Coca-Cola Company Evaluation

Essentially, all risk in price fluctuations in the raw materials market is transferred and paid for by the bottling business. Supplier power of the concentrate business is also exerted over the bottling business by the threat of acquisition and vertical integration – the concentrate business supports its bottling business through providing suggestions for operational improvement. While this support can be viewed positively, both Coca-Cola and Pepsi have acquired its bottling franchises due to their dissatisfaction over the operational effectiveness of its bottling business. Through the last few decades, Coca-Cola and Pepsi have oscillated between acquiring and re-franchising its partner bottling businesses.

Due to globalization and this fast-growing business environment, firms struggle to earn above-average returns. They strive to establish a competitive advantage in order to earn higher returns. It is not enough for firms to establish a competitive advantage, they should also figure out ways to sustain it. There are several factors that can affect the competitiveness of a firm including customers, suppliers, existing rivals, new entrants, and substitutes. Firms should take into account these factors in order to sustain their competitive advantage. This paper analyzes Yoffie 's (2009) Cola War case, assesses concentrate producers, bottlers, and retailers in terms of Porter’s (2008) five forces of competition and provides recommendations to Coca-Cola.

Coca-Cola and PepsiCo are the leading competitors in the market for cola products. In 1960 Coca-Cola introduced Sprite, which today is the worldwide leader in the lemon-lime soft drink market and ranks fourth among all soft drinks worldwide. Prior to 1999, PepsiCo did not have a product that competed directly against Sprite and had to decide whether to introduce such a soft drink. By not introducing a lemon-lime soft drink, PepsiCo would continue to earn a $200 million profit, and Coca-Cola would continue to earn a $300 million profit. Suppose that by introducing a new lemon-lime soft drink, one of two possible strategies could be pursued: (1) PepsiCo could trigger a price war with Coca-Cola in both the lemon-lime and cola markets, or (2) Coca-Cola could acquiesce and each firm maintain its current 50/50 split of the cola market and split the lemon-lime market 30/70 (PepsiCo/Coca-Cola). If PepsiCo introduced a lemon-lime soft drink and a price war resulted, both companies would earn profits of $100 million. Alternatively, Coca-Cola and PepsiCo would earn $275 million and $227 million, respectively, if PepsiCo introduced a lemon-lime soft drink and Coca-Cola acquiesced and split the markets as listed above. If you were a manager at PepsiCo, would you try to convince your colleagues that introducing the new soft drink is the most profitable strategy? Why or why not? Can you draw any general conclusions from this case study? (75

Porter’s Five Forces can be used to analyze the carbonated soft drink industry in the United States. The first force is the threat of new entrants. Essentially, this is an analysis of the level of difficulty and number of challenges for new businesses to enter the market. The second force is the threat of substitutes. This is a detailed description of potential substitutes for the products in the industry. The third force is the bargaining power of suppliers. This analysis shows the amount of power that suppliers have over the businesses in the industry. The fourth force is the bargaining power of buyers. This is a summary of the negotiating power of the buyers, and the power they have over the business. The final force is the level of rivalry among the competitors. This is a measure of the intensity of the rivalry between all competitors in the industry. Each of these factors influence the industry. Assessing each force will help a business develop a successful business strategy.

In 1886, the Coca Cola Company was developed but it wasn't until 1898 that the fierce competitor Pepsi-Cola entered into the market. These 2 companies are the two major players that dominate the consumer beverage (soft-drink) industry. Coke and Pepsi have since been competing to rein the global market in consumer beverages. The market of drinks in the United States alone is valued at more than thirty million dollars annually. With the growth of these two companies, PepsiCo has developed and acquired additional products outside the scope of just the consumer beverage industry, these products have helped the company to increase their exposure and position in the global market. This has not been the case for the Coca Cola Company; they

The Coca-Cola Bottling Company holds true to their values and strategy, thus creating more value within their brand. Business level strategy implements new products that embodies a fun and sociable atmosphere amongst family members and friends. This ambitious quality in a company is what pushes them past the threshold of complacency to move their product. One way they were able manage their brand globally was by using intense advertisements. Adding to their already famous and highly desired beverage, a business level strategy was instituted to add flavors to their cola product. By adding Cherry Coke and Vanilla Coke to their products, they satisfied the taste buds of millions upon millions of consumers here and abroad. Having the corporate level strategy makes the corporation thrive in the global market. It is also viewed as staying relevant or competitive, by developing more products that would best serve everyone who enjoys their product.

To survive in the global competitive market, most companies keep inventing new products that enable them to remain relevant. Firms compete to create unique products or services that satisfy customer demands through differentiation. Companies can improve on existing products to make them more effective and attractive. Coca Cola founded its company in 1886, with its original recipe; however, due to consumers wants they also created diet, caffeine-free, and special flavored drinks. They created a unique line to enhance their original drink to attract more consumers. In the end, it proves to serve them well to have a wide variety of drinks because in 2016, Coca-Cola’s market cap was $192.80

Coca Cola has differentiated its product and services that are valued by its customer. Its product are based on customer’s preferences, with affordable price and made easily accessible.

Coca-Cola is “Tall” in terms of organizational complexity. Coca-Cola is controlled through a vertical hierarchy, with decision-making authority residing with the company’s upper management. Daily and routine decisions are made by the line managers at the middle level.

The Coca Cola Company is very cautious and responsive to change; they act with urgency and have the courage to discourse when needed to work more efficiently. Coke’s focus is to administer its system assets to build values and rewards for the people who take risks by finding better ways to solve problems. Coca Cola Company feels they are accountable for their actions and inactions and hence answerable to the people. They learn from their outcomes and understand what works or what doesn’t for them.

Coca-Cola is the result of a patent medicine formulated in a small southern pharmacy over a hundred years ago. It has grown into a multibillion dollar international company. It also owns one of the most valuable brands in the world. Their Coca-Cola banner has won the world’s top brand 13 times on brand c-consulting firm Interbrand’s annual list (Fraser, 2012). In addition to its main product, Coke, the company owns over 3500 beverages. One of its core competencies is brand building. They have built their brand to have respectability and dependability. Their brand and logo are recognized all around the globe. It has actually become a new known on almost all households worldwide (RNWILKIN, 2009).

The Coca-Cola Company is a strong multinational company with a well-established trademark that has done well since 1886. The company has improved its marketing strategies to satisfy customers in a better way. Since its establishment, it has effectively differentiated itself by being considered as the largest manufacturer, marketer, and distributor of non-alcoholic syrups

The Coca Cola Company is a multinational company with more than 140,000 employees, the company is in beverage business and its flagship product Coca Cola is considered one of the best soft drink. Coca Cola soft drink is the real revenue generator of the Coca Cola Company. The company was found in 1892 and by 2010 it was reported that the company has the serving of 1.7 billion per day so the company has only grown since its inception. The company is serving its product in more than 200 countries, and the Coca Cola Company owns more than 500 brands, this shows that the graphs of the company is moving upwards and the Coca Cola Company is growing at an immense rate.

The competiveness between Coca Cola and Pepsi has been staying the number one dominant share worldwide in the soft drink market. For them to expand the company it has had to stay focused on the growth of the share market all over the United States. Coca Cola’s top goal is to increase the market shares in the international area. It has shown that the company has gotten wrapped up in several unethical practices in the business that have become harmful to the corporation. Putting out more benefits quickly which has forced managers to take multiple ethical discrepancies that have been shown all over the news channels.

In this assignment, is to study Coca-Cola to evaluate the Coca-Cola with the Performance Management and Appraisal.