DEPARTMENT OF MANAGEMENT

Group Assignment
CA 02
Subject Details
Subject Organization Theory

Subject Code MGT 2303

Student Details
Student Name Student Cntribution Signature
Number
1. H.M.T.Pushpamali 6943 100% Thilini
2. I. M. A. Damitha Abesingha 2228 100% Amali
3. W.H.M.K.I.S.Bandara 7146 100% Kalani
4. D. W. N. Kuruppu 6954 100% Wathsala
5. A.Tharshalini 7013 100% Tharshalini
6. M.R.S.K.Madhurasinghe 7076 100% Saduni
7. H.M.N.Thathsarani 7140 100% Thathsarani
8. V.N.Perera 7174 100% Venushika
9. G.A.M.Sandaruwan 7031 0% Sandaruwan
10. H.D.T.V.Madhubashini 7091 0% Tashini
Word count

Due date / Time 2022.07.17 at 23.59

Group 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 Watsala Date 2022.07.14
Signature

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Table of Contents
1 Introduction..................................................................................................... 3
2 Structures of Coca Cola Company in life cycle ............................................. 4
3 Challenges and solutions for challenges that the company faced during
Entrepreneurial stage............................................................................................. 5
4 Challenges and solutions for challenges that the company faced during
collectivity stage ................................................................................................... 7
5 Challenges and solutions for challenges that the company faced during
formalization stage .............................................................................................. 10
6 Challenges and solutions for challenges that the company faced during
elaboration stage ................................................................................................. 12
7 Conclusion .................................................................................................... 13
8 References ..................................................................................................... 14

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 1 Introduction
The coca cola company is one of the most famous multinational beverage companies in
America. Pharmactist john stith Pemberton discovered the sugary drinki in 1886, and
Pemberton’s bookkeeper, frank M. robinson, is credited with naming the product and creating
the brand. American businessman asa griggs candler bought the coca cola formula and brand
and founded the coca cola company in atlanta in 1892. The coca cola trademark was filed and
settled in the united states patent office in 1893. At present, this company manufactures and
sells syrups from and manufactures and sells other soft drinks. With more than 2800 products
in more than 200 countries, coca cola is the world’s largest producer and distributor of
beverages and one of the largest corporations in the united states. The coca cola company’s
mission statement is to inspire the world, create value and change, inspire moments of
optimism and happiness. And the company’s vision is to bring to the world a range of quality
beverages that satisfy and satisfy people’s desires and needs. Nurture a network of customers
and suppliers in withdraw, who together create mutual lasting value. To be a responsible citizen
who makes a difference by building and supporting sustainable communities, to maximize
long-term return to shareholders while taking care of their overall responsibilities, to be a
highly productive, lean and fast-moving organization. Presented as.
The product life cycle of the coca cola business consists of four stages. These include induction,
growth, maturation, and degeneration. When dealing with these, the coca cola company faced
various challenges and influences. Because there was a change in the demands of consumers
for soft drinks, coca cola company introduced company introduced Bubble Buzz, a tea product.
nowadays, people do not like organic drinks much. Another challenge for the coca cola
company is that due to the increase in competitors in the non-alcoholic industry, the company
needs more innovation to beat its rivals. Another challenge in people’s eating habits. Since the
maximum consumption of coca cola was harmful to the body of the consumers, a new sugar
alternative with less sugar and less calories was explored and brought to the market to put the
consumers first. For example coca cola zero sugar is one of the sugar free drinks launched coca
cola company. In this way, the coca cola company had to face various challenges and pressures.
They found solutions to all the challenges and influences and coped well with them and
continued to work well.

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 2 Structures of Coca Cola Company in life cycle
There are four stages of coca cola company in life cycle. Which are ,
1 Entrepreneurial Stage
The first stage in the growth cycle is the creativity stage.which includes the birth of the
organization. Entrepreneurs develop the skills to innovative and introduce new products for
new market niches. Leading occurs by trila and errors.

2 Collectivity Stage
If the leadership crisis is resolved, strong leadership is obtained and the organization begins to
develop clear goals and directions. Departments are established along with a hierarchy of
authority, job assignments and a beginning devision of labor.

3 Formalization Stage
It involves the installation and use of rules procedures and contri system. Communication is
less firquent and more formal.top management become concerned with issues such as
starategies and planning and leaves the operations of the middle management.

4 Eloboration Stage
The solution to the red tape crisis is a new sense of collaboration and teamwork.throught the
organization managers develop skills for confronting problems and working together.

