Strategic Management of Coca Cola Company

SURVEY REPORT
on
STRATEGIC MANAGEMENT OF COCA
COLA FINAL PROJECT
Project Report Submitted to Jamia Millia Islamia
In partial fulfillment of the Award of the Degree of
BACHELOR OF BUSINESS STUDIES (HONOURS)
Submitted by
HASSAN SAEED
Roll No: 15BBA1011
Enrollment No: 15-1116
Paper Code – 604
Under the supervision of
Prof. A. AZIZ ANSARI
DEPARTMENT OF COMMERCE & BUSINESS STUDIES
JAMIA MILLIA ISLAMIA - NEW DELHI
[2018]

CERTIFICATE
This is to certify that the Dissertation entitled STRATEGIC
MANAGEMENT OF COCA COLA is a bonafide record of
independent research work done by Hassan Saeed Roll No:
(15BBA1011) under my supervision and submitted to Jamia Millia
University in partial fulfillment for the award of the Degree of Bachelor
of Business Studies [H] in (Finance).
Signature of the supervisor
(With Seal)

DECLARATION
I Hassan Saeed a bonafide student of Bachelor of Business Studies (H)
in Finance of Jamia Millia Islamia, New Delhi would like to declare that
the dissertation entitled Strategic Management of Coca Cola. Submitted
by me in partial fulfillment of the requirements for the award of the
Degree of Bachelor of Business Studies [H] in (Finance) is my original
work.
Place:
Date:
Signature of the candidate.

ACKNOWLEDGEMENTS
A lot of effort has gone into this research report. My thanks are due to people with
whom I have been closely associated. I would like to thank all those who have
contributed in completing this project. First, I would like to send my sincere thanks
to Prof. A. AZIZ ANSARI for his helpful hand in the completion of my project.
The completion of this report is a milestone in the life of a management student and
is execution is inevitable without the co-operation of a project guide. I wish to vent
a deep sense of gratitude to Mr. Aziz Ansari Dean of Commerce and Business
studies & Faculty JMI who gave me a support to prove my worth and for his kind
attention. I also pay him a vote of thanks for his encouragement; to ultimately made
it success. I also can’t forget to pay my deep regards to Dr. Arshia Hussain, Faculty
of Jamia Millia Islamia.
I would like to thank my entire beloved Family for providing me support, as and
when required, without which this project would not have completed on time. Their
trust and patience is now coming out in form of this thesis.
It is my proud privilege to express my deep sense of gratitude and appreciation to
my parents and siblings for their support and cooperation during this report either
directly or indirectly involved in this with their valuable contribution.
I perceive as this opportunity as a big milestone in my career development.
HASSAN SAEED.
BBS (H) SEM’ VI
DEPT OF COMMERCE & BUSINESS STUDIES.
JAMIA MILLIA ISLAMIA.

TIME TABLE
CHAPTER
NO:
TITLE
CHAPTER 1  EXECUTIVE SUMMARY
 Introduction of a Company
 International / National Introduction
 Coca Cola Beverage Limited
 Vision, Mission, Core Values, Goals of Coca Cola
 Organizational Hierarchy
 Product and Services of single product
 Segmentation
 Pricing
 Distribution / Retailing
 Marketing
 EXTERNAL ANALYSIS OF COCA COLA BEVERAGES
 Natural Resource Coca Cola need
 Present and Future needs of Natural Resources
 International Arrangement of Water
 Goal:
 Progress:
 Understanding Our Water Footprint
 Issues they face during arranging and managing

CHAPTER 2
CHAPTER 3
CHAPTER 4
CHAPTER 5
 Task Environment: Porter’s 5 Forces Model
 When (situation), Why (objective / reasons), How (process), who
(participants), Issues faced
 In what format they collected the data of Porter’s Analysis
 What benefits they get from conducting PORTER’s Analysis?
 Societal Environment: PESTEL Analysis
 Internal Analysis: Organizational Perspective
 Vision / Mission / Core Values (discuss separately)
 Organizational Policies
 Code of Business Conduct
(INTEGRITY IN THE COMPANY)
 Guidance from Core Compliance Officer
 The Company has additional policies and procedures governing
conduct that may have their own disciplinary consequences.
 Environmental Policy
 Human Resource Policy
 Organizational Structure
 Designing Organizational Structure: Authority &Control
 Designing Organizational Structure: Specialization &
Coordination
 Coca - Cola Porter's Value Chain Analysis
 SWOT Analysis of Coca Cola
 Internal & External Analysis
 FINDINGS
 RECOMENDATION

EXECUTIVE SUMMARY
The Coca Cola Corporation is defined to be the most well-known trade mark in the
world, and it is justly so. Coca Cola owns over 400 brands that appeal to many
different people all throughout the world. They are able to satisfy the needs of all
their consumers and make their experiences with Coca Cola better. The Coca Cola
products appeal to a wide range of people from all races, genders, and ages.
Coca Cola is well known for its worldwide popularity as its products are sold to over
200 counties, while major competitors only sell in several countries, putting Coca
Cola ahead of all competition. Coca Cola is an obvious and easily recognized by all.
The popularity of Coca Cola has grown very recognizable company.
It is known worldwide and its branding is constantly earned by Coca Cola surpasses
all other beverage companies and these funds would over the years, is still growing
to this day, and will continue into the future. The finances prove vital in the future
of Coca Cola as it allows for the promotion of many other products. Many aspects
of Coca Cola prove to be superior to that of competitors, ranging from promotional
techniques to corporate structure.
Some of these aspects include, positioning, market mix strategy, and implementation
plan. These aspects place Coca Cola superior to competitors, instigating Coca Cola
to aspire higher goals and missions. It is our mission at Coca Cola to refresh and
completely satisfy the world and it is our vision to make a bottle of Coca Cola
available within arms’ reach of every person all around the globe.

CHAPTER 1
Introduction of a Company
Coca Cola originated as a soda fountain beverage in 1886 selling for five cents a
glass. Early growth was impressive, but it was only when a strong bottling system
developed that Coca-Cola became the world-famous brand it is today.
As a part of its drive to enhance the quality, availability, and image of Coca-Cola
products, The Coca-Cola Company established a new Company in Pakistan in 1996,
by the name of “Coca-Cola Beverages Pakistan Limited”
(CCBPL or Company).
CCBPL is a part of Coca-Cola İçecek which is sixth largest KO bottler in the World.
It has a presence in ten countries including Turkey, Kazakhstan, Kyrgyzstan,
Azerbaijan, Jordan, Iraq, Turkmenistan, Tajikistan, Syria, and Pakistan. CCI has
48% shares of CCBPL with Management Control.
CCBPL started the process of acquiring and investing in locally franchised bottling
operations. This process was completed in 2006 and, thereafter, all manufacturing
and selling rights of Coca-Cola products are now with CCBPL.
CCBPL has 6 plants and 13 warehouses throughout the country and serves a
population of more than 170 million with a production capacity of 111 million
physical cases. CCBPL is a significant player in the growth of Pakistan’s economy
since it is one of the country’s top foreign direct investments in FMCG (Fast Moving
Consumer Goods) business and is one of the major tax paying beverages companies.

Type Cola
Manufacturer The Coca-Cola
Company
Country of origin United States
Introduced May 8, 1886; 130 years ago,
Color Caramel E-150d
Flavor Cola
Variants New Coke (discontinued)
Diet Coke
Caffeine-Free
Diet Coke Caffeine-Free
Zero
Cherry
Lemon (discontinued)
Vanilla
Lime
Raspberry (discontinued)
Black Cherry Vanilla (discontinued)
Blak (discontinued)
Citra
Orange
Life
C2 (discontinued)
Related products Pepsi
Irn-Bru
RC Cola
Afri-Cola
Postobón
Inca Kola
Kola Real
Cavan Cola

International / National Introduction
Coca-Cola (often referred to simply as Coke) is an American carbonated soft drink
produced by The Coca-Cola Company in Atlanta, Georgia, United States. Originally
intended
d as a patent medicine, it was invented in the late 19th century by John Pemberton.
Coca-Cola was bought out by businessman Asa Griggs Candler, whose marketing
tactics led Coke to its dominance of the world soft-drink market throughout the 20th
century. The drink's name refers to two of its original ingredients, which were kola
nuts (a source of caffeine) and coca leaves. The current formula of Coca-Cola
remains a trade secret, although a variety of reported recipes and experimental
recreations have been published.
The Coca-Cola Company produces concentrate, which is then sold to licensed Coca-
Cola bottlers throughout the world. The bottlers, who hold exclusive territory
contracts with the company, produce the finished product in cans and bottles from
the concentrate, in combination with filtered water and sweeteners. A typical 12 oz.
(355 ml) can contains 38g of sugar (usually in the form of high fructose corn syrup).
The bottlers then sell, distribute and merchandise Coca-Cola to retail stores,
restaurants and vending machines throughout the world. The Coca-Cola Company
also sells concentrate for soda fountains of major restaurants and food service
distributors.
The Coca-Cola Company has on occasion introduced other cola drinks under the
Coke name. The most common of these is Diet Coke, with others including Caffeine-
Free, Diet Coke Caffeine-Free, Cherry, Zero, Vanilla and special versions with
lemon, lime and coffee. Based on Inter brand's best global brand study of 2015,
Coca-Cola was the world's third most valuable brand. In 2013, Coke products were
sold in over 200 countries worldwide, with consumers downing more than 1.8 billion
company beverage servings each day.

COCA COLA BEVERAGES LIMITED
Coca-Cola established its facilities in 1953. It operates locally within. Its products
are produced locally, thus providing employment to hundreds of Pakistani residents.
The company focuses its marketing and advertising specifically to Pakistani tastes
and cultures. Coca-Cola Beverages Pakistan Limited’s (CCBPL) major shareholder
is Turkey’s Coca-Cola İçecek (CCI). CCI is currently bottling and distributing
alcohol-free beverages in Pakistan along with 9 other countries.
Besides these, Sprite Zero, Rani Float and Kinley Bottled water are also in
company’s product portfolio. The company’s bottling plant is located in Pakistan in
different regions, including Karachi and Islamabad. Its local office is also engaged
in the marketing and advertising activities related to its products across Pakistan.
After arriving in Pakistan, Coca-Cola was bottles and distributed via independent
franchisees. In 1996, Coca-Cola took the initiate to consolidate and acquire all the
bottling plants and operate hem under the company’s own supervision. This process
of acquisition was completed in 2006 and CCBPL became the only organisation
responsible to bottle and distribute Coca-Cola products across Pakistan. CCBPL
ensures that quality products are delivered to its customers. This includes investment
in the market, customer development, timely order and cash collections. By 2013,
CCBPL has 6 bottling plants and 13 warehouses operating across Pakistan thereby
serving its 180 million population via its vast distributors and retailers.

