...entrants For bottling companies, the threat of new players, i.e. new bottlers entering the market was low. This was primarily because of the prohibitively high fixed costs involved. The cost of setting up an efficient large plant with four lines, automated warehousing, and a capacity of 40 million cases was $75 million in 1998. Moreover, among the top bottlers in 1998, the variable costs included packaging (roughly half of the cost of goods sold), concentrate (one-third), nutritive sweeteners (one-tenth), and the remaining variable cost was labor. Apart from this, bottlers had to invest capital in distribution networks and trucks. As a result of these cost structures, bottlers operated on razor thin margins. Another barrier to entry for new entrants was that the established brands had gone on to create their own independent bottling subsidiaries (e.g. CCE and PBG). As these subsidiaries were handling the major share of volumes for Coke and Pepsi respectively, it became increasingly difficult for new bottlers to enter into exclusive contracts with established brands. For bottlers, due to the capital intensive nature of bottling industry, it was important to enter in contracts with brands that will utilize capacities fully. In the case of Coke and Pepsi, their incumbent bottlers were acquired by the giants to form their own independent bottling subsidiaries, therefore creating even greater barrier to entry for new players. Threat of substitutes For bottling companies, substitutes...
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...DESIGN AND DEVELOPMENT OF TRANSPARENT MANUFACTURING FACILITY OF COCA-COLA BOTTLING CO. CONSOLIDATED IN CHARLOTTE, NORTH CAROLINA Final Report Presented by TEAM G Abilash Patni Diana Montoya Hemant Chidrula Matthew Elliot Sandeep Singh Varunprasad Natu EMGT 6901 Advanced Project Management Fall 2015 Systems Engineering and Engineering Management Department The University of North Carolina, Charlotte * ACKNOWLEDGEMENT Completion of this project would not have been possible without the kind support and help of many individuals and organizations. Our team would like to extend my sincere thanks to all of them, especially the following groups and departments from Coca-Cola for their support and cooperation to make this project a success: Maintenance, Production, Materials, Marketing, Customer Relations, and Quality. Without their willingness to help in the planning and construction of the renovation of the Charlotte facility, success would not have been possible. ABSTRACT veloping, upgrading/converting the current practices and bottling facility into “glass” where everyone will be able to see through. Charlotte, NC home of the first Bottling Company for Coca-Cola, places #57 in the top places that drink most soda nationwide [7], home of the Hornets, Carolina Panthers, and Motor Speedway, with a population of close to 800,000 makes it the 17th largest city in the US based on population, and the perfect home for another attraction: A renovated transparent...
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...A UTH-WE ST MBA series N's CEN G SO ER GE in E conomics Managerial Economics A Problem Solving Approach SECOND EDITION LUKE M. FROEB Vanderbilt University BRIAN T. MC CANN Vanderbilt University Australia • Brazil • Japan • Korea • Mexico • Singapore • Spain • United Kingdom • United States Managerial Economics: A Problem Solving Approach, Second Edition Luke M. Froeb, Brian T. McCann Vice President of Editorial, Business: Jack W. Calhoun Vice President/Editor-in-Chief: Joe Sabatino Acquisitions Editor: Michael Worls Developmental Editor: Jean Buttrom Associate Marketing Manager: Betty Jung Content Project Manager: Lindsay Bethoney Media Editor: Deepak Kumar © 2010, 2008 South-Western, Cengage Learning ALL RIGHTS RESERVED. No part of this work covered by the copyright hereon may be reproduced or used in any form or by any means—graphic, electronic, or mechanical, including photocopying, recording, taping, Web distribution, information storage and retrieval systems, or in any other manner—except as may be permitted by the license terms herein. For product information and technology assistance, contact us at Cengage Learning Customer & Sales Support, 1-800-354-9706 For permission to use material from this text or product, submit all requests online at www.cengage.com/permissions Further permissions questions can be emailed to permissionrequest@cengage.com Print Buyer: Sandee Milewski Production Service:...
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