The Coca Cola Final

7/30/2019 The Coca Cola Final

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THE COCA-COLA COMPANY

Stakeholder RelationshipIntroduction to Business

Prepared By

Name IdFalil Mohiuddin 0930083

20-Sep-10


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The Coca-Cola Company

ntroduction: The Coca-Cola Company is a beverage company, which was established in

1891 as the J. S. Pemberton Medicine Company, a co-partnership between Dr. JohnStithPemberton 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 Hair Dye, and

Pemberton's Globe Flower Cough Syrup. The company is best known for its flagship

product Coca-Cola, invented by pharmacist John Stith Pemberton in 1886. The Coca-Cola

formula and brand was bought in 1889 by Asa Candler who incorporated The Coca-Cola

Company in 1892. Besides its namesake Coca-Cola beverage, Coca-Cola currently offers more

than 400 brands in over 200 countries or territories and serves 1.6 billion servings each day.

The company operates a franchised distribution system dating from 1889 where The Coca-ColaCompany only produces syrup concentrate which is then sold to various bottlers throughout the

world who hold an exclusive territory.

The Coca-Cola Company is headquartered in Atlanta, Georgia. It has its worldwide operation in

more than 200 countries of the world.Its stock is listed on the NYSE and is part of DJIA, S&P

500 Index, the Russell 1000 Index and the Russell 1000 Growth Stock Index. Its current

chairman and CEO is MuhtarKent.The international operation of Coca Cola generates around 70

percent of income.

Revenue US$31.0 Billion (FY 2009)

Operating income US$8.23 Billion (FY 2009)

Net income US$5.82 Billion (FY 2009)

Total assets US$48.7 Billion (FY 2009)

Total equity US$24.8 Billion (FY 2009)[

Employees 92,800 (July 2010)


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Stakeholders are those people, organizations or parties who are effected by the

companysdecisions and actions. That means the parties who stand to gain or loss by policies and

theactivities of a business. The Stake holders can be the internal or the external group which caninfluence the organization.

As an organization coca-cola is also dealing successfully with different types of stakeholders

throughout the world. Among those stake holders according to coca-cola Company the important

stake holders are shown in the pie chart.

List of Important stakeholders

mployees: Employees are considered as internal stakeholder. TheCoca-Cola Company has

about 92,800 employees around the world. The Company considers their employees as their

secrete ingredient of success.The Coca-Cola Company has created such a work

environmentwhere they can bring the best out of their employeesby providing various facilities

like high salary, perfect transport system, training and many more to motivate their employees.

In return the employees of The Coca-Cola Company try to give their best performance and shear

their new innovative ideas with the company. That is why The Coca-cola Company uses this tagline Together, We Grow.

uppliers:Suppliers are those who provide different types of business resources like the raw

materials, ingredients of the product, packaging materials, machineries etc. Without the quality

full supply of those materials a company cannot produce good products and prosper in the

market. The Coca-Cola Company maintains a healthy relationship with their suppliers by


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providing them withmaximum benefits and in returns they get the quality full supports and

supplies from theirsuppliers.

GOs: In order to keep growing the business along with benefits of the society The Coca-

Cola Company works with some renowned NGOs. They rely on NGOs and public-privatepartnerships to inform and guide their policies and initiatives, as well as challenge them as they

work on complex and fast-changing issues such as climate change. Some of their key

stakeholders and partners include-World Resources Institute,WWF,Carbon Trust,Carbon

Disclosure Project, (WRAP),Beverage Industry Environment Roundtable (BIER),Water

Footprint Network, United Nations Global Compact and CEO Water Mandate, Global Reporting

Initiative (GRI) , Georgetown University McDonough School of Business.

hare olders nvestors and nalysts: Money is compared as the blood of a

business organization. The Coca-Cola Company gets their blood supply form theirinvestors, Share owners and they get their new strategies and ideas form the analysts. The

Investors and Shareholders and analysts plays important role on different type of decision

makings and for that The Coca-Coal Company repay them with high amount of profits,

dividend and provides safest and profitable investment plot for the investors.

ompetitors:At present time no country allows the monopoly business in their land. So when

a company produces their product in a market that company also has to look up to their

competitors offerings to the market. For The Coca-Cola Company there are some renowned

companies like PepsiCo. Inc., Nestl, Dr Pepper Snapple Group, Inc., Unilever etc. A good

decision of the competitors obviously affects the companies business and vice-versa.

overnment:The Coca-Cola Company runs their business more than200 countries in world.

