The Coca Cola Balance Scorecards

The Coca Cola Company is a company that manufactures its products and the it markets and
distributes the products to its customers The company’s main products are five nonalcoholic sparkling
beverage brands such as soft syrups, carbonates drinks and other brands such as coke. The company was
established in the 1886 by a pharmacist who was known as Mr. John Stitch Penbreston. It has its
headquarters in Atlanta Georgia; the company currently produces over four hundred brands in over 200
countries with a minimum number of 90,500 associates worldwide that serve over 1.5 billions of customers
per day.

The company’s goal is to refresh the world in body, mind and spirit so as to inspire optimism the customers
through selling its products and the creation of actions that create value and make a difference in all their
activities in the company. The management of the company assesses its success by not only counting on its
monetary sales and profits, but also it assesses its success through determining the impact it imposes on its
customers so as to increase its sale volume of its products. The company also publishes its information to
the public so that they can access the information so that they can make informed decision on how well they
can invest in their money into the company in form of shares. The company’s other vision is to create an
environment in which people can be inspired to feel at the right place, to provide the citizens with
opportunities that can make a difference to their lives. The company’s other vision is to provide its
customers with a wide range of products that can satisfy their needs and their desires and is also committed
to maximize the shareholders good returns in form of dividends and to fulfill other responsibilities
company’s objectives and goals so as to ensure its success and also the company also assists the community
so that it can improve their living standards so that they can appreciate their products hence increase the
sales volume of the products of the company.

The management of the company’s strategies are geared towards building on its fundamental strength in
marketing and innovation so as to drive its increased efficiency and effectiveness in interactions with its
system so as to generate new energy through core brands that focus on health and wellness of the customers
so that they can appreciate the products hence result to increased sales volume of the products of the
company. The company has invented an advertising campaign strategy whose objective is to boost the sales
volume of the company’s product that is the “make it real” campaign and also has modeled its product as a
woman’s curves so as to attract customers to the product so as to increase the sales volume of the product
and also to maintain the customers so that they do not seek alternative companies that will meet their needs
and desires.
The senior brand manager initiates and develops strategies and plans that can enhance the brand of the
company’s product so that it can attract as many customers as possible. The senior brand manager develops
the brand vision and strategy that includes the brand destination, positioning, target audience identification
and the development of core strategic imperatives. The marketing operating strategies of the company is
that the company’s management acquires the knowledge and the ability basic marketing operating strategies
through such means as media developing, price strategies, trade or consumer promotions that are used in the
execution of the marketing plans. The other company’s strategy is to ensure that they satisfy the customer’s
needs and desires. It also develops, evaluates and selects consumer-based action that maximizes the long
term profitable volumes of the organization. The company uses the market leader’s strategies so as to
compete effectively with its competitors in the world market where there are other soft drinks and
carbonated drinks that are manufactured by their competitors.
The balance score card is the strategic planning and management system that is used in businesses and
companies to align business activities of a company or a business to its vision and strategy, to improve
internal and external communication and also to monitor the company’s performance against its goals and
objectives. The approach not only provides the performance measurement but it also helps the planners to
identify what should be done and measured so as to enhance effective implementation of the goals and
objectives of an organization. The balance scorecard states that a company is viewed from four perspectives
and it developed using metrics, collects data and analysis the organization or company using the four
perspectives these are learning and growth perspective, business process perspective customer perspective
and the financial perspective.

Business process perspective

The business process perspective is also referred to as the internal business process is used to allow
the managers to know how well their businesses runs and whether its products and services conform to the
customers needs and desires so as to increase the sales volume of the company. There are two kinds of
business process perspective there are the mission-oriented processes and the support processes. The
mission -oriented processes are special function of the government offices and they have many unique
problems that are reported in these systems. The support processes are more repetitive in nature and hence
are easier to measure them than other metrics.

