ATENEO DE DAVAO UNIVERSITY
School of Business and Governance
The Coca-Cola Company: Coke Gets Back to Business
Submitted to:
Mr. Godofredo Eding
Submitted by:
Ruplo, Divine Joy
June 18, 2010
I. Background Throughout the world, Coca- Cola has established its name as one of the biggest selling soft drinks and leading distributor of beverages. However, there prominence has also declined due to unexpected events. These changes were also brought by new heads of the company. Coke’s former CEO, Roberto Goizueta had considerably increased the market value of the company but declined when he was replaced. Since another chief operating officer took over in 2000, Coke’s growth in the market was challenged by many investors on how
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III. Problem Statement How should Coke regain its global dominance through strategic plans to increase its market value?
IV. Objectives
1. Expand a growth potential of a carbonated soft drink in the market this year.
2. Develop a product of noncarbonated variety to increase profit this year.
3. Improve customer relationships with ingenuity to create development on service channels to market the product in the next six months.
4. Appropriate investments in large prospective markets for greater purchase connections this year.
5. Increase cost-effectiveness and competence.
V. Areas to consider Expanding a specific potential of a carbonated soft drink should be further investigated by the Research and Development Department. Through accelerating the emergence of an old product, this would yield another track of working hand-in-hand with marketing research findings. If necessary, it has to improve the taste or packaging areas that need innovation. Developing a noncarbonated drink would also need thorough research of developing its brand image that would surely hit people’s interests especially on taste. The power of media could also bring a good start of introducing new products since many are now concerned with their health. The improvement of customer relationship can bring large impact through increasing the sales force that would surely market the product
Improve market share or customer base to 35% within 1.5 years: The higher market share allows the company to receive better price from suppliers and get better image from customer perspective.
The next stage is a stage of providing the actual change actions. Here, the company has chosen a new CEO and President, Douglas Daft, who was an opposite of Ivestor. Daft was a delegator, who wanted to turn Coca-Cola to a most desired company by employees in the world. He also saw a company as a head of the class, when speaking about diversity of workforce and business. Daft was fast in his actions. He has put Ware on the position of Vice-President for Global Public Affairs, as he was concerned about diversity issues in the company as well. They applied Ware’s suggestions about supporting the diversity from the top-executives and tying compensation increases to the achievement of diversity goals. On this stage, the U.S. District Court for the Northern District of Georgia approved the Settlement Agreement, which was used to non-hourly U.S.-based workers of the company, excluding its bottlers and called for pay-back to employees, future pay equity and equal employment opportunity. Task Force was created to provide an independent supervision of company’s compliance and was reporting on implementation of these programs. On this stage, Coca-Cola learned a lot about its past mistakes and provided dozens of changes to its policies and procedures. As it is not possible to change a whole organization in a short-time period, Coca-Cola was implementing changes during the next decade after a lawsuit and even created a document, called “Manifesto of
Coca Cola is the leading manufacturer, marketer and distributor of soft drinks in the world. With domestic market nearing saturation, the potential for growth lies in international markets. In recent years, economic, political and social changes have made the global environment more uncertain, forcing Coke to reevaluate its strategy, structure and culture to maintain a competitive advantage. The following is a dynamic analysis that tracks the evolution of Coke’s strategy from global standardization to a multi-domestic strategy that emphasizes national responsiveness.
Coca-Cola is one of the world’s biggest and most well-known beverage brands. During its heydays when the company was led by CEO Goizueta, Coca-Cola’s stock was on a steady rise. As late as the 1990s, Coca-Cola Co. was one of the most respected companies in America, a master of brand-building and management in the dawning global era (Carvens & Piercy, 2009). Over the last couple of years, however, Coca-Cola’s stocks have been falling and profits have been decreasing from quarter to quarter.
Dominite customer relations and sales for the long term can be improved not only by product services, technical assistance
The Coca Cola Company is the world’s leading owner and marketer of nonalcoholic beverage brands. In order to achieve long-term sustainable growth they look at their brands, financial strength, unrivaled distribution system, global reach, and a strong commitment by management and associates worldwide. The company focuses on inspiring their employees, satisfying customer desires, nurturing partners, making a global difference, maximizing returns to shareowners, and managing for overall effectiveness. The financial statement that the Coca Cola Company provides shows their strong leadership by the data they present. By discussions held in class it allows us to analyze the following
Halewood corporate objective in the market is to become a market leader in the soft drink manufacturing and distribution market. Dominating the market will enable the company to increase its turn over and compete adequately with other producers in the market. The company also aims to attract specialized workers to its organization to ensure that it provides quality and innovative products (Medway, Warnaby & Dharni, 2011). The company has recently introduced a new product in the market to increase its market share in the soft drink market. The product is a carbonated wine alternative aimed at attracting women in the soft drink sector of the market. The product will exist in three varieties to increase the product choice available to the customer. By ensuring that the company has a new product in the market, the company increases brand awareness in the market causing customers to migrate (Mcdonald, 2011).
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As mention before, Coca-cola has 47.3 percent market share in the country’s cola market versus Pepsi which hold 44.5 percent. Coca-cola is also the brand known around the worlds, which are the largest producer and distributor of ark colas in the world. Even in the current monetary crisis, the company continues to expand and the financial position shows that Coca-cola has a strong cash position in compare to PepsiCo which the long term debt of PepsiCo is so high.
An opportunity exists for the firm to venture into new product lines like energy drinks and other culinary applications.
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With the limited staff and limited customer contact, management feels that drastic measures are needed to reach new customers, expand current customer services, increasing understanding of customer desires, increasing the customers'
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.
give a better understanding of the current customer needs and help it come up with solutions for a more effective marketing strategy.
Coca-Cola is the number one captivator of people’s throats. The company, in the last one hundred years, has managed to transform people’s thirsts in to a need for Coca-Cola. The story of the Coca-Cola Company has humble beginnings. In 1885, John Pemberton, and Atlanta pharmacist, registered a trademark for “French wine cola-ideal nerve and tonic stimulant”, a brew he had developed in a three-legged pot he apparently stirred with an oar. His desire to create such a product was based upon a stomach injury and subsequent morphine addiction he acquired during the American Civil War. (Frederick p.31) His research led him to the Peruvian cola leaf whose healing effects included aiding digestion, aphrodisiacal powers,