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Coca cola company Essay

Coca cola company


The coca cola company was invented in May 1886 by doctor john pembers of Atlanta who invented coca cola formula in his home. This name was given by his keeper Robinson frank. He was prohibited by the law from renaming and rewriting formula for him to have peace of mind. French wine was taken by every drinker in the city which was made from coco. Coca cola was invented later during the year to process stimulant for the nerve from coca plant and coca nuts which was mixed with sugar to make it sweet. It was delicious refreshing and ideal for temperance release. Coke was discovered in the 19th century by devise an American soda jerk when carbonated water was added to soda spigot leading to invention of coca cola. Though pemberton left trade mark which is used up to today after his death.


Coca Cola Company started as one man business and has grown to a largest company globally. It was first operated by Dr Permberton and currently by Roberto; it got help from societies who financed its operations. Permberton invented coca cola in May 1886who mixed coca cola leaves Brazilian shrub seed, cinnamon and lime to make

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a good beverage and later carbonated water was introduced to the syrup to get coca cola.

Advertisement about coca cola was made on newspapers and billboards by Candler. Six bottle cartons were put in place by woodruff and were made available in 1929 by vending machine. By 1930 advertisements were made on radio and television and woodruff raised syrup prices to distributors and increased efficiency in manufacturing, he improved quality and sales and large scale advertising and promotion. In 1985coca cola was the biggest marketer and introduced new formula to produce diet coke. Coca cola put old coke out of market to improve the taste and improve national trust. The ingredients of coca cola now are oil, vanilla, phosphoric acid, caffeine, water, and coca leaf and kola nut.

Growth of coca cola

According to financial statement in china, growth was 22% by 2006.product lines have been diversified with the introduction of non-carbonated beverages. It owns world wide supply of soft drinks in fruit juice, mineral water, tea and coffee. Juice from fruits has 64% growth in the previous year with 15% market share. Nestle coffee drinks are in china now to get different tastes and difference. Coca cola has 35 drink factories, 700 outlets, 7000 local agents. It has invented 1.2 billion us dollars in china. It is now partnering with Beijing Olympics.

Company’s internal strength

Coca Cola Company has been successful in business and has been operating and making high profits. It has good potential for growth provided by Western Europe.

The company is able to identify the important and key emerging markets and is committed to expand in Africa. It invests in beverages that are cosmecutical and also white drinks which make it progress well.

Company’s internal weakness

The coca cola company experience negative publicity leading to threatening legal actions which results to reduced demand of the products. When competition increases, it hurts business because there is competition with international beverage companies that have numerous firms compared to Coca Cola Company. Due to inability to expand business and coming up with new markets and growth rate becomes low. The business suffers if good relationship with bottling partners is not maintained. The business could be affected if bottling partners are financially unable to finance their business. Increased cost of energy could affect profitability because the aim of business is to make profit and if cost of energy is higher then profit will be reduced.

External environment of the coca cola company

This shows the company’s progress in its operations that aims at meeting consumers demand and shareholders demand for multinationals for them to be responsible socially in their communities.

They publish reports to inform their customers on company’s progress on yearly basis and also inform their distributors on the right channel of distribution. The company meets to settle their performance indicators for filling and distributing system. This led to formation of working group that determine which is the best way of collecting social and economic data that can be used to set targets. The data bout environment is already collected.

The company meets with its shareholders who buy shares from the company and discuss on how they should be traded. The partners are also met and those do bottling of coca cola soft drinks to make them ready for sale. Those who supply raw materials to the company are contacted regularly to the raw material are available when they are required. The government is also involved in the activities of the company whereby it provide loan at low interest rate and also sets percentage tax to be levied on the sales made.

Non governmental organizations also meet with the company and they give ideas on how the business can be carried out successfully and also support the company financially.

Customers of the company and consumers also meet to get feedback on the company’s progress and the plans it has put in place in future.

The company involves third party that gives feedback and provide balance in reporting which includes the good and bad things done.

The company also emphasizes the use of water more efficiently without wasting it and the water is also clean and safe for consumption.

The company also tries to manage water crisis globally through the UN program.

