BUSINESS

STRATEGIES OF

THE COCA COLA CO.

PREPARED BY:

History
1886 - Now

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1886
Inventor : John Pemberton (1814 1888). Atlanta pharmacist. : Jacobs' Pharmacy.
fragrant, caramel-colored liquid.

Place

First Production : Stirred up a Sales Volume : 9 Glasses / day. Successor : Asa G. Candler Successful years : 1888 1891.

Today
CEO Achievement Headquarters Company Assoc. Bottling Partners Operation Groups Countries Sales Volume Total Customers Total Consumption Products Status : MUHTAR KENT.

: Responsible CEO Of

The Year (03/11/10).

: Atlanta, Georgia. : 92,400 associates. : 300. : 6. : 200. : 54 billion / day (approx.). : 20 million. : 54 billion / day. : 500 nonalcoholic beverage. : Leading Brand.

Mission
To refresh the world... To inspire moments of optimism and happiness... To create value and make a difference.
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Vision
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People Portfolio

: Be a great place to work to be the best. : Serve as a quality beverage brands that anticipate and satisfy people's desires & needs. Partners : Nurture a winning network of customers & suppliers, together to create a mutual, enduring value. Planet : Difference by helping & supporting sustainable communities. Profit : Maximize long-term return to shareowners. Productivity: Highly effective, lean and fast-moving
Organization.

Values
Values serves as a compass for actions and describing the way how they behave in the world.
Leadership Collaboration Integrity Accountability Passion Diversity Quality : The courage to shape a better future : Leverage collective genius : Be real : If it is to be, it's up to me : Committed in heart and mind : As inclusive as our brands : What we do, we do well

Strategies

Action to gain sales and market share Action to respond to changing market conditions or other external factors Action to enter new geographic or product markets or exit existing ones Actions to capture emerging market opportunities and defend against external threats to the companys business prospects Actions to strengthen market standing and competitiveness by acquiring o9r merging with other companies Action to strengthen competitiveness via strategic alliances and collaborative partnership

Strategies

Actions and approaches used in managing R&D, production, sales and marketing, finance, and other key activities Actions to strengthen competitive capabilities and correct competitive weaknesses Actions to diversify the companys revenues and earning by entering new

Action to gain sales and market share

Production Highly secret and controlled method applied to create: Concentrates Syrups Fountain syrups Sparkling beverages Still beverages Company Trademark Beverages Trademark Coca-Cola Beverages

Action to gain sales and market share

Distribution
Most of products are manufactured and sold by bottling partners. TCC typically sell concentrates and syrups to bottling partners, who convert them into finished packaged products.
Which they sell to distributors and other customers outside or inside US.

Action to gain sales and market share

Significant Equity Method Investments and Company Bottling Operations
TCC maintains business relationships with three types of bottlers:

bottlers in which the Company has no ownership interest; bottlers in which the Company has invested and has a non-controlling ownership interest; and bottlers in which the Company has invested and has a controlling ownership interest.

Action to respond to changing market conditions or other external factors

Seasonality
Competition

Raw Materials
Patents, Copyrights, Trade Secrets and Trademarks Govt. Regulation

Action to enter new geographic or product markets or exit existing ones

Bottlers Agreements and Distribution Agreements
Most of our products are manufactured and sold by bottling partners. TCC typically sell concentrates and syrups to bottling partners, who convert them into finished packaged products which they sell to distributors and other customers. However, TCC typically reserve the right:
(1) To prepare and package such beverages in such containers in the territory for sale outside the territory, (2) To prepare, package, distribute and sell such beverages in the territory in any other manner or form. Territorial restrictions on bottlers vary in some cases in accordance with local law.

Action to enter new geographic or product markets or exit existing ones

Within the United States

The bottlers insolvency, dissolution, receivership or the like; Any disposition by the bottler or any of its subsidiaries of any voting securities of any bottler subsidiary without the consent of the Company;

Any material breach of any obligation of the bottler under the 1987 Contract; or
Except in the case of certain bottlers, if a person or affiliated group acquires or obtains any right to acquire beneficial ownership of more than 10 percent of any class or series of voting securities of the bottler without authorization by the Company.

