Abstract This paper is about “Coca-Cola” company which produces and manufactures soft drinks, and this product is well known all around the world for many decades. The materials used to….
The Coca Cola Mission Statement
The company’s mission statements define the company’s fundamental purpose. It clarifies the company’s purpose both for those with the organization as well the the public in general. The mission statement also identifies the company products customers, and differentiates it form its competitors. The Coca- Cola Company’s mission statement is to create a growth strategy that allows it to bring good to the world – by refreshing people every day and inspiring them with optimism through its brands an its actions.
The company competitive advantage is its ability to outperform other organizations more efficiently and effectively than its competitors, thus allowing it to generate greater profit margins and retain more customers. Competitive advantages give a company an edge over its rivals and ability to generate greater value for the firm and its shareholders. The Coca- Cola Company competitive advantage is that it is the strongest nonalcoholic beverage company in the world. With four of the world top five nonalcoholic sparking brands, Coca-Cola’s leadership position is clear, an this has given it the expertise to lead in several other beverage categories worldwide.
The company is number one in sales of ready to drink coffees and teas, number two in sale for sports drinks and number three in sales of water. Retaining Coca- Cola’s competitive edge requires an intense, unrelenting focus on what the company is about i.e. beverages. More than 1.4 billion serving of its products are enjoyed every day, and that is nearly a million servings every minute. Beverages have been the company business for 120 years and the company remains focused on being a leader and strongest nonalcoholic beverage company world wide.
The Company involvement in Global Business
The Coca-Cola Company is a multinational company and markets its products in more than 200 countries. The company serves markets within eight global segments: North America, Europe, North Asia, Eurasia and Middle East, Latin America; Africa; East South Asia and the Pacific Rim, bottling investments.
North America Segment
North America segment operates the Coca-Cola Company‘s juice, water and soda business in Canada, Puerto rice, and the US. North America operating segment operates nine still beverage production facilities, in addition to the bottled water facilities that are situated throughout US and Canada.
During 2007 the market in north America prove to be more challenging as commodity prices increases, thus the company is working with its partners as it jointly plan its approach to a changing consumer, and consumer landscape along with the variability in the economic market. The company has been collaborating with customers to create the perfect shopping experience, with positive results. The company’s first fully bilingual, internet-based program, and it plan for expansion has become a great successful story for the company. However, North America, operating income only increased 1%, with unit case volume decreasing 1%.
The company is test marketing innovative coffee and tea dispensing technology through the far coast brand. The first far coast concept store opened in Toronto 2006. Through Beverage Partners World Wide, the company launched an innovative calories burning beverage called Enviga. After regional launches of vault in 2005, the hybrid energy soda was launched nationally in 2006 and engaging ads along with great taste it has been a hit with consumers during the year 2007.
Coca-Cola European Union Segment and Bottling Investments
(Including operations in European countries)
The company achieved its unit case volume growth through a combination of new products, packaging, innovation and customer collaboration, while anticipating and satisfying consumer trends.
Coca-Cola sparking light and diet beverage business had outstanding growth, buoyed by the very successful launch of Coca- Cola Zero in nine key markets in the European union. There was also an increase unit case volume growth in still beverages of 3 % , due in part to the strong performance of Aquarius, Nestea and PowerAde. The acquisitions of the mineral water companies Apollinaris in Germany and Traficant in Italy Further expanded the company’s product offerings.
Innovative digital programs, including a multi-market partnership with Apples iTunes, reinforced its connection with young people. Also “Make Every Drop Count” reached out to mothers with the message that Coca-Cola offer great, healthy choices for modern family life.
The organization commitment to conduct businesses in a socially responsible, sustainable way has been recognized by many stake holders. For example, the European Commissions has recognized the commitment not to advertise to children under the age of twelve. Its other initiatives include monitored self-regulation if its marketing practices and plans to introduce a new nutritional labeling scheme on packaging during 2008 and beyond.
With a strong focus on the basics of market execution, the goal of Bottling Investments is to deliver returns from the bottling assets that match other high performing bottling companies within the company system.
The key strategy in 2007 was increased investment in front-end capability, including equipment, people and training, which enabled major improvements in route to market, customer management and in-outlet execution across the company’s markets. This singular focus on the bottling operations resulted in a significant unit case volume increasing a financial performance improvement in 2007 resulting in operating income growth.