Vision, Mission, Core Values, Goals of Coca Cola
Vision Statement
Be the outstanding beverage company leading the market, inspiring people, adding
value through excellence.
Mission Statement
Build a sustainable and profitable business through refreshing consumers, partnering
with customers, delivering superior value to shareholders and being trusted by
communities.
Core Values
Our Core Values underlie everything we do. We live by them for two reasons; they
are good and right in themselves, worthy of adherence even at the risk of loss of
profit-making opportunities, and they epitomize our Company’s integrity, which we
believe will produce value for our stakeholders over the long term.
1. Accountability We act with high sense of responsibility and hold ourselves
accountable.
2. Passion We put our hearts and mind into what we do.
3. Integrity We are open, honest, ethical and we trust and respect each other
4. Teamwork We collaborate for our collective success.

Goals
1. People and Organizational Leadership
2. Build a highly capable organization and be the employer of choice
3. Commercial Leadership.
4. Profitably deliver superior value to consumers & customers at the optimal cost to
serve.
5. Supply Chain.
6. To be the best in class consumer demand fulfillment organization that exceeds
customer expectations highest in quality, lowest in cost, in a sustainable, socially
responsible manner
7. Operational Excellence
8. Create a culture of Operational Excellence to support continuous improvement of
our business process and systems.
9. Sustainability
10. Ensure the long-term viability of our business by being proactive and innovative
in protecting the environment and be recognized as one of the most responsible
corporate,
citizens by all stakeholders.

Organizational Hierarchy
1. What type of organizational structure does Coca-Cola
have?
The Coca-Cola Company has a Separate International Division Structure because its
international staffs operate separately and in isolation from head office. It has
various divisions in all continents around the world with presidents that control each
continental division. Coca-Cola has 5 continental divisions.
 Eurasia & Africa Group
 Europe Group
 Latin America Group
 North America Group
 Pacific Group
Each Continental division has vice presidents that control sub-divisions based on
regions or countries. This structure is efficient for Coca-Cola since it is a very large
company.
2. How do they operate?
Coca-Cola is as an ethnocentric MNC because its domestic operations are very like
its international operations. Regardless of the country or region, Coca-Cola operates
the same way and sells the same brand and type of soft drink. The company has tight
control over its operations from head office.
3. Number of Technical Employees
Employees as of December 31, 2015 and 2014, Coca Cola Company had
approximately 123,200 and 129,200 employees, respectively, of which
approximately 3,300 and 3,800, respectively, were employed by consolidated
variable interest entities (“VIEs”). The decrease in the total number of employees in
2015 was primarily due to the refranchising of certain territories that were previously
managed by CCR to certain of the Company’s unconsolidated bottling

partners. As of December 31, 2015, and 2014, Coca Cola Company had
approximately 8,000 and 15,000 employees, respectively, located in the Pakistan, of
which approximately 500 were employed by consolidated VIEs in both years. Our
Company, through its divisions and subsidiaries, is a party to numerous collective
bargaining agreements. As of December 31, 2015, approximately 7,000 employees,
excluding seasonal hires, in North America were covered by collective bargaining
agreements. These agreements typically have terms of three years to five years. We
currently expect that we will be able to renegotiate such agreements on satisfactory
terms when they expire. The Company believes that its relations with its employees
are generally satisfactory.
4. Total Employees (Gender Wise)
Product and Services of single product
The Coca-Cola Company is the world’s largest beverage company. Coca-Cola
Company own or license and market more than 500 non-alcoholic beverage brands,
primarily sparkling beverages but also a variety of still beverages such as waters,

enhanced waters, juices and juice drinks, ready-to-drink teas and coffees, and energy
and sports drinks. Coca-Cola Company own and market four of the world’s top five
non-alcoholic sparkling beverage brands: Coca-Cola, Diet Coke, Fanta and Sprite.
Finished beverage products bearing our trademarks, sold in the United States since
1886, are now sold in more than 200 countries. Coca-Cola Company make branded
beverage products available to consumers throughout the world through our network
of Company-owned or -controlled bottling and distribution operations as well as
independent bottling partners, distributors, wholesalers and retailers — the world’s
largest beverage distribution system. Beverages bearing trademarks owned by or
licensed to us account for more than 1.9 billion of the approximately 58 billion
servings of all beverages consumed worldwide every day.
Coca-Cola Company believe their success depends on their ability to connect with
consumers by providing them with a wide variety of options to meet their desires,
needs and lifestyles. Coca-Cola Company success further depends on the ability of
their people to execute effectively, every day. Coca-Cola Company goal is to use
their Company’s assets — their brands, financial strength, unrivalled distribution
system, global reach, and the talent and strong commitment of their management
and associates — to become more competitive and to accelerate growth in a manner
that creates value for their shareowners. Coca-Cola Company were incorporated in
September 1919 under the laws of the State of Delaware and succeeded to the
business of a Georgia corporation with the same name that had been organized in
1892. The company has the widest portfolio in beverage industry comprising of 3300
products. Beverages are divided into diet category, 100% fruit juices, fruit drinks,
water, energy drinks, tea
and coffee etc. As per Nielson’s data, Coca cola is the No.1 brand in sparkling
beverages, juice, and retail packaged water in 2010. Coca cola has its market
presence around 200 countries.

Segmentation:
Coca cola servers its products using mass marketing technique, which obviously
falls in undifferentiated marketing, and undifferentiated marketing means no
segmentation, but there are minor factors on which we can say that the coke
segments its products and then targets the customers somehow. These factors are as
follows.
1. Geographic Segmentation:
 Internationally: Coke segments its products country wise and region wise,
here the most important thing is the taste and the quality, it varies according
to the taste and the income level of the people in that country, and i.e. Third
world counties are given low quality taste.
 Climatic: In coke marketing, main idea is to serve it cold, so we can say that,
they focus more on hot areas of the world, i.e. middle east etc. and their sale
increase in summer.
 Locally: The coke segments more in urban and suburban areas as compare
to rural.
2. Demographic Segmentation:
Age: Internationally coke has segments the small children introducing tastes
like vanilla, lime and cherry, they focus children from 4-12. Coke
specifically target more young people than older.
Family type: Coke introduces its economy pack, and that’s how they focus
family and groups.
Income: Coke segments different income levels by packaging. Like for small
income people it has small returnable glass bottle, for middle people it has
non-returnable bottle and for higher income people it has coke tin.

3. Psychographics Segmentation:
All psychographics variables the social class, lifestyle, occupation, level of
education and personality, coke segments everyone, but again it’s there packaging
which is different for different consumers.
4. Behavioral Segmentation
Occasions:
Thanks to the Coca-Cola Company for the warm welcome of Ramadan that has
become an identity of the culture of Pakistan. Over the year the welcome of Ramadan
has taken on mega proportions. Then coca cola has also made our ‘Eid festivals very
special by giving us special discounts on these prestigious occasions. Coca-Cola has
special pricing strategies for thes3e occasions. They also run special advertising
campaigns to make these occasions more special.
Pricing
Due to the availability of wide range products the pricing is done per the market and
geographic segment. Each sub-brand of coca cola has different pricing strategy.
Their pricing strategy is based on the competitors pricing; Pepsi is the direct
competitor to coke. Beverage market is said to be an oligopoly market (few sellers
and large buyers), hence they form into cartel contract to ensure a mutual balance in
pricing between the sellers.
Distribution / Retailing
Coca Cola is the world’s most favorite brand and is available all over the world. The
distribution system of coca cola follows the FMCG distribution pattern. The
effective distribution network of coke has almost eroded the small and middle level
players in the market. In Pakistan, they have captured even the rural market by
extensive distribution.

Marketing
Coca Cola adopts various advertising and promotional strategies to create an
increased demand in the market by associating with life style and behavior and
mainly targeting value based advertising. You are more likely to see a coke ad
individualized for a festival or in with a general positive message.
Coca-Cola uses the concept of aggressive advertising to promote its products. Thus,
advertising is the most important marketing tool for the company as it must cater
mass consumer markets. They mainly do national advertising. Company
introduces different themes and concepts to sell their product and advertises mainly
in electronic media and out of home advertising. These advertisements build brand
image and create awareness.
Big names of Indian film industry mainly become the brand ambassadors of the
Company.
EXTERNAL ANALYSIS OF COCA COLA
BEVERAGES
Natural Resource Coca Cola need: Coca Cola identify WATER
and NATURAL AIR as their most used resources in the production process.
Present and Future needs of Natural Resources
Coca-Cola Pakistan, believe that water is critical not just for survival but for
overall well-being of our global ecosystems and economies. Being a big
consumer of water, it is our duty to protect water resources. Coca-Cola
Pakistan maintains a vast Corporate Social Responsibility Portfolio, with
special focus towards community building and water stewardship, where
projects are designed in a way to deliver exponential benefits by integrating
the ‘Me, We, World’ framework; individuals, communities and environment.
Therefore, it’s our mission to give back the equivalent of all the water that we
use to communities and nature, and we will continue to do so after we meet
the 100 percent water replenishment goal.

In 2007 The Coca-Cola Company announced its Water Replenishment Goal
which focuses on being water neutral by the year 2020. 209 water stewardship
projects were initiated in a total of 61 countries. Pakistan remains one of these
61 countries, successfully supporting towards water replenishment goals. The
2020 water replenishment goal involves returning water to the environment
and communities, as per the total volume of water used annually. In 2014 The
Coca-Cola system consumed 300 billion liters of water to produce 160 billion
liters of beverages, and we successfully replenished 160 billion liters of water
worldwide, based on our 209 watershed projects. This marks as the epitome
of our success towards water stewardship.
Coca-Cola is able to give back the amount of water equivalent to what it uses
in its finished beverages and their production through replenishment projects,
increasing water use efficiency in its plants, and returning water to watersheds
and municipalities through wastewater treatment. Part of meeting its
replenishment goal is engaging in diverse, locally focused community water
projects. Each project works toward set objectives such as providing or
improving access to safe water and sanitation, protecting watersheds,
supporting water conservation and raising awareness on critical local water
issues.