Action to enter new geographic or product markets or exit existing ones

Outside of United States

The Bottlers Agreements between TCC and authorized bottlers outside the United States generally are: Stated duration, Subject in some cases to possible extensions or renewals of the term of the contract.

Actions to capture emerging market opportunities and defend against external threats to the companys business prospects

Risks Obesity and other health concerns Water scarcity and poor quality Changes nonalcoholic beverages business Global credit crisis Increased competition If unable to expand their operations in developing and emerging markets. Fluctuations in foreign currency If interest rates increase

Actions to capture emerging market opportunities and defend against external threats to the companys business prospects

TCC rely on bottling partners

If; bottling partners financial condition deteriorates

Increases in income tax rates Increase in the cost Increased or new indirect taxes If unable to renew collective bargaining agreements

Disruption of supply or shortage of ingredients or packaging materials

Actions to capture emerging market opportunities and defend against external threats to the companys business prospects

Unfavorable general economic conditions

Unfavorable economic and political conditions

Changes in commercial and market practices within the European Economic Area Litigation or legal proceedings Adverse weather conditions

If unable to maintain brand image and corporate reputation,

Actions to capture emerging market opportunities and defend against external threats to the companys business prospects

If unable to integrate & manage Company-owned or controlled bottling operations. Climate change may negatively affect business. Global or regional catastrophic events could impact TCC operations and financial results. Changes in laws and regulations relating to beverage Significant additional labeling or warning requirements If unable to achieve long-term goals. If unable to protect information systems

Actions to strengthen market standing &competitiveness by acquiring or merging with other companies

Operating structure: Collaborated agencies

The North American Group The Latin America Group

The Greater Europe Group

The Africa and Middle East Group The Asia Pacific Group The Minute Maid Company

Actions to strengthen market standing &competitiveness by acquiring or merging with other companies
Collaborated agencies
The North American Group The Latin America Group The Greater Europe Group The Africa and Middle East Group The Asia Pacific Group The Minute Maid Company

Action to strengthen competitiveness via strategic alliances and collaborative partnership

Significant investees in non-controlling ownership interests

Coca-Cola Enterprises Inc. (CCE) Coca-Cola Hellenic Bottling Company S.A. (Coca-Cola Hellenic) Coca-Cola FEMSA, S.A.B. de C.V. (Coca-Cola FEMSA) Coca-Cola Amatil Limited (Coca-Cola Amatil)

Action to strengthen competitiveness via strategic alliances and collaborative partnership

Market Share
CCE 30%

Coca-Cola Hellenic 20% Coca-Cola FEMSA 26%

Coca-Cola Amatil 24%

Actions and approaches used in managing R&D, production, sales and marketing, finance, and other key activities

Develop Markets: grow market share and brand value

Developing Markets: Drive demand and new consumer occasions

Emerging Markets: Create opportunity and infrastructure Trademark Coca cola global growth

Delivering consumer innovation

Creating valuable connections with consumers

Actions to strengthen competitive capabilities and correct competitive weaknesses

Core capabilities:

Consumer Marketing Commercial Leadership Franchise Leadership

Weaknesses: Obesity and Inactive Lifestyles Water Quality & Quantity Evolving Consumer Preferences Increased competition and capabilities in marketplace Weather changes

Actions to diversify the companys revenues and earning by entering new

Delivering consumer driven innovation: Look across our entire value chain.
Creating valuable connection with customer: Focusing on the areas where they live, eat, work, play, exercise and relax.

The 2020 vision: Urbanization to be a major driver of our continued growth through 2020.

Actions to diversify the companys revenues and earning by entering new

INCREMENTAL GDP GROWTH 2020 ( in billion)

350

300
250 200 150 100 50 0

New york Tokyo

Mexico City
London Shanghai Sao Paulo Mumbai Jakarta Istambul Moscow Cairo

 External Consideration Factors to consider for companys future direction

Internal Consideration

External Consideration
Is the outlook for the Company promising if the company sticks with its present product /market /customer /technology focus and strategic direction?

YES

External Consideration
Are changes under way in the competitive landscape acting to enhance or weaken the companys prospects?

NO

External Consideration
What, if any new customer group and / or geographic markets should the company get in position to serve?

