...1. Situation Analysis Case Background Created in 1886 by Dr. John Pemberton, Coca-Cola has gone through many changes, some good and some bad, but in the end has become the worldwide leader in its industry (Graham, 2011). The company boasts a lineup of approximately 500 different drinks, including soft drinks, teas, coffees, juices, and waters. Soft drinks are their “cash cow” with around two billion cans and bottles sold each day (Graham, 2011). The syrup originally was designed as a "cure-all tonic" and contained coca leaves (Davis, 2004). Two years after creating the mixture, and just before he died, Dr. Pemberton sold the rights to the beverage to Asa Candler. Due to increasing demand Joseph Biedenharn started bottling Coca-Cola and bottled distribution of the soda began; within five years large scale bottling operations became available. Throughout the company's history, and even today, it has faced and overcame many challenges. Coca-Cola was, until recently, the world’s most valuable brand (Elliott, 2013), but is still the worldwide leader in the beverage industry. Through all the successes, Coca-Cola has encountered some challenges along the way. Coca-Cola has been criticized for discrimination against minority employees, poor working conditions of migrant workers, and even assassinations of trade union leaders and union-affiliated workers that provoked protests (Raman, 2007). Another emerging issue the company is facing is criticism that their products are contributing...
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...Competitive Strategies Coca Cola vs. Pepsi By Mohammed Hashim Professor Dr. Phyllis Parise Contemporary Business May 05, 2013 Coca Cola and Pepsi Company are two of the largest producers and distributors of beverage in the world. They manufacture, markets and sells variety of carbonated, non-alcohol beverages. They continued to lead the industry with their commitment to healthier food and maintaining the high quality of their beverages. Pepsi and Coca Cola has been known to have history of competition to maintained share of world mark, where both companies need each other in order to remain competitive. Pepsi is known to offer culture that encourage their employee to be initiative, risk taking and free to pursue their goals. Senior management door are always open to question and ideas from junior employees. Diversity is a way of business to Pepsi, Pepsi President Walter Mack; in his diversification he hired Hennan Smith a black executive to lead an all-black sales team. While Coca Cola general culture is defined as leadership, passion, integrity, and diversity. To attain this Coca Cola Company create a worldwide tam that is full of diverse people, talent and ideas. If we discuss diversity Pepsi has proven to be ahead of Coca Cola, by recruiting people of color and give them early opportunity for advancement. Though Coca Cola has claim that, their workplace diversity program is design to attract, retain, and develop talent. This really did not provide a true count of what...
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...Coca Cola Enterprises Company: Coca-Cola is one of the most powerful brands. The company has dominated the soft drink market for more than a century, continued the company’s 17-year reign at the top in 2016. Such achievements are byproducts of vision and an operating framework which is completely build on excellence. Coca-Cola Enterprises (CCE) has made a top priority to replace its outdated systems with advanced platform across markets to create an organized view of metrics and modernized processes Manufacturing Process of Coca Cola: . Life Cyle of Coca Cola Bottle: Coca Cola Supply Chain Process: Suppliers and Customers of Coca Cola: Suppliers: 1. Monster Beverage Corp: Monster Corporation is a beverage company that manufactures energy drinks, natural soft drinks, and fruit drinks. On November 10, 2008, distribution of the Monster Energy and Monster Java products was turned over to Coca-Cola Enterprises. Headquarters: Corona, California, United States Employees: 1K Relation Value with Coca Cola: 17.52M (USD) Revenue Percentage Company gets from Coca Cola: 2.23% 2. Eaton Corporation: It is a multinational power management company, founded in the United States and providing solutions to its customers to manage electrical, hydraulic and mechanical power efficiently, safely and sustainably. In 2007, Coca-Cola received its first installment of trucks in North America with Eaton's hybrid electric system. Headquarters: Dublin, Ireland Employees: 97K ...
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...Coca Cola and Pepsi Company are two of the largest producers and distributors of beverage in the world. They manufacture, markets and sells variety of carbonated, non-alcohol beverages. They continued to lead the industry with their commitment to healthier food and maintaining the high quality of their beverages. Pepsi and Coca Cola has been known to have history of competition to maintained share of world mark, where both companies need each other in order to remain competitive. Pepsi is known to offer culture that encourage their employee to be initiative, risk taking and free to pursue their goals. Senior management door are always open to question and ideas from junior employees. Diversity is a way of business to Pepsi, Pepsi President Walter Mack; in his diversification he hired Hennan Smith a black executive to lead an all-black sales team. While Coca Cola general culture is defined as leadership, passion, integrity, and diversity. To attain this Coca Cola Company create a worldwide tam that is full of diverse people, talent and ideas. If we discuss diversity Pepsi has proven to be ahead of Coca Cola, by recruiting people of color and give them early opportunity for advancement. Though Coca Cola has claim that, their workplace diversity program is design to attract, retain, and develop talent. This really did not provide a true count of what they did to woman and minority in our communities, unlike what Pepsi could actually show, and people can see in Pepsi corporate...
