I.

Statement of the Problem

1. How will the existing dysfunctional culture brought by different management

styles from different CEO’s and meddling aged Board of Directors will affect the
Coca-Cola Company as the giant manufacturer in the market, sales, stocks and
acquisitions of new companies?
2. What are Coca-Cola’s comprehensive plans to avoid conflicts due to the
increasing price hikes of Bottler’s company?
3. How will the lackluster marketing of Coca- Cola Co. Improve its growth with
advance technology, innovation and diversification?
4. What are the current problems in the international market to address products
that is aligned to locals culture and taste?

II. Areas for Consideration

Strengths
 Worlds most recognized global brand
 In spite of dysfunctional culture in the organization, Coca-Cola Company remains
the giant carbonated beverage manufacturer in the world.
 Coke stock soared to 3,500% during Goizueta’s 16-yr reign in the company.
 Coca-Cola Company have powerful notorious and powerful triumvirate Board of
Directors
 Coke has the largest distribution channel
Weaknesses

 Dysfunctional culture that exists in the company for a long time.

 Coca-Cola Company failed to acquire or buy-out new companies because of
slow management deliberation, thus, product development introduced in the
market is limited.
 Resistance to change; the adaptability in embracing new management styles
and still strictly enforced obedience to Goizueta’s way.
 Limited product mix hence focusing only on carbonated beverage.
 Absence in health beverages
Opportunities

 Acquiring big and good companies for growth of company.

 Introducing new product lines in the market to heightened competition, thus,
increasing the stocks of the company.
  Market the lesser selling product. In Coca-Cola's product portfolio, there are
several products that have not found acceptance in the market.
 Diversification in the health and food business will improve the offerings of
Coca-Cola to its customers
Threats

 Pepsi may outweigh Coca-Cola Company in terms of sales and profits.

 Diversification of product lines of their competitor that can capture large
market.
 Indirect competitors such company that offer healthy products, e. g. Real and
Tropicana. This may not be big competition with coke but it could give a dent to
its beverage market.

III. Alternative Course of Action

1. Product Innovation and Diversification.
2. Advance marketing strategies.
3. Improve management style by taking into consideration new CEO’s platform and
plans.
4. The products produced in each country must maintain the rigid standards across
its system to protect the brand, assure supply standards, and control the
manufacturing process. This is to address products that are associated with the
local culture and taste of each country.
5. Switching to plastic bottles and cans to reduce costs in bottling.

IV. Areas of Consideration (Analysis)

Coca- Cola Company is currently struggling to restore great things back and to
continue to be the giant/leading producer of carbonated drinks in the world.
Technology Advancement, Innovation and Diversification.
Advantage:

 Product innovation and diversification will capture large market population by

offering different product lines and brands.
Disadvantage:

 If the company will innovate and diversified into new product lines, there’s a
possibility these products may outweigh the primary product line which is
“Coke”.
Advance marketing strategies.
Advantage:

Advance marketing strategies will boost company’s sales and earnings. Likewise this will
attract more people to patronize their products and promote their tag line “Open
happiness” through advertisement.

Disadvantage:

Advance marketing strategies is costly and expensive for the company.

Improve management style by taking into consideration new CEO’s platform and plans.
Advantage:

Opportunities to see new sets of ideas and marketing strategies that are in up-to-date
and can compete with other companies.

New set of opportunities will be seen, new marketing styles may emerge and modern
marketing strategies may be discovered and executed.

Disadvantage:

The workforce may find it difficult to adapt with changes since they used to stick with
the traditional style.

Products that are associated with the local culture and taste of each country.
Advantage:

Introducing such in key geographic area would possibly suit the taste of its consumers,
leading to product satisfaction and patronization.

Disadvantage:

