University of Santo Tomas

Faculty of Engineering
Industrial Engineering Department
A.Y. 15-16

Company and
11/23/2015 Industry Analysis
Coca-Cola Company

Judy Ann Fatima J. Revelar

3 IE-A
A. ABOUT COCA-COLA COMPANY

VISION:
Our 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.
 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.

MISSION:
Our 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 world...
 To inspire moments of optimism and happiness...
 To create value and make a difference.

CORPORATE STRATEGIES

The popularity of soft drinks, especially in mature markets, has been on the decline since
about 2005 as negative publicity about obesity and other health risks continues to threaten sales.
As a result, The Coca-Cola Company and other top soft drink makers are turning toward other
parts of their noncarbonated product portfolio for growth, such as fruit juices, sports and energy
drinks, and bottled water and tea beverages.

A part of the plan to rely less on the old way of doing business, and compensate for
falling sales amidst changing tastes, the company is selling many of its low-margin bottling
operations to concentrate on higher margin operations like selling concentrates and syrups to
bottlers.

The Coca-Cola Company is also looking to relatively undeveloped markets with a

growing middle class and money to spend on soft drinks and juices. To that end, it announced it
will invest $5 billion with its bottling partners in Africa by 2020, raising its investment in the
region to $17 billion from 2010 to 2020. Coke plans to build new manufacturing capacity,
develop sustainability initiatives and create jobs.

Also in 2014, the company teamed up with Keurig Green Mountain, entering into a 10-
year global strategic agreement to collaborate on the development and introduction of The Coca-
Cola Company global brand portfolio for use in Keurig Green Mountain's Keurig Kold at-home
beverage system. It purchased a 16% stake in Monster Beverage Corporation in a long-term
strategy to accelerate growth for both companies in the fast-growing, global energy drink
industry.

In 2013 Coca-Cola opened a new bottling plant in Myanmar as part of a planned $200
million investment during the next five years there which also includes adding more than 22,000
jobs during that time period.

LONG TERM PLANS

Simplify Operating Model
Coca-Cola will simplify its operating model by providing clear targets and goals to its
employees. The goal is to empower individual employees at the local level. Coca-Cola is
attempting to simplify its operations by refranchising the majority of its North American Bottlers
by 2020.

Expand Productivity Program

Coca-Cola’s productivity program is targeting $3 billion in savings per year by 2019. The
program is focusing on:
 Restructuring the company’s global supply chain
 Implementing zero based budgeting
 Increasing discipline and efficiency in marketing
Coca-Cola’s marketing budget is expanding. The cost savings from the plan will come
predominantly from operating improvements. We have already seen operating income rise in the
fourth quarter of 2014 as a result of efficiency gains from the productivity program.

Focus on Great Brands & Strong Bottling Partners

 As mentioned before, Coca-Cola plans to refranchise its North American bottling
operations. The company is putting its trust in its bottling partners to decentralize operations.
Coca-Cola now has 20 brands that generate over $1 billion a year in revenue. This year, Gold
Peak Tea, FUZE Tea, and I LOHAS joined the company’s other 17 billion dollar brands. Coca-
Cola’s increased marketing spending this year shows that the company will continue to invest
heavily to support its industry leading brand portfolio.

Target Investments that Leverage Global Strengths

Coca-Cola’s recent acquisition of several brands from Monster Beverage (including
Peace Tea and Hubert’s Lemonade) show how Coca-Cola plans to make investments that
leverage its global strengths. The company can acquire strong brands that are sold
predominantly in one market and use its best-in-class supply chain to spread products around the
globe. In this way, it can rapidly increase sales of brands that perform well domestically and test
them on a global scale.

Provide Local Operations with Clear Goals

In addition to zero cost budgeting, Coca-Cola is also restructuring its incentive program
to drive growth. The company is including revenue growth as an incentive goal for its various
divisions. This move should incentivize growth and give employees a clear goal as to what is
expected of them and what they should focus on.

MEDIUM TERM PLANS

 The Coca-Cola Company aims to be globally known as a business that conducts business
responsibility and ethics.
 Accelerating sustainable growth to operate in tomorrow's world is a plan that The Coca
Cola Company follows.
 Forming the foundation for companies in the decision making process

ORGANIZATIONAL CULTURE
The Coca Cola Company is a high performance team in a happiness factory with happy
energy who takes ownership and pride in refreshing and inspiring the world around us. They
leverage their rich individuality to grow the collective excellence. They believe that the true
"secret formula" of Coca-Cola is its highly talented and motivated associates.

POLICIES
I. HUMAN RIGHTS POLICY
 1. Respect for Human Rights

The Coca-Cola Company respects human rights. It is committed to identify, prevent, and
mitigate adverse human rights impacts resulting from or caused by our business activities before
or if they occur through human rights due diligence and mitigation process.

