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Coca-ColaSydne Collier
Amanda HainesJacob Johnson
Eric LaunerKatie Shaw
Zachary SlagleMark Weyandt
Introduction
Brief History of Coca-Cola Company
Business Operation
Industry Analysis
Company Capability
Environmental Analysis
Competitors
Performance Indicators
History
John Pemberton, created the syrup in 1886
Asa Candler took control of the Company in 1891 after the death of Pemberton
1916, the unique contour bottle was introduced.
125 years later, Coca-Cola Company has marketed over 400 brands and over 2600 different products in over 200 countries worldwide.
Organizational Life Cycle
• Phase 1 – Initiation
• Phase 2 – Formalization
• Phase 3 – Expansion
• Phase 4 – Coordination
• Phase 5 - Participation
1886-1905
Birth of Coca-Cola
Shareholders
Growth
1905-1923
Formulation
Introduced Bottle
New Places
Stock Prices
1923-1980
Robert Woodruff
WWII
Great Depression
1980-Current
Diet Coke
Sports
120 countries
1 billion servings per day
Coca-Cola Organizational Chart
Industry Analysis
Ease of Entry
Growth within Industry
Intensity of Competition
Industry Analysis (Cont.)
Substitute Products
Bargaining Power
Technology
Innovation
Managerial Factors
Social responsibility◦Veterans Day celebration
Organizational structure: decentralized
Ability to attract and retain people
Meeting competition
Competitive Factors
Customer loyalty and satisfactionMarket shareInvestment in research and
developmentSupplier strength
Financial Factors
Access to capital
Profitability
Financial stability
Technical Factors
Level of technology used
Production effectiveness◦Invest $30 billion in new equipment
Newness of equipment and technology◦$100 contract with Dell
Strength of patents
Environmental Scan
Economic Factors◦Recession
Political Factors◦Childhood Obesity and New York
Social Factors◦25 and under
Environmental Scan
Technological Factors◦PlantBottle
Competitive Factors◦Pepsi
Geographical Factors◦200+ countries
Coca Cola’s Competitors
Top selling soft drink company in the world
Main competitors◦PepsiCo
Company(Pepsi)◦The Dr. Pepper
Snapple Group(Dr. Pepper)
Financial Comparisons
Total Revenue
Net Income Total Employees
Coke 47.6 Billion 8.8 Billion 146,200
Pepsi 65.70 Billion 5.92 Billion 297,000
Dr. Pepper 5.97 Billion 625 Million 19,000
What they Compete On
Regular Cola◦ Coke Leader
Diet Cola◦ Diet Coke Leader
Lemon Lime ◦ Sprite Non caffeinated leader, Mountain Dew caffeinated
LeaderOrange Flavored
◦ Fanta LeaderRoot Beer - A&W Leader
Future Success
Coke is obviously the most successful soft drink out there
Less people drink Soda
Have to be innovative to continue to be leader
Market Share
Industry Leaders◦Coca Cola: 43%◦Pepsi Co: 31 %◦Cadbury Scweeps: 18 %◦Other: 8%
Sales Growth
Increasing trend in revenue
2011 fiscal year first quarter◦Increase in net income by 18%
Annual divided yield◦High compared to other companies
SWOT Analysis
Strengths Weaknesses
Leading brandsCustomer
loyalty/relationshipsManagementProduction Quality
◦ Bottling process
Weak Brands◦ Odwalla
Poor access to distribution
ManagementLow customer
retention
SWOT Analysis
Opportunities Threats
Changing customer tastes
Technological advances
Change in population age
New distribution channels
Closing of geographic markets
Technological advances
Tax increasesChange in population
ageNew distribution
channels
Competitive Strength Assessment
Key Success Factors◦Quality/product performance◦Reputation/image◦Customer service capability◦Technological skills◦Manufacturing capability◦Marketing distribution◦Financial strength◦Relative cost position
Strategic Issues
Employees offering to sell trade secrets
International problems related to unions
Trouble with distributers
Inflated earnings
Racial discrimination
Contamination scares
Improving the Company
Corporate Giving◦Water stewardship◦Healthy and active lifestyles◦Community recycling◦Education
