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The Practice of Management

of Coca-Cola
Outline
Company Introduction
Planning
Organizing and Developing the Organization
Leading and Motivating the Human Organization
Controlling, Improving and Innovating
Findings and Conclusion
Company Introduction
Short History
Industry and Industry Standing
Major Competitors
Top Management Team
Product line and major brands
Company Introduction
is the one of the world’s largest
beverage company and is also the leading producing and
marketing of soft drinks. The company has many brands that
have been sold across different countries around the globe.

The company has been operating since 1886 where it was


one of the few who have produced syrup concentrated
drinks. Moreover, the company was able to lead the market
for a very long time and is still growing and capable of
dominating the market.
Company Introduction
is the one of the world’s largest
beverage company and is also the leading producing and
marketing of soft drinks. The company has many brands that
have been sold across different countries around the globe.

The company has been operating since 1886 where it was


one of the few who have produced syrup concentrated
drinks. Moreover, the company was able to lead the market
for a very long time and is still growing and capable of
dominating the market.
SHORT HISTORY
Georgia by John Pemberton Asa Griggs Candler

1886 1891

Coca Cola Coca Cola’s first


BORN
In a drug store
BOTTLING
occurred
Georgia by John Pemberton
Asa Griggs Candler
Coca-Cola was made for the cure of

headache
and other
illnesses
Sales for the first year were only

$50
Only 9
servings of the soft drink were
sold
each day
1899 1909

The first bottling 400 Coca-Cola plants


AGREEMENT BOTTLING
was done were operating
1912 1960

The company opened in the New

PHILIPPINES BRANDS
were Introduced
1985 2000

Attempts to renew the Most valuable brand in the

FORMULA WORLD
Industry and
Industry Standing
Commercial Beverage
Industry:
Standing:

3rd Best Company Worldwide

Best Company in the


Beverage Industry Worldwide
Industry Standing:
Worldwide Share
Worldwide Share
Worldwide Performance
COCA COLA BUSINESS MODEL

COCA-COLA
BUSINESS MODEL
MAJOR COMPETITORS
Global Competitors
•PepsiCo Inc.
•Dr Pepper
•Suntory
•Unilever,
•Groupe Danone,
•Kraft Foods Inc.,
•Nestlé S.A. and others.
Comparison of Financial Performance
Product Line vs. Competitors
Coca-Cola Pepsi Dr. Pepper Snapple

Coca-Cola Pepsi Dr. Pepper

Diet Coke Mountain Dew 7-UP

Fanta Sierra Mist Schweppes

Sprite Mug Root Beer A&W Root Beer

Barq's Diet Pepsi Sunkist


TOP MANAGEMENT TEAM
Muhtar Kent James Quincey
● Currently the Chairman ● Formerly the president
of Board of Directors of the coca cola
● Served the company as company’s europe
the Chairman and CEO group.
in 2009-2017 ● The president and CEO
of the company.
Francisco Crespo Benítez J. Alexander M.
● Senior Vice President and Douglas, Jr.
Chief Growth Officer of The
● President of Coca-Cola
Coca-Cola Company.
North America.

● Previously served as the


● Former Senior Vice
President of The Coca-Cola
President and Global Chief
Company’s Mexico business
Customer Officer.
unit.

● In this role, Crespo led the


company’s operations across
its second-largest global
market.
Irial Finan Bernhard Goepelt
● Executive vice president of The ● Senior Vice President, General
Coca-Cola Company and president Counsel and Chief Legal Counsel of
of Bottling Investments Group The Coca-Cola Company.
(“BIG”).
● He was the Associate general
counsel of global marketing,
● He has responsibility for
commercial leadership and strategy
operations with more than $15 of atlanta and also managed the
billion in revenues and more than administration of legal division
45,000 employees.
Robert Long Jennifer Mann
● Senior Vice President and ● Senior Vice President and
Chief Innovation Officer of
Chief People Officer, as well
The Coca-Cola Company.
as Chief of Staff for The
● In this role, he leads work Coca-Cola Company’s President
to accelerate the growth of and CEO, James Quincey.
the company’s consumer-
centric brand portfolio with
● Mann accelerated the global
hundreds of new products and
expansion and led its
continued innovation.
development across the Coca-
Cola system.
Barry Simpson Craig Williams
● Chief Information Officer of ● Senior Vice President and
The Coca-Cola Company. President of the McDonald's
Division of The Coca-Cola
● In his role, Simpson oversees Company.
all of the company’s global
● He leads a global organization
information technology
that is responsible for
strategy, services and
building the strategic alliance
operations.
with McDonald's in over 35,000
restaurants in more than 100
countries.
Beatriz Perez Kathy N. Waller
● Chief Public Affairs, ● Executive Vice President,
Communications and Sustainability Chief Financial Officer
Officer for The Coca-Cola Company. and President, Enabling
● Aligns a diverse portfolio of work Services of The Coca-Cola
Company.
against critical business
objectives to support brands, ● In this role, Waller is
communities, consumers and partners responsible for
worldwide. Oversees the Company’s overseeing the company’s
sports and entertainment assets key strategic governance.
such as olympics and FIFA.
Product Line and
Major Brands
Product Line and Major Brands
Business Performance Highlights
TOTAL CURRENT ASSET: $ 34 Billion
TOTAL LONG-TERM ASSET: $87 Billion
TOTAL ASSET: $ 127 Billion
Number of worldwide Coke employees

150,900
Revenue Performance:

Period 12/31/2016 12/31/2015 12/31/2014 12/31/2013


Ending:

Total $41,863,000 $44,294,000 $45,998,000 $46,854,000


Revenue:

Cost of $16,465,000 $17,482,000 $17,889,000 $18,421,000


Revenue:

Gross Profit: $25,398,000 $26,812,000 $28,109,000 $28,433,000


Coca-Cola Company Business Segments Revenues
and Revenue Share- FY

Coca-Cola Company FY 2014 Revenues By Business Segments


• Of the total $45.9 billion revenues, Coca-Cola Company generated
• $17.5 billion revenues, 38% of the total, from the concentrate business
• $28.5 billion revenues, 62% of the total from the finished product business
Planning
Strategic Direction
Mission Vision Values
Philosophy, Principles
SWOT Analysis
Key Issues and Challenges
Goals, Strategies and Objectives
Planning
Strategic Direction
Mission Vision Values
Philosophy, Principles
SWOT Analysis
Key Issues and Challenges
Goals, Strategies and Objectives
Strategic Alignment
Our Strategy
The Group Strategy is our blueprint for success. It
positions us to capture growth and deliver long-term
value. We know that our markets will continue to
change. We are confident in our ability to navigate this
changing environment, with the three pillars of our
Group Strategy as our foundation.

This approach is anchored in a strategy defined by three


pillars:
LEAD
Strengthening category
leadership position:

- Leading brands in each


major NARTD category in
each market

- Up-weighted levels of
innovative marketing
continually strengthen
brand equity

- Evolving portfolio that


adapts to changing
consumer preference
Step change in productivity
and in-market execution:

- World-class customer
servicing capability

- Route-to-market that
provides customer
diversification and real
competitive advantage

- Effective leverage of our


large-scale, low-cost
manufacturing, sales and
distribution capability
PARTNER
Better alignment with The Coca-Cola
Company and our partners

- Shared vision of success and aligned


objectives

- Joint plans for growing system


profitability

- Balanced share of risk and rewards


5 Strategic Actions
FOCUS ON DRIVING
REVENUE AND PROFIT
GROWTH

BECOME SIMPLIFY
MORE OUR
EFFICIENT COMPANY

REFOCUS ON OUR INVEST IN OUR


CORE BUSINESS BRANDS AND
MODEL BUSINESS
http://www.coca-
colacompany.com/stories/five-strategic-actions

https://www.ccamatil.com/en/our-
company/our-strategy
FOCUS ON DRIVING REVENUE AND PROFIT GROWTH

In emerging markets, we focused primarily on increasing


volume, keeping our beverages affordable and strengthening the
foundation of our future success.

