Supply Chain of Coca Cola

(Cohen, 1990; Spillane et al., 2002; Spillane, Reiser & Reimer, 2006; Cohen, Moffit & Goldin,

Melillo, K. D., Abdallah, L. M., Blanks, C., Campbell, I., & Herndon, L. (2012). Faculty

Authors and their Affiliations: Jessica A. Jones, Kelvin O. Lim, Jeffrey R. Wozniak, Sheila Specker, and Angus W. MacDonald, III. University of Minnesota.

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

Coca-Cola started its business in 1886 bringing, in the concept of carbonated soft drinks. Coca-Cola Company’s primary business consists of manufacturing and selling beverage concentrates and syrups, as well as some finished beverages, to bottling and canning operations and other distributors. (“Structure and culture - creating an effective organizational structure - Coca-Cola great Britain,” 1995). Coca-Cola was first to move into the marketplace and by being first to move into this marketplace Coca-Cola was able to lock in a tremendous market share which improved on their strategy. They were able to build strong relationships with other companies; therefore, forming a stronger bond entitling them to stay at the top of the marketplace.

The Coca cola company, found in 1886, was first created by an Atlanta pharmacist Dr. John S. Pemberton who started his coca cola selling with syrup. In 1899, the Coca-Cola Company began to produce bottling in the United States and bottling business for Coca-Cola develop across the ocean in 1906. Based on Interbrand’s study of best global brand in 2011, Coca-Cola was the world’s most valuable brand.(1) For now though, Coca-Cola is the world’s greatest brand and the biggest-selling in soft drink in history as well.

The purpose of this case study is to assess the internal and external environment analysis and management function of The Coca Cola Company. Since 1998, the company has been struggling evolved their internal weaknesses and external threats day by day. Management strategy is the key concept for The Coca-Cola Company to survival and continue the business.

Coca-Cola is an international household brand. Created in 1886, pharmacist and inventor Don S. Pemberton’s now popular beverage made its first debut at Jacob’s Pharmacy in Atlanta, GA. The syrup concoction, which gained its name from Pemberton’s bookkeeper, was mixed with carbonated water and served as a fountain drink. Dr. Pemberton did not conceive the potential of his new invention, because of this he sold shares of the business to various partners Journey Staff, 2017). However, one investor, Asa Candler, a future mayor of Atlanta, savvy business man, and the first president of the Coca-Cola Company, did see the potential and worked diligently to acquire all the rights and control of the business. Eventually Mr. Candler achieved his goal, and in 1893 the Coca-Cola Company was incorporated as a Georgia corporation. By 1895 the meager beginnings of selling nine drinks a day had transformed into a successful brand which was sold in every state and territory in the U.S. (Journey Staff, 2017).

Strategy is the set of decisions and actions to achieve an organisation’s goal for a longer term basis. Strategic managers always go for long term planning as they target the ‘big picture’ which is also the execution of the strategies for QBL. A perfect example is for the company to create a brand strategy and market it, to entertain consumers because high prices bring profit for limited days- advantages of innovation. The mautiian beverages market is very competitive and includes soft drinks like Coca -Cola, Eski (a local brand) and also energy drinks, non-carbonated drinks. During Christmas, our main competitor, Coca Cola take come along with a new wraparound labels on their PET bottles with Santa Claus picture; whilst Pepsi displays regularly image of pop music & football stars. However, I’m of opinion, that we should plan something for long term like special flavoured drinks for occasions.

“Nobody has figured out the optimal way to organize a complex global economy. In order to optimally create value, businesses must embrace semiglobalization."

During 1985 the Coca-Cola Company instituted a transformation of their flagship brand, thereby altering a formula principally contributing to a remarkable success story approximately one hundred years in the making. Conspicuous erosion of market share to rival Pepsi gravely concerned company executives on account of potential backlashes associated with exclusivity agreements coming out of the restaurant and vending industries. Now those contracts hung in the balance and were becoming particularly ominous. Moreover, losing out to their rival might mean imperiling en masse renewals of agreements going forward. A change in Coke's recipe would inevitably jettison an indomitable formula remaining unchanged for a century and had spawned a global enterprise. Could this create additional concerns for Coca-Cola Company's marketing and sales executives? In other respects and considering Coke the preeminent brand on the planet, could management have overlooked valuable intangible assets such as brand loyalty and goodwill cultivated over the decades? Be that as it may, development of a contemporary formula demonstrating an empirical preference over both present-day Coke and Pepsi began in earnest.

and healthy life styles in the past years has forced soda producers to search for alternatives, this

New product failure or success hinges primarily on a product’s uniqueness and superiority (Bethel, 2017). Coca-Cola exemplifies a company familiar with superior and unique products. Coke. Dr. John S. Pemberton formulated a unique flavored syrup, mixed it with carbonated water and served it from a soda fountain in his pharmacy. This distinctively tasting 1886 concoction, dubbed “Coca-Cola”, became later referred to as Coke (Coca-Cola, 2017). Initially, this fountain favorite averaged sales of nine servings a day. One hundred thirty years later, daily sales average a whopping 1.9 billion servings per day world-wide (Coca-Cola, 2017).

The World of Coca-Cola in downtown Atlanta was where I chose to visit for my manufacturing tour project. My time at the museum / facility was very enjoyable; I learned a lot about Coke products and how they are made. Bottle Works is a miniature manufacturing facility inside the museum, and its purpose is to teach people the process of manufacturing Coca-Cola in glass bottles. Until this year, the facility produced genuine Coca-Cola, which was given to all the visitors at the end of their visits. Now, due to safety and financial issues, the Bottle Works factory uses an inedible brown syrup to display the process only. I met Terrance, a “guest ambassador" in Bottle Works, and let him know about my assignment, which he found to be very interesting for an individual project. While I took notes with my tablet, he informed me in detail of the manufacturing process, both the one that was currently taking place, and also the large-scale process of the main factories. Some of the main factory lines were on real-time display on the monitors in the Quality Assurance Lab in Bottle Works. Main factories have some variations to Bottle Works, such as additional robots, operation on a larger scale, and a much faster rate of production. While Bottle Works produces Coke at a rate of twenty bottles per minute, the factory two miles away from the museum can produce 1400 glass bottles, 2000 cans or 4000 plastic bottles per minute.