Coca-Cola Company Analysis 1

COCA-COLA COMPANY ANALYSIS

Students Name

Code+ course name

Professors name
University name
City, State
Date

Coca-Cola Company Analysis 2

Table of Contents
Coca-Cola- Business Overviews.....................................................................................................3
Corporate social Responsibility.......................................................................................................3
Coca-Cola Risk Management and Corporate governance...............................................................3
Coca-Cola Communication and Consultation.................................................................................5
Portfolio of Innovation based on 4Ps of Innovation........................................................................5
Successes and failures of Coca-Cola...............................................................................................6
Coca-Cola Strategic Innovation.......................................................................................................7
Organization and responsibilities/ accountability............................................................................8
Influence of advertising and branding.............................................................................................9
Operational Strategies....................................................................................................................10
Supply Chain Mechanism..............................................................................................................11
Challenges that Coca-Cola Faces...................................................................................................11
Business Recommendations...........................................................................................................11
References......................................................................................................................................12

Coca-Cola Company Analysis 3

Coca-Cola- Business Overviews
Coca Cola Enterprises Inc. produces, distribute and market non-alcoholic beverages. It
provides still and sparkling water, flavored waters, juices and juice drinks, sports, drink, energy
drink, teas and coffees. The company various products it offers to its clients. However, its
primarily under Coca-Cola, Coca-Cola zero, minute maid and several other product which have
capture majority of non-alcoholic beverage market. It distributes its product through retailers,
wholesalers and other customer and though licensed territory agreement in Belgium, continental,
France, Great Britain, Luxembourg, Monaco, Sweden. Coca Cola Enterprise Inc. was founded in
1986 and is based in Atlanta, Georgia (Bartlett & Ghoshal, 2009).
Corporate social Responsibility
The company is taking part in various CSR activities around the world. However, the
most common one is paying back to the community through development; constructions of
schools, hospitals and other infrastructures. In addition, the company is also known of
sponsoring sporting activities (Creswell, 2007). Secondly the company is also taking part in
green movements to ensure global warming is managed.
Coca-Cola Risk Management and Corporate governance
Coca-Cola risks management is progressively turning into a key component of great
corporate influence. A few partnerships have created refined and standardized approaches to
guarantee that risk is distinguished and examined. Different departments within the company
have practically no risk management limit. While corporate risk management strategies oblige
company of the time and different assets to appropriately address, they are basic to all
departments, regardless of the fact that the company's risk profile is straightforward (Freedman
& Vohr, 2009).

Coca-Cola Company Analysis 4

Risks are evident in numerous structures and can show up without cautioning and with
genuine and critical results. The latest Coca Colas international fiscal disaster is the latest case
of how risks all of the types can be managed with limited cautioning and influence the company
overall business departments. Despite the fact that the fundamental risks throughout the
budgetary emergency were made inside the monetary managements industry, the risks echoed to
about all business parts, and in very nearly all national economies as everywhere as possible.
While it is difficult to dispose of risks, Coca-Cola has been creating approaches and
preparations to enhance how risks are distinguished and dissected. These procedures of risk
management include:
i.

Employ specific team to manage risk separate from bookkeeping or budgetary risks,

ii.

Get risk officers and different manifestations of regulated risk management experts

all through the company,

iii.

Enterprise risk management, management of people or groups to manage

reputational risk, and particular consideration given to macroeconomic risks that

frequently don't accept consideration should also be included on board to solve the
problem of risks resurgence in the company.
These risks may incorporate political risks, and natural risks, for example, the effect of
environmental change on a company's expenses, plan of action, managerial plan and consumer
request (Marx, 2010). Coca-Cola has to create advanced types of risk management that they
consider as beneficial financing. These procedures of risk management are progressively turning
into a key segment of great corporate influence.

Coca-Cola Company Analysis 5

Coca-Cola Communication and Consultation
The procedure to oversee proper communication channels at the company incorporates
differentiating, gathering and communicating pertinent information in a specific structure and
time allocation that allows responsible management team to constituent bodies to complete their
obligations about risks facing the company (Mendona, Pereira & Godinho, 2007).
Communication among staff might be gone for guaranteeing that:
i. The key segments of the company management plan and any future changes are
conveyed successfully
ii. The confidential risk reports on feasibility and results of the approaches are
satisfactory
iii. The data caught is accessible at different levels and time to all the members of staff
as well as other stakeholders.
Consultation is a procedure makes use of communication to settle on prevailing risk sets
in Coca-Cola Company. Critically, consultation is not a result or end in itself, however, the
methods by which Coca-Cola risk results are attained. Consultation gives stakeholders a chance
to affect risk assessments alternatives, in addition, and it is not shared decision making of the
company risk management team, but instead a viable approach to accepting valuable risk
information and guarantee that all significant perspectives are considered in recognizing and
assessing risks.
Portfolio of Innovation based on 4Ps of Innovation
The Company different forms of product innovation to improve the current product,
which is offered to the end user. In publishing and obvious example of this would be the
introduction of other brands associated with the company. At first, the company only

