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Mid-Term Project.


Mid-Term Project

Kristina Peterson
MGT 305 Operations Management
Southern States University-Newport Beach
Dr. Peggy Bilbruck
21 February, 2015

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In today's world, anyone, whether American president or a homeless person, a child or a
doctor of science, on the question of what is Coca-Cola, easily would give a precise answer. It's
hard to find someone who would not be familiar with this logo: round white letters on a red
background, folding into words, truly sacred for most Americans - Coca-Cola. This is one of the
most successful and recognized brands. Coca-Cola still place at the third position in the list of
top brands with a value of US $ 79.2 billion in 2013. Coca Cola is a global brand and 98%
people in the world knew Coca Cola. Coke as a product makes people awake, bring amazing
pleasure. It still keep as a symbol of trust, the inherent uniqueness. Their slogan: "All our
customers in the world are people who deserve to enjoy the best quality beverage". Coca Cola
Company is the world's leading soft drink maker, operates in more than 200 countries around the
world and owns or licenses more than 500 brands of nonalcoholic beverages.
This success story began, even by American standards incredibly successful business, as
often happens, with nothing. From homemade recipes, compiled an amateur chemist and partowner of a small pharmaceutical company John Pemberton in Atlanta (Georgia, USA), May 8,
1886. After he cooked syrup he called his friend, part-time bookkeeper Frank Robinson (Frank
M. Robinson), and shared with him the opening. The name for the new drink invented
Pemberton bookkeeper Frank Robinson, who also owning calligraphy, and wrote the words
Coca-Cola beautiful curly letters, is still the logo of the drink.
Milestones: 1886 - invention of the beverage, 1888 - selling things Irish immigrants Asa
Candler, 1893 - registration of the trade mark, 1894 - bottling, 1920 - the first factory in Europe,
1922 - provide a package of 6 bottles of 1928 - "Coca Cola "at the Olympic Games in
Amsterdam, 1960 - the appearance of tin, 1977 - the emergence of two-liter plastic bottles.

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( ;

Overview and Environment

Coca-Cola Company is a global business that operates on the national markets with the
creation of companies on the local level. They have created a global company, which includes
national companies and more than 250 bottling partners worldwide.
Coca-Cola is not a single entity with a legal or management perspective. System of Coca-Cola
business is a unique, massive enterprise, which gives us a huge competitive advantage. This is
part of what is called "value chain" - a path that passes the product from the producer to the
consumer, which includes partners, the company itself, bottler, delivery, buyers and consumers.
PARTNERS - all those people, groups and businesses that contribute to promote the
product on the chain and build value. All Items starting with raw materials, this is true for CocaCola. Suppliers sell us everything from ingredients to packaging component and more.
THE COMPANY. After receiving the raw material begins to business: manufactures
beverage concentrates, which give the product unique characteristics and flavor, and then
produces a
Marketing of these products worldwide. In other words it creates demand and profitably satisfy
BOTTLERS converted concentrates into finished drinks. Since the company owns a
majority part of bottlers, then it is right to call them partners. Coca
Cola bottlers work to provide a low cost of production constantly high-quality goods. So that
Cola in Australia taste the same as in Canada. Coca-Cola is working with the bottler to market
the company's products, creating sales strategies, communication with consumers.

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Bottling Investments Group is a division of The Coca-Cola Company dedicated to investing in
Coca-Cola bottling operations around the world. BIG provides leadership to drive growth in
critical markets, provides venture capital to move quickly, and often amends structural or
ownership challenges. BIG is focused on long-term sustainable growth and manages its facilities
as if they were to be owned by The Coca-Cola Company forever. BIG is committed to win in
every market and strives to become a model of collaboration with other bottlers. BIG is currently
in 19 countries and works to maintain a healthy balance of franchise and Company-owned

bottlers in the system. (

DELIVERY. 180 thousand vehicles, 6.6 million refrigerators used to distribute the
products of Coca-Cola - all part of the bottler. Distribution system meets needs of partners and
customers regardless of where the products are sold.
CUSTOMERS - a significant part of the circuit, irrespective of whether it is world's
largest network of fast-food restaurants, or is it a shop in Thailand - they all sell their products