We used segmented
revenue growth strategies
across our business in a In developing markets, we struck a balance between volume
way that varied by market and pricing. In developed markets, we relied more on price/mix
type. And we aligned our and improving profitability by offering more small packages and
employee incentives more premium packages like glass and aluminium bottles.
accordingly.
INVEST IN OUR BRANDS AND BUSINESS
Healthy businesses require
continuous investment. We made a choice
to invest in more and better marketing for
our brands, increasing both the quantity and
quality of our advertising. We increased
spending on media advertising by more than
$250 million, and we used these funds to
share stronger, more impactful ads.

BECOME MORE EFFICIENT

As we took steps to rebuild our growth


momentum, we knew we needed to invest in more
and better marketing while also increasing our
financial flexibility. To these ends, we increased our
efficiency and productivity while reducing costs.
SIMPLIFY OUR COMPANY
We looked hard at our operating structure
and identified areas where we could be faster,
smarter and more efficient. We removed a layer of
functional management and connected our regional
business units directly to headquarters. We
streamlined a number of important internal processes
and removed roadblocks and barriers that inhibited
us from being as effective and responsive as we
knew we could be.

REFOCUSED ON OUR CORE BUSINESS MODEL


Portfolio includes more than 500 brands,
including sparkling beverages, juices and juice drinks,
coffee, tea, sports drinks, water, value-added dairy,
energy and enhanced hydration drinks. Among these
brands are 20 that generate more than a billion dollars in
annual retail sales.
Planning
Strategic Direction
Mission Vision Values
Philosophy, Principles
SWOT Analysis
Key Issues and Challenges
Goals, Strategies and Objectives
Mission:

To refresh the world.


To inspire moments of optimism and happiness.
To create value and make a difference.
Vision:

People: Be a great place to work where people Planet: Be a responsible citizen that makes a
are inspired to be the best they can be. difference by helping build and support
sustainable communities.
Portfolio: Bring to the world a portfolio of quality
beverage brands that anticipate and satisfy Profit: Maximize long-term return to shareowners
people's desires and needs. while being mindful of our overall responsibilities.

Partners: Nurture a winning network of Productivity: Be a highly effective, lean and fast-
customers and suppliers, together we create moving organization.
mutual, enduring value.
Values:
Leadership: The courage to shape a better future Accountability: If it is to be, it's up to me
Collaboration: Leverage collective genius Passion: Committed in heart and mind
Integrity: Be real Diversity: As inclusive as our brands
Quality: What we do, we do well
Philosophy:
Focus on the market: Work smart: Act like owners:

•Focus on needs of our •Act with urgency •Be accountable for our
consumers, customers actions and inactions
and franchise partners •Remain responsive to
change •Steward system assets
•Get out into the market and focus on building
and listen, observe and •Have the courage to value
learn change course when
needed •Reward our people for
•Possess a world view taking risks and finding
•Remain constructively better ways to solve
•Focus on execution in discontent problems
the marketplace every
day •Work efficiently •Learn from our
outcomes -- what
•Be insatiably curious worked and what didn’t
Principle:

We have and continue to focus on all three of the components that must be
put in place in a corporate context under the Principles:

•A policy commitment to meet the responsibility to respect human rights;

•A due diligence process to identify, prevent, mitigate and be accountable for human
rights abuses; and

•Processes to enable the remediation of any adverse human rights impacts the
Company causes or to which it contributes.
Planning
Strategic Direction
Mission Vision Values
Philosophy, Principles
SWOT Analysis
Key Issues and Challenges
Goals, Strategies and Objectives
HR PHILOSOPHY

Organizing Human resources at Coca Cola Company


Management at Coca Cola Company focuses on
the acquisition and retention of highly skilled and
knowledgeable employees so that it can maintain
its top position in the market.
It also provides for the security of employment to
the workers so that they may not be distracted by
the uncertainties of their future. The Coca-Cola Company values
its employee as its best asset.
HR PHILOSOPHY
Organizing the Coca Cola Human Resources:
Human resources at Coca Cola is organized by the
HR department
 Make a team who works under department
head.
 Arranging and structuring work to accomplish
organizational goals.

Top - Downward Communication:


 In Coca Cola, the flow of information is
downward.
 Top management makes the decisions.
 All the necessary information is passes through
the head of department to the group members.
HR PHILOSOPHY
Human Resources Division/Department at Coca Cola
Coca Cola considers human resources as a key department. A
responsibility of Human Resource department is to provide a
method of employee recruitment and retention that produce
maximum employee satisfaction and performance on the job.
Coca Cola place great emphasis on people development so
that people and organization perform at maximum capacity in
a highly effective manner.
HR PHILOSOPHY
Coca Cola motivates the employees in various ways like:
 Increasing in the salaries of the
employees
 Increments
 By filling the little need
 Personal grooming of the
employee
 And some functions are
arranged for the employees
and their families children
come and enjoy this is another
way to motivating the
employees
CSR PHILOSOPHY
• According to the Coca Cola Corporate Social
Responsibility Report (2016) the CSR program of the
company is the following:.
• It has broadened the product portfolio with products
that are not fattening and it has reduced the amount of
calories in its beverages by 88% according to school
beverage guidelines. It has also supported Michelle
Obama's campaign ("Let's Move") with the initiative
Clear on Calories.
• With respect to the axis of Packaging Recycling, the company introduced
PlantBottle which is a "fully recyclable PET bottle made from a blend of
petroleum - based materials and up to 30 per cent of plant-based
materials (Coca Cola CSR 2010). Coca Cola has also managed to achieve
high recycling rates of its bottles (99 per cent in Europe and 92 per cent in
North America).
• Regarding Water Stewardship, the company strives to improve the
efficiency of water use. It has improved the use of water by 3.5 per cent
from 2008. It current average water use ration to make one litre of its
products is 1.67 litres.
CSR PHILOSOPHY
In its previous CSR programs, Coca Cola has created special programs to attract, retain and develop
the skills and abilities of employees. These programs enable employees to properly exploit their potential while
developing leadership skills and talents needed by the company in all sectors and in all countries. Its current CSR
program promotes employees equality regarding diverse cultures.

• According to the first Employee


Engagement Survey, Coca Cola
has improved the levels of its
employee engagement whereas
on the Corporate Equality Index
of the Human Rights Campaign
it has received a 100 per cent
score.

• Finally, with regard to energy and climate, the company co-signed


the Copenhagen Communique. It was a supportive action to the
global agreement on climate change. For the second year in the row,
it has reduced company carbon footprint.
CSR PHILOSOPHY
CSR Objectives:
Coca cola enterprises have taken a value chain approach in considering our most significant
impacts. To this end, where stated, our value chain data goes beyond our own operations.

For our own operations, unless otherwise indicated,


data in this report covers all operations owned or
controlled by CCE, including our administrative
offices in the United States and Bulgaria.

Our carbon footprint is calculated in accordance


with the WRI/WBCSD Greenhouse Gas Protocol and
we use an operational consolidation approach to
determine organizational boundaries. The water use
data in this report refers to our production facilities,
where we have the greatest operational water use.
All financial data in this report is in US dollars,
unless otherwise stated.
SUSTAINABILITY PHILOSOPHY

As a global business, our ability to understand, embrace


and operate in a multicultural world -- both in the
marketplace and in the workplace -- is critical to our
sustainability.
SUSTAINABILITY PHILOSOPHY
STRATEGIC PRIORITIES
Our Sustainability Plan includes three strategic priorities:

• Deliver for Today – demonstrating best


practice across all of our commitments.