North Asia, Eurasia and Middle East Segment includes operations in India, Malaysia, and China, Taiwan, and Japan, Singapore and Israel; China is an important market for the Coca-Cola Company’s business, with more than 1.3 billion people and unit case volume growth from 17% in 2006 to a remarkable case volume growth of 34%. During 2006 Coca-Cola acquired Kerry beverages Limited — one of the largest bottlers of our products in China. This acquisition facilitated new, long term investment plans that expedited the already fast-growing China businesses.
Russia also had a strong year of performance in 2007. The acquisition of Multon juice business in 2005 enabled the business to continue to expand its beverage portfolio. Russia now has a more diverse offering of sparking and still beverages, and Coca- Cola remains the top – selling nonalcoholic beverage with 19 % unit case volume growth in 2007.
Strong unit case volume growth of 18% in Turkey in 2007 was led by sparkling beverages, which have more than doubled in unit case volume over the last decade. The sparking beverage business in turkey has consistently outperformed the beverage industry.
The Coca- Cola Company was satisfied with the 2007 year overall improved performance in Japan with a volume case growth of 25%. Nevertheless, the market has continued to stabilize and has improved its position for growth. Unit case volume growths in sparkling beverages lead to volume share gains as well.
Building on the extraordinary success of the sparkling beverage portfolio, up nine percent in 2007, the company is rapidly expanding its beverage choices in Latin America to include beverages, which provide additional nutrients, hydration, and health benefits.
The pending acquisition of Jugos Del Valle, S.A.B. de C.V. by the company and its juice and juice drink category in Latin America. Unit case volume in juice and juice drinks increased in 2007 with a operating income growth of 22%. Coca-Cola continue to grow juice and water platforms, introducing products such as Minute Maid Forte with calcium plus vitamin D for healthy bones in Mexico, flavored Dasani Saborizada water in Columbia and 100% Cepita Juice in Argentina which definitely help the net operating revenues increase 24%.
The Coca-Cola Company is enhancing its relationships with consumers through its popular digital marketing platform, which has registered more than 5 million visitors in Mexico and Brazil. The company intends to continue building relationships as it expands the platform to other countries.
The Coca Cola Africa Segment include operations in 20 countries and counting.. The company markets more than 80 brands in Africa, with local beverages such as Sparletta, Hawaii and Splash complementing core brands including Coca Cola, Fanta and Sprite.
With 925 million people and annual per capita consumption for Company products at 37 servings, there is much room to grow in Africa. A large part of Africa Population is young and very dynamic. As part of Coca- Cola’s efforts to reach this population, young South Africa artist participated in a remix of the “I’d Like to Buy the World a Coke” theme song as a musical montage of different styles of music. The ad was part of the “Coke Side of Life” campaign.
In 2006, the Coca-Cola Company removed its operating group headquarters from the United Kingdom to Johannesburg, South Africa, to be closer to the business. It also opened a new divisional office in Cairo, marking a turn around in Egyptian businesses. Economic development in Angola sparking in beverages in Ghana Tanzania and Tunisia contributed significantly to overall unit case volume growth of 10% with a operating income growth of 10%
Through the Coca-Cola Africa Foundations, the company partner with many organizations to help build sustainable communities in Africa. It is currently working to improve access to education and drinkable water and to provide health programs.
The East South Asia and Pacific Rim Segment includes operations in Australia and New Zealand.
2007 results show the success of the Coca- Cola Zero launch in Australia 2006 indicated the strength of Coca -Cola system in that market with an increase in the unit case volume of 8%. The speed and agility with which Coca- Cola Zero hit the market with dynamic marketing support contributed to the advance of Trademark Coca-Cola strong lead in the sparkling beverage category. In Thailand, years of steady unit case volume growth have been driven by successful marketing and strategic planning.
Despite the negative publicity Coca Cola face with India, India represents an important market for future growth. Coca -Cola has invested more than one billion dollars in India during the past decade, and will continue investing to realize the potential of this vibrant market. The focus is on accelerating the growth by investing in strong marketing programs, including campaigns that educate consumers about high quality standard used producing the beverages. The company continues to build sustainable communities through rainwater harvesting and sanitation education. in the Philippines, affordability and availability issues continue to affect the beverage sales.
