COCA-COLA COMPANY INTERNATIONAL BUSINESS MANAGEMENT SUBMITTED TO: PROF. EMIL HEILNEK SUBMITTED BY GARIMA ARORA (13) RADHIKA KOHLI (34) SHIVANI AGGARWAL (45) SMITA SWARUP KAPUR (51) TARUNA KASHYAP (56) “The Coca-Cola Company exists to benefit and refresh everyone it touches.”
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COCA-COLA COMPANY
INTERNATIONAL BUSINESS
MANAGEMENT
SUBMITTED TO:
PROF. EMIL HEILNEK
SUBMITTED BYGARIMA ARORA (13)RADHIKA KOHLI (34)
SHIVANI AGGARWAL (45)SMITA SWARUP KAPUR (51)
TARUNA KASHYAP (56)
“The Coca-Cola Company exists to
benefit and refresh everyone it touches.”
COCA-COLA COMPANY
ACKNOWLEDGEMENT
This report has been prepared with the support and guidance provided by Dr.
Emil Helienek, International Business faculty, Nottingham Trent University.
We gratefully acknowledge the co-operation and inputs we have received
from our faculty without whose guidance and help we would have been
unable to complete this report.
COCA-COLA COMPANY
TABLE OF CONTENTS
1. INTRODUCTION
2. COMPANY HISTORY
3. SCOPE OF OPERATIONS
FINANCIALS
OPERATING STRUCTURE
PRODUCT AREA
TYPE OF MARKET/ INDUSTRY
4. COCA COLA- GLOBAL COMPANY
5. INDUSTRY ANALYSIS- PORTERS FIVE FORCE MODEL
6. CULTURE AT COCA-COLA COMPANY
CORPORATE CULTURE
ETHICS
VALUE SYSTEMS
7. SWOT ANALYSIS
8. BIBLIOGRAPHY
COCA-COLA COMPANY
COCA-COLA’S MISSION
Mission Statement: “We exist to create value for our share
owners on a long-term basis by building a business that enhances
The Coca-Cola Company’s trademarks. This is also our ultimate
commitment. As the world’s largest beverage company, we refresh
the world. We do this by developing superior soft drinks, both
carbonated and non-carbonated, and profitable non-alcoholic
beverage systems that create value for our Company, our bottling
partners and our customers.” (www.coca-cola.com)
Company History:
Dr John Syth Pemberton in Atlanta, United States of America
developed coca cola in 1886. In its very first year of existence - on
an average - nine glasses of coca-cola were sold daily. The
ownership of coca-cola was passed on to Asa Candler in 1888,
after Dr Pemberton sold of his share in coca-cola. The first syrup
manufacturing plant of coca-cola was set up in Dallas Texas in
1894. 1894 also witnessed the appointment of Coca-cola’s first
ever bottler – Joesph Biednham. Coca cola set foot in the foreign
Mission + Commitment = Focus
Focus + Action = Results
COCA-COLA COMPANY
markets in 1906 by setting up a bottling plant in Canada. The
ownership of coca cola changed hands once again in September
1919. Ernst Woodruff purchased coca cola along with an investor
group. During the 1960’s and 1970’s the coca cola company
diversified its business ranging from food, wine and soft drinks to
film and water treatment. Coca cola took one of the most drastic
steps in 1985 by changing the concentrate formula. Coke lovers
rejected the new coca cola that was introduced. This gave
competitors like PepsiCo a chance to break into the coke market.
The severe dislike of the new coke by the public forced coca cola
to quickly relaunch the old coke in the market. Presently coca cola
produces nearly 230 different brands in over 200 countries. Today
the daily average consumption of coke is more than one billion
drinks per day.
Scope Of Operations:
Since it’s beginning in the spring of 1886, Coca-Cola has grown to
become the most recognized trademark in history. Operating out of
more than 200 countries worldwide, Coca-Cola is the most popular
beverage on earth and is enjoyed over one billion times daily. The
Coca-Cola Company is the world’s leading manufacturer,
COCA-COLA COMPANY
marketer, and distributor of non-alcoholic beverage concentrates
and syrups, with world headquarters in Atlanta, Georgia. The
Company and its subsidiaries employ nearly 31,000 people around
the world. Syrups, concentrates and beverage bases for Coca-
Cola, the Company’s flagship brand, and over 230 other Company
soft-drink brands are manufactured and sold by The Coca-Cola
Company and its subsidiaries in nearly 200 countries around the
world. Seventy percent of coca cola’s revenue is generated from
outside North America. The Company takes pride in being a
worldwide business that is always local. Bottling plants are, with
some exceptions, locally owned and operated by independent
business people who are native to the nations in which they are
located. Bottlers provide the required capital for investments in
land, buildings, machinery, equipment, trucks, bottles and cases.
Most supplies are purchased from local sources, often creating
new supply industries and areas of employment within local
economies. The Company supplies the concentrates and
beverage bases used to make its products and provides
management assistance to help its bottlers ensure the profitable
growth of their businesses. Product manufacturing, quality control,
plant and equipment design, marketing and personnel training are
just a few of the areas in which the Company shares its expertise.
COCA-COLA COMPANY
COCA-COLA COMPANY
FINANCIALS:
THE COCA-COLA COMPANY AND SUBSIDIARIES
Operating Segments
(In millions)
2002 2001
Net
Operating
Revenues
Opera
ting
Incom
e*
Income before
income taxes
and cumulative
effect of
accounting
change*
Net
Opera
ting
Reve
nues
Operati
ng
Income
Income before
income taxes and
cumulative effect of
accounting change
North
America
$ 6,264 $
1,494
$ 1,515 $
5,729
$ 1,480 $ 1,472
Europe,
Eurasia &
Middle East 5,262 1,612 1,540 3,961 1,461 1,413
Asia 5,054 1,820 1,848 4,861 1,763 1,808
Latin
America
2,089 1,033 1,081 2,181 1,094 1,279
Africa 684 224 187 633 276 262
Corporate 211 (725) (672) 180 (722) (564)
Consolidate
d
$ 19,564
$
5,458* $ 5,499*
$
17,54
5 $ 5,352 $ 5,670
COCA-COLA COMPANY
As on December 31st 2002 coca cola owned assets worth $24501
million. The asset base of the company increased from $22417
million in 2001. The coca cola trademark is invaluable. The value
of the coca cola trademark was approximated at $3553
million in 2002. The net operating revenue of Coca Cola
Company and subsidiaries in 2002 increased to $19564 million
from $17545 million in 2001.
Operating Structure:
The Company’s operating management structure consists of five
geographic groups.
1) The North America Group comprises of the US and
Canada.
2) The Latin America Group includes the Company’s
operations across Central and South America, from Mexico
to the tip of Argentina.
3) The Europe and Eurasia Group stretches from Greenland
to Russia’s Far East, including some of the most established
markets in Western Europe and the rapidly growing nations
of East and Central Europe.
COCA-COLA COMPANY
4) The Africa and Middle East Group , the Company’s most
populated operating group, encompasses the Middle East
and the entire continent of Africa.
5) The Asia Pacific Group has operations from India through
the Pacific region including China, Japan and Australia.
(source – www.cocacola.com)
The North American group has the highest sales volume of coca
cola of 30%. Africa and Middle East group is the smallest market
of coca cola with the sales volume equaling 7%.
COCA-COLA COMPANY
Product Area:
The product area of coca cola ranges from non-alcoholic