Assignment of b.e

7/30/2019 Assignment of b.e

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Assignment

of

Business Environment

Submitted To Submitted By

Mr.Tejas Joshi Roshani Patel

Class: B

Roll No: 102


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Mission

The world is changing all around us. To continue to thrive as a business over the

next ten years and beyond, we must look ahead, understand the trends and forcesthat will shape our business in the future and move swiftly to prepare for what's to

come. We must get ready for tomorrow today. That's what our 2020 Vision is allabout. It creates a long-term destination for our business and provides us with a"Roadmap" for winning together with our bottling partners.

Our Mission

Our Roadmap starts with our mission, which is enduring. It declares our purpose asa company and serves as the standard against which we weigh our actions anddecisions.

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


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Vision

Our vision serves as the framework for our Roadmap and guides every aspect of

our business by describing what we need to accomplish in order to continueachieving sustainable, quality growth.

People: Be a great place to work where people are inspired to be the best they

can be.Portfolio: Bring to the world a portfolio of quality beverage brands that

anticipate and satisfy people's desires and needs.Partners: Nurture a winning network of customers and suppliers, together we

create mutual, enduring value.Planet: Be a responsible citizen that makes a difference by helping build and

support sustainable communities.Profit: Maximize long-term return to shareowners while being mindful of our

overall responsibilities.Productivity: Be a highly effective, lean and fast-moving organization.


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Values

Our Winning CultureOur Winning Culture defines the attitudes and behaviors that will be required of us

to make our 2020 Vision a reality.

Live Our Values

Our values serve as a compass for our actions and describe how we behave in the

world.

Leadership: The courage to shape a better futureCollaboration: Leverage collective genius

Integrity: Be real

Accountability: If it is to be, it's up to mePassion: Committed in heart and mindDiversity: As inclusive as our brandsQuality: What we do, we do well

Focus on the Market

1. Focus on needs of our consumers, customers and franchise partners2. Get out into the market and listen, observe and learn3. Possess a world view4. Focus on execution in the marketplace every day5. Be insatiably curious

Work Smart

1. Act with urgency2. Remain responsive to change3. Have the courage to change course when needed4. Remain constructively discontent5.

Work efficiently


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Act Like Owners

1. Be accountable for our actions and inactions2. Steward system assets and focus on building value3. Reward our people for taking risks and finding better ways to solve

problems4. Learn from our outcomes -- what worked and what didnt

Be the Brand

Inspire creativity, passion, optimism and fun


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History

Coca-Cola Company is a beverage retailer, manufacturer and marketer of non-

alcoholic beverage concentrates and syrups. The company is best known for its

flagship productCoca-Cola, invented by pharmacistJohn Stith Pembertonin 1886.The Coca-Cola formula and brand was bought in 1889 byAsa Candlerwho

incorporated The Coca-Cola Company in 1892. Besides its namesake Coca-Cola

beverage, Coca-Cola currently offers more than 500 brands in over 200 countries

or territories and serves 1.6 billion servings each day.[5]

The company operates afranchiseddistribution system dating from 1889 where

The Coca-Cola Company only produces syrup concentrate which is then sold to

variousbottlersthroughout the world who hold an exclusive territory. The Coca-

Cola Company owns its anchor bottler in North America, Coca-ColaRefreshments.

The Coca-Cola Company is headquartered inAtlanta,Georgia. Its stock is listed

on theNYSEand is part ofDJIA,S&P 500 Index, theRussell 1000 Indexand the

Russell 1000 Growth Stock Index. Its current chairman and CEO isMuhtar Kent.

The Coca-Cola Company was originally established in 1892 as the J. S. Pemberton

Medicine Company, a co-partnership between Dr. John Stith Pemberton and Ed

Holland. The company was formed to sell three main products: Pemberton's

French Wine Cola (later known as Coca-Cola), Pemberton's Indian Queen HairDye, and Pemberton's Globe Flower Cough Syrup.