In 2007, the company represented a 14% unit case volume growth that contributed to the overall 16% percent increase in cycling double digit growth in 2006. For the entire operating group of Eurasia the net operating revenues increased 24%, with operating income growing 38%.
The Coca-Cola Company engages in outsourcing. By the late 1890’s , Coca-Cola had established itself as highly successful soft drink company, but the company was then consider an emerging source of competitive advantage, the Coca-Cola decided that it did not have the capital, the time or the expertise to produce its own bottles. Production was a significant concern, Coca- Cola chose to license a group of independent bottlers to whom it sold its syrup while imposing strict quality controls. In the next several decades, Coca- Cola was able to achieve its key strategic business objectives, including vastly expanding its market and protecting its good name. By outsourcing the non-core business objectives (such as maintaining high product quality, protecting its brand and growing market share).
SWOT Analysis: The Coca- Cola Company
SWOT Analysis is the first tool used in the planning process and mangers use it to audit the organizations internal strengths and weaknesses as well as its external opportunities and threats environment. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats.
The strengths are the company’s resources and capabilities that it uses to create its competitive advantage and strength it within the nonalcoholic beverage industry.
Coca-Cola has strong brand name, leading brand name and a strong brand portfolio. Business week and interbrand reckoned Coca-Cola as a leading brand in the top 100 global brands ranking in 2006 and 2007. Further more, the company owns four of the five top brand soft drinks in the world including Coca-Cola, Diet Coca-Cola, Fanta, Pepsi, and Sprit, and this allows it to introduce brand extensions such a as Vanilla Coke. The company’s strong brand value facilitates customer recalls and allows it to penetrate markets.
Large scale of operations
The Coca-Cola Company has a large scale of operations. Coca-Cola Company is the largest manufacturer, marketer, and distributor of nonalcoholic concentrates and syrups in the world. The company started selling its products in the USA in 1886 and now it sells its products in more than 200 countries. Of about 52 billion beverages servings of all types consumed world wide everyday, beverages bearing trademarks owned or licensed to Coca-Cola account for more than 1.4 billion. The company operates and owns 32 principal beverages concentrate manufacturing plants worldwide, and it owns interest in 37 operations with 95 principal beverage bottling and canning plants located outside the US. The Coca-Cola Company’s large scale of operation thus allows it to feed upcoming markets with relative ease and enhances its revenue generation capacity.
Strong Revenue Growth in Three Segments
The Coca-Cola’s revenues from three, operating segments recorded a double digit growth in revenues. These segments are Latin America, Eurasia and Bottling Investments. Revenues from Latin America grew by more than 22% during fiscal 2007, over 2006. Revenues from Eurasia grew by more than 34% during the same period, while revenues from Bottling Investments divisions grew by more than 45%. Strong revenues growth rates in these segments contributed to top-lint growth for Coca-Cola during 2007.
The weaknesses are the internal challenges facing the company that occur because of the absence of strengths. The Coca-Cola Company’s weaknesses are as follows.
During December of 2007 to the present moment, the company has been allegedly accused for selling products containing pesticide residues in India. These pesticides included chemicals which could cause cancers, damage the nervous and reproductive systems, and reduce bone mineral density. Such negative publicity could adversely impact the company’s brand image and pull down the demand for Coca-Cola products; it could also have an adverse impact on the company’s growth prospects in international markets.
Decline Performance in North America
North America, which is the company’s core market, has only recorded an increase in growth revenues of 1% while the sale of volume unit cases during the fiscal year 2007 has declined 1%. Unit case volumes sold in North America was even in 2006, as compared to 2005. Unit case volume in retail decreased 1 % due to weak sparkling beverage trends begun in the second half of 2006 with decline in the warehouse-delivered water business and decline in the warehouse-delivered juice business. Lethargic performance in North America could impact the company’s future growth prospects and prevent it from recording a more robust top-line growth.
Cash from Operating Activities
Although the sale of volume unit cases decreased 1% in 2007, The company’s cash flow from operating activities increase by 2% in 2007 compared to 2006 . The 2007 increase in cash flows was a result of a contribution of certain marketing enhancements. . This increase in cash flows improves the availability of funds for the company’s investing and financing activities, which increases its exposure to debt markets and fluctuating interest rates.