2. Community and Stakeholder Engagement

The company recognizes its impact on the communities in which it operates. We are
committed to engaging with stakeholders in those communities to ensure that we are listening to,
learning from and taking into their account their views as we conduct our business.

3. Valuing Diversity

The company values the diversity of the people with whom we work and the
contributions they make. We have a long standing commitment to equal opportunity and
intolerance of discrimination and harassments. The basis for recruitment, hiring, placement,
training, compensation and advancement at the company are qualifications, perfomance, skills
and experience.

4. Freedom of Association and Collective Bargaining

The company respects our employees right to join, form or not to join a labor union
without fear of reprisal, intimidation or harassments. Where employees are represented by a
legally recognized union, we are committed to establishing a constructive dialogue with their
freely chosen representatives.

5. Safe and Healthy Workplace

The company provides a safe and healthy workplace an complies with applicable safety
and health laws, regulations, and internal requirements. We are dedicated to maintaining a
productive workplace by minimizing therisks of accidents, injury and exposure to health risks.
6. Workplace Security
The company is committed to maintaining a workplace that is free from violence,
harassments, intimidation and other unsafe or disruptive conditions due to internal and external
threats. Security safeguards for employees are provided as needed and will be maintained with
respect for employee privacy and dignity.
7. Forced Labor and Human Trafficking
The company prohibits the use of all forms of forced labor, including prison labor,
indentured labor, bonded labor, military labor, slave labor and any form of human trafficking.
8. Child Labor
The company prohibits the hiring of individuals that are under 18 years of age for
positions in which hazardous work is required.
9. Work Hours, Wages and Benefits
The company compensates employees competitively relative to the industry and local
labor market. we operate in full compliance with applicable wage, work hours, overtime and
benefit laws.
II. PRIVACY POLICY

A. General

The Coca-Cola company believes it is important that you know how they treat the
information they receive on the Internet about you. Therefore, this privacy policy outlines the
information that the company may collect from you and how they may use that information. The
company reserve the right to modify or amend this privacy policy in their sole discretion at any
time without providing notice to you.

B. Personal Information

When you provide them with personal data, they may use that information in the
following ways: they may use the information to respond to your inquiry, process your request or
allow you to access specific account information; they may store and process the data to better
understand your needs and how they can improve their products and services;
they may transfer your personal data across country borders within their company; and/or
they may provide other third parties with aggregate, but not individual, data about visitors to, or
users.

C. Children

The company do not intend to collect any personal information from children under
thirteen years of age. Where appropriate, they will explicitly instruct children not to provide such
personal data on the Site and/or will take reasonable measures to obtain parental consent to such
submission. They encourage parents to instruct their children to use their personal data in a safe
and responsible manner while using the Internet.

D. Communications

Coca-cola enterprise will only use the information you provide on the Site to contact you
if this is what you have requested. Coca cola enterprise will only communicate with you for the
purpose you have indicated. They will not use this information for any other purpose and will
not communicate with you for any other reason, including direct marketing.

E. Cookies

The Site uses cookies to distinguish you from other users of our website. This helps them
to provide you with a good experience when you browse their website and also allows us to
improve our Site.
A cookie is a small file of letters and numbers that they store on your browser or the hard drive
of your computer. Cookies contain information that is transferred to your computer's hard drive.
CORPORATE SOCIAL RESPONSIBILITY

Corporate Responsibility and Sustainability is at the heart of everything that the Coca
Cola company do - from how we source our products and packaging, how we manage our
manufacturing, sales and distribution, and how they work with customers and consumers to close
the loop in recycling their packaging.