The company makes sure rights of workers are not violated through forming labour organizations of United Nations. The company has 71000 workers in the whole world.

The company has laid down guidelines on how suppliers and bottlers should conduct themselves.

The coca cola company has identified key areas for sustainable growth and also

Puts more effort to preserve water, good packaging and protecting climate and energy. It tries to reduce use of energy and also raw materials while undertaking its manufacturing. The company introduces recycling plants to reduce waste in bottles used for packaging

Has set up values of anticorruption in 2006where they signed a document called “embrace, support and enact”

The partners who are involved in the companies bottling have also become signatories of global compact of United Nations and signed contract to cut down on wastage of food and packaging


Swot analysis of Coca Cola Company

The company has top selling brands which are many and with different tastes and has the most known trade mark and everybody is aware about it. The company has been able to acquire sprite and fanta brand in 1960s and is the largest manufacturer in soft drink in the whole world because it is able to produce many differentiated products in large quantities and able to reach as many consumers as possible.

It is the biggest brand in the United Kingdom that is single ad sales re from $600 million off trade. It also has brands such as crisps and Persil and sell products at greatest profit margin and has the largest audience who know it and its products very well.

It has been able to develop new market segments to increase its sales figures and ensure that it has established as many markets as possible and avails goods in the right quantities and at the right time. The products are healthy and good taste that are energetic with highest target on teenage consumers who enjoys most of the products.

Coca Cola Company sells 74% of its products outside USA and in 2006 revenue from sales increased by 4.3% from 2005 with operating profit of 6,308 million by the end of the year 2006.

Analyzing corporate level strategy

Shareholders elect the board who look at their interest in the long run and forecast the success of the business and how strong it is financially.

The board also makes decision apart from the decision that requires shareholders presence.

The board chooses the senior managers who help in the conduct of the business.

Directors help to judge business performance and works to satisfy the company’s interests and also interests of the shareholders. They also have fiduciary duty to those who own shares according to the applied laws and regulations.

Directors take into consideration shareholders interests who include employees and community where the company is situated.

Counseling and advice is given by the board to the executive officers and seniors of the company.

The board sees that assets are properly safeguarded and appropriate control of finance is maintained and that business is carried out wisely.

Outside auditors ad advisors are used to give out duties according to skill, experience and ability.

The board holds meetings four times per year and directors are supposed to be present all the time. Four committee are selected to the board which includes audit, compensation, governance and audit.

During the meeting executive committee exercise duties and have all the power of board in managing business and companies property except if powers are provided by law.

Independent directors serve in the committee of audit, corporate and compensation. Standing committee will get his charter with qualification, responsibilities, way of reporting to board and each year committee will conduct evaluation of themselves.

Directors will access employee and officers freely and also books and files. Secretary arranges for meetings or contact of directors.

Board invites regular attendants during meeting for the members and seniors.

Information on duties and benefits of members are provided and orientation for members who are new and are also allowed to attend education program at various institutions.

Executive provide good leadership to the company and review corporate goals and objectives.

The company should have good manager who succeed outgoing on basis of who is strong enough to take over the management.

Annual evaluation of directors is conducted and formulated to know the amount of compensation required.

Management should speak on behalf of the company with bodies that are appropriate and are provided by the chairman.

According to Deming’s 14 points the coca cola company has to barriers between departments and employee who do market research and the ones involved in production.

Business level strategy

The coca cola company faces competition from other manufactures of soft drink for example Delmont.

The company makes several different brands of soft drinks that are different from each other for example fanta, sprite and diet coke.

The soft drinks from coca cola are sold at reduced prices to make them affordable to its consumers.

The coca cola company makes investment globally in order to cover an extensive area and increase sales. It markets its products and creates awareness about it through advertisement in the media and through the internet and World Wide Web.

Coca Cola Company manufactures good and high quality soft drinks and has innovation that is current in its production ad customers respond positively to coca cola products and uses the products everyday.

The coca cola company uses water in its products which is clean and safe and the market for soft drinks is available where experienced employees are used to research about the market. The company aims at accelerating growth of soft drinks for it to out huge sales and high profits. The company by the year 2002 aimed at selectively broadening the beverage brands and come up with many brands that have different tastes.