International Arrangement of Water
Goal:
By the 2020, improve water efficiency in manufacturing operations by 25 percent
compared with a 2010 baseline.
Progress:
On track. In 2015, we improved our water efficiency 2.5 percent, marking the first
time the Coca-Cola system has achieved a water-use ratio less than 2.0. This is a
total improvement of 12 percent since 2010 and 27 percent since 2004 when we
started reporting efficiency progress as a global system. COCA COLA’s system
wide water efficiency has improved for 13 consecutive years. When they started this
journey in 2004, they were using 2.7 liters of water to make 1 liter of product. That
means that 1 liter of water is in the product and another 1.7 liters is used in the
manufacturing process, mostly for keeping equipment clean.
Today, they’re using 1.98 liters of water to make 1 liter of product and we’re working
to reduce it to 1.7 liters of water per liter of product (a 25 percent improvement) by
2020. In 2015, we used about 300.19 billion liters of water to produce approximately
151.1 billion liters of product (e.g., Coca-Cola, Diet Coke and Coke Zero) that we
sold to consumers in more than 200 countries and territories around the world. That
means 151.1 billion liters of water goes into our products and to consumers. And we
used 149.09 billion liters of water in our manufacturing process to make that 151.1
billion liters of product in our operations.1 so, that’s the definition of water
efficiency – how much water it takes to make our product.
Our 2020 goal is aggressive. The good news is that we’re on track to meet our goal,
and in many parts of the world, we’re ahead of schedule. In fact, in the United States,
Mexico, South Pacific, Western Europe, and Turkey, we have bottling plants that
are already using 1.7 liters of water, or less, to make a liter of product. Some are
operating at as low as 1.4 liters of water per liter of product. Our progress on water
efficiency places us among the leading companies in the beverage industry
according to a recent benchmarking report by the Beverage Industry Environmental
Roundtable.

Understanding Our Water Footprint
The key driver in improving our water efficiency is reducing or removing water use
in our manufacturing processes. Over the years we’ve made significant investments
in new technologies and operating procedures that replace or reduce water use in our
manufacturing operations. In order to expand on such improvements, we need to
understand where water is used and where we have opportunities for improvement.
Water foot printing—an approach to assess the total volume of water used to produce
a product—is helping us extend our view of how we use water across our
manufacturing processes and supply chain. Our studies have shown that around 80
percent of the total water footprint of our products comes from our agricultural
ingredient supply chain. As a founding partner of the Water Footprint Network, we
have worked with WWF, The Nature Conservancy and others to assess the water
embedded in our products, packaging and ingredients so we can better understand
the implications for our business, and work to reduce impacts.
In collaboration with The Nature Conservancy, we issued a report, Product Water
Footprint Assessments: Practical Application in Corporate Water Stewardship,
exploring the utility and practical application of the water footprint methodology for
understanding our water use throughout the value chain, and for identifying the
impacts of that use and associated response actions.
Water footprint studies were conducted related to the following Coca-Cola products
and ingredients:
Coca-Cola in a 0.5-liter PET bottle produced in the Netherlands;
Beet sugar supplied to Coca-Cola Europe’s bottling plants; and
Orange juice produced for the North American market.
The largest portion of the product water footprints assessed as part of these studies
came from the field, not the factory, which demonstrated significant opportunity to
engage more directly with our agricultural ingredient suppliers in advancing
sustainable water use. Guided in part by these assessments, to date, we have focused
studies on the “blue,” green” and “grey” water footprints of sugar beets, orange juice
and Coca-Cola to help us pinpoint potential sustainability impacts in specific
growing regions.
Addressing the quantity of water used to grow our product ingredients is not enough,
we also need to address the impact of that use as well. Understanding impact is
important, because large water footprints can be sustainable in water-rich areas,
while very small water footprints might compromise sustainability in places where

water is scarce. Gaining a clear understanding of impacts makes good environmental
sense and provides us with better guidance for prioritizing areas of concern. Coca-
Cola Europe has proposed a methodology for water footprint sustainability
assessments that considers impacts as well as water quantity. Read more about it.
Also, please see the section below and refer to the Sustainable Agriculture section
of our Sustainability Report for more details on our efforts with suppliers.
Issues they face during arranging and managing
Greater efficiency in water use does not mean making less product. To the contrary,
they intend to reduce their water use ratio—the amount of water we use per liter of
product produced—while growing our business. Their goal, set in 2008, was to
improve water efficiency system wide by 20 percent by 2012, compared with a 2004
baseline. Despite an expanding product portfolio and increased production
levels, they have achieved that goal. In 2011, they used 293.3 billion liters of water
to make 135 billion liters of product, giving them a water use ratio of 2.16 liters per
liter of product.
We are not stopping there. We are developing a new goal for further improving our
water efficiency between now and 2020.
Looking across their system, their data show that the highest water use ratios are
often in developing markets, where water risks may be higher. One main reason: In
developing markets, refillable glass bottles make up a large percentage of their unit
case volume, and cleaning returned bottles demands more water. Even in those
markets, their bottling plants typically draw a small percentage of water from local
water sources, and each plant’s source water protection plan helps mitigate any
threats to local water supplies.

CHAPTER 2
Task Environment: Porter’s 5 Forces Model
When (situation), Why (objective / reasons), How
(process), who (participants), Issues faced
Porter’s Five Forces Analysis was required by Coca Cola Beverages Limited
Pakistan when the company decided to launch 250ml pet bottles instead of the glass
bottle for the First Time in Pakistan. Moreover, coca cola used porter’s analysis
before starting their water stewardship program in order to reduce the water wastage.
The Objective of the Porter’s Analysis was to determine the success of the new Pet
bottles. Participants include customers of Coke from different segments, key players
of CCPBL and employees.
In what format they collected the data of Porter’s
Analysis
The company collected the data in the form of questionnaires, sampling data and
personal interviews with the customers. The major issues which CCPL faced was
related to the high cost of obtaining the data and of time
What benefits they get from conducting
PORTER’s Analysis?
The benefits of Porter are uncertain as yet because Coca Cola is to launch their Pet
Bottles in the Market.

Porters 5 Forces
Model
Discuss Effect
Positive Negative
Competitive Rivalry
1. Profit
Margin:
There is low Profit
margin in the soft drink
industry because the
switching cost is very
low. The customers that
are not too much brand
conscious of coca cola
can easily switch to Pepsi
Cola, Al though the taste
of Coca Cola is Unique
but still if we conduct a
blind survey by
presenting the
contestants with a variety
of cola drinks then it is
hardly possible that
consumers will be able to
differentiate the taste of
coca cola.
As there is
low profit
margin in
the
beverage
industry, so
coca cola
has to focus
on its
quality and
try to
improve it
further to
compete
with other
beverage
brands in
the market.
Continuous
efforts are
required for
the
competition.
Due to low
Profit
margin new
entrants can
easily enter
in the

2. Industry growth
rate and potential:
Coca Cola has a vast
global presence. It is
easily available in more
than 200 countries.
Because of sound and
consistent growth of
Coca Cola in local
industry and in the
international market, the
soft drink industry is
highly attractive for the
investors to invest.
market. In
case of
we see local
beverage
brands
appearing in
the market
like
Gourmet
Cola and
Cola Next
launched by
Meezan
Masala,
these local
brands are
offering soft
drinks to the
consumers
with similar
prices as
Coca Cola.

3. Diversity of
competitors:
4. Fixed Cost:
The major competitor of
coca cola is Pepsi. Pepsi
cola is also offering a
wide range of beverage
products. Coca Cola
always focuses on
promoting its brand by
sponsoring outdoor
events and activities.
E.g. coke studio. There
are also other brands of
soft drinks in the market
Like Dr. Pepper and
Starbucks etc.
Coca Cola has a
significant market.
Coca Cola has a
significant market share.
The fixed costs are a
high proportion of total
costs for a firm in the
soft drink industry. The
coca cola has high fixed
cost of warehouses,
labor, the cost of
production and
distribution. It spends
too
much on its advertising
and promotional
activities.
Due to the
highest
Fixed cost
of coca cola
and
Economies
of Scale that
coca cola is
enjoying,
the new
entrants
can’t
compete on
prices.
The major
competitor
of coca cola
is Pepsi.
Pepsi cola is
also
offering a
wide range
of beverage
products.
Coca Cola
always
focuses on
promoting
its brand by
sponsoring
outdoor
events and
activities.
E.g. coke
studio.
There are
also other
brands of
soft drinks
in the
market Like
Dr. Pepper
and
Starbucks
etc. Coca -
Cola has a
significant
market.

5. Close
Competitors:
6. Existing brand
identity:
The close competitor of
coca cola is Pepsi. Infect
Pepsi is a thorn in the
flesh of Coca Cola.
Pepsi derives its 70%
revenue from the North
and South America
while the coca cola
derives only 30% of its
revenue from America.
It indicates that coca
cola has not yet
maximized the potential
revenue outside the
America.
Coca Cola is not a soft
drink it’s a brand. The
brand valuation of coca
cola is $79.2 billion.
Inter Brand i.e. a Global
Brand Agency awarded
coca cola with the
highest brand equity
award in the year 2011.
Coca Cola has fantastic
market strategies.
Because of the good
taste of coca cola and
Fanta the customers are
loyal and they don’t like
to change their brand
easily.
A former
CEO of
coca cola
once
declared
that “If
every asset
we own,
every
building,
and every
piece of
equipment
were
destroyed in
a terrible
natural
disaster, we
would be
able to
borrow all
Coca cola
has a
sluggish
performance
in the North
America
because
Pepsi has a
monopoly
there.

7. Switching costs: Entry barriers are
relatively low for the
beverage industry. There
is no consumer
switching cost and zero
capital requirements.
There is an increasing
amount of new brands
appearing in the market
with similar prices than
Coke products.
There is basically no
price war between Pepsi
and Coca Cola because
their prices are almost
same. They basically
compete on advertising
and differentiation. Pepsi
Targets youth and coca
cola is for all ages.
There is basically no
price war between Pepsi
and Coca Cola because
the money
to replace it
very quickly
because of
the value of
our brand…
The brand is
more -
valuable
than the
totality.
of all these
assets.”
Coca cola
being an
international
brand can
spend a
huge
amount of
money on
its
advertising
but local
brands are
unable to
advertise
their soft
drinks to a
great extent
as coca cola
does.
Low
switching
cost affects
the
customer
retention
and
customer
loyalty. It
also allows
the new
entrants to
enter in the
market.