HISTORY

Coca-Cola history began in 1886 when the curiosity of an Atlanta pharmacist, Dr. 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. Pemberton’s 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.
a. Did you know? The first servings of Coca‑Cola were sold for 5 cents per glass.
During the first year, sales averaged a modest nine servings per day in Atlanta.
Today, daily servings of Coca‑Cola beverages are estimated at 1.9 billion
globally.
Prior to his death in 1888, just two years after creating what was to become the world’s
#1-selling sparkling beverage, Dr. Pemberton sold portions of
his business to various parties, with the majority of the
interest sold to Atlanta businessman, Asa G. Candler. Under
Mr. Candler’s leadership, distribution of Coca‑Cola expanded
to soda fountains beyond Atlanta. In 1894, impressed by the
growing demand for Coca‑Cola and the desire to make the
beverage portable, Joseph Biedenharn installed bottling
machinery in the rear of his Mississippi soda fountain, becoming the first to put Coca‑Cola in
bottles. Large scale bottling was made possible just five years later, when in 1899, three
enterprising businessmen in Chattanooga, Tennessee secured exclusive rights to bottle and sell
Coca‑Cola. The three entrepreneurs purchased the bottling rights from Asa Candler for just $1.
Benjamin Thomas, Joseph Whitehead and John Lupton developed what became the Coca‑Cola
worldwide bottling system.
Among the biggest challenges for early bottlers, were imitations of the beverage by
competitors coupled with a lack of packaging consistency among the 1,000 bottling plants at the
time. The bottlers agreed that a distinctive beverage needed a standard and distinctive bottle, and
in 1916, the bottlers approved the unique contour bottle. The new Coca‑Cola bottle was so
distinctive it could be recognized in the dark and it effectively set the brand apart from
competition. The contoured Coca‑Cola bottle was trademarked in 1977. Over the years, the
Coca‑Cola bottle has been inspiration for artists across the globe — a sampling of which can be
viewed at the World of Coca‑Cola in Atlanta. Check out a preview of the latest art exhibit.
The first marketing efforts in Coca‑Cola history were executed through coupons
promoting free samples of the beverage. Considered an innovative tactic back in 1887,
couponing was followed by newspaper advertising and the distribution of promotional items
bearing the Coca‑Cola script to participating pharmacies.
 Fast forward to the 1970s when Coca‑Cola’s advertising started to reflect a brand
connected with fun, friends and good times. Many fondly remember the 1971 Hilltop Singers
performing “I’d Like to Buy the World a Coke”, or the 1979 “Have a Coke and a Smile”
commercial featuring a young fan giving Pittsburgh Steeler, “Mean Joe Greene”, a refreshing
bottle of Coca‑Cola. You can enjoy these and many more advertising campaigns from around the
world in the Perfect Pauses Theater at the World of Coca‑Cola.

EVOLUTION OF THE COCA-COLA BOTTLE

The 1980s featured such memorable slogans as “Coke is It!”, “Catch the
Wave” and “Can’t Beat the Feeling”. In 1993, Coca‑Cola experimented
with computer animation, and the popular “Always Coca‑Cola” campaign
was launched in a series of ads featuring animated polar bears. Each
animated ad in the “Always Coca‑Cola” series took 12 weeks to produce
from beginning to end. The bears were, and still are, a huge hit with
consumers because of their embodiment of characteristics like innocence,
mischief and fun. A favorite feature at the World of Coca‑Cola is the ability
to have your photo taken with the beloved 7′ tall Coca‑Cola Polar Bear.
Did you know? One of the most famous advertising slogans in Coca‑Cola history “The
Pause That Refreshes” first appeared in the Saturday Evening Post in 1929. The theme of
pausing with Coca‑Cola refreshment is still echoed in today’s marketing.

In 2009, the “Open Happiness”

campaign was unveiled globally.
The central message of “Open
Happiness” is an invitation to
billions around the world to
pause, refresh with a Coca‑Cola, and continue to enjoy one of life’s simple pleasures. The “Open
Happiness” message was seen in stores, on billboards, in TV spots and printed advertising along
with digital and music components — including a single featuring Janelle Monae covering the
1980 song, “Are You Getting Enough Happiness?” The happiness theme continued with “Open
the Games. Open Happiness” featured during the 2010 Winter Olympic Games in Vancouver,
followed by a 2010 social media extension, “Expedition 206” — an initiative whereby three
happiness ambassadors travel to 206 countries in 365 days with one mission: determining what
makes people happy. The inspirational year-long journey is being recorded and communicated
via blog posts, tweets, videos and pictures.

ORGANIZATIONAL DESIGN

A. Key People behind the Company

Muhtar Kent, the Coca-Cola Company Chairman of the Board and Chief Executive Officer,
leads everyone into the new century with a firm commitment to the values and spirit of the
world's greatest brand. In their journey to become a sustainable, profitable growth company,
their management structure has evolved to sharpen external focus on the marketplace with
greater speed, productivity and effectiveness.

Robert “Bobby” Kotick has been a Director of TheCoca-Cola Company since 2012. Mr.
Kotick is President, Chief Executive Officer and a Director of Activision Blizzard, Inc., an
interactive entertainment software company, and has held these positions since 2008. Mr. Kotick
served as Chairman and Chief Executive Officer of the predecessor to Activision Blizzard, Inc.
from 1991 to 2008.

Ahmet C. Bozer is Executive Vice President of The Coca-Cola Company. Before assuming his
current role, Ahmet was Executive Vice President and President,Coca-Cola International. Prior
to that, he served as President, Eurasia & Africa Group, where he led the Company’s business
activities in more than 90 countries. Ahmet began his career with The Coca-Cola Company in
1990 as a Financial Controller Manager in Atlanta. Ahmet moved to Turkey in 1992 as Region
Finance Manager. In 1994, he joined the Coca-Cola Bottlers of Turkey (now Coca-ColaIcecek
A.S.) as Finance Director and was named managing Director in 1998. In 2000, Ahmet rejoined
the Company as President of the Eurasia Division, which became Eurasia and Middle East
Division in 2003, covering 36 countries, including the Adriatic and Balkans Region. In 2006,
Ahmet assumed the additional leadership responsibility for the Russia, Ukraine and Belarus
Division. In 2007, with the addition of the India and South West Asia Division under his
responsibilities, Ahmet was named President of the Eurasia Group.