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 3 Challenges and solutions for challenges that the company faced
during Entrepreneurial stage
Over the years, Coca-Cola faced a number of challenges, including its latest challenge, "Sugar."
According to Advertising Age, sugar is “Public Enemy No. 1. It is blamed for obesity and is
also called toxic. A new book says it's addictive. Meanwhile, Coca-Cola tackled several other
challenges in its entrepreneurial phase.
1 Pharmacological challenge.
The first label for the new Coca-Cola syrup stated in part: “This intellectual beverage and
temperance drink contains the valuable tonic and nervine properties of the coca plant and kola
fruit. A valuable brain tonic and a cure for all nervous diseases: sick headache, nervousness,
hysteria, melancholy, etc.
Nine years after its launch, Frank Robinson, the man who came up with the Coca-Cola name
and Spencerian-script trademark, had a brilliant insight.
New Slogan:
"Drink Coca-Cola. Delicious and refreshing."
2 Fountain Challenge.
Four years later, two Chattanooga lawyers showed up in the office of Asa Candler, who had
taken control of the company from founder John Pemberton. They wanted to buy the exclusive
rights to bottle the drink. Candler sold it to them. For the sum of one dollar.
The two lawyers divided the country between them and eagerly recruited talented people to set
up Coca-Cola bottling companies.
Twenty-nine years later, there were 1,263 bottlers nationwide, the year Coca-Cola outsold
bottled fountains for the first time.
Without this bottling chain, Coca-Cola would not have become the powerful brand it is today.
3 The Cocaine Challenge.
Before the turn of the 20th century, cocaine was touted as the world's latest wonder drug, a
cure-all for almost everything. One of its biggest proponents was Sigmund Freud, who wrote
an article titled Über Coca, "an eulogy for this magical substance."
Fortunately, Coca-Cola's wiser bosses prevailed, and four years after the bottling deal, Coca-
Cola dropped cocaine from the formula, replacing it with caffeine.
4 The bottle challenge.
With hundreds of bottlers selling Coca-Cola across the country, there was no uniformity in the
product's appearance. There were many different bottle designs.
So the Coca-Cola Company held a competition to create a bottle that could be recognized in

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the dark. Conqueror produced the world's most famous package design, the contour bottle.
Even today, its iconic bottle is one of Coke's best attributes.
5 Pepsi Challenge.
There was one problem with the contoured bottle: It only held 6.5 ounces. But as strange as it
may seem, it took Pepsi-Cola 23 years to exploit this weakness.
“Pepsi-Cola hits the spot. A full twelve ounces, that's a lot. Double for a nickel. Pepsi-Cola is
your drink. (The 1939 radio jingle greatly increased Pepsi sales.)
As the years passed, Coca-Cola's market share slowly eroded. But it took Coke 16 years to
respond to Pepsi's challenge by introducing larger bottles, and another five years to introduce
12 oz. Can, today's leading cola package.
6 Food challenge.
Two years later, Diet-Rite Cola hit the market. But this time, Coca-Cola responded quickly.
The following year, the company launched the Tab.
A year later, Pepsi responded with Diet Pepsi.
Tab vs. Diet Pepsi. You might think that a line extension of a well-known name (Pepsi-Cola)
beats a new name that has little or no meaning (Tab.).
Eighteen years later, the year Coca-Cola introduced Diet Coke, the tab outsold Diet Pepsi by
23 percent.
So why is Coca-Cola introducing Diet Coke when it has the flagship Diet-Cola brand? As it
turns out, Diet Coke may have been one of its best decisions.
7 Second Pepsi Challenge.
Seven years before Diet Coke launched, Pepsi shocked Atlanta with its "Pepsi Challenge"
campaign.
Even more shocking, Coca-Cola's own taste tests showed that consumers preferred the taste of
Pepsi over Coke 58 to 42.
The third shock came when Pepsi overtook Coke in supermarket sales.
Coca-Cola's response.
"This is our firmest step." That's what CEO Roberto Goizueta said at the New Coke launch
event. And he had reason to be super confident. In 190,000 blind taste tests, New Coke beat
Pepsi 53 to 47. and 55 to 45 over regular Coke.
When both formulas were identified, New Coke's lead was even greater: 61 to 39 over regular
Coke.

Three months later, Coca-Cola brought back the original formula, now known as "Classic
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Coca-Cola".
what went wrong It's not because Coca-Cola changed the formula. The research showed that
customers approved of the change.
It is because of the social pressure created by the media that hammered Coca-Cola.

4 Challenges and solutions for challenges that the company faced

during collectivity stage

The Coca-Cola Company calls its carbonated beverage category sparkling beverages. In recent
years, sparkling drinks have come under fire from health agencies and consumers alike. Better
known as CSD (carbonated soft drinks), these drinks have been criticized for their high sugar
content and caffeine.
Health agencies have also accused the drink of causing several diseases, including obesity,
diabetes and osteoporosis. Consumers are slowly moving away from CSDs and towards still
beverages. Coca-Cola's still beverage portfolio includes non-carbonated beverages such as
flavored water, juice, ready-to-drink tea, coffee and sports drinks. Pepsi and Coca Cola each
posted modest declines in 2014.
Two major trends impacting the carbonated soft drinks (CSD) business are health concerns and
international expansion. According to Beverage Digest, Coca-Cola improved its market share
by 0.4% to 42.4%, while flagship brand Diet Coke reported a 6.8% decline in volumes. A lot
is at stake for Coca-Cola in CSDs, and trends with Coca Cola solutions Rising health concerns
hurt demand With low dollar amounts, colacompanies are using different strategies to capture
the larger share of the market. Coca-Cola follows a dual strategy in this regard.
1. Increasing marketing spend

Coca-Cola increased its marketing spend by 10% in 2011.

2. Focus on healthier varieties of CSDs

In 2011, Diet Coke became the second largest selling CSD in the US, behind traditional Coca-
Cola, and Pepsi.Coca-Cola is also experimenting with new flavorings that it believes will add
health value to its drinks.

3. Strong Growth In Demand In Emerging Economies:

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Coca-Cola is already wellestablished in key geographic areas of China and Latin America,
where it is the largestselling CSD. The company’s strong foothold in these markets, positions
it perfectly forleveraging market level growth in these economies. The company is also
focusing onscaling up operations in emerging economiesthrough wider collaborations with
bottlers.Coca-cola bottlers are making huge investments in increasing manufacturing
capacity,while the Coca-cola company is steadily increasing its marketing and advertising
focus.
Over the years, Coca-Cola faced a number of challenges, including its latest challenge, “sugar.”
According to Advertