Coca cola Business Introduction and Overview

Mark Edison Bautista
Mark Edison BautistaIntern at USAID-TRADE to the Department of Trade and Industry à USAID-TRADE, Department of Trade and Industry Philippines
Coca cola Business Introduction and Overview
Coca cola Business Introduction and Overview
Coca cola Business Introduction and Overview
Coca cola Business Introduction and Overview
Coca cola Business Introduction and Overview
Coca cola Business Introduction and Overview
Coca cola Business Introduction and Overview
Coca cola Business Introduction and Overview
Coca cola Business Introduction and Overview
BAUTISTA M. | BAUTISTA P. | RANA | MERINO | GONZALES | VILLANUEVA
OUTLINE
Short History
Industry and Industry Standing
Major Competitors
Top Management Team
Product line and major brands
Business Performance Highlights
Company Mission, Vision, Values,
Philosophy, Principles
SHORT HISTORY
1886
Coca Cola
BORN
1891
Coca Cola’s first
BOTTLINGIn a drug store occurre
d
Georgia by John Pemberton Asa Griggs Candler
Georgia by John Pemberton
Asa Griggs Candler
Coca-Cola was made for the cure of
headache
and other illnesses
Sales for the first year were only
$50
Only 9
servings of the soft drink were sold
each day
1899
The first bottling
was done
AGREEMENT
1909
400 Coca-Cola plants
were operating
BOTTLING
1912
The company opened in the
PHILIPPINES
1960
New
BRANDS
were
Introduced
1985 2000
Attempts to renew the
FORMULA
Most valuable brand in the
WORLD
Industry and
Industry Standing
Commercial Beverage
Industry:
Standing:
3rd Best Company Worldwide
Best Company in the
Beverage Industry Worldwide
Industry Standing:
Coca cola Business Introduction and Overview
Worldwide Share
Worldwide Share
Worldwide Performance
COCA COLA BUSINESS MODEL
BUSINESS MODEL
COCA-COLA
Coca cola Business Introduction and Overview
Coca cola Business Introduction and Overview
MAJOR COMPETITORS
Global Competitors
•PepsiCo Inc.
•Dr Pepper
•Suntory
•Unilever,
•Groupe Danone,
•Kraft Foods Inc.,
•Nestlé S.A. and others.
Comparison of Financial Performance
Coca-Cola Pepsi Dr. Pepper Snapple
Coca-Cola Pepsi Dr. Pepper
Diet Coke Mountain Dew 7-UP
Fanta Sierra Mist Schweppes
Sprite Mug Root Beer A&W Root Beer
Barq's Diet Pepsi Sunkist
Product Line vs. Competitors
TOP MANAGEMENT TEAM
Muhtar Kent
● Currently the Chairman
of Board of Directors
● Served the company as
the Chairman and CEO
in 2009-2017
James Quincey
● Formerly the president
of the coca cola
company’s europe
group.
● The president and CEO
of the company.
Francisco Crespo Benítez
● Senior Vice President and
Chief Growth Officer of The
Coca-Cola Company.
● Previously served as the
President of The Coca-Cola
Company’s Mexico business
unit.
● In this role, Crespo led the
company’s operations across
its second-largest global
market.
J. Alexander M.
Douglas, Jr.
● President of Coca-Cola
North America.
● Former Senior Vice
President and Global Chief
Customer Officer.
Irial Finan
● Executive vice president of The
Coca-Cola Company and president
of Bottling Investments Group
(“BIG”).
● He has responsibility for
operations with more than $15
billion in revenues and more than
45,000 employees.
Bernhard Goepelt
● Senior Vice President, General
Counsel and Chief Legal Counsel of
The Coca-Cola Company.
● He was the Associate general
counsel of global marketing,
commercial leadership and strategy
of atlanta and also managed the
administration of legal division
Robert Long
● Senior Vice President and
Chief Innovation Officer of
The Coca-Cola Company.
● In this role, he leads work
to accelerate the growth of
the company’s consumer-
centric brand portfolio with
hundreds of new products and
continued innovation.
Jennifer Mann
● Senior Vice President and
Chief People Officer, as well
as Chief of Staff for The
Coca-Cola Company’s President
and CEO, James Quincey.
● Mann accelerated the global
expansion and led its
development across the Coca-
Cola system.
