Cola-Cola

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Table of Contents
Introduction ........................................ 2
Mega Environments ............................ 2
1-Technological Element ................... 2
2-Political-Legal element .................. 3
Task Environment ............................... 4
1-Competitor .................................... 4
2-Supplier ........................................ 4
Coca-Cola issue ................................... 5
Conclusion .......................................... 6
Reference ............................................ 7

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Coca-Cola
Introduction
Coca-Cola is one of the most successful beverage companies in the world. The present
chairman of board and CEO is Mr. Muhtar Kent. Coca-Cola first was invented by Dr.
John Pemberton, a pharmacist from Atlanta, US in 1886. First Coca-Cola Company was
made from 1888-1891 by Asa Griggs who used advertising factors that led to the success
of Coca-Cola. Coca-Cola company mission is to create and make difference in the world
through its beverage and to be an ecofriendly company. Its vision is to create to the world
a quality beverage brands that satisfy people's desires and need, and to a highly
productivity effective, and a fast moving organization. Coca Cola company uses
innovation to gain more customers and consumers through many kinds of advertisements
through Television, radio, and social networking and also it has a large variety of
beverage categories that suite all customers and consumers to gain growth in its different
markets. Coca-Cola Company sells beverages to about 1.8 billion consumers per day,
Coca-Cola has more than 700,000 employees, and coca cola produces are sold in more
than 200 countries around the world. (http://www.coca-colacompany.com, 2013)

Mega Environments
1-Technological Element
In production process Coca-Cola launched Green Bottles plant-bottle packaging in 2009,
which was completely recyclable container that is made of plant materials, and sugar cane
extracts. (http://www.coca-cola.co.uk, 2013)
The technology helped coca cola to invent new products that meet consumer needs. Coca
cola is now making a lot of products such as energy drinks, mineral water and natural juices
and also Coca Cola Company introduced main product coca cola with different flavors
such as coke zero, coke vanilla with made coca cola Company satisfy each consumer in the
world.
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And also coca cola made new products Technology also helped coca cola in marketing
mainly on advertising especially in the presence of technology coca cola uses online
advertising and social network advertising, by this way coca cola can market their products to
all the consumers around the world.
Also coca cola used technology in sales section by inventing Coca-Cola vending machines.
Coca-Cola is working on developing Intelligent Vending Machines, which is connected to
the internet and will report sales, inventory and service issues in real-time that will reduce
operating costs a lot. Also they are increasing number of vending machines that accepts credit
cards payments for customers who dont carry cash. And the latest technology is the mobile
wallets which will be in relationship with Google Wallet, where the customer will just pass
his smartphone in front of the machine and the payment will be done through Google
Wallet application. (http://www.vendingmarketwatch.com, 2013)
2-Political-Legal element
As Coca-Cola is almost selling their products in all the countries in the world, so the
company is facing a lot of political and legal challenges depending on the laws and
regulations in each country they are selling their products. The company manufacturing
process and financial issues may be influenced directly with politics in case of change of laws
and regulations. For example the laws of taxation have direct impact on the financial
performance of the company, as it will directly affect the production cost of their products
which will also affect the selling price and also the net profit. Also there are other policies
which may directly affect the manufacturing and financial performance such as
environmental policies, employment laws, and food industry laws. The differentiation of
these laws and regulations is making huge challenge for the company to adjust their strategies
according to these political issues which may affect the companys profit, manufacturing
process or even their recipes.
Also Coca-Cola is facing a lot of legal issues like what happened in china in 2011, when a
child died after drinking a minute maid milk beverage. In that time Coca-Cola had to remove
the entire product from shelves in that city, and started to analyze samples from that batch to
prove that the batch is manufactured according to the Chinese standard.
(http://www.wantchinatimes.com, 2013)
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Task Environment
1-Competitor
As far as we all know, the biggest competitor of Coca Cola is Pepsi .Coca Cola still maintains
its advantage in the market of beverage.
First of all, The Coca-Cola Company really benefits from grasp of market opportunities.
Coca-Cola can grab more market share than PepsiCo. Perhaps in some ways this is not fault
of PepsiCo given that Pepsi-Cola was created in 13 years later.
(http://www.businessinsider.com/coca-cola-vs-pepsi-timeline-2013-1?op=1, 2013).
But the truth is cruel, suggesting that Pepsi has to as a chaser to compete with the Coca-Cola
Company. It is difficult for PepsiCo. Because, People may have a preconceived notion for
Coca Cola .As a result, the brand of PepsiCo may not as strong as Coca Cola.
(www.businessinsider.com, 2013)
Apart from that, the main focus of coca colas CEO Muhtar Kent is to sell soft drinks
globally and also to rebuild the coke sales in U.S market, that let coca cola to win the
consistent strategy of cola war.( www.investmentu.com, 2013)
The effect of this strategy can be shown from data on 2009.For example, Coke brands
commanded 41.9% of the total market compared to PepsiCos 29.9%. The same goes for the
companies flagship brands. (http://www.investmentu.com/2012/February/are-the-coke-vs-
pepsi-cola-wars-over.html, 2013)

