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1. Presentation by
Denny Tabula, Edward Charfauros, Rowan Kamaunu, and Tawnya Tanudra

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. • 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. 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. 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. 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. 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. Market Mix
• Coca~Cola’s Target
• Marketing Plan
• Product/s
• Price/s
• Place/s
• Promotion/s

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. 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. 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. CEO
Board
of
Directors
Finance
Strategic
Planning
MarketingInnovation
Human
Resources

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. Exit Strategies
• IPO’s
• Strategic Acquisition
• Management Buyout
• Divestiture of assets
• Handing over a joint venture partner
• Diversification
• Shutting down operations
• Contingency

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. 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. 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?