8. High are the exit
barriers
their prices are almost
same. They basically
compete on advertising
and differentiation. Pepsi
Targets youth and coca
cola is for all ages.
Exit barriers are high for
bottlers with expensive
equipment, moderate for
concentrate producers.
Advertising budgets are
high and customers are
influenced by brand
perceptions.

Porters 5 Forces Model
Porters 5 Forces
Model
Discuss Positive Negative
1. Bargaining
Power of
Suppliers.
2. Substitutes for
your suppliers’
products
Low Pressure
The soft drink products
have standard raw
material ingredients
which could not have
any alternative to use as
an actual ingredient.
Each firm has a
different formula, color,
and flavor for their
beverage. No two
products are typically
exactly alike.
It is fairly easy for coca
cola to become a
supplier within the
industry and thus it
would not find it
difficult if it wanted to
enter. If another
supplier does the same
job but is cheaper, the
firm can switch without
much issue. Coca cola
has a capacity for
It will help
the company
in lowering
its cost of
production
and it also
helps in
improving its
efficiency to a
greater extent.

3. High switching
cost to use
another supplier
4. Threat of New
Entrants
5. Loyalty of the
end users
backward and forward
integration.
No, the supplier has no
bargaining power over
price. There is low
switching cost of the
raw material. Raw
material is easily
accessible. So the
manufacturer can easily
shift from one supplier
to another.
Medium to low
pressure: Coca-Cola
and its rivals do have
special licensing deals,
including having their
products sold in fast
food chains and
different distribution
deals.
Both Pepsi and Coca-
Cola dominate the
beverage industry due to
co-branding it is
impossible to enter in
the beverage industry
for a new company.
Coca-Cola enjoys high
customer loyalty,
because of their high
brand equity. Therefore,
new competitors find it
Improved
efficiency,
cost cutting,
time saving,
and
elimination of
intermediaries
and no
chances of
disputes with
the supplier
of input.
This is a
positive effect
because this
will keep the
competition
at the
minimum and
ultimately, it
will lead to
maintained
profitability.
The loyalty of
the users has
very positive
effect on the
sales of the
coca cola the
users are in
The loyalty
of the users
cannot
have any
negative
effect.
Due to low
switching
cost the
users can
switch to
the new

6. Difficulty in
switching cost
as customer
almost difficult to
counterpart this loyalty.
Coca-Cola is seen not
only as a beverage but
also as a brand. It has
held a very significant
market share for a
decade of times and
loyal customers are not
very likely to try a new
brand.
There is no consumer
switching cost. There is
an increasing amount of
brands appearing in the
market having similar
prices than Coke
products. The soft drink
industry is fully
saturated.
the habit of
drinking coke
only and they
won’t
welcome any
new
company.
As the
switching
cost is low so
users remains
with the
brand they
use.
brand or
product.

7. Seed capital to
enter this
industry
The seed capital
required to enter this
industry is a huge
amount and energy. To
compete with coke and
Pepsi is not an easy task.
Capital requirements for
producing, promoting,
and establishing a new
soft drink traditionally
have been viewed as
extremely high.
According to industry
experts.
this makes the
likelihood of potential
entry by new players
quite low A lot of
capital is needed to
enter this industry and
compete with coke
because there are large
capital costs needed for
manufacturing.
Bottling, distribution,
and storage could be
contracted out, but it
would likely increase
costs in the long run and
weaken the supply
chain.
The seed
capital
required is
very huge so
it is positive
for coke as
the new
comers will
hesitate to
start the
business in
beverages
industry due
to large
capital
requirement.
Well for
new comer
it has
negative
effect that
he/she
requires a
huge
amount of
capital to
start the
business

8. Government
rules
If we talk about the
government than they
give tax relief and other
facilities to international
brands when they want
to enter Pakistan. So this
is threat for coke. There
are licenses, insurances,
and other difficult
qualifications required
in this industry.
Companies must get
FDA approval to sell
their product, have
licenses to produce and
distribute
internationally, and
insurance to cover
potential lawsuits,
accidents, or faulty
product.
The
governmental
rules are
favorable for
coke as well
as for entrants
because
Pakistan
promotes the
international
brands to
invest.
The
negative
thing is the
licenses
etc. that
needs to be
made. And
they are
difficult to
get.

9. Difficulty in
Skill acquiring
10. Economies of
scale
There is a substantial
knowledge and skill
barrier in terms of being
able to develop soft
drinks that could
successfully compete
with industry leaders
such as Coca Cola. Due
to technological barriers
it is almost impossible
for the other companies
to compete successfully
with Coca-Cola that has
vast global presence
New entrants lack in
skills as compared to the
established market
leader like Coca-Cola.
Experience in this
industry does help firms
to lower costs and
improve performance.
The major brands run on
economies of scale, and
have experienced the
highs and low of the
industry and overcome
them. New entrants can
learn from the first
entrant’s history but do
not have firsthand
experience.
distribution channels
setup.
Obviously the
positive effect
is this that the
new entrants
are not that
powerful and
they also do
not have the
required skills
to compete
with coke.
Coca-Cola
can earn more
profit due to
this
advantage
and the new
entrants
cannot avail
this
advantage.
If
competitors
do not have
the
potential
and skills,
then the
coke won’t
have any
negative
effect on it.
It does not
have any
negative
effect on
the coca
cola.

11. Strong,
established
cost
advantages
Existing firms have cost
and performance
advantage in this
industry.
This is because existing
firms have already
purchased large capital
expenditures and have
economies of scale.
They also have direct
supply and
distribution channels
setup. But for new
entrants it is difficult as
they have no experience
to handle the cost of
production and other
matters as well. Coca-
Cola enjoys strong cost
advantages.
Coca-Cola
can earn more
profit due to
this
advantage
and the new
entrants
cannot avail
this
advantage.
It does not
have any
negative
effect on
the coca
cola.

12.Strong,
established
brands.
Coca-Cola is seen not
only as a beverage but
also as a brand. It has
held a very significant
market share for a long
time and loyal
customers are not very
likely to try a new
brand. The coca cola is
major soft drink that
have well-known brand
identities, with the
exception of generic
brands and this Brand
identity define coca cola
‘s flavor.
Coca cola has
a brand image
and coke
enjoys the
benefit of this
The new
entrants are
faced with
this
difficulty
as they are
do not have
any brand
image and
they are
faced with
the price
and brand
competition
from the
existing
firms.

13.Limited or
restrained
access to
distribution
The coca cola has
already offered
Retailers significant
margins of 15-20% on
soft drinks for the shelf
space. These margins
are quite significant for
their bottom-line. This
makes it tough for the
new entrants to
convince retailers to
carry substitute their
new products for Coke
and Pepsi. New entrants
also fear retaliation as
Coca Cola will not
allow them to enter.
There is backward
integration in Coca-
Cola therefore new
entrants cannot locate
bottlers to distribute soft
drinks. A new comer to
the industry would face
difficulty in assessing
distribution channels.
The coke already
controls the main
distribution channels,
such as big
supermarkets, gas
stations, and
restaurants. They have
low costs, competitive
pricing, and strong
business relationships.
The new
entrants are
also faced
with limited
access to
distribution
the
distributors
do not
entertain the
entrants as
they are
already doing
work with the
brands like
coca cola.
It only has
the
negative
effect on
the new
entrants
and not on
the existing
ones.

PORTER’s 5 FORCES MODEL
PORTER’s 5
FORCES MODEL
Discuss Effect
Positive Negative
1. Bargaining
Power of
Customer
Moderate pressure
The individual buyer
no pressure on Coca-
Cola. Large retailers,
like Wal-Mart, metro,
hyper star have
bargaining power
because of the large
order quantity, but the
bargaining power is
lessened because of the
end consumer brand
loyalty. The customer
buy from local brands
like gourmet cola due
to low price but there
exist a difference in the
quality, taste of these
products. When it
comes to the bottled
beverages market,
buyers have a fair
amount of bargaining
power, and this affects
Coca-Cola's bottom
line directly. Coca-
Cola does not sell
directly to its end
users. They deal with
distribution companies
that service fast food
chains, vending
machine companies,
Coca cola
do not
directly deal
with the
individual
customer so
in this
scenario it
is positive
that it donor
deals with
the
bargaining
of the
customer.
The negative
is impact is
the dealing
with the
retailers and
the
wholesalers as
the have the
bargaining
power and
coca cola has
to listen to
them as they
are the people
who delivers
the coke to the
customers.

college campuses and
grocery stores.
Demand leads the
purchases, but coca
cola also has to keep an
eye on what that end
price will be.
There is no switching
cost because people
also buy from Pepsi.

2. How large
are your
buyers’
company?
3. How many
companies are
there for the
buyer to
choose from?
The buyers company
of coca cola are large
enough. The big store
and different fast food
industries buy from
coca cola. Coca cola’s
buyers includes Hyper
star, Alfatteh, Metro,
Macro and different
fast food companies
like McDonald’s,
Hardees etc. coca
cola’s customers
include large
international chains of
retailers and
restaurants and small
independent
businesses.
Buyer do not have
much choice to choose.
There are very few
brands to choose.
There is Pepsi, Cola
Next and Gourmet
cola. Other soft drinks
are marinda and dew
but they are not colas.
The positive
thing is that
coca cola
has a huge
amount
customer
which
purchases
the coke in
bulk and
coke does
not need to
go to the
individual
customers
and they
earn more
from these
customers
As in
Pakistan
there are
less number
of brands of
colas so
buyers do
not
have many
choices.
And in this
case the
sales
volume of
coca cola
rises.
The negative
effect is that as
coca cola has
these huge
customers if
they blackout
and donor take
coke from
Coca-Cola
then coca cola
will face loss.
Like if mc
Donald’s stops
buying from
coke than coca
cola will face
loss.
Pepsi is the
strong
competitor for
coca cola and
buyer can
shift.

4. Are the buyers
buying a huge
volume?
5. Do you depend
only on a few
buyers to
sustain your
sales?
Yes, obviously, the
buyers are buying in
huge amounts. The
daily sales of Mc
Donald’s on average is
75.21 million per day
so they have to arrange
Coca-Cola accordingly
and they buy coca cola
in huge amount. Same
is the case with other
buyers.
Coca cola do not
depend on few buyers
only. They have a lot
of buyers to sustain
their sales.
It has the
positive
effect as the
buyers buy
in huge
amount of
coke.
They have
many
buyers so
they want
have any
kind of
problem
and this is
positive.
It has the
positive effect
as the buyers
buy in huge
amount of
coke.
It has a
negative
impact as
there is no
switching
costs. And
buyer can
easily shift to
the other
product. But
some
wholesalers
like Alfatteh
they also
purchase from
competitors.