• Lead the Industry – in areas where we


believe we can make the biggest
difference: – Energy and Climate Change
– Sustainable Packaging and Recycling

• Innovate for the Future – driving new


opportunities for innovation, thought
leadership, collaboration and partnership.
SUSTAINABILITY PHILOSOPHY

• The Coca-Cola Company is committed to creating


more long-term sustainable value for everyone
connected to our business and the communities we
proudly serve across more than 200 countries and
territories.
• Our work on sustainable business practices not
only helps to improve the lives of individuals and families
across the Coca-Cola system, it also helps to strengthen
the connections between our brands and the people
who reach for them more than 1.9 billion times a day.
This is fundamentally important to us as we know our
business thrives and grows best when our local
communities are also thriving and growing.
SUSTAINABILITY PHILOSOPHY
Today, our primary sustainability focus is
on the “Three Ws” of women, water and
well-being. Women, often pillars of the
communities we serve, tend to invest strongly
in their families and neighborhoods. However,
they remain at an economic disadvantage in
almost every part of the globe. That’s why we
made a commitment to an initiative called
5by20™—with a goal to help enable 5
million women entrepreneurs across our
global value chain by 2020. As of year-end
2015, we had helped to enable the economic
empowerment of more than 1.2 million
business woman with programs in the form
of training, mentoring, micro-loans and more.
SUSTAINABILITY PHILOSOPHY
• Water, the primary ingredient in
our products, is essential to the
sustainability of our business. In 2015,
we achieved our goal of replenishing
100 percent of the water we use in
our finished beverages as calculated
using generally accepted scientific
methods and with the assistance of
independent, reputable partners like
Deloitte, The Nature Conservancy and
LimnoTech.

But reaching 100 percent replenishment doesn’t mean our work is done and as
our business grows, we will continue to maintain our stewardship of this
valuable resource.
SUSTAINABILITY PHILOSOPHY
As for well-being, we are taking a holistic
view of what it means to make a positive
difference in the world. This effort begins with
the role of our brands and the value we create
for those linked to our business, including our
associates, retail and restaurant customers,
bottling partners, suppliers and many others.
Our work doesn’t stop there.

• In 2015, we also joined with partners in


advance of the COP21 conference to sign the Food
and Beverage Leadership Statement on Climate
Change. Moreover, we continue to seek new ways
to increase supply-chain sustainability and reduce
our overall carbon footprint. In 2015, we placed in
market more than 490,000 HFC-free beverage
coolers, bringing our total to 1.8 million.
SUSTAINABILITY PHILOSOPHY

• Beyond our sustainability commitments,


we support the United Nations Global Compact,
advancing its principles through our actions and
our relationships. We believe in creating value
and engaging across local, regional and national
governments, NGOs, educational institutions,
and our local communities.
• In 2015, we took action to engage more
transparently with groups and individuals
concerned about obesity. We’re also concerned
about the growing challenge of
noncommunicable diseases.
Planning
Strategic Direction
Mission Vision Values
Philosophy, Principles
SWOT Analysis
Key Issues and Challenges
Goals, Strategies and Objectives
S W O T A N A L Y SIS
1.Brand Equity – Interbrand in 2.Company valuation – One of the
2014 awarded Coca cola with most valuable companies in the
the highest brand equity world, Coca cola is valued around
award. Coca cola with its vast 79.2 billion dollars. This valuation
global presence and includes the brand value, the
unique brand identity is numerous factories and assets
definitely one of the costliest spread out across the world and
brands with the highest the complete operations cost and
brand equity. profit of Coca cola.

STRENGTHS of Coca Cola


3.Vast global presence – Coca cola is present in
200 countries across the world. Chances are, any
country that you go to, you will find coca cola
present in that market. This vast global presence
of coca cola has also contributed to the building
of the mammoth brand name.

4.Largest market share – There are only 2 Big


competitors in the beverage segment – Pepsi and
Coca cola. Out of these 2, coca cola is the clear
winner and hence has the largest market share.
Amongst all beverages, Coke, Thums up, Sprite,
Diet coke, Fanta, Limca and Maaza are the
growth drivers for Coca Cola.

STRENGTHS of Coca Cola


5.Fantastic marketing strategies – Coca cola
unlike Pepsi always tries to win peoples heart.
Where Pepsi’s target is continuously changing,
and is targeted towards youngsters, Coca cola
targets people of all ages. The targeting is also
done by celebrities who are well liked – for
example – Amitabh Bacchan, Sachin tendulkar,
Aishwarya Rai, Aamir Khan etc

6. Distribution network – Coca cola has the


largest distribution network because of the demand
in the market for its products. On the other hand,
due to this successful distribution network, Coca
cola has been able to command such a high market
presence.

STRENGTHS of Coca Cola


7. Customer Loyalty –
With such strong
products, it is natural that
Coca cola has a lot
of customer loyalty. The
products mentioned
above like Coca cola and
Fanta have a huge fan
following. People will
prefer these soft drinks
over others. Because of
the good taste of Coca
cola, finding substitutes
becomes difficult for the
customer.

STRENGTHS of Coca Cola


1.Competition with Pepsi – Pepsi is a thorn in the
flesh for Coca cola. Coca cola would have been
the clear market leader had it not been for Pepsi.
The competition in these two brands is immense
and we don’t think Pepsi will give up so easily.

2.Product Diversification is low – Where Pepsi has


made a smart move and diversified into the
snacks segment with products like Lays and
Kurkure, Coca cola is missing from that segment.
The segment is also a good revenue driver for
Pepsi and had Coca cola been present in this
segment, these products would have been an
additional revenue driver for the company.

WEAKNESSES of Coca Cola


3. Absence in health beverages –The
business environment is changing and
people are taking measures to ensure
that they are not obese. Carbonated
beverages are one of the major
reasons for fat intake and Coca cola
is the largest manufacturer of
Carbonated beverages. The inference
is that the consumption of beverages
in developed countries continues to
go down as people will prefer a
healthy alternative.

WEAKNESSES of Coca Cola


4.Water management – Coca cola has
faced flak in the past due to its water
management issues. Several groups have
raised lawsuits in the name of Coca cola
because of their vast consumption of
water even in water scarce regions. At
the same time, people have also blamed
Coca cola for mixing pesticides in the
water to clear contaminants. Thus water
management needs to be better for
Coca cola.

WEAKNESSES of Coca Cola


1.Diversification – Diversification in the 2.Developing nations – Although developed
health and food business will improve the nations have a high presence of Coca cola,
offerings of Coca cola to their customers. these countries are slowly moving towards
This will also ensure that they get better healthy beverages. However developing
revenue from existing customers by cross countries are still being introduced to the
selling their products. The supply chain delight of carbonated drinks and soft
which is distributing their beverages can drinks. Thus the higher consumption in
also distribute these snacks thereby sharing developing environment’s can be a good
the load of Supply chain costs. opportunity to capitalize for Coca cola.

OPPORTUNITIES of Coca Cola


3.Packaged drinking water – With hygiene
becoming a major factor in the consumption of
water, Packaged drinking water has found its
way into peoples mind. Coca cola has a presence
in the packed drinking water segment though
Kinley. Although Kinleys expansion is slow as of
now, Kinley has a huge potential of expansion.
Thus Coca cola as a company should focus on
the expansion of Kinley as a brand and take it up
to Bisleri ‘s level of trust.

OPPORTUNITIES of Coca Cola


4.Supply chain improvement – 5.Market the lesser selling products -
Supply chain can be a major cost In the product portfolio of Coca cola,
sink hole with the transportation there are several products which have
costs always rising. Coca cola’s not found acceptance in the market.
complete business is based on Coca Cola needs to concentrate on
transportation and distribution. the marketing of these products as
There will always be possible well. It is understood that Coca cola
improvements in this area. Thus has made several expenses to launch
Coca cola should keep strict these products.
watch on its Supply chain and
keep improving to bring the cost
down.

