Coca Cola Case Study

Coca-Cola Company is the world’s largest beverage company, refreshing consumers with than 500 sparkling and still brands. The company and its bottling partners are dedicated and focused on five key areas. There are profit, people, portfolio, partners and planet. Coca-Cola has the scale but lacks the agility to adapt.

An in depth analysis of the current costing methods used by the beverage distribution company, Johnson Beverage Inc.

One major way that Coca-Cola reduced cost was through the implementation of the zero based work system; this allowed the organization budget to start from zero each and every year (The Coca-Cola Company , 2016). That in turn created the need to justify the budget each and every year rather than automatically approving at least the amount spent the previous year. Finally the organization halted all marketing not done over a media platform such as in store advertising. This reduced marketing costs and allowed the organization to spend money on other aspects of the business.

The Coca Cola Company (TCCC) was founded since 1886 and it has been 129 years today. TCCC is the worldwide carbonated soft drinks industry from United States of America. There are four top five soft drinks brands of Coca Cola, Diet, Coke, Fanta and Sprite. The other products are: Juice & juice drinks, waters, energy drinks, sports drinks, cordials and iced tea. It has licenses and markets more than 500 beverage brands. The company has relationship with over 250 bottling partners worldwide. TCCC is manufacturing by nearly 900 plants to worldwide markets. In strengthening operations through an integrated supply chain, the company make alliances with the Walt Disney and the McDonalds. In 2012, the key performance are highlighted by increasing

cultural factors can influence the way a product is viewed by the consumer. If the government were to release a report regarding one of PepsiCo’s products then the company might see a decline in sales. Environmental factors include issues regarding the environment and what the company does to protect it. PepsiCo believes that water is a basic human right and should be readily available to any consumer. Overall PepsiCo does a great job in assessing all of the general environment factors in order to sustain a positive view in the consumer’s eyes.

Coca-Cola was created in 1886 by John Pemberton, a pharmacist in Atlanta, Georgia, United States of America. Coca-Cola is the world’s largest soft drink maker. It sells more than 3,500 products worldwide. Coca Cola offers markets more than 500 non-alcoholic beverage brands and also world class quality, starting from Coca Cola soft drinks, juices, teas, water and energy drinks. Coca-Cola owned a huge popularity across the world. The company ranked the third Interbrand’s 2014, the most valuable brands list in the world. Coca-Cola has its own efficiency in marketing strategies, innovation, and extensive global reach that makes reputation of the company rise in globalization.

Coca-Cola shows impressive performance in profitable growth. Coca-Cola’s current gross profit margin is very high, which is good because this indicates that the company has done an exceptional job in cutting costs. Coca-Cola is making considerable effort in making use of costs of goods sold. The management team at Coca-Cola is effectively using raw materials, labor, and manufacturing supplies. According to Muhtar Kent, it

The following is a case study referring to two major soft drink organizations. These two major organizations have been popular throughout their life time. But before getting into all of that first let 's have a background to both of the companies so let 's begin with PepsiCo. It began with the merger of Pepsi-Cola and Frito-lay. Caleb Bradham was the creator of PepsiCo. Donald M. Kendall, former president and CEO of PepsiCo, he was the present and also chief executive officer. Another huge announcement that PepsiCo had was acquiring Quaker Oats, so PepsiCo would gain access to Gatorade and control 83.6 percent of the sport drink market. PepsiCo would control around 33 percent of the U.S. uncarbonate-beverage. Now giving the background to Coca-Cola their annual sales were around 20.5 billion, and market value reached 110.1 billion. The company was the largest manufacturer and distributed, and marketer of soft-drink concentrate and syrups. One of the main reasons for this was the company 's strategy of spinning off its bottling operations to avoid consolidation on is balance sheet.

The Coca-cola company is a homogeneous product manufacturer company. With 1.7 Billions units sold a day, the company is the largest soft drink manufacturer in the world and hence it becomes important to have a simple accounting system to determine how much these products should be sold at. The process costing determines the average cost for each unit so that it is easy to sell both a large amount of products or a small amount and understand how much profit is being made on the products. This type of accounting system would not be as effective if the company was creating many different items that had different costs of tasks throughout the process.

1. What is PepsiCo’s corporate strategy? Briefly identify the business strategies that PepsiCo is using in each of its consumer business segments in 2008.

(Hollensen, 2004). This would work for Coca Cola as it would allow the product to be made efficiently with low cost, low risk and the product being the same everywhere. The case is however not so as the price of coca cola vary from country to country and across continents. A number of factors at the country play a huge role in the pricing strategy adopts in pricing coca cola. Some come as a result of internal factors, i.e., company objectives, marketing objectives, costs and other marketing mix variables. Those that come as result of external factors include channel member expectations, buyer’s

Pepsi-Cola is a carbonated beverage that is produced and manufactured by PepsiCo. It is sold in stores, restaurants and from vending machines. The drink was first made in the 1890s by pharmacist Caleb Bradham in New Bern, North Carolina. The brand was trademarked on June 16, 1903. There have been many Pepsi variants produced over the years since 1903, including Diet Pepsi, Crystal Pepsi, Pepsi Twist, Pepsi Max, Pepsi Samba, Pepsi Blue, Pepsi Gold, Pepsi Holiday Spice, Pepsi Jazz, Pepsi X (available in Finland and Brazil), Pepsi Next (available in Japan and South Korea), Pepsi Raw, Pepsi Retro in Mexico, Pepsi One, and Pepsi Ice Cucumber in Japan .Pepsi cola is situated is an Industry that is dominator by two Competitors Coca

1.) Why do companies like Pepsi need to globalize? What are the various ways in which foreign companies can enter a foreign market? What hurdles and problems did Pepsi Face when it tried to enter India during the 1980s?

As one of the largest beverage companies in the world, Coca-Cola aim to make environmental efforts on sustainable water use, recycle packaging and climate protection. Water is the primary resource that human beings rely on to survive, as well as the main ingredient of Coca-Cola’s products. In order to make sustainable use of water and provide high-quality products, Coca-Cola devotes on water stewardship. There are some key areas in their water stewardship journey: reducing the water use in agricultural cultivation, recycling wastewater from water use in operations, and watershed restoration programs to replenish the water supply (Walsh & Dowding, 2012).

Long before now has branding been considered as one of the peripheral aspects of business. Manufacturers, investors and other key players focused on the product without paying much attention to the consumer. But as the business landscape got tougher, marketing became not just an integral part of business but one of the fundamental principles of success.