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directly to the consumer. A Coca-Cola provides its customers consistently profitable drinks that
help grow their business. Buyers last partner. But there is another important element.
CONSUMERS - every time a consumer buys products in the life of an important event
occurs. Bottle after bottle, gallon for gallon of products pass the entire system.
All bottling partners work closely with customers - grocery stores, restaurants, street vendors,
convenience stores, movie theaters and amusement parks, among many others - to execute
localized strategies developed in partnership with our Company. Customers then sell our
products to consumers at a rate of more than 1.9 billion servings a day.(

The ownership structure


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Unravel the secret recipe of the original drink Coca-Cola has not yet managed to anyone
yet. Yes, everyone knows that in its composition have vanilla, sugar, citric and phosphoric acid,
cinnamon, caffeine, lavender and nutmeg. But if we try to mix all these ingredients in water,
absolutely nothing like the popular drink in all countries do not get. But rivals Coca-Cola chose
another way: they did not spy or trying to group employees - a competitor, but simply to create a
similar drink that was able to compete for consumers. This company is Pepsi Cola.
In 1975, the company's competitors, who produce Coca-Cola made a free tasting of Pepsi Cola.
As a result, people have become more absorb new drink, as saying that he likes them more than
the old, familiar. Naturally, the drink from John Pamberton had to hand over the position, and
company executives were forced to go to lower prices and higher costs for advertising
campaigns. It is actually an appropriate response to the actions of competitors.
But competitors should not forget, advertising is not a bad bargain, and hit the nail on the
head with his slogan: "The younger generation chooses Pepsi".
I believe that Coca Cola is the best example of a company with sustainable competitive
advantages, which are:

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- The secret recipe
- Innovation, which are characterized by the development of new products and reinvent old
- The most developed system consists in the retail availability of Coca-Cola in every corner of
the world where other products may not be available
- A highly developed production technology.
Another competitor, I think, is Nestl, but it's not such a tough competitor, Pepsi, because
the core businesses are baby food products containing milk and chocolate. But more recently, the
iced tea appeared, so this product is a competitor to Cola product. This is due to the growing
number of people that promote a healthy lifestyle.
I recently learned that there is more competition and apparently quite serious - a Royal Crown
Cola International products and PRAN. They produce carbonated soft drinks production cola,
lemon and lime. And I think Cola should pay attention to them, because the region in which
these products are distributed fairly large and the population density is large. I think it is a
challenge to competitive advantages Cola, namely availability anywhere in the world.
Consumers enjoy RC in more than 60 countries worldwide. Royal Crown Cola International
products are sold through a global network of more than 100 franchised bottling plants and
distributors. It has become one of the big competitors of Coca-Cola in Bangladesh. In rural areas
RC cola is a very popular (
Perhaps the answer to competitors for fans of a healthy lifestyle and become new
products under the brand Coca-Cola Company. I think that the most famous of these is Diet
Coke, which became the main representative of diet sodas. In cola also appeared other products,
eg, Cherry Coke, Coke Zero and Vanilla Coke. And it seems to me is a response to competitors.
The Coca-Cola Company owns and markets other soft drinks that do not carry the Coca-Cola
branding, such as Sprite, Fanta, and others. Coca Cola Company deals mainly in soft drink

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industry and these are some of its major brand. It also deals in soda and mineral water through
the brand name Kinley. (
Process Description
Product life cycle consists of the following steps:
The Introduction Stage

Created during the spring of 1886 by Dr. John S. Pemberton.

Firstly was introduced as a soda fountain drink.
Placed on sale for 5 cents a glass.
Pemberton's partner and bookkeeper, Frank M. Robinson suggested 'c's would look good
in advertising, which led to the name "Coca-Cola"

The Growth Stage

In 1888, Pemberton sold Coca-Cola to Asa Chandler

Chandler formed the Coca-Cola Company in 1892 and by 1895 Coca-Cola was being

drunk in every state across America

As demand grew, production increased and Coca-Cola was made available in bottles
rather than just through soda fountains

The Maturity Stage

Coca-Cola is currently in this stage.