It is a perspective that focuses on the internal operations of an organization that improves the
customer’s perspective by creating value for the customers and in the financial perspective it increases the
shareholders wealth. Its objectives are to improve the manufacturing capability that can maximize on the
shareholders returns so as to ensure that they do not quit using the company’s products, to reduce delivery
time to customer so to refresh the customers in their body ,mind and spirit and to meet the specified
delivery dates required in a company so as to avoid stock outs that lead to the customers . The internal
business process uses the following measures so as to enhance its achievement of its goals and objectives
these are percentage of processes with the advanced controls, order delivery time and the on-time delivery
measures

The management of the Coca cola Company introduces technology into its business so as to improve
on its performances and it also introduces the leadership philosophies whose objective is to develop
technological leaders that can lead the company to the achieve the company’s goals and objectives. The
Coca cola Company’s dedication to providing healthy products through the provision of the additional
budget for the research and development department facilitates the company to produce healthy beverage
lines that are tasty and that are not harmful to the consumer’s health (Chad, T., 2004)”.

The business process measures that are used in evaluating the companies compliance with the
business process perspective are the as the percentage of total hours that is spent in staying in touch with the
customers so as to understand their needs and desires the number of customer initiated product innovation
and the average customer’s idea ramp-time.

Customer perspective

The customer perspective is that a perspective whose objective is to satisfy the customers and it is
used to focus on their needs and desires so as to increase the sales volume of the company. If customers are
not satisfied they will eventually find other suppliers that will in one way or another meet their need hence
its importance for the management of companies to focus on how to satisfy their needs and desires. When
developing the metrics that can satisfy the customers the management of the Coca cola company should
analyze all kinds of customers and the kinds of processes that provide a product or service to the customer
groups so as to maintain the customers and also to increase the sales volume of the company. The customer
perspective is a perspective that identifies the targeted market segment and then measures the company’s
success in terms of these segments. The objectives of this perspective are to increase the market share and to
increase customer satisfaction. The customers are very important in an organization without them the
operations of a company cannot go ahead because they are the final consumers of the produced goods and
services thus it is important for the management of companies to handle them with care. The Coca Cola
Company can fulfill its mission – vision through its strategies of how to handle its existing and potential
customers using the following objectives, it can satisfy the customers by producing products that gratify its
high quality products, introduce of products that are healthier to them and hence improve on their living
standards. The management of the Coca cola Company can produce healthy beverage lines that are tasty are
not damaging to the health of the customers so as to increase the sales volume of the product in the
company. There have been increased cases of obesity and other health problems that have led to illnesses to
the residents of the country thus the management of the company introduction of the products that have taste
diversity and fortification that makes the customers healthier can be a good objective that can lead to the
success of the company. The mission of the customer perspective for the employees of the company is to
perform whatever they are expected to do and to do it well so as to lead to the achievement of the
company’s goals and the objectives. The vision of the customers perspective is to refresh the customers in
body, mid and spirit through highly driven sales.

Financial perspective

The financial perspective states that it is important for managers to provide financial data that is
timely and accurate so as to enhance the operations of an organization or a company to be carried out
effectively. The management of company should not only handle and process financial data but it should
also implement a corporate database that can enhance processing of data to be in a central and automated
place so as to enhance successful implementation of the company’s goal and objectives. The inclusion of
the financial-related data such as the risk assessment data and cost-benefit data into a company can provide
better results hence lead to the achievement of the company’s goals and objectives. The Coca Cola Company
used the financial statement and its relations to analyze and to evaluate the company’s performance. The
goal of these rules is to increase the comparability in accounting for the business transactions that are similar
and also to improve the transparency of information reported by accountants to the public.

