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INTERNATIONAL BUSINESS [ COCA COLA]
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BUSINESS COMMUNICATION
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UNIVERSITY OF DHAKA
Department of Accounting and Information Systems
BBA 19th
Batch- 1st year- 1st Semester
Course- Business Communication (1103)
Bilkis Akhter, ACMA
Assistant Professor
Dept. of AIS
University of Dhaka
MULTIFORM
Section-B
Dept. of AIS
University of Dhaka
SUBMITTED TO
SUBMITTED BY
ASSIGNMENT NO: 2
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Table of Content:
Name of contents page no.
01. Executive summary 01
02. Introduction 2-3
03. Procedures 3-4
04. Findings 4-20
a) Acquisition of the company 4-5
b) Revenue 5
c) Stock systems 6
d) Lobbing of coca-cola company 6
e) Consumer relationship 6-7
f) Bottlers of the company 7
g) Maintenance of civil rights 7-8
h) Ingredients 8
i) Criticism over the world 8-11
j) Brand portfolio 12-15
k) Competitors 15-16
l) Advertising 16-20
08. SWOT analysis 20-23
09. Conclusion 24
10. Recommendation 24-25
11. Bibliography 25
12. Appendix
13. Glossary
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Executive Summary:
International business is a very broad term to illustrate. In general words international business
means doing business out of national boundaries through export-import, licensing,
multinational firms, totally owned facilities etc.
First of all we have adorned our report with a great overview on international business through
a well known company, The Coca-Cola Company. In the very first beginning an introduction to
the report has been prepared for showing a clear overview to coca-cola company. Then we
have written a procedure section. In the next part we also tried to show the illustrated
overview on the company covering some important strategy about Coca-Cola Co. Ltd. While
preparing this part we have researched on the acquisition of the company, revenue earned,
stock, lobbying system, bottlers of the company. Moreover we have a great analysis on the
consumer relation of coca-cola, civil rights, probable competitors in the international market,
advertising system that the company applies to overcome the different difficult situation and
competition. After that a proper analysis has been made on the company through a very well
known system known as SWOT analysis. We have also shown some ingredients name and
manufacturing system of a product of The Coca-Cola Company. After researching on the
problems and benefits, a recommendation on the problems has been given in the last part of
the body of the report. In this report there are some words that may be difficult in
understanding at the first sight. We have prepared a glossary section for that part as well as an
appendix. The information sources are also provided in the bibliography section.
In this total report we have focused on the major key requirements of our teacher. We have
tried heart and soul to make this assignment informative. When preparing this assignment we
have also focused on better presentation and got much cooperation from our honorable course
teacher Mrs. Bilkis Aktar through her precious lectures and advices. So, we would like to be
thankful to our honorable course teacher for being so cooperative and helpful to us.
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INTRODUCTION
One of The Coca-Cola Company's headquarters buildings in
Atlanta
The Coca-Cola Company (NYSE: KO) is an American
multinational beverage corporation and manufacturer, retailer and marketer of nonalcoholic
beverage concentrates and syrups, which is headquartered in Atlanta, Georgia. The company is
best known for its flagship product Coca-Cola, invented in 1886 by pharmacist John Stith
Pemberton in Columbus, Georgia. The Coca-Cola formula and brand was bought in 1889 by Asa
Griggs Candler (December 30, 1851 - March 12, 1929), who incorporated The Coca-Cola
Company in 1892. Besides its namesake Coca-Cola beverage, Coca-Cola currently offers more
than 500 brands in over 200 countries or territories and serves over 1.7 billion servings each day.
The company operates a franchised distribution system dating from 1889 where The Coca-Cola
Company only produces syrup concentrate which is then sold to various bottlers throughout the
world who hold an exclusive territory. The Coca-Cola Company owns its anchor bottler in North
America, Coca-Cola Refreshments.
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 chief executive is Muhtar Kent.
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Coca-Cola is a carbonated soft drink sold in stores, restaurants, and vending machines in every country
except Cuba and North Korea. It is produced by The Coca-Cola Company of Atlanta, Georgia, and is
often referred to simply as Coke (a registered trademark of The Coca-Cola Company in the United States
since March 27, 1944). Originally intended as a patent medicine when it was invented in the late 19th
century by John Pemberton, Coca-Cola was bought out by businessman Asa Griggs Candler, whose
marketing tactics led Coke to its dominance of the world soft-drink market throughout the 20th century.
We have chosen Coca-Cola Company for our report because it has a widespread brand name,
goodwill and most importantly a great impact on the world’s economy.
It has a huge share in the international business in every sector of the world. Moreover, Coca-
Cola Company is doing great for the world’s environment and a great source of employment.
The company produces concentrate, which is then sold to licensed Coca-Cola bottlers throughout
the world. The bottlers, who hold territorially exclusive contracts with the company, produce
finished product in cans and bottles from the concentrate in combination with filtered water and
sweeteners. The bottlers then sell, distribute and merchandise Coca-Cola to retail stores and
vending machines. The Coca-Cola Company also sells concentrate for soda fountains to major
restaurants and food service distributors.
Procedures
While making this report we have researched on coca-cola company through Wikipedia, their
personal websites. We have found much information about this company. Moreover we have
visited local Coca-Cola Company situated in Mirpur-2 (beside National Zoo Mirpur, Dhaka).
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We have a great survey over the company. After that we had a group discussion among
ourselves. At that time we found some problems. And then we found out the solutions of those
problems.
When we were assigned with the report our semester final examination was knocking at our
door. So we didn’t get enough time to make our effective analysis on the company. But we have
tried our best to make our investigation on the company properly. Regarding this problems we
arranged several group meetings which were very much helpful in making this report.