6. How hard is it
for the buyers
to switch and
use a
competing
product?
cost in the beverage
industry that customer
can easily switch.
Coca- Cola does enjoy
brand loyalty; this
usually extends to
refusal to drink another
cola but not a refusal to
consume another
beverage altogether.
The profit potential to
that industry rises and
it makes an industry
attractive in that way.
It is not hard for the
buyers to switch to
another brand and it’s
not difficult for the
buyers to use
competing products.
For example, Al-Fatah
store, hyper-star
purchase soft drinks in
a bulk quantity but
they also purchase
another brand of soft
drinks like Pepsi, next
cola etc.
they also purchase
drinks like Pepsi etc.
But in fast food chain
industries, vending
machines, college etc.
these buyers only
purchase one brand
like in Pizza hut, KFC,
Hardees only purchase
Switching
costs are low
for a buyer,
then
dissatisfaction
of a product
will lead to
loss of
business as the
buyer will be
able to find an
alternate with
minimum
hassle and
inconvenience.

7. Are the buyers
purchasing
from you as
well as your
competitors?
8. How hard is it
for the buyers
to switch and
use a
competing
product?
Pepsi in that way they
increase the sales of
Pepsi while
McDonalds’ only buy
the Coca-Cola.
Yes, the buyers’
purchases from Coca-
Cola as well as other
brands. For example,
retailers Al-Fatah
store, hyper-star
a bulk quantity but
cost in the beverage
industry that customer
can easily switch.
Coca- Cola does enjoy
brand loyalty; this
usually extends to
refusal to drink another
cola but not a refusal to
consume another
beverage altogether.
The profit potential to
that industry rises and
it makes an industry
attractive in that way.
It is not hard for the
buyers to switch to
another brand and it’s
not difficult for the
buyers to use
competing products.
Some
buyers
purchase
only from
coca cola
like
McDonald’s
so it is
positive.
Switching
costs are low
for a buyer,
then
dissatisfaction
of a product
will lead to
loss of
business as the
buyer will be
able to find an
alternate with
minimum
hassle and
inconvenience.

9. Are the buyers
purchasing
from you as
well as your
competitors?
For example, Al-Fatah
store, hyper-star
a bulk quantity but
they also purchase
drinks like Pepsi, next
cola etc.
Yes, the buyers’
purchases from Coca-
Cola as well as other
brands. For example,
retailers.
Al-Fatah store, hyper-
star purchase soft
drinks in a bulk
quantity but
they also purchase
drinks like Pepsi etc.
But in fast food chain
industries, vending
machines, college etc.
these buyers only
purchase one brand
like in Pizza hut, KFC,
Hardees only purchase
Pepsi in that way they
increase the sales of
Pepsi while
McDonalds’ only buy
the Coca-Cola.
Some
buyers
purchase
only from
coca cola
like
McDonald’s
so it is
positive

10. Do the buyers
have the capacity to
enter your business
and produce the
goods themselves?
Yes, the buyers have
the capacity to enter in
the business and
produce the goods
themselves like
McDonalds’ produces
the Coca-Cola itself.
Same in the case of
Hardees, Fat-burger,
and Pizza-hut they can
produce Coca-Cola
itself in that way these
buyers have the
capacity to enter in the

Porter’s 5 Forces Model
Porter’s 5 Forces
Model
Discuss
Effect
Positive Negative
1. Threat of
Substitutes
Medium to High
pressure
There are many kinds of
energy drink s/soda/juice
products in the market.
Coca-Cola doesn’t really
have an entirely unique
flavor. In a blind taste
test, people can’t tell the
difference between Coca-
Cola and Pepsi. There is
no switching cost in the
beverage industry that
customer can easily
switch.
Indirect competitors of
coca cola is star bucks
coffee, they advertise
their product as healthier
than the soft drinks. In
developed countries the
health conscious people
prefer the health
alternatives beverages.
Fox example Dr. pepper
providing the unique
flavors as compared to
the coca cola that
provides only carbonated
beverages.

2. Close
substitutes
available
3. Perceived
quality of the
substitutes
As a product, most people
cannot differentiate the
taste from other similar
cola products. So for
many, it is a substitutable
product.
The rising awareness of
cola products and their
negative impact on health
have led to other
beverages such as water
and juices becoming
more potential in market.
Fox example Dr Pepper
providing the unique
flavors as compared to
the coca cola that
provides only carbonated
beverages.
These substitutes provide
the best quality of their
products like star bucks
coffee, water and juices,
increasing number of
sports and health based
drinks in developed
countries.
The quality of products
improves through R&D
and continuous quality
improvement programs.
Because of
availability
of close
substitutes
of soft
drinks in
the market
customer
gain
advantage
over Coca-
Cola. Other
substitute
provides
unique
flavors as
well as
quality
products
Proper
quality
insurance
programs
have a
positive
impact on
Coca-Cola
industry. In
that way
new
innovations
are
required for
the
customer
attention.
Availability
of close
substitutes
in Coca-
Cola
industry
affects their
sales
volume and
hence the
sales
decreases.
According to
perceived
quality of
substitute’s
star-bucks
provides the
best quality
to their
customers. It
has a
negative
impact on
Coca-Cola
industry.
Sales decline
people move
from one
brand to
another.

4. Buyer
inclination to
substitute
5. Switching costs
6. Availability of
substitute
Customer can easily
switch to other substitute
so in that case buyer
propensity to substitute is
high.
There is switching costs.
As health conscious
people switches to
another brands like fresh
juices energy drinks etc.
There are many kinds of
energy drinks/soda/juice
products in the market.
Coca-Cola doesn’t really
have an entirely unique
flavor Indirect substitutes
of coca cola is star buck’s
coffee; they advertise
their product as healthier
than the soft drinks.
In developed countries
the health conscious
people prefer the health
alternatives beverages.
Health
conscious
people
prefer
substitutes
in
developed
countries so
that it has a
positive
impact on
health
rather than
purchasing
carbonated
products.
Coca-Cola
offer
carbonated
beverages
that cause
obesity. In
the
developed
countries
the health
conscious
people
prefer
substitutes.
It will
decrease the
sales of
Coca-Cola.
There are
many
substitutes
and health
conscious
people
prefers tea
and
coffee more
than coke.

Societal Environment: PESTEL Analysis
PESTEL Discuss
Discuss
Effects
Political Factors Positive Negative
1. Political
Instability and
Strikes
CCBPL claims to have
warehouses that stores
cokes suffice to meet the
demand in case of series
of strikes and political
disruption for 1-3
months.
In the early years of the
company, Coca-Cola
was effected by that
political decision in
which U.S Government
asked them to remove
one ingredient from their
actual formula.
It has positive
effect on
coke because
of that
political
decision coke
has more
customers
because after
removing that
ingredient
customer
became more
loyal with
coke. Now
they trust on
coke and
considered it
as health
conscious
beverage.
It has
negative
impact on
coke.

2. Consumer
Laws
3. ECONOMIC
FECTORS
Coca-Cola has been also
effected in the turkey and
India by political
decisions when Israeli
attacks on Gaza in 2014,
then Turkey, and more
than 100 hotels in
Mumbai, stop selling
products of Coca Cola
Company because these
countries said that the
attacks of Israel on Gaza
is because of its
economic power. So they
should stop selling
products of those brands
which contribute to the
Israeli economy and
Coca-Cola brand is one
of them who directly
contribute to Israeli
economy.
So here Coca Cola brand
is effected by the
political decisions of
Turkey
The global economic and
financial crisis of 2007 –
2009 is a relevant
example of an economic
factor that greatly
impacted the majority of
businesses around the
globe.
However, the crisis has
impacted Coca Cola to a
lesser extent compared to
many other businesses.
No doubt
coke was
effected
lesser by
that
recession
but it was
effected by
economic
factors in a
negative
way.

4. Social Factors:
Healthy
Lifestyle
Concerns
Its operating margin
remained at industry-
front 22% despite the
crisis, although dividend
yield was reduced to
2.6%
Arguably, fluctuations in
exchange rate is the most
significant economic
factor that has adversely
impacted Coca Cola
performance in recent
years. For example, due
to severe currency
devaluation in
Venezuela, Coca Cola’s
reported profits in this
market has to be reduced
by 55% in the fourth
quarter of 2014 and there
are similar instances in
other parts of the world
Media today, is fostering
interest in healthy
lifestyles. That has
strongly influenced the
sales within non-
alcoholic beverage sector
as many customers
switch to mineral water
bottles and fresh juices.
In this regard, CCBPL
has successfully come up
with the products such as
Coca-Cola Light or Zero
that addresses the
healthy diet concerns.
It has a
positive
impact on
customers
because
customer
known that
this
beverages
brand is
health
conscious.
Change in
exchange
rate effect
coke in a
negative
way
because of
this change
prices of
coke also
effects and
this lead to
the
decrease in
profitability
of coke.
It has a
negative
impact on
coke
because the
sale of
company is
decreasing
so
company
should
revise their
policies
and
strategies.

Also, as the baby
boomers are aging, they
are getting more
conscious and more
concerned about diet
choices that will
influence their life
expectancy. This
contributes to the
increasing demand for
healthier drinks on the
non-alcoholic beverage
sector.

5. Adaption and
cultural
borrowing
6. Technologic
Factors: Coke’s
Marketing,
Advertising,
and
Promotional
Programs
Adaption plays
a significant role in
capturing the
international markets.
And willingness to adapt
is a crucial attitude. The
company realizes that
these differences exist
and tries to understand
and cope with them in a
proper manner. The
advertisement
campaigns focus on
relationships, family
events and gatherings,
festive occasions like
Eid and music.
The most evolving media
for promoting the
company’s products are
through the TV,
websites, and social
media.
CCBPL possess mind-
blowing strategy to
effectively promote their
products through these
channels that enhances
its sales. It is reported
that Coke Studio Session
8 raised the company’s
sales by 42%.
I have
positive
impact on
customers
because
coke realizes
the need of
their
customers
on their
religious and
cultural
occasion and
it advertise
according to
occasion
like on Eid
and 14-Aug.
It has a
positive
impact on
coke
because
after the
Coke Studio
Session 8
raised the
company’s
sales by
42%.
Pakistan is
an Islamic
country and
it has some
religious
believes. In
Islam
music is
not allowed
so coke is
destroying
the Islamic
values of
Pakistan
attracting
the
youngsters
through its
musical
campaigns.