To extend it's mature stage Coca-Cola has developed the following marketing strategies:
product improvement, new models were developed, it entered new market segments, and
enlarged its distribution channels (

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Quality Strategy Coca-Cola products built on the principles of product safety for the
consumer. This is achieved by consistent compliance with existing standards and quality
standards. They manufacture products following strict policies, requirements and specifications.

Our products are tested in modern laboratories using state-of-the-art methods and appropriate
technologies against stringent requirements. We measure key product and package quality
attributes by focusing on ingredients and materials, as well as samples collected from the trade.
We monitor compliance with our standards in manufacturing and distribution of The Coca-Cola
Company products to ensure those products meet Company requirements and consumer
expectations in the marketplace. Ensuring the safety and quality of our products has always been
at the core of our business and is directly linked to the success of The Coca-Cola Company.
( -safety-and-quality.html)
Coca-Cola Company takes very seriously the claims of customers on product quality. For
example in 2012, The National Institute of Consumption in Paris reported that they had
discovered traces of alcohol in Coca-Cola and some consumers may be concerned about it.
Coca-Cola made a presentation that they do not add alcohol as an ingredient. Another problem,
about which company is concerned, is the use of contact caramel coloring high-methylimidazole4, also known as 4-MEI. Coca-Cola constantly fighting for the decrease in the content of this
We use only those ingredients that have been evaluated for safety based on sound
science and that have been approved for use by local health and safety regulators. Wherever we
operate, we abide by the laws and customs of the local communities, including regulations
pertaining to health, safety and product labeling.

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Since the product is Coca-Cola sold worldwide. Coca-Cola Company must adhere to the
standards of the country in which your product sells. And that is what has made The Coca-Cola
Company with Global Food Safety Initiative (GFSI) certification and ISO standards. Compliance
with these standards and certifications ensure consistency of quality Coca-Cola Company with
quality systems around the world. But the quality system is not something frozen, it is constantly
has being improved. Quality philosophy is based on the security of the entire supply chain from
beginning to end, that is, from the quality and safety of food and ending with the observance of
the quality and safety of the end-seller.
So, Coca-Cola made the move to modify its internal operating requirements and align its
quality system with external standards. The result was that, Marshall said, "We changed our
philosophy, but not the content." (
Supply Chain
An amazing 1.8 billion servings of Coca-Cola products are sold around the world every
day, according to Steve Buffington, vice president of supply chain development and director of
supply chain, Bottling Investments Group for The Coca-Cola Company. Making sure that every
one of its thirsty clients gets the right product, at the right time and in the right price range is
Coca-Cola's supply chain priority.
This is most clearly describes the ratio of the Coca-Cola Company to its customers and to
how systems should be organized Supply Chain. And as well as the quality system, Supply Chain
system must be stable over the entire length of the supply chain from planting and harvesting of
agricultural products to the store shelf where there is a finished product. And it
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should be a global trend in business. In the Coca-Cola Company, this tendency in all areas of the
organization of a business process. And what's interesting to reaching its supply chain Coca-Cola
is constantly improving its three components of the supply chain.
Our system prioritizes three" upstream "areas that have the biggest impact on our
business: agriculture, packaging and cold-drink equipment. Packaging efforts over the years have
included light weighting (using less material to make our packages lighter), use of recycled
content materials, and more recently, supplier collaboration to accelerate Plant Bottle
packaging. Cold-drink equipment efforts have focused on ways to increase energy efficiency and
decrease climate impacts associated with our vending machines, coolers and fountain dispensers.
And In July 2013, together with World Wildlife Fund, our Company announced our new 2020
environmental goals which focus on sustainable management of water, energy, packaging use as
well as sustainable sourcing of agricultural ingredients through 2020 "(
In conclusion, I would like to say that would thrive in the business in an ever-changing
world around us Coca-Cola like any other successful companies need to look to the future. Try to
see and understand the trends that will shape business in the future and I think this problem is
already Coca-Cola set.
We must get ready for tomorrow today. That's what our 2020 Vision is all about. It creates a
long-term destination for our business and provides us with a "Roadmap" for winning together
with our bottling partners. (

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Company (
History ( ;
Overview and Environment
The ownership structure
Process Description
( -safety-and-quality.html)
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