No doubt at all Ready to serve

External Consideration
Are there any emerging market opportunities the company ought to pursue? Driving Marketing Productivity Improvements throughout the marketing function, Creating sponsorship activation toolkits Creating global advertising and marketing tools. Coca-Cola Design Machine enables associates across all Access and customize Company-approved print advertising, Product photography and packaging designs in multiple format Decreasing the need for external agency support and expediting rights and approvals for these marketing assets.

External Consideration
Should we plan to abandon any of the markets, market segments, or customer groups we are currently serving? CCE has achieved the position in consumers mind

Our activation of our 2010 FIFA World Cup sponsorship started in 2009 when we kicked off a 225-day World Cup Trophy Tour, touching 86 countries.
Our sponsorship of the Vancouver 2010 Olympic Winter Games included a 12-month brand activation program in Canada, which started in February 2009.

Internal Consideration
What are our ambitions for the company-what industry standing do we want the company to have?
COCA-COLA FREESTYLE: MAKING CONSUMERS BEVERAGE INNOVATORS

By giving consumers choice and variety and the opportunity to make more than 100 different branded beverages at the touch of a button,
Coca-Cola Freestyle provides a fun, interactive experience that connects our brands with consumers.

Internal Consideration
Will our present business generate sufficient growth and profitability to please shareholders?

Basis of Presentation Principles of Consolidation Recoverability of Noncurrent Assets Revenue Recognition Income Taxes Contingencies

Internal Consideration
What resources strength does the company have that will aid its ability to add new products / services and / or get into new businesses?

People

Portfolio
Partners Planet Profit Productivity

Internal Consideration
Is the company stretching its resources too thin by trying to complete in too many product categories or market arenas, some of which are unprofitable?

Not at all CCE is emphasizing more brands Famous in branding and leading conditions Successful in every single brands

Internal Consideration
IS the companys technological focus too broad or too narrow?

Too Broad
Throughout our 124-year history, we have witnessed the positive correlation between wealth and the increase in consumption of NARTD beverages. From now to 2020, more than 1 billion people will join the middle class, and the per capita wealth for individuals will increase by nearly 30 percent. We plan to capture our share of this growth in every country where we operate and are focused on the countries where wealth will grow the most in the next 10 years.

Coca-Cola Financial and Strategic Objectives Financial Objectives Revenue growth of 4 percent to 6 percent For 2011, earnings per share will likely exceed long-term objectives as a result of share repurchase activity. Strategic Objectives To cement its position as the number one global soft drink producer Accelerate carbonated soft-drinks growth led by coca cola. Coca Cola leads with their strengths. Carbonated soft drinks remain their most profitable business and Coca Cola is the most popular brand in the world. This strategy paves the way for growth. Selectively broaden our family of beverage brands to drive profitable growth. Enormous opportunity exists in categories such as juice and juice drinks, bottled water, teas, energy drinks, coffee and more.

Return on invested capital improvement of 20 basis points or more per year.

Info taken from Coca-Cola Companys website www.coca-cola.com

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Coca-Cola Financial and Strategic Objectives (Continued) Financial Objectives Revenue growth of 4 percent to 6 percent For 2011, earnings per share will likely exceed long-term objectives as a result of share repurchase activity. Strategic Objectives To cement its position as the number one global soft drink producer Accelerate carbonated soft-drinks growth led by coca cola. Coca Cola leads with their strengths. Carbonated soft drinks remain their most profitable business and Coca Cola is the most popular brand in the world. This strategy paves the way for growth. Selectively broaden our family of beverage brands to drive profitable growth. Enormous opportunity exists in categories such as juice and juice drinks, bottled water, teas, energy drinks, coffee and more.

Return on invested capital improvement of 20 basis points or more per year.

Info taken from Coca-Cola Companys website www.coca-cola.com

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Info taken from Coca-Cola Companys website www.coca-cola.com

Twist The Cap To Refreshment

Info taken from Coca-Cola Companys website www.coca-cola.com

Twist The Cap To Refreshment

Info taken from Coca-Cola Companys website www.coca-cola.com

Twist The Cap To Refreshment

Info taken from Coca-Cola Companys website www.coca-cola.com

Twist The Cap To Refreshment