7. Access to the
Internet
8. Packaging design
With the ease to access
internet, social media has
become a great mean to
provide huge growth in
consumer awareness,
brand identity,
promotions and direct-
to-consumer
Communication.
As the cans and plastic
bottles were introduced,
the sales volume
increased with a great
margin for the company
because of the ease in
carrying and disposing
the containers.
I have
positive
impact on
customers
because it has
cheapest way
of
advertisement
instead of
electronic
media.
It has a
positive
impact on
customer
because they
design their
bottle
according to
situation.
E.g.:
On 14 Aug
they design
their
packaging
according to
our national
flag color.
It has on
negative
impact on
company
policies
because
those
people who
are not
using
internet
can’t aware
brand
identity.

9. New
Equipment
10. Reduced Cost of
Production
Because the technology
is continuously
advancing, new
equipment is constantly
being introduced by
CCBPL. Because of
these new technologies,
Coca-Cola's production
volume has increased
sharply compared to that
of a few years ago.
With the up gradation of
technology and high
levels of automation in
manufacturing, volume
production is being done
that has reduced the cost
of production.
It has impact
on customer
because they
use
innovative
technology.
It has
positive
impact on
Coke.

CHAPTER 3
Internal Analysis: Organizational Perspective
 Vision / Mission / Core Values (discuss separately)
Vision
…………...………………………………………………………………..
“To become a market leader in ready to drink segment while adding
best-in-class value to all stakeholders.”
……………………………………………………………………………
 When, how (Process), Who (Develop & Participate), Issues
faced
The vision of Coca Cola Beverages continuously revises with the achievement of
their vision after 5 to 10 years.
The process of making a vision statement at CCBPL include the following steps
1) The company’s country head and top management meet up as per the achievement
of the previous mission and monitor the internal and external company’s
documentations.
2) After monitoring and evaluating the current company’s documentation, the top
management give their suggestions and feedback on what they have evaluated from
the company’s documentation and each member of the top management proposes
their own vision statement.
3) The company’s officials meet and proposes their own vision statement and the
office staff compile them in the form of minutes of meetings and merge the
document.

4) The company’s officials conduct internal and external analysis to revise mission
and vision statements and with then the consent of all members of the top
management the best mission statement is chosen.
The issues that CCBL faced when devising vision statement often include biases of
data gathering and biases of the data in documentations. The data evaluated is then
verified and then evaluated to account for in the vision statement.
Mission
………………………………………………………………………….....
“Coca-Cola Pakistan exists to refresh the consumers, inspire moments
of optimism through our brands and actions as well as benefit all
stakeholders, which we will do with highest social responsibility and
with uncompromising commitment towards quality of our products
and integrity in our operations”
.……………………………………………………………………………
 When, how (Process), Who (Develop & Participate), Issues
faced
The same procedure and processes are followed to produce as they are followed for
vision statement. The company considers mission statement as an expansion of
vision and take into consideration certain factors to produce mission which include
the following;
1) Technology
2) Brand image
3) Philosophy
4) Ethical and sustainability considerations
5) Customers and External Stakeholders
6) Internal Stakeholders
7) Competitive advantage and core competencies.

Core Values
……………………………………………………………………………
“Our Core Values underlie everything we do. We live by them for two
reasons; they are good and right in themselves,
worthy of adherence even at the risk of loss of profit-making
opportunities, and they epitomize our Company’s integrity,
which we believe will produce value for our stakeholders over the long
term.”
……………………………………………………………………………
• Accountability: We act with high sense of responsibility and hold ourselves
accountable.
• Integrity: We are open, honest, ethical and we trust and respect each other
• Teamwork: We collaborate for our collective success
• Passion: We put our hearts and mind into what we do.
How they are aligned (Vision / Mission / Core Values)
As per the company’s officials, the mission is the expansion of the vision after
consider certain factors which are discussed above and core values are based on the
original vision set by the company after every 5 to 10 years. All three of them are
completely and work towards the achievement of same goals and objectives. The
Managerial staff at coca cola as least effected by the mission and vision outlined
initially by the coca cola. Based on the mission statement, coca cola trying to
increase the use of technology and reducing the non-managerial staff. They are also
cutting costs by reducing the number of people in the company, keeping only the
specialized staff and by paying more the company gives them more tasks.

Organizational Policies
Organizational policies are guidelines that outline and guide actions within a
business or agency. The exact types of policies will vary depending on the nature of
the organization and can include policies such as directions, laws, principles, rules
or regulations. A policy is a guiding principle used to set direction in an organization.
A procedure is a series of steps to be followed as a consistent and repetitive approach
to accomplish an end result.
 CLIMATE CHANGE POLICY
Climate Change Policy Statement Coca-Cola Hellenic strives to limit its impacts on
climate change and to carry out all its business activities in a sustainable manner.
We believe that industry has a key role to play in finding sustainable solutions to
today’s climate challenges. The direct greenhouse gas emissions from Coca-Cola
Hellenic operations result mostly from the use of energy in bottling plants and fleet.
Indirect emissions stem from raw materials (ingredients and packaging) and cold
drink equipment. In accordance with our Environmental Policy, we will: • Reduce
the energy used in our operations. • Implement alternative or renewable energy
technologies such as combined heat and power plants and solar panels, where
practical to provide additional sustainable energy for our facilities. Engage with
stakeholders to combat climate change. Work with suppliers to reduce the carbon
embedded in packaging materials, the carbon footprint of our cold drink equipment
and ingredient suppliers to minimised their carbon impacts. • Set targets to reduce
our supply chain carbon emissions • Report our greenhouse gas emissions, targets,
results and activities openly and in accordance with the Greenhouse Gas Protocol.
As Chief Executive Officer I am committed to this Climate Change Policy Statement
which is owned and endorsed by the Corporate Social Responsibility Committee of
the Board of Directors. Responsibility for the successful implementation of this
program belongs with every Coca-Cola Hellenic employee at each level and function
in the organization.

CODE OF BUSINESS CONDUCT
(INTEGRITY IN THE COMPANY)
This Code of Business Conduct is designed to help all of us to live up to the values
that make Coca-Cola Hellenic one of the most successful and respected
organizations in the world. These values include:
• Authenticity
• Performing as one
• Excellence
• Caring for our people
• Learning
• Winning with customers
The Code sets out the Company’s commitment to conducting business in accordance
with our values, all applicable laws and regulations and industry standards. It
provides guidance on what is expected of each of us and references other Company
policies and guidelines. Failure to comply with the Code or any Company policy is
treated very seriously and may result in disciplinary action, up to and including
dismissal. Some situations may seem ambiguous. Exercise caution when you hear
yourself or someone else say “It has always been done this way,” “Everybody does
it,” “Maybe just this once,” “No one will ever know” or “It will not matter in the
end.” These are signs to stop, think through the situation and seek guidance. Most
importantly, do not ignore your instincts. Ultimately, you are responsible for your
own actions. If you are still uncertain, ask for guidance. The Code Triesto capture
many of the situations that employees will encounter, but cannot address every
circumstance. You can seek help from your Code Compliance Officers or higher
level management. You are also required to report violations, and suspected
violations, of the Code. This include situations where others ask you to violate the
Code. There will never be reprisals for making any reports, and every effort will be
made to maintain confidentiality. Managers must lead by example, and act as role
models for others. As a manager, you should:

 Ensure that the people you supervise understand their responsibilities under the
Code and other Company policies.
 Take opportunities to discuss the Code and reinforce the importance of ethics
and compliance with employees.
 Create an environment where employees feel comfortable raising concerns.
 Consider conduct in relation to the Code and other Company policies when
evaluating employees.
 Never encourage or direct employees to achieve business results at the expense
of ethical conduct or compliance with the Code or the law.
 Always act to stop violations of the Code or the law by those you supervise.
GUIDANCE FROM CORE COMPLIANCE OFFICER
 Country Employees: Your Code Compliance Officers are your General Manager
and your Country Legal Director. However, for questions relating to potential
bribery or corruption, your Code
Compliance Officer is your Country Legal Director only.
 Country Function Heads and Regional Managers: Your Code Compliance
Officers are your General Manager and Region Legal Director. However, for
questions relating to potential bribery or corruption, your Code Compliance
Officer is your Region Legal Director only.
 General Managers and Group Function Employees: Your Code Compliance
Officer is the Chief Compliance Officer, including for questions relating to
potential bribery or corruption.

 Chief Executive Officer: Your Code Compliance Officer is the Audit
Committee. However, for questions relating to potential bribery or corruption,
your Code Compliance Officer is the General Counsel.
 Other Operating Committee Members: Your Code Compliance Officers are the
Chief Executive Officer and the General Counsel. However, for questions
relating to potential bribery or corruption, your Code Compliance Officer is the
General Counsel.
If you are uncertain as to who you should contact or are unable to reach your
Code Compliance Officers, you should contact your General Manager or
Function Head for further guidance. Under the Code, certain actions require prior
written approval. Where approval is required, both Code Compliance Officers
must approve (if you have more than one applicable Code Compliance Officer).
For recurring or ongoing actions, this approval should be renewed annually, or
anytime there is a change in either the situation or any of your Code Compliance
Officers. Copies of these approvals should be submitted by each Code
Compliance Officer to and maintained by the appropriate legal department, and
made available to auditors or investigators if required.
You have several options for raising issues and concerns.
Whether seeking advice or speaking out, you can always go to your manager. If you
prefer, you can contact any of the following:
 Your Code Compliance Officers
 Your General Manager
 Your Function Head
 Your Country Legal Director
 Your Region Legal Director
 The Chief Compliance Officer