OPPORTUNITIES of Coca Cola


1.Raw material sourcing – Water is the only
threat to Coca cola. The weakness of Coca cola
was the suspected use of pesticides or vast
consumption of water. However, the threat here
is that water scarcity is on the rise. With the
climate changing, and regions of various
countries facing scarcity of water, sooner or later
someone might raise fingers on beverage
companies. Thus, Water sourcing is an axe which
can fall anytime on the head of Coca cola. If
water is limited or rationed, Coca cola can
experience a major downfall in their revenue and
capacity of distribution. The same can affect its
arch rival Pepsi as well.

THREATS of Coca Cola


2.Indirect competitors – Coffee chains like
Starbucks, Café coffee day, Costa coffee
are on the rise. These chains offer a
healthy competition to Coca colas
carbonated drinks. They might not be a big
competition for Coke, but they do give a
dent to its beverage market. Similarly,
health drinks like Real and Tropicana as
well as energy drinks like Red bull and
Gatorade are stealing away the market
share indirectly.

THREATS of Coca Cola


Planning
Strategic Direction
Mission Vision Values
Philosophy, Principles
SWOT Analysis
Key Issues and Challenges
Goals, Strategies and Objectives
WHY THE DECLINING REVENUE
KEY ISSUES & CHALLENGES

New Demographics
• More people are becoming health conscious
• They see coca-cola as equivalent to sugar = obesity
• Prefer non-carbonated drink
KEY ISSUES & CHALLENGES

Divestiture
• After years of snail-paced progress, the beverage giant is now racing to sell
off its US manufacturing and distribution operations by next year so it can
focus on its much more profitable concentrate-making business.
• This wholesale divestment push wasn’t exactly what Coke had in mind
when it acquired its largest bottler for $12.3 billion ($16bn) six years ago.
KEY ISSUES & CHALLENGES
KEY ISSUES & CHALLENGES
Planning
Strategic Direction
Mission Vision Values
Philosophy, Principles
SWOT Analysis
Key Issues and Challenges
Goals, Strategies and Objectives
Goals, Strategies and Objectives
Financial
Marketplace
Workplace
Community
REVENUE GOALS
Slowdown and Decline
Globally, Coca-Cola has been missing its own 3% to 4% annual volume growth target for two years.

GOALS
In the upcoming years is how the company
Rebalances away from carbonated drinks.
Maintaining its long-term high single-digit EPS
growth target while adjusting its net revenue target
to mid single-digit growth and replacing its
operating income metric with profit before tax.
Going forward, the Company will have a profit
before tax target of 6% to 8%.
SHIFT FROM A SPARKLING DOMINANT DRINK TOWARDS HEALTHIER DRINKS
PROFITABILITY GOALS
Expanding its current successful
productivity program by targeting
annualized savings of $3 billion per
year by 2019. This productivity
program will focus on four key areas:

• Restructuring the Company’s global supply


chain, including manufacturing in North
America;
Doubling the current value • Implementing zero-based budgeting
across the organization;
of the company by 2020. • Streamlining and simplifying its operating
model; and
• Driving increased discipline and efficiency
in direct marketing investments.
EFFICIENCY GOALS

Streamlining and simplifying its


operating model to speed decision
making and enhance local market focus.

These organizational changes, along with


the previously announced changes being
made to long-term incentive metrics, will
empower employees and link line-of-sight
accountability to business results.
EFFICIENCY GOALS

Refocusing on its core business model of


building the world’s greatest beverage
brands and leading an unmatched global
system of strong local bottling partners.

This will include refranchising the majority of


Company-owned North American bottling
territories by the end of 2017 and a substantial
portion of the remaining territories no later than
2020.
GROWTH GOALS

Strategically targeting brand and growth investments that


leverage its global strengths.

This includes previously announced plans to improve the quantity


and quality of marketing, as well as making future investments
that will target markets and categories where brands remain
underfunded relative to the opportunity. The Company has a
disciplined strategy for incremental investments, prioritizing
spending in markets where the Coca-Cola system has the right
price/package architecture and execution capabilities in place. We
will also continue to grow investments in our still beverages while
leveraging our new partnership model.
GROWTH GOALS

Focusing on driving revenue and profit growth across


markets while providing local operations with a clear
line of sight and aligned compensation targets.

Beginning in 2015, revenue growth will be added as a metric


in the Company’s incentive plans. The Company will adjust the
relative importance of volume and price/mix in each market in
order to drive the right behavior for each market type.
Goals, Strategies and Objectives
Financial
Marketplace
Workplace
Community
MARKET SHARE GOALS

Coca-Cola has a high market share,


competitor pressure has forced
customer sensitivity to price to be fairly
high, sales volume is, of course, high
and the profit margin is fairly low as
the Coca-Cola products are fast moving
consumer goods. This point to
penetration strategy.
Penetration pricing means the setting
of lower rather than high prices to
achieve potentially dominant market
share.
MARKET SHARE GOALS
Coca-Cola and PepsiCo are both looking
for new ways reverse declining sales.
Though Coca-Cola grew its sparkling soft
drink revenue last quarter, by volume,
global soft drink sales fell by 1 percent for
the company.

Ultimately,, the product's success will likely


come down to taste. While Coke has had
success with low-calorie and calorie free
brands like Coke Zero and Diet Coke,
when the company introduced the
reformulated “New Coke” in 1985, it
resulted in an epic brand identity crisis and
ultimate sales flop.
NEW PRODUCTS

New beverages include the Gold


Peak line of premium ready-to-drink
(RTD) tea lattes and coffees in the first
quarter of 2017. The company has
also announced a line of Dunkin
Donuts branded ice coffee beverages.

The source cites Coca-Cola's


strategy as offering the correct size
package at the correct price, essentially
creating a segmented price approach.
This will hopefully serve a
wider variety of beverage occasions.
NEW PRODUCTS

Much of Coca Cola’s development activity over recent years has revolved
around reformulation to reduce levels of added sugar in its traditional range
of products in response to market, regulatory and healthy lobby demands
NEW MARKETS

Identifying Growth in Developing Markets


Coca-Cola’s third strategy for growth has
been focusing on penetrating more
developing markets.
This is prudent because international
countries are expected to take more and While developing markets have market-
oriented economies, they generally have
more of the global beverage market share lower disposable income per capita than
over the next few years. By focusing on the our established markets. In addition, these
fastest-growing markets, Coca-Cola should countries can be exposed to periods of
drive sales, improving investor returns. economic volatility.
NEW MARKETS

We will execute our strategy by focusing on


OBPPC (Occasion, Brand, Package, Price
and Channel) implementation, operational
efficiency and tight cost control.

We see amazing growth opportunities for


all of our drink products and we are
committed to maximising opportunities.
We plan to add exciting, new products,
flavours and packaging in both future and
immediate consumption channels.

The foundation of this plan lies in supporting route-to-market systems and


increasing the availability of coolers and other cold drink equipment. Such a
strategy will also enable us to develop our presence in emerging markets.
NEW MARKETS
As soda sales slow in the US, Coca-
Cola is looking elsewhere for
customers.
One of the major regions of focus:
Africa.

Coke said in 2014 it would invest $17


billion in the continent from 2010 to
2020, a figure that tripled the
amount spent in the previous decade.

In late January, the company announced its biggest overseas acquisition since
2012: A 40% stake in Nigeria’s largest juice marker, TGI Group’s Chi Ltd, which
sells beverage brands such as Chivita 100% and Chi Ice Tea, with plans to buy the
rest within the next three years.
CUSTOMER GOALS

Customer preference is a core value of our


business. For us, it means building true
partnerships that create sustainable value and
profitable growth for both our business and
our customers, across all key channels.

Our customers include hypermarkets,


supermarkets, discounters, kiosks, petrol
stations, cinemas, leisure parks, hotels,
restaurants and cafés, among others.

