Coca-Cola is an American company that manufactures the carbonated soft drinks. It's history dates back more than 100 years ago, when it was invented by John Pemberton as a medicine. Coca-Cola history began 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. It was later bought out by businessmen Asa Griggs Candler, whose mission and vision has led the company to achieve dominant status in the market of soft-drinks. The drink's name came from two of its ingredients: coca leaves and kola nuts. The company does not produce the product itself, instead they produce the concentrate which are then shipped and sold to their licensed bottlers, who hold the exclusive rights of producing the Coca-Cola drinks. After bottling, these products are supplied to the retailers, distributors, vendors, restaurants throughout the world. The company has diversified its business by producing various product mixes such as carbonated soft-drinks, fruit flavored soft-drinks, fresh fruit juices, mineral water, and energy drinks. The company is selling its brand in almost every country of the world. Currently, the company is holding a leader's position in the soft-drinks industry and is expected to retain the title for years to come as no other competitor except PepsiCo, is anywhere near Coca-Cola.
The company has faced the following realities during its operations:
Political: The products of Coca-Cola are regulated by government for use of its ingredients and the company must comply with strictly, in order to carry their operations. Any change in the law can affect the operations of Coca-Cola.
Economic: Coca-Cola has its presence in most of the countries of the world. The customers of these different countries are being served according to their regional taste and requirements and Coca-Cola has customized their products in required ways. The economic position of company is mostly dependent on the beverage industry and most of it comes outside of USA. So, the company needs to carefully monitor the market conditions and requirements of customers of that particular country.
Social: Customers all over the world are becoming increasingly health conscious. They don't want to drink these fatty and sugary carbonated soft-drinks. This aspect needs to be studied by the company. Now, it has introduced recently low fat and low sugar drinks which may help the change in the desire for healthier choices for the needs of the health conscious customers.
The major conditions under which the company has to operate are:
• In many countries, it has detected that the company is using some of the ingredients above the harmful levels due to which the operations of the company came under the government regulations. Such instances should not happen in future.
• The company is facing competition from its main competitor PepsiCo and other soft-drinks manufacturers at local levels. It is required for the company to maintain the quality and taste of the products with optimum customization according to customers tastes.
• The customers are becoming health conscious recently. They tend to avoid carbonated soft-drinks and like to drink some healthy drink. The company needs to look to create products which may cater to the needs of these type of customers.
• In many countries, the latest technology of automated bottling plants may not be available, which increase the production. The company may look to provide them with latest technologies to increase the production at local levels and avoid costly transportation of its products from other places.
Back, A. (2018, July 26). Low Sugar Innovations Sweeten Coke’s Growth. Wall Street Journal – Online Edition. p. 1.
Management has had to rethink its portfolio as consumers move away from the sugary drinks that have fueled its empire. Coca-Cola has invested in juices, teas, coffees, and beverages made with organic and natural ingredients. They also have been reducing sugar, using alternative sweeteners throughout its existing portfolio, and offering smaller can sizes. Revenue was down for the year, as were profits, which took a hit from a $3.6 billion one-time charge related to tax reform.
328 – Coca-Cola. (2018). Fortune.com, 1.
Continue work on your Organization Case Study about Cocoa-Cola. Installment Two of your organization case study should include the following:
What demographic, economic, and political trends are most likely to have the largest impact on the organization?
Identify threats and opportunities that the organization faces in both the short-term and long-term.
What are the organization’s internal strengths and weaknesses?
Do you believe that the organization’s mission, goals, and objectives are structured in a manner that is consistent with those strengths and weaknesses?
Viewing the organization’s principal products and services, where do you believe these offerings are positioned relative to the traditional product life cycle?
And market positioning?
What observations can you make regarding the degree of customer focus which the organization exhibits? What steps has the organization taken to compete more effectively in the new transnational global marketplace?
What is the primary source of the organization’s competitive advantage and does the existing corporate strategy (and structure) capitalize on that advantage?