In 1894, the company became a stock company and the name was changed to

Pemberton Chemical Company. The new president was D. D. Doe while Ed

Holland became the new Vice-President. Pemberton stayed on as the

superintendent. The company's factory was located at No. 107, Marietta St. Three

years later, the company was again changed to Pemberton Medicine Company,

another co-partnership, this time between Pemberton, A. O. Murphy, E. H. Blood

worth, andJ. C. Mayfield.
http://en.wikipedia.org/wiki/Syruphttp://en.wikipedia.org/wiki/Syruphttp://en.wikipedia.org/wiki/Coca-Colahttp://en.wikipedia.org/wiki/Coca-Colahttp://en.wikipedia.org/wiki/Coca-Colahttp://en.wikipedia.org/wiki/John_Stith_Pembertonhttp://en.wikipedia.org/wiki/John_Stith_Pembertonhttp://en.wikipedia.org/wiki/John_Stith_Pembertonhttp://en.wikipedia.org/wiki/Asa_Candlerhttp://en.wikipedia.org/wiki/Asa_Candlerhttp://en.wikipedia.org/wiki/Asa_Candlerhttp://en.wikipedia.org/wiki/The_Coca-Cola_Company#cite_note-4http://en.wikipedia.org/wiki/The_Coca-Cola_Company#cite_note-4http://en.wikipedia.org/wiki/The_Coca-Cola_Company#cite_note-4http://en.wikipedia.org/wiki/Franchisinghttp://en.wikipedia.org/wiki/Franchisinghttp://en.wikipedia.org/wiki/Franchisinghttp://en.wikipedia.org/wiki/Bottler_(company)http://en.wikipedia.org/wiki/Bottler_(company)http://en.wikipedia.org/wiki/Bottler_(company)http://en.wikipedia.org/wiki/Atlantahttp://en.wikipedia.org/wiki/Atlantahttp://en.wikipedia.org/wiki/Atlantahttp://en.wikipedia.org/wiki/Georgia_(U.S._state)http://en.wikipedia.org/wiki/Georgia_(U.S._state)http://en.wikipedia.org/wiki/Georgia_(U.S._state)http://en.wikipedia.org/wiki/New_York_Stock_Exchangehttp://en.wikipedia.org/wiki/New_York_Stock_Exchangehttp://en.wikipedia.org/wiki/New_York_Stock_Exchangehttp://en.wikipedia.org/wiki/Dow_Jones_Industrial_Averagehttp://en.wikipedia.org/wiki/Dow_Jones_Industrial_Averagehttp://en.wikipedia.org/wiki/Dow_Jones_Industrial_Averagehttp://en.wikipedia.org/wiki/S%26P_500_Indexhttp://en.wikipedia.org/wiki/S%26P_500_Indexhttp://en.wikipedia.org/wiki/S%26P_500_Indexhttp://en.wikipedia.org/wiki/Russell_1000_Indexhttp://en.wikipedia.org/wiki/Russell_1000_Indexhttp://en.wikipedia.org/wiki/Muhtar_Kenthttp://en.wikipedia.org/wiki/Muhtar_Kenthttp://en.wikipedia.org/wiki/Muhtar_Kenthttp://en.wikipedia.org/wiki/J._C._Mayfieldhttp://en.wikipedia.org/wiki/J._C._Mayfieldhttp://en.wikipedia.org/wiki/J._C._Mayfieldhttp://en.wikipedia.org/wiki/J._C._Mayfieldhttp://en.wikipedia.org/wiki/Muhtar_Kenthttp://en.wikipedia.org/wiki/Russell_1000_Indexhttp://en.wikipedia.org/wiki/S%26P_500_Indexhttp://en.wikipedia.org/wiki/Dow_Jones_Industrial_Averagehttp://en.wikipedia.org/wiki/New_York_Stock_Exchangehttp://en.wikipedia.org/wiki/Georgia_(U.S._state)http://en.wikipedia.org/wiki/Atlantahttp://en.wikipedia.org/wiki/Bottler_(company)http://en.wikipedia.org/wiki/Franchisinghttp://en.wikipedia.org/wiki/The_Coca-Cola_Company#cite_note-4http://en.wikipedia.org/wiki/Asa_Candlerhttp://en.wikipedia.org/wiki/John_Stith_Pembertonhttp://en.wikipedia.org/wiki/Coca-Colahttp://en.wikipedia.org/wiki/Syrup


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PEST Analysis

The PEST analysis takes a look at the external environment that the organization is

in. It quite simply asks us to consider the political, economic, social and technical

influences on an organization. This is sometimes called STEP and can even

including environmental and legal considerations.

Political changegovernment agendas for performance, targets and funding

Political Analysis for Coca-Cola

Non-alcoholic beverages fall within the food category under the FDA. The

government plays a role within the operation of manufacturing these products interms of regulations. There are potential fines set by the government on companies

if they do not meet a standard of laws.

The following are some of the factors that could cause Coca-Cola company's actual

results to differ materially from the expected results described in their underlying

company's forward statement:-

Changes in laws and regulations, including changes in accounting standards,taxation requirements, (including tax rate changes, new tax laws and revised

tax law interpretations) and environmental laws in domestic or foreignjurisdictions.

Changes in the non-alcoholic business environment. These include, withoutlimitation, competitive product and pricing pressures and their ability to gainor maintain share of sales in the global market as a result of action by

competitors.

