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Woodruff, whose son Robert became president in 1923. Robert Woodruff was the man responsible for the rapid expansion of the Coke brand throughout the world -- during World War II, he decreed "every man in uniform gets a bottle of Coca-Cola for 5 cents, wherever he is, and whatever it costs the company."
MISSION STATMENT
In the early 1990s, Roberto Goizueta shared the following mission statement in a booklet entitled 'Coca-Cola, a Business System toward 2000: Our Mission in the 1990s'. "Bringing refreshment to a thirsty world is a unique OPPORTUNITY for our Company... and for all of our Coca-Cola associates... to create shareholder value. Ours is the only production and distribution system capable of realizing that opportunity on a global scale. And we are committed to realizing. With Coca-Cola as the enterprise, ours is a worldwide system of superior brands and services through which we, our franchises, and other business partners deliver satisfaction and value to customers and consumers. By doing so, we enhance brand equity on a global basis. As a result, we increase shareholder wealth over time. Our GOAL for the 1990s sounds deceptively simple: It's to expand our global business system, reaching increasing numbers of consumers who will enjoy our brands and products more and more often. To succeed we will make effective use of our fundamental RESOURCES: brands, systems, capital, and, most important, people. Because these resources are already available, one might assume we need only to draw on them for achieving our goal. Nothing could be more wrong. The CHALLENGE of the 1990s will be not only to use these resources but to expand them... to adapt them... to reconfigure them in constantly changing ways in order to bring about an ever renewed relationship between the Coca-Cola system and the consumers of the world .to make the best even better. About brands Increasing globalisation of the communication industry means we can more effectively expose our advertising and other image-building programs through a worldwide brand framework. This places a premium on maintaining our traditional excellence as a premier brand advertiser. Yet we must remember that it is our franchisee network around the world, which will distribute and locally market our brands. To appropriately leverage these brands, we must recognize that our franchisees and we are fundamentally in the business of servicing our customers and meeting the needs, real o perceived, or our customers. Coca-Cola, in every form... classic, diet, caffeine free, cherry, light... is the most widely recognized and esteemed brand in the world. Sprite and Fanta are worldwide brands; they
must play a role in our brand strategy. We will continually strive to develop new brands where the opportunity presents itself. About systems... Moving closer to the customer both in our own organizational structure and in timely decision-making will be mandated by the global, yet diverse, marketplace of the 1990s. Structurally, a flatter organization of our Company will be required. Ours is a multilocal business. Its relative state of development varies dramatically from the soft drink frontiers of Asia to the sophisticated markets of North America... -At present, our main product, 'Coca-Cola', is now sold in over 135 countries, and is the leading soft-drink product in most of these countries. About capital... Shaping business systems which are close to consumers will require not only the investment of our capital for new assets but more sophisticated management of existing ones Existing assets will be evaluated as potential resources for meeting our goal. About people... We need the right people for the 21st century... We must have people who use facts and knowledge to add something... to add value to our customers' businesses. In an age where everyone has basically the same information at the same time, the advantage goes to people who can take information and quickly put it to effective and profitable use... It means having people who can create a competitive advantage".
PESTEL ANALYSIS
Political Analysis for Coca-Cola
Non-alcoholic beverages fall within the food category under the FDA. The government plays a role within the operation of manufacturing these products in terms of regulations. There are potential fines set by the government on companies if they do not meet a standard of laws. The following are some of the factors that could cause Coca-Cola company's actual results to differ materially from the expected results described in their underlying company's forward statement:-
Changes in laws and regulations, including changes in accounting standards, taxation requirements, (including tax rate changes, new tax laws and revised tax law interpretations) and environmental laws in domestic or foreign jurisdictions.
Changes in the non-alcoholic business environment. These include, without limitation, competitive product and pricing pressures and their ability to gain or maintain share of sales in the global market as a result of action by competitors. Political conditions, especially in international markets, including civil unrest, government changes and restrictions on the ability to transfer capital across borders. Political structure and legal considerations also have impinged on Coco-Cola Companys strategies. Governments of some Arab nations boycotted Coca-Colas products due to a political dispute and discontented with the company for maintaining distributors in Israel.
Economical Analysis
Being flexible and willing to change to satisfy consumers needs, has enabled Coca-Cola to exploit the economies of scale that was gained by its global marketing and at the same time making its products appeal to local taste, which these have earned the company an enormous profits quarterly. As Coca-Cola has expanded over the decades or even nearly a century, the company has benefited from the various cultural insights and perspectives of the societies in which business is done. No doubt of the remarkable experience it has, it is still very committed to local markets, to paying attention to what people from different cultures and backgrounds like to drink, and where and how they like to drink it, to remain competitive and to develop more new drinks to satisfy its markets. Now, the estimated brand equity of Coca-Cola is $84billion, market share of more than 50 percent in beverage industry globally and about 70 percent of its income comes from countries outside United States. Every 10 seconds, 126,000 people in the whole world, choose to reach out for one of The Coca-Cola Company brands, and it is the companys mission to make that choice exciting and satisfying, every single time.
Previously the U.S. economy was strong and nearly every part of it was growing and doing well. However, things changed. Before the attacks on September 11, 2001, the United States was starting to see the economy recover slightly and it is only just recently that they achieved the economic levels. Consumers are now resuming their normal habits, going to the malls, car shopping, and eating out at restaurants. However, many are still handling their money cautiously. They believe that with lower inflation still to come, consumers will recover their confidence over the next year. As researching for new products would cost less the Coca-Cola Company will sell its products for less and the people will spend as they would get cheap products from Coca-cola.
Consumers from the ages of 37 to 55 are also increasingly concerned with nutrition. There is a large population of the age range known as the baby boomers. Since many are reaching an older age in life they are becoming more concerned with increasing their longevity. This will continue to affect the non-alcoholic beverage by increasing the demand overall and in the healthier beverages.
Legal Analysis
Legal aspect focuses on the effect of the national and world legislation. The Coca Cola Company receives all the rights applicable in the nature of their business and every inventions and product developments are always going into the patented process.
Environmental Analysis
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Environmental analysis examines the local, national and world environmental issues. According to the data of the Coca Cola Company, all of the facilities are strictly monitored according to the environmental laws imposed by the government.
Last Words With the intensive study of the PESTLE, the company will continue to emerge and develop if they manage to find solutions in different challenges that the entire organization might face.