B. Description of the Organizational Structure

The Coca-Cola Company has a Separate International Division Structure because its
international staffs operate separately and in isolation from head office. It has various divisions
in all continents around the world with presidents that control each continental division. Coca-
Cola has 5 continental divisions: Eurasia & Africa Group, Europe Group, Latin America Group,
North America Group, Pacific Group. Each Continental division has vice presidents that control
sub-divisions based on regions or countries. This structure is efficient for Coca-Cola since it is a
very large company.
The Coca-Cola Company has a structural design similar to the functional design of an
organization which is also known as a u-form design. The CEO is the hearrt of the operating
systeem of the company. Under him are a lot of subordinates who control the overall business
activities of the company. They control the financial, marketing, operations, human resource,
etc., of the organization.
When Coca-Cola takes up a new project for a new product, they tend to use the matrix
design of organization in which several project managers are responsible for controlling the
process of making a product. The subordinates who work under the the different departments are
also under the project managers.
The company operates mostly as a functional form but may also use the matrix design,
thus making the Coca-Cola Company’s organizational design a hybrid design.
 C. Work Arrangements

The company offers associate training and workshops on time management; provide
flexible work arrangements in many areas of our business; and provide tools and resources to
allow work to be done efficiently and effectively in a normal workday. The company aims to
improve the quality of life of their employees, while optimizing and upgrading job performance.

D. Employee Benefits

1. Health & Welfare:

Medical (including vision), Dental, Accidental Death & Dismemberment, Group Life
Insurance, Dependent Life Insurance, Flexible Spending Accounts, Business Travel Accident
Insurance, Short-Term Disability, Long-Term Disability, Survivor's Benefits Program and an
Employee Assistance Program with confidential counseling services.

2. Protection for the Unexpected:

Medical and dental coverage for eligible dependents, including same-sex domestic
partners, and on-site medical services clinic at the Company headquarters office.

3. Workplace:

A workplace that includes a diverse, inclusive and fair environment, specialized

employee affinity groups, a commitment to training, a mentoring program to broaden employees'
network and resources, vacation purchase program, and business casual attire.

4. Lifestyle:

Adoption assistance and quality-of-life benefits including paid vacation and holidays,
flex-time, job sharing, telecommuting and local health club discounts.

5. Financial:

Rewards & Recognition that include competitive compensation, annual merit review,
equity plans for employees in specified grade levels and the Red Tag program that recognizes
performance with redeemable points for travel awards or merchandise.
Education benefits that include tuition reimbursement and a renewable undergraduate
scholarship fund for dependents of Company employees.
Discounts & Conveniences that include automobile discount plan, employee discount program
and, at Company headquarters office: on-site dry cleaning, cafeteria, credit union, Company
store, concierge services and free parking.
Retirement Plans, including a 401(k) plan with Company match of three percent and
choice of funds and a defined benefit plan that is entirely funded by the Company.
Matching Gifts Program up to $10,000 per participant each calendar year on a 2-for-1 basis.

E. Performance Management

1. Encouraging Open Communication:

To encourage a work environment of open communication and to effectively solicit and

leverage innovative ideas, they engage in frequent dialogue with our associates around the world.
Such dialogue provides them with valuable information, increases awareness, promotes business
strategies, shares successes and opportunities, and solicits employee opinions.

2. Rewarding and Developing Employees:

Their compensation and benefits packages are among the best in the world, benchmarked
against other global, high-performing employers. They also offer a variety of developmental
opportunities for our associates, including Coca-ColaUniversity, a learning program for high
performers. Using the Peak Performance System, their performance management and
development system, in tandem with more than 100 global people development forums,
associates and their managers regularly discuss development, movement and succession plans
around the world.

CORE BUSINESSES
The Coca-Cola Company’s core is the production, marketing, and selling of beverages.
The company is known for its wide range of product line for beverages, but the most famous
among its products is the Coca-Cola soda.

PRESENT CHALLENGES AND ISSUES

1. Addressing uncertainty in low-calorie CSD strategy

Governments all over the world are publicizing obesity concerns, and the sugar content of
soft drinks has come under increasing scrutiny. The Coca-Cola Co has already developed low
and zero calorie drinks that are the top ranked brands within their categories. The company
should continue to research low-calorie alternative CSDs – in particular natural low-calorie
options and low-calorie soft drink options outside the traditional CSD category.