Political conditions, especially in international markets, including civilunrest, government changes and restrictions on the ability to transfer capitalacross borders.

Their ability to penetrate developing and emerging markets, which alsodepends on economic and political conditions, and how well they are able toacquire or form strategic business alliances with local bottlers and makenecessary infrastructure enhancements to production facilities, distribution

networks, sales equipment and technology.


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Economic changechanges in employment, increased regional competition,

independent training providers

Economic Analysis for Coca-Cola

Last year the U.S. economy was strong and nearly every part of it was growing and

doing well. However, things changed. Most economists loosely define a recession

as two consecutive quarters of contraction, or negative GDP growth. On Monday

26, the government officially declared that the U.S. has been in recession since

March.

However, because of aggressive action by the Federal Reserve and Congress it will

be short and mild. The economy will return to sustained, positive growth in the

first half of 2002.

Future Outlooks

The Federal Reserve is doing all that it can help the economy recover. Theyhave cut the interest rate ten times this year. The rate now lies at a 40-year

low of 2%. Lowering the interest rates will ultimately excite consumerdemand in the economy. Companies will expand and increase use of debt as

a result of the low borrowing rates. Coca-Cola can borrow money for

investing in other products as the interest rates are low. It can use theborrowing on research of new products or technology. As researching for

new products would cost less the Coca-Cola Company will sell its products

for less and the people will spend as they would get cheap products fromCoca-cola.

Before the attacks on September 11, 2001, the United States was starting totsee the economy recover slightly and it is only just recently that they

achieved the economic levels. Consumers are now resuming their normalhabits, going to the malls, car shopping, and eating out at restaurants.

However, many are still handling their money cautiously. They believe that

with lower inflation still to come, consumers will recover their confidence

over the next year. The non-alcoholic beverage industry has high sales in countries outside the

U.S. According to the Standard and Poor's Industry surveys, "For major softdrink companies, there has been economic improvement in many major

international markets, such as Japan, Brazil, and Germany." These marketswill continue to play a major role in the success and stable growth for a

majority of the non-alcoholic beverage industry.


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Social changechanging aspirations of students, life-long learning, shorter

careers

Social Analysis for Coca-Cola

Many U.S. citizens are practicing healthier lifestyles. This has affected thenon-alcoholic beverage industry in that many are switching to bottled water

and diet colas instead of beer and other alcoholic beverages. Also, time

management has increased and is at approximately 43% of all households.

The need for bottled water and other more convenient and healthy products

are in important in the average day-to-day life.

Consumers from the ages of 37 to 55 are also increasingly concerned withnutrition. There is a large population of the age range known as the babyboomers. Since many are reaching an older age in life they are becoming

more concerned with increasing their longevity. This will continue to affectthe non-alcoholic beverage industry by increasing the demand overall and in

the healthier beverages.


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Technological changecomputers, internet, e-learninglearn anywhere.

Technological Analysis for Coca-Cola

Some factors that cause company's actual results to differ materially from the

expected results are as follows:

The effectiveness of company's advertising, marketing and promotionalprograms. The new technology of internet and television which use special

effects for advertising through media. They make some products lookattractive. This helps in selling of the products. This advertising makes theproduct attractive. This technology is being used in media to sell their

products.

Introduction of cans and plastic bottles have increased sales for Coca-Colaas these are easier to carry and you can bind them once they are used.

As the technology is getting advanced there has been introduction of newmachineries all the time. Due to introduction of this machineries the

production of the Coca-Cola company has increased tremendously then itwas few years ago

CCE has six factories in Britain which use the most stat-of the-art drinkstechnology to ensure top product quality and speedy delivery. Europe's

largest soft drinks factory was opened by CCE in Wakefield, Yorkshire in1990. The Wakefield factory has the technology to produce cans of Coca-

Cola faster than bullets from a machine gun.


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SWOT Analysis

SWOT stands for Strengths Weakness Opportunities Threats. I have here SWOTanalysis of Coca Cola, which would be highly beneficial for you to know aboutone of the Leading Beverage Manufacturer in World....

SWOT assay is a address abundant acclimated in abounding acceptedadministration as able-bodied as business scenarios. SWOT consists of analytical

the accepted activities of the organization- its Strengths and Weakness- and again

application this and alien assay abstracts to set out the Opportunities and Threatsthat exist.

Strengths

Cooler Experience Personnel Relations Knowledge Regarding Adversary Accomplished Staff & Benefactor Added Bazaar Allotment in Textile Sector Humans Assurance on Above of our Artifact and Cast Merchandising and All-around Score Rating (Gives Backbone to brainwash bazaar

about convalescent sales)

Coca-Cola has been a circuitous allotment of apple ability for a actual continuedtime.


