swot ans MGMT303 by desirei


									The Coco-Cola Company mission is, “To refresh the world…, to inspire moments of optimism and happiness..., to create value and make a difference.” The Coco-Cola Company is one of the world’s leading manufacturer, distributor and marketer of nonalcoholic beverages in the world. The company owns more than 400 brands, including sports drinks, energy drinks, coffees, teas, juice drinks, waters, diet and light beverages. The company operates in more than 200 countries. Approximately 74% of its products are sold outside of the U.S. From the beginning the company quickly grew into a multinational, fortune five hundred company that has served over one billion people in the course of a day. Starting from Dr. John Stith Pemberton founding the Coca-Cola Company in 1886.

The first batch was mixed in a three legged brass kettle in his back yard and then sold for five cents a glass at the local Pharmacy. Joseph Biedenharm of Vicksburg, Mississippi installed bottling machinery and bottled the beverage for local distribution making the first bottled Coke in the summer of 1894. This contributed to the spread of the popularity of the product that was consumed in every state and territory of the United States in 1895. Asa G. Candler purchased Coca-Cola Corporation as a whole for the sum of $2,300. He also contributed to the unique contoured bottle shape that was developed. This has remained a distinct feature of this product and effectively separated it from its lesser competitors. A few years later in 1919 the Company was sold again. But however, by this time it was sold for a sum of $25 million. The buyer, banker Ernest Woodruff and a group of investors decided that this was a prime time to bring the company public. This can be marked as the point where Coke became a financially viable company, expansion were quick to follow with growing demands for Coke. The

1960's are the next dates of notice. This is when the Coca-Cola Corporation made one of their largest acquisitions. Minute Maid Company is producers of high quality fruit juices and complemented the Coke family of products. Today Minute Maid is the largest producer of concentrate orange juice in the world. The Sixties were also the time when the metal cans that were shipped to the troops in Korea were available on the shelves of your local grocery store; this was the birth of the can of soda. The company recorded revenues of $24,088 million during the fiscal year ended December 2006, an increase of 4.3% over 2005.

One of Coca-Cola's largest strengths is their strong advertising campaigns. In 1998, Coke had the most recognized trademark in the world. The catchy slogans that they roll out every few years consistently become a household commonality. When the average American hears the phrase “it's the real thing” they automatically think CocaCola. Also during the Christmas season Coke's clever ads with the polar bears were so witty, that it was hard to even identify it as a Coke commercial, in order for the viewer to recognize the product. Advertising alone doesn't make a company product. Production also plays a large part in Coca-Cola's strategy. Their product is produced by ten bottling subsidiaries that are totally controlled by Coke. All ten of these bottles are publicly traded independently of Coca-Cola. Coke also licenses local bottlers to produce their product. Coke utilizes this method in order to maintain their public image as local company in contrast with their global reality. Actually 70% of Coca-Cola's business comes from outside the United States. Due to the vastness of Coke's worldwide empire the consistency that they maintain it is a major strength. With one billion servings sold a day that's a lot of volume of soda per year to produce, distribute, and sell.

Coca-Cola's management structure is divided into five geographic groups plus the Minute Maid group. This diversity of the management structure allows each group to tightly control all of the functional areas.. Although Coca-Cola's decentralized management structure can be a strength, it can also be a weakness. The company currently does not set common corporate goals. Instead, each management region sets it own goals. Another slight problem that exists in the Coca-Cola Empire is the relationship that Coke has with their independent bottlers. The contract with the bottlers is under constant negotiations. Granted that Coke has a vested interest in the bottlers and the product that they produce Coca-Cola posts a very sizable net profit this year, nearly $3.5 billion. In light of this it seems strange that such a cash rich company should carry $2.2 million in long term debt. Coca cola also has reported on effects on tooth decay dating back from 1886. 1886 was the year that Coca Cola was first invented and marketed. It was very cheap and gave a great sugar rush to the working class; So as a result, a huge epidemic of tooth decay also swept the country. On top of that, it actually contained a small amount of the extract of coca leaves which meant that the sugar rush was augmented by a cocaine rush.

The possible opportunities available to Coca-Cola are limitless due to their strong market position and the profits that they consistently turn. Coke has begun to realize that they are capable of expanding into other markets besides that of the soft drink. This is the focus of the Minute Maid group. The worldwide juice beverage business is growing, with sales of more than $40 billion annually. The destination of The Minute Maid Company is to be The Coca-Cola Company of juices, worldwide, and capture category growth with global brands, premium products and a superior business system.

One of the largest threats that Coca-Cola holds is that people are now trying to attempt a healthier lifestyle, than that in the past when soda pop was booming. And one of the most common things people tend to cut out of their diet is complex sugars, such as those found in the high fructose corn syrup. Also the rivalry between Pepsi and Coke still stands, and has made the industry dawdling, because the consumers can easily switch to other beverages.In order for Coca-Cola to say established, is to develop more products that will both concentrate on health concerns and also maintain the taste of the original Coke that holds American consumers in love with their product.

Works Cited

www.coke.com; The Coca-cola Company website

Ivester, M. Douglas. (1998).

Gillette company annual report. Zivic, Louise. (1998).

Management,Primus publishing.

www.cnn.com (1999) Coke faces problems in Belgium.

To top