Executive Summary

Created in Atlanta, Georgia on 8 May 1886, the first Coca-Cola was described as “delicious
and refreshing”. Not much has changed since then, and there’s still nothing better than an ice-cold
Coke to quench your thirst.
The Coca-Cola contour bottle, which dates back to 1915, is the most recognized packaging in the
world today, and the exact formula is a famous trade secret. Over time the Coca-Cola brand has
come to mean more than a drink, achieving celebrity status in many spheres of society. It represents
the power of optimism and positive thinking. It is “happiness in a bottle”, it connects people and
it brings out the best in the human spirit.
The Coca Cola corporation is defined to be the most well known trade mark in the world, and it is
justly so. Coca Cola owns over 400 brands that appeal to many different people all throughout the
world. They are able to satisfy the needs of all their consumers and make their experiences with
Coca Cola better. The Coca Cola products appeal to a wide range of people from all races, genders,
and ages. Coca Cola is well known for its worldwide popularity as its products are sold to over
200 counties, while major competitors only sell in several countries, putting Coca Cola ahead of
all competition. It is known worldwide and its branding is constantly earned by Coca Cola
surpasses all other beverage companies and these funds would over the years, is still growing to
this day, and will continue into the future. Many aspects of Coca Cola prove to be superior to that
of competitors, ranging from promotional techniques to corporate structure. Some of these aspects
include, positioning, market mix strategy, and implementation plan. These aspects place Coca Cola
superior to competitors, instigating Coca Coal to aspire higher goals and missions.
That’s why Coke is aligned with properties that embody the brand experience. In South Africa,
these “feel-good” platforms include football, music, holidays, food and summer. Across a range
of media channels, you’ll often hear about the involvement of Coca-Cola in landmark initiatives,
like Coca-Cola Football Stars, My Coke Fest, Coke & Food, and much more.
Coca-Cola is the only brand in the world to have an entire museum that showcases its history,
current reality and future possibility. The New World of Coca-Cola in Atlanta is open to the public
and is a “must see” if you are ever in that city. Coca-Cola contains sugar, high carbonation levels
and caffeine.
It’s real, authentic, original and the best. Its taste is indescribable.

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1.0: Introduction

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1.1 Origin of the Report:
This report originates as a result of our honorable course teacher Mr. Md. Ariful Hoque (Lecturer,
Department of Marketing, Jahangirnagar University) demand to have an report submitted by us
for our course report marks. At his request, we, the members of the group wrote this report

1.2 Object of The Report:

Making a clear and thorough “PESTEL” analysis of Coca-Cola. Information regarding political,
economical, social, technological, environmental, and legal forces of the brand are taken account
for the creation of PESTEL analysis.

1.3 Methodology:
As the report is related with business, it is a business research. Hence the report has been prepared
based on a research process. To analyze qualitative data we gone through many websites as well
as the main website of Coca-Cola, various magazines and journals, many PEST analysis essays.

1.4 Limitations of the Report:

Due to long distance we could not visit the premise of “The Coca-Cola Company” to incorporate
with the views of the “Top Management” about the performance & marketing opportunities of the
company.

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 2.0: An Overview of Coca Cola

2.1 Company Overview:

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The Coca-Cola Company is an American multinational beverage corporation and manufacturer,
retailer and marketer of nonalcoholic beverage concentrates and syrups, which is headquartered in
Atlanta, Georgia. The company is best known for its flagship product Coca-Cola, invented in 1886
by pharmacist John Stith Pemberton in Columbus, Georgia.The Coca-Cola formula and brand was
bought in 1889 by Asa Griggs Candler (December 30, 1851 - March 12, 1929), who incorporated
The Coca-Cola Company in 1892. The company operates a franchised distribution system dating
from 1889 where The Coca-Cola Company only produces syrup concentrate which is then sold to
various bottlers throughout the world who hold an exclusive territory. The Coca-Cola Company
owns its anchor bottler in North America, Coca-Cola Refreshments.
The company has a long history of acquisitions. Coca-Cola acquired Minute Maid in 1960, the
Indian cola brand Thums Up in 1993, and Barq's in 1995. In 2001, it acquired the Odwalla brand
of fruit juices, smoothies and bars for $181 million. In 2007, it acquired Fuze Beverage from
founder Lance Collins and Castanea Partners for an estimated $250 million. The company's 2009
bid to buy a Chinese juice maker ended when China rejected its $2.4 billion bid for the Huiyuan
Juice Group on the grounds that it would be a virtual monopoly. Nationalism was also thought to
be a reason for aborting the deal. In 1982, Coca-Cola purchased Columbia Pictures for $692
million. It sold the movie studio to Sony for $3 billion in 1989.

Coca-Cola Headquarters - Atlanta, Georgia

2.2 Brief Company Overview:

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 Company Type Public
Traded as NYSE: KO
Dow Jones Industrial Average Component
S&P 500 Component
Industry Beverage
Founded 1886
Founder(s) Asa Griggs Candler, John Pemberton created the soft
drink/beverage "Coca-Cola", but it was Asa Candler,
who founded The Coca-Cola Company.
Headquarters Coca-Cola headquarters,
Atlanta, Georgia, U.S.
Area served Worldwide
Key people  Muhtar Kent
(Chairman and CEO)
 Ahmet Bozer (Exec. Vice Pres.)
Products List of The Coca-Cola Company products
Revenue US$ 46.854 billion (2013)[1]
Operating US$ 10.228 billion (2013)[1]
income
Net income US$ 8.584 billion (2013)[1]
Total assets US$ 90.055 billion (2013)[1]
Total equity US$ 33.44 billion (2013)[1]
Employees 130,600 (Dec 2013)[1]
Subsidiaries List of The Coca-Cola Company subsidiaries
Website Coca-ColaCompany.com

Logo

Office at Crystal Palace (11th Floor), Road No 140, Dhaka 1212,

Bangladesh Bangladesh

2.3 Brand Profile:

Coca-Cola is a carbonated soft drink sold in stores, restaurants, and vending machines throughout
the world. It is produced by The Coca-Cola Company of Atlanta, Georgia, and is often referred to
simply as Coke (a registered trademark of The Coca-Cola Company in the United States since
March 27, 1944). Originally intended as a patent medicine when it was invented in the late 19th
century by John Pemberton, Coca-Cola was bought out by businessman Asa Griggs Candler,

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whose marketing tactics led Coke to its dominance of the world soft-drink market throughout the
20th century.

