"A Report on Strategic Management Case Of COCA COLA
(Year 2007) Subject: Managerial Policy Section: “B” [MBA – Evening Program] Faculty: Brig. (ret.) Shakeel Ahmed
Prepared & Presented by:
Faraz Ahmed Arshad Khan Mohammad Waqas Zeeshan Ul Haque Group 2 Zohaib Genda Muhammad Tabish Taha Ashok Kumar Tariq Hamidi Mehboob Hassan Sehrish Anwar Tariq Khan Babar Raza Zakia Rasheed Obaid Ullah Aleem
Managerial Policy
Table of Contents 1- EXECUTIVE SUMMARY...........................................................................................4 2- HISTORY OF COCA COLA.......................................................................................5 3- BRANDS OF COCA COLA.........................................................................................8
3.1- Energy Drinks..................................................................................... ..............8 3.2- Juices/Juice Drinks............................................................................................8 3.3- Soft Drinks................................................................................................. .......9 3.5- Tea and Coffee............................................................................................... ...9 3.6 Water....................................................................................................... ..........9 3.7- Other Drinks.................................................................................. .................10
4- CONSUMER CHOICE AT A GLANCE...................................................................11 ...........................................................................................................................................12 5- DIFFERENT PLAYERS IN THE SOFT DRINKS MARKET...............................13 Cadbury Schweppes are joined force of Cadbury found in 1824 of U.K. and Schweppes of Ireland founded in 1783. Cadbury Schweppes is unified bussing which manages the relations his with over 240 franchised bottling operation on Zambia and Zimbabwe. Cadbury Schweppes has fottlery and partnership operations in 14 countries around the world.................................................................................................................................13 6- OUR MISSION:..........................................................................................................14 7- OUR VISION:..............................................................................................................14 8- IMPROVED MISSION STATEMENT:....................................................................15 9- IMPROVED VISION STATEMENT:.......................................................................15 10- COCA COLA - RATIO ANALYSIS........................................................................19
10.1 RATIO ANALYSIS.............................................................................................20
11- FINANCIAL HIGHLIGHTS....................................................................................21 12- UNIT CASE VOLUME.............................................................................................21 13- CURRENT ORGANIZATIONAL CHART............................................................23
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14- VALUE CHAIN ANALYSIS FOR COCA COLA..................................................23 15- E-COMMERCE:.......................................................................................................27 16- VALUE OF THE FIRM............................................................................................27 17- KEY INTERNAL FACTORS Weight Rating weight Score ..................31
18- KEY EXTERNAL FACTOR....................................................................................32 19- COMPETITORS ......................................................................................................33 20- SWOT ANALYSIS..............................................................................................34 21- SPACE MATRIX STRATEGIC MANAGEMENT METHOD............................37 22- BCG MATRIX...........................................................................................................40 23- IE MATRIX...............................................................................................................42 24- QSPM OF COCA COLA..........................................................................................43 25- PROJECTED RATIO ANALYSIS..........................................................................47 S26- CONCLUSION:......................................................................................................48