Consider the possibility of consumers' turn down of the product. The product's
succession may be at risk.
V. Conclusion and Recommendation
In conclusion, Coca-Cola Company has been known to be world’s largest beverage
company in the history, refreshing consumers with more than 500 sparkling and still one
of the brands and nearly 3,900 beverage choices. Coca-Cola, as the flagship product of
Coca-Cola Company, one of the world’s most valuable and recognizable brands with
company’s portfolio of $21 billion brands, this includes 19 products available in reduced-
, low- or no-calorie options. In fact, Coca-Cola Company is the no. 1 provider for both
sparkling and still beverages through the world’s distribution system. In detail, over 200
countries worldwide are enjoying more than $1.9 billion servings of beverages each day.
Over the years, Coca-Cola Company has a successful track-record of product innovation
in the low-calorie beverage category, with the introduction of Tab in 1963 and Diet Coke
in 1982. By 1986, Diet Coke became the world’s top-selling diet cola and continues to
uphold that title today. Coca-Cola remains the giant carbonated manufacturer and
committed to paying attention to consumers’ changing needs as well as cultural
diversity in what people like to drink and how they drink it. That commitment is evident
in initiatives from a group dedicated to identifying emerging brands to innovation in
packaging and recycling programs. In addition, Coca-Cola Company ensures that the
product produced in each country must undergo different tests to ensure that
ingredient and packaging quality meets company standards and uphold its quality in
every sip.
However, there are still areas of consideration in the Coca-Cola Company, like any other
giant companies in the market today. Competition to be the leading carbonated soft
drink manufacturer in the world are very challenging and holistic. Coca Cola remained
on the top of the industry. Over the past decades, Coca Cola exhibited the efficient
change management as the part of the strategic management process. Change
management is the process in which it manages the change in the side of the people.
Their individual change management and the organizational change management are
the theories of the change management. Aside from the theories , there are also four
strategies of the change management which are the Empirical rational , the normative
reductive , power coercive and the environmental adaptive which the company has
been successfully adopted but it is now facing major jolts in its business operations and
the competitors are gaining the advantage out of the same.
The success that the management team has in motivating its employees to meet their
objectives is based on the management style they adopt . There are three main
management styles democratic , autocratic and the laissez-faire style .
The democratic leadership style consists of the leader , sharing the decision
making abilities with the group members by promoting the interests of the group
members and by practicing social equality . The authoritarian leadership
style or autocratic leader keeps strict , close control over the followers by keeping close
regulation of the policy’s and procedures given to the followers . To keep main emphasis
on the distinction of the authoritarian leader and their followers , these types of the
leaders make sure to only create a distinct professional relationship . The laissez-
faire leadership style was first introduced by the Lewin , Lippitt and White in 1938 ,
along with the autocratic leadership and the democratic leadership styles . The laissez
faire style is sometimes described as the ” hands off ” leadership style because the
leader delegates the tasks to their followers , while providing little or no direction to the
followers.
In addition, we would like also to recommend the importance of technology
advancement, innovation and diversification or acquisitions of other well-known
companies in the market. Over the past decade , the Coca Cola Company has invested
around $60 million in the research and development to advance the use of the climate
friendly , hydrofluorocarbon (HFC) free cooling technologies . HFC gas is the well known
contributor to our planet’s global warming . The Company has improved their energy
efficiency of the cooling equipment by around 40% , transitioned to HFC free insulation
foam for the new equipment , eliminating around 75% of the direct GHG emissions and
is phasing out the use of HFCs in all the new cold-drink equipment as of 2015, with more
than 500,000 units of the HFC free refrigerated equipment already in use throughout
the Coca Cola system . In the bottling plants , the Coca Cola has stabilized the emissions
system wide and is working to return to the 2004 levels , while also achieving the 5%
absolute emissions reduction below the 2004 baseline in the developed countries by
2015 , with the commitment to ” grow their business without growing the carbon ” in its
manufacturing operations .

Innovation at Coca-Cola Company is inevitable. Coca Cola has been able to survive in
this changing market because of its ability to systematically innovate and to deliver the
new products. It was apparent that the market was changing and in order to keep up
with these changes . The company began operating in the decentralized environment
that was unfeasible in the previous years . Now the Coca Cola offers around 400
different products and is dominating the beverage industry . This is made possible by
the company’s ability to innovate and adapt to the changing markets.

Technology is continually changing the business and these constant changes have been
making it more feasible and profitable for the businesses to expand their operations
globally . Now the Coca Cola is taking the advantage of the large revenue opportunities ,
made possible by participating in the global market and it now offers products in nearly
200 countries around the world . Technological change creates the opportunities for the
new products and product improvements and of course the new marketing techniques .
Some factors that cause company’s actual results to differ materially from the expected
results are as follows :
The new technology of the internet and television which use special effects for the
advertising through the media. They make some products look very attractive . This
helps in the selling of the products .

Introduction of the cans and the plastic bottles have increased sales for the Coca Cola as
these are very easier to carry and one can easily bin them once they are used .

Due to the introduction of these machineries , the production of the Coca Cola company
has been increased vastly then it was a few years ago .