forward exchange contracts in South African Rand (ZAR) currency • International • Start-up Capital from parent nation • Venture Capital • Currency derivatives • Regional and International Stock Markets
  11. 11. Organized Structure • Decentralized Organization • Disperses decision-making authority throughout the organization • Ideal for complex (size, diversity) organization • Fosters empowerment • Coca-Cola decentralization • Cut half of its staff at Atlanta based headquarters • Move regional managers closer to local markets
  12. 12. CEO Board of Directors Finance Strategic Planning MarketingInnovation Human Resources
  13. 13. Regional Structure Pacific Africa and Eurasia North America Europe Latin America South Africa Business Unit Subsidiaries Amalgamated Beverage Industries Coca-Cola Fortune Peninsula Beverages Coca-Cola Shanduka Beverages
  14. 14. Exit Strategies • IPO’s • Strategic Acquisition • Management Buyout • Divestiture of assets • Handing over a joint venture partner • Diversification • Shutting down operations • Contingency
  15. 15. Recommendation • Pursue the global venture in South Africa • Low labor cost • Abundant resources • Generate jobs, local economy • Community efforts • Open more markets in different countries.
  16. 16. Conclusion • Team A analyzed South Africa demographics, market shares and risks. • Coca-Cola(CC) discovers opportunities of a new market. • Operations to bring drinkable water source to the disease stricken villages. These efforts are part of CC marketing mix. • Organizational structure decentralized fostering empowerment. • Exit strategies can aide
  17. 17. References • Embassy of the Republic of South Africa (2008). business environment south africa: open for business. Retrieved from http://www.embaixada-africadosul.pt/investing-in-sa/business-environm • Investors Network. (n.d.). Business Finance in South Africa. Retrieved from http://www.investorsnetwork.co.za/component/content/article/117 -business-finance-in-south-africa • The Coca Cola Company. (2012). Leadership. Retrieved from http://www.thecoca-colacompany.com/ourcompany/leadership.html • Coca-Cola South Africa. (2009). Company Profile. Retrieved from http://www.cocacola.co.za/about.aspx Questions? More Information?

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