Академический Документы
Профессиональный Документы
Культура Документы
Introduction
Coca-Cola Company is the world's largest nonalcoholic beverage
company.
It offers a portfolio of world class quality sparkling and still
beverages, starting with Coca-Cola and extending through over 400
soft drinks, juices, teas, coffees, waters, sports and energy drinks that
refresh, hydrate, nourish, relax and energize.
Coca-Cola has more than 400 brands are nearly 2,400 beverage
products. Four of the world's top-five soft-drink brands are : CocaCola, Diet Coke, Sprite and Fanta. Thums Up and Limca, which
are formulated to appeal to local cultures and lifestyles.
With operations in more than 200 countries, we have a diverse
workforce of approximately 55,000 Company employees.
Coca Cola family of beverages accounts for approximately 1.3 billion
servings worldwide of the 50 billion beverage servings consumed
every day-a figure that indicates both strength and growth opportunity
of the company.
PRODUCTS DESCRIPTION
The Rejuvenation division offers a range of drinks designed to
improve how people feel physically and mentally. Products include
ready-to-drink coffees, teas and herbal beverages.
The Health & Nutrition division produces a range of products to
promote health and well being. In the US, its products encompass
Minute Maid Premium 100% juices, Hi-C fruit drinks and Minute
Maid Coolers.
The
Executive Summary
A company that fully understands the importance of value
chain in business is the Coca-Cola Company. A global leader
in the beverage industry, the Coca-Cola Company further
indulges in enhancing their value propositions as an
instrument to create virtuous cycles of geographic expansion'
and thus greater advantage. Coca-Cola owns the most
important elements of the value chain such as the brand, the
technology, the management, the marketing expertise and the
relationships
This search includes Coca-Cola SWOT Analysis, Porter's five
forces analysis and diverse value-chain activities in different
areas. In addition, the search presented the interplay between
the Research Councils and how it impacts Coke's value chain
as well as creating the absolute effective position.
WEAKNESSES
Carbonates Market is in Decline
Over-complexity of relationship with bottlers in North America
The existing distribution system is not so efficient for non carbonates
OPPURTUNITIES
Expansion Reaching all segments
Catering to Health Consciousness of People
Soft drinks volumes in the Asia- Pacific region forecast to increase by
over 45%
Use distribution strengths in Eastern Europe and Latin America
Increased Consumer Concerns with Regard to Drinking Water
THREATS
Health Drinks Fruit Juice Companies
Competition-Pepsi
Boycott in the Middle East
Buyers
Rivalry (Industrial competitors)
Exclusive Territories
Direct-store-delivery (DSD)
Substantial Investment
Current Market Presence of CocaCola
Power of Suppliers
Sugar
Packaging
Bargaining power of suppliers is low
due to two reasons.
First, the main inputs are sugar and
packaging. Sources of sugar are on the
open market which subsequently makes
the creation power of suppliers at low
levels. There are several suppliers for
packaging as well as the abundance in
supply of inexpensive aluminum.
Primary Activities
Support Activities
Infrastructure
Financial
Human Resources
Management
Inbound
logistics
Process
Sales
Outbound
&
Aftercare
Logistics
Marketing
Source: Porter,1985
5.
5.
product quality like the Chemunex. Coca-Cola invested in realtime microbiology analyzer or the D-count. Such technology is
adapted because of: quantitative analysis with satisfying detection
limit, automated analysis with reduction of the analytical time,
reliability of the results and robustness of the system for an
intensive routing use.
8.
9.
10. Service/Dealer Support: Within each region are different dealers that
orders through three primary categories: bulk, side load and full service.
Coca-Cola system ensures that dealerships are assisted upon. So the
company opened their distribution system and embraced the DSD system
or the direct-to-store concept. The movement is from wholesalers
channels into Direct-store-delivery DSD channels.
There are five council members: Asia, Europe, Latin and North America and
National Association of Convenience Stores (NACS). Such councils are cashing
in on research to innovations of product portfolio by means of introducing new
concepts and ideas about merchandising and store formats as well as idea
generation for connecting store performance and the actions of store management
teams as examples of retail innovations.
Products-wise, the Council aimed at ensuring sustainable products and
responsibly-sourced and traceable products as well as eco-friendly packaging, and
this product must be accessible at reasonable prices. Ensuring product assortment
is also under the Council's scrutiny to further guarantee innovative health goods.
Assortment for Coca-Cola means small/fractionable, to consume right after at
affordable prices
Better supplier delivery performance: Prior to acquiring the Class A rate, the
performance of the supplier is measured to be falling between 50 to 75%. But right after
the complete integration of CPE, while taking into critical account of the Research
Councils' role, worldwide facilities had experienced supplier on-time delivery
performance of higher than 95%.
5.
Improved business processes: For different processes like purchasing and customer
order processing, there had been a large reduction in cycle times.
6.
High data integrity Inside different Coke facilities, inventory record accuracy and bill of
material accuracy is reported to be 99-100% and 100%, respectively.
7.
Decline in cost of goods: The reductions, as high as 20%, in each facility annually is
viewed to be a significant improvement.
8.
High team spirit: Communications within and between marketing, finance, quality
assurance and manufacturing are improved with respect to the global teams.
The focus of the company is on holistic improvement instead of systems replacement that
centers on the development of the business operation in different levels but most
significantly on the retailing. Implementations are the key towards proactive
functionality within manageable and actionable initiatives. Coca-Cola 's plan is one
facility at a time with decision-making that is based on anticipated benefits.
Coca-Cola continued to deliver unit case volume growth. Been ranking 4 of the
top 5 nonalcoholic sparkling beverage brands are owned by the Coca-Cola.
2.
Brand-wise, the original Coca-Cola is still the best known brand globally Evidently,
the beverage leadership position is delivered by how consumers can more around
the Coke portfolio depending on their needs at different stages of their lives.
3.
Financially, the Coca-Cola Company reported in February 2007 that profit jumped
of about 18% with net income nearly $6B - $5.98 billion on $28.9 billion in
revenue. Further, Coca-Cola and its bottling partners delivered unit case volume
growth of 6% for the year 2007 and four consecutive quarters of double-digit
earnings per share growth. Worldwide, the sparkling beverage volume increased by
4% and the still beverages by 12%.
4.
In terms of systemic integration, adding value with its bottling partners, there had
been the existence of collaboration, support and shared values and goals and
through its customers, Coke brands were made possible for the consumption in local
communities. Driven by the Coca-Cola system, the company is now no. 1 in sales of
sparkling beverages, juices and juice drinks, no. 2 in sales of sports drinks and no. 3
in sales of bottled water.
Conclusion
At Coke, the creation of the absolute effective position is central on investing
on Coca-Cola Retailing Research Councils. Along with its four key processes,
Coke creates value through proactively engaging their retailers at technically
every levels of the value chain from raw materials down to end-products.
Conforming to holistic improvements, Coke strategically put value to store
management, providing consumers with the right to choose while also
enjoying the health benefits of its brands.
More than complying to standards and acquiring first rates, Coke aimed at
enhancing the shopping experience and enjoyment of refreshments which are
reflected in the figures they accumulate coupled with ethical operation.