The Coca-Cola Company

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Presented By:

Group O2:Harini Valluri

Soman NahataAnkit JangalwaGandharv Raj

SethiVishwajeet

Narayan

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Introduction The formula for Coca Cola was

invented by John Stith Pemberton in 1886.

Asa Candler in 1889 bought the formula and the brand and incorporated The Coca Cola Company in 1892.

Today Coca-Cola offers more than 400 brands in over 200 countries.

The headquarters of the company is located in Atlanta, Georgia.

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Know How? The key inputs for production are the

raw materials used in the beverages. The company uses different types of

sweeteners depending on where the concentrate is produced.

Water is the chief ingredient used. However the most important ingredient of them all is the secret coca cola formula, which is locked away in Atlanta, Georgia.

The company does not produce the soda, it only produces the concentrate/syrup, which is sent to the distributors. 4

Global Coverage

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Revenue• According to the annual report of

2005, of the 50 billion beverages servings of all types 1.5 billion were of Coca-Cola.

• According to the 2007 Annual Report, Coca-Cola had gallon sales distributed as follows:

  37% in the United States43% in Mexico, India, Brazil, Japan and the People's Republic of China20% spread throughout the rest of the world

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United States37%

Mexico, India, Brazil, Japan and

the People's Republic of

China43%

Rest of the world20%

Income Statement

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Revenue Contd… In 2010, Coca Cola had become

the first brand to top £1 billion in annual UK grocery sales.

The data for the year 2009 is given in the table below:

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Products And Brands

The company offers over 400 brands in 200 countries

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Products And Brands Contd… The company was always a key player

in the production of soft drinks but during the 1990s, the company responded to the growing consumer interest in healthy beverages by introducing several new non-carbonated beverage brands.

Some of these are Minute Maid juices, Powerade sports beverage and Dasani water.

In Japan the best selling drink of the company is not Coca Cola, but Georgia (canned tea). 10

Mission, Vision and Values

Mission StatementOur Roadmap starts with our mission, which is enduring. It declares our purpose as a company and serves as the standard against which we weigh our actions and decisions.To refresh the worldTo inspire moments of optimism and happinessTo create value and make a difference.

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VisionOur vision serves as the framework for our Roadmap and guides every aspect of our business by describing what we need to accomplish in order to continue achieving sustainable, quality growth.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.

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Vision Contd…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

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Core ValuesValues serve as a compass for our actions and describe how we behave in the world.

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

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Coca Cola: Culture

Our Winning Culture defines the attitudes and behaviors that will be required of us to make our 2020 Vision a reality. Live Our Values Our values serve as a compass for our actions and describe how we behave in the world. 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

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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

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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

Be the BrandInspire creativity, passion, optimism and fun.

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Organizational EffectivenessThe current objective of the

organization

“is to use our formidable assets-brands, financial strength, unrivalled distribution system, global reach, and a strong commitment by our management and employees worldwide-to achieve long-term

sustainable growth”

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The Company is globally present and must adjust to the different laws of the different companies.

The Coca-Cola Company’s structure has characteristics of both organic and mechanistic models.

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The stakeholders for The Coca-Cola Company as stated in the company’s Corporate Responsibility Review are:

Stakeholders, Managers and Ethics

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Conflict of Interests among Stakeholders

Each group of stakeholders has a different goal, hence conflicts arise. 1. The shareowners are concerned with earning a profit, while local communities care deeply about environmental issues and labor standards. 2. Suppliers want to charge as much as possible to create more revenues, and The Coca-Cola Company wants to get the lowest prices to decrease costs. 3. Management wants to keep labor costs down, while employees want raises and increased benefits.

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The company promotes decentralization.

The organization has two operating groups called Bottling Investments and Corporate.

There are also operating groups divided by different regions such as Africa Eurasia European Union Latin America North America, and Pacific

Each of these divisions is again divided into geographic regions.

Organizational Design

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The company balances standardization and mutual adjustment.

There is a code of conduct stating as to how the employees should behave in an organization.

The Coca-Cola Company’s structure is a hybrid of both mechanistic and organic models.

There is the presence of complex integrating mechanisms.

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Authority and Control

Coca Cola employs approximately 94800 employees and has more than 5 hierarchical levels.

MD

HR MANAGERS

FRONT LINE MANAGER

WORKERS

MARKETING MANAGER

FRONT LINE MANAGER

WORKERS

FINANCE MANAGER

FRONT LINE MANAGER

WORKERS

PRODUCTION MANAGER

FRONT LINE MANAGER

WORKERS

QUALLITY MANAGER

FRONT LINE MANAGER

WORKERS

ADMIN MANAGER

FRONT LINE MANAGER

WORKERS

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Coca-Cola: Core CompetenciesThe core competencies of the

organization are its strong brand name and its network with its bottlers and distributors.

The strong Coca-Cola brand name gives the company a great deal of bargaining power and leverage.

The contracts and between the organization and its distributers and bottlers creates a symbiotic interdependencies between them.

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The Coca-Cola Company’s business-level strategy is one of differentiation.

The Coca-Cola Company is known for innovative marketing that constantly promotes their brand names and protects their domains from competitors.

By performing extensive market research and creating more local offices, the company is always looking for new ways to serve new customers.

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Strategies Followed…

Organizational Technology

The classification Level of Technical Complexity is as follows:- Small-Batch and Unit

Production:Low to Medium

Large-Batch and Mass Production:

Medium to High

Mechanistic Structure The typical structure of a

manufacturing company that uses mass production is a mechanistic structure, in which efficient production is the desired end.

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Organic Structure The Coca-Cola Company’s structure is unique in that it has a lot of the characteristics of an organic structure. This is due to its focus on marketing and local appeal.

The structural mismatch means that production in the organization may not be as efficient as possible; however, the benefits of the organization’s structure outweigh the consequences.

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The company has faced a variety of internal problems over the years.

A constant struggle in any organization is trying to meet customer demands while trying to keep labor costs low

Uncertainty in the environment has caused many external problems for the organization, ranging from uncertainty with its suppliers and distributors to political and societal pressures.

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Organizational Transformations

In recent years the company has observed that due to multi-divisions, the company is incurring a high bureaucratic cost.

In 2007 CEO Muhtar Kent stated that the company is focusing on simplifying the structure to reduce bureaucracy.

Top managers are being promoted and their goals being aligned with that of the organization in order to ensure growth.

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Conclusion Coca Cola keeps adapting itself with the

changing environment and the demands of the modern world.

However drastic changes take time to implement and produce the desired results.

These changes may include changes in the company culture.

The changes brought on by using the unstructured decision making model created much better results for the company.

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Flaws in the organization is:The board of directors is

responsible for some of the non-programmed decisions made by the company.When decisions are made by the board, it means they lack confidence in the upper management of the company to make vital decisions.

However considering Coca Cola and its effectiveness for over 125 years. It can be believed that any rectifications that are required will be made in due to time to ensure progress of the company.

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Thank You

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