The company produces concentrate, which is then sold to licensed Coca-Cola bottlers throughout
the world. The bottlers, who hold territorially exclusive contracts with the company, produce
finished product in cans and bottles from the concentrate in combination with filtered water and
sweeteners. The bottlers then sell, distribute and merchandise Coca-Cola to retail stores and
vending machines. The Coca-Cola Company also sells concentrate for soda fountains to major
restaurants and food service distributors.

The Coca-Cola Company has, on occasion, introduced other cola drinks under the Coke brand
name. The most common of these is Diet Coke, with others including Caffeine-Free Coca-Cola,
Diet Coke Caffeine-Free, Coca-Cola Cherry, Coca-Cola Zero, Coca-Cola Vanilla, and special
versions with lemon, lime or coffee. In 2013, Coke products could be found in over 200 countries
worldwide, with consumers downing more than 1.8 billion company beverage servings each day.

John Pemberton – The Inventor of Coca Cola

2.4 Historical Origins of Coca Cola:

Colonel John Pemberton was wounded in the Civil War, became addicted to morphine, and began
a quest to find a substitute for the dangerous opiate. The prototype Coca-Cola recipe was
formulated at Pemberton's Eagle Drug and Chemical House, a drugstore in Columbus, Georgia,
originally as a coca wine. He may have been inspired by the formidable success of Vin Mariani, a
European coca wine.

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In 1885, Pemberton registered his French Wine Coca nerve tonic. In 1886, when Atlanta and
Fulton County passed prohibition legislation, Pemberton responded by developing Coca-Cola,
essentially a nonalcoholic version of French Wine Coca.

The first sales were at Jacob's Pharmacy in Atlanta, Georgia, on May 8, 1886. It was initially sold
as a patent medicine for five cents a glass at soda fountains, which were popular in the United
States at the time due to the belief that carbonated water was good for the health. Pemberton
claimed Coca-Cola cured many diseases, including morphine addiction, dyspepsia, neurasthenia,
headache, and impotence. Pemberton ran the first advertisement for the beverage on May 29 of the
same year in the Atlanta Journal.

By 1888, three versions of Coca-Cola – sold by three separate businesses – were on the market. A
copartnership had been formed on January 14, 1888 between Pemberton and four Atlanta
businessmen: J.C. Mayfield, A.O. Murphey; C.O. Mullahy and E.H. Bloodworth. Not codified by
any signed document, a verbal statement given by Asa Candler years later asserted under testimony
that he had acquired a stake in Pemberton's company as early as 1887. John Pemberton declared
that the name "Coca-Cola" belonged to his son, Charley, but the other two manufacturers could
continue to use the formula.

On July 5, 2005, it was revealed that Coca-Cola would resume operations in Iraq for the first time
since the Arab League boycotted the company in 1968. In April 2007, in Canada, the name "Coca-
Cola Classic" was changed back to "Coca-Cola". The word "Classic" was removed because "New
Coke" was no longer in production, eliminating the need to differentiate between the two. The
formula remained unchanged.

In January 2009, Coca-Cola stopped printing the word "Classic" on the labels of 16-US-fluid-
ounce (470 ml) bottles sold in parts of the southeastern United States.

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2.5 Brief Overview of Coca Cola:
Type Cola
Manufacturer The Coca-Cola Company
Country of United States
origin
Introduced 1886
Color Caramel E-150d
Flavor Cola, Cola Cherry, Cola Vanilla, Cola Green Tea,
Cola Lemon, Cola Lemon Lime, Cola Lime, Cola
Orange and Cola Raspberry.
Related Pepsi
products RC Cola
Cola Turka
Kola Real
Inca Kola
Zam Zam Cola
Mecca-Cola
Virgin Cola
Parsi Cola
Qibla Cola
Evoca Cola
Corsica Cola
Breizh Cola
Afri Cola
Website www.coca-cola.com
Logo

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3.0: PESTEL Analysis

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PEST analysis ('Political, Economic, Social and Technological analysis''') describes a framework
of macro-environmental factors used in the environmental scanning component of strategic
management. Some analysts added Legal and rearranged the mnemonic to SLEPT; inserting
Environmental factors expanded it to PESTEL or PESTLE, which is popular in the United
Kingdom. The model has recently been further extended to STEEPLE and STEEPLED, adding
Ethics and Demographic factors. It is a part of the external analysis when conducting a strategic
analysis or doing market research, and gives an overview of the different macro-environmental
factors that the company has to take into consideration. It is a useful strategic tool for
understanding market growth or decline, business position, potential and direction for operations.
The growing importance of environmental or ecological factors in the first decade of the 21st
century have given rise to green business and encouraged widespread use of an updated version of
the PEST framework. STEER analysis systematically considers Socio-cultural, Technological,
Economic, Ecological, and Regulatory factors.

