Coca Cola Internal and External Factors

This case study is the story of Coca-Cola, its history and the report about one of the most fascinating stories about the company this is still regarded by many as a mysterious case: “the introduction of the new Coke”.

Coca-Cola Company history originated in 1886 when the “curiosity of an Atlanta pharmacist, Dr. John S. Pemberton, led him to create a distinctive tasting soft drink that could be sold at soda fountains” (Coca Cola History, 2013, para. 1). He generated flavored syrup, took it to his

Coca Cola was born in the laboratory of Dr. John Pemberton in May 1886 in Atlanta, Georgia. Coca-Cola's own name was made by Frank Robinson. And marketed for the first time with an ad of banners with the inscription of oil paints labeled "drink Coca Cola". Although it was the title of "brand of the century", Frank Robison had experienced a loss in sales. Coca Cola formula then bought by Asa Chandler in 1892 that heavily promoting senhingga experiencing huge profits. Coca cola increasingly global sales thanks to independent bottling firms with licenses to other countries and this is maintained until now.

The political situation of a country affects its economic settings and economic environment affect the business performances. Coca-Cola sales are impacted by a set of economic factors that beyond are beyond the company’s control. These factors include the level of economic growth in the country and in the industry, tax rates and currency exchange rates, interest rates, labor costs and others. 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. Its’ operating margin remained at industry-front 22% despite the crisis, although dividend yield was reduced to 2.6 % Quarts. (Timmons, H. (2014). Economic factors relate to goods, services, and money. Despite directly affecting businesses, these variables refer to financial state of the economy on a greater level –whether it be local or global, inflation increases cost of production. Consequently, Coca-Cola had to face the uncontrollable problem of increasing their pricing. With this increase they risk losing customers who cannot afford their products because it is a desired product not a necessity. Due to inflation in 11 years the price of an identical bottle of Coca Cola has doubled in price. Alternatively, Coca Cola could be forced to lower their prices to facilitate an increase in consumption

The story of Coca-Cola dates to the late 1800’s where an Atlanta pharmacist, Dr. John S. Permberton, created a soft drink that would later develop into the “Coke” that is now a staple within many American households. Coca-Cola quickly found themselves bottling for mass production in 1899, which was something revolutionary for the time. No other soft drink was being mass-produced in bottles like Coke was attempting to do. This was due in large part to three businessmen out of Chattanooga who had purchased bottling rights, and had the mindset of taking the soft drink in a direction no other soft drink gone before. The famous Coca-Cola label and logo were not produced until 1916, but the label has never seen a change since.

Coca-Cola and Pepsi were fought over for a very long time in the carbonated soft drink beverage industry. Today, I will used AFI framework to analyze Cola-Cola performance and find out how did this company deal with the decline in the CSD consumption and its rivalry.

The company known as Coca-Cola today was started in September of 1919, but the first Coke brand was served as early as 1886. Since that time it has grown to be one of the most globally recognized brand names with a stock value of $167 billion. Coke’s plan has always been developed with the future in mind. Right away the company realized that it was more profitable to manufacture the concentrate used to make carbonated drinks than to bottle it. From that point on they saw the entire world, not simply the originating country, as their desired market. It seems only practical that the company should pursue this agenda until conquered then focus the effort on expanding into different product lines. This logical

Market research is the process where the marketing problems and opportunities are defined through the information gained from the customers. The Market research is also used to help understand the marketing process, which then helps increase the performance of the company’s marketing. Due to the raise of the public awareness of obesity and its consequences, the soft drink companies such as Coca Cola where heavily bombarded with negative publicity. As a result the sales of many soft drink companies have declined. In response to this major companies such as Coca Cola have embraced the idea of quantitative market research to understand the needs of the consumers. To be able to achieve an effective market research the company has spent around $132.8 million on many methods of retrieving information but one of the main method was by surveys. The surveys have shown that the image of the company was associated with unhealthy products, due to the results that were provided Coca Cola was able to understand that to attract more customer the only solution was to change the marketing plan to re- brand the business into a health conscious business.

The main purpose of advertising is to inform people about products offered by an organization, persuade people to buy the product by using pathos, ethos, logos, or other techniques. The organization hopes that people will remember them and repeat the purchase.

The Coca Cola industry is a vibrant model that started in 1886 by John Styth Pemberton who was a pharmacist in Atlanta, which is the capital; headquarter for the Coca Cola Company. It is the world’s primary manufacturer of non-alcoholic beverage and operates on a global scale across over 200 countries worldwide with over 500 brands. The company is widely recognized by 94% of the world’s population (coca cola Company.com). Coca Cola is largely successful, has become the iconic beverage of the American culture, is ranked number three in the world, and is regard as “happiness in a bottle worldwide (bestglobalbrand.com) The company post revenue of 5.37 billion dollars with a 2% rise in the North American market (NBC.com). This report will therefore examine many different aspect of the Coca Cola company which as allow them to become the beverage and brand of choice worldwide.

Coca Cola’s first main weakness is that it is highly susceptible to any kind of negative publicity. Every kind of negative publicity can hurt the brand badly. Some years ago after traces of pesticides were found in the products of Coca Cola, it had hurt the brand really hard. Sales had dipped in various corners of the world apart from the criticism that flowed. Any such thing can hurt the popularity and sales of coca cola. However, Coca cola can overcome this weakness by being more transparent regarding the ingredients it uses in the production of its brands.

The iconic Coca Cola soft drink has been a consumer favorite since 1886, thanks to its creator Dr. John Pemberton. For 129 years, Coca Cola has flourished into a success in the business world. It is the largest beverage company, today, sold in over 200 countries today. There are several reasons for Coca Cola’s success in the business world.

The essay describes the key characteristics of Coca Cola Company and how these characteristics are aligned with the organizational behavior. The motivational theories are also discussed in detail which could be useful in managing such a large workforce.

Dr. John Pemberton is the individual behind the Coca Cola firm, and he incepted in it in 1886. Pemberton was a pharmacist from Atlanta, Georgia in the USA. Due to curiousity, Pemberton happened to stir a liquid that was caramel-colored, and then he made a solution of it with carbonated water. A sample of people tasted it and agreed it was special and Jacob’s Pharmacy put it on the shop shelves for a cost of five cents for a glass (Dhar et al., 2005). The first year saw a sale of only nine glasses every day. Over a hundreds of years have passed and by now, the firm has produced syrup exceeding ten billion gallons with over 1.8 billion servings per day in the entire globe. Pemberton died in 1886, meaning he did not live to see the success of a drink he had made. Thereafter, an Atlanta-based entrepreneur, Asa Griggs Candler, secured the business, buying the entire rights of Coca Cola by 1891 for about $2300, thus making him the first president and leader who brought a mission and mission that built the Coca-Cola brand (Slater, 2001). The Coca Cola Company together with its subsidiaries only produces the syrup, which is distributed to all bottlers in the world within that franchise. These bottlers hold exclusive rights to their territories, and they produce the final products in bottles and cans right from the syrup when combined with water and sweeteners. Distribution is done from these bottlers to retailers, hotels, and vending machines.

Coca-cola wants to extend, reach out to customers and consumers in each of their markets and meet their demands .