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1- EXECUTIVE SUMMARY Coca-Cola, the product that has given the world its best-known taste was born in Atlanta, Georgia, on May 8, 1886. Coca-Cola Company is the world’s leading manufacturer, marketer and distributor of non-alcoholic beverage concentrates and syrups, used to produce nearly 400 beverage brands. It sells beverage concentrates and syrups to bottling and canning operators, distributors, fountain retailers and fountain wholesalers. Coca-Cola was first introduced by John Syth Pemberton, a pharmacist, in the year 1886 in Atlanta, Georgia when he concocted caramel-colored syrup in a threelegged brass kettle in his backyard. He first “distributed” the product by carrying it in a jug down the street to Jacob’s Pharmacy and customers bought the drink for five cents at the soda fountain. Carbonated water was teamed with the new syrup, whether by accident or otherwise, producing a drink that was proclaimed “delicious and refreshing”, a theme that continues to echo today wherever Coca-Cola is enjoyed. Coca-Cola originated as a soda fountain beverage in 1886 selling for five cents a glass. Early growth was impressive, but it was only when a strong bottling system developed that Coca-Cola became the world-famous brand it is today. Coca- Cola was the leading soft drink brand in India until 1977, when it left rather than reveal its formula to the Government and reduce its equity stake as required under the Foreign Regulation Act (FERA) which governed the operations of foreign companies in India. In the new liberalized and deregulated environment in 1993, Coca-Cola made its re-entry into India through its 100% owned subsidiary, HCCBPL, the Indian bottling arm of the Coca-Cola Company. The main objective of this study lies in understanding the organization and studying and understanding the consumers’ perception and opinion about the latest product, Minute Maid Pulpy Orange, introduced into India, by the Coca-Cola Company. A consumer sampling involving 5.5 lakh people was conducted in a span of 30 days across major cities in order to give the product the required marketing push and to recognize the prospective consumers and their opinion in order to develop and market the product in a better way in the near future. The methodology used in studying and understanding the perceived views of consumers towards the product was ‘SAMPLING’. The findings of the activity have been drawn out in form of graphs and suggestions have been offered there from
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2- HISTORY OF COCA COLA Coca-Cola® originated as a soda fountain beverage in 1886 selling for five cents a glass. Early growth was impressive, but it was only when a strong bottling system developed that Coca-Cola became the world-famous brand it is today. 1894 – A modest start for a Bold Idea In a candy store in Vicksburg, Mississippi, brisk sales of the new fountain beverage called CocaCola impressed the store's owner, Joseph A. Biedenharn. He began bottling Coca-Cola to sell, using a common glass bottle called a Hutchinson. Biedenharn sent a case to Asa Griggs Candler, who owned the Company. Candler thanked him but took no action. One of his nephews already had urged that Coca-Cola be bottled, but Candler focused on fountain sales. 1899 The first bottling agreement Two young attorneys from Chattanooga, Tennessee believed they could build a business around bottling Coca-Cola. In a meeting with Candler, Benjamin F. Thomas and Joseph B. Whitehead obtained exclusive rights to bottle Coca-Cola across most of the United States (specifically excluding Vicksburg) -- for the sum of one dollar. A third Chattanooga lawyer, John T. Lupton, soon joined their venture. 1900-1909 … Rapid growth The three pioneer bottlers divided the country into territories and sold bottling rights to local entrepreneurs. Their efforts were boosted by major progress in bottling technology, which improved efficiency and product quality. By 1909, nearly 400 Coca-Cola bottling plants were operating, most of them family-owned businesses. Some were open only during hot-weather months when demand was high. 1916 … Birth of the contour bottle Bottlers worried that the straight-sided bottle for Cocawas easily confused with imitators. A group representing Company and bottlers asked glass manufacturers to offer ideas for a distinctive bottle. A design from the Root Glass Company of Terre Haute, Indiana won enthusiastic approval in 1915 and was introduced in 1916. The contour bottle became one of the few packages ever granted trademark status by the U.S. Patent Office. Today, it's one of the most recognized icons in the world - even in the dark! Cola the