Coca-Cola Company Analysis 6

manufactured and distributed Coca-Cola brand, but later developed spirit among others soft
drinks. This type of innovation takes into account the way in which Coca-Cola products are
created and delivered to the end user. The company has various platforms that it uses to distribute
the merchandises to the end user. For example, in the United States the company has various
websites whereby client order for the product, which is later, delivered to them.
This involves the transfer of users perception about the Companys product. For
example, the company produced mineral water drink in Ukraine in 2003, but the consumers did
not like the product. After market analysis, the Company noted that the product was unlikely to
sell, and the quality was below what the clients expected. However, Coca-Cola worked on the
product, refurbished it and return to the market ones again. Currently, the product is fetching
highly in the market.
According to Coca-Cola, this innovation framework defines related to the mental models,
which outlines what the business is all about. Coca-Cola has always considered this innovation
framework as the most important among all the others. This is because it defines what the
company is producing, how it markets, and finally how it delivers the product to the end
consumers. It cannot be ignored that that Coca-Cola has been working hand in hand with its
subsidiary departments such as the marketing department to ensure that the client are informed
about the products the company produces (Miller, 2008).
Successes and failures of Coca-Cola
Technology: This success is not referring to the ability of the company to produce or
make computer chips, but the companys explanation of technology. In addition, it success it
attributed from trade secrets such as software that helps in logistics of ensuring its products reach
the market and the recipes that the company uses to produce the outstanding products. Bottling

Coca-Cola Company Analysis 7

Network: Coca-Cola has collaborated with more than 300 bottling companies in the world
allowing it to distribute products all over the world. The company upgraded this companys
plants to ensure that their production is unlimited hence catering for the client or consumers
preference in diverse regions, culture and countries.
More bottling and technology piracy: Coca-Cola gross profits gap reduced from 74
percent in 2010 to 65 percent in 2012 (Ogden, J & Ogden, 2014). Despite the fact that the
company was aiming to increase its production, it fell short of understanding that permitting
other companies to bottle its products would compromise the quality of the products. Hence,
between 2010 and 2012 the company almost went into losses. In addition, allowing the
companies to bottle its products almost compromised is innovation capacity. As a result, its
competitors replicated the companys technology innovations.
Coca-Cola Strategic Innovation
Innovate for the future target market is one of Coca Colas strategic priorities within its
sustainable plan. The scale and size of the sustainability challenge faced call for leaders to speed
up their innovation progress. The company has to seek other areas, which must be improved in
order to meet customers expectations as well as to maximize its profits. The company drives
new opportunities for innovation both outside and inside the company (Rangan, Adner &
Strategy, 2012). The companys innovation strategy is focused on solutions that will take CocaCola beyond the four walls to benefit the company, society and the broader industry, through
thought leadership: the company aims at developing and exploring solutions to new challenges
and solutions. Engaging and collaborating with customers, suppliers, and stakeholders to initiate
modernization and to open new prospects ideas, and accelerating the speed of innovation change,
this is done by harnessing and developing innovation via technology

Coca-Cola Company Analysis 8

Organization and responsibilities/ accountability
Coca-Cola as a company do tremendous importance to all the possible risk that are
associated with the business. It maintains the highest standards of risk management mitigation
mechanism in the business processes so as to ensure the safety and probable loss that may
happen due the possible risk. Since the business has an international presence with a huge
number of employees and stakeholders around the world, the company give importance to all the
risks. It prioritizes risk on the basis of the quantum of an associated risk. It is then the top
management of the company do strategize plan of action and formulate a risk management plan
which would ensure the safeguard of the companys asset base, reputation and stakeholder.
There is increased awareness that organizations have to make use of Competitive
Information System in corporate communications. For this reason, many organizations have been
known to embed their business decision-making in Management Information System structures.
This paper will research on the role of Management Information System network has when
establishing the organization. We note that founding a business will need various contacts and
resources in the various phases when establishing a business. In this paper, we study the use of
Competitive Information System to establish a new organizations. When establishing a new
business, there is the use of Competitive Information System and network discussions in the
early stages of business creation. We establish the way organizations use Management
Information System contacts to get resources. It has been established that there are factors, which
might distinguish entrepreneurs networks in various organizations and countries.
Competitive Information System establish relationships that are necessary to provide the
right information and resources that are used in establishing the businesses. Organizations have
ideas that they want to test, but they would also need complementary ideas that will boost the