By finding new ways to win together in the marketplace, we aim to be the preferred supplier to
all of our customers. To achieve this, we’ve adopted a comprehensive set of initiatives designed
to build collaborative customer relationships and ensure excellent execution.
COMPETITION GOALS
Our blueprint for ensuring ongoing
consumer relevance and excellence in
the marketplace focuses on five core
principles:

•Availability
Placing our products within easy
reach of consumers in the right package,
in the right location, at the right time

•Affordability
Offering a wide variety of desirable,
premium quality products, in packages
appropriate for the occasion, at the right
price
COMPETITION GOALS

• Acceptability
Supplying an extensive and growing range of
products that meet the highest quality standards in each
country, enhancing their acceptability to
consumers. Our experience in quality control, customer
service and efficient distribution, combined with a
detailed understanding of consumer needs and access
to the most effective communications channels, allows
us to reach out to customers and consumers in each of
our markets and meet their demands
COMPETITION GOALS

• Activation
Motivating consumers to choose our products by improving
product availability and attractiveness at the point of purchase and
by building brand strength in our local markets.
• Attitude
How our sales representatives and people behave every day
with our customers as they focus on meeting their needs – we
want to be their supplier of choice. For key retail customers, we’ve
also introduced the idea of joint value creation, built on the
understanding that soft drinks offer significant growth not only
for us, but for them too.
Goals, Strategies and Objectives
Financial
Marketplace
Workplace
Community
WORKPLACE

 People and Organizational


Leadership: Build a highly capable
organization and be the employer
of choice.
 Commercial Leadership: Profitably
deliver superior value to consumers
& customers at the optimal cost to
serve.
 Supply Chain: To be the best in
class consumer demand fulfillment
organization that exceeds customer
expectations highest in quality,
lowest in cost, in a sustainable,
socially responsible manner.
WORKPLACE

 Operational Excellence: Create


a culture of Operational
Excellence to support
continuous improvement of
our business process and
systems.
 Sustainability: Ensure the long
term viability of our business
by being proactive and
innovative in protecting the
environment and be
recognized as one of the most
responsible corporate citizens
by all stakeholders.
Goals, Strategies and Objectives
Financial
Marketplace
Workplace
Community
SUSTAINABILITY GOALS

The Coca-Cola Company is


committed to giving back 1 percent
of its prior year’s operating income
annually. This commitment is made
through The Coca-Cola Foundation
and company donations.

In 2015, The Coca-Cola Company


and The Coca-Cola Foundation gave
back more than $117 million to
directly benefit nearly 300
organizations across more than 70
countries and territories.
SUSTAINABILITY GOALS

Priority Areas
•Women: economic
empowerment and
entrepreneurship

•Water: access to clean water,


water conservation and
recycling

•Well-Being: education, youth


development and other
community and civic
initiatives
SUSTAINABILITY GOALS

Water Stewardship
We support initiatives that provide
access to clean water and sanitation,
watershed protection in water-
stressed regions, the utilization of
water for production and or multiple
use systems that do more than
provide clean drinking water, and
education and awareness programs
that promote water conservation
within communities and industry.
SUSTAINABILITY GOALS

Well-being

We support initiatives that


strengthen and enrich
communities, including
education, youth development
and other community and civic
initiatives.
SUSTAINABILITY GOALS
Education
We are supportive of programs that offer
scholarships, school drop-out prevention
projects, access to educational
programming, and other educational
initiatives deemed critical by our local
business units.
Locally-Designated Priorities
We also respond to critical local initiatives
related to HIV/AIDS education and
prevention and malaria in Africa and Latin
America, youth development initiatives in
Europe and diversity initiatives in the United
States.
SUSTAINABILITY GOALS

Community Recycling
We support initiatives to
increase liter abatement efforts,
advance recovery and reuse,
increase community recycling
awareness, and offers support
for research and innovation.
Organizing
Organizational Structure
Traditional or Inverted Pyramid
Talent Management
Talent Development
Talent Retention
Organizational Structure
Organizing
Organizational Structure
Traditional or Inverted Pyramid
Talent Management
Talent Development
Talent Retention
Top - Downward Communication:

 In Coca Cola, the flow of


information is downward.
 Top management makes the
decisions.
 All the necessary information
is passes through the head
of department to the group
members.

Traditional or Inverted Pyramid


Organizing
Organizational Structure
Traditional or Inverted Pyramid
Talent Management
Talent Development
Talent Retention
The Coca-Cola Company's extraordinary heritage, our leading brands and the
global scale of what we do;

The challenge of meaningful work - our unique global system offers constant
opportunities to develop world-class skills and a truly international career;

A unique culture where people convert their passion into action;


The kind of competitive compensation you would expect from a world leader.

Attracting the Right Employees


Ability to make a difference
The Coca-Cola Company is a place
where you can make a positive mark on
the world. Whether through our
sustainability initiatives, human rights
work or the ripple economic impact
each person creates by simply doing
their job well, there are endless
opportunities to build shareholder value
and make an impactful contribution to
many communities.

Attracting the Right Employees


Ability to grow
A career at The Coca-Cola Company is truly a
one-of-a-kind experience. It's more than
working for the global beverage leader; it's an
opportunity to be a part of something that
impacts the world.

Every person has the opportunity to create a


long and successful career with The Coca-
Cola Company. With operations in over +200
countries, and full catalog of development
programs, the growth opportunities with this
Company are boundless.

Attracting the Right Employees


What do we expect from employees
The ability to contribute, to make a difference and
have a tangible impact - turning your passion into
action;

Creative and fresh thinking in your work and your


life, regardless of your role;

A spirit of collaboration - you thrive when you


work with a diverse range of people with different
views, perspectives and priorities;

A pragmatic and commercial mindset that


understands the challenge of sustainability.

Attracting the Right Employees


Organizing
Organizational Structure
Traditional or Inverted Pyramid
Talent Management
Talent Development
Talent Retention
Selection Process
- Interview
- Group exercises
- Presentations
- Psychometric Tests
- Role Play/ Situational Exercises

Selection Process
● Peak Performance, our ongoing individual performance management
process & rewards

● Coca-Cola University ( CCU), our virtual global university representing a


one-stop shop for all learning and capability building activities across The
Coca-Cola Company

● Assessment and Development Forums

Development programs
Functional Development to
enhance and build job
knowledge, skills, and
competencies within a
department or functional area

Short-term Assignments to
expose associates to work that
is different from what they do
on a daily basis. This could be a
short-term assignment in
another country or market or a
project based assignment in an
associate's home country.

Development programs
Growing from Within
We have a strong
tradition of growing people
who have demonstrated the
ability to deliver excellent
results in different ways. The
success of The Coca-Cola
Company depends on every
employee in the
organization.

Development programs
Being part of a diverse team
We believe our company should be as diverse
as the markets we serve and as inclusive as
our brands. This diversity allows us to
understand and connect to the needs of our
consumers and our customers everywhere
we operate and to continue to innovate in
everything we do.

At Coca-Cola you have the opportunity to


work on teams with people who have
different backgrounds and ideas and who
work in offices across the globe.

Development programs
One-of-a-kind experience
Coca-Cola expands beyond the limits
of your office. We have aa strong
association of brand to events. Coca-
Cola continues to support events
such as the Olympic Games and the
World Cup. Select positions directly
attend and influence these
happenings making your place in
The Coca-Cola Company fresh and
well-rounded.

Development programs
Organizing
Organizational Structure
Traditional or Inverted Pyramid
Talent Management
Talent Development
Talent Retention
One Company. One Team. One Passion.
One Company
Enjoy an environment where ideas are free to find their way, support is close at hand
and pride inspires us to grow. Each day we're developing meaningful and accelerated
learning opportunities and anticipating the skills and resources we will need to meet
our future demands

Talent Retention
One Team
Our job is to refresh the
world, and it requires the
vision, innovation, and
passion of every single one
of them. Each day the
relationships you build will
help you succeed not only
in your job, but in your
career as well.
Talent Retention
One Passion
We do our best to spread the joy
of The Coca-Cola Company. We
believe in fostering a workplace
that embraces all of our people's
unique abilities. We're committed
to supporting our communities.
And, we're dedicated to
preserving and protecting our
planet.

