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Coca-Cola has been sold since 1886, when Dr. John Pemberton first created it.

In time, it has become the largest beverage compan in the world, with over a million of sales. Coca-Cola was first sold to the p!blic in "tlanta at Jacob#s Pharmac . In 1888, "sa $riggs Candler bo!ght the compan and sales increased in the %.&. over '((() d!e to advertisings. In 1*+1, ,obert -oodr!ff began mar.eting Coca Cola o!tside the %.&. In 1*61, the Coca Cola Compan dramaticall e/panded its hori0ons from fo!ntain drin.s to 1in!te 1aid 2!ices event!all leading to '(( brands. 3ow, h!ndreds of millions of Coca Cola prod!cts are sold each da with profits in the billions it#s one of the most profitable companies ever. Straggling period: "s late as the 1**(s, Coca-Co, a Co. was one of the most respected in "merica, a master of brand-b!ilding and management in the dawning global era. 3ow the co.e machine is badl o!t of order. 4here are some creeping problems, however. 1ost distressing of these was the fact that Co.e was losing mar.et share to its biggest competitor, PepsiCo. Co.e5s lead had dropped from a better than two to one margin to a mere '.* percent. 6!t despite all these problems it is still the most val!able brand in brand histor . Problems faced by Coca-Cola: "fter st!d ing the case it seems to !s that the main problem of this age old compan is that the are no read to change. 4he too. it for granted that their s!ccess and great margin of profit can onl be come from soda centric b!siness. "lso the battle with its own bottlers7 the aged overbearing board7 the failed C89s and failed attempts to recr!it a s!ccessor7 the death of new prod!cts and last b!t not the least the !ninspiring advertisements are its leading problem. 1. Organizational culture: 9f all the problems that can beset a corporation a d sf!nctional c!lt!re has to be one of the to!ghest to fi/. 6eca!se the belief and attit!de that ma.e!p a c!lt!re filters into ever thing else: decision ma.ing on basic strateg , management st le, st!ffing, performance e/pectation, prod!ct development. 4he la ers of b!rea!crac at Co.e

prevent new innovations and drastic decisions to wor.. 4he c!lt!re of Coca-cola is not eno!gh mar.et driven. 4he matter. 2. Resistance to diversification: Co.e#s c!lt!ral resistance to diversification has become an enormo!s liabilit . 4he Cocacola has st!c. in a mind-set formed d!ring its he da in the 1*8(s and *(s when ,oberto C. $oi0!eta ;former < most s!ccessf!l C89 of Co.e#s histor = made co.e into a growth stor and captive the world. 4heir onl foc!s is in the soda centric b!siness. 4he some what fail to !nderstand despite of their great sale on colas increasingl cons!mers are reaching an thing b!t soda. 4he mass mar.et that co.e so adept at e/ploiting has splintered. Cons!mers tastes have shifted to an arra of sports drin., herbal teas, vitamin-fortified waters, energ drin.s < other noncarbonated prod!cts all categories coc. has historicall wea. some of which are growing as m!ch as nine times faster then cola. &till the are not p!tting their best to capt!re the noncarbonated drin.s mar.et in other word the are no read to diversif . 6!t the are forgetting one thing ma be toda the are getting high vol!me of sale < profit from cola#s b!t nobod g!aranties that the will do so in the f!t!re. . !eddling board: Co.e#s star-st!dded gro!p of directors has b!ilt a rep!tation of meddling. 4his is gro!ps that believe in getting involved in compan affaires. 9ne of the e/ample of their meddling is when co.e#s management tried to p!rchase the >!a.er 9ats Co.;an "merican food firm=b!t it#s the veto of the board that prevent the management to do so at the end Pepsi bo!ght that compan in 3ovember,+(((. 6oard members made clear their opposition to prod!ct diversification as well as their belief that mergers aren#t what#s needed. are not read to change. -here their archrival Pepsi capt!ring the tr!e trend of the mar.et the seemed to two steps behind then them in this