2. Emerging Market Performance

Coca-Cola has already established itself in emerging markets, dominating the carbonates
category and often the entire soft drinks market. However, the company cannot rest on its laurels,
and it will see increasing competition from domestic players, while global competitors – notably
PepsiCo – will be eager to take Coca-Cola’s market share in growth regions. Is share
performance in these vital growth markets holding up, or is the company losing ground to
domestic players, particularly brands with value positioning?
 3. Capitalise on the wider health and wellness trend

Areas such as ‘better-for-you’, ‘naturally healthy’ and ‘fortified/functional’ are the

opportunity areas within existing soft drinks categories. Coca-Cola already has a wide range of
juice brands and waters that could prove to be winners for the company, but it must continue to
develop and innovate new health and wellness angles within its brands. A key growth area could
be fortified/functional drinks and energy drinks, where opportunities to add new functional
ingredients are continually being discovered.

4. Spread risk from carbonates – look to push other drink categories

The popularity of carbonates has waned in traditional high consumption markets. Public
pressure to reduce sugar consumption via soft drinks will remain high. Coca-Cola is looking to
expand sales of other beverages and diversify its soft drinks category portfolio, including
functional beverages and dairy. Categories in which the company is not dominant globally
include RTD tea. Pushing development in these categories could provide more holistic growth
opportunities in China and greater Asia.

TOOLS FOR MEASURING ORGANIZATIONAL PERFORMANCE

Balance Scorecard is an important approach for measuring and managing the most
critical processes in organization. Scorecard covers all aspects of the organizational behaviors
and the stakeholders according to growth, legislation, market, competitors, product growth,
customer expectation, customer satisfaction, etc (M. Schneiderman, 1998). The balanced
scorecard methodology, as with most performance management methodologies, requires the
creation of a vision, mission statement and strategy for the organization.
The DKPMS is implemented to provide the facility to the organizations having their
network of department and intends to manage the whole network from its head. Through this
software the performance Management system (Balance Score Card) related to any Site can be
available. Distributed Knowledgeable Performance Management System has different functions,
some main include operation about KPI, New Prospective, BSC Reports, Distributive BSC
System, Final PMS Reports, KPI’s Search Facility, Distributed QFD, Distributed BSC. The tools
for implementation are JDK, EJB, Java Swing, Oracle and WebLogic.

EXAMINATION OF HOW THE COMPANY PERFORMS THE

MANAGEMENT FUNCTIONS
PLANNING

According to Professor Stoner, "Planning is of establishing objectives and appropriate

courses of action before taking action". Planning is the process or method of making rational
decisions that will affect the company's standing. In the Coca-Cola Company, planning activities
and goal setting are handled by the top management. The top managers were the ones
responsible for the setting of the objectives for the whole organization. The objectives of the
company can be classified as strategic, tactical, and operational goals.
Strategic goals are usually made for long term but Coca-Cola Company's goals are set
only for a span of three years. The goals are set by the Managing Directors of the company after
getting a clearance from the headquarters. They usually change their strategies every three years
and they have review of their strategies during their annual meeting in order to make sure that
they are coping up with the changing environment in the market.
For the tactical goals, the top level management sets these goals at the end of the year
with the consultation of lower level employees. The tactical goals of the Coca-Cola Company
were centred on how to increase their revenue, market share, and number of retail customers.
The Managing director is also responsible for setting the operational goals of the
company. In this type of goal, the company uses Management by Objectives in which every
employee assigned is told about the organization's expectations from him/her and then the
evaluation is done on the basis of the organization's rules and regulations.
The Coca-Cola Company uses the classical model in decision making process. The top
level managers spend their time in making the decisions, considering the consequences and
making all the possible alternatives at hand. The decisions which are taken by the top level
management are usually concerned with the package positioning, trade discounts,
advertisements, price reduction and distributions.

ORGANIZATION

According to Chester I. Barnard, "Organization allows people to achieve what they could
achieve as individuals". Based on the basic functional approach, the Coca-Cola Company is
divided into different departments and individuals who have the same skills and work activities
were grouped together. This style helps the company attain greater excellence with less guidance
of the subordinates.
The Coca-Cola Company has a total of five main departments namely: Production
Department, Industrial Relation Department, Sales and Marketing Department, Human
Resources Department, and Finance and Accounting Department. Each department was
organized according to function. The Production Department is responsible for keeping an eye
around all the productions of the company. The Industrial Relations Department deals with the
problems of the employees that hurdles them in the progress of the company. The Sales and
Marketing Department assures that the products are easily available in the market for the
customers and deals with the issues of advertisement, promotion, and distribution of product.
The Human Resources Department takes care of the efficient workers of the company and
recommend them for promotion to ensure that the workers remain happy and won't leave the
company. Lastly, the Finance Department is concerned with the cost and price of the products
produced by the company. The department intertwines with the Sales and Marketing Department
in making invoices and payrolls.
Work Specialization is very evident in the company because every manager is
placed in the function where he is an expert. All promotions were based on their performances.
There is also a high percentage of delegation and accountability in the company. Every manager
is made accountable for the actions of his subordinates, therefore the manager guides his people
in order for them to accomplish their desired goals. The delegation process allows the managers
to make their subordinates more efficient.
LEADING