Besides we took cooperation from our senior ones. They suggested us about the sources,
procedures.
We also analyzed annual reports of the company of different years regarding 2009-2012.We
found their manufacturing process in both local and websites.
Findings
ACQUISITION OF THE COMPANY:
The company has a long history of acquisitions. Coca-Cola acquired Minute Maid in 1960, the
Indian cola brand Thums Up in 1993, and Barq's in 1995. In 2001, it acquired the Odwalla brand
of fruit juices, smoothies and bars for $181 million. In 2007, it acquired Fuze Beverage from
founder Lance Collins and Castanea Partners for an estimated $250 million. The company's 2009
bid to buy a Chinese juice maker ended when China rejected its $2.4 billion bid for the Huiyuan
Juice Group on the grounds that it would be a virtual monopoly. Nationalism was also thought to
be a reason for aborting the deal. In 1982, Coca-Cola made its only non-beverage acquisition,
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when it purchased Columbia Pictures for $693 million. It sold the movie studio to Sony for $3
billion in 1989.
Revenue
The Coca-Cola Company's Minute Maid group North America offices in Sugar Land Town
Square, Sugar Land, Texas, United States
According to the 2005 Annual Report, the company sells beverage products in more than 200
countries. The report further states that of the more than 50 billion beverage servings of all types
consumed worldwide every day, beverages bearing the trademarks owned by or licensed to
Coca-Cola account for approximately 1.5 billion (the latest figure in 2010 shows that now they
serve 1.6 billion drinks every day). Of these, beverages bearing the trademark "Coca-Cola" or
"Coke" accounted for approximately 78% of the company's total gallon sales.
Also according to the 2012 Annual Report, Coca-Cola had gallon sales distributed as follows:
42% in the United States
37% in Mexico, India, Brazil, Japan and the People's Republic of China
20% spread throughout the rest of the world
In 2010, it was announced that Coca-Cola had become the first brand to top £1 billion in annual
UK grocery sales.
Stock System
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Since 1987, Coca Cola has been a publicly traded company. One share of stock purchased in
1919 for $40, with all dividends reinvested, would be worth $9.8 million in 2012, a 10.7%
annual increase, adjusted for inflation. In 1987, Coca Cola once again became one of the 30
stocks which make up the Dow, the Dow Jones Industrial Average, which is commonly
referenced as the performance of the stock market. It had previously been a Dow stock from
1932 to 1935. Coca Cola has paid a dividend, increasing each year for 49 years. Stock is
available from a direct purchase program, through Computershare Trust Company, but unlike
many programs, has investment fees.
Lobbying of Coca-Cola Company
In the U.S., Coca-Cola is a major lobbying force working to gain favorable legislation for the
beverage industry. In both 2005 and 2006, it spent $1 million each year on lobbying. In 2007,
that increased to $1.7 million, and by 2008, to $2.5 million. In 2009, total lobbying expenses
jumped to $4.5 million, or nearly double the previous year. Much of the increased lobbying
expenses are due to the industry’s fight against increased taxes on soft drinks and other
sweetened beverages. For 2008, Coca-Cola has 38 lobbyists at 7 different firms lobbying on its
behalf.
Consumer Relations
Throughout 2012, Coca-Cola contributed $1,700,500 to a $46 million political campaign known
as "The Coalition Against The Costly Food Labeling Proposition, sponsored by Farmers and
Food Producers" This organization was set up to oppose a citizen's initiative, known as
Proposition 37, demanding mandatory labeling of foods containing genetically modified
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ingredients. In the aftermath of the proposition's defeat at the polls, backers called for a boycott
of companies that contributed to the opposition campaign.
Bottlers of the company
In general, The Coca-Cola Company and its subsidiaries only produce syrup concentrate, which
is then sold to various bottlers throughout the world who hold a Coca-Cola franchise. Coca-Cola
bottlers, who hold territorially exclusive contracts with the company, produce the finished
product in cans and bottles from the concentrate in combination with filtered water and
sweeteners. The bottlers then sell, distribute and merchandise the resulting Coca-Cola product to
retail stores, vending machines, restaurants and food service distributors.
One notable exception to this general relationship between The Coca-Cola Company and bottlers
is fountain syrups in the United States, where the company bypasses bottlers and is responsible
for the manufacture and sale of fountain syrups directly to authorized fountain wholesalers and
some fountain retailers.
Maintenance of Civil rights
After Dr. Martin Luther King, Jr. won the 1964 Nobel Peace Prize, plans for an interracial
celebratory dinner in still-segregated Atlanta were not initially well supported by the city's
business elite until Coca-Cola intervened.
J. Paul Austin, the chairman and CEO of Coca-Cola, and Mayor Ivan Allen summoned key
Atlanta business leaders to the Commerce Club's eighteenth floor dining room, where Austin
told them flatly, 'It is embarrassing for Coca-Cola to be located in a city that refuses to honor its
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Nobel Prize winner. We are an international business. The Coca-Cola Co. does not need Atlanta.
You all need to decide whether Atlanta needs the Coca-Cola Co.' Within two hours of the end of
that meeting, every ticket to the dinner was sold.
—Andrew Young
However, Coca-Cola has also faced allegations of racial discrimination in its employment
practices, and faced a class-action racial discrimination lawsuit regarding this in the early 2000s.
Ingredients
Carbonated water
Sugar (sucrose or high-fructose corn syrup depending on country of origin)
Caffeine
Phosphoric acid
Caramel color (E150d)
Natural flavoring.