So the company has to obey all the rules and regulation set by the governmentsof the countries

and that is how the government puts the impact on the business of the company. Not only that

The Coca-Cola Company provides jobs and pays taxes to the government on there profit which

is a contribution to the countries economy. So it is important for The Coca-Cola Company to

maintain good relationship with the governments to withstand and prosper their business and on

other hand the government tries to provide the best business friendly environment for thecompany.
http://crs.cokecce.com/stakeholders/ngos#WRIhttp://crs.cokecce.com/stakeholders/ngos#WWFhttp://crs.cokecce.com/stakeholders/ngos#CThttp://crs.cokecce.com/stakeholders/ngos#CThttp://crs.cokecce.com/stakeholders/ngos#CDPhttp://crs.cokecce.com/stakeholders/ngos#WRAPhttp://crs.cokecce.com/stakeholders/ngos#WFNhttp://crs.cokecce.com/stakeholders/ngos#WFNhttp://crs.cokecce.com/stakeholders/ngos#UNGChttp://crs.cokecce.com/stakeholders/ngos#GRIhttp://crs.cokecce.com/stakeholders/ngos#GRIhttp://crs.cokecce.com/stakeholders/ngos#GThttp://crs.cokecce.com/stakeholders/ngos#GThttp://crs.cokecce.com/stakeholders/ngos#GRIhttp://crs.cokecce.com/stakeholders/ngos#GRIhttp://crs.cokecce.com/stakeholders/ngos#UNGChttp://crs.cokecce.com/stakeholders/ngos#WFNhttp://crs.cokecce.com/stakeholders/ngos#WFNhttp://crs.cokecce.com/stakeholders/ngos#WRAPhttp://crs.cokecce.com/stakeholders/ngos#WRAPhttp://crs.cokecce.com/stakeholders/ngos#CDPhttp://crs.cokecce.com/stakeholders/ngos#CThttp://crs.cokecce.com/stakeholders/ngos#CThttp://crs.cokecce.com/stakeholders/ngos#WWFhttp://crs.cokecce.com/stakeholders/ngos#WRI


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ustomer:The main focusof The Coca-Cola Company is their customers.A customer is

usually used to refer to a current or potential buyer or user of the products.The Coca-Cola

Company works collaboratively with their customers. If The Coca-cola Company did not satisfy

their customers needs they would not have their business speared world wide. The customers of

Coca-cola also share their reviews and ideas about the products, environment issue, and energy

saving issue. This how this two parties puts their impact on each other.

onsumers: Consumers are the ultimate user of the product. The Coca-Coal Company

invents and produces theirbeverages according to their consumers satisfaction and need. It is

avital condition for The Coca-Cola Company to grow their business by keeping their consumers

satisfied with their product. The Coca Cola Company got 982,772 inquiries by phone, email or

mail in the year 2009. The majority (93%) was general enquiries; only 7% were quality-related.

So to say the most important stake holder for The Coca Cola Company is there consumers and

they are all policy, invention and strategies are all concentrates on their consumers.

CRITICAL STAKEHOLDRES

Customer: No business can run and flourish without customer, which is also an exact fact forCoca Cola Company also. A customer is usually used to refer to a current or potential buyer or

user of the products of an individual or organization. This is typically through purchasing or

buying goods and services. Coca cola customers include large international chains of retailers

and restaurants and small independent businesses. Company work with them equally to create

mutual benefit. Customers of this company continually looking for ways to reduce costs,

CRITICAL

STAKEHOLDERS

CUSTOMER

EMPLOYEES

COMPITETORS

SUPPLIERSHARE

HOLDERS


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improve sales and profits, and deliver better-quality, more diverse products to consumers.

Company also works to create additional value for their customers by anticipating their demands

and interests and to proactively deliver viable solutions for their businesses and company also

provide support to smaller customers to help make their businesses more efficient and profitable.