 Political factors are basically to what degree the government intervenes in the economy.
Specifically, political factors include areas such as tax policy, labor law, environmental
law, trade restrictions, tariffs, and political stability. Political factors may also include
goods and services which the government wants to provide or be provided (merit goods)
and those that the government does not want to be provided (goods or bads). Furthermore,
governments have great influence on the health, education, and infrastructure of a nation.
 Economic factors include economic growth, interest rates, exchange rates and the inflation
rate. These factors have major impacts on how businesses operate and make decisions.
 Social factors include the cultural aspects and include health consciousness, population
growth rate, age distribution, career attitudes and emphasis on safety. Trends in social
factors affect the demand for a company's products and how that company operates.
 Technological factors include technological aspects such as R&D activity, automation,
technology incentives and the rate of technological change. They can determine barriers to

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 entry, minimum efficient production level and influence outsourcing decisions.
Furthermore, technological shifts can affect costs, quality, and lead to innovation.
 Legal factors include discrimination law, consumer law, antitrust law, employment law,
and health and safety law. These factors can affect how a company operates, its costs, and
the demand for its products
 Environmental factors include ecological and environmental aspects such as weather,
climate, and climate change, which may especially affect industries such as tourism,
farming, and insurance. Furthermore, growing awareness of the potential impacts of
climate change is affecting how companies operate and the products they offer, both
creating new markets and diminishing or destroying existing ones.

Breakdown on different forms of PEST analysis:

STEP PEST in more positive approach
PESTEL PEST + Environmental + Legal
PESTELI PESTEL + Industry analysis
STEEP PEST + Ethical
SLEPT PEST + Legal
STEEPLE PEST + Environmental + Legal + Ethical
STEEPLED STEEPLE + Demographic
PESTLIED PEST + Legal + International + Environmental + Demographic
LONGPEST Local + National + Global factors + PEST
INSPECT Intellectual + Natural + Cultural + PEST

4.0 PESTEL Analysis on Coca Cola

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4.1 Political Factors:
Those Non- Alcoholic Beverages like; Coca-Cola, are within the food category, under the FDA
(Food and Drug Administration). The government has control over the manufacturing procedure
of these products in terms of regulations. Companies who fail to meet the standards of law, are

17
fined by the government. Following are provided some of the factors that are influencing Coca-
Cola's Operations.

 Changes in Laws and Regulations like; changes in Accounting Standards, taxation

requirements (tax rate changes, modified tax law interpretations, entrance of new tax laws),
and environmental laws either in domestic or foreign authorities.

 Changes in Non-Alcoholic business era. These are; competitive product and pricing policy
pressures, ability to maintain or earn share of sales in worldwide market compared to rivals.

 Political Conditions, specifically in international markets, like; civil conflict, governmental

changes and restrictions concerning the ability to relocate capital across borders.

 Ability to penetrate emerging and developing markets, that also relies on economic and
political conditions, and also their ability to form effectively strategic business alliances
with local bottlers, and to enhance their production amenities, distribution networks, sales
equipment, and technology.

 The business related environment changing which would lead to pressure developing in
terms of pricing and the ability to sustain a level of sales in the market globally while
maintaining their competitive edge.

 The market changes which would take place internationally as a result of the political
situation changing there. This would include any kind of unrest, change in government and
the applying of restriction on movement of goods across country boundaries. This would
affect the penetration ability into new markets as well as the old ones. This would also
affect the ability to get into alliances which would be advantageous strategically with the
local industries as well network related to distribution and also sales.

4.2 Economic Factors:

Economic recession can be one of the most important factors that influence Coca-Cola Company.
The behavior of consumers changes during recessions. They have less money to spend and cut
back personal spending in response to the overall decline in economic activity.

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Due to this fact, sells of Coca-Cola Company can fall by in Europe as now there is a recession.
However, this worldwide company has huge brand awareness, unique selling point and due to this
fact sales are still growing, which shows that that the recession didn’t affect sales volume.

The change which is economic in nature would be aspects like the change in interest rates which
would lead to business depression and would cause redundant and low levels of spending. Like it
was seen in the US market despite the fact that it was doing very well it did not take too long for
things to take a complete different route as a result of the recession which took place which was
because the Gross Domestic Product had been negative for two consecutive years. The good part
was that it was short lived as a result of the actions taken by the Federal Reserve as well as the
Congress. This helped the economy take a U turn and get back to reflect growth which was
positive. The cutting down of interest rate by the Federal Reserve helped to promote expansion of
companies while increasing the level of debt. As the production and technology costs would go
down the products being offered in the market would be at lower prices thus in turn benefiting the
consumers. The economic condition as seen in the United States was very badly affected as a result
of the September 11 attacks but the economy has recovered now and going back to normal. Time
is the best healer for a situation like this. The industry related to non alcoholic beverages is
flourishing and growing drastically. Many markets have opened up to for the manufacturers of soft
drinks as the economic condition have improved there and can promote their growth as well. This
growth would be as a result of high level of profitability while sustaining in a stable manner and
also coming up with new and more improved products.

Inflation increases cost of production. Consequently, Coca Cola have to face the uncontrollable
problem of increasing their pricing. With this increase they risk losing customers who cannot
afford their products because it is a desired product not a necessity. For example, in 2002, a 2 liter
bottle of coca cola was 99p whereas today a 2 liter bottle costs £1.98. Due to inflation in 11 years
the price of an identical bottle of Coca Cola has doubled in price. Alternatively, Coca Cola could
be forced to lower their prices to facilitate an increase in consumption whilst taking a less favorable
profit margin.

4.2.1 Economic Opportunities of Coca-Cola:

Coca-Cola operates in more than 200 countries. Because of the local nature of our business, we
are in the unique position to contribute to the economic vitality of even the most remote
communities around the world.

The total indirect economic impacts of the Coca-Cola system are significantly greater than the
figures we present in our 2008/2009 Sustainability Review (PDF). The Coca-Cola system has more
than 900 plants around the world. Our ingredients and raw materials are largely sourced locally.
And our 92,400 employees represent thousands of communities and many cultures. In addition,

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our bottling partners employ hundreds of thousands of people around the world and are committed
to supporting community investment programs.

Our global business stimulates job creation throughout our value cycle. We contribute to the
economic success of each community by employing local people; paying taxes to governments;
paying suppliers for goods, services and capital equipment; and supporting community investment
programs. Past independent studies on the economic impact of our business in Asia, Africa and
Eastern Europe have consistently shown that for every job in the Coca-Cola system, an average of
10 more jobs are supported in local communities.