A can of Coke (12 fl ounces/355 ml) has 39 grams of carbohydrates (all from sugar,
approximately 10 teaspoons) 50 mg of sodium, 0 grams fat, 0 grams potassium, and 140 calories.
Formula of natural flavorings
The exact formula of Coca-Cola's natural flavorings (but not its other ingredients, which are
listed on the side of the bottle or can) is a trade secret. The original copy of the formula was held
in SunTrust Bank's main vault in Atlanta for 86 years. Its predecessor, the Trust Company, was
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the underwriter for the Coca-Cola Company's initial public offering in 1919. On December 8,
2011, the original secret formula was moved from the vault at SunTrust Banks to a new vault
containing the formula which will be on display for visitors to its World of Coca-Cola museum
in downtown Atlanta.
On February 11, 2011, Ira Glass revealed on his PRI radio show, This American Life, that the
secret formula to Coca-Cola had been uncovered in a 1979 newspaper. The formula found
basically matched the formula found in Pemberton's diary.
Franchised production model
The actual production and distribution of Coca-Cola follows a franchising model. The Coca-Cola
Company only produces a syrup concentrate, which it sells to bottlers throughout the world, who
hold Coca-Cola franchises for one or more geographical areas. The bottlers produce the final
drink by mixing the syrup with filtered water and sweeteners, and then carbonate it before
putting it in cans and bottles, which the bottlers then sell and distribute to retail stores, vending
machines, restaurants and food service distributors.
The Coca-Cola Company owns minority shares in some of its largest franchises, such as Coca-
Cola Enterprises, Coca-Cola Amatil, Coca-Cola Hellenic Bottling Company and Coca-Cola
FEMSA, but fully independent bottlers produce almost half of the volume sold in the world.
Independent bottlers are allowed to sweeten the drink according to local tastes.
The bottling plant in Skopje, Macedonia, received the 2009 award for "Best Bottling Company".
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Brand portfolio
This is a list of variants of Coca-Cola introduced around the world. In addition to the caffeine-
free version of the original, additional fruit flavors have been included over the years. Not
included here are versions of Diet Coke and Coca-Cola Zero; variant versions of those no-calorie
colas can be found at their respective articles.
Name Launched Discontinued Notes Picture
Coca-Cola 1886 The original version of Coca-Cola.
Caffeine-Free
Coca-Cola
1983 The caffeine free version of Coca-
Cola.
Coca-Cola
Cherry
1985 Was available in Canada starting in
1996. Called "Cherry Coca-Cola
(Cherry Coke)" in North America
until 2006.
New
Coke/"Coca-
Cola II"
1985 2002 Was still available in Yap and
American Samoa[citation needed]
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Coca-Cola
with Lemon
2001 2005 Available in:
Australia, American Samoa, Austria,
Belgium, Brazil, China, Denmark,
Federation of Bosnia and
Herzegovina, Finland, France,
Germany, Hong Kong, Iceland,
Korea, Luxembourg, Macau,
Malaysia, Mongolia, Netherlands,
New Caledonia, New Zealand,
Réunion, Singapore, Spain,
Switzerland, Taiwan, Tunisia, United
Kingdom, United States, and West
Bank-Gaza
Coca-Cola
Vanilla
2002;
2007
2005; Available in: Austria, Australia,
China, Finland, Germany, Hong
Kong, New Zealand, Malaysia,
Sweden, United Kingdom and United
States. It was reintroduced in June
2007 by popular demand.
Coca-Cola
with Lime
2005 Available in Belgium, Netherlands,
Singapore, Canada, the United
Kingdom, and the United States.
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Coca-Cola
Raspberry
June
2005
End of 2005 Was only available in New Zealand.
Currently available in the United
States in Coca-Cola Freestyle
fountain since 2009.
Coca-Cola
Black Cherry
Vanilla
2006 Middle of
2007
Was replaced by Vanilla Coke in
June 2007
Coca-Cola
Blāk
2006 Beginning of
2008
Only available in the United States,
France, Canada, Czech Republic,
Bosnia and Herzegovina, Bulgaria
and Lithuania
Coca-Cola
Citra
2006 Only available in Bosnia and
Herzegovina, New Zealand and
Japan.
Coca-Cola
Orange
2007 Was available in the United Kingdom
and Gibraltar for a limited time. In
Germany, Austria and Switzerland
it's sold under the label Mezzo Mix.
Currently available in Coca-Cola
Freestyle fountain outlets in the
United States since 2009.
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Logo design
The Coca-Cola logo was created by John Pemberton's bookkeeper, Frank Mason Robinson, in
1885.[61]
Robinson came up with the name and chose the logo's distinctive cursive script. The
typeface used, known as Spenserian script, was developed in the mid-19th century and was the
dominant form of formal handwriting in the United States during that period.
Robinson also played a significant role in early Coca-Cola advertising. His promotional
suggestions to Pemberton included giving away thousands of free drink coupons and plastering
the city of Atlanta with publicity banners and streetcar signs.
Designer bottles
Karl Lagerfeld is the latest designer to have created a collection of aluminum bottles for Coca-
Cola. Lagerfeld is not the first fashion designer to create a special version of the famous Coca-
Cola Contour bottle. A number of other limited edition bottles by fashion designers for Coca
Cola Light soda have been created in the last few years.
In 2009, in Italy, Coca-Cola Light had a Tribute to Fashion to celebrate 100 years of the
recognizable contour bottle. Well known Italian designers Alberta Ferretti, Blumarine, Etro,
Fendi, Marni, Missoni, Moschino, and Versace each designed limited edition bottles.
