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John S. Pemberton, led him to create a distinctive tasting soft drink that could be
sold at soda fountains. He created a flavored syrup, took it to his neighborhood
pharmacy, where it was mixed with carbonated water and deemed excellent
by those who sampled it. Dr. Pembertons partner and bookkeeper, Frank M.
Robinson, is credited with naming the beverage Coca-Cola as well as designing
the trademarked, distinct script, still used today.
The first decade of the new millennium brought with it an increase in Coca-Colas
efforts to create a sustainable framework for the future.
The company has continued to build on existing relationships with global sports
events such as FIFA World CupTM, Rugby World CupTM and UEFA EUROTM. It also
played a major role in making the London 2012 Olympics the most sustainable
Games in history, and will be sponsoring this year's 2016 Olympic Games in Rio,
Brazil. Meanwhile, we continue to nurture our affiliation with Special Olympics,
which began in 1968.
Coca-Cola has remained dedicated to offering quality drinks for every lifestyle
and occasion, marketing those drinks responsibly and providing information that
consumers can trust. As of 2008, Coca-Cola could count more than 160 low-
calorie and no-calorie drinks in the companys range, such as Coke Zero and
Powerade Zero. In the UK 39% of the drinks sold are now lower or no calorie.
Strategic Plan
Each of the 200-plus nations we serve plays a critical role in our growth plans.
We used segmented revenue growth strategies across our business in a way that
varied by market type. And we aligned our employee incentives accordingly. In
emerging markets, we focused primarily on increasing volume, keeping our
beverages affordable and strengthening the foundation of our future success. In
developing markets, we struck a balance between volume and pricing. In
developed markets, we relied more on price/mix and improving profitability by
offering more small packages and more premium packages like glass and
aluminum bottles.
Creating value for our Company and customers looks different in different
countries, and we did a good job segmenting our markets to drive revenue
growth in 2015. While we still have more to do, we were encouraged by our
results. Globally, price/mix rose 2 percent as did volume, helping increase
organic revenue 4 percent. We also gained worldwide value share in our industry.
In 2015, we developed our first global marketing campaign to support the entire
Coca-Cola Trademark of Coke, Diet Coke, Coke Zero and Coca-Cola Life.
Launched in early 2016, Taste the Feeling emphasizes the refreshment, taste,
uplift and personal connections that are all part of enjoying an ice-cold
Coca-Cola. With this campaign and our broader one brand strategy, were
letting consumers know they can enjoy Coca-Cola with calories, fewer calories or
no calories and with or without caffeine. The choice belongs to each individual,
every time he or she reaches for a delicious and refreshing Coca-Cola.
3. WE BECAME MORE EFFICIENT
Part of the solution was zero-based worka way of looking at our business that
starts from the assumption that organizational budgets start at zero and must be
justified annually, not simply carried over at levels established in the previous
year. We also cut spending on non-media marketing like in-store promotions. And
we found new savings in our supply chain around the world.
For the future, were working to drive productivity and continuous savings across
our Company and system. We see productivity not as an event or series of
events but as an ongoing, day-by-day process of becoming stronger, leaner and
ultimately better.
Few industries have changed more rapidly in recent years than the nonalcoholic
beverage industry. Evolving consumer tastes and preferences, coupled with
sweeping innovations in the retail and supply chain landscapes, have created an
environment in which speed, precision and empowered employees determine
who wins in the marketplace.
To seize this opportunity, we took steps to reshape our business. We looked hard
at our operating structure and identified areas where we could be faster, smarter
and more efficient. We removed a layer of functional management and
connected our regional business units directly to headquarters. We streamlined a
number of important internal processes and removed roadblocks and barriers
that inhibited us from being as effective and responsive as we knew we could be.
Tactical Plan
The tactical plan describes the tactics the organization plans to use to achieve
the ambitions outlined in the strategic plan. It is a short range . with a scope of
less than one year, low-level document that breaks down the broader mission
statements into smaller, actionable chunks. If the strategic plan is a response to
What?, the tactical plan responds to How?.Creating tactical plans is usually
handled by mid-level managers.The tactical plan is a very flexible document; it
can hold anything and everything required to achieve the organizations goals.