According to Bateman-Snell, "Leading is the management function that involves the

manager's efforts to stimulate high performance by employees". The General Manager is placed
on the top of the hierarchy to take the responsibility of deciding major administrative decision in
accordance to the company’s policy and operations while the Departmental Managers are tasked
to lead their subordinates. These leaders coordinate with each other in the operation and they also
encourage their subordinates to give new ideas to increase customer's level of satisfaction. The
top level management also serves as the role models of their subordinates by maintaining proper
composure and showcasing behaviours that follow the company's corporate culture.
The company motivates its employees through their promotion and compensation
strategy in which the company promotes their hardworking employees based on the company's
policy and take and takes advantage of the competitions between employees to motivate them to
work smart and efficiently.
The Coca-Cola Company maintains an open environment which allows the employees to
openly communicate with each other so as not to disrupt the flow of information inside the
company and the employees. Communication between departments can be done in a formal or
informal manners.

CONTROLLING

According to Stafford Beer, "Management is the profession of control". The management

evaluates the company's progress after the year, if they have achieved the goals which they had
set before.
A sales person had to report to the market developer area everyday about his activities.
His attendance is taken with the punch card system and the entry and exit time of the sales
person. He is given a route card with the details of the visit in an outlet. His time is controlled by
the details written there like how much time should he spend on each outlet, the number of sales
made in each outlet, the time taken during travelling from one outlet to another, and the entry
and exit time of the vehicle.
During the evaluation, which is done on a quarterly basis, the Performance Development
plan is kept as a basis to evaluate the performance of the employee. The measurement of
performance is based on the achievement of targets which were set at the start of the year.
Employees with good evaluations were usually promoted to higher levels of the organization.

B. ABOUT THE INDUSTRY

I. INTRODUCTION:

The Coca Cola Company is the world’s largest beverage company and the leading
producer and marketer of soft drinks with almost 500 brands varying from the authentic Coca
Cola products such as Sprite, Fanta, Powerade, Minute Maid and many many more. Today, the
Coca-Cola Company has been in business for 125 years, employs 139,600 people, and sells 1.6
billion beverages each day in more than 200 countries.However, Coca-Cola is not the sort of
company to live on its past glories; instead it looks to the future as a challenge and constantly
seeks new markets and ways of increasing its market share in areas where it currently has a
strong presence. It is the world's largest producer and distributor of syrups and concentrates for
soft drinks. Products developed by the Company are sold through bottlers, fountain wholesalers
and distributors around the globe.Brand Coca-Cola accounts for about 75 per cent of the
Company's unit sales volume of soft drinks. The remaining 25 per cent consists of well known
soft drinks.
The Coca Cola Company aims at increasing shareowner value over time. It accomplishes
this by working wth its business partners to deliver satsfaction and value to consumers through a
worldwide system of superior brands and services, thus increasing brand equity on a global basis.
They aim at managing their businesses well with people who are strongly committed to the
Company values and culture and providing an appropriately controlled environment to meet
business goals and objectives.

a. Describe general scenario in industry

Coca- Cola FESMA is the largest public botler of Coca-cola products in the world in
terms of sales volume, accounting one out of ten Coca Cola products sold globally. It serves
more than 100 refreshing brands throughout the world, including Philippines. Coca-cola FESMA
Philippines was established in January 2013 when FESMA acquired 51% of Coca-cola Bottlers
Philippines, Inc. from The Coca-cola Company. FESMA provides the bottles of Coca-Cola
products in the world. They operate as an integral supplier and offers portfolio of beverages that
include soft drinks, juices and bottled water. They now have 18 brands in their portfolio namely
Coke, Coke Light, Coke Zero, Royal, Sprite, Sarsi, Pop, Sparkle, Schweppes, Minute Maid, Hi-
C, Real Leaf, Samurai, Powerade, Eight O’ Clock, Wlkins, Pure, and Viva.
The carbonated soft drinks produced by Coca-Cola are subject to strict quality control
and inspection procedures ensuring they meet the highest international standards. Briefly, the
processes involve the following:
 Pure water is subjected to sophisticated filtering, softening and disinfecting to remove all
impurities.
 Sugar is added, along with the appropriate beverage concentrate to produce a ‘syrup’, the
basic component for the soft drink.
 The mixture is saturated with carbon dioxide at a low temperature and under high
pressure to give the drinks their renowned ‘fizziness’.
Automated machinery dispenses the mixture, in precisely calculated quantities, into
sterilised bottles while another cans, caps or seals them. The containers move to another machine
which applies labels and bar codes, after which they are automatically inspected to guarantee
they meet all requirements.
After final checking, bottles and cans are transported to machines which pack them in
cartons or boxes before being laces on wooden pallets.
The packed beverages are delivered by trucks to storage facilities to await delivery to customers
– and to be enjoyed by consumers.
 II. PLAYERS IN THE INDUSTRY

1. Pepsico, Inc.

PepsiCo Inc. (PEP) is a leading food and beverage company that manufactures and
distributes its products in more than 200 countries. Food products that PepsiCo manufactures
include chips, flavored snacks, cereals, rice, pasta, and dairy-based products. The company’s
beverage product portfolio includes carbonated soft drinks, juices, ready-to-drink tea and coffee,
sports drinks, and bottled water. Headquartered in Purchase, New York, the company employs
around 274,000 people worldwide.