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COMPETITORS
Pepsi, the flagship product of PepsiCo, The Coca-Cola Company's main rival in the soft drink
industry, is usually second to Coke in sales, and outsells Coca-Cola in some markets. RC Cola,
now owned by the Dr Pepper Snapple Group, the third largest soft drink manufacturer, is also
widely available.
Around the world, many local brands compete with Coke. In South and Central America Kola
Real, known as Big Cola in Mexico, is a growing competitor to Coca-Cola. On the French island
of Corsica, Corsica Cola, made by brewers of the local Pietra beer, is a growing competitor to
Coca-Cola. In the French region of Brittany, Breizh Cola is available. In Peru, Inca Kola outsells
Coca-Cola, which led The Coca-Cola Company to purchase the brand in 1999. In Sweden,
Julmust outsells Coca-Cola during the Christmas season. In Scotland, the locally produced Irn-
Bru was more popular than Coca-Cola until 2005, when Coca-Cola and Diet Coke began to
outpace its sales. In India, Coca-Cola ranked third behind the leader, Pepsi-Cola, and local drink
Thums Up. The Coca-Cola Company purchased Thums Up in 1993. As of 2004, Coca-Cola held
a 60.9% market-share in India. Tropicola, a domestic drink, is served in Cuba instead of Coca-
Cola, due to a United States embargo. French brand Mecca Cola and British brand Qibla Cola
are competitors to Coca-Cola in the Middle East. In Turkey, Cola Turka, in Iran and the Middle
East, Zam Zam Cola and Parsi Cola, in some parts of China, China Cola, in Slovenia, Cockta and
the inexpensive Mercator Cola, sold only in the country's biggest supermarket chain, Mercator,
are some of the brand's competitors. Classiko Cola, made by Tiko Group, the largest
manufacturing company in Madagascar, is a serious competitor to Coca-Cola in many regions.
Laranjada is the top-selling soft drink on Madeira.
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ADVERTISING:
Coca-Cola's advertising has significantly affected American culture, and it is frequently credited
with inventing the modern image of Santa Claus as an old man in a red-and-white suit. Although
the company did start using the red-and-white Santa image in the 1930s, with its winter
advertising campaigns illustrated by Haddon Sundblom, the motif was already common. Coca-
Cola was not even the first soft drink company to use the modern image of Santa Claus in its
advertising: White Rock Beverages used Santa in advertisements for its ginger ale in 1923, after
first using him to sell mineral water in 1915. Before Santa Claus, Coca-Cola relied on images of
smartly dressed young women to sell its beverages. Coca-Cola's first advertisement appeared in
1895, featuring the young Bostonian actress Hilda Clark as its spokeswoman.
Coca-Cola sales booth on the Cape Verde island of Fogo in 2004.
Coke's advertising is pervasive, as one of Woodruff's stated goals was to ensure that everyone on
Earth drank Coca-Cola as their preferred beverage. This is especially true in southern areas of the
United States, such as Atlanta, where Coke was born.
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Coca-Cola signboard in Lahore, Pakistan.
Some Coca-Cola television commercials between 1960 through 1986 were written and produced
by former Atlanta radio veteran Don Naylor (WGST 1936–1950, WAGA 1951–1959) during his
career as a producer for the McCann Erickson advertising agency. Many of these early television
commercials for Coca-Cola featured movie stars, sports heroes and popular singers.
Coca-Cola ghost sign in Fort Dodge, Iowa. Older Coca-Cola ghosts behind Borax and telephone
ads.
During the 1980s, Pepsi-Cola ran a series of television advertisements showing people
participating in taste tests demonstrating that, according to the commercials, "fifty percent of the
participants who said they preferred Coke actually chose the Pepsi." Statisticians pointed out the
problematic nature of a 50/50 result: most likely, the taste tests showed that in blind tests, most
people cannot tell the difference between Pepsi and Coke. Coca-Cola ran ads to combat Pepsi's
ads in an incident sometimes referred to as the cola wars; one of Coke's ads compared the so-
called Pepsi challenge to two chimpanzees deciding which tennis ball was furrier. Thereafter,
Coca-Cola regained its leadership in the market.
Selena was a spokesperson for Coca-Cola from 1989 till the time of her death. She filmed three
commercials for the company. In 1994, to commemorate her five years with the company, Coca-
Cola issued special Selena coke bottles.
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In 2006, Coca-Cola introduced My Coke Rewards, a customer loyalty campaign where
consumers earn points by entering codes from specially marked packages of Coca-Cola products
into a website. These points can be redeemed for various prizes or sweepstakes entries.
In Australia in 2011, Coca-Cola began the "share a Coke" campaign, where the Coca-Cola logo
was replaced on the bottles and replaced with first names. Coca-Cola used the 150 most popular
names in Australia to print on the bottles. The campaign was paired with a website page,
Facebook page and an online "share a virtual Coke". Coca-Cola has also advertised its product to
be consumed as a breakfast beverage, instead of coffee or tea for the morning caffeine.
In 2013, Coca-Cola swapped the logo on Coca-Cola, Diet Coke and Coke Zero bottles and cans
in the UK with 150 of Britain's most popular names for a summer-long "Share a Coke"
campaign.
HOLIDAY CAMPAIGNS
Freightliner Coca-Cola Christmas truck in Dresden, Germany.
The "Holidays are coming!" advertisement features a train of red delivery trucks, emblazoned
with the Coca-Cola name and decorated with Christmas lights, driving through a snowy
landscape and causing everything that they pass to light up and people to watch as they pass
through.