Coca-Cola Company Analysis 9

success rate of their ventures. Looking at Competitive Information System enables us to have an
analysis on the relationship that exists between organizations and other competitors who will in
turn provide the necessary resources that will be used in the establishment of a novel trade
ventures. In this case, organizations have the ideas that they would like to test and some
knowledge and competence that is required to run a business. These organizations get support
and knowledge from their Competitive Information System. They also get support and ideas
from the various organizations and competitors who are found in the Competitive Information
System in which they are affiliated with.
Competitive Information System are not fixed, and they can, therefore, be activated according to
the various needs. To auger well with the organizations needs, organizations bring both those
that are closer and far from them into business decisions.
Influence of advertising and branding
Brand image and advertising of Coca-Cola are important parts that help up Coca-Colas
business execution as brand image is an inferred apparatus which can emphatically change
individuals' purchasing practices, and ad is behaving as a main thrust for any business as its a
viable source to pass on your message and stay in customers mind. The reason for this study is
to analyse the effect of brand picture and promotion on customer purchasing conduct in the
overall population at the world. New items are produced to suit clients as they get all the more
recognizing and sagacious inside the business, which brings about them altering their opinions
and needs. In a corporate perspective, another item could help outpace the opposition, react to
ecological dangers and open doors and oblige mechanical progressions (Report, 2010).
Growing the item portfolio anticipates equivalence and client weariness, or enhances an
adult item to augment its life-cycle. New items open up new markets and supplant or essentially

Coca-Cola Company Analysis

10
grow the business for the current item. An old item could be given another lease of life by being
acquainted with another business sector, given an alternate advertising approach or even simply
bundled in an unexpected way.
Operational Strategies
In the year 2010, Coca-Cola target was to attain 30 percent market share, which would
drive it as the leading soft-drink company in the world. The only way to develop true Coca-Colastyle systems in environments vastly different from those, for which the lean solution has already
been developed, is to apply the same principles that people in Coca-Cola have used to shape
what is recognized today as TPS (Teece, 2008). Applying the same thought process to a novel
environment will result in a Coca-Cola-style system customized for the particular conditions the
firm faces. This is not to say that the other perspectives described are wrong or useless. On the
contrary, a thorough understanding of how the tools work, their purpose, and how they fit
together to form an integral system is what will enable us to develop Coca-Cola-style systems in
less than the 70 years it took Coca-Cola.
The Coca-Cola production system does not seem to be the cause of the quality problems
experienced over the prior decade. In the past, Coca-Cola has exhibited a significant advantage
over its mass-producer competitors in physical and value-added productivity.
Many companies are deciding to go lean have struggled to figure out what that means in
their business. They may build to order or have highly engineered products or be in a pure
service organization like healthcare or banking and desire a vision for what lean looks like in
their business. Nevertheless, when they go and see a Coca-Cola plant they find it difficult to
relate. They see a highly repetitive and standardized process and cannot imagine how they can
replicate what they see.

Coca-Cola Company Analysis

11
Supply Chain Mechanism
The company has diverse chains that start from the suppliers to middle-level
intermediaries, manufacturers, direct suppliers, and final consumers. Ranging from small
suppliers to multinational suppliers the company gets its raw materials from a different area in
the world hence not specific defined suppliers but the far ranged suppliers are Japan and China.
The direct suppliers are mainly from Asia and Africa firms. The company has diverse ownership
of manufacturing companies all over the globe but mostly in Europe and United States.
However, the company has direct manufacturing Unit in Asia. Not to speak of intermediaries
that are all over the world, the company has opened its ways to almost each state in the world
that are changed over the selling as well as branding and marketing of its Soft-drinks.
Consumers, on the other hand, hold two-thirds of the supply chain.
Ethical Challenges that Coca-Cola Faces
There are various challenges that the company is facing. One of the challenges is that the
company has been pushed with constant technological changes that are happening in the world.
For a company to remain competitive as the competitors has always gone into extra costs to
ensure that it offered significant quality to the clients. The other challenge the company is
facing is ethical cultural adaptation in the target market (Mendona, Pereira & Godinho, 2007).
Business Recommendations
Despite the fact that Coca-Cola company is enjoying sales and production around the world
due to its unique brand, it has to make sure that it improves is social responsibility programs in
developing and third world countries that it sales is products.

Coca-Cola Company Analysis

12
References
Bartlett, C. A., & Ghoshal, S, 2009. Managing across borders: The transnational solution. New
York: Harvard Business School Press.
Creswell, J. W., 2007. Innovation as a Change Agent. Thousand Oaks: Sage Publication.
Freedman, R. D., & Vohr, J., 2009. Coca-Cola Company Innovation Strategies. Stern School of
Business ed. New York: New York University.
Marx, G. M., 2010. Technology in Action. Journal of Food Science, 12(2), pp. 1-23.
Mendona, S., Pereira, T. S., & Godinho, M. M, 2007. Trademarks as an indicator of innovation
and industrial change. Research Policy, 33(9), pp. 1385-1404.
Miller, D., 2008. Coca-Cola: a black sweet drink from Trinidad1. Material cultures, p. 129.
Ogden, J. R., & Ogden, D. T., 2014. Utilizing a strategic marketing approach to managing
marketing communications. San Diego: Bridgepoint Education, Inc..
Rangan, S., Adner, R., & Strategy, E. S., 2012. Pofits and the Internet. Chicago: MIT Sloan
Management Review.
Report, A. A., 2010. Innovations in Multinational Corporations. 1st ed. The United States: The
Africa Watch Committee.
Teece, D. J., 2008. Capturing value from technological innovation: Integration, strategic
partnering, and licensing decisions. Interfaces, 18(3), pp. 46-51.