Company also works with customers to broaden the range of beverages they offer, provide

nutritional information and ensure our beverages are marketed responsibly.These reasons make

customer a critical stakeholder among others.

mployees: A company cannot run without employees because employees are the main

workforce of a company. As a stakeholder employees are important too because employees are

needed in everywhere from start to finish of a company. The employees of the Coca Cola

Company are treated as their assets since the employees drive their business results through their

dedication to operational excellence, diverse perspectives and innovative thinking. Recognizing

the importance of the employees of their business, The Coca-Cola Company strives to be a great

place to work, where people are inspired to be the best they can be and can create extraordinaryresults every day, in every country in which they operate. Company also provide various

facilities like high salary, perfect transport system and many more to motivate their employees

and employees also give their best to make this company one of the best and profitable in this

competitive epoch of business that is why company treat employees as an important stake holder.

To encourage a work environment of open communication and to effectively solicit and leverage

innovative ideas, company engages in frequent dialogue with our associates around the world.

Such dialogue provides us with valuable information, increases awareness, promotes business

strategies, shares successes and opportunities, and solicits employee opinions.

upplier: Supplier is also an important stakeholder as they supply the raw materials of the

products which are the core part of a product and without those materials product cannot be

produced in themarket. Suppliersofthe coca cola company provide their system with materials,

including ingredients, packaging and machinery.Coca Cola Company buys their raw materials

from multiple suppliers and for that suppliers need to satisfy company by providing best raw

materials as they are being paid maximum. And sometimes companybelieve that ownership

interests in certain suppliers, participation in cooperatives, and the self-manufacture of certain

packages serve to ensure supply and to reduce or manage companys costs. Suppliers supply raw

materials as raw materials are a pre-requisite for a product and company sells those products in a

market and make profit which also makes suppliers are one of the critical stakeholders.

hare olders:Shareholders are also known as investor and an investor is someone who

commits capital in order to gain financial returns for any company investors are the most

important stakeholders because no company cannot run without money. Money is needed in

every phase of a business from start to finish. Coca Cola Company is a profitable company in


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recent times that is the prime reason for their investors to invest in this company as they receive

very high amount of profit on their investment. Even according to some investors it is the safest

for investing their money which builds companys reputation and works as an asset.

At the end of the day everyone in the company from caretaker to Chief Executive Officer wants

to see profit and without investment profit is impossible that is why investor is really important

for the company. Investors who are interested in purchasing stock in Coca-Cola Company must

purchase their initial shares through a bank or broker and register the shares in their name. The

company does not currently sell initial shares directly to the public. Coca-Cola Enterprises offersa Dividend Reinvestment and Cash Investment Plan to all registered shareowners. The Plan is an

economical and efficient means of reinvesting dividends and purchasing additional

shares.Investor invests money in this company and company do more business and make more

money for investor that is why investors are as critical as other stake holder.

ompetitors:Competitors are also a critical stakeholder for a business.There is no meaning

of doing business without competition. A business can start easily but it is hard to survive in

market. Competitors are important because, when a business faces a tough competition or littlecompetition then that business thinks of improvement of that product. The nonalcoholic

beverages segment of the commercial beverages industry is highly competitive. The Coca Cola

Company competes with major international beverage companies that, like this Company,

operate in multiple geographic areas, as well as numerous firms that are primarily local

inoperation. In many countries in which Coca Cola Company do business, including the United

States, PepsiCo, Inc. is a primary competitor. Other significant competitors include, but are not

limited to, Nestl, Dr Pepper Snapple Group, Inc., GroupeDanone, Kraft Foods Inc. and

Unilever. In addition, in certain markets, companys competition includes major beer companies.

Coca Cola Company has ability to gain or maintain share of sales or gross margins in the global

market or in various local markets may be limited as a result of actions by competitors

MOREINVESTMENT

MOREBUSINESS

MOREPROFIT


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References

Coca-Cola : The Coca-Cola Company September 05 2010 Retrieve from:http//: the coco-cola company. com

Wikipedia September 05 2010 Retrieve from:http//: en. wikipedia. org

Coca-Cola : Landing page September 06, 2010 Retrieve from:http//: 216.64.209.164/ index. html

Coca-Cola Enterprise September 07, 2010 Retrieve from:http//: crs. cokecce. com

Basic APA Style September 15, 2010 Retrieve from:http:// flash1r . apa. org /apastyle/ basics/ index. htm

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The Coca Cola Final