The opportunities occur when there are changes in the external environment. Most of the changes can represent threats to market position of existing products or services, thus necessitating changes in products specifications or development of new products in order for an organization to remain competitive. The followings are opportunities for the Coca-Cola Company.
During 2006, the Coca-Cola Company acquired Kerry Beverages Limited, a shareholding in Kerry Beverages, and reappointed Coca-Cola China Industries Limited. This acquisition extended Coca-Cola’s control over manufacturing and distribution joint ventures in nine Chinese provinces. The company also made acquisitions in Germany, South Africa, Australia and New Zealand during 2006. These Acquisitions give the company an opportunity for growth, through new product launched or greater penetration of existing markets. Stronger international operations increase the company’s capacity to penetrate international markets and give it an opportunity to diversify its revenue return.
Growing Bottled Water Market
Bottled water is one of the fast-growing segments in the world’s food and beverage market, and this is due to increasing health concerns. The bottled water market is forecast to reach $19.3 billion by the end of 2010. Within the bottled water market, flavored water segment is growing at revenue of about $10 billion annually. Coca-Cola could leverage its strong position in the bottled water segment to take advantage of growing demand for flavored water. Coca-Cola Company for 2007 has a unit case volume growth of a extraordinary 64%; with a 750% operating income growth.
Rising Hipic Population
Hipics are the most rapidly growing ethnic group in the US., And this represents a great opportunity for the Coca-Cola Company. In 2007, over 20 million US households are Hipics. It is estimated that the buying power of Hipics will exceed $1 trillion by the end 2008, a 55% increase over 2003 levels. Coca-Cola can benefit from an expanding Hipic population in the US. This would translate into higher consumption of Coca-Cola products and higher revenues for the company.
The threats are external conditions that are harmful to achieving the objective.
The nonalcoholic beverage industry is very competitive, and as a result Coca-Cola Company faces intense competition in various regional and global markets. Competition also comes from various nonalcoholic sparkling beverages-juices and nectars and fruit drinks. In many of the countries in which Coca-Cola operates, PepsiCo is one of the company’s primary competitors. Competitive factors impacting the company’s business include pricing, advertising, sales promotion programs, product innovation, and brand trademark development and protection. Intense competition could impact the company’s market share and revenue growth.
Dependence on Bottling Partners
Most of Coca-Cola’s revenues is generated by selling concentrates and syrups to bottlers in which it doesn’t have any ownership or controlling ownership interest. These bottling partners make their own business decisions that may not be in the interest of Coca-Cola Company. Additionally, most of the company’s bottling partners have the right to manufacture or distribute their own products or certain products of other beverage companies. If Coca-Cola is unable to provide an approximate mix of incentives to its bottling partners, then the partners may take actions that may be detrimental to Coca-Cola. These bottlers may also devote more resources to business opportunities or products other that those beneficial for Coca-Cola. Such actions could, in the long run, have an adverse effect on Coca-Cola’s profitability. Loss of one or more of its major customers by one of its major bottling partners could as well indirectly affect Coca-Cola’s business results. The dependence of third parties is a weak link in Coca-Cola’s operations and increases the company’s business risks.
Slow Growth of Carbonated Water
US consumers are looking for grater variety in their drinks and are becoming increasingly health conscious. This resulted in the consumption of carbonated and other sweetened beverages in the US.
The company has been criticized of selling carbonated beverages with high amounts of sugar, and has been implicated for facilitating poor diet and increasing childhood obesity. Hence, Coca-Cola’s revenues could be adversely affected by a slowdown in the US Carbonated beverage market.
Appropriate Goals for the Company
Being the largest manufacturer, distributor, and marketer of nonalcoholic beverage concentrates in the world, Coca-Cola’s goal is to use its formidable assets i.e. brands, financial strength, unrivaled distribution system and the strong commitment by its management and employees worldwide to become more competitive. This will speed up the company’s growth in ways that will generate value for its shareowners and renewed enthusiasm among its employees.
Effectiveness and efficiency – Coca-Cola Company is focusing on enhancing the company’s efficiency by aligning itself with its bottling system while focusing on increasing the investment in its brands; and effectiveness throughout the supply chain, delivering more value for its customers and better meeting their needs. Efficiency in the supply chain will can also be achieved by leveraging the company’s operating and marketing investments
Long Term Profitable growth – Coca-Cola Company is focusing on maintaining or increasing its profit margins in faster growing but lower-margin countries by shifting from a volume focus to a volume and value focus. This will help the company to achieve profitable growth through close alignment with its bottling partners.
