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The History of Coca-Cola Company

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On May 8, 1886, The Coca-Cola product was born in Atlanta, Georgia by Dr. John Stith Pemberton, a local pharmacist. He produced the carbonated water which was teamed with the new syrup to produce the Coca-Cola drink.

•In its first year, Coca-Cola products placed on sales for five cent a glass as a soda fountain drink with the sales about 9 glasses a day.

•In 1889, The Coca-Cola Company first formed by a great business man, Asa Candler with $100,000 initial capital. He became the company first president. Cadler is the first who had introduced the U.S. to Coca-Cola.and the first who bring real vision to the business and the brand. (http://www.thecoca-colacompany.com/heritage/chronicle_the_candler_era.html)•In 1905, Coca-Cola Company faced the imitation problems. To combat copycats taking advantage of its success, Coca-Cola first develops a unique contour bottle. ( http://heritage.coca-cola.com/)•In 1923, Ernest Woodruff became the company president. He is the person who had impact on Coca-Cola Company than anyone else. He spent nearly 60 years introducing the Coca-Cola to the world. Under his leadership, Coca-Cola Company became global business company. Coca-Cola not just a huge success, but a big part of people’s life. (http://heritage.coca-cola.com/)•More than 115 years later from a small beginning, now Coca-Cola Company is the largest manufacturer, distributor, and marketer of nonalcoholic beverage concentrates and syrups in the world. (http://en.allexperts.com/e/t/th/the_coca-cola_company.htm)I.

The Organization, its Business, its Mission, its Goals, and its Strategies1. OrganizationThe Coca-Cola Company, with headquarter in Atlanta, Georgia, USA, is the world’s largest nonalcoholic beverage company with the most extensive distribution system in the world. They offer a portfolio of world class quality sparkling and still beverages, starting with Coca-Cola® and extending through over 400 brands and that nearly 2,400 beverage products. Four of the world’s top-five soft-drink brands belong to the Coca-Cola Company which is Coca-Cola, Diet Coke®, Sprite® and Fanta®. In 2005, they ranked No. 1 worldwide in sales of sparkling soft drinks and No. 1 in sales of juice and juice drinks. They are the world’s No. 2 producer of sports drinks, and the No. 3 producer of bottled water. The company family of beverages accounts for approximately 1.3 billion servings worldwide of the 50 billion beverage servings consumed every day. Nowadays, Coca-Cola Company has more than 50thousand employees around the world.

2. Business•The company’s main business is focused on creating and marketing Coca-Cola brands and trademarks while the bottling partners are focused on produce and package the finished beverage products and then sell and distribute them to the retails and wholesales customers. (http://www.thecoca-colacompany.com/citizenship/the_coca-cola_system.html)•There are more than 300 bottling partners, the Coca-Cola Company operate the most extensive beverage distribution system in the world which is known as the Coca-Cola system, this network owns, leases or operates more than 800 plants around the world.

Their bottling partners play a huge part in their business, a critical link. They are local companies so they are rooted in their communities, thinking and acting locally. (http://www.thecoca-colacompany.com/ourcompany/historybottling.html)3. Mission”Our mission is to create a growth strategy that allows us to bring good to the world–by refreshing people everyday and inspiring them with optimism through our brands and our actions.” (http://www.thecoca-colacompany.com/ourcompany/index.html)Everything we do is inspired by our enduring mission:•To Refresh the World…in body, mind, and spirit.

•To Inspire Moments of Optimism…through our brands and our actions.

•To Create Value and Make a Difference…everywhere we engage.

(http://www.thecoca-colacompany.com/ourcompany/mission_vision_values.html)4. GoalsAccording to the company annual report of year 2005, it said that “Our goal is to used company’s assets-our brands, financial strength, and unrivaled distribution system, and the strong commitment of management and employees-to become more competitive and to accelerate growth in a manner that creates value of our shareowners”(http://www.thecoca-colacompany.com/investors/annualandotherreports/2005/pdf/10-K/ko_10-K_Item_1.pdf)5. StrategiesCoca-Cola Company has different strategies in each segment i.e. finance, workplace, environment and business. The following are example strategies that used by Coca-Cola Company.