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The product's angel is loaded with over-romanticizing, and this is an angelabounding humans accept taken acutely to heart. The Coca-Cola angel is displayed

on T-shirts, hats, and collectible memorabilia.

This acutely apparent branding is one of Coca-Cola's greatest strengths. "Enjoyedadded than 685 actor times a day about the apple Coca-Cola stands as a simple, yetable attribute of above and enjoyment" (Allen, 1995).

Additionally, Coca-Cola's bottling arrangement is one of their greatest strengths. Itallows them to conduct business on a all-around calibration while at the

aforementioned time advance a bounded approach. The bottling companies are

locally endemic and operated by absolute business humans who are accustomed to

advertise articles of the Coca-Cola Company. Because Coke does not accept

absolute affairs of its bottling network, its basic antecedent of acquirement is the

auction of apply to its bottlers. Lower amount of assembly Demonstrably above annual Presented a actual circuitous artefact Extensive advertising, acceptable promotions or business programs..don't stop

here, accumulate belief your competitors

Ask: why do I like spending my money added at some businesses than others?


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Weaknesses

Weaknesses for any business charge to be both minimized and monitored in

adjustment to finer accomplish abundance and ability in their business's activities,Coke is no exception.

Although calm business as able-bodied as abounding all-embracing markets areadvancing (volumes in Latin America were up 12%), Coca-Cola has afresh appear

some "declines in assemblage case volumes in Indonesia and Thailand due to

bargain customer purchasing power."

According to an commodity in Fortune magazine, "In Japan, assemblage case salesfell 3% in the additional division [of 1998]...scary because while Japan generates

about 5% of common volume, it contributes three times as abundant to profits.

Latin America, Southeast Asia, and Japan annual for about 35% of Coke'saggregate and none of these markets are assuming to expectation.

Coca-Cola on the added ancillary has furnishings on the teeth which is an affair forbloom care. It as well has got amoroso by which connected bubbler of Coca-Cola

may could cause bloom problems. Being absorbed to Coca-Cola as well is a bloom

problem, because bubbler of Coca-Cola circadian has an aftereffect on your

physique afterward few years.

Local Weaknesses:

Finance Botheration (Partnership Desolation) Less Abandoned on Floor Vehicles Are Less Minor Signage in the Breadth Ample Number of PCI Abandoned Stock. Abandoned Appropriation As we cannot lift empties on our adversary lifts) Added Melancholia appeal Poor annual Top prices What abroad keeps me from affairs at some places?


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Opportunities

Cast acceptance is the cogent agency affecting Coke's aggressive position. Coca-Cola's cast name is accepted able-bodied throughout 94% of the apple today. The primary affair over the accomplished few years has been to get this name cast

to be even bigger known. Packaging changes accept as well afflicted sales and

industry positioning, but in general, the accessible has tended not to be afflicted by

new products.

Coca-Cola's bottling arrangement as well allows the aggregation to yield advantageof absolute advance opportunities about the world. This action gives Coke the

befalling to annual a ample geographic, assorted area.

Local Opportunities:

Customers are Anode from Adversary Specially in Rural Breadth (service andquality).

New Projects accept been Started (Industrial). Minor Signage Work is done in Breadth by PCI. PCI is Getting Absorption in Textile Sector. Customer of PCI are Disturbed (Because of advantage and benefactor interest. So

we can yield account in this area). New technologies that access efficiencies Niche markets that ample companies do not ambition to serve This account isn't anywhere abreast complete


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Threats

Currently, the blackmail of new applicable competitors in the carbonated bendablealcohol industry is not actual substantial.

The blackmail of substitutes, however, is a actual absolute threat. The bendablealcohol industry is actual strong, but consumers are not necessarily affiliated to it.

Possible substitutes that continuously put burden on both Pepsi and Coke cover tea,

coffee, juices, milk, and hot chocolate.

Even admitting Coca-Cola and Pepsi ascendancy about 40% of the absolute coolermarket, the alteration health-consciousness of the bazaar could accept a austere

affect.

Of course, both Coke and Pepsi accept already adapted into these markets,acceptance them to accept added cogent bazaar shares and account any losses

incurred due to fluctuations in the market.

Customer affairs ability as well represents a key blackmail in the industry. The animosity amid Pepsi and Coke has aftermath a actual apathetic affective

industry in which administration accept to continuously acknowledge to thealteration attitudes and demands of their consumers or face accident bazaar

allotment to the competition.

Furthermore, consumers can calmly about-face to added beverages with littleamount or consequence.

Local Threats:

Competitor's Benefactor is Financially Strong.