Stimulating faith and trust – organizational alignments of India negatively impacted the trust within the company, those of India, and the consumers who are very ethical and sensitive to human rights. The negative publicity has engendered over 118-year history of Coca-Cola reputation, therefore the company’s goal is to renew that faith by investing in the capability and training to prevent negative publicity and to take full responsibilities for any wrong doing on the company’s behalf.
The followings are some of the key challenges that the Coca-Cola Company is facing in pursuing its goals:
· Fluctuations in the cost and availability of raw materials; cost of energy; transportation; company’s ability to maintain favorable supplier arrangements and relationships, and to avoid disruptions in production output caused by events such as natural disasters or labor strikes.
· Changes in laws and regulations governing the accounting standards, taxation requirements, laws concerning food and beverages, competition laws, employment and environmental laws in domestic or foreign jurisdictions.
· Water quality and quantity. Demand for water is increasing around the world and in most cases this leads to the deteriorations of the available water; hence Coca-Cola’s system may incur increasing production costs, which may materially adversely affect its profitability in the long run.
· Ability to achieve earnings forecasts which are generated based on projected volumes and sales, thus there is no assurance that the company will achieve the projected level or mix of product sales.
Company’s Corporate Level Strategies
Forward Vertical Integration:
The company engage in this kind of strategy since it sell selling its own outputs – beverage concentrates and syrups – to the bottling companies who than convert them to final goods.
The company manufactures the beverage concentrates and syrups, which it sells to authorized bottling and canning operations, fountain wholesalers and some fountain retailers. The authorized bottlers and canners either combine the syrups with sparkling water or combine the concentrates with sweeteners (depending on the product), water and sparkling water to produce finished sparkling beverages. The finished sparkling beverages are then packaged in authorized containers bearing The Coca Cola Company’s trademarks and sold to businesses and institutions including retail chains, supermarkets, restaurants, small neighborhood grocers, sports and entertainment venues, and schools and colleges.
Coca-Cola® is originated as a US company and 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 The Company began a major push to establish bottling operations outside the U.S. Plants were opened in France, Guatemala, Honduras, Mexico, Belgium, Italy and South Africa. By the time World War II began, Coca-Cola was being bottled in 44 countries.
Advances in technological led to global economy retail customers of The Coca-Cola Company merging and evolving into international mega-chains. Such customers required a new approach. In response, many small and medium-size bottlers consolidated to better serve giant international customers. The Company encouraged and invested in a number of bottler consolidations to assure that its largest bottling partners would have capacity to lead the system in working with global retailers
Political and economic changes opened vast markets that were closed or underdeveloped for decades. After the fall of the Berlin Wall, the Company invested heavily to build plants in Eastern Europe. As the century closed, more than $1.5 billion was committed to new bottling facilities in Africa.
Today, The Coca-Cola Company world’s largest manufacturers, distributors and marketers of non-alcoholic beverage concentrates and syrups. The company’s finished beverage products are sold in more than 200 countries worldwide. More than 60 percent of Coca-Cola’s products are sold outside US. As of January 2007, the company’s operating structure included this operating segments: Africa; East, South Asia and Pacific Rim; European Union; Latin America; North America; North Asia, Eurasia and Middle East Bottling Investments; and corporate.
The Company’s Business Strategies
Coca-Cola Company makes significant investments which are designed to enhance consumer awareness and increase consumer preference for its brands. In 2007, the company launched campaigns and activities that were global in reach and local in their messaging and visuals. The new products and marketing campaigns enhanced the growth of Coca-Cola, Coca-Cola Zero, Diet Coke, Sprite, Fanta and Minute Maid, as well as other brands. Since its introduction in 2005, Coca-Cola Zero has been a global hit. It helped boost the company’s Trademark Coca-Cola unit case volume in Australia, Great Britain, United States and other markets.
By using innovative and tailored marketing programs based on local consumer insights, the Company will keep growing its core brands while also leveraging its distribution system to capture other growth opportunities in the ready-to-drink nonalcoholic beverage category.