Barry Simpson
● Chief Information Officer of
The Coca-Cola Company.
● In his role, Simpson oversees
all of the company’s global
information technology
strategy, services and
operations.
Craig Williams
● Senior Vice President and
President of the McDonald's
Division of The Coca-Cola
Company.
● He leads a global organization
that is responsible for
building the strategic alliance
with McDonald's in over 35,000
restaurants in more than 100
countries.
Kathy N. Waller
● Executive Vice President,
Chief Financial Officer
and President, Enabling
Services of The Coca-Cola
Company.
● In this role, Waller is
responsible for
overseeing the company’s
key strategic governance.
Beatriz Perez
● Chief Public Affairs,
Communications and Sustainability
Officer for The Coca-Cola Company.
● Aligns a diverse portfolio of work
against critical business
objectives to support brands,
communities, consumers and partners
worldwide. Oversees the Company’s
sports and entertainment assets
such as olympics and FIFA.
Product Line and
Major Brands
Product Line and Major Brands
Coca cola Business Introduction and Overview
Business Performance Highlights
TOTAL CURRENT ASSET: $ 34 Billion
TOTAL LONG-TERM ASSET: $87 Billion
TOTAL ASSET: $ 127 Billion
Coca cola Business Introduction and Overview
Number of worldwide Coke employees
150,900
Revenue Performance:
Period
Ending:
12/31/2016 12/31/2015 12/31/2014 12/31/2013
Total
Revenue:
$41,863,000 $44,294,000 $45,998,000 $46,854,000
Cost of
Revenue:
$16,465,000 $17,482,000 $17,889,000 $18,421,000
Gross Profit: $25,398,000 $26,812,000 $28,109,000 $28,433,000
Coca-Cola Company FY 2014 Revenues By Business Segments
• Of the total $45.9 billion revenues, Coca-Cola Company generated
• $17.5 billion revenues, 38% of the total, from the concentrate business
• $28.5 billion revenues, 62% of the total from the finished product business
Coca-Cola Company Business Segments Revenues
and Revenue Share- FY
WHY THE DECLINING REVENUE
• New Demographics
• More people are becoming health conscious
• They see coca-cola as equivalent to sugar = obesity
• Prefer non-carbonated drink
• Divestiture
• After years of snail-paced progress, the beverage giant is
now racing to sell off its US manufacturing and
distribution operations by next year so it can focus on its
much more profitable concentrate-making business.
• This wholesale divestment push wasn’t exactly what Coke had
in mind when it acquired its largest bottler for $12.3
billion ($16bn) six years ago.
Coca cola Business Introduction and Overview
Mission
Vision
Values
Philosophy
Mission:
•To refresh the world.
•To create value and make a difference.
•To inspire moments of optimism and happiness.
Vision:
People: Be a great place to work
where people are inspired to be
the best they can be.
Portfolio: Bring to the world a
portfolio of quality beverage
brands that anticipate and satisfy
people's desires and needs.
Partners: Nurture a winning
network of customers and
suppliers, together we create
mutual, enduring value.
Planet: Be a responsible citizen
that makes a difference by helping
build and support sustainable
communities.
Profit: Maximize long-term return
to shareowners while being mindful
of our overall responsibilities.
Productivity: Be a highly
effective, lean and fast-moving
organization.
Values:
Leadership: The courage to shape a
better future
Collaboration: Leverage collective
genius
Integrity: Be real
Accountability: If it is to be, it's up
to me
Passion: Committed in heart and mind
Diversity: As inclusive as our brands
Quality: What we do, we do well
Focus on the market:
•Focus on needs of
our consumers,
customers and
franchise partners
•Get out into the
market and listen,
observe and learn
•Possess a world
view
•Focus on execution
in the marketplace
every day
•Be insatiably
curious
Work smart:
•Act with urgency
•Remain responsive
to change
•Have the courage
to change course
when needed
•Remain
constructively
discontent
•Work efficiently
Act like owners:
•Be accountable for
our actions and
inactions
•Steward system
assets and focus on
building value
•Reward our people
for taking risks
and finding better
ways to solve
problems
•Learn from our
outcomes -- what
worked and what
didn’t
Philosophy:
We have and continue to focus on all three of the
components that must be put in place in a corporate
context under the Principles:
•A policy commitment to meet the responsibility to respect
human rights;
•A due diligence process to identify, prevent, mitigate and
be accountable for human rights abuses; and
•Processes to enable the remediation of any adverse human
rights impacts the Company causes or to which it
contributes.