Oxfam America conducted a Poverty Footprint Analysis on the Coca-Cola /SABMiller value chain
in El Salvador and Zambia called Exploring the Links between International Business and Poverty
Reduction.

4.3 Social Factors:

The change which is related to lifestyle as well as attitude would be termed as social change. For
example now that more women were going for work the need related to products for usage at home
which would reduce time usage came up.

 One major change socially which has affected Coca cola is the shift to a health centered
lifestyle. Due to this shift the users of soft drinks are shifting to water or diet drinks and
thus the need to adapt and launch products accordingly have come up.
 The aspect related to management of time is also governing the kinds of product which are
required with respect to day to day existence.
 The middle aged consumers are getting very nutrition conscious and regarding the
longevity of their life so want to have healthier option availability in terms of beverages.
 The need for diversification is now becoming a constant requirement to get maximum
market positioning and market retention.

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  One of the most important social factors that influence Coca-Cola Company is that more and
more people are practicing healthier lifestyle than they used to have. Due to the fact that
nowadays people are aware to be healthy, the demand for non-alcoholic beverage products was
influenced. Customers are choosing a bottle of water rather than a can of Coke. Therefore there a
less people willing to buy Coca-Cola company’s products.
Also, time management has increased and is at approximatey43% of all households. (http://www
.cdfmn.org). The need for bottled water and other more convenient and healthy products are in
important in the average day-to-day life.
 Consumers from the ages of 37 to 55 are also increasingly concerned with nutrition. So, they are
looking for healthier drinks such as Coca-Cola.

The rapidly growing population today has meant that more and more companies can increase
their market share and have more business. This is no different for Coca Cola. As different cultures
grow Coca Cola grows with them. This is because there are more people to buy the products and
it rapidly increase Coca Cola’s profit and also their market share. Coca Cola expect that with a
bigger population there will be more people and a greater demand for products which votes
positively for Coca Cola.

4.3.1 CSR Activities

CSR policy functions as a built-in, self-regulating mechanism whereby a business monitors and
ensures its active compliance with the spirit of the law, ethical standards, and international norms.
In some models, a firm's implementation of CSR goes beyond compliance and engages in "actions
that appear to further some social good, beyond the interests of the firm and that which is required
by law.

"We will deliver for today, growing a low-carbon, zero waste business, and inspire change
for a more sustainable tomorrow." This has been the core message of any CSR campaign that
The Coca-Cola Company undertook. Some of their insignificant contribution to society is noted
below:
Coca-Cola's water stewardship initiatives are based on the responsibility to safely return to nature
an amount of water equivalent to what it use in all their beverages and their production and ensure
continued support to water neutrality.

Coca-Cola's water management policy is based on 3-R Approach across its bottling operations.
Coca-Cola's Water Management Policy
 Reduce – Reduce the quantity of water Coca-Cola uses to manufacture beverages and
become a water efficient user.
 Reuse / Recycle – Reuse as much as possible & treat wastewater in all our plants to
standards that support aquatic life prior to discharge.

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  Replenish – Support water replenishing activities and sustainable community water
programmes to balance water used in our finished beverages.

Within our plants, emphasis is laid on water efficiency of the equipment and processes during the
design stage. In addition, the plant operations implement Water Treatment Filter Backwash
Recovery, Bottle-Washer Water Recovery and Wastewater Recovery through Ultra-Filter and RO
processes. Over the last 4 years, the water efficiency of company plant operations has improved
by 40%.

As part of our Replenishment Policy, Coca-Cola's water stewardship initiatives with local
community include:
 Rain Water Harvesting Initiatives
 Restoration of Traditional Community Water Bodies
 Sustainable Agriculture Practices

Coca-Cola: Hello Happiness

To give labors in the UAE a few extra minutes of happiness, Coca-Cola created the Hello
Happiness Phone Booth -- a special phone booth that accepts Coca-Cola bottle caps instead of
coins for a free 3-minute international phone call, helping them connect with their families back
home more often.

It takes a lot of courage to steel your heart and live away from your family. Not being there to
watch your child's first steps and see your wife smile means giving up a lot. But in the race to make
a living and build a decent life, this is a sacrifice many are willing to make.

So what is it that makes the distance from home and family just a little bit more bearable? A phone
call back home.

It was understanding this little concept that brought about a very innovative initiative by Coca-
Cola. In order to give labors in the UAE a chance to talk just a little bit longer to their loved ones
across the world, Coca-Cola created the Hello Happiness Phone Booth.

Here's how one can use this special and inexpensive way to communicate with a loved one. Drink
a bottle of Coca-Cola and use the cap as currency to dial home. Every cap equals a free three-
minute international phone call. It's hello to happiness indeed.

What will truly melt your heart is the look on each worker's face.

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Coca-Cola 2nd Lives:
Coca Cola teamed up with award-winning ad agency Ogilvy & Mather China on a new “2nd Lives”
campaign and created 16 red screw-on caps that transform the otherwise-useless left-over plastic
bottle into something creative, fun and usable. This environmentally friendly campaign launched
in Vietnam, where 40,000 free caps will be given away when purchasing the iconic soda drink.
These fun caps transform the used beverage bottles into a lamp, a paintbrush, a spray bottle, a
pencil sharpener, a soap dispenser, and many other usable objects. Graham Fink, the chief creative
officer of Ogilvy & Mather China, explains the idea behind the project: “We have created fun tools
with Coke bottle tops, bringing small moments of happiness into people’s lives“
Rejoice, happy-go-lucky and environmentally conscious Coca-Cola lovers. Thanks to this new
"2nd Lives" kit from the brand, you can now transform your Coke into something even more
delightful.
Is that just an empty soda bottle? Nope, it's a squirt gun. Useless piece of trash? Nope, it's a pencil
sharpener, or the perfect rattle for your baby. Make your children happy. Give them Coca-Cola,
and toys made from Coca-Cola. And if you have two empty Coke bottles, you can even make a
dumbbell to burn off some of the calories you gained by guzzling both.
Created with the help of Ogilvy & Mather China, the campaign features a line of 16 innovative
caps that can be screwed on to bottles when they're empty, transforming them into useful objects
like water guns, whistles, paint brushes, bubble makers and pencil sharpeners. It's all part of a
clever effort to encourage consumers in Vietnam to recycle, and a rare success at the sort of
alchemy that seeks to reincarnate garbage as advertising (even if such attempts are a cornerstone
of the marketing industry). Coke will give away 40,000 of these modified caps, which come in 16
different varieties, to start.
It's not clear if the add-ons themselves are made from recycled material. Even if they are, producing
more plastic parts might not be the best way to reduce plastic waste.
But that's beside the point. While the caps might not quite hit the sharing chord as clearly as the it-
takes-two-to-open bottles, they're a smart bit of advertising. "What if empty Coke bottles were
never thrown away?" the campaign asks. Clearly, it would mean people everywhere could finally
live in a utopia where everything was made of Coke products.