The financial perspective is a perspective that indicates how the transformation of strategy can lead
to the economic success of a company. It defines how the financial performance can be achieved using a
strategy that has the following elements such as revenue growth, reduction of cost and wastes and it also
measures the effectiveness of other perspectives that are related to a company . The company’s intangibles
value and brand they indicate the gap that exists between a company’s book value and its stock market
valuation from the financial perspective of a company. In Coca cola company its brand accounts for more
than 45% of the company’s market capitalization (Mark, P, 2000),

The companies brand provides the financial value because the management of the company ensures
that it produces products that deliver on its product quality, corporate efficiency and service so that it can
achieve its goals and objectives. The Coca Cola Company developed the Value Based Management (VBM)
principle and the Economic Value Added metrics that are used to evaluate the performance of the company.
The economic value added financial metric is used to evaluate the business strategies, capital projects and it
is used to maximize the long term shareholder wealth. The value that has been created or destroyed by the
firm during a given period of time can be measured by comparing profits with the cost of capital that are
used to produce them. The value based management is an approach that ensures that the corporations run
effectively so as to maximize the shareholders value. It also involves the creation of value that is intended to
increase or to generate maximum future value and strategy it also involves managing the value change such
as governance, change management organizational culture, communication, leadership and valuation that
refers to the measurement of value. The value of a company is determined by its discounted cash flows, the
value is created when companies invest capital returns that exceed the cost of that capital. The value added
management extends these concepts by focusing on how companies can use them to make both the strategic
and the everyday operating decisions. The financial perspective evaluates the profitability of organization
strategies; the other strategies are the Naches key strategic initiatives that reduce cost relative to the
competition and growth. It also focuses on how much operating income and the return on capital is
employed on the results due to the fact of reducing costs and selling of more units to the customers.

The management of the Coca cola introduction of its process and product management led to its
growth and development. The company’s financial information includes annual and quarterly financial
information, market data and comparison data. The income from the historical financials includes revenue,
net income, net profit and the number of employees who have served in the company in more than ten years.
The financial measuring tools such as the return on investment (ROI) Residual income (RIS and the
Earnings per share (EPS) are the metrics that are used to account for the costs that are associated with capital
and it helps company to identify areas in the organization that are not profitable (Dean, F., and Gerry d
Khermouch G. 2001)”.

The learning and growth perspective

The Learning and growth perspective states that employee training and the corporate cultural
attitudes are related to the individual and corporate self-improvement. The introduction of technological
change has enabled the management of companies to keep on training its workers so that they can be able to
adapt with the technological changes in an organization and hence enable the management of company to
improve on its performance. The objectives of this perspective are to develop process skills, empower the
workforce and enhance information systems capabilities. The chief executive officer of the Coca cola
Company stated that it was important for the company to attract and retain the best employees who would
improve the performance of the company thus it trained it employees on methods of handling the customers
so as to increase the sales volume of the company. It utilizes the following measures so as to achieve its
goals and objectives these are the percentage of the employees that are trained in the process and the quality
management of the employees that is enforced on them, percentage of front-line workers that are empowered
to manage the process and the percentage of the manufacturing processes that are related to the real-time
feedback (Dean, F. and Rubin, D. 2000)”.

The Learning and growth perspective measures that are used in the Coca Cola company are some
amount of money is spent on training the customer segments so as to ensure they attain the necessary skills
and knowledge to carry out their activities and it also has measures that enable the well-educated managers
to provide a state of art that can advice customers on the number of the issues that can increase the sales
volume of the company. The customer solution team motivates the Coca cola Company so as to collaborate
with its customer’s needs and the number of technologies that inspires the Coca Cola Company to say
abreast with the technological threats and opportunities that alter the competitive landscape in the future.
The learning and growth perspective target and actual initiative that lead to good performance of an
organization these are employee training program that is target 90% while actual is 92% supervisors act as
coachers rather than decision makers target 85% actual 90% and improvement of the off-line data gathering
that is target 80% and actual data as 80%.

The performance metrics and target as well as the innovative means and the relations to the
company’s strategy mission and vision that bring to the world a wide range of beverage brands that
anticipate and satisfy the people’s desires and needs, increase of the worldwide sales and profits obtaining of
the overall positive reputation worldwide. International achievement popular and excellent company name
so as to increase the sales volume of the company’s product (Betsy M., 2000).