References:
The Coca-Cola Company Annual Report 2016. www.coca-
colacompany.com/content/dam/journey/us/en/private/fileassets/pdf/investors/2016-AR-10-K.pdf.
The Coca-Cola Company. A Short History of the Coca-Cola Company. 2011. www.coca-
colacompany.com/content/dam/journey/us/en/private/fileassets/pdf/2011/05/Coca-Cola_125_years_booklet.pdf.
The Coca-Cola Company. "Coca-Cola History │ World of Coca-Cola." World of Coca-Cola, www.worldofcoca-cola.com/about-us/coca-
cola-history/.
The Coca-Cola Company. "Coca-Cola Journey." The Coca-Cola Company, www.coca-colacompany.com/.
The Coca-Cola Company. "The Coca-Cola Company Announces New International Structure, Promotes Key Leaders." The Coca-Cola
Company, 24 May 2016, www.coca-colacompany.com/press-center/press-releases/the-coca-cola-company-announces-new-international-
structure-promotes-key-leaders.
Interbrand. "Rankings - 2016 - Best Global Brands - Best Brands." Interbrand, 2016, interbrand.com/best-brands/best-global-
brands/2016/ranking/.
McWilliams, Jeremiah D. "Coca-Cola No. 3 on Most Valuable Brands Ranking." The Coca-Cola Company, 5 Oct. 2016, www.coca-
colacompany.com/coca-cola-unbottled/coca-cola-no-3-on-most-valuable-brands-ranking.
Morningstar, Inc. "KO: Coca-Cola Co Top Competitors and Peers." Welcome to Financials.morningstar.com, 2017,
financials.morningstar.com/competitors/industry-peer.action?t=KO.
Nasdaq. "Coca-Cola Company (The) (KO) Income Statement." NASDAQ.com, 12 June 2017,
www.nasdaq.com/symbol/ko/financials?query=income-statement.
The Coca-Cola Company. "Mission, Vision & Values: The Coca-Cola Company." The Coca-Cola Company,
www.coca-colacompany.com/our-company/mission-vision-values.
---. "Our Approach Human and Workplace Rights: The Coca-Cola Company." The Coca-Cola Company,
www.coca-colacompany.com/our-company/human-workplace-rights.
---. "Strategic Pillars: The Coca-Cola Company." The Coca-Cola Company, www.coca-colacompany.com/our-company/diversity/strategic-
pillars.
---. "Senior Leadership: The Coca-Cola Company." The Coca-Cola Company,
www.coca-colacompany.com/our-company/senior-functional-leadership.
Staff, Journey. "Supplier Guiding Principles: The Coca-Cola Company." The Coca-Cola Company,
www.coca-colacompany.com/our-company/supplier-guiding-principles.
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Coca cola Business Introduction and Overview

  • 10. BAUTISTA M. | BAUTISTA P. | RANA | MERINO | GONZALES | VILLANUEVA
  • 11. OUTLINE Short History Industry and Industry Standing Major Competitors Top Management Team Product line and major brands Business Performance Highlights Company Mission, Vision, Values, Philosophy, Principles
  • 13. 1886 Coca Cola BORN 1891 Coca Cola’s first BOTTLINGIn a drug store occurre d Georgia by John Pemberton Asa Griggs Candler
  • 14. Georgia by John Pemberton
  • 16. Coca-Cola was made for the cure of headache and other illnesses
  • 17. Sales for the first year were only $50
  • 18. Only 9 servings of the soft drink were sold each day
  • 19. 1899 The first bottling was done AGREEMENT 1909 400 Coca-Cola plants were operating BOTTLING
  • 20. 1912 The company opened in the PHILIPPINES 1960 New BRANDS were Introduced
  • 21. 1985 2000 Attempts to renew the FORMULA Most valuable brand in the WORLD
  • 23. Commercial Beverage Industry: Standing: 3rd Best Company Worldwide Best Company in the Beverage Industry Worldwide
  • 29. COCA COLA BUSINESS MODEL BUSINESS MODEL COCA-COLA
  • 33. Global Competitors •PepsiCo Inc. •Dr Pepper •Suntory •Unilever, •Groupe Danone, •Kraft Foods Inc., •Nestlé S.A. and others.