A new PCI Distributions is expected. Adversary is Thinking Seriously About Textile Sector Market. Bounded Brands, Especially 300ML in Rs.12 Abandoned appropriation from PCI. Economic altitude become abortive


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WT Analysis

One of the weaknesses that Coke posses is that its articles are of top cost.Abounding added companies are accretion its articles at lower costs like Pepsi. We

can balance this lose by alms altered schemes like gifts, cars, TVs est.

In Pakistan and India there are added melancholia demands of the bendable drinksbecause their atmosphere is actual hot. In the division Coke face difficulties in

distributing the products. And as well adversity in brands because Coke has bound

articles in Pakistan e.g. coca cola, sprite, fanta but Pepsi has altered articles e.g.

Pepsi, Mirinda, 7up, Dew and as well Aquafina mineral water. But now Coke has

alien new artefact Kinley mineral water.

Although calm business as able-bodied as abounding all-embracing markets areadvancing (volumes in Latin America were up 12%), coca cola has afresh appear

some "declines in assemblage case volumes in Indonesia and Thailand due to

bargain customer purchasing power". Even admitting Coca-Cola and Pepsi

ascendancy about 40% of the absolute beverages market, the alteration health-

consciousness of the bazaar could accept a austere affect.

According to an commodity in Fortune magazine, In Japan, assemblage case salesfell 3% in the additional division [of 1998] scary because while Japan generates

about 5% of common volume, it contributes three times as abundant to profits. The

bendable drink industry is actual strong, but consumers are not necessarily

affiliated to it. Possible substitutes that continuously put burden on both Pepsi and

Coke cover tea, coffee, juices, milk, and hot chocolate.

Abandoned of Coca-Cola appropriation by competitors e.g. Pepsi but we can't lifttheir abandoned due to their quality. The animosity amid Pepsi and coke has

aftermath a actual apathetic affective industry in which administration accept to

continuously acknowledge to the alteration attitudes and demands of their

consumers or face accident bazaar allotment to the competition. Furthermore,

consumers can calmly about-face to added beverages with little amount orconsequence.

Coca-cola on the added ancillary has aftereffect on the teeth which is an affair forbloom care. It as well has got amoroso by which connected bubbler of Coca-colamay could cause bloom problem, because bubbler of coca-cola circadian has anaftereffect on your physique afterward few year.


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WO Analysis

Its weakness of bound articles in Pakistan and India can could could could causethe opportunities in the alien ambiance to go by its hands. It had to aftermath new

articles to yield abounding advantage of opportunities.

Its articles are of top amount and there are so abounding opportunities in the bazaarfor its advance if it lowers its amount it ability be communicable aggregate of the

marketing.

Its weakness of able aftertaste has bargain its bazaar humans adopt the ablaze taste.And Pepsi Cola has as well acquaint New artefact "Aquafina" mineral baptize but

now Coke has as well acquaint new mineral baptize "Kinley" and this new artefact

has as well low amount as analyze to Pepsi's artefact "Aquafina. One of the acumen that why amount of coke is college is that basic headquarter is

in USA area activity amount is actual high. If we attending in added countries like

Mexico, Korea, Taiwan etc. actuality activity amount is low and artefact can

fabricated at lower cost.


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ST Analysis

Coke has backbone that it so abundant revenue, which it can advance on theassembly of new product, abounding companies are authoritative new articles so it

can cope with these threats easily.

Coke had a actual acceptable advertisement accusatory added companies or as wellannouncement their articles so Coke can handle with its accomplished business

agents.

In adopted countries Coke accept abounding branches with altered flavors asanalyze to Pakistan, which has alone 2-3 Coke products. Its had threats from Cock,

which are its basic competitors from about 100 years. It can accord with it easily.

Assay and development administration of Coke is paying abounding absorptionappear assembly of new & innovated articles to Pepsi with alien threats of the

accretion antagonism in the alien incitement.

Staff of Coke in Pakistan is actual accomplished and humans assurance on aboveof our artefact and brand. Coca-Cola has been a circuitous allotment of apple

ability for a actual continued time. But competitors administration is financially

able due to fast action of approval of Decision.

This acutely apparent branding is one of Coca-Cola' greatest strengths. "Enjoyedadded than 685 actor times a day about the world. Coca-Cola stands a simple, yet

able attribute of above and enjoyment". But if the melancholia aeon alpha than the

accumulation should not be short.


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SO Analysis

Coke's basic backbone that is it revenges will advice to abduction to bazaarbecause it is aback cartilage of any aggregation and any aggregation can

accomplish advance on the basic it had, so coke can yield advantages of

opportunities.

Coke has so abounding articles so apparent beneath as befalling is consistentlypresent in the alien ambiance for new products. As Coke did if it alien Kinley in

the world.