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1920s … Bottling overtakes fountain sales As the 1920s dawned, more than 1,000 Coca-Cola bottlers were operating in the U.S. Their ideas and zeal fueled steady growth. Six-bottle cartons were a huge hit after their 1923 introduction. A few years later, open-top metal coolers became the forerunners of automated vending machines. By the end of the 1920s, bottle sales of Coca-Cola exceeded fountain sales. 1920s and 30s … International expansion Led by longtime Company leader Robert W. Woodruff, chief executive officer and chairman of the Board, the Company began a major push to establish bottling operations outside the U.S. Plants were opened in France, Guatemala, Honduras, Mexico, Belgium, Italy, Peru, Spain, Australia and South Africa. By the time World War II began, Coca-Cola was being bottled in 44 countries. 1940s … Post-war growth During the war, 64 bottling plants were set up around the world to supply the troops. This followed an urgent request for bottling equipment and materials from General Eisenhower's base in North Africa. Many of these war-time plants were later converted to civilian use, permanently enlarging the bottling system and accelerating the growth of the Company's worldwide business. 1950s … Packaging innovations For the first time, consumers had choices of Coca-Cola package and type -- the traditional 6.5-ounce contour bottle, or larger servings including 10-, 12- and 26-ounce versions. Cans were also introduced, becoming generally available in 1960. 1960s … New brands introduced Following Fanta® in the 1950s, Sprite®, Minute Maid®, Fresca® and TaB® joined brand CocaCola in the 1960s. Mr. Pibb® and Mello Yello® were added in the 1970s. The 1980s brought diet Coke® and Cherry Coke®, followed by POWERADE® and DASANI® in the 1990s. Today hundreds of other brands are offered to meet consumer preferences in local markets around the world. 1970s and 80s … Consolidation to serve customers As technology led to a global economy, the retailers who sold Coca-Cola merged and evolved into international mega-chains. Such customers required a new approach. In response, many small and medium-size bottlers consolidated to better serve giant international customers. The Company encouraged and invested in a number of bottler consolidations to assure that its largest bottling partners would have capacity to lead the system in working with global retailers. 1990s … New and growing markets size
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Political and economic changes opened vast markets that were closed or underdeveloped for decades. After the fall of the Berlin Wall, the Company invested heavily to build plants in Eastern Europe. And as the century closed, more than $1.5 billion was committed to new bottling facilities in Africa. 21st Century The Coca-Cola bottling system grew up with roots deeply planted in local communities. This heritage serves the Company well today as people seek brands that honor local identity and the distinctiveness of local markets. As was true a century ago, strong locally based relationships between Coca-Cola bottlers, customers and communities are the foundation on which the entire business grows.
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3- BRANDS OF COCA COLA
Coca-Cola Zero® has been one of the most successful product launch hes in Coca Cola’s history. In 2007, Coca Cola’s sold nearly 450 million cases globally. Put into perspective, that's roughly the same size as Coca Cola’s total business in the Philippines, one of our top 15 markets. As of September 2008, Coca-Cola Zero is available in more than 100 countries.
3.1- Energy Drinks
For those with a high-intensity approach to Coca Cola’s brands of Energy Drinks contain ingredients such as ginseng extract, guarana extract, caffeine and B vitamins.
life,
3.2- Juices/Juice Drinks We bring innovation to the goodness of juice Coca Cola’s more than 20 juice and juice drink brands, offering both adults and children nutritious, refreshing and flavorful beverages. in
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3.3- Soft Drinks
Coca Cola’s dozens of soft drink brands provide flavor and refreshment in a variety choices. From the original Coca-Cola to most recent introductions, soft drinks from Coca-Cola Company are both icons and innovators in the beverage industry. 3.4- Sports Drinks
of The
Carbohydrates, fluids, and electrolytes team together in Coca Cola’s Sports Drinks, providing rapid hydration and terrific taste fitness-seekers at any level
for
3.5- Tea and Coffee
Bottled and canned teas and coffees provide consumers' favorite drinks in convenient take-anywhere packaging, satisfying both traditional tea drinkers and today's growing coffee culture.
3.6 Water
Smooth and essential, our Waters and Beverages offer hydration in its purest
Water form.
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3.7- Other Drinks
So much more than soft drinks. Coca Cola’s brands also include milk products, and more so you can choose a Coca Cola Company product anytime, anywhere for nutrition, refreshment or other needs.
soup,
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4- CONSUMER CHOICE AT A GLANCE Coca-Cola Mainly preferred by the Youngster & Kids. Thums-Up Youngster.
Limca Common Drink.
Fanta Basically Preferred by Ladies and Kids.
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Maaza Also Ladies and Kids.
Sprite Not clearly defines.
Kinley Soda Mostly those who consume liquor.
