DEPARTMENT OF MANAGEMENT

Group Assignment
CA 02
Subject Details
Subject Organization Theory
Subject Code MGT 2303

Student Details
Student Name Student Number Signature
1 M.A.S. Vimansanee (Grp leader) 6982 Suraksha

2 H.A.S.W. Jayarathna 6930 Wathsala

3 W.D.A.S. Kumara 7126 Supun
4 H.L. Danushka 7162 Lakshan
5 W.M.N. Karunanayake 7040 Madhubasha
6 H.K.G.D.T. Thilakarathne 7153 Dilmi

7 M. Afshan 7052 Kevin

8 S.S.Y. Kumara 7177 Sahan

9 H.P.D.A.S. Panadura 6946 Akila

Word count 2817

Due date / Time 2022/07/15 - 23:59

Individual Declaration

We (Group) certify that the content of the above assignment is one of our original work and not copied from any of
the published or internet-based documents. Without references We have not used any of the other person’s original
work or ideas. So, the report or the work We have done is free of plagiarism.

Group leader’s Signature Suraksha Date 2022/07/08

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Table of Contents
INTRODUCTION OF ORGANIZATION. .............................................................................................. 3
COCACOLA ........................................................................................................................................... 3
1. FIND OUT THE STRUCTURE OF AN ORGANIZATION. .......................................................... 4
ORGANIZATIONAL STRUCTURE OF COCA-COLA ................................................................... 4
2. ANALYZE THE CHALLENGES THAT THE COMPANY FACED DURING ITS LIFE
CYCLE STAGES? ...................................................................................................................................... 4
PRODUCT LIFE CYCLE ..................................................................................................................... 4
CHALLENGES ....................................................................................................................................... 7
❖ Sugar Challenge .......................................................................................................................... 7
❖ The Pepsi Challenges .................................................................................................................. 7
❖ The Bottle Challenges ................................................................................................................. 7
❖ The Cocaine Challenges.............................................................................................................. 8
❖ The Diet Challenges. ................................................................................................................... 8
3. BRIEFLY LIST OUT THE SOLUTIONS OR ACTIONS THAT THE COMPANY TAKEN
TO FACE THE CHALLENGES. .............................................................................................................. 9
❖ SOLUTIONS FOR SUGAR CHALLENGE ................................................................................ 9
❖ SOLUTIONS OF ‘PEPSI’ CHALLENGE ................................................................................... 9
❖ SOLUTIONS OF ‘BOTTLE’ CHALLENGE ............................................................................ 10
❖ COCAINE CHALLENGE ........................................................................................................... 11
❖ DIET CHALLENGE .................................................................................................................... 11

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INTRODUCTION OF ORGANIZATION.
COCACOLA
One of the most well-known and powerful brands in the beverage sector is Coca-Cola. Doctor
John Pemberton, a pharmacist, founded the business in 1886 in Atlanta, Georgia, in the United
States. Since then, the brand has established itself as a staple beverage in more than 200 nations.
About 78 percent of all Coca-Cola Company sales in 2008 were made up of carbonated
beverages, making it the company's single largest product category. Over 3000 beverage items
and 500 brands, including Coca-Cola and Diet Coke, are offered by the corporation.

The Coca-Cola Company is a global American beverage company best known for creating
Coca Cola. John Stith Pemberton, a pharmacist, created the sweet beverage in 1886. Other non-
alcoholic beverage concentrates and syrups, as well as alcoholic beverages, are also produced,
sold, and marketed by The Coca-Cola Company. The stock of the corporation is traded on the
NYSE and is represented in the DJIA, S&P 500, and S&P 100 indexes.

When it was first created, the product contained caffeine from kola nuts and cocaine from coca
leaves, which together had stimulating properties. Coca-Cola was advertised as a "healthy tonic"
thanks to the coca and kola that gave rise to the brand name. Asa Griggs Candler purchased the
recipe and brand in 1889 for $2,300 (approximately $71,000 in 2022), and in 1892 he established
the Coca-Cola Company in Atlanta. Since 1889, the business has run a franchised distribution
network. The company primarily makes syrup concentrate, which is then distributed to numerous
bottlers with unique markets throughout the world. Coca-Cola Refreshments, the company's
primary bottler in North America, is owned by it.

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1. FIND OUT THE STRUCTURE OF AN ORGANIZATION.
ORGANIZATIONAL STRUCTURE OF COCA-COLA
The organizational structure of The Coca-Cola Company is a matrix containing geographical
divisions, product divisions, business-type units, and functional groupings.