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...CONTEMPORARY BUSINESS DR.MAGGIE SIZER COMPETITIVE STRATEGIES : PEPSICO VS. COCA-COLA AKIN DUNDAR 200068711 MBA/FINANCE 1/30/2013 Every company has a descripted or non-descripted competitive strategy if they have at least a competitor in the industry. To have the conversion rate of the investment, the company should have a desired and defensible position and power to defence this position. Sometimes, even a company has a really successful product it still tries to produce a new item or improve the one it has and this decision could be one of the biggest fail of marketing history. According to some marketing experts; the reason of the success of coke drink in the beverage industry is the advertisement competition and marketing war between PepsiCo and Coca-Cola since years ago. If there was not a PepsiCo in the industry, Coca-Cola could not make a billion bottles of daily sales. Both companies are in top of the list of most valuable brands list. They had many successes during their 120 years of rivalry but both of them also made high-cost mistakes during that time. The competition between the ‘Enemy Brothers’ is one of the good sample of rivalry which is based on a lot of interesting cases,different strategies and cultures. Differences between Coca-Cola and PepsiCo cultures and strategies was the main result announcer. In the middle of 1880’s, Coca-Cola was unrivaled in the industry. When the industrial war begun, was the time that PepsiCo...
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...The existing concentrate business is largely controlled by Coca-Cola Company (Coca-Cola) and PepsiCo (Pepsi), together claiming a combined 72% of the U.S. carbonated soft drink (CSD) market sales volume in 2009. Refer to Exhibit 1 for an illustration of the CSD industry value chain. For more than a century, Coca-Cola and Pepsi have maintained growth and large market shares through mastering five competitive forces, shown in Exhibit 2, that drive profitability and shape the industry structure. Entry Barriers: Both Coca-Cola and Pepsi have strong entry barriers for new competitors, especially in high-end markets like the US. Because of the two companies’ sizes, market maturity, and good market position, many barriers exist for new entrants. Such barriers include brand power, high capital investments, access to available suppliers, contracts with large restaurant chains, and restricted access to store shelf space. Although these high barriers exist in all markets, Coca-Cola and Pepsi have recently experienced strong competition in key developing countries. For example, AJE, the Peruvian producer of Big Cola with global sales of $2 billion, has captured important market share in Latin American countries forcing the two incumbents to cut prices in those countries. AJE has focused on serving the bottom of the pyramid (see Exhibit 3), offering lower prices (20-50% below competitors), while reducing costs through minimal advertising and use of a local distribution network. This distribution...
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...Cola Wars Case Study DMBA 630 Marketing and Strategy Management in the Global Markeplace Introduction Carbonated Soft Drinks (CSD) have been around for over a century and now accounts for a $60 Billion market with the average American consuming about 53 gallons a year. Coca-Cola was invented in 1886 by John Pemberton as a “potion for mental and physical disorders.” Asa Candler acquired the formula and began marketing it as Coca-Cola. The first bottling franchise was accorded in 1899 for a sum of one dollar. Pepsi-Cola was invented in 1893 by Caleb Bradham a pharmacist from North Carolina. Pepsi also franchised its bottling operations. Pepsi struggled over the years going bankrupt twice within a decade, first in 1923 and again in 1931. Pepsi competed aggressively against coke offering almost twice the amount of Pepsi for the same price in the 1930s. Coca –Cola or Coke on the other hand was the market leader through the early 20th century with numerous imitators popping up trying to clone Coke. Coke fought back in the courts to aggressively deter imitators and counterfeiters. During the 1920s and 1930s, Coke was marketed to multiple market segments making it available to anyone desiring the brand. Eventually Coke sued Pepsi for trademark infringement in 1938 and lost. Pepsi gained market share and became a titan competitor in the market for CSDs beating out all other brands except Coke. Thus began the “Cola Wars” in 1950 with Pepsi’s aggressive “beat Coke”...
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...Fit The Coca-Cola Co. The biggest multinational beverage company Coca-Cola was born in 1892 by Asa Griggs Candler in Georgia. Today The Coca-Cola company is selling more than 400 brands in 200 countries and 94% of the world population knows or heard about the Coca-Cola company by their product Coca-Cola, Coke, Cola or Coca etc., possibly it is the most recognized carbonated beverage company in the world (Sivny 2007). According to Journal of American Business review, what makes the Coca-Cola Company successful in the global food industry is their strong global strategy that based on four powerful strategic foundations: labor and management strategy, collaborative, marketing and differentiation strategy (2013). When companies start to operate internationally they have to decide how to staff their facilities by choosing from three frameworks that covers international employment: ethnocentric, polycentric and geocentric staffing approaches. One of the key to success of the Coca-Cola Company is implementing the geocentric approach to their staffing strategy, which is choosing the best mixture of home, host-country and third party managers to manage the operation. According to Statista, statistic shows that the number of employees of the Coca-Cola company worldwide is 130.6 thousand in 2013 (2013). One of the Coca-Cola’s mission towards their employees is to create a better working place, and inspire their employees with the best working environment (Coca-Cola.co.uk...