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5- DIFFERENT PLAYERS IN THE SOFT DRINKS MARKET PEPSI Caleb Brandhum, a North Caroline Pharmacist, structure Pepsi Cola In2 the 1890’s as cure of dyspepsia (indigestion). In 1902, Bradhum applied for a trade mark, issued ninety seven share of stock and began selling Pepsi syrup in earnest. In his first year of business he spend $1900 on advertising a huge sum that he sold only 8000 gallons of syrup. In 1905 Bradhum built Pepsi’s bottling plant. By 1907 he was selling 10,000 gallons a year, two years later, he hired a New York advertising agency. After passing through many troubles for some period now Pepsi is a market leader in international arence and is available in 187 Nations throughout the world. CADBURY SCHWEPPES Cadbury Schweppes are joined force of Cadbury found in 1824 of U.K. and Schweppes of Ireland founded in 1783. Cadbury Schweppes is unified bussing which manages the relations his with over 240 franchised bottling operation on Zambia and Zimbabwe. Cadbury Schweppes has fottlery and partnership operations in 14 countries around the world.
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6- OUR MISSION: Our mission declares our purpose as a company. It serves as the standard against which we weigh our actions and decisions. It is the foundation of our Manifesto. (1) To refresh the world in body, mind and spirit. (2) To inspire moments of optimism through our brands and our actions. (3) To create value and make a difference everywhere we engage. 7- OUR VISION: Our vision guides every aspect of our business by describing what we need to accomplish in order to continue achieving sustainable growth. People: Being a great place to work where people are inspired to be the best they can be. Portfolio: Bringing to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs. Partners: Nurturing a winning network of customers and suppliers, together we create mutual, enduring value. Planet: Being a responsible citizen that makes a difference by helping build and support sustainable communities. Profit: Maximizing long-term return to shareowners while being mindful of our overall responsibilities.
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8- IMPROVED MISSION STATEMENT: (1) At Coca Cola we're committed to achieving business and financial success while leaving a positive imprint on society – delivering what we call Performance with Purpose. (2) Our mission is to be the world's premier consumer Products Company focused on convenient foods and beverages. We seek to produce financial rewards to in8vestors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity. 9- IMPROVED VISION STATEMENT: (1) Coca cola Co responsibility is to continually improve all aspects of the world in which we operate – environment, social, economic – creating a better tomorrow than today." (2) Our vision is put into action through programs and a focus on environmental stewardship, activities to benefit society, and a commitment to build shareholder value by making Coca cola Co a truly sustainable company.
Why it is improved:
There is It is our vision to be the best and leading provider of food and beverage products in Pakistan, to facilitate the people of Pakistan and we emphasis on consumer more rather than competitors we among the top ten food and beverage companies in the world, by continually challenging present conventions and always staying a step ahead of the competition.
It is our mission to be the number one food and Beverage Company in Pakistan by providing our customers with the highest product quality in terms of taste, experience, and satisfaction. We will ensure this through an unwavering dedication to the continuous development of our products and processes ensuring that we remain best in class. We will strive to hire the most competent and dedicated employees whose work ethic will set the standard in the industry. We will be paymasters, as we strongly believe that human resource is the only asset that truly appreciates over time. We will also be a responsible social corporate citizen, and strive to enhance the quality of life in the markets we serve.
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Compare Vision & mission with leading competitors
Pakola is firstly introducing in Pakistan in 1950 by Haji Ali Muhammad. It is the first Nationally branded soft drink in Pakistan, it is produced by mehran bottlers (Pvt) Ltd.
Mehran is the first bottling plant in South Asia. Which has been certified to integrated management system based on (ISO 9001:2000), (ISO 14001:1996) Standard and (RVA HACCP) standard Pakola quality and food safety system follows the FDA GMP requirements and codex. Pakola products are manufactured under strict CGMP and Hygiene controls.
Mission statement:
We are focused on driving growth in our business in selected profitable and emerging categories. To develop, implement and continuously improve the integrated management systems in a culture of continuous improvement which: (1) Directs the continual up-gradation for ef..."
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