2. Monster Beverage Corp.

Monster Corporation is a company that manufacturesenergy drinks, natural soft drinks,
and fruit drinks including Monster Energy, Hansen's Natural Soda, Hansen's Energy, Hansen's
Junior Juice, Hubert's Lemonade, Peace Tea, and Blue Sky.

3. Dr Pepper Snapple Group Inc.

Dr Pepper Snapple Group (NYSE: DPS) is a leading producer of flavored beverages in
North America and the Caribbean. Their success is fueled by more than 50 brands that are
synonymous with refreshment, fun and flavor. We manufacture, bottle and distribute Dr Pepper,
7UP, Mott's, Snapple, Canada Dry and other favorites as well as new innovations like Dr Pepper
TEN.

C. COMPANY AND INDUSTRY EVALUATION

I. DESCRIPTION OF INTERNAL AND EXTERNAL

a. Internal external environment

The internal environment of a corporation includes resources, capabilities and activities.

Resources at Coca-Cola are abundant, especially intangible resources such as brand recognition,
trade secrets (the recipe of Coca-Cola Classic is known by only a few people) and culture. The
inbound logistics aspect of Coca-Cola is very strong as they have over 300 distribution or
bottling centers across the globe serving to over 200 countries. Having many distribution
facilities will minimize shipping time to decrease shipping costs and therefore increase revenue.
A lot of research is put into the design and layout of the warehouse and other bottling
centers. Since having intelligently laid out these warehouses, Coca-Cola has increased efficiency.
Not only having inbound warehouses being effectively designed, Coca-Cola incorporates
this layout technology in their outbound factories to increase their overall workflow design.
Coca-Cola is one of the most recognizable brands in the world and continues to market their
product extremely well. Coke's trademark value is estimated at a whopping $25 billion. The
brand basically sells itself, but Coke is not just sitting back and being lazy. The Coca-Cola
company actively researches the needs of its customer segments and targets to provide drinks
and snacks that people will want. As a luxury product, Coke understands that luxury items are
the first things to go when times get tough. For this reason they provide excellent service to their
suppliers and customers. Without excellent service, a beverage company will fall by the wayside
as there are many other products out there to substitute any type of drink.

b. External:

1. Social Factors

Social Factors have been carefully considered in the company’s marketing plan. The
Coca Cola Company has successfully developed products to please the 21st century’s health
conscious consumer with brands like Coca-cola Zero, sports drinks, and bottled water.

2. Economic Factors

The weakened economy could have a negative impact on any of the bottling companies,
which would threaten the stability of the Coca-Cola Company due to the dependent relationship.
The Coca-Cola must be profitable in order to sustain their investment in communities around the
world. Furthermore, small communities depend on large businesses like the Coca-Cola Company
to strengthen their own economy and help create social and environmental programs.

3. Legal Factors

Legal fcators that could pose an evironmental threat to the Coca-Cola Company include
new legislation or regulation of food and beverage products.Activists are trying to push more
government involvement in product advertising and labeling.

4. Technological Factors

Large businesses like Cca-Cola Company must invest in technological research to find
ways to become more efficient, and utimately better competitors. The Coca-Cola Company
should address external technological threats by invetsing directly in applied research to improve
recording and monitoring of the sales, production and delivery process between the Coca-Cola
Company and the bottling companies.

5. Competitive Factors

Consumer tastes and needs are ever changing. With the new focus on health and nutrition
and concerns with obesity, many consumers are changing their behaviours and products choices.
Tea products, bottled water and energy drinks have become favored as opposed to the typical
soft drink. This is an external threat to the Coca-Cola Company, as these changes in preferences
have increased the number of competitors in the industry. The Coca-Cola Company is not only in
competition with soft drink companies but with other unassuming companies like Unilever, Kraft
Foods, Nestle, etc. They must continue aggressive efforts in responsible marketing, community,
invetsment and product development to hold the no.1 place in sales of juice, ready-to-drink
coffees, and teas.
 II. SWOT ANALYSIS:

Strengths

 WORLD’S LEADING BRAND

 LARGE SCALE OF OPERATIONS
 ROBUST REVENUE IN GROWTH
 DISTRIBUTION NETWORK
 STRONG BRAND IMAGE
 LOW COST OF OPERATION

Weaknesses

 NEGATIVE PUBLICITY
 SLUGGISH PERFORMANCE FROM OTHER COUNTRIES
 DECLINE IN CASH FROM OPERATING ACTIVITIES
 HEALTH CARE ISSUES