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...Anne N. Marketing 14; 11:30 – 1:30 TTS GLOCALIZATION: The Chronicle of Coca-Cola A Global Business Entering the last quarter of the 20th century, the deep emotional bond between Coca-Cola and its consumers grew even more powerful and more global. In 1971, young people from around the world gathered on a hilltop in Italy to sing "I'd Like to Buy the World a Coke," a counterpoint to turbulent times. This was also a glimpse into the Company's future: an expanding global presence and an even closer attachment to the world's most cherished trademark. The power and prestige of Coca-Cola were exemplified in 1988, when three independent worldwide surveys conducted by Landor & Associates confirmed Coca-Cola as the best-known, most-admired trademark in the world. Perhaps a more human assessment of consumers' loyalty to Coca-Cola had come in 1985. The Company startled the American public by announcing a new taste for Coke, the first change in the secret formula since Coca-Cola was created in 1886. The new taste was overwhelmingly preferred in taste tests, but all the testing and research could not measure the emotional attachment Americans had for the original formula. That original taste had become more than just a soft drink, and consumers' deep feelings, memories and loyalties to it came alive. The Company listened to its consumers and quickly responded by returning the original formula to the market as Coca-Cola classic®. The Company's global strategy during the 1980s continued to...
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...Coca Cola was one of the Leading brand during 1970’s, made to exit due to foreign policies. After re-entering a hiatus of 16 years, Coco Cola has reached to each and every corner of India. Being one of the largest beverage companies in India, Coca Cola is now available through length and breadth of India. An Introduction to Coca Cola India:- Coca cola is a well-known American beverage giant, which sells concentrated soft drink worldwide. The journey for Coca cola begins when Pharma Scientist John Pemberton first formulated Coco Cola recipe in 1886 in Columbus, Georgia. Later in 1889, Coca Cola formula and brand was sold to Asa Candler who then incorporated the company Coca Cola in 1892. Rest is a history as the world knows. Coca Cola is now currently offers more than 500 products over 200 countries. Coca Cola has first opened its bottling plant in New Delhi in 1950 and existed in the market till 1977. India was not the easiest place to conquer for Coca Cola during 1970’s. Domestic brands such as Limca, Thums up were dominating brands in India at that time. By the time Coca Cola exited Indian Market in 1977, it was one of the leading soft drink brand. In 1977, when Morarji desai led Janata Party came into power, new foreign trade act called Foreign Exchange Regulation Act (FERA) was implemented. Under this regulation act, foreign companies were made to dilute its equity stake to its Indian counterparts if they wish to remain in the country. However has refused to...
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...COCA-COLA SETTLES RACIAL BIAS CASE http://www.nytimes.com/2000/11/17/business/coca-cola-settles-racial-bias-case.html?pagewanted=all&src=pm By GREG WINTER Published: November 17, 2000 In the largest settlement ever in a racial discrimination case, the Coca-Cola Company agreed yesterday to pay more than $156 million to resolve a federal lawsuit brought by black employees. The settlement also mandates that the company make sweeping changes, costing an additional $36 million, and grants broad monitoring powers to a panel of outsiders -- an unusual concession in employment discrimination cases. The lawsuit, filed in April 1999, accused Coke of erecting a corporate hierarchy in which black employees were clustered at the bottom of the pay scale, averaging $26,000 a year less than white workers. As redress, the settlement provides as many as 2,000 current and former black salaried employees with an average of $40,000 in cash, while the four plaintiffs whose names are on the lawsuit will receive up to $300,000 apiece. ''There's going to be fundamental change at the Coca-Cola Company,'' said Kimberly Gray Orton, a plaintiff who worked for Coca-Cola for 13 years and who says that she made less than the white workers she supervised. ''A lot like a rock in a pond, there are going to be ripples.'' Perhaps more surprising than its size, the settlement gives an outside panel, appointed by Coke and the plaintiffs' lawyers, limited authority to revise company personnel policy, a...