2-Supplier
The inputs of Coca Cola's products were primarily sucrose or fructose and bottling
.Commodity component supplier's bargaining power is low, because the raw materials of
Coca-Cola Company can easily be found around the world. The basic needs of the material,
concentrates of the raw material and other commodities of color, aroma, caffeine or additives,
sugar, etc., due to the number of suppliers of these products are generally high and provide
the same product, they have a lower bargaining power. However, with more and more sugar
and packaging material prices, a direct impact on the profitability of the products of the Coca-
Cola Company. Coca-Cola didnt use to do any bottling by itself, it was through independent
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bottling plants, and these plants were limited, this gave the bottling plants high bargaining
power. Now Coca-Cola Enterprise established its own bottling plants, this made it the world's
largest bottler. These are basically independent companies, but Coca-Cola holds a majority of
shares, rather than control over. These bottling plants made Coca-Cola integrated enterprise;
it can better control distribution and production to market faster. In addition, it is expected to
save at least $ 3 million per year, in phases over the next four years. The Coca-Cola
Company is trying to minimize the cost by making factories for bottling itself, in order to
make all levels of each society to enjoy Coca-Cola. (http://www.coca-colacompany.com,
2013)
Coca-Cola issue
One of the biggest issues that Coca-Cola is facing in the global market is the Kerala plant
case. The story goes back to the year 2000 when Hindustan Coca-Cola Beverages Private
Limited (The Indian branch of Coca-Cola) established a plant in Plachimada, in Kerala state
and got the license for operation. But after 2 years the local residents started complaining
because the plant is consuming huge amounts of underground water and their waste water is
polluting the underground water reserve, which caused some health problems for the
residents. In 2003 the local village council refused to renew the license for the company so
they have moved to the court, but the judge and the government defended the village council
decision and the government ordered Coca-Cola to stop consuming underground water, and
these decisions lead the company to suspend production in March 2004.
The action didnt stop at this point, as in January 2006 the village council accepted to renew
the license for three months under certain conditions. But in August 2006 the Government of
Kerala and the State Food Authority banned manufacturing and selling Coca-Cola products in
the State saying that it was unsafe.
Now Coca-Cola is facing another problem because in February 2011 the state of Kerala has
passed a new law that will allow people to seek compensation from Coca-Cola, which may
lead to high rate of loss for the company. (http://www.righttowater.info, 2013)

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Conclusion
As a conclusion Coca-Cola is considered a symbol of soft drinks and beverages around the
world, and they are working all the time on making new products and improving their
existing products to meet their customer needs and taste in order to have higher market share
and make more profit. With the help of technology Coca-Cola is achieving these goals by
trying to save the environment by developing new technologies in bottling (Green Bottling).
They are also developing smart vending machines to make the customers more comfortable
and increase their sales, and for that they are using the help of technology to improve their
advertisement over social networks and internet. Also in order to make more profit Coca-
Cola had to go global all over the world so they are taking care of all political and legal issues
in these countries so they can give products suitable for each country with the least cost to
make the profit. Because of this globalization Coca-Cola is having a lot of competitors and
they are making advantage of this competition especially Pepsi so they are catching market
opportunities and that is their consistent strategy to win the Cola war and Coca-Cola have
already won this war. As part of their strategy they are minimizing the power of their
suppliers by bottling for themselves and they are having great bargaining power even in their
raw material. As mentioning raw material, Coca-Cola is having a famous issue in India plant
which is related to raw water that issue caused Coca-Cola to close this plant, and that is one
of the problems of globalization.







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Reference

BBC News India Coca-Cola compensation law is passed in Kerala. 2013. BBC News India
Coca-Cola compensation law is passed in Kerala. [ONLINE] Available at:
http://www.bbc.co.uk/news/world-south-asia-12567542.

Case against Coca-Cola Kerala State India Right to Water and Sanitation. 2013. Case
against Coca-Cola Kerala State India Right to Water and Sanitation. [ONLINE] Available
at: http://www.righttowater.info/ways-to-influence/legal-approaches/case-against-coca-
cola-kerala-state-india/.

Changchun boy dies after drinking Coca-Cola beverage Society News
WantChinaTimes.com. 2013. Changchun boy dies after drinking Coca-Cola beverage
Society News WantChinaTimes.com. [ONLINE] Available at:
http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20111201000119&cid=1103.


Coca-Cola History Coca-Cola Heritage Timeline. 2013. Coca-Cola History Coca-Cola
Heritage Timeline. [ONLINE] Available at: http://heritage.coca-cola.com/.

CocaCola Bottles History Green Glass & Old CocaCola Bottles - Coca-Cola GB. 2013.
CocaCola Bottles History Green Glass & Old CocaCola Bottles - Coca-Cola GB.
[ONLINE] Available at: http://www.coca-cola.co.uk/125/coca-cola-bottles-history.html.
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Coca-Cola vs. Pepsi Timeline Business Insider. 2013. Coca-Cola vs. Pepsi Timeline -
Business Insider. [ONLINE] Available at: http://www.businessinsider.com/coca-cola-vs-
pepsi-timeline-2013-1?op=1.

Coke vs. Pepsi Are the Cola Wars Finally Over. 2013. Coke vs. Pepsi Are the Cola Wars
Finally Over. [ONLINE] Available at: http://www.investmentu.com/2012/February/are-
the-coke-vs-pepsi-cola-wars-over.html.

Digital Technology Drives Coca-Cola Refreshments Vending Innovation. 2013. Digital
Technology Drives Coca-Cola Refreshments Vending Innovation. [ONLINE] Available
at: http://www.vendingmarketwatch.com/article/10673657/digital-technology-drives-coca-
cola-refreshments-vending-innovation.

The Coca Cola Company. The coca cola company fact sheet. [pdf] [ONLINE] Available
at: http://www.coca-colacompany.com/our-company/company-fact-sheet.

The Coca Cola Company. Report [pdf] [ONLINE] Available at: http://www.coca-
colacompany.com/our-company/company-fact-sheet.


Mission, Vision and Values: The Coca-Cola Company. 2013. Mission, Vision & Values:
The Coca- Cola Company. [ONLINE] Available at: http://www.coca-
colacompany.com/our-company/mission-vision-values.