Talent Retention
Accessibility to more than just a Company
● Brand Activations
● Ambassadorship
● Active "healthy living" activations beyond your job

Talent Retention
Rewarding environment
●Benefits: our total benefits package is highly
regarded and is designed to meet employees'
Elements of our Total Rewards programs:
basic and life-changing benefits needs. As
market dynamics evolve, the Company
● Base salary
regularly assesses our benefits programs to
● Annual incentives
ensure employees receive those benefits they
● Long-term incentives
value and are provided with diverse options
that address the issues of individuals and
families and promote healthy lifestyles.

Talent Retention
Career Areas
- Supply Chain Function -Business Management
- Manufacturing -Finance
- Technical Function -Public Affairs & Communications
- Marketing -Human Resources
- Sales and Account Management -Legal
- Customer & Commercial Leaders -Information Technology
- Aviation -Business/ Administrative Services

Talent Retention
Recruitment Process
Job Analysis and Designing

Job analysis is the procedure for determining the


duties and skill requirements of a job and the kind of
person who should be hired for it. It consists of two
products one is job description and the second id job
specification.
1. Job description: a list of job duties,
responsibilities, reporting relationship,
working conditions, and supervisory
responsibilities.
2. Job specification: a list of a job’s human
requirements that is requisites education,
skills, personality, and other products of job
analysis.
Talent Retention
Recruitment Process
Based on this, Coca-Cola Company’s HR department will be able to assess the performance
standard, human behaviour, and other capabilities of those hiring based on the gauge that the
job description and job specification provides.

Talent Retention
Skills Training: involves soft-
skills such as presentation,
selling, and public speaking.

Technical Training: practical


training

Leadership Training: learning of


skills of future managers

Functional Training: includes


diplomas or degrees in
respective fields

Training Roadmap
Orientation
After hiring the suitable employee
informal orientation is given, there is no such
kind of formal orientation program is
available at Coca Cola. As there is no such
kind of rocket science in this organization, so
they don`t need any formal orientation
program. They verbally tell about the
organization and employee duties and
responsibilities that he or she have to
perform at the job. They also tell the
employees about the do`s and don’ts and
what kind of dress code and behavior is
required at the job.

Training Roadmap
Training & Development
There is formal training and development are given to the employees,
even they provide formal couching train their employees that how to
handle mistakes and solve problems, they provided formal induction
buddy, formal necessary training and necessary rules and regulations
guidelines to their employees. When the manager points out some
mistake of the employee while performing his or her duties, immediately
manager corrects them and guide his or her employee that how he or she
should have to perform the task.

Training Roadmap
Coca cola owns its own training
center for employees. It also owns a
university known is Coca cola
University. Employees are given
change to diversify their skills in this
learning center. Suppose an
employee is masters in Mechanical
engineering, but he is goo in
marketing so CCBPL is having
capability to diversify and enhance
the skills of its employee according
through its learning center in Lahore.

Training Roadmap
Employee Development

Career progression at CCBPL is based on potential. They carefully


analyze abilities through experience, performance ratings,
qualifications and competencies and in of strive for excellence, they
ensure that your potential is put to its best and most efficient use in
our various department

Training Roadmap
LEADING

Leadership and Motivation


Philosophy

Organizational Culture
management
- Type of Corporate Culture
People Motivation Philosophy

Leading for competitive


advantage
- Using Bateman and Snell

Key Success Drivers for


Competitive Advantages

- Value Processes Key


Relationships
Leading
Leadership and Motivation Philosophy
Organizational Culture management
Leading for competitive advantage
Value Processes
Key Relationships
LEADING

Leadership and Motivation


Philosophy

Organizational Culture
management
- Type of Corporate Culture
People Motivation Philosophy

Leading for competitive


advantage
- Using Bateman and Snell

Key Success Drivers for


Competitive Advantages

- Value Processes Key


Relationships
Leading
Leadership and Motivation Philosophy
Organizational Culture management
Leading for competitive advantage
Value Processes
Key Relationships
Leadership and Motivation Philosophy

Leadership Style
Coca-Cola understands that capturing
new opportunities is going to require
both vision and execution across the
company and its wonderful system of
bottling partners. That's where the
company’s vision which they call Vision
2020 comes into play.

It's a look at where the company and its bottling partners need to be heading in
the future. The vision is centered on capturing unprecedented opportunities
emerging in future within the global non-alcoholic beverage industry.
Leadership and Motivation Philosophy

The CEO stated, “my job is to create


a climate of success for our people
and inspire them to achieve the
vision we have created for our
business. That's really the true
essence of leadership”.
-James Quincey
Leadership and Motivation Philosophy
At the end of the day, it all comes down to
execution. For The Coca-Cola Company, execution
involves focusing on three core capabilities of:

 Consumer marketing - which generates that


bond and emotional connection with
consumers.
 Commercial leadership - which involves all the
strategic actions taken with over 20 million
retail customers who sell Coca-Cola brands
around the world each day.
 And franchise leadership - which is working
with its 300 bottling partners around the world
to create greater system alignment (Shetty,
2011).
Leadership and Motivation Philosophy

Management Styles
A management style is an overall
method of leadership used by the
manager. The success that the
management team at Coca-Cola has in
motivating its employees to meet their
objectives is based on the management
style they adopt. There are three main
management styles democratic,
autocratic and the laissez-faire style.

The Coca-Cola Company uses the


following management styles, but each
one in different departments. There are
three main types of management styles
used in businesses:
Leadership and Motivation Philosophy

Autocratic
The authoritarian leadership
style or autocratic leader
keeps strict, close control over
the followers by keeping close
regulation of the policies and
procedures given to the
followers.
On the factory floor at Coca-
Cola, there is an autocratic
system of management
where the employees are
controlled by the managers
and follow their procedures.
Leadership and Motivation Philosophy
Democratic
Democratic style is the management
style that Coca-Cola adopts. In this
management style individuals and
teams are given responsibilities and
decisions to make, usually within a
given framework. If anything wrong
happens then the individuals and
teams are then held responsible for
the decisions that are chosen.

With this type of management style it allows the manager to feel comfortable with other people in
the organization making some of the decisions. This type of management is good as it makes the
employees happy and productivity is high. This is a very good method because employee's
thoughts and suggestions are listened to by the business Feedbacks from managers at Coca-Cola’s
bottling system across the globe provide vital information that is incorporated in their strategies.
Leadership and Motivation Philosophy

Laissez-faire management style

The Coca-Cola Company has a


culture that is run in the laissez-faire
style meaning the ‘hands off’
approach. The laissez faire style is
sometimes described as the "hands
off" leadership style because the
leader delegates tasks to their
followers, while providing little or no
direction to the followers.
Leadership and Motivation Philosophy

Consultative democratic

Coca-Cola applies consultative management


style to the company more as there can be less
conflict for what the final decision is. The
advantage of this is that it helps to motivate
staff as they are aware that they have a say in
the company to some extent. The
disadvantages of this that the process is very
time consuming and effort will be needed by a
manager to do this.
Leadership and Motivation Philosophy
Consultative democratic
The world's premier marketer and beverage industry leader for more than 118 years, Coca-
Cola are focused on the strategic workplace programs that help assure the success of their
commitment to embracing the similarities and differences of the people, cultures and ideas.
The strategies Coca-Cola uses to achieve these objectives include the use of certain
mechanisms that facilitate such communication to take place. These mechanisms include the
use of Diversity Advisory Council and Employee Forums
LEADING

Leadership and Motivation


Philosophy

Organizational Culture
management
- Type of Corporate Culture
People Motivation Philosophy

Leading for competitive


advantage
- Using Bateman and Snell

Key Success Drivers for


Competitive Advantages

- Value Processes Key


Relationships
Leading
Leadership and Motivation Philosophy
Organizational Culture management
Leading for competitive advantage
Value Processes
Key Relationships
Organizational Culture management

Role culture is the culture


that Coca-Cola adopts.