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...Introduction 3 Coca cola’s Global coverage. 3 History 4 Revenues 4 Products and Brands 6 Mission, Vision and Values 8 Organizations and Organizational Effectiveness 10 Stakeholders, Managers, and Ethics 12 Organizational Design 14 Designing Organizational Structure: Authority & Control 15 Designing Organizational Structure: Specialization & Coordination 17 Managing in a Changing Global Environment 18 Organizational Design & Strategy 20 Creating & Managing Organizational Culture 21 Organizational Technology 21 Organizational Transformations 22 Decision Making 23 Managing Conflicts, Power and Politics 24 ------------------------------------------------- Introduction The Coca-Cola Company is a beverage company, manufacturer, distributor, and marketer of non-alcoholic beverage concentrates and syrups. The company is best known for its flagship product Coca-Cola, invented by pharmacist John Stith Pemberton in 1886. The Coca-Cola formula and brand was bought in 1889 by Asa Candler who incorporated The Coca-Cola Company in 1892. Besides its namesake Coca-Cola beverage, Coca-Cola currently offers more than 400 brands in over 200 countries or territories and serves 1.6 billion servings each day. The company operates a franchised distribution system dating from 1889 where The Coca-Cola Company only produces syrup concentrate which is then sold to various bottlers throughout the world who hold an exclusive territory. The Coca-Cola Company is...
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...company, and the facts and issues of the case. According to Ferrell, the Coca-Cola Company is the world’s largest beverage company, and markets four of the world’s top five leading soft drinks. The company operates the largest distribution system in the world, which enables it to serve customers and businesses in more than two hundred countries. The Coca-Cola Company estimates that about 85 percent of its sales come from outside the United States (Ferrell). Former CEO Roberto Goizueta once said “Coca-Cola used to be an American company with a large international business. Now we are a large international company with a sizable American business” (Ferrell). According to Ferrell, Coca-Cola is the most-recognized trademark and brand name in the world today with a trademark value estimated to be about $25 billion. Coca-Cola’s vision for sustainable growth is fostered by being a great place to work where people are inspired to be the best they can be, by bringing the world a portfolio of beverage brands that anticipate and satisfy peoples’ desires and needs, by being a responsible global citizen that makes a difference, and maximizing return to share owners while being mindful of their overall responsibilities (Ferrell). While Coca-Cola’s vision statement may sound ethical, they have had several unethical issues come about in the past decade. According to Ferrell, in the early 2000’s Coca-Cola was involved in racial discrimination, misrepresenting market tests and manipulating...
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...This report is based upon the information from the Harvard business case: “Cola Wars Continue: Coke and Pepsi in the Twenty-First Century”. Both Coca Cola Company and PepsiCo are the largest players in the Carbonated Soft Drinks (CSD) industry. The purpose of this report is to gain insight into the possible strategies that can be applied, in order to expand the overall throat share in the future. History revealed that a highly competitive strategy that was utilized in the past by both companies resulted in a ‘Nash Equilibrium’. Because of this, the report is described from the perspective of both Coca-Cola and Pepsi. The scope of this report covers not only on the increase of overall market share, but also finding new opportunities in unrevealed markets. The analysis is also based upon the eight key concept model. In addition the PEST-analysis and the five forces model of Porter is also utilized to gain insight into the ‘macro-environment’ and ‘meso-environment’ 1. Analysis The eight key concepts analysis is applied to identify the key issues with regard to both Coca-Cola and Pepsi. The outcome of the analysis is utilized to establish the new strategy for both companies. The key issues for each concept are described in this paragraph. Direction The mission and vision of the two companies, described in the case, differ on one major issue. The Coca-Cola Company direction limits its market to a product portfolio of beverage brands, whereas PepsiCo does not only focus...
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...Organization History Coca-Cola was founded off of curiosity by an Atlanta pharmacist named Dr. John S. Pemberton in 1886. He created flavored syrup in which he took to his neighborhood pharmacy, where it was mixed with carbonated water and deemed “excellent” by those who sampled it (The Coca-Cola Company 2015). The distinctive tasting soft drink that was originally created was made for soda fountains. Dr. Pemberton’s partner and bookkeeper, Frank M. Robinson, is credited with naming the beverage “CocaCola” as well as designing the trademarked, distinct script, still used today (The Coca-Cola Company 2015). Coca-Cola’s roadmap starts with their mission, which declares their purpose as a company and serves as the standard against which they weigh out their actions and decisions. Coca-Cola’s mission is to: * To refresh the world * To inspire moments of optimism and happiness * To create value and make a difference Organization Strengths and weaknesses The Coca-Cola System The first strength Coca-Cola has is that they are a global business that works on a local scale. Because Coca-Cola does business in every community they have created global reach with local focus. The Coca-Cola system has created over 250 bottling partners worldwide. Coca-Cola manufactures and sells concentrates, beverage bases and syrups to bottling operations, owns the brands and is responsible for consumer brand marketing initiatives. Their bottling partners manufacture, package, merchandise...
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