Opportunities

 ACQUISITIONS
 GROWTH BOTTLED WATER MARKET
 LARGE DOMESTIC MARKETS
 EXPORT POTENTIAL
 HIGH INCOME AMONG PEOPLE

Threats

 INTENSE COMPETITION
 DEPENDENCE ON BOTTLING PARTNERS
 SLUGGISH GROWTH OF CARBONATED BEVERAGES
 IMPORTS
 TAX AND REGULATORY SECTOR
 SLOWDOWN IN RURAL DEMAND

III. MICHAEL PORTER’S INDUSTRY ANALYSIS

Threat of New Entrants/Potential Competitors: Medium Pressure

Entry barriers are relatively low for the beverage industry: there is no consumer
switching cost and zero capital requirement. There is an increasing amount of new brands
appearing in the market with similar prices than Coke products
Coca-Cola is seen not only as a beverage but also as a brand. It has held a very significant market
share for a long time and loyal customers are not very likely to try a new brand.
Threat of Substitute Products: Medium to High pressure

There are many kinds of energy drink s/soda/juice products in the market. Coca-cola
doesn’t really have an entirely unique flavor. In a blind taste test, people can’t tell the difference
between Coca-Cola and Pepsi.

The Bargaining Power of Buyers: Low pressure

The individual buyer no pressure on Coca-Cola. Large retailers, like Wal-Mart, have
bargaining power because of the large order quantity, but the bargaining power is lessened
because of the end consumer brand loyalty.

The Bargaining Power of Suppliers: Low pressure

The main ingredients for soft drink include carbonated water, phosphoric acid, sweetener,
and caffeine. The suppliers are not concentrated or differentiated.
Coca-Cola is likely a large, or the largest customer of any of these suppliers.

Rivalry among Existing Firms: High Pressure

Currently, the main competitor is Pepsi which also has a wide range of beverage products
under its brand. Both Coca-Cola and Pepsi are the predominant carbonated beverages and
committed heavily to sponsoring outdoor events and activities.
There are other soda brands in the market that become popular, like Dr. Pepper, because of their
unique flavors. These other brands have failed to reach the success that Pepsi or Coke have
enjoyed.

D. CONCLUSION
Coca Cola is best known for its beverage products not just in the Philippines but
worldwide for it has more than 500 products distributed in more than 200 countries; surely that
The Coca Cola Company products have been part of everyone’s lives. The Coca-Cola Company
owes its success to the people who do their best to achieve the task at hand. Thus, the Coca-Cola
Company takes cares of its employees in return by offering them benefits that guarantees their
good working environment and security. Because the Coca-Cola Company has been able to the
set the entry barrier in the beverage business very high, new companies are discourage to
compete with Coca-Cola and it has agreements with many of its supplier (mostly bottling
company) to exclusively provide by their services to Coca-Cola.
One of the many countries that The Coca Cola Company distributes its products is
Philippines. The Coca-Cola success isn't something that has been achieved over night. Many
years has passed since John Pemberton created the secret formula for Coca-Cola in 1886. Who
would have thought that after over a hundred years, his creation would have this much impact in
the world and turn Coca-Cola into a worldwide recognized company.
E. BIBLIOGRAPHY
The Coca-Cola Company: (2014). Mission, Vision & Values. Retrieved on 06 November, 2015
from: http://www.coca-colacompany.com/our-company/mission-vision-values.

The Coca-Cola Company: (Vision 2020).Road for winning together: TCCC & aour bottling
patners. Retrieved on 06 November, 2015, from http://assets.coca-
colacompany.com/22/b7/ba47681f420fbe7528bc43e3a118/2020_vision.pdf

The Coca-Cola Company: (April, 2009). Code of Conduct: Acting with Integrity Around the
Globe. Retrieved on 06 November, 2015 from http://assets.coca-
colacompany.com/45/59/f85d53a84ec597f74c754003450c/COBC_English.pdf

The Coca-Cola Company: (2014). Chairman of the Board and Chief Executive Officer: Muhtar
Kent. Retrieved on 06 November, 2015 from: http://www.coca-colacompany.com/our-
company/board-of-directors-muhtar-kent

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/

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

Shetty, N. (May 4th, 2011). Leadership Style at Coca-Cola Company. Retrieved on 06

November, 2015 from http://www.managementparadise.com/forums/foundation-human-skills-f-
h-s/221096-leadership-style-coca-cola-company.html#post453091

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

Wikipedia. (2014). Organizational culture. Retrieved on 17 July, 2014 from

http://en.wikipedia.org/wiki/Organizational_culture

The Coca-Cola Company: (2014). The Coca-Cola System. Retrieved 17th July, 2014 from
http://www.coca-colacompany.com/our-company/the-coca-cola-system