Six business segments make up Coca-total Cola's business, four of which are regional divisions
for the company's acquired brands and bottling facilities. To avoid resource duplication and
accelerate the introduction of new goods, the company launched 9 new business units in 2021.

Approximately 200 brands are managed by Coca-Cola through product-based divisions; various
functional groupings assist business operations across multiple departments.

2. ANALYZE THE CHALLENGES THAT THE COMPANY FACED

DURING ITS LIFE CYCLE STAGES?
PRODUCT LIFE CYCLE
The Product Life Cycle (PLC) is described by 12 Manage as the phases that a specific product
goes through during development. Effective entrepreneurial strategies must be used by a
company if it is to prosper in a setting with high levels of competition. Innovation and invention
are two crucial tactics that a company's management team can implement.

The net outcome is that the company can develop a highly competitive strategy in comparison to
its rivals. The Coca-Cola Company has successfully adopted the idea of product innovation into
its operations. As a result, the company has launched a number of categories. Carbonates, fruit
juices, bottled water, functional beverages, and Ready-To-Drink (RTD) tea and coffee are some
of these. These goods are offered for sale under a variety of brand names (Spelman Research,
2003, p.7). It is crucial that the management team of the company take into account PLC in order
for these items to be successful on the market. PLC has four stages, including

• Introduction stage
• Growth stage
• Maturity stage
• Decline stage

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The biological life cycle serves as the foundation for the PLC idea. PLC has grown to be crucial
to business operations throughout time. This is due to the fact that businesses are adopting
product development more frequently in order to achieve their goal of profit maximization. As a
result, the management teams of the company are committed to making sure that this goal is
accomplished inside the PLC. This demonstrates that in order to develop and carry out a variety
of marketing strategies, the firm's management teams must take the idea of PLC into account.

➢ Introduction Stage
After a product has been successfully developed, it must be introduced to its particular target
market. This facilitates the target market's access to the goods. This is the company's initial effort
to make sure that the product is sufficiently known in the market. Costly expenses are incurred
during the introduction stage. For instance, the effectiveness with which the company tested the
market determines the successful release of a product.

The necessity for market awareness creation through promotion would also raise the price of
bringing the product to the market. The firm's ratio of promotion expenses to revenues is
currently exceptionally high. The requirement to find an efficient distribution route further raises
the costs at this point.

Coca-Cola Company launched Bubble Buzz, a tea beverage, to compete with businesses making
a variety of practical goods. A shift in consumer preferences for soft drinks prompted the need to
produce the new product. Consumer consumption habits are changing, claim Afsha, Chin-Yun,
Audrey, and Nicolas (2006, p. 6). Consumers do not now favor carbonated beverages. The item
was created precisely to satisfy the clients' hydration, nutritional, and physiological needs. The
requirement for the company to make an immediate profit, according to Marketing Teacher, is
not a major factor at this point. As a result, the market size and growth are very small at the
debut period.

➢ Growth Stage

The product has already made its way into the market at this point. As a result of the company's
rapid sales expansion, profit levels have improved. Additionally, corporations achieve economies
of scale during this stage, allowing them to build their pricing competitive advantage. At this
point, the competition becomes fiercer. This results from the fact that a great deal of prospective

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investors is drawn to enter the sector. As a result, it is crucial for businesses to implement brand-
building tactics. One of the tactics has to do with marketing communication tactics.

This is achieved through increasing the company's dedication to its marketing strategy, which
enables the product to endure in the market. The company's market share is also beginning to
stabilize at this point. The Coca-Cola Company has seen a comparatively high level of market
share while promoting its Bubble Buzz product inside the RTD tea segment. The market saw the
fastest growth by 2003. Spelman Research reports that the market for RTD tea has grown by 6%
year (2003, p. 3). For the past five years, this growth has been steady.

➢ Maturity Stage

All items share the same stage of maturity. The level of competition among competing
companies is fairly strong at this point. This is a result of the competition among businesses to
hold onto market share. Additionally, during this period, businesses make the most money.
However, until they settle, sales growth is slow.

➢ Decline Stage

At this point, the product's market shrinks, causing the industry's profit margin to decline. A
change in consumer tastes and preferences or the entry of new, more inventive products could be
the cause of the decrease.