Pepsi spends huge money on advertisement action as apparent below. This canaccept actual acceptable advantages because by advertisement you can bolt mach

of the opportunities in the alien ambiance for this purpose. Pepsi is hiringabounding superstars.

Assay and development is actual abundant innovative. It can yield aboundingadvantages of opportunities in alien environment.


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Internal & External FactorsThere are many factors, internal as well as external that impacts the planning

function of management within an organization, and Coca-Cola is no exception.

More than a billion times every day, thirsty people around the world reach for

Coca-Cola products for refreshment. Coca-Cola is the most popular and biggest-

selling soft drink in history, as well as the best-known product in the world. The

Coca-Cola franchise covers a population of approximately 398 million people.

Coca-Cola Enterprises employs approximately 72,000 people who operate 463

facilities, 54,000 vehicles and approximately 2.4 million vending machines,

beverage dispensers and coolers.

Rapid Change

The Coca-Cola Company experienced a period of rapid change during the

1900 through 1909 timeframe when the company experienced a period of rapid

growth. This rapid growth was attributed to three pioneers sectioning off the

country into territories and selling bottling rights to local entrepreneurs. Their

combined efforts attributed to advancements in bottling technology which

improved efficiency and product quality. By 1909, nearly 400 Coca-Cola bottling

plants were operating, most of them family-owned businesses. Some were onlyopen during hot-weather months when demand was high (Coca-Cola, 2004).

During the 1920s and 1930s Coca-Cola began its international expansion led by

Robert W. Woodruff, who was the Chief Executive Officer and Chairman of the

Board. Coca-Cola plants were opened in France, Guatemala, Honduras, Mexico,

Belgium, Italy and South Africa. By the time World War II began, Coca-Cola was

being bottled in 44 countries (Coca-Cola, 2004). These two different periods of

time were when Coca-Cola experienced its most crucial rapid change due to

bottling innovation and company expansion.


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Globalization

Beginning in the 1920s building their global network, Coca-Cola is now the

world's leading manufacturer, marketer, and distributor ofnonalcoholic beverage

concentrates and syrups, used to produce nearly 400 beverage brands in over 200

countries (Coca-Cola, 2004). Competing globally is a difficult task due to the

unpredictability of foreign markets (Bateman &Snell, 2003). Coca-Cola not only

recognized the opportunity in the global market but was able to expand

successfully. Canada and Panama were the start of their global market in 1906.

Since then they have expanded throughout the world. Coca-Cola successfully

meets consumers tastes globally; as a result 70% oftheir income is from outside

the United States (Coca-Cola, 2004).

Technology

Coca-Cola originated as a soda fountain beverage in 1886, and at that time sold for

only five cents a glass. While early growth was impressive, it was only when a

strong bottling system developed that Coca-Cola became the world famous brand it

is today (Coca-Cola, 2004). Along with its network of bottlers, the company

comprises the most sophisticated distribution system in the world. When we think

of how far we come, its somewhat difficult to believe that not all places have risento our level. In some of the higher elevations of the Andes, Coca-Cola is

sometimes transported by four-legged power (Coca-Cola, 2004).


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Innovation

The market today is always changing. A company must be in tune with what

consumers want. Consumers get bored, and often want new products. In order to

meet the wants and needs of customers a company must introduce new products or

services (Bateman &Snell, 2003). Coca-Cola in an effort to meet customers needs

created C2 which is a low carb soft drink. This was in response to the low carb

diets and the demands of consumers. They also intend to launch a new soft drink

called Coca-Cola Zero. This is a zero calorie soft drink. Knowing the importance

of innovation the Coca-Cola Company has always strived to create new products.

They already have Coke with Lime, Lemon, Vanilla and Cherry. Raspberry will

be the new flavor added to Coke coming soon. They also have plans to sweetenDiet Coke with Splenda, a sugar substitute that is safe fordiabetics (Coca-Cola,

2004).

Diversity

The diversity at the Coca-Cola is evident with their presence in more than 200

counties. They feel that they are empowered within their business structure as wellas the communities they serve because of their differences. Their attribute their

success to their consistent values. They understand that their future growth is

dependent upon their ability to develop a worldwide team that is rich in its

diversity of people, cultures and ideas (Coca-Cola, 2004). Knowing that diversity

is not limited to the internal structure of an organization, Coca-Cola has used this

same approach regarding their suppliers. Through their supplier diversity program

they are building relationships with minority and women owned businesses by

giving them equal access to procurement opportunities.