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Keith Law, a producer and writer of commercials for Belfast CityBeat, was not convinced by
Coca-Cola's reintroduction of the advertisement in 2007, saying that "I don't think there's
anything Christmassy about HGVs and the commercial is too generic."
In 2001, singer Melanie Thornton recorded the campaign's advertising jingle as a single,
Wonderful Dream (Holidays are Coming), which entered the pop-music charts in Germany at no.
9. In 2005, Coca-Cola expanded the advertising campaign to radio, employing several variations
of the jingle.
In 2011, Coca-Cola launched a campaign for the Indian holiday Diwali. The campaign included
commercials, a song and an integration with Shah Rukh Khan’s film Ra.One.
Sports sponsorship
Coca-Cola was the first commercial sponsor of the Olympic games, at the 1928 games in
Amsterdam, and has been an Olympics sponsor ever since. This corporate sponsorship included
the 1996 Summer Olympics hosted in Atlanta, which allowed Coca-Cola to spotlight its
hometown. Most recently, Coca-Cola has released localized commercials for the 2010 Winter
Olympics in Vancouver; one Canadian commercial referred to Canada's hockey heritage and was
modified after Canada won the gold medal game on February 28, 2010 by changing the ending
line of the commercial to say "Now they know whose game they're playing".
Since 1978, Coca-Cola has sponsored the FIFA World Cup, and other competitions organised by
FIFA. One FIFA tournament trophy, the FIFA World Youth Championship from Tunisia in 1977
to Malaysia in 1997, was called "FIFA — Coca Cola Cup". In addition, Coca-Cola sponsors the
annual Coca-Cola 600 and Coke Zero 400 for the NASCAR Sprint Cup Series at Charlotte
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Motor Speedway in Concord, North Carolina and Daytona International Speedway in Daytona,
Florida.
Coca-Cola was one of the official sponsors of the 1996 Cricket World Cup held on the Indian
subcontinent. Coca Cola is also one of the associate sponsors of Delhi Daredevils in Indian
Premier League.
In England, Coca-Cola was the main sponsor of The Football League between 2004 and 2010, a
name given to the three professional divisions below the Premier League in football (soccer). It
is also responsible for the renaming of these divisions — until the advent of Coca-Cola
sponsorship, they were referred to as Divisions One, Two and Three. Since 2004, the divisions
have been known as The Championship (equiv. of Division 1), League One (equiv. of Div. 2)
and League 2 (equiv. of Division 3). This renaming has caused unrest amongst some fans, who
see it as farcical that the third tier of English Football is now called "League One." In 2005,
Coca-Cola launched a competition for the 72 clubs of the football league — it was called "Win a
Player". This allowed fans to place 1 vote per day for their beloved club, with 1 entry being
chosen at random earning £250,000 for the club; this was repeated in 2006. The "Win A Player"
competition was very controversial, as at the end of the 2 competitions, Leeds United AFC had
the most votes by more than double, yet they did not win any money to spend on a new player
for the club. In 2007, the competition changed to "Buy a Player". This competition allowed fans
to buy a bottle of Coca-Cola Zero or Coca-Cola and submit the code on the wrapper on the Coca-
Cola website {www.coca-colafootball.co.uk}. Introduced March 1, 2010, in Canada, to celebrate
the 2010 Winter Olympics, Coca Cola will sell gold colored cans in packs of 12 355 mL each, in
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select stores..In 2012, Coca-Cola (Philippines) hosted/sponsored the Coca-Cola PBA Youngstars
in the Philippines.
In mass media
Coca Cola advertised on a Volkswagen T2 in Maringa, Parana, Brazil.
Coca-Cola has been prominently featured in countless films and television programs. Since its
creation, it remains as one of the most important elements of the popular culture. It was a major
plot element in films such as One, Two, Three, The Coca-Cola Kid, and The Gods Must Be
Crazy among many others. It provides a setting for comical corporate shenanigans in the novel
Syrup by Maxx Barry. And in music, in The Beatles' song, "Come Together", the lyrics said, "He
shoot Coca-Cola, he say...". The Beach Boys also referenced Coca-Cola in their 1964 song "All
Summer Long" (i.e. 'Member when you spilled Coke all over your blouse?)
Also, the best selling artist of all time and worldwide cultural icon, Elvis Presley, promoted
Coca-Cola during his last tour of 1977. The Coca-Cola Company used Elvis' image to promote
the product. For example, the company used a song performed by Presley, A Little Less
Conversation, in a Japanese Coca-Cola commercial.
Other artists that promoted Coca-Cola include The Beatles, David Bowie, George Michael, Elton
John and Whitney Houston, who appeared in the Diet Coca-Cola commercial, among many
others.
Not all musical references to Coca-Cola went well. A line in "Lola" by The Kinks was originally
recorded as "You drink champagne and it tastes just like Coca-Cola." When the British
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Broadcasting Corporation refused to play the song because of the commercial reference, lead
singer Ray Davies was forced to fly from New York to London and re-record the lyric as "it
tastes just like cherry cola" to get airplay for the song.
Political cartoonist Michel Kichka satirized a Coca-Cola billboard in his 1982 poster "And I
Love New York." On the billboard, the lettering and script above the Coca-Cola wave read
"Enjoy Cocaine."
Criticism
Main article: Criticism of Coca-Cola
The Coca-Cola Company has been involved in controversies and lawsuits related to human
rights violations and other unethical practices.
A number of lawsuits have been filed in relation to its allegedly monopolistic and discriminatory
practices, some of which have been dismissed, some of which have caused The Coca-Cola
Company to change its business practices, and some of which have been settled out of court.