Coca-Cola helps school students in Gazipur:

Senior officials of Coca-Cola, UN HABITAT and Plan Bangladesh spent a day with school
students from two primary schools in Sreepur, Gazipur district as part of Coca-Cola
Bangladesh’s sustainability campaign ‘Support My School (SMS)’.

Under the SMS Campaign, Coca-Cola Bangladesh is providing sanitation facilities, clean
drinking water and recreation amenities in schools around Bangladesh as well as building
awareness among school students about protecting and conserving the environment. The
campaign aims to address issues in schools that lead to absenteeism or dropping out from school,

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especially amongst girls. Coca-Cola has provided support to 16 schools in Sreepur, Gazipur in
partnership with UNHABITAT

and Plan Bangladesh. Neelima Khetan, General Manager-Corporate Social Responsibility for
Coca-Cola India & South West Asia, Debasish Deb, Country Manager, Coca-Cola Far East Ltd,
MD. Akhtaruzzaman, UN Habitat Bangladesh Program Manager and Debashish Shaha, Director-
Field Operations of Plan Bangladesh were present on the occasion.

Sustainability Review
As an organisation, it committed to report on its activities that impact the lives of the rich diversity
of people who live in territories in which itd business operates. CCS remains resolutely committed
to continuous improvement in the stewardship of all its resources. In 2008 the report reflected that
CCS is on track towards meeting its sustainability commitments. The Sustainability Review
provides evidence of this in many different projects. Some of the countries in which it operate
faced major challenges over the past few years; ranging from natural disasters to political and civil
instability. The fact that its people have, on each occasion, risen above the difficulty makes the
company very proud as an organization, but also humbles it and makes it even more committed in
its role as a corporate citizen. The company’s message on their sustainability was ‘We aim to build
a healthy, sustainable organization through the value chain that makes a positive contribution to
our diverse stakeholders in all our territories’.

The Sustainability Review provides an overview of our Group’s performance under the broad
definition of Corporate Responsibility. The Coca- Cola Sabco Community Foundation committee
consists of the Non –Executive Director Dorothea Moors, the Chief Executive Officer Stephanus
Nothnagel and Group Learning and Development Manager Tracy Potgieter.

Wings and Wishes

Wings & Wishes was established in 2006 after a group of employees from Coca-Cola Sabco (Pty)
Ltd developed the innovative idea of donating their frequent flyer miles as part of an internal
Corporate Social Responsibility initiative. The miles were committed to facilitating the transport
of critically ill children and an accompanying family or suitable medical support team member to
the Red Cross Children’s Hospital in Cape Town, or an alternative appropriate medical facility,
for treatment.

These are some examples of some of Coca-Cola’s Corporate Social Responsibility.

4.4 Technological Factors:

Coca Cola are breaking into other markets with the help of technology. They have a partnership
with Spotify which are a music service that offers music on demand. Coca Cola and Spotify have

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created a service which provides customers with music and helps them connect with others around
the world that love the same type of music. Coca Cola have stated that they like technological
advances and that music has been a big part in their marketing strategy. This is why they have
partnered up with Spotify so they can improve this digital on demand service and make it available
to more people around the world.

These are factors such as research and development, technological change rate, automation,
innovation etc. These factors have affected Coca-Cola to a great extent hereby enabling the
company to use more advanced technology in its production. Coca-Cola also has adopted creating
a paperless environment. Most things in the company are done through the computer which
increases the efficiency of the business.

Some factors that affect the company's actual results to vary essentially from the expected results,
are the following:

1.The efficiency of company's advertising, marketing and promotional programs, The new
technology advances of television and internet that use incomparable effects for advertising
through the use of media. Those advances make the products seem attractive. This supports the
selling promotion of the products. Coca-Cola in media tends to use this technology so, to sell
effectively its products.

2. Entrance of cans and plastic bottles in the past, have increased sales volume for the company
because they are easier to carry and customers can bin them once they have been used.

3.Since the technology is advancing continuously there has been entrance of new machineries'
equipment all the time. Because of that, Coca-Cola's production volume has increased sharply
compared to few years ago.

4.CCE-Coca-Cola Enterprises have six factories in Britain by using modern technology equipment
so to ensure top product quality and quick delivery. In Wakefield,Yorkshire in 1990, CCE opened
one of the Europe's largest soft drinks factory. That factory has the ability to produce faster the
cans of Coca-Cola even faster than bullets of a machine gun.

The changes which are related to the technology would lead to the launch of products which are
new in the market or would work towards improvements in the existing product. The use of various
new techniques related to marketing would also be used like the internet. The factors in Coca cola
which were related to technology and shifted the result from what was expected were

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 The internet opened a whole new world while broadening the reach of the campaigns. The
attractiveness of the products is enhanced and this pushes sales. The fact that use of media just
makes things easier and more convenient.

Coca cola being supplied in cans as well as plastic bottled led to the sales going up as they
improved in terms of convenience in terms of carrying, storage as well as discarding.

