1.

The Coca Cola company. The Coca-Cola Company has two types of ownership: public shareholding and
institutional shareholding. The Coca-Cola Company is a public company that trades its shares on the
New York Stock Exchange, and its stock is owned by thousands of shareholders and investors around the
world. The Coca-Cola Company markets, manufactures and sells:

- beverage concentrates and syrups; and,

- finished beverages (including sparkling soft drinks; water and sports drinks; juice, dairy and
plantbased drinks; and tea and coffee).

By 2020 year The Coca Cola company had 86 200 employees worldwide.

Financial information.

According to financial information from official website of The Coca Cola Company (screenshot follows):

- Global Unit Case Volume Declined 3% for the Quarter and 6% for the Full Year
- Net Revenues Declined 5% for the Quarter and 11% for the Full Year;Organic Revenues (Non-
GAAP) Declined 3% for the Quarter and 9% for the Full Year
- Operating Income Grew 8% for the Quarter and Declined 11% for the Full Year; Comparable
Currency Neutral Operating Income (Non-GAAP) Grew 14% for the Quarter and Was Even for
the Full Year
- Fourth Quarter EPS Declined 29% to $0.34, and Comparable EPS (Non-GAAP) Grew 6% to $0.47;
Full Year EPS Declined 13% to $1.79, and Comparable EPS (Non-GAAP) Declined 8% to $1.95
- Cash from Operations Was $9.8 Billion for the Full Year, Down 6%; Full Year Free Cash Flow
(Non-GAAP) Was $8.7 Billion, Up 3%.

2. Stage of lifecycle

Currently Coca-Cola is under the maturity stage due to the solidity and capability of keeping a large and
loyal group of stable customers

The company is traveling longer period of time in the maturity stage then all other stages, when it is
introduced in western countries. Coca-cola still in the growth stage of Asian Countries.

3. Preconditions of changes and diagnostics of their necessity

The Coca Cola changes the way it makes drinks to avoid a cancer warning label in compliance with
Californian law.
The Coca-Cola is changing the way they make the caramel coloring used in their drinks as a result of a
California law that mandates drinks containing a certain level of carcinogens bear a cancer warning
label. The company said the changes will be expanded nationally to streamline their manufacturing
processes. The changes have already been made for drinks sold in California. Coca-Cola accounts for
almost 60% of the soda market, according to industry tracker Beverage Digest.

The American Beverage Association, which represents the broader industry, said its member companies
will continue to use caramel coloring in certain products but that adjustments were made to meet
California's new standard.

A representative for Coca-Cola, Diana Garza-Ciarlante, said the company directed its caramel suppliers
to modify their manufacturing processes to reduce the levels of the chemical 4-methylimidazole, which
can be formed during the cooking process and as a result may be found in trace amounts in many foods.

"While we believe that there is no public health risk that justifies any such change, we did ask our
caramel suppliers to take this step so that our products would not be subject to the requirement of a
scientifically unfounded warning," Garza-Ciarlante said in an email.

The Centre for Science in the Public Interest, a consumer advocacy group, in February filed a petition
with the US Food and Drug Administration to ban the use of ammonia-sulfite caramel coloring.

The American Beverage Association noted that California added the coloring to its list of carcinogens
with no studies showing that it causes cancer in humans. It noted that the listing was based on a single
study in lab mice and rats.

4. The Coca Cola Company object of change

After a long work of chemists, a new formula for the drink was created. Tests (and there were more than
200,000 of them) showed that the new taste was preferable to Pepsi. Since in order to maintain its
position, Coca-cola could not promote two main products at once, it decided to remove the old Coca-
cola from sale. The new packaging differed only by a small inscription "New" one.

After the company announced the release of New Coke at a press conference, the Americans rushed to
buy the old version of the soda. The company certainly underestimated the emotional attachment of
Americans to their brand. For the common people, coca-cola was not just a soda, it was part of the
culture, one of the incarnations of the American spirit.

The changed formula (and this was the first change in almost a hundred years) caused an avalanche of
anger. People only talked about the disappearance of the old cola. Protest groups such as the Society for
the Preservation of Real Values and the American Old Coca-Cola Society began to emerge. Songs were
written about the classic Coca-Cola, and protests were held outside the company's office.

Most Americans decided to boycott the old product, so after the appearance of New Cola on sale, the
decision to change the formula was recognized as the “marketing failure of the century”. Less than three
months later, the company had to revert to the old formula.

Roberto Goisweita handed over his post to Donald Köf, who commented on the return of the classic
Coca-Cola: “Everything that happened is the result of the fact that no amount of money, skills and
knowledge of consumer preferences for New Cola can measure the deep emotional attachment of such
a huge number of people to the original Coca -Kole. The passion - and this is precisely the passion - for
the original drink struck us to the core. This is a wonderful American secret, a mystery that, like love,
pride, patriotism, cannot be measured. "

It seemed that Coca-Cola made an irreparable mistake, but the return of the old Coca-Cola formula
made a splash. All mainstream TV channels trumpeted the return of the old formula, thus advertising
Coca-cola for free. And despite the failure of New coke (which continued to be produced for a while),
sales of the classic Coca-cola skyrocketed, allowing it to gain market share.

People began to appreciate more the brand that they almost lost. Coca-Cola denied that this was their
original plan: “Someone will say that Coca-Cola made a marketing mistake, someone will say that we
planned everything. The truth is that we are not that stupid and we are not that smart ”- commented
Donald Koeff.

The main lesson Coca-Cola learned from this situation is that it is not in the power of marketers to
change the brand. They can only maintain their positions, which they have taken in the mind of the
consumer. Coca-Cola cannot be new, and new cola cannot be real. After all, for a long time advertising
of Coca-cola was accompanied by the slogan "It is real!"

5. Stakeholders and participants in strategic change

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