This is where all members have a


defined job or role to carry out.
Role culture is normally split up
into a number of functions that
are organized in a hierarchical
way.
Organizational Culture management

Coca-Cola would divide themselves into


various functions like accounts, marketing
and production. These also have hierarchical
ordering of office examples of these are
production director, production managers,
supervisors, technicians, operatives etc.

This type of culture works by logic and


rationality. Role culture is mainly used in
large organization. In this culture position in
the main source of power and rules and
procedures are the main source of influence.
Organizational Culture management
Organizing is the second management function. The following
steps are taken by the Coca-Cola Company in organizing their
goals and objectives:

Departmentalization

Work Specialization

Delegation and Accountability

Resource Allocation

Organizing the Human Resources


Organizational Culture management

Departmentalization
On the basis of functional
approach the Coca-Cola Company
is divided into different
departments. Grouping of
employees is done on the basis of
their common skills and work
activities. Such kind of approach
helps the company in solving their
problems and it also make the less
the need of training the employees
specially.
Organizational Culture management

Departmentalization
The general manger is head of all the
departments all the department have
to report to the general manager in
the Coca-Cola Company. There are
five major departments in the
company which are as follow:

Production Department
Industrial Relations Department
Sales and Marketing Department
Human Capital Department
Finance Department
Organizational Culture management

Work Specialization

There is a high percentage of work


specialization in the Coca-Cola Company
because every manager is appointed in
the function in which he is expert so
there is no boredom or monotony. All
the promotions of the employees are
based on their performances. No
favoritism is allowed in the company
(The Coca-Cola Company, 2014).
Organizational Culture management

Delegation and Accountability


There is a high percentage of All the subordinates are guided very keenly by their
delegation in the company. The respective managers at the time of accomplishing
work is done with proper authority some goal. Keeping the delegation process on the
and responsibility. Every manager is other side the managers also motivate their
made accountable for the actions subordinates to boost up their energy and make
of his subordinates. them more effective by using different methods.
Organizational Culture management

Resource Allocation
When the issue of resource allocation
comes into action the Coca-Cola
Company has given the authority to
managers to use the resources of the
company where ever and whenever
they are needed. Only they are
required to get the approval from the
manager if those assets belong to his
department. The resources can be
capital, labor, machinery or anything
else (The Coca-Cola Company,
2014).
Organizational Culture management
Organizing the Human Resources
Recruitment is done when the manger needs the
The company does the recruitment process employee under him and he send the request to
when there is a position empty and the the general manager and after the approval of the
recruitment is always done on permanent general manager the request is sent to the Human
basis in Coca-Cola Company. Resource Department.
Organizational Culture management
Organizing the Human Resources

In Coca-Cola firstly all the vacancies are If there are no suitable persons than the
announced within the organization so that if company searches its bank where there are
there is someone who can fulfill the huge amount of application of the applicants.
requirements can get him/herself promoted If there also they find no person suitable for
or can refer someone of his relative to join if the job then at last they give the
he is capable of that job. advertisement in the newspaper etc.
People Motivation Philosophy

Motivation
Coca-Cola Company gives high attention to Beside from promotion strategy the Coca-
the motivation of the employees. Promotions Cola Company also uses the compensation
of hardworking employees are a part of the strategy to motivate the employee; Coca-
company’s policy. Promotions of employees are Cola is paying industrial average in
done on the performance basis which is a great compensation. Not only this different
motivation for the employee that higher his campaigns and competitions between the
performance there is more chance of his employees itself are also used to motivate
promotion. the employees.
People Motivation Philosophy

Motivation
Managers play a very important role in the motivation of the employees in Coca-Cola
Company. They help them in all their problems either they are personnel or professional. They
give them feedback on their performance which makes the employee feel good. Working
environment and a challenging milestone are a major factor in employee motivation in the
company (The Coca-Cola Company, 2014).
People Motivation Philosophy

Communication

There is an open environment


in the Coca-Cola Company
which allows the employees to
communicate with each other
and it allows the information to
flow inside the company and
discourages the barriers
between members to share
information.
People Motivation Philosophy
Communication

Before making the decisions


the top level managers
discuss it with the middle
level managers and before
decision making it is shared
till the end of the hierarchy.
The Coca-Cola Company
allows the employees that
anyone of them can meet
the general manager if
he/she is facing any kind of
difficulty. Interdepartmental communication is done in the form of formal
and informal manners. To get the feedback of the employees and
get the view of the employee about the manager the grapevine is
used.
People Motivation Philosophy

Corporate Culture
The top management of the Coca-Cola tries to follow the prescribed
culture of the organization. Coca-Cola has formal and documented
values that are communicated to all the employees. The top level
manager acts as role models to make sure that the rules and regulations
are been applied in the company and closely administrator review their
employee’s behavior.
Leading
Leadership and Motivation Philosophy
Organizational Culture management
Leading for competitive advantage
Value-Processes-Key Relationships
Leading for competitive advantage

Consumer Marketing
Marketing investments are designed to enhance
consumer awareness of and increase consumer
preference for Coca-Cola brands. This produces long-
term growth in unit case volume, per capita
consumption and the company’s share of worldwide
nonalcoholic beverage sales. Through relationships with
bottling partners and those who sell Coca-Cola products
in the marketplace, the company creates and
implements integrated marketing programs, both
globally and locally, that are designed to heighten
consumer awareness of and product appeal for brands.
Leading for competitive advantage

Commercial Leadership
The Coca-Cola system has millions of customers around the
world who sell or serve their products directly to consumers.
The company focuses on enhancing value for these customers
and providing solutions to grow their beverage businesses.
Coca-Cola’s approach includes understanding each
customer's business and needs, whether that customer is a
sophisticated retailer in a developed market or a kiosk owner
in an emerging market. We focus on ensuring that our
customers have the right product and package offerings and
the right promotional tools to deliver enhanced value to
themselves and the Company.
Leading for competitive advantage
Franchise Leadership
The Coca-Cola Company must continue to
improve its franchise leadership capabilities
to give the company and its bottling partners
the ability to grow together through shared
values, aligned incentives and a sense of
urgency and flexibility that supports
consumers' always changing needs and
tastes. The financial health and success of
bottling partners are critical components of
the Company's success. The company works
with the bottling partners to identify system
requirements that enable them to quickly
achieve scale and efficiencies, and the
company shares best practices throughout
the bottling system.
Leading
Leadership and Motivation Philosophy
Organizational Culture management
Leading for competitive advantage
Value-Processes-Key Relationships
Leading for competitive
advantage
- Using Bateman and Snell

Key Success Drivers for


Competitive Advantages

- Value Processes Key


Relationships
Controlling
Behavioral Control
Performance Management
Quality Control
Controlling
Behavioral Control
Performance Management
Quality Control
Behavioral Control

The Coca-Cola Company is


committed to good corporate
governance, which promotes
the long-term interests of
shareowners, strengthens
Board and management
accountability and helps build
public trust in the Company.