The factories which bottle the product offered by Coca cola have improved and some of the can
producing companies are supplying cans very fast and efficiently. This has also pushed the
availability of the Coca cola products in high quality. Thus this would improves sales, delivery
and in turn profitability of the company on the whole The changes which are related to the
technology would lead to the launch of products which are new in the market or would work
towards improvements in the existing product. The use of various new techniques related to
marketing would also be used like the internet. The factors in Coca cola which were related to
technology and shifted the result from what was expected were –

 The kind of affect which the promotional techniques or the marketing programs would have on
the company and its profitability level. The internet opened a whole new world while broadening
the reach of the campaigns. The attractiveness of the products is enhanced and this pushes sales.
The fact that use of media just makes things easier and more convenient.

 Coca cola being supplied in cans as well as plastic bottled led to the sales going up as they
improved in terms of convenience in terms of carrying, storage as well as discarding.

 New machinery for production of their products has also come up which has led to improvement
in the supply and the quality of the product.

 The factories which bottle the product offered by Coca cola have improved and some of the can
producing companies are supplying cans very fast and efficiently. This has also pushed the
availability of the Coca cola products in high quality. Thus this would improves sales, delivery
and in turn profitability of the company on the whole

Finally, the new technology advances like television and internet that use incomparable effects for
advertising through the use of media. Those advances make the products seem attractive and thus
the demand for Coca-Cola Company increases. This supports the selling promotion of the
products. Coca-Cola in media tends to use this technology so, to sell effectively its products.

What is more, new technologies made it possible for Coca-Cola Company to use recycle materials
in order to make cans and plastic bottles. Since nowadays people do think about the environment,
‘green company’ image increased the demand for the Coca-Cola. The new technological advances
promise-

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Freestyle Dispensers
Coca-Cola began rolling out its freestyle dispensers in late 2010 and early 2011. Unlike typical
soda fountains, the freestyle dispenser allows you to create your own beverage by choosing from
over 100 drinks in various combinations. Not only does freestyle technology allow a greater variety
of drinks through its computer-like interface, but the dispenser records information concerning
consumers' drink choices, then sends the data back to Coca-Cola as market research.

An Example of Freestyle Dispenser of Coca Cola

Greener Bottles
Coca-Cola introduced greener bottles and packaging in 2009, producing 2.5 billion of their
products using less petroleum. The practice has been so successful that other companies, such as
Heinz, have harnessed this technology to create greener packaging as well. While the 2009
production represents only three percent of Coca-Cola's packaging, the movement continues to
grow, as billions of cases of Coca-Cola products are shipped globally each year.

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 Greener Bottles of Coca Cola

Social Networking
Coca-Cola maintains a visible appearance on Facebook and other social networking sites such as
Twitter. With over 34 million fans as of 2011, Coca-Cola harnesses the power of social networking
to spread the word concerning new products, test advertorial campaigns, invite users to play games
and associate Coca-Cola products with positive feelings. Using social networking technology
enables a brand to stay young, fresh and current.

Their Facebook page has over 83 million likes. And constantly giving updates about their plans,
promotions, products to many facebookers around the world. They are a proud sponsor of FIFA
world cup 2014. And they are proudly showing it as their current cover. Which plays a vital role
in increasing the company’s goodwill and consumer appeal?

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 Screen-shot of Coca Cola’s Facebook Page

Online Advertising
Coca-Cola uses subtle yet effective online advertising to make you feel like you want its products.
Targeted advertisements on websites mean that Coca-Cola has greater control over who sees their
ads and when they see them.

Holiday Special Online Advertisement by Coca Cola

For instance, when you're perusing the online menu of a local eatery, Coke ads may appear, making
you associate that restaurant with a tall, icy glass. Or, when you're researching local beaches, you
may see an ad for Coca-Cola products, thereby associating heat with the refreshment of Coke.

The Advertisement above is published on Coca-Cola Bangladesh’s Website

4.5 Environmental Factors

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As company is growing, new issues are occurring. The most important to my mind is using
pesticides.

Coca Cola’s product in India contained toxins such as lindane, DDT, malathion and chlorpyrifos
— pesticides that can contribute to cancer and a breakdown of the immune system.

Issue with pesticides in groundwater in 2003 led to problems for the company when an Indian
NGO, Centre for Science and Environment, announced that it had found cancer causing chemicals
in Coca-Cola as well as other soft drinks produced by the company, at levels 30 times that
considered safe by the European Economic Commission. This caused an 11 percent drop in Indian
Coca-Cola sales. The Indian Health Minister said the CSE tests were inaccurate, and said that the
government's tests found pesticide levels within India's standards but above EU standards. The
UK-based Central Science Laboratory, commissioned by Coke, found its products met EU
standards in 2006. Coke and the University of Michigan commissioned an independent study of
its bottling plants by The Energy and Resources Institute (TERI), which reported in 2008 no unsafe
chemicals in the water supply, though it criticized Coke for the impact of its water usage on local
supply.

Environmental analysis examines the local, national and world environmental issues. According
to the data of the Coca Cola Company, all of the facilities are strictly monitored according to the
environmental laws imposed by the government.

The biggest environmental factor that could impact Coca Cola’s marketing decisions is global
economic interdependence. Global economic interdependence means that the economies of
different companies are linked so closely that if one were to fail, they would all be affected. The
formation of the World Trade Organization in 1995 required all member countries to regulate and
check all goods that are imported to make sure they are in line with the guidelines set for domestic
production. This means that no country can show special treatment to any country so that they all
have equal opportunity to trade, encouraging countries to participate in international trade. This
also allows Coca-Cola endless opportunities and possibilities for continued global growth.
As Coca-Cola began a small company, its growth into a successful franchise not only altered
the current beverage market, but also the environment as well. Developed by Dr. John Pemberton
in 1886, the syrup was mixed with carbon-dioxide and sold out of a local pharmacy in Atlanta,
Georgia. As national growth expanded with the company moving locations 5 times within 12
years, it also hit international markets, with the opening of a bottling plant in Canada in 1906.
Expansion continued into Asia as early as 1912, Europe by the 1920’s, and Africa by the 1930’s.
125 years later, the company has grown from its single product and location, to 500 brands across
200 countries (125 Years of Sharing Happiness). As figures show this growth as a positive, it
neglects to factor in environmental effects associated with global growth, such resource depletion,
pollution, and waste. As Coca-Cola has conquered the global beverage market, it must now

30
reassess and take responsibility over its environmental impact of waste management in both water
resources and packaging to continue its success into the future.