The company continues to expand its marketing presence and increase its unit case volume in most developing and emerging markets worldwide. Coca Cola Company’s strong and stable system helps it capture growth by manufacturing, distributing and marketing existing, enhanced and new innovative products to its consumers throughout the world.
The Coca-Cola Company have operations in more that 200 countries and counting. In almost 90 percent of those countries, its beverages are produced by local people with local resources. The company creates brands that embrace distinct tastes and local preferences. The has over 71,000 company’s associates around the world live and work in the markets they serve, and as a result, the company is more collaborative.
Majority of the company’s bottling partners are independent companies with operations in local communities around the world. In order to propel growth, the company collaborates on the shared strategic vision that moves it closer to the marketplace, builds competitive advantages and makes it equipped to handle challenges within the industry. To create long-term sustainable growth, Coca-Cola Company is planning and investing together (for instance it is investing in new information technology that allows it to share expertise, get immediate feedback on new products and packages, and capture results and data in a consistent format). Such innovations improve operational effectiveness.
The Company makes equity investments in selected bottling operations with the intention of maximizing the strength and efficiency of its system’s production, distribution and marketing systems around the world. These investments are intended to result in increases in unit case volume, net revenues and profits at the bottler level, which in turn generate increased gallon sales for the company’s concentrate and syrup business. When this occurs, it benefit both The Coca-Cola Company and it’s bottling partners benefit from long-term growth in volume, improved cash flows and increased shareowner value.
Coca-Cola Company has ownership interest in Coca-Cola Enterprises Inc which is the world’s largest bottler of the company’s beverage products. Its ownership interest in CCE was approximately 36 percent at December 31, 2004. Within 2004, sales of concentrates, syrups and finished products by the Company to CCE were approximately $5.2 billion. CCE estimates that the territories in which it markets beverage products to retailers (which include portions of 46 states and the District of Columbia in the United States, Canada, Great Britain, Continental France, the Netherlands, Luxembourg, Belgium and Monaco) contain approximately 79 percent of the United States population, 98 percent of the population of Canada, and 100 percent of the populations of Great Britain, continental France, the Netherlands, Luxembourg, Belgium and Monaco.
In 2004, approximately 63 percent of the unit case volume of CCE was Coca-Cola Trademark Beverages, 31 percent of its unit case volume was other Company Trademark Beverages, and 6 percent of its unit case volume was beverage products of other companies. CCE’s net operating revenues were approximately $18.2 billion in 2004.
The Company also has 40 percent of interest in FEMSA, which is a Mexican holding company, Coca-Cola Hellenic Bottling Company U.S.A.
The Coca-Cola Company owns a 50 percent interest in a joint venture with Nestle S.A and certain of its subsidiaries that is focused upon the ready-to-drink tea and coffees businesses. The joint venture, known as Beverage Partners Worldwide ((BPW), currently has sales in the United States and 59 other countries.
Negative press endured by Coca-Cola in the last 6 months
The company received the Golden Peacock Global Award for corporate social responsibility. The award, which is sponsored by the Coca-Cola Company itself, supposedly recognizes the Company’s efforts in “water conservation and management” and its “community development initiative” and “the continuing commitment by business to behave ethically“.
A couple of days after awarding itself the Golden Peacock award, the Coca-Cola company announced a US $10 million corporate social responsibility fund that will focus on water management in India
However, communities in India was left thirsty as a result of Coca-Cola’s operations, In spite of the growing evidence implicating the Coca-Cola Company for causing water shortages in India
Coca-Cola got a rude awakening when an assessment of their operations in India that they paid for and conducted by an ally of Coca-Cola validated what the communities have been saying all along. Specifically, it was the University of Michigan which demanded that Coca-Cola agree to an assessment if it wanted to continue business with the university. The assessment was conducted by the Energy and Resources Institute (TERI) of six Coca-Cola bottling plants in India released in January 2008, which validated the concerns being raised by the communities in India obtained from the detailed technical assessment of groundwater resources.
Key finding in the Assessment
· The Assessment Recommended the Closure of Kala Dera Bottling Plant in Rajasthan: The assessment notes that the water resources in Kala Dera are overexploited and that the Coca-Cola bottling plant would continue to worsen the water situation.
· Coca-Cola Has Not Respected Rights of Farmers and Groundwater Conditions:
three of the six sites assessed were either in overexploited or critical groundwater areas, the report notes that “citing policies need to recognize and respect the existing (formal and informal) riparian rights.”