•Franchised Production Model: The production and distribution of Coca-Cola follows a franchising model strategy. The Coca-Cola Company only produces a syrup concentrate, which it sells to various bottlers throughout the world who hold Coca-Cola franchises for one or more geographical areas. The bottlers produce the final drink by mixing the syrup with filtered water and sugar (or artificial sweeteners) and fill it into cans and bottles, which the bottlers then sell and distribute to retail stores, vending machines, restaurants and food service distributors. The bottlers are normally also responsible for all advertisement and other sales initiatives within their areas. (http://en.allexperts.com/e/c/co/coca-cola.htm)•Diversity Strategy: The Coca-Cola Company operates in more than 200 countries, and on global basis, they have the most inclusive workforce in the world. “Diversity is the best strategy to maximize this asset” The CEO of Coca-Cola Company, Neville Isdell, admitted the important of the diversity

. One example of the activities that company create to encourage diversity is that in the year 2000, the company created the Diversity Leadership Academy (DLA) which is offering diversity management skills for leaders in the organization. (http://www.thecoca-colacompany.com/presscenter/nr_10012001_diversity_leadership_academy.html)•Strategies Framework-The Four Cs: This is the strategies that Coca-Cola uses with their employees. They have established a strategic framework with four powerful drivers which are Commitment – Demonstrate the importance of diversity as a marketplace and workplace imperative, and engage and inspire our workforce around diversity, Communication – Build employee awareness, understanding and support for the business case for diversity, Culture – Drive a diverse, inclusive and fair workplace, and establish TCCC as a destination for great global talent, and Consumption – Drive diverse consumers to higher consumption rates against our core brands.

II. The Company’s StructureAccording to the company annual report year 2005, the structure of Coca-Cola Company is divided into two segment which are Operating Segments and Corporate Segments:Operating SegmentsOperating Segments are organized into 6 geographic groups. In each group divided into subunit division. Operating Segments organized as division structure to gain the coordination advantages such as response to the local market and customer’s needs (George and Jones, 2005, p.513). The following are the geographic group segments:1.Africa Groups•There are 5 subunit divisions: Africa Leadership and Center of Excellent, North and West Africa Division, Nigeria and Equatorial Division, East and Central Africa Division, and South Africa Division.

•6% of company’s 2005 worldwide unit case volume.

2.European Union Groups•There are 6 subunit divisions: European Union Leadership, Central Europe Division, German and Nordic Division, Iberia Division, Mediterranean Division, and Northwest Europe Division.

•16% of company’s 2005 worldwide unit case volume3.North Asia, Eurasia & Middle East Groups•There are 5 subunit divisions: North Asia, Eurasia & Middle East Leadership, China Division, Japan Division, Eurasia and Middle East Division, and Russia, Ukraine and Belarus Division.

•16% of company’s 2005 worldwide unit case volume4.Latin America Groups•There are 5 subunit divisions: Latin America Leadership, Brazil Division, Latin Center Division, Mexico Division, and South Latin Division•25% of company’s 2005 worldwide unit case volume5.East, South Asia and Pacific Rim Groups•There are 5 subunit divisions: East, South Asia and Pacific Rim Leadership, India Division, Philippines Division, South Pacific & Korea Division, and Southeast & West Asia Division• 9% of company’s 2005 worldwide unit case volume6.North America Groups•There are 10 subunit divisions: North America Leadership, Canada, Finance, Foodservice and Hospitality, Human Resources, Innovation, Marketing, Retail, Strategies and Planning, and Supply Chain.

•28% of company’s 2005 worldwide unit case volumeCorporate Segments

Their Corporate segments consist of nine functions: Corporate External Affairs, Finance, Human and Resources, Marketing, Research and Development, Quality, Customer Management, Bottling Investment, Worldwide Public Affairs and Communications.

The management team in the Corporate Segment is the Executive Committee. They are responsible for setting policy and establishing strategic direction for the Company.

III. The Company Culture and Ethics1. The Company Culture•The Coca-Cola Company is built around two core assets, its brand and its people. These two assets give us the opportunity to keep our central promise: to refresh the world in mind, body, and spirit, and inspire moments of optimism; as well as creating value and making a difference. By building an inclusive workplace environment, The Coca-Cola Company seeks to leverage its worldwide team which is rich in diverse people, talent and ideas. (www.coca-cola.com)•At The Coca-Cola Company, employees strive for an inclusive culture that is defined by their seven core values: leadership, passion, integrity, collaboration, innovation, quality, and accountability. Each day employees work to bring these values to life through our diversity workplace strategy. This strategy includes programs to attract, retain, and develop diverse talent; provide support systems for groups of diverse background; and educate at all levels so that we master the skills to achieve sustainable growth.