As Coca-Cola has offered its success abroad, so have countries such as, England and
India, also felt the underlying impacts on their water resources that comes with it. Although
differing in their political, economic, and social constructions, both countries have found common
ground in the effects of Coca-Cola 'drinking their countries dry'. In an article written in 2004,
entitled, “Hills are Alive with Sound of Drilling: Malvern Water Facing Coca-Cola Threat,” it
addresses the fear of the company’s proposal to drill for water in the Malvern Hills. If Coca-Cola
were to expand its water-bottling operation, it would remove an additional 20 million liters of
water a year from the hills and would require the installation of a 1.7 mile pipeline to retrieve the
water (Hills are Alive with Sound of Drilling). Although the company states that environmental
testing will be carried out to ensure minimal damage, a fear still remains of the exploitation of the
water resource. Looking at India as an example, a 2006 article entitled, “Coke ‘drinks India dry’,”
it addresses the criticism of Coca-Cola depleting water resources in developing countries. “For
every 2.7 liters of water it takes, it produces 1 liter of product” (Mathiason). This usage has caused
water depletion to the extent that farmers are unable to irrigate their fields and surrounding
communities no longer have access to clean water. Here, the company again opposes the concerns
by stating that the company believes in equal access to resources and that efforts have been made
to reduce water consumption by 24% over 4 years (Mathiason). As Coca-Cola may have gauged
their success by their triumph abroad, they must assess these concerns of environmental damage
in order to continue providing their product in the future.

Although controversy surrounds Coca-Cola and its water resource damage across the
world, the company has begun to address another environmental side effect, waste management.
In an article entitled, “The Coca-Cola Company Rolls Out new PlantBottle Packaging,” it speaks
to the company’s goal of reducing their carbon footprint by tackling packaging. PlantBottle
Packaging is made from atleast 30% plant material and is 100% recyclable (The Coca-Cola
Company). The plant material is derived from sugarcane based ethanol, which is cultivated from
an area in Brazil known for its environmental sensitivity (The Coca-Cola Company). This life
cycle analysis of not just the bottle, but its origins and manufacturing, produce a compelling
solution to the traditional plastic bottle. Here the goal of packaging simultaneously addresses two
fronts, the problem of emissions and waste management. While PlantBottling Packaging is
estimated to eliminate 3 million gallons of gasoline used to produce plastic bottles, it also promotes
recycling and a cradle to cradle scenario of the product (The Coca-Cola Company). Through these
actions do we see Coca-Cola beginning to recognize the global environmental impacts of their
actions, and the steps taken to ensure evolution into the future.

Through the analysis of the Coca-Cola Company, both its actions of a business model and
environmental impacts be aligned with previous societies in their quest for growth and expansion.

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In the text, A New Green History of the World, Ponting devotes a section entitled The Foundations
of Inequaltiy, which focuses on the effects of European expansion. With the only focus of growth,
European plantation expansion resulted in exploitation of labor and resources. Environmental
effects were felt specifically in the Canary Islands with the Spanish Conquest, and Africa with the
Portuguese slave trade (173). Here, it was the Europeans who held the power, and were able to
manipulate the places they touched, and without any concern for the environment resulted in
suffering of the area. As agriculture was the vehicle for European domination over the
environment, so is the production of a soft drink for the Coca-Cola Company, with the results of
water depletion and waste management. In order to continue its operation, Coca-Cola must learn
from these precedents as to not deplete resources so that they may simultaneously continue
production and communities may thrive.

Although various factors have contributed to the globalization of the western diet, looking at The
Coca-Cola Company as one case study has shown just a piece of the trend’s repercussions of
environmental impacts. As Coca-Cola began a small, local company, its growth from the West
into the global diet not only altered the current beverage market, but also the environment as well.
As figures show this growth as a positive, it neglects to factor in environmental effects associated
with global growth, such resource depletion, pollution, and waste. As Coca-Cola has conquered
the global beverage market, it must now evolve and take responsibility over its environmental
impact to continue its success.

Coca Cola also embarked on a new recycling way called Recycle Happiness. Giving kids a chance
to play games using empty coca cola bottles on arcade.

Arcade Machine runs on empty coca cola bottles

4.6 Legal Factors:

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Legal aspect focuses on the effect of the national and world legislation. The Coca Cola Company
receives all the rights applicable in the nature of their business and every inventions and product
developments are always going into the patented process.

Coca Cola Company was sued for Racial Discrimination Allegations. The lawsuit, filed in April
1999, accused Coke of erecting a corporate hierarchy in which black employees were clustered at
the bottom of the pay scale. Company paid a lot less money to black workers then white ones.
Black employees were afraid to complaint in order not to lose their jobs.

This information occurred in the internet and mass media, a lot of customers of Coca-Cola
Company was shocked and disgusted. What is more, many countries banned to sell company’s
products. Coca Cola lost its image due to discrimination of employees.

The main legal factors affecting Coke may be seen as changes in legislation and regulation in the
UK and international soft drinks market, and different pressure groups lobbying for more
environmentally friendly or ethnically sound practices. For example, activists have been said to be
pushing for more government control over product labeling and advertising standards. Coca Cola
have a legal responsibility to show ingredients clearly and honestly on their packaging.

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 5.0 Some Bewildering Facts

Coca-Cola is everywhere.

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The iconic American brand is recognized instantly around the globe and sold in more than 200
countries. Additionally there are thousands of subsidiary beverages that you might have no idea
are owned by Coke.