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EthicsThe Coca Cola Company seems to pride itself on the ethical foundations of

honesty and integrity. Coca Cola believes that these two ethical foundations are

the cornerstone values of the Coca-Cola Company (Coca-Cola, 2004). The

following from The Coca-Cola Company regarding their employees obligation to

uphold the companys ethicalstandards, As company representatives, we all have

the responsibility to act in every situation according to the highest standards of

ethical conduct (Coca-Cola, 2004). Coca-Cola institutes that its employees are the

representation of the ethical standards behind the product. Coca-Cola has had some

challenges throughout its existence as a company (i.e. New Coke) and has felt

the need to face each and every situation with Honesty and Integrity, believing that

in order to remain valid and legit in the market place, a company must retain itsethical standards at all times.


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Market Position of Coca Cola in the US

Coca Cola plays a major in its industry, not only in the U.S, but also all over the

globe. Coke is single handedly the most popular soft drink anywhere, beating out

its competition, Pepsi Co. Overseas, Coke has established its empire from South

America to Africa to all of Asia and Europe. Coke is the world's top soft-drink

company. The Coca-Cola Company owns four of the top five soft-drink brands

(Coca-Cola, Diet Coke, Fanta, and Sprite). Among its other brands are Barq's,

Fruitopia, Minute Maid, PowerAde, and Dasani water. In the US it sells Group

Danone's spring water brands (Dannon and Sparkletts). Coca-Cola sells Crush, Dr

Pepper, and Schweppes outside Australia, Europe, and North America. The firm,

which does no bottling, sells about 400 drink brands, including coffees, juices,

sports drinks, and teas, in some 200 nations. Cokes position is so powerful in the

market that it is the second most recognized word anywhere in the world after

OK. Even though many nations overseas feel the impact that Coke has, the

individuals at Coke has assured that their presence is felt here in the US also. Coke

has established itself into many facets in the US that makes this company stand

out. For instance, Coke makes a continuous effort to introduce a new product, i.e.

new Vanilla Coke. Coke also boosts its market positioning the states with the many

youth partnerships, TV commercials, sports, music, and community service.


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Major Moves by Coke

Like many companies, Coke is far from perfect and like many other companies

may sometimes go through their share of crisis and their fair share of big decisions.

Recently, it was reported in the Boston Business Journal, that Coca Cola is going

to sign an eight year extension with there long time team sponsor, world champion

Boston Red Sox. This deal was brought because of the clubs big success and to

commensurate the attendance and market size of Boston. Since Coke is the clubs

most active sponsor, the deal solidifies Coke as a major player within major league

baseball. This move is especially significant because Pepsi is Major League

Baseballs official soft drink sponsor; however Coke is attempting to acquire this

from its competition by getting pouring rights in all of the parks, which it already

has in about half of the MLB ball parks.


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Ratio Analysis

Profitability ratios are reported to assist in the interpretation of the companies, inthis case Cokes, operating efficiency. One profitability ratio is the return on assets

(ROA) of a company, which measures the net income stated as a percentage of

total assets. Currently, Coke has an ROA of 15.6%. This means that 15.6% of there

net income is a total of there net assets. Compared to the industry, which has an

ROA of 9.2%, Coke is has large amount there net income going into there total

assets. This means that eventually, Coke will acquire greater income in the future.

Another profitability ratio is the ROE, return on equity. Return on equity measures

the net income stated as a percentage of stockholders equity. This means thatwhatever a companies ROE is it is the percentage of stockholders equity of that

particular company. In Cokes case, there ROE is 30.6%, compared to the industry

average which is only 25.1%. After analyzing this, I see that coke has a major part

of its income going to stockholders, whereas most other companies do not have as

much. With this said Coke gives more incentive to invest in its firm because if

gives a higher return compared to other companies in the industry. This appears to

not be a new trend for Coke because when you take a look at their 5-year average,

they have totally been consistent in their actions. There 5 year ROA average is

14.5% compared to 5-year industry average of 7.9%. There 5 year ROE average

is 30.2% compared to the 5-year industry average of 23.4%. Consistency is truly

the key to success.


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Market ValueThe most popular price ratios used are the Price/Earnings ratio and the Price-Cashflow Ratio. Both of the following ratios measure or try to measure the value of a

companies stock. In term of Coke, their current P/E ratio is 21.7 and the industries

current P/E ratio is 20.3. What does all of this mean? Well when analyzing the P/E

ratio of Coke compared to the industry, Coke appears to be value stock. This

means that compared to the industry, Cokes P/E ratio is relatively equal so this

investment would represent a good investment value. The second popular price

ratio is the price-cash flow ratio, which is defined as the current stock price divided

by the current cash flow per share. In regards to Coke, there price cash flow ratio is18.20 compared to an industry average of 13.5. Also when analyzing, we took into

consideration Cokes earnings per share (EPS); since there EPS is 6.60 which is

lower than there cash flow of 18.20 than you can assume that this is a signal of

good quality earnings. This makes Coke an interesting stock to consider.