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CHALLENGES
o The Sugar challenges
o The Pepsi challenges.
o The bottle challenges
o The cocaine challenges
o The diet challenges

❖ Sugar Challenge
Sweetened drinks have transforming to the main source of calories in the people daily diet. There
are many results show that taking in excessive sugar will put you in the situation of obesity than
consuming fat is. Also, the disease like diabetes, heart problems or cancer have also been found
that were linked to the high increase in sugar consumption around the whole world. For Coca-
Cola Company to overcome this kind of problem, it can work on by using the following steps
which are no sugar availability, position of product, smaller size of packing and shopper
communication.

❖ The Pepsi Challenges

The non-alcoholic beverage industry is one of the fastest growing industries of this decade and it
becomes more competitive compared to other industry. Undoubtedly, Pepsi is the primary
competitor of Coca-Cola Company in the market. This will affect the profitability of Coca-Cola
because it had to share the market with other competitors. Moreover, Coca-Cola used centralized
structure, which means that the process of making decision will be long and complicated as well.

❖ The Bottle Challenges

As we know, plastic pollution is one of the biggest environmental concerns. In the world we live
in, it seems that there is inevitably a large amount of plastic waste but helping to solve the
problem of plastic pollution can be done by understanding the dangers of plastic pollution and
taking measures to reduce waste. As the population grows, the amount of waste within world
will increase, and disposable plastic products accumulate over time such as water bottles and
soda cans. Aggregating plastics cannot only pollute the environment but also plants, animals, or
humans. Food and beverage packaging are important in our modern lifestyle because we used a

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lot of and different types F&B packages. However, the world's waste issues, and plastic pollution
have become progressively important social and environmental issues.

❖ The Cocaine Challenges.

Cocaine was considered as the world’s newest wonder drug, a cure for almost everything before
the 20th century. Sigmund Freud was a biggest supporter of it who wrote an article entitled Uber
Coca, “a song of praise to this magical substance.” Fortunately, four years after making the
bottler deal, Coca-Coca removed cocaine from the formula, substituting caffeine instead.

❖ The Diet Challenges.

Diet-Rite cola hit the market. But Coca-Cola reacted quickly this time. The following year, the
company launched Tab. Pepsi responded with Diet Pepsi. Tab versus Diet Pepsi. You might
think a line extension of a famous name (Pepsi-Cola) would outsell a new name with little or no
meaning. Not so. The Coca-Cola introduced Diet Coke; Tab was outselling Diet Pepsi by 23
percent after 18 years later. So then why would Coca-Cola introduce Diet Coke when it already
had the leading diet-cola brand? Diet Coke could be one of its best-ever decisions.

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3. BRIEFLY LIST OUT THE SOLUTIONS OR ACTIONS THAT THE
COMPANY TAKEN TO FACE THE CHALLENGES.

❖ SOLUTIONS FOR SUGAR CHALLENGE.

When the company faces the sugar challenge, they have introduced new products to the market.
The Coca-Cola Company makes coke with high sugar levels. Today they have identified that
problem. If so, they have launched the new coke with low sugar levels. That drink is specially
made for diabetic people. If so, today any people can drink coke beverages. Because They
provide cokes with low sugar levels and high sugar levels. If so, Any patients and healthy people
can use Coca-Cola drinks and have high trustworthiness about the Coca-Cola company among
all people in the world.

❖ SOLUTIONS OF ‘PEPSI’ CHALLENGE.

Competitiveness has become a challenge in analyzing market opportunities. (Non-alcoholic
beverage industry is highly competitive) the non-alcoholic beverage industry is one of the fastest
growing industries of this decade and is more competitive compared to other industries. “Pepsi”
is undoubtedly the main competitor of Coca Cola Company in the market. This will affect Coca
- Cola's profitability as it will have to share the market with other competitors. Moreover, Coca-
Cola uses a centralized structure, which means that the decision-making process will be lengthy
and complicated. This is certainly a challenge. To solve this problem, Coca-Cola has adopted a
different structure, such as the decentralized structure. In addition, Coca - Cola Company can
give power to each department and allow them to make their own decision according to the
demands of the customers. Product diversity is also an important thing for Coca - Cola to work
on. With a variety of product lines, Coca-Cola is able to cater to all kinds of preferences of every
customer. A company's brand name is also an essential aspect that should be given special
consideration so that the reputation of the Coca-Cola Company is well known to all. Plastic
Bottle Waste As we know plastic pollution is one of the biggest environmental problems. The
world we live in definitely seems to have a lot of plastic waste, but we can help solve the
problem of plastic pollution by understanding the dangers of plastic pollution and taking steps to
reduce waste. As the population increases, the amount of waste in the world increases, and