The Board
• Elected by the shareowners to oversee their interests in the long-term health
and overall success of the business
• Serves as the ultimate decision making body of the company, except for those
matters shared with the shareowners
• Selects and oversees the members of the senior management.
Behavioral Control
Corporate Governance Guidelines
• Board Mission and Director
Responsibilities
• Board Leadership
• Director Qualifications
• Director Term and Tenure
• Determination of Independence
• Committees of the Board
• Director access to officers,
employees and information
Behavioral Control
Corporate Governance Guidelines
Board Mission and Director Responsibilities
a. The core responsibility of the Directors is to
exercise their business judgment to act in
what they reasonably believe to be in the
best interests of the Company and its
shareowners.
b. Directors will also, as appropriate, take into
consideration the interests of other
stakeholders, including employees and the
members of communities in which the
Company operates.
c. Directors should devote the time and effort
necessary to fulfill their responsibilities.
Behavioral Control
Corporate Governance Guidelines
Board Leadership
a. If the individual elected as Chairman
of the Board is the Chief Executive
Officer, or if the Chairman of the
Board is not independent, the
Board believes that a Lead
Independent Director should be
appointed to help ensure robust
independent leadership on the
Board.
Behavioral Control
Corporate Governance Guidelines
Director Qualifications
a. Directors may be
nominated by the Board
or by shareowners in
accordance with the By
Laws.
Behavioral Control
Corporate Governance Guidelines
Director Term and Tenure
a. Directors are elected for a term
of one year. Term limits may
cause the loss of experience
and expertise important to the
optimal operation of the
Board.
Behavioral Control
Corporate Governance Guidelines
Determination of Independence
a. To be considered "independent" for
purposes of the Director qualification
standards
i. the Director must meet the bright-line
independence standards under the
NYSE listing standards, and
ii. the Board must affirmatively
determine that the Director otherwise
has no material relationship with the
Company
Behavioral Control
Corporate Governance Guidelines

Committees of the Board


a. Each of the standing
Committees has its own
charter, which sets forth the
responsibilities of the
Committee, the
qualifications and procedures
of the Committee and how
the Committee will report to
the Board.
Behavioral Control
Corporate Governance Guidelines
Director access to officers,
employees and information
a. The Directors should use
their judgment to ensure
that any such contact is
not disruptive to the
business operations of the
Company.
Behavioral Control
Corporate Governance Guidelines
• Director orientation and
continuing education
• Annual performance
evaluation of the chairman of
the board and the chief
executive officer
• Management Succession
• Annual board performance
evaluation
• Director Compensation
• Board Interaction with
outside Interested Parties
Behavioral Control

Coca-cola aims to lead by example and to learn from experience. They set
high standards for their people at all levels and strive to consistently meet
them. Their sound business principles and practices foster our strong,
innovative and collaborative culture, which is committed to ethical behavior,
accountability and transparency.

Creating an Ethical Culture


Behavioral Control
The core of the ethics and compliance program at The
Coca-Cola Company is their Code of Business Conduct.
The Code guides their business conduct, requiring
honesty and integrity in all matters. All of their associates
and directors are required to read and understand the
Code and follow its precepts in the workplace and larger
community.

Ethics & Compliance


Behavioral Control

Acting with Integrity Around the Globe


● This code helps their people do the right
thing and play by the rules wherever they
operate around the world.
● This code is consistent with their Company
Values.

Code of Business Conduct


Controlling
Behavioral Control
Performance Management
Quality Control
Performance Management

Performance Management
Appraisal System
• This is a method of evaluating the
behavior of employees in the work spot,
normally including both the qualitative
and quantitative aspect of job
performance.

• Coca Cola performance management


appraisal is done annually. The company
makes sure that their employees follow
the company’s mission, vision and values,
especially the board members. This
annual assessment focuses more on what
the board could improve on.
Performance Management

Rewards of Coca Cola


• Yearly Basis • Monthly Basis
- Employee salary increment - Initiative
- Grade jump - Monthly turn hall
- Designation change • Quarterly Basis
- Annual Incentive Plan (AIP) - Employee of the quarter
- Personal Progress Report (PPR) - Sales Dangle context
CONTROLLING
Behavioral Control
- Good governance
- Creating an ethical
culture
Performance
Management
- Performance
management appraisal
system
Quality Control
- Quality Management
System
ISO Certifications Controlling
Six Sigma practice Behavioral Control
- Green lifecycle Performance Management
- Eco-label Quality Control
Integrated Management System
Our goal is to provide safe, refreshing
and high-quality beverages to our
consumers all around the world be that is
what they deserve. We follow strict product
and ingredient standard designed to ensure
the safety and quality of our products.

Coca-Cola Operating Requirements


(KORE) promotes the highest standards in
product safety and quality, occupational
safety and health, and environmental
standards across the Coca-Cola system by
outlining clear requirements for the policies,
specifications and programs that guide our
operations. Compliance is monitored
system-wide to further support the integrity
of our products.
Integrated Management System
Coca-Cola Operating Requirements:
• Integrates business and quality objectives
and aligns them with consistent metrics to
monitor performance;
• Integrates preventive action as a
management tool with more rigorous
demands when introducing new products
and services;
• Incorporates Hazard Analysis and Critical
Control Points (HACCP) into our system
standards;
• Manages risk in our Company, bottling
operations and across our supply chain; and
• Defines problem-solving methods and tools
to drive consistent quality with
improvements.
ISO Certifications

• ISO 9001 quality


- This standard is based on a number of quality
management principles including a strong
customer focus, the motivation and
implication of top management, the process
approach and continual improvement. helps
ensure that customers get consistent, good
quality products and services, which in turn
brings many business benefits.

• ISO 14001 environmental


- is intended for use by an organization seeking
to manage its environmental responsibilities
in a systematic manner that contributes to
the environmental pillar of sustainability.
ISO Certifications

• ISO 22000 food safety


- to ensure the safety of the global
food supply chain.

• ISO 26000 guidance on social


responsibility
- provides guidance on how
businesses and organizations can
operate in a socially responsible
way. This means acting in an ethical
and transparent way that
contributes to the health and
welfare of society.
Green Lifecycle

• Focus on life-cycle has helped us


sustain the use of high value
recyclable and reusable materials

• Materials are 100 percent


recyclable

• E3 is a sustainable design effort,


which focuses on improving
efficiency, life-cycle effectiveness
and eco-innovation.
Ultra Glass contour bottle

• Designed to improve impact resistance, and reduce weight and cost.


• 40 percent stronger, 20 percent lighter and 10 percent less expensive
than traditional contour bottles.
• The use of this has eliminated 52,000 metric tons of glass -- resulting
in a CO2 reduction of 26,000 tons or the equivalent of planting 8,000
acres of trees.
More Efficient Packaging
• Continued the innovative lightweighting of our
packaging that has proven to save costs, materials and
resources.

• In 2010 we saved $90 million by reducing packaging


waste

• Here is a snapshot of our efforts from around the world:


- We launched a 10.5-gram Damla 500-ml PET bottle
in Turkey.
- Our operations in the Philippines reduced the use of
glass material by 20 percent through the continued
rollout of Ultra Glass.
- We avoided $5 million in costs by rolling out the
1881 short-height closure on large polyethylene
terephthalate, better known as PET, bottles in North
America..
Behavioral Control

PlantBottle Basics
- PlantBottle packaging uses materials that are up to
30% plants-based. In essence, we are trading fossil
fuels for plant-based material without sacrificing
performance or recyclability.
- At Coca-Cola, sustainable packaging innovation is in
our DNA
Identifying PlantBottle

A PlantBottle PET bottle feels


like traditional PET plastic, it's
the same weight as traditional
PET plastic, it works just like
traditional PET plastic, and it's
recyclable just like traditional
PET plastic -- because it is PET
plastic.
Sustainable Packaging Strategy

Our sustainable packaging


goal is to reduce our
environmental footprint by
reducing our material use,
increasing recycling, using
more recycled and
renewable material in our
packaging, and advancing
innovative technologies.
Findings & Conclusions
Road to 2020

In 2009 The Coca-Cola Company, along with its bottling partners,


outlined their 2020 Vision – a single document that holds a shared
ambition with specific goals for the business through the year 2020.
Global Marketing and Commercial Leadership is responsible for
ensuring the brands are always interesting, viable, relevant and
available in the marketplace to deliver on that Vision. In 2013 Coca-
Cola will use three principles to fuel its growth and deliver on those
stated ambitions: Innovation, Creativity and Focus. We asked Joseph
Tripodi, EVP and Chief Marketing and Commercial Officer to
elaborate on those three principles.

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