The company in collaboration with its partners comes up with a system to increase the capacity and profitability of its product through producing high quality products.

The company serves consumers needs with creativity and are consistent in services and goods they offer in order to generate growth in all channels.

In higher potential areas the company invests directly and opens large markets because they are areas with customers who are willing and able to buy the products.

Coca cola company is more efficient in production and distribution of its products and costs are effective everywhere. They offer brand depending on consumers demand and effort is made by the company to support their brand which involves investing to support existing brand or developing local or global brand and also acquiring global or local brands.

Market create awareness and preference of certain brand leading to high profit , growth in per capita consumption and increase share in world wide beverage sale of nonalcoholic.

According to Deming’s 14 points employees work and finish what they are supposed to do and also work effectively to ensure that products reach customers and serve customers needs.

Structure and control system

Control system of coca cola is between a network and hierchial management system. Structure of control depends on which one can be best applied. Facilities of production are hierchial and research and development are knowledge management system. Relationship management help deliver products to customers. Working relationship help produce best product possible.

The company has a rewarding culture that encourages people to utilize their full potential ad ensure they enjoy and get satisfaction in the coca cola company.

The company seeks genuine relationship and trust with its constituents especially to people who consume their goods.

They collaborate creatively with the sellers of their brand and this leads to the success of their brand and services.

They form alliance with qualified partners to know opportunities for growth and new entry to the market.

They continually shape their business decisions to get good quality life for areas where they do their business.

The leadership of Coca Cola Company is clear and has new ideas for operating business.

The company has come up with 300 brands all over the world which include soft drinks which have been carbonated and none carbonated such as sport drink, juice drinks.

By the end of the year 2002 vanilla coke and diet vanilla coke wee introduced.

The company has been able to acquire new water brand internationally.

The coca cola company has joint venture in North America with denone waters and owns 51% with danon rights. It has master licence contract with Evian a water brand in Canada.

Coca Cola Company had a centralized organization structure which later became decentralized when Doug Daft took over as chairman and C.E.O. of Coca cola after Doug Ivester.

During the centralized system everyone was in the main branch in Atlanta. All businesses and foreign affairs were centralized out of the Atlanta building.

90%of coca cola businesses is in hand of bottling companies and this increases balance of power and good relations is maintained to make it successful

The company advertises to its customers to make them know about their products which include soft drinks and also employs high level management in all parts of the world (www.pages.stern.nyu.edu)

Coca Cola Company is involved in discovering new markets which bring good returns.

It is involved in branding, market segmentation and advertising. It also sponsors football, Olympics and swimming. It is involved in community activities and charity work.

Coca cola entered foreign markets through franchising, licensing and exporting. Coca cola has been expanding over decades with 30 new drinks being introduced.

Coca cola improves quality of life in the community through health services, education and giving advice on business to be carried out.


Positive work environment should always be created to encourage employees work hard and to their full potential and barriers that leads to hourly paid workers not to be paid well are removed, programs for self assessment and improvement and deduction programs ire also put in place according to Deming’s 14 points for management.

The company should always have information about the market and have a good culture in the work place where all workers will be positive thinkers. The company should cooperate with competitors to achieve goals of efficiency. The company should know consumers needs for the products and satisfy them accordingly and also experienced people should be hired to do market research all the time and inform the management on consumers needs.

Money should be set aside for financing advertisement in order to create awareness in every part of the continent where by the right choice for the media used should be made in order to reach as many people as possible. During sales promotion, some products can be sold at reduced prices so that man people can be able to purchase it thereby becoming consumers even when the prices will be higher. Many new brands should be invented and quality and taste improved in order to attract and retain customers.

Many new brands should be invented and quality and taste improved in order to attract and retain customers.

Workers should be given remunerations for example free transport, housing and health services which will be financed by the company.


David M Harris, Randy L Desimone; Human Resource Development, Dryden press publishers,1994
Abbas F Alkhafaji, Strategic Management: Formulation implementation and Control in a Dynamic Environment, Haworth press, 2003
4. Robert Benfari, Changing your Management Style, Lexington Books, 2000

      5. Pieper. R; Human Resource Management; Walter de Gruyte, 1990.


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