· Coca-Cola Also Warned on Mehdiganj, Another Key Campaign Demand:
The assessment also validates the concerns of the communities around the Mehdiganj bottling plant for creating water shortages. the Coca-Cola company should also be making plans to shut down the bottling plant in Mehdiganj – another key campaign demand as well as the bottling plant in Nabipur. The report notes that the water tables in Mehdiganj have been declining towards a semi-critical state, and in Nabipur, the aquifer is already over-exploited.
· Coca-Cola has Not Met its Own Waste Management Standards at Plants with regard to water quality.
· Coca-Cola Does Not Have Adequate Pollution Prevention Measures:
The assessment pointed out the deficiencies in managing waste in Coca-Cola’s plants in India. The report stated that the Coca-Cola Company needed to develop additional requirements for treated wastewater quality. The assessment found shortcomings in the effluent discharge in four of the six plants assessed.
· Increased Pollution in Immediate Vicinity of Coca-Cola Plants:
The assessment confirmed that the communities living around Coca-Cola’s bottling plants have identified – pollution. However, the assessment is not able to identify the source of the pollution, and has called for further studies.
The community of Mehdiganj and Coca-Cola affected communities in India announced a conference to challenge the eroding right to water and asserting the fundamental human right to water. The conference will take place in Mehdiganj on March 28 and 29 and was followed by a March and demonstration against the Coca-Cola bottling plant.
The Coca-Cola Company is the largest manufacturer, distributor marketer of nonalcoholic
Beverage concentrates and syrups in the world. Finished beverage products
Bearing its trademarks, sold in the United States since 1886, are now sold in more than 200 countries and include the leading soft drink products in most these countries.
The company’s mission statement is to create a growth strategy that allows it to bring good to the world – by refreshing people. Every day and inspiring them with optimism through its brands and its actions. This mission statement defines its fundamental purpose. The company’s competitive advantage is that it is the strongest nonalcoholic beverage company in the world.
The Coca-Cola Company is a multinational company and markets its products in more than 200 countries. It serves markets within eight global segments – North America, Europe, North Asia, Eurasia and Middle East; Latin America; Africa; East, South Asia and the Pacific Rim, bottling investments.
The company outsources its non-core business function of bottling its products thus enabling it to focus on its core business objectives (such as maintaining high product quality, protecting its brand and growing market share).
. The SWOT is used to identify an organization’s internal (strengths and weaknesses) as well as its external (opportunities and threats) environment. The Coca-Cola Company’s Strengths are: being a market Leader, having large operations of scale, and robust revenue growth in its three segments; weaknesses are: the negative publicity it gets, slow and declining performance in North America. Opportunities are: Acquisitions, growing bottled water market, and growing Hipic population in US; Threats: intense competition, Dependence on bottling partners, and slow growth of carbonated water.
The company’s goals are to enhance its efficiency and effectiveness, maintain long term profitable growth, and revitalize the faith of India. Key challenges face the company in pursuing its goals-fluctuations in the cost of raw materials, changes in laws and regulations, water quality etc.
Corporate Level Strategies:
Forward vertical integration: the company engage in this kind of strategy since it sell selling its own outputs – beverage concentrates and syrups – to the bottling companies who than convert them to final goods. International expansion: the company’s has expanded from being a US company to be a global company. It has operations in more than 200.
Business Level Strategies:
Marketing Coca-Cola Company makes significant investments designed to enhance consumer awareness and increase consumer preference for its brands. Operations: the company has operations all over the world and in almost 90 percent of those countries; its beverages are produced by local people with local resources
Finance: the company makes equity investments, as well as acquisitions to strengthen its financial position, and returns for its shareholders.
Negative press endured by Coca-Cola in the last 6 months:
An assessment was conducted by the Energy and Resources Institute (TERI) of six Coca-Cola bottling plants in India released in January 2008 that validated the concerns being raised by the communities in India obtained from the detailed technical assessment of groundwater resources.
Hoover’s Handbook of American Businesses. (2007). Profiles 0/750 major US. Companies.
The Coca-Cola Company (2007). Company’s Business Annual Report: Retrieved April, 2008, from http://www.thecoca-colacompany.com/investors/pdfs/form _10K _ 2008. pdf