The Coca-Cola Company’s long term financial growth rate objectives is to have a volume growth of
3% to 4% operating income growth of 6% to 8% and earnings per share growth in the high single-digit. The
management of the company initiated permanent step that would improve the performance of the company
these were annual marketing and innovation investments of $350-$400 million as at January 2005.

The company revised annual volume target is 3% to 4% growth over time (Alan, C. (1999).

The company uses the economic value added (EVA) and the economic profits viewpoint so as to
make sure it makes sound decisions from the financial and the shareholder value perspective. They are both
closely linked and they serve as decision making shareowner value in their decision making processes. The
economic value added is the change in economic profit of a company from one year to another while the
economic profit is the net operating profit after taxes mines a change for the operating capital.

The Customer Respect Index (CRI) is a measure that is used by companies to measure the analysis of
corporate performance from the online customer’s perspective and it focuses on how the corporations treat
their customers while they are using the internet. The customer Respect index it is a qualitative and a
quantitative in-depth analysis and independent measure of the customers experience in the internet while
interacting with the companies through the internet.

The Coca-Cola company growth targets are too aggressive for its product. The current price of its
product is $46.96 and a 12 month target price of $41.33 that is abased on its PEG valuation. The company
has not been in a position to reach conservation growth rates over the last few years. The company develops
its brand strategy by investing heavily in packaging research, developing targeted consumer advertisement,
promotions and it solicitites in customer feedback. The company acquisition of the HP Merary and Knight
Bridge helps customers better manage and transform their activities and adapt to their technology
environment (Chad, T. 2004)”

The Coca Coal company through its officers in Japan it implemented the channel stuffing that was
also known as the gallon pushing whose objective was to enhance the purchase of concentrate that would be
used to enhance the generation of more revenue to meet both annual business plan and earnings targets.The
business process perspective strategy is to create and to apply technology so as to enhance competitiveness
in the industry and other business sectors so as to increase the welfare of the society.

The measurement systems that are used for measuring the learning and growth perspective are
human resource accounting, economic value added, balance scorecard and intellectual capital. These are
used by the management of the company to achieve the objective of the learning and growth perspective of
satisfying the customers so as to increase the sales volume of the company. The coca cola company adopted
the economic value added measure so as to deal with the cost of capital and they focused on the effective use
of the assets and continuous value creation that would enhance good performance of the company.

Coca-Cola balanced Scorecard

Mission –To refresh the world in body, mind and spirit

-to inspire moments of optimism through the brands and action

-to create value and make a difference everywhere in the world

Vision –

Profit -to maximize return to the shareholders while being mindful of the overall
responsibilities

People –to provide a great place for work where people are inspired to be the best
they can be

Portfolios –to bring to the world a portfolio of beverage brand that anticipate
and satisfy the people’s desires and needs

Partners – to nurture a winning network of partners and to build a mutual

loyalty

Planet- to build responsible global citizen that make a difference

Operating efficiency
Objectives
Measures
Targets
Initiatives
Financial
Profitability

Economic value profit

Economic value added
3%-5% overtime
Focused on initiatives that protect the environment

customer perspective

Management experience in designing and implementing processes that enhance customers requirements
Customer Respect Index
6%
Companies branded initiatives at retail and a research initiatives that would bring about the coke and retail
partners to better understand the customers that
Internal business processes
Implementation of business technology whose aim is to select and to justify the companies investment in
technology
Transformer used to change information technology to business technology
19% operating growth

Learning and growth perspective

Company’s objective is to provide the customers with opportunities that can satisfy their and maximize
customer satisfy
Human resources accounting

Economic value added

Balanced scorecard

Intellectual capital
20% operating growth

References:

Coca Cola Co · 8-K · For 11/11/04 · EX-99.1

Media Relations Department

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Retailer’s priority for new Revlon team. . – News – Coca-Cola Co. Atlanta, Georgia#
BNET Business Network:

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The Governing Corporate Objective Shareholders versus Stakeholders

McTaggart, J. M.

Peter W. Kontes, Officer

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