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disposable plastic products such as water bottles and soda cans accumulate over time. Collecting
plastic can not only pollute the environment but also plants, animals or humans. Food and
beverage packaging is important in our modern lifestyle because we used different types of F &
B packages. However, the world's waste problems and plastic pollution have steadily become
important social and environmental problems. Plastic packaging also contributes to today's waste
challenge. Several companies with popular products have a responsibility to help address this
shortcoming. To solve this problem, the Coca-Cola Company can invest in packaging innovation
that will help reduce the packaging waste problem in the world.

❖ SOLUTIONS OF ‘BOTTLE’ CHALLENGE.

About Zero Waste World In 2018, The Coca-Cola Company announced a new vision of "No
waste of the world" by 2030 by collecting and recycling every bottle or container of its products
and increasing the number of recycled materials used in most bottles or cans. Usually 50%; and
by 2025 all packaging will be 100% recyclable and the average recovery of PET bottles is 50%.
To help improve recycling, Coca-Cola redesigned and rethought its packaging and motivated
consumers by streamlining recycling ecosystems and identifying potential products that could be
created. Designing packages to reduce the number of raw materials used and incorporating
recycled and renewable content in bottles to bring a circular economy to packaging is an
essential part of doing business the right way.

Water scarcity and poor quality water are a challenge for Coca-Cola. For example, the World
Bank estimates that India will run out of water supplies by 2050 without any technological
advances or further discoveries. Since 2007, the Coca-Cola Company has been running 24
bottling plants in India, which has been one of the reasons for the water shortage. With India's
water problem already scarce, residents and regulators in India began to oppose Coca-Cola's
operation of bottling plants. This open opposition harms the reputation of the Coca-Cola
Company; the solution for the Coca-Cola Company is to conduct research on a system-wide
water stewardship platform to achieve water neutrality to solve the problems of water scarcity
and poor quality. By 2020, the amount of water returned to nature and communities will equal
the amount of water used for all production and manufacturing. By using this strategy, it can help
to improve the efficiency of production to eliminate the problem of waste water and reuse of
water waste in boilers, chillers and evaporators. The Coca-Cola Company can collaborate with

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governments and non-governmental organizations to finance the construction of water treatment
facilities, construction of dams, and water restoration. This means that much or none of the water
consumed in the production process returns an equivalent amount of available water to the
environment.

The Coca-Cola Company uses paper plastic cups for vendor machines. Because most people
drink Coca-Cola in outdoor places. If so, they have decided to introduce paper plastic to
minimize the usage of plastic bottles. When people use paper plastic cups, they can minimize the
usage of coke small plastic bottles. Coca-Cola mostly uses this method in highly crowded places.
Such as exhibitions, Olympics, music festivals, and other many places. When the company uses
this method, they have can be minimized environmental pollution and contribute to the
sustainability of the world.

❖ COCAINE CHALLENGE.
Around the 1960s, Coca-Cola developed a problem with the cocaine drug. Before the 20th
century, cocaine was considered a miracle drug used for almost everything. At the same time as
this period there was an international drug crackdown on the drug cocaine, so they recognized
that there could be a big threat against the Coca-Cola Company. Later, as an answer to this, the
Coca-Cola Company bought coca leaves and extracted cocaine from the leaves and used the
remaining extract as a sweetener. But later the cocaine was removed from the secret formula of
the Coca-Cola Company, and then the caffeine formulation was used, with became very popular.

❖ DIET CHALLENGE.
There were many competing companies with the Coca-Cola Company, and through that
company, competitive products were released to the market and with the aim of giving good
competition to them, the Coca-Cola Company also launched the product. Among the carbonate
soft drink (CSD) companies at the time, Coca-Cola‟s competitors were Pepsi and RC cola. Diet
right cola product release by RC Cola Company came into the market, to which Coca Cola
Company as a quick response introduced the TAB product in the market. One year later, Pepsi
responded by launching a product called Pepsi Diet. It was very competitive products like TAB
vs Diet Pepsi. 18 years later, Coca-Cola introduced a product called Diet Coke to the market,
which sold 23 percent more than the TAB and Diet Pepsi. This decision is the best decision taken
by Coke Company.

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THANK YOU.

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