  • 34. Comparison of Financial Performance
  • 35. Coca-Cola Pepsi Dr. Pepper Snapple Coca-Cola Pepsi Dr. Pepper Diet Coke Mountain Dew 7-UP Fanta Sierra Mist Schweppes Sprite Mug Root Beer A&W Root Beer Barq's Diet Pepsi Sunkist Product Line vs. Competitors
  • 37. Muhtar Kent ● Currently the Chairman of Board of Directors ● Served the company as the Chairman and CEO in 2009-2017 James Quincey ● Formerly the president of the coca cola company’s europe group. ● The president and CEO of the company.
  • 38. Francisco Crespo Benítez ● Senior Vice President and Chief Growth Officer of The Coca-Cola Company. ● Previously served as the President of The Coca-Cola Company’s Mexico business unit. ● In this role, Crespo led the company’s operations across its second-largest global market. J. Alexander M. Douglas, Jr. ● President of Coca-Cola North America. ● Former Senior Vice President and Global Chief Customer Officer.
  • 39. Irial Finan ● Executive vice president of The Coca-Cola Company and president of Bottling Investments Group (“BIG”). ● He has responsibility for operations with more than $15 billion in revenues and more than 45,000 employees. Bernhard Goepelt ● Senior Vice President, General Counsel and Chief Legal Counsel of The Coca-Cola Company. ● He was the Associate general counsel of global marketing, commercial leadership and strategy of atlanta and also managed the administration of legal division
  • 40. Robert Long ● Senior Vice President and Chief Innovation Officer of The Coca-Cola Company. ● In this role, he leads work to accelerate the growth of the company’s consumer- centric brand portfolio with hundreds of new products and continued innovation. Jennifer Mann ● Senior Vice President and Chief People Officer, as well as Chief of Staff for The Coca-Cola Company’s President and CEO, James Quincey. ● Mann accelerated the global expansion and led its development across the Coca- Cola system.
  • 41. Barry Simpson ● Chief Information Officer of The Coca-Cola Company. ● In his role, Simpson oversees all of the company’s global information technology strategy, services and operations. Craig Williams ● Senior Vice President and President of the McDonald's Division of The Coca-Cola Company. ● He leads a global organization that is responsible for building the strategic alliance with McDonald's in over 35,000 restaurants in more than 100 countries.
  • 42. Kathy N. Waller ● Executive Vice President, Chief Financial Officer and President, Enabling Services of The Coca-Cola Company. ● In this role, Waller is responsible for overseeing the company’s key strategic governance. Beatriz Perez ● Chief Public Affairs, Communications and Sustainability Officer for The Coca-Cola Company. ● Aligns a diverse portfolio of work against critical business objectives to support brands, communities, consumers and partners worldwide. Oversees the Company’s sports and entertainment assets such as olympics and FIFA.
  • 44. Product Line and Major Brands
  • 47. TOTAL CURRENT ASSET: $ 34 Billion TOTAL LONG-TERM ASSET: $87 Billion TOTAL ASSET: $ 127 Billion
  • 49. Number of worldwide Coke employees 150,900
  • 50. Revenue Performance: Period Ending: 12/31/2016 12/31/2015 12/31/2014 12/31/2013 Total Revenue: $41,863,000 $44,294,000 $45,998,000 $46,854,000 Cost of Revenue: $16,465,000 $17,482,000 $17,889,000 $18,421,000 Gross Profit: $25,398,000 $26,812,000 $28,109,000 $28,433,000
  • 51. Coca-Cola Company FY 2014 Revenues By Business Segments • Of the total $45.9 billion revenues, Coca-Cola Company generated • $17.5 billion revenues, 38% of the total, from the concentrate business • $28.5 billion revenues, 62% of the total from the finished product business Coca-Cola Company Business Segments Revenues and Revenue Share- FY
  • 52. WHY THE DECLINING REVENUE
  • 53. • New Demographics • More people are becoming health conscious • They see coca-cola as equivalent to sugar = obesity • Prefer non-carbonated drink • Divestiture • After years of snail-paced progress, the beverage giant is now racing to sell off its US manufacturing and distribution operations by next year so it can focus on its much more profitable concentrate-making business. • This wholesale divestment push wasn’t exactly what Coke had in mind when it acquired its largest bottler for $12.3 billion ($16bn) six years ago.