That said, there are some components shared by most tactical plans:
Tactical planning is a process by which companies determine and prioritize
strategic initiatives. These initiatives include what markets to enter, what
products to introduce and how to compete with other companies more
effectively. As is the case with most large and mature companies, Coca-Cola's
tactical decisions revolve around growth. Coca-Cola's tactical planners are
constantly trying to determine what new markets the company should enter,
how to steal market share from competitors and how to encourage more
consumers to use Coca-Cola's products.
Market Sizing
The first step in effective tactical planning is to determine the sizes of various
markets around the world. Conducting a market sizing analysis allows companies
to prioritize which new markets should be targeted first. In conducting this
analysis, Coca-Cola will first consider the total size of a market's population, the
percentage of that population that is currently using Coca-Cola's product and the
quantity of product that Coca-Cola could sell to non-users. For example, suppose
Coca-Cola was considering whether or not to attempt expansion into Argentina.
Using international census data, Coca-Cola's tactical planners determine that the
country's population is 41 million. Coca-Cola would then hire a local marketing
agency to conduct detailed customer surveys to determine what percentage of
the population consumes Coca-Cola's soda on a regular basis. Suppose these
surveys revealed that 40 percent of the population uses Coca-Cola's product,
implying that 60 percent x 41 million = 24.6 million people in Argentina do not
drink Coca-Cola on a regular basis. Suppose these surveys also revealed that the
average person in Argentina drinks 20 bottles of soda per year and that the
average selling price of a bottle of soda is $2. Based on these figures, the total
addressable market size for Coca-Cola in Argentina is 24.6 million x 20 x $2 =
$984 million per year. Completing this type of analysis for a number of countries
allows Coca-Cola to rank each country according to market size, which helps
prioritize which new market the company should target.
Role of Middle Level Managers: They form an important link in strategizing &
Implementation. They are not actively involved in formulation of Strategies and
they are developed to be the future management. COMPANY OVERVIEW The
Coca-Cola Company (Coca-Cola) is a leading manufacturer, distributor and
marketer of Non-alcoholic beverage concentrates and syrups, in the world. The
company owns or licenses more than 400 brands, including diet and light
beverages, waters, juice and juice drinks, teas, coffees, and energy and sports
drinks. The company operates in more than 200 countries.
Approximately 74% of its products are sold outside of the US. The company is
headquartered in Atlanta, Georgia and employs 71,000 people as of September
2006. The company recorded revenues of $24,088 million during the fiscal year
ended December 2006, an increase of 4. 3% over 2005. The increase in revenue
was primarily due to increase in sales of Unit cases of companys products from
approximately 20. 6 billion unit cases of the companys Products in 2005 to
approximately 21. 4 billion unit cases in 2006, the increase in the Price and
Product/geographic mix also boosted the revenue growth.
Operational Plan
The operational plan describes the day to day running of the company. The
operational plan charts out a roadmap to achieve the tactical goals within a
realistic timeframe. This plan is highly specific with an emphasis on short-term
objectives. Increase sales to 150 units/day, or hire 50 new employees are
both examples of operational plan objectives.
For operating a business worldwide it is too much important, because its analysis
represent the overall environmental scanning as shown in the following diagram:
Environmental Scan / External Analysis Internal Analysis / Macro environment
Microenvironment P. E. S. T. Coca-Cola Companys perform/ operate their
business unit in different country based on the developing of the PEST analysis.
The PEST analysis of Coca-Cola Company is as following
Political Factors It is one of the significant parts of a company where, in which
country they operate their business unit. Political factors include government
regulations and legal issues and define both formal and informal rules under
which the firm must operate.
Some examples include:
tax policy
employment laws
environmental regulations
trade restrictions and tariffs political stability Economic Factors Another most
imperative element for PEST analysis is economic factors.