Here are some amazing facts about Coca-Cola:

 3.1% of all beverages consumed around the world are Coca-Cola products
 Coke makes so many different beverages that if you drank one per day, it would take you
over 9 years to try them all.
 Coca-Cola's $35.1 billion in revenue makes it the 84th largest economy in the world, just
ahead of Costa Rica.
 The Coca-Cola brand is worth an estimated $74 billion: more than Budweiser, Pepsi,
Starbucks and Red Bull combined.
 Although Coca-Cola revenue was 38% less than PepsiCo's last year, Coke generated more
in soft drink revenue -- around $28 billion vs. $12 billion.
 If every drop of Coke ever produced were put in 8-ounce bottles and laid end-to-end, they
would reach the moon and back over 2,000 times.
 If you stacked up Coke's 2.8 million vending machines, they would take up 150.2 million
cubic feet of space -- the size of 4 Empire State Buildings.
 The red and white Coca-Cola logo is recognized by 94% of the world's population.
 There are 33 non-alcoholic brands that generate over $1 billion in revenue. Coca-Cola
owns a whopping 15 of them.
 Around the world, the average person consumes a Coke product every four days.
 Coca-Cola spends more money on advertising than Microsoft and Apple combined.
 Coca-Cola advertising budget (2010): $2.9 billion

 Microsoft advertising budget (2010): $1.6 billion

 Apple advertising budget (2010): $691 million

 Americans ingest 1.7 million tons -- or 10.8 pounds per person -- of sugar each year from
Coca-Cola alone.
 The average Mexican drinks more Coke products than the average American, British,
Indian, and Chinese combined.
 Coke uses 300,000 tons of aluminium for its cans every year just for its US operations.
That's equal to 17.4% of what the entire US aluminum industry produces.
 Coca-Cola sells more than 1000 kinds of juice drinks, including: Simply, Minute Maid,
Fruitopia, Hi-C, Fuze and Odwalla.

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6.0 Conclusion

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 The company should look into the uncertainty with respect to the availability and sourcing
of the materials which help in production of the final product being too high. The affect on the
power related to bargaining with the suppliers would be very low as they are very small in number
and thus the suppliers cannot be easily substituted or replaced.
The suppliers’ condition has a direct affect on the company. This should be brought down as the
supplier while going down might take the company down as well. The best way to better their
standing in terms of supplier Coca cola should get into alliances which are strategically viable and
do not give away too much of ownership stake. The best way to do that would be through complete
take over of a supplier or the process of integration vertically. This would result in the company
gaining from the profits of the supplier, would reduce their cost while building a reliable base for
the supply of the materials. This process would cost the company in two ways one the actual
process of purchase and the other would be the costs which are bureaucratic in nature.
The company should work towards purchase of the companies which mainly supply its raw
materials and this would secure their future. This is important because ownership is the only way
to have absolute control on any kind of supplier. The supplier ownership would help the core
business to maintain its profitability as the uncertainty of the raw material supply is removed
completely. The companies rating with regard to credit is high that is the reason they would be
able to come up with the finance to acquire the suppliers. They would come up with the money
while incurring very little cost.
The process related to making of decisions does not work in sync with the strategic plan of the
company or with the structure. The centralized technique which is followed in their process related
to making of decisions is not the same as how other things are taking place in the company. The
structure in Coca cola is organic while its strategic plan and agendas promote creative techniques
and constant involvement of the employees. An improvement process needs to be carried out
which betters the process for making of decisions and helps in strategically promoting learning in
the organization.
The switching should take place in terms of managers who are in charge of various departments
on a regular basis. This would promote thinking which is not mechanical and is more spontaneous
and not regular. This would help the managers to push their boundaries as well as improve the
culture for learning in the company.
The company should also problem solve fast with respect to more pressing issues while showing
a strong bond with the community and their promotion.
The employees should be involved in the process for decision making as they are the ones mainly
affected by any decisions which are taken. This would also help to bring together the skills which
are present and link it with the structure of the company. The managers would have to keep their
doors and their minds open to any inputs form the employees and help in the problem resolving
process.

37
The process for making of decisions would be more timely and would constantly keep reminding
the policy makers about the strategic plan which the company is based on. This would also improve
the confidence level of the people who hold a stake in the organization. The problems would no
longer be seen like obstacles for growth but would just help to promote leadership, cooperation
and help in innovation in terms of processes and technology. All leadership level would feel
involved and responsible for success of the organization.
The criticism which the company has received as a result of its partners for bottling in Colombia
has to be looked into and tackled. It had led to Coca cola facing heavy penalties as well as strikes.
Though it is one of its partners which were involved in the controversy its name is involved so it
leads to negative publicity for them as well. The only way out of this mess for Coca cola is to buy
over the partners for bottling. Then they should utilize their experience and contacts to stabilize
the situation and convert the negative mindset into a positive one. The unions and the management
would have to resolve issues and work together to improve the image and bring down costs without
compromising on quality. This would also lead to improvement in terms of accountability and
would help to achieve better dedication of the employees and would streamline operations and
stabilize the channel for distribution of the products in the area. The other advantage of this would
be that the relationship between the citizens of the country would become better as they would see
positive results. The acquisition process would lead to costs for the company in the present
situation but would yield very high benefits for them in the future.
Thus it can be easily established that the brand can be easily recognized and its popularity is one
of its major assets which gives it the competitive edge over the competitors. It is well established
internationally as well. They have worked very hard to keep the brand as obvious and in the face
as possible thus making it memorable. Many of their products are not that well recognized or made
a significant part of their promotional campaigns. Another aspect which they need to tackle is the
obsession of the present day consumer with health. They need to do something fast before they
loose their consumer base to the competition. The other concern which Coca cola needs to address
is that the product has no health benefits and is only detrimental. The presence of Coca cola is
global but in order to sustain they need to work hard to keep their competitive edge while retaining
their consumer base.

~THE END~

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