There have been continuing criticisms regarding The Coca-Cola Company's relation to the
Middle East and U.S. foreign policy.
The company has been criticized on a number of environmental issues. An issue with pesticides
in groundwater in 2003 led to problems for the company when an Indian NGO, Centre for
Science and Environment, announced that it had found cancer causing chemicals in Coca-Cola as
well as other soft drinks produced by the company, at levels 30 times that considered safe by the
European Economic Commission. This caused an 11 percent drop in Indian Coca-Cola sales.
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The Indian Health Minister said the CSE tests were inaccurate, and said that the government's
tests found pesticide levels within India's standards but above EU standards. The UK-based
Central Science Laboratory, commissioned by Coke, found its products met EU standards in
2006. Coke and the University of Michigan commissioned an independent study of its bottling
plants by The Energy and Resources Institute (TERI), which reported in 2008 no unsafe
chemicals in the water supply, though it criticized Coke for the impact of its water usage on local
supply.
Critics claim that the company's overuse of local water supplies in some locations has led to
severe shortages for regional farmers and the forced closure of some plants. Packaging used in
Coca-Cola's products have a significant environmental impact. However, the company strongly
opposes attempts to introduce mechanisms such as container deposit legislation.
The company was accused of being involved in a violent repression of a union at several of its
bottling plants in Colombia, South America. As of August 2005, when PBS's Frontline ran a
story on the controversy, Coca-Cola strenuously denied all allegations of union-busting and
murder of union leaders. A few shareholders and a few U.S. colleges.
have attempted to boycott
Coca-Cola to exert pressure on the company to approve what they call a full-scale investigation
of the charges.
On December 10, 2008, the US Food and Drug Administration (FDA) wrote to Mr. Muhtar
Kent, President and Chief Executive Officer, to warn him that the FDA had concluded that the
label on Coca-Cola's product Diet Coke Plus 20 FL OZ was is in violation of the Federal Food,
Drug, and Cosmetic Act labeling requirements. During an interview with Reuters, The Coca-
Cola Company's spokesman, Scot Williams, stated, "This does not involve any health or safety
27. Page30
issues, and we believe the label on Diet Coke Plus complies with FDA's policies and
regulations."
In January 2009, the US consumer group the Center for Science in the Public Interest filed a
class-action lawsuit against Coca-Cola. The lawsuit was in regards to claims made, along with
the company's flavors, of Vitamin Water. Claims say that the 33 grams of sugar are more
harmful than the vitamins and other additives are helpful. Coca-Cola insists the suit is
"ridiculous."
Company background
Name The Coca Cola Company
Industries served Beverages
Geographic areas served Worldwide
Headquarters U.S.
Current CEO Muhtar Kent
Revenue $ 48.01 billion (2012)
Profit $ 9.01 billion (2012)
Employees 146,200
Main Competitors PepsiCo Inc., Dr Pepper Snapple Group, Inc.,
Unilever, GroupeDanone, Kraft Foods Inc., Nestlé
S.A. and others.
28. Page31
The Coca Coola Company is the largest beverage company in the world serving more than 200
countries and offering more than 500 brands.
SWOT analysis of Coca Cola Company
Coca Cola SWOT analysis 2013
Strengths Weaknesses
1. The best global brand in the world in
terms of value ($77,839 billion)
2. World’s largest market share in beverage
3. Strong marketing and advertising
4. Most extensive beverage distribution
channel
5. Customer loyalty
6. Bargaining power over suppliers
7. Corporate social responsibility
1. Significant focus on carbonated drinks
2. Undiversified product portfolio
3. High debt level due to acquisitions
4. Negative publicity
5. Brand failures or many brands with
insignificant amount of revenues
Opportunities Threats
1. Bottled water consumption growth
2. Increasing demand for healthy food and
beverage
3. Growing beverages consumption in
emerging markets (especially BRIC)
4. Growth through acquisitions
1. Changes in consumer preferences
2. Water scarcity
3. Strong dollar
4. Legal requirements to disclose negative
information on product labels
5. Decreasing gross profit and net profit
margins
6. Competition from PepsiCo
7. Saturated carbonated drinks market
Strengths
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1. The best global brand in the world in terms of value. According to Interbrand, The Coca
Cola Company is the most valued ($77,839 billion) brand in the world.
2. World’s largest market share in beverage. Coca Cola holds the largest beverage market
share in the world (about 40%).
3. Strong marketing and advertising. Coca Cola’ advertising expenses accounted for more
than $3 billion in 2012 and increased firm’s sales and brand recognition.
4. Most extensive beverage distribution channel. Coca Cola serves more than 200 countries
and more than 1.7 billion servings a day.
5. Customer loyalty. The firm enjoys having one of the most loyal consumer groups.
6. Bargaining power over suppliers. The Coca Cola Company is the largest beverage producer
in the world and exerts significant power over its suppliers to receive the lowest price available
from them.
7. Corporate Social Responsibility (CSR). Coca Cola is increasingly focusing on CSR
programs, such as recycling/packaging, energy conservation/climate change, active healthy
living, water stewardship and many others, which boosts company’ social image and result in
competitive advantage over competitors.
Weaknesses
1. Significant focus on carbonated drinks. The Coca Cola Company is still focusing on selling
Coke, Fanta, Sprite and other carbonated drinks. This strategy works in short term as
30. Page33
consumption of carbonated drinks will grow in emerging economies but it will prove weak as the
world is fighting obesity and is moving towards consuming healthier food and drinks.