Economic factor affects the purchasing power of potential customers and the
firms cost of capital. The following are examples of factors in the macro-
economy:
economic growth
interest rates
exchange rates
inflation rate Social Factors Social factors include the demographic and cultural
aspects of the external macro environment.
These factors affect customer needs and the size of potential markets. Some
social factors include
: health consciousness
population growth rate
age distribution
career attitudes
emphasis on safety
Technological Factors Technological factors can lower barriers to entry, reduce
minimum efficient production levels, and influence outsourcing decisions. Some
technological factors include:
R;D activity
automation
technology incentives
rate of technological change Develop Strategic and tactical goals and plans of
Coca-Cola Company After completion of SWOT and PEST analysis as context,
international strategic planning is largely framed by the setting of strategic
goals. Based on different market situation as well as customers response this
company will set up their tactical goals for being a strong position in the global
market place.
The company operates in more than 200 countries .Strategic management
integrates the knowledge and experience gained in various functional areas. 3
Major Criteria in decision Making arethe concept of Maximization, the concept
of satisfying, the concept of instrumentalism. The vision of Coca-Cola Company
is to refresh the world in body, mind and spirit Bringing to the world a portfolio of
quality beverage brands that anticipate and satisfy peoples desires and needs.
Coca-Cola Zero has been one of the most successful product launch hes in
Coca-Colas history It has soft drinks, energy drinks, juice drinks, sports drinks,
tea and coffee, water and other drinks. Coca-Cola Company follows the multi-
domestic strategy for operating their business. After entering into a new market
Coca-Cola Company try to achieve strategic goals and guide its daily activities
with proper observation.
Conclusion
1. The Coca-Cola Company: (2014). Mission, Vision & Values. Retrieved July
16, 2014 from: http://www.coca-colacompany.com/our-company/mission-
vision-values.
2. The Coca-Cola Company: (Vision 2020).Road for winning together: TCCC &
aour bottling patners. Retrieved on 17 July, from http://assets.coca-
colacompany.com/22/b7/ba47681f420fbe7528bc43e3a118/2020_vision.pd
f
3. The Coca-Cola Company: (April, 2009). Code of Conduct: Acting with
Integrity Around the Globe. Retrieved on 17 July, 2014 from
http://assets.coca-
colacompany.com/45/59/f85d53a84ec597f74c754003450c/COBC_English.p
df
4. The Coca-Cola Company: (2014). Chairman of the Board and Chief
Executive Officer: Muhtar Kent. Retrieved July 16, 2014
from:http://www.coca-colacompany.com/our-company/board-of-directors-
muhtar-kent
5. Gilhuly, J. (2014, March 1st). Coca-Cola Organizational Complexity.
Retrieved July 16, 2014 from
http://juliegilhuly.wordpress.com/2014/03/01/coca-cola-organizational-
complexity/
6. Vicky, N. (2010). The Coca-Cola Company 2010: Organizational Structure
of The Coca-Cola Company. Retrieved July 16, 2014 from
http://www.scribd.com/doc/37483762/Organizational-Structure-of-The-
Coca-Cola-Company
7. Shetty, N. (May 4th, 2011). Leadership Style at Coca-Cola Company.
Retrieved July 16, 2014 from
http://www.managementparadise.com/forums/foundation-human-skills-f-h-
s/221096-leadership-style-coca-cola-company.html#post453091
8. USSEC (2009). Annual report pursuant to section 13 or 15(d) of the
securities exchange act of 1934. Retrieved 17 July, 2014 from
http://www.wikinvest.com/stock/Coca-Cola_Company_%28KO
%29/Filing/10-K/2010/F46738191
9. The Coca-Cola Company: (2014). As Inclusive As Our Brands: 2009 U.S.
Diversity Stewardship Report. Retrieved from http://assets.coca-
colacompany.com/51/ba/c9ddc22646ca9660ee4d8f309c01/2009_Diversity
_Report.pdf