Coca-Cola

Sydne Collier
Amanda Haines
Jacob Johnson
Eric Launer
Katie Shaw
Zachary Slagle
Mark Weyandt
 Brief History of Coca-Cola Company

 Business Operation

 Industry Analysis

 Company Capability

 Environmental Analysis

 Competitors

 Performance Indicators

Introduction
 John Pemberton, created the syrup in 1886

 Asa Candler took control of the Company in

1891 after the death of Pemberton

 1916, the unique contour bottle was

introduced.

 125 years later, Coca-Cola Company has

marketed over 400 brands and over 2600
different products in over 200 countries
worldwide.

History
• Phase 1 – Initiation

• Phase 2 – Formalization

• Phase 3 – Expansion

• Phase 4 – Coordination

• Phase 5 - Participation

Organizational Life Cycle

 Birth of Coca-Cola

 Shareholders

 Growth

1886-1905
 Formulation

 Introduced Bottle

 New Places

 Stock Prices

1905-1923
 Robert Woodruff

 WWII

 Great Depression

1923-1980
 Diet Coke

 Sports

 120 countries

 1 billion servings per day

1980-Current
Coca-Cola Organizational Chart
 Ease of Entry

 Growth within Industry

 Intensity of Competition

Industry Analysis
 Substitute Products

 Bargaining Power

 Technology

 Innovation

Industry Analysis (Cont.)

 Social responsibility
◦ Veterans Day celebration

 Organizational structure:
decentralized

 Ability to attract and retain people

 Meeting competition

Managerial Factors
 Customer loyalty and satisfaction
 Market share
 Investment in research and
development
 Supplier strength

Competitive Factors
 Access to capital

 Profitability

 Financial stability

Financial Factors
 Level of technology used

 Production effectiveness
◦ Invest $30 billion in new equipment

 Newness of equipment and technology

◦ $100 contract with Dell

 Strength of patents

Technical Factors
 Economic Factors
◦ Recession

 Political Factors
◦ Childhood Obesity and New York

 Social Factors
◦ 25 and under

Environmental Scan
 Technological Factors
◦ PlantBottle

 Competitive Factors
◦ Pepsi

 Geographical Factors
◦ 200+ countries

Environmental Scan
 Top selling soft
drink company in
the world

 Main competitors
◦ PepsiCo
Company(Pepsi)
◦ The Dr. Pepper
Snapple Group(Dr.
Pepper)

Coca Cola’s Competitors

 Total Net Income Total
Revenue Employees

Coke 47.6 Billion 8.8 Billion 146,200

Pepsi 65.70 Billion 5.92 Billion 297,000

Dr. Pepper 5.97 Billion 625 Million 19,000

Financial Comparisons
 Regular Cola
◦ Coke Leader
 Diet Cola
◦ Diet Coke Leader
 Lemon Lime
◦ Sprite Non caffeinated leader, Mountain Dew caffeinated
Leader
 Orange Flavored
◦ Fanta Leader
 Root Beer
- A&W Leader

What they Compete On

 Coke is obviously the most successful soft
drink out there

 Less people drink Soda

 Have to be innovative to continue to be

leader

Future Success
 Industry Leaders
◦ Coca Cola: 43%
◦ Pepsi Co: 31 %
◦ Cadbury Scweeps: 18 %
◦ Other: 8%

Market Share
 Increasing trend in revenue

 2011 fiscal year first quarter

◦ Increase in net income by 18%

 Annual divided yield

◦ High compared to other companies

Sales Growth
Strengths Weaknesses

 Leading brands  Weak Brands

 Customer ◦ Odwalla
loyalty/relationships  Poor access to
 Management distribution
 Production Quality  Management
◦ Bottling process  Low customer
retention

SWOT Analysis
Opportunities Threats

 Changing customer  Closing of geographic

tastes markets
 Technological  Technological
advances advances
 Tax increases
 Change in population
 Change in population
age age
 New distribution  New distribution
channels channels

SWOT Analysis
  Key Success Factors
◦ Quality/product performance
◦ Reputation/image
◦ Customer service capability
◦ Technological skills
◦ Manufacturing capability
◦ Marketing distribution
◦ Financial strength
◦ Relative cost position

Competitive Strength Assessment

 Employees offering to sell trade secrets

 International problems related to unions

 Trouble with distributers

 Inflated earnings

 Racial discrimination

 Contamination scares

Strategic Issues
 Corporate Giving
◦ Water stewardship
◦ Healthy and active lifestyles
◦ Community recycling
◦ Education

Improving the Company