2. Undiversified product portfolio. Unlike most company’s competitors, Coca Cola is still
focusing only on selling beverage, which puts the firm at disadvantage. The overall consumption
of soft drinks is stagnating and Coca Cola Company will find it hard to penetrate to other
markets (selling food or snacks) when it will have to sustain current level of growth.
3. High debt level due to acquisitions. Nearly $8 billion of debt acquired from CCE’s
acquisition significantly increased Coca Cola's debt level, interest rates and borrowing costs.
4. Negative publicity. The firm is often criticized for high water consumption in water scarce
regions and using harmful ingredients to produce its drinks.
5. Brand failures or many brands with insignificant amount of revenues. Coca Cola
currently sells more than 500 brands but only few of the brands result in more than $1 billion
sales. Plus, the firm’s success of introducing new drinks is weak. Many of its introduction result
in failures, for example, C2 drink.
Opportunities
1. Bottled water consumption growth. Consumption of bottled water is expected to grow both
in US and the rest of the world.
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2. Increasing demand for healthy food and beverages. Due to many programs to fight obesity,
demand for healthy food and beverages has increased drastically. The Coca Cola Company has
an opportunity to further expand its product range with drinks that have low amount of sugar and
calories.
3. Growing beverages consumption in emerging markets. Consumption of soft drinks is still
significantly growing in emerging markets, especially BRIC countries, where Coca Cola could
increase and maintain its beverages market share.
4. Growth through acquisitions. Coca Cola will find it hard to keep current growth levels and
will find it hard to penetrate new markets with its existing product portfolio. All this can be done
more easily through acquiring other companies.
Threats
1. Changes in consumer tastes. Consumers around the world become more health conscious
and reduce their consumption of carbonated drinks, drinks that have large amounts of sugar,
calories and fat. This is the most serious threat as Coca Cola is mainly serving carbonated drinks.
2. Water scarcity. Water is becoming scarcer around the world and increases both in cost and
criticism for Coca Cola over the large amounts of water used in production.
3. Strong dollar. More than 60% of The Coca Cola Company income is from outside US. Due
to strong dollar performance against other currencies firm’s overall income may fall.
32. Page35
4. Legal requirements to disclose negative information on product labels. Some Coca Cola’s
carbonated drinks have adverse health consequences. For this reason, many governments
consider to pass legislation that requires disclosing such information on product labels. Products
containing such information may be perceived negatively and lose its customers.
5. Decreasing gross profit and net profit margins. Coca Cola’s gross profit and net profit
margin was decreasing over the past few years and may continue to decrease due to higher water
and other raw material costs.
6. Competition from PepsiCo. PepsiCo is fiercely competing with Coca Cola over market share
in BRIC countries, especially India.
7. Saturated carbonated drinks market. The company significantly relies on the carbonated
drinks sales, which is a threat for the Coca Cola as the market of carbonated drinks is not
growing or even declining in the world.
Conclusion
The Coca-Cola Company has built internal and external structures to support the delivery of its
business goals. The regional structure is the best way of supporting this growth, allowing
attention to local requirements while at the same time building on a clear strategic direction from
the centre.
33. Page36
A culture of innovation, teamwork and partnership means that the Company has a firm
foundation of relationships and open communication channels on which to build its growth.
The 'Coca-Cola' promise is simple, solid and timeless: The Coca-Cola T Company exists to
benefit and refresh everyone who is touched by its business. Part of this promise is to continually
operate as a model business citizen, consistently shaping business decisions to improve the
quality of life in the communities in which it does business.
The Company is committed to monitoring performance in the area of social responsibility
against benchmarks to make sure that it is, and continues to be, a good citizen as well as the
benchmark global brand.
Recommendation
Recommendations are the insights of our diverse global workforce." -CEO, Neville Isdell.
Recommendations The Coca-Cola Company should pursue a multi-pronged strategy. The first
rivals. Consumer fast changing product preference is hard for Coca-Cola to keep pace with.
Recommendation of Coca-Cola's Future Generic Business Strategy position of Coca-Cola is
determined through careful analysis of the organizations history, market conditions, market
trends, and finally the recommendations needed water management practices in India. The
assessment recommends that Coca-Cola shut down its bottling plant in Kala Dera because the
plant contributes significantly born in 1886.
34. Page37
Its product line has several popular soft drinks including Coca-Cola, Diet Coke, Fanta, Barqs,
and Sprite, selling over 400 drinks brands in about 200 the world. Company’s products are sold
since 1886 and in more than 200 countries. Coca Cola have 450 brands in different 15 categories
and they continue to expand far to adjust to different economic, social and other related issues.
Thus, we recommend for Coca-Cola to implement the first strategy proposed. VI.
Implementation of the key lessons I learned along the way.
When I first went to work for The Coca-Cola Company in Atlanta 30 years ago, America and
the world were in a situation Media Recommendation for: Coca Cola Classic Communications
352 Dr. Ju-Pak Section Two Yolanda Michel Oscar Perris Patty Pineda Iris Preciado of the key
lessons I learned along the way. When I first went to work for The Coca-Cola Company in
Atlanta 30 years ago, America and the world were in a situation and career paths (Nel, Werner,
Haasbroek, Poisat, Sono, Schultz (2008:446).
Glossary
1. Acacia
See definition of Acacia / Acacia Gum / Gum Arabic
2. Ascorbic Acid
Ascorbic Acid is Vitamin C. Vitamin C is an antioxidant vitamin. It helps to protect body cells
and tissues and helps to maintain healthy skin. Ascorbic acid is also used as a preservative in
some products and this use is indicated in the ingredient statement.