  • 56. Mission: •To refresh the world. •To create value and make a difference. •To inspire moments of optimism and happiness.
  • 57. Vision: People: Be a great place to work where people are inspired to be the best they can be. Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs. Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value. Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities. Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities. Productivity: Be a highly effective, lean and fast-moving organization.
  • 58. Values: Leadership: The courage to shape a better future Collaboration: Leverage collective genius Integrity: Be real Accountability: If it is to be, it's up to me Passion: Committed in heart and mind Diversity: As inclusive as our brands Quality: What we do, we do well
  • 59. Focus on the market: •Focus on needs of our consumers, customers and franchise partners •Get out into the market and listen, observe and learn •Possess a world view •Focus on execution in the marketplace every day •Be insatiably curious Work smart: •Act with urgency •Remain responsive to change •Have the courage to change course when needed •Remain constructively discontent •Work efficiently Act like owners: •Be accountable for our actions and inactions •Steward system assets and focus on building value •Reward our people for taking risks and finding better ways to solve problems •Learn from our outcomes -- what worked and what didn’t Philosophy:
  • 60. We have and continue to focus on all three of the components that must be put in place in a corporate context under the Principles: •A policy commitment to meet the responsibility to respect human rights; •A due diligence process to identify, prevent, mitigate and be accountable for human rights abuses; and •Processes to enable the remediation of any adverse human rights impacts the Company causes or to which it contributes.
  • 61. References: The Coca-Cola Company Annual Report 2016. www.coca- colacompany.com/content/dam/journey/us/en/private/fileassets/pdf/investors/2016-AR-10-K.pdf. The Coca-Cola Company. A Short History of the Coca-Cola Company. 2011. www.coca- colacompany.com/content/dam/journey/us/en/private/fileassets/pdf/2011/05/Coca-Cola_125_years_booklet.pdf. The Coca-Cola Company. "Coca-Cola History │ World of Coca-Cola." World of Coca-Cola, www.worldofcoca-cola.com/about-us/coca- cola-history/. The Coca-Cola Company. "Coca-Cola Journey." The Coca-Cola Company, www.coca-colacompany.com/. The Coca-Cola Company. "The Coca-Cola Company Announces New International Structure, Promotes Key Leaders." The Coca-Cola Company, 24 May 2016, www.coca-colacompany.com/press-center/press-releases/the-coca-cola-company-announces-new-international- structure-promotes-key-leaders. Interbrand. "Rankings - 2016 - Best Global Brands - Best Brands." Interbrand, 2016, interbrand.com/best-brands/best-global- brands/2016/ranking/. McWilliams, Jeremiah D. "Coca-Cola No. 3 on Most Valuable Brands Ranking." The Coca-Cola Company, 5 Oct. 2016, www.coca- colacompany.com/coca-cola-unbottled/coca-cola-no-3-on-most-valuable-brands-ranking. Morningstar, Inc. "KO: Coca-Cola Co Top Competitors and Peers." Welcome to Financials.morningstar.com, 2017, financials.morningstar.com/competitors/industry-peer.action?t=KO. Nasdaq. "Coca-Cola Company (The) (KO) Income Statement." NASDAQ.com, 12 June 2017, www.nasdaq.com/symbol/ko/financials?query=income-statement. The Coca-Cola Company. "Mission, Vision & Values: The Coca-Cola Company." The Coca-Cola Company, www.coca-colacompany.com/our-company/mission-vision-values. ---. "Our Approach Human and Workplace Rights: The Coca-Cola Company." The Coca-Cola Company, www.coca-colacompany.com/our-company/human-workplace-rights. ---. "Strategic Pillars: The Coca-Cola Company." The Coca-Cola Company, www.coca-colacompany.com/our-company/diversity/strategic- pillars. ---. "Senior Leadership: The Coca-Cola Company." The Coca-Cola Company, www.coca-colacompany.com/our-company/senior-functional-leadership. Staff, Journey. "Supplier Guiding Principles: The Coca-Cola Company." The Coca-Cola Company, www.coca-colacompany.com/our-company/supplier-guiding-principles.