". !oribund mar#eting: 9ne of the problem coca-cola facing now is that their conservative mar.eting and advertisement that doesn#t resonate with o!ng ad!lts that ma.e !p its most important a!dience. $. %ac# of innovation: 9ver the ears Co.e had tal.ed the tal. abo!t innovation b!t little had reall happened. 4his soda giant seemed to be fro0en in their glorio!s past. -hat the are doing is 2!st t!ning !p the soda operation and capitali0ing on e/isting brand. 4ho!gh the ahead then Coca-Cola in case of innovation. &. 'riction (it) bottlers: 9ver the past decade Co.e has often made its profit at the e/pense of bottlers, p!shing aggressive price hi.e on the concentrated it sells them. 6!t .e bottlers are now fighting bac. with sharp increases in the price of the co.e at retail. 4he have long resisted the compan #s effort to la!nch niche brands ref!sing to carr new prod!ct that the deemed low vol!me. *. +nternational (orries: Co.e desperatel needs more international growth to e?!ali0e its flagging %.&. b!siness. 6!t the are facing problems beca!se of c!lt!ral differences and other trade barriers li.e in India the have to pa '() ta/ on their carbonate drin.s. "nd when coca-cola co. helped Israel at the Palestine war, some 1!slim co!ntries protested against coca cola co. b bo cotting their prod!ct. are e/ploring other noncarb beverages b!t 2!st not eno!gh compare to PepsiCo the are wa

4he problems that mentioned above can be solved b strategic management of the overall compan . "s a matter of fact Coca-cola has ta.en some affective actions to elevate its declining b!siness. 4he f!rther meas!res can be ta.e b this compan are given bellow: C)ange in organizational culture:

Aor effective implementation of new plans Coca-cola need a mar.et driven organi0ational c!lt!re, more acco!ntabilit of the decision ma.ers < less power of board of directors over the management#s decision. Co.e has a s stem of diff!se responsibilit in their organi0ational c!lt!re. 4his has to be centrali0ed. 4he have a c!lt!re of too m!ch planning and planning some more. ,evelop more mar#et sensing capabilities - be mar#et driven:

"nticipate the c!stomer needs and wants is m!ch more important. Co.e has alwa s tho!ght in terms of traditional drin. categories li.e cola or 2!ice. 6!t now cons!mers are more health conscio!s and prefer healthier drin.s. &o Coca-cola has to concentrate on this new demand of mar.et. 4he have to thin. o!t side of soda centric b!siness and diversif its concentration to others fields as wall li.e PepsiCo is doing. "nd to become mar.et driven the need involvement < s!pport of entire wor. force, innovation, s!perior organi0ational s.ill < competitive advantage. .)in#ing outside t)e competitive bo/:

Bi.e an other s!ccessf!l companies Co.e has a tendenc to thin. in terms of stable Ccompetitive bo/D aro!nd their b!siness-defined b technolog , geograph , competitors, and e/isting c!stomer base. -hat the have to do is thin. o!t side the bo/ li.e new technolog , new mar.et new t pes of competition b!siness etc. Eave to find opport!nities where ever one things impossible to find.

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Retool tired brands:

4ho!gh the cost of la!nching a new brand can be e/pensive co.e sho!ld introd!ce new brands while repositioning the old ones Recover relations)ip (it) bottlers - 0uic# feedbac# system:

4he independent bottlers have long resisted the compan #s effort to la!nch niche brands ref!sing to carr new prod!ct that the deemed low vol!me. &o what co.e can do is to ta.e bottlers into the decision-ma.ing process to get their inp!t that will help the compan to face the barrier that the !s!all face from the bottlers. 4he can also !se ?!ic. feedbac. s stem from retailers to determine which new brands are reasoning with c!stomer.

.endency to ta#e ris# about diversification - innovation:

Bi.e we said before, co.e has a histor of planning < then planning some more. 4his res!lted death of some new innovative prod!cts before the were introd!ced to the mar.et. 4he innovation. %essen t)e veto po(er t)e 1oard of directors: have to b!ild the tendenc to ta.e ris. abo!t diversification < and

4he board has to have the power to challenge management#s plan b!t sho!ld no challenge their a!thorit . "nd the sho!ld incl!de more o!ng board members who can temper with o!ng generation < changing trends.

4he best wa to save Coca-Cola is to combine all these alternatives together, be mar.et driven , read tr!th. to accept change < in the mean time a drastic change in their organi0ational c!lt!re. 6eca!se e/cept change nothing is constant the have to grab this