 Financial, accounting or auditing matters should be reported to the Head of
Internal Audit or to the Chairman of the Audit Committee.
 Suspected Code violations of a serious nature, such as those involving high
levels of management, significant monies, financial misstatement, or alleged
criminal activities should be reported to the General Counsel, Group CFO or
Head of Internal Audit immediately.
The Company has additional policies and procedures
governing conduct that may have their own disciplinary
consequences.
1. No Retaliation
The Company values the help of employees who identify potential problems that we
need to address. Any retaliation against an employee who raises an issue honestly is
a violation of the Code. That an employee has raised a concern honestly, or
participated in an investigation, cannot be the basis for any adverse employment
action, including separation, demotion, loss of benefits, threats, harassment or
discrimination. If you work with someone who has raised a concern or provided
information in an investigation, you should continue to treat the person with courtesy
and respect. If you believe someone has retaliated against you, report the matter to
your Code Compliance Officers or the General Counsel.
2. Working with Each Other
Within our Company we promote equality of opportunity. Selection and reward are
based on merit without regard to race, color, religion, sex, sexual orientation,
citizenship status, national origin or disability. We will comply with all applicable
laws relating to employment practices and expect all of our employees to treat each
other with dignity and respect. COCA COLA

3. Product Quality
Our customers choose us because we provide a consistently superior product and
service. Ensuring that our products are of the highest quality is critical to our success.
We must each be aware of and follow Company policies and procedures that protect
the quality of our products. In addition, we expect our suppliers to ensure the quality
and safety of the products and services they provide to us. For this reason, we choose
suppliers who share our values and who deliver superior products and services.
4. Health & Safety
Health and safety is a critical value of the Company. We always comply with
applicable and Safety health and safety rules and regulations. In addition, we
consistently promote safe operating practices and avoid undue risk to our colleagues
and our communities. We require all employees to follow safe work practices in the
interest of their own safety as well as that of fellow employees. Safety is the
responsibility of each and every employee. Employees can prevent injury to
themselves and their co-workers by always following safe work practices and
reporting any unsafe conditions you observe. Many employees go beyond these
basic responsibilities by participating on safety committees, giving management
input on safety policies and procedures, helping conduct safety inspections or
assisting with accident investigations.
5. Intellectual Property
Our Company’s intellectual property, whether licensed or owned, is among its most
valuable assets. We therefore must protect our Company’s intellectual property
rights. Intellectual property refers to anything we create on Company time, at the
Company’s expense or within the scope of our job duties. The Company owns the
rights to anything we create through our work with the Company to the full extent
permitted by law, regardless of whether this property is patentable or able to be
protected by copyright, trade secret or trademark. Examples of intellectual property
include copyrights, patents, trademarks, trade secrets, design rights, logos, software
programs, business processes and delivery or production methods.

6. Technology
Company computer systems and equipment are meant for company use, and for use
in accordance with the Company Information Protection Policy. For example, they
should never be used for outside businesses, illegal activities, gambling or
pornography. You may not download or store illegal or inappropriate content or
programs from the Internet on your Company computer. Always use licensed
software in accordance with the terms of the relevant licensing agreement, which is
available from your Country BSS department. Copies of software may be made only
as specified in the relevant licensing agreement. You must not sell, transfer or
otherwise make available to any unauthorized person any software products or
related documentation licensed to or owned by the Company.
ENVIRONMENTAL POLICY
Coca-Cola Hellenic is committed to conducting all its business activities responsibly
with due regard to environmental impact and sustainable performance. The
Company believes that the environment is everybody’s responsibility and all
employees are accountable for environmental performance. Coca-Cola Hellenic
seeks to achieve steady improvement in meeting its environmental standards while
working to minimize any negative impact on the local and global environment as the
Company grows its business. To reach these targets, Coca-Cola Hellenic:
 Conducts operations in compliance with all applicable laws and
regulations and applies its high internal environmental standards.
 Implements and certifies the internationally recognized environmental
management system, ISO 14001, in all of its operations to ensure
accountability and continuous improvement.
 Includes environmental strategies and objectives in its business
planning process to ensure that management of environmental impact
remains an integral part of its operations.

 Identifies environmental aspects, sets environmental goals, monitors
result and audits processes in order to assess its performance against
internal and external environmental standards.
 Identifies and implements ways to improve the efficiency with which
the Company uses materials and resources, prevents pollution,
minimizes emissions, and recycles waste.
 Commits to conserve watersheds by saving water and treating
wastewater.
 Commits to protecting the climate by reducing energy use and coolant
emissions.
 Plays a leading role within the beverage industry in promoting
sustainable packaging by light weighting, recycling beverage
containers and using recycled content in its packages.
 Encourages and equips its employees to identify and act upon
opportunities to improve environmental performance and waste
management in the areas where they work.
 Partners with stakeholders in seeking and developing solutions to those
environmental problems on which the Company can make an effective
and lasting contribution.
 Communicates its environmental requirements and performance to
stakeholders. The responsibility for overseeing the implementation of
this policy lies with the Corporate Social Responsibility Committee of
the Board of Directors. As Chief Executive Officer I am committed to
the Coca-Cola Hellenic Environmental Policy.

HUMAN RIGHTS POLICY
Respect for human rights is fundamental to the sustainability of Coca-Cola HBC and
the communities in which we operate. In our Company we are committed to ensuring
that people are treated with dignity and respect. Coca-Cola HBC’s Human Rights
Policy is guided by international human rights principles encompassed in the
Universal Declaration of Human Rights, the International Labor Organization’s
Declaration on Fundamental Principles and Rights at Work, the United Nations
Global Compact and the United Nations Guiding Principles on Business and Human
Rights. The Human Rights Policy applies to Coca-Cola HBC, the entities that it
owns, the entities in which it holds a majority interest, and the facilities that it
manages. The Company is committed to upholding the principles in this Policy. Our
Supplier Guiding Principles apply to our suppliers and are aligned with the
expectations and commitments of this Policy.
1. Respect for Human Rights
Coca-Cola HBC respects human rights. We are committed to identifying and
preventing any adverse human rights impacts in relation to our business activities
through human rights due diligence and preventive compliance processes.
2. Community and Stakeholder Engagement
We recognize our impact on the communities in which we operate. We are
committed to engaging with stakeholders in those communities to ensure that we
listen to, learn from and take into account their views as we conduct our business.
Where appropriate, we are committed to engaging in dialogue with stakeholders on
human rights issues related to our business. We believe that local issues are most
appropriately addressed at the local level. We are also committed to creating
economic opportunity and fostering goodwill in the communities in which we
operate through locally relevant initiatives.
3. Valuing Diversity
We value the diversity of our people and the contributions they make. We have a
long-standing commitment to equal opportunity and do not accept discrimination
and harassment. We are dedicated to maintaining workplaces that are free from
discrimination or harassment on the basis of race, sex, color, national or social origin,
religion, age, disability, sexual orientation, political opinion or any other status
protected by applicable law. The basis for recruitment, hiring, placement, training,

compensation and advancement at the Company is qualification, performance, skills
and experience. Regardless of personal characteristics or status, the Company does
not tolerate disrespectful or inappropriate behavior, unfair treatment or retaliation of
any kind. Harassment is unacceptable in the workplace and in any work-related
circumstance outside the workplace. These principles apply not only to Company
employees but also to the business partners with whom we work.
4. Freedom of Association and Collective Bargaining
We respect our employees’ right to join, form or not to join a labor union without
fear of reprisal, intimidation or harassment. Where employees are represented by a
legally recognized union, we are committed to establishing a constructive dialogue
with their freely chosen representatives. We are committed to bargaining in good
faith with such representatives.
5. Safe and Healthy Workplace
We provide a safe and healthy workplace and comply with applicable safety and
health laws, regulations and internal requirements. We are dedicated to maintaining
a productive workplace by minimizing the risk of accidents, injury and exposure to
health risks. We are committed to engaging with our employees to continually
improve health and safety in our workplaces, including the identification of hazards
and remediation of health and safety issues. We are committed to maintaining a
workplace that is free from violence, harassment, intimidation and other unsafe or
disruptive conditions due to internal and external threats. Security safeguards for
employees are provided as needed and will be maintained with respect for employee
privacy and dignity.
6. Forced Labor and Human Trafficking
We prohibit the use of all forms of forced labor, including prison labor, indentured
labor, bonded labor, military labor, slave labor and any form of human trafficking.

7. Child Labor
We prohibit the hiring of individuals that are under 18 years of age for positions in
which hazardous work is required.
8. Work Hours, Wages and Benefits
We compensate employees competitively relative to the industry and local labor
market. We operate in full compliance with applicable wage, work hours, overtime
and benefits laws.
9. Guidance and Reporting for Employees
We are committed to creating workplaces in which open and honest communications
among all employees are valued and respected. Our policy is to follow all applicable
labor and employment laws wherever we operate. If you believe that a conflict arises
between the language of the policy and the laws, customs and practices of the place
where you work, if you have questions about this policy or if you would like to report
a potential violation of this policy, you should raise those questions and concerns
through existing processes, which make every eort to maintain confidentiality. You
may ask questions or report potential violations to local Management, Human
Resources, Legal Department or Business Resilience. Coca-Cola HBC is committed
to investigating,

Organizational Structure
 Degree to which organizational design elements exit in company
structure
Designing Organizational Structure: Authority &Control
The Coca-Cola Company currently employs approximately 94,800 employees.
According to general organizational chart obtained from the company’s website,
there are more than 5hierarchical levels at the corporate level. For example: the head
of the Canadian division reports to the president and COO of the North American
Group. That president reports to the CFO, who reports to the Office of the General
Counsel. The General Counsel then reports to the CEO. It is fair to assume that there
are at least a few more steps in the hierarchy at the local level. Due to its tall structure,
the organization has experienced communication problems. One of the problems
discovered through a survey, was that the people and the company lacked clear goals.
Tall hierarchies also cause motivation problems,
which is why the organization is attempting to get employees more engaged. The
increased usefulness of the company’s intranet will greatly increase the
communication between every level of employees, and allow upper management to
effectively communicate to the front line employees. Based on information from
Report 2006 this span of control seems somewhat slim for the CEO of such a large
organization. The CEO is also a member of the Senior Leadership Team. This team
consists of each head of the eight operating groups aforementioned, and also has
other top executives in areas like innovation and technology and marketing.
Although there are only six people that answer directly to the CEO, the CEO is able
to receive input from a wide variety of divisions because of this leadership team.
Since the team is comprised of members from various divisions, the CEO is able to
obtain a wide variety of information. The move to decentralization has caused
structural changes for The Coca-Cola Company. New offices have been opened to
facilitate decisions being made closer to the local markets. The organization has also
undergone centralization of some of the company’s departments. In 2006, the
Bottling Investments division was created to “establish internal organization for our
consolidated bottling operations and our unconsolidated bottling investments.” It
appears that the organization is striving for a hybrid structure, which allows them to
have advantages of both mechanistic and organic structures, while trying to
minimize the negative consequences of each. The strategic structural changes that

the organization has gone through in recent years have created a much needed
positive impact on the company. Sales growth increased and employees are much
more satisfied. The organization is trying to create a more innovative culture by
pushing towards decentralization.
Designing Organizational Structure: Specialization &
Coordination
The Coca-Cola Company realizes that a divisional structure gives the organization
the best opportunity to react to the changes in its uncertain environment, but also
allow it to maintain level of stability. The multidivisional structure is beneficial for
the organization for a variety of reasons. The division based on geographic region
allows certain aspects of the company’s operations to be tailored to the individual
market. One advertising campaign or slogan may not be appropriate for another
market, so decisions about specific ads are made closer to the individual markets.
Multidivisional structures allow divisional managers to handle daily operations
while corporate managers are free to focus on long-term planning. There are also
problems associated with this type of structure. If the company creates divisional
competition, coordination may decrease because each division wants to have an
advantage over everyone else. Communication problems may also exist because
information can become distorted when it has to travel up and down tall hierarchies.
Multidivisional matrix structure may be better suited for The Coca-Cola Company.
This would increase coordination between corporate and divisional levels, and
managers at each level would work together to create solutions to problems. While
such a structure may be too complex for a global organization, the company may
want to look into it.