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STRATEGIES OF GETTING GOALS I.E. HIGH PROFITS

To increase the price is the least thing, which Coke can adopt. There are so manyways through which Coke can increase the profits. Some major ways are as

follows.

Volume can be increased

Interest level of consumers

To take part in energetic festivals

How to increase the volume of consumers?Coke can increase the volume by expanding the industry of coke. Through

advertisements, offering different interesting things to attract people towards thisproduct.

How to increase the interest level of consumers?

Coke is increasing the interest level of consumers by offering different flavors.

For example Coke is increasing the number of flavors in Fanta, this is one of the

product of coke. Through offering different flavors Coke can increase the Level of

consumers and through this profits can be gained.

How to take part in energetic festivals?

Coke is already taking part in the festival like Basant since last 3 years. Cokeoffers different attractive things in their festival and through this Coke gained high

profit and consumption of coke increased on these occasions.

And this year in this year 2002 people were anxiously waiting that what interestingthing coke is going to offer.


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MARKETING STRATEGY

Our local marketing strategy enables Coke to listen to all the voices around the

world asking for beverages that span the entire spectrum of tastes and occasions.What people want in a beverage is a reflection of who they are, where they live,

how they work and play, and how they relax and recharge. Whether you're astudent in the United States enjoying a refreshing Coca-Cola, a woman in Italy

taking a tea break, a child in Peru asking for a juice drink, or a couple in Koreabuying bottled water after a run together, we're there for you. We are determined

not only to make great drinks, but also to contribute to communities around the

world through our commitments to education, health, wellness, and diversity.

Coke strives to be a good neighbor, consistently shaping our business decisions to

improve the quality of life in the communities in which we do business. It's aspecial thing to have billions of friends around the world, and we never forget it.


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PRICE STRATEGIES

Trade Promotion

Coca Cola Company gives incentives to middle men or retailers in way a that theyoffer them free samples and free empty bottles, by this these retailers and middle

man push theirproduct in the market. And thats why coca cola seen more in themarket. And they have a good sale in the market because according to the expert

which product seen more in the market that sells more. Seen as sold They do

agreements with a shop keepers and stores to exclusive sale in that stores. These

Stores are called as KEY accounts in their local language. And coke also invest

heavy budget on these stores and offers them free samples and free bottles andsome time cash incentives.

Different Price In Different Seasons

Sometimes Coca Cola Company changes their product prices according to theseason. Summer is supposed to be a good season for beverage industry in Pakistan.

So in winter they reduce their prices to maintain their sales and profit. Butnormally they reduce the prices of their pet bottles or 1 litter glass bottle.


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PROMOTION STRATEGIES

Getting shelves

They gets or purchase shelves in big departmental stores and display their productsin that shelves in that style which show their product more clear and more

attractive for the consumers.

Eye Catching Position

Salesman of the coca cola company positions their freezers and their products ineye catching positions. Normally they keep their freezers near the entrance of the

stores.

Sale Promotion

Company also do sponsorships with different college and schools cafes andsponsors their sports events and other extra curriculum activities for getting market

share.

UTC Scheme

UTC mean under the crown scheme, coca cola often do this type of scheme and

they offer very handy prizes in it. Like once they offer bicycles, caps, tv sets, cash

prizes etc. This scheme is very much popular among children.

Distribution Channels

Coca Cola Company makes two types of sellingDirect selling

Indirect selling

Direct Selling

In direct selling they supply their products in shops by using their own transports.

They have almost 450 vehicles to supply their bottles. In this type of selling

company have more profit margin.

Indirect Selling

They have their whole sellers and agencies to cover all area. Because it is verydifficult for them to cover all area of Pakistan by their own so they have so many

whole sellers and agencies to assure their customers for availability of coca colaproducts.


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CONCLUSION

After thorough research, we come to the conclusion that the marketing strategy of

Coca Cola is working for them and the product is gaining popularity among youthday by day.

RECOMMENDATIONS

After completing our project we have concluded some recommendation for the

coca cola company, which are following. Coca Cola Company should try to emphasis more on providing their

infrastructure in the market to facilitate their customers.

According to the survey, conducted by the international firm Pakistani people

like little bit sweeter cola drink. So for this coca cola company should produce

their product according to the local demand.

Marketing team should try to increase the availability of Coke in rural areas.

They should also focus the old people.

Now young generation has a trend to drink coke 2 regular bottles at same

Time, so providing more satisfaction to them company should introduce liter

Disposable bottle.


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