Through this strategy they can achieve their goal of being the destination of great global talent, a culture committed to recruiting and retaining employees of diverse backgrounds and ultimately becoming the most respected company in the world. (www.coca-cola.com)•Diversity – of race, gender, sexual orientation, ideas, ways of living, cultures, and business practices provide the company with creativity and innovation essential to economic. (www.coca-cola.com)2. EthicsBecause of the diversify culture in the organization, the company has three serious ethical issues: (www.coca-cola.com)a)Commitment to consumers: the company is committed to offering consumers a variety of beverage choice in the different package sizes for their all occasions and lifestyles.

b)Community support: the company gives back to each other community such as providing financial contributions, awarding scholarships or supporting their employees’ volunteer efforts.

c)Supplier Diversity: The company’s mission is to provide equal access to procurement opportunities and to build relationships with purchasing goods and services from the suppliers:•Engage with minority- and women-owned enterprises (MWBEs) which help the company to reach their procurement process• Give chance for the major suppliers become the partners in suppler diversity.

IV. The Organization’s Environment1. Internal Environment•Board of Directors: There are elevens members in the boards of directors. The board is elected by the shareowners to oversee their interest in the long-term health and the overall success of the business and its financial strength. (http://www.thecoca-colacompany.com/investors/governance/index.html)•Employees: In 2005, Coca-Cola Company employed approximately 55,000 people, 44,000 of whom were based outside the United States. Together with their bottling partners, the Coca-Cola system employs hundreds of people around the world. •Bottling Partners: They are a critical link.

Their bottling partner rooted in the local communities around the world. They produce, packaging, sell, and market the Coca-cola brands to customers. (http://www.thecoca-colacompany.com/ourcompany/aboutbottling.html)2. External Environment•Suppliers: Their suppliers include those business partners who supply their system with materials, including ingredients, packaging and machinery as well as goods and services. At a minimum, all authorized and direct suppliers must comply with all applicable laws and regulations of Coca-Cola Company. For example, child labor, forced labor, and environmental practices. •Consumer: Coca-Cola has customer from more than 200 countries around the world include large, international chains of retailers and restaurants, as well as small independent business. Some of their customers are major corporations as well as Coca-Cola Company; others are the corner market or the local pushcart vendor. Coca-Cola Company has customer from more than 200 countries from around the world.

•Competitors: Its primary competitor is PepsiCo. PepsiCo manufactures not only the beverage but also snacks and other food. PepsiCo have three times as many employees, larger revenue, but smaller net profit than Coca-Cola. PepsiCo has its own Pepsi Bottling Group. ( http://en.allexperts.com/e/p/pe/pepsico.htm)•Other External Stakeholders/ Strategic Partners: Beside their business partners, they also engage in dialogue with external stakeholders ranging from the local communities where they operate to government agencies, nongovernmental organizations (NGOs) such as Greenpeace and other specialist group. (http://www.thecoca-colacompany.com/citizenship/ps_external_stakeholders.html)V. The Company’s Leadership•Edward Neville Isdell, a native of Ireland, has been Chairman and Chief Executive Officer of the Coca-Cola Company since June 1, 2004.

His career started with the company in 1966. Isdell is the 12th Chairman of the Company succeeding Douglas Daft. Isdell has a B.Sc. in Social Science from the University of Cape Town and graduated from the Harvard Business program for Management Development. (Atlanta Business Chronicle – May 5, 2004)Task-relevant knowledge trait approach: Donald R. Keough, chairman of the Management Development Committee of the board, said the board met with a number of outstanding and talented leaders. “As a result of this process, we concluded that our ideal candidate was an executive who combined a deep prior knowledge of our brand, our values, and our system,” Keough said. “Within this field of highly accomplished executives, Neville Isdell possesses the unique talents and experience to lead this great company.” (Atlanta Business Chronicle – May 5, 2004)

Intelligence: Jimmy Williams, member of the Management Development Committee of the board, said Isdell has led the company’s business operations on five continents and in some of its largest and most important markets. “He has developed new markets and injected innovation and competitiveness into existing operations,” Williams said. “Additionally, he has created major bottling companies and built outstanding leadership teams while staying true to the enduring values of our brand and company.” (Atlanta Business Chronicle – May 5, 2004)

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