Coca - Cola Porter's Value Chain Analysis
 Inbound Logistics
1. The Suppliers
The suppliers of Coca-Cola include Ogilvy and Mather, Jones Lang LaSalle,
Spherion, IBM, IMI Cornelius, and Prudential. The above companies supply to Coca
Cola materials like ingredients, packaging, machinery, software etc.
2. The Standards
Coca-Cola has put certain regulations and standards in place which the suppliers
(mentioned above) must adhere to. The company has named these guidelines as The
Supplier Guiding Principles. Some of the guidelines include -
Compliance with laws, standards and regulations
Freedom of association and collective bargaining
Wages and benefits, work hours and overtime, health and safety, environment, etc.
3. The Assessment
Coca-Cola continually makes efforts to assess their suppliers by the help of third
parties through interviews with contract workers and employers. If the supplier do
not adhere to the supplier guiding principles or has any other issues, they are given
some amount of time to take corrective measures; if not, Coca-Cola has the right to
terminate their contract with these suppliers.

 Operations
1. The Secret Formula
Coca Cola's core operation is the concentrate and syrup production. The company
supplies this concentrate to the bottlers where the production of cola happens. Other
activities that impacts Coca Cola's business occurs across the value chain through
system's distribution networks, bottling operations and sales and marketing
activities.
2. The challenges
The company addresses the issues by cohesively working with their partners
(bottlers, suppliers etc.) to reduce the overall effects at each level of the
manufacturing process. They look at the problem from a holistic view by
understanding the overall environmental impact of their business through the entire
lifecycle of their products ranging from raw material procurement to the production,
delivery, sales and marketing of the product.
 Outbound Logistics
1. The Distribution System
Coca Cola has the world's largest distribution system. They operate in over 800
plants around the world. They operate in more than 200 different geographic
locations and market more than 2,400 beverage products. They have distribution
reach varying from hypermarkets such as Wal-Mart, fast food restaurants such as
McDonalds to small Kirana stores in rural parts of India.
2. The Bottling Partners
Coca Cola has more than 300 bottling partners. These partners range from small
family owned operations to publicly traded businesses. In order to work cohesively
and meet the need of all their customers, Coca Cola has implemented the Coca Cola
System in which they work together with their partners and develop strategies to
benefit the full ecosystem.

 Sales and Marketing
1. The Marketing Strategy
Coca Cola is primarily a marketing company. They market more than 2,400 products
to the consumers. They market world's top four (by sales) beverage drink brands.
Creativity is a vital strategy for Coca Cola. They work hard on their marketing
strategy in order to deepen their brand connection with their customers. As a result,
innovation plays a very important role in the company. Their marketing strategy is
directly linked to the consumer ranging from advertising, to point of sale, to
ultimately usage of a Coca Cola drink. They apply innovation is every dimension of
the supply chain which includes new product development, increasing brand equity,
packaging and designing various new advertising campaigns.
 Service
1. Servicing their Customers
Activities that maintain and enhance a product value include customer support,
training and development, installation and maintenance. Coca Cola's customers
range from large international retailers like McDonald's, KFC and restaurants to
smaller independent businesses and vendors like Kirana and regional stores. They
provide customized services tailored to meet their customer's needs.
2. Servicing their Partners
Coca Cola also supports their retailers by enabling them with the necessary training
to help their businesses become more profitable and effective. They have set up
Customer Development and Training Centers which are available to more than
21,000 independent retailers. They provide free training to the retailers in areas such
as marketing, finance, operations, general management and customer service

 Strategic Objectives
Strategic objectives are long-term organizational goals that help to convert a mission
statement from a broad vision into more specific plans and projects. They set the
major benchmarks for success and are designed to be measurable, specific and
realistic translations of the mission statement that can be used by management to
guide decision-making. Strategic objectives are usually developed as a part of a two-
to four-year plan that identifies key strengths and weaknesses and sets out the
specific expectations that will allow the company or organization to achieve its more
broad-based mission or vision statement.
As per Coca-Cola, the company's aims and objectives are to refresh the world, to
inspire moments of optimism and happiness, and to create value and make a
difference. These aims and objectives are centered on a desire to thrive "over the
next ten years and beyond." The Coca-Cola Company is a leader in the beverage
industry with a reputable brand and strong global presence.
According to the Coca-Cola Company’s mission statement and 2020 Vision, some
of its goals include:
 Increase annual operating income by 6-8% in order to double their revenue by
2020.
 Focus on environment friendly bottling production and enforce sustainability;
 Increase profit by cutting down costs through productive and efficient production
facilities;
 Continue to diversify its portfolio through innovations and partnerships, keeping
consumer demands in mind;

1. Competitor Environment
The Coca-Cola Company’s main objective is to maintain its diet carbonated
beverage sales in developed markets. As the demand for carbonated beverages in
emerging markets is increasing, such as markets in Middle East and Africa, may
double 2010’s revenues by 2020 (Euromonitor,2013). Additionally, as the trend of
health and wellness is shaping the soft drink industry, the Coca-Cola Company is
trying to increase its non-carbonated beverages sales in the market by acquiring other
drink companies. PepsiCo The main competitor of the Coca-Cola Company is
PepsiCo. PepsiCo is the world’s second largest food and beverage company and has
a presence in over 200 countries. In order to meet consumers’ health and wellness
requirement, PepsiCo has acquired Nutrition Co as a subsidiary. PepsiCo is
temporarily focusing on reshaping its brand image that emphasizes on healthy food
and drinks. Like the Coca-Cola Company, PepsiCo has established well-known
brands including, Pepsi, Gatorade.
2. Main Strategic Challenges
Increasing revenue streams from all fronts in order to achieve its goal of doubling
the revenue in ten years, Coca-Cola needs to sell its products in new geographic
areas and expand its product like that meet the consumers’ changing preference and
behaviors. Maintaining its current market size in the developed market, the company
also needs to increase sales in developing markets. Diversification Carbonated
beverages are the company’s bread and butter business so that the company is
heavily relied on their sales. This implies that the company needs to increase
awareness and sales on other drinks, such as bottled water, juice, ready-to-drink tea,
and even Asian specialty drinks since the consumer preferences are changing.
Moreover, in order to maintain their share of sales in the increasing competitive
market, Coca-Cola has to continue to strengthen their brand loyalty, innovation, and
expand into other product categories in the beverage industry. Diet products
cannibalizing standard variants as consumers have growing concerns about their
health, such as obesity issues, which results in a reduce demand of standard cola.
Therefore, the amount of sugar in regular soft drinks needs to be reduced
accordingly.

 HOW WE BECAME MORE EFFICIENT
As we took steps to rebuild our growth momentum, we knew we needed to invest in
more and better marketing while also increasing our financial flexibility. To these
ends, we increased our efficiency and productivity while reducing costs.
Part of the solution was “zero-based work”—a way of looking at our business that
starts from the assumption that organizational budgets start at zero and must be
justified annually, not simply carried over at levels established in the previous year.
We also cut spending on non-media marketing like in-store promotions. And we
found new savings in our supply chain around the world.
Overall, we were able to realize more than $600 million in productivity improvement
in 2015, which we used to invest further in our brands and business and also to return
to our shareowners.
For the future, we’re working to drive productivity and continuous savings across
our Company and system. We see productivity not as an event or series of events
but as an ongoing, day-by-day process of becoming stronger, leaner and ultimately
better.
 WE SIMPLIFIED OUR COMPANY
Few industries have changed more rapidly in recent years than the nonalcoholic
beverage industry. Evolving consumer tastes and preferences, coupled with
sweeping innovations in the retail and supply chain landscapes, have created an
environment in which speed, precision and empowered employees determine who
wins in the marketplace.
To seize this opportunity, we took steps to reshape our business. We looked hard at
our operating structure and identified areas where we could be faster, smarter and
more efficient. We removed a layer of functional management and connected our
regional business units directly to headquarters. We streamlined a number of
important internal processes and removed roadblocks and barriers that inhibited us
from being as effective and responsive as we knew we could be.

Most importantly, we began to look at ways to enhance further the employee
experience across our Company with the goal of creating the world’s most exciting,
productive, fun and fulfilling career environment, with workplaces that nourish
curiosity, learning, innovation and growth. While this journey has just begun, our
associates have responded with the resolve, commitment and passion that have been
hallmarks of Coca-Cola leadership since 1886.
The Coca-Cola Company has always been a creator of refreshing beverage brands.
Today, our expansive portfolio includes more than 500 brands, including sparkling
beverages, juices and juice drinks, coffee, tea, sports drinks, water, value-added
dairy, energy and enhanced hydration drinks. Among these brands are 20 that
generate more than a billion dollars in annual retail sales. Another core competency
has been our ability to lead the world’s most sophisticated system of independent
bottling partners while creating value for our retail and restaurant customers. Over
the years, we’ve acquired and managed a number of Coca-Cola bottling partners
with the aim of improving performance, optimizing manufacturing and distribution
systems, and ultimately refranchising the bottling territories back to independent
status.

Strategic Management of Coca Cola Company

Strategic Management of Coca Cola Company

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