3. Artificial Flavors
Artificial Flavors are substances used to impart flavor that are not derived from a natural
substance such as a spice, fruit or fruit juice, vegetables or herbs.
35. Page38
4. Bottlers
Business entities that sell, manufacture, and distribute beverages of The Coca-Cola Company
under a franchise agreement.
5. Bottling plant
A beverage production facility, including associated warehouses, workshops, and other on-site
buildings and installations.
6. Black Tea Concentrate
Black Tea Concentrate is Black Tea extract that has been concentrated and spray dried
7. Consumer
Person who consumes Coca-Cola FEMSA products.
8. Carbonated soft drinks; CSDs
Non-alcoholic carbonated beverages containing flavourings and sweeteners, excluding, among
others, waters and flavoured waters, juices and juice drinks, sports and energy drinks, teas and
coffee.
9. Coca-Cola Hellenic
Coca-Cola Hellenic Bottling Company S.A. and, as the context may require, its subsidiaries and
joint ventures. Also, ‘the Company’ or ‘the Group’.
10. Future consumption; FC
A distribution channel where consumers buy beverages in multi-serve packages (typically one
litre and above) for consumption at a later time, mainly at home.
11. Caffeine
Caffeine comes from the leaves, seeds, or fruits of more than 60 plants. It is found in beverages
and foods, such as coffee, tea, colas, and chocolate. Caffeine can also be man-made.
12. Dutch Cocoa
Dutch Cocoa is cocoa that has been treated to reduce its natural acidity.
13. Evaporated Cane Juice
Evaporated Cane Juice is a sweetener made from sugar cane.
14. Flavors / Flavorings
36. Page39
Flavorings are used to provide the taste to beverages and foods. They can be natural extracts
from food plants, such as fruits, or can be man-made.
15. Folic Acid
Folic Acid is a vitamin important for pregnant women as it is needed for the normal development
of the brain and spinal cord. It also is needed by your body to make red blood cells.
16. Jerusalem Artichoke
Jerusalem Artichoke is a plant of the sunflower family that is added for flavor. It is not a type of
artichoke, but a root vegetable
17. Market:
When used in reference to geographic areas, territory in which Coca-Cola Hellenic does
business, often defined by national boundaries.
18. Manganese Citrate
Manganese citrate is a source of manganese, an essential nutrient for the body. Manganese is
needed for bone formation and energy metabolism.
19. Non-carbonated soft drinks; non-CSDs
Non-alcoholic beverages without carbonation including, but not limited to, waters and flavoured
waters, juices and juice drinks, sports and energy drinks, teas and coffee.
20. Natural Flavors
Natural flavors are derived from the essential oils or extracts of spices, fruits, vegetables and
herbs.
21. Polyethylene Glycol
Polyethylene Glycol is used as an emulsifier or substance to disperse two liquids in beverages.
22. Purple Carrot
Purple Carrot is a coloring agent made from purple carrots.
23. Zinc Picolinate
Zinc Picolinate is a source of zinc, an essential nutrient for the body. Zinc is needed for the
normal functioning of the immune system
37. Page40
APPENDIX
APPENDIX-1
Type Public
Traded as
NYSE: KO
Dow Jones Industrial Average Component
S&P 500 Component
Industry Beverage
Founded 1886
Founder(s) Asa Griggs Candler
Headquarters
Coca-Cola headquarters,
Atlanta, Georgia, U.S.
Key people
Muhtar Kent
(Chairman & CEO)
Revenue US$ 48.01 billion (2012)[1]
Operating
income
US$ 10.84 billion (2012)[1]
Net income US$ 9.01 billion (2012)[1]
Total assets US$ 86.17 billion (2012)[1]
Total equity US$ 32.79 billion (2012)[1]
Employees 146,200 (Dec 2011)[2]
Subsidiaries
List of The Coca-Cola Company
subsidiaries
Website Coca-ColaCompany.com
APPENDIX-2
Coca-Cola Co., Income Statement, Revenues
USD $ in millions
12 months ended Dec 31,
2012
Dec 31,
2011
Dec 31,
2010
Dec 31,
2009
Dec 31,
2008
Eurasia & Africa 2,818 2,689 2,426 1,977 2,135
Europe 4,481 4,777 4,424 4,308 4,785
Latin America 4,560 4,403 3,880 3,700 3,623
North America 21,665 20,559 11,140 8,191 8,205
Pacific 5,559 5,454 4,941 4,533 4,358
Bottling Investments 8,807 8,501 8,216 8,193 8,731
Corporate 127 159 92 88 107
Net operating revenues, third party 48,017 46,542 35,119 30,990 31,944
38. Page41
Bibliography
1.Wikipedia (2013). The Coca-Cola Company. Available at: http://en.wikipedia.org/wiki/The_Coca-
Cola_Company
2.The Coca Cola Company (2013). Coca Cola Journey. Available at: http://www.coca-colacompany.com/
3.Bazil, M. (2013). The Motley Fool. Coca-Cola Has a Prosperous 2013 Ahead of It. Available at:
http://beta.fool.com/muhammadbazil/2013/01/04/coca-cola-has-prosperous-2013-ahead-
it/20272/?ticker=KO&source=eogyholnk0000001
4.Visit to Coca-Cola company of Bangladesh. ( Situated in Mirpur-2, Beside National Zoo)
5. In June 2012, Coca-Cola announced its intentions to begin distributing in Myanmar.
Stafford, Leon (Sept. 9, 2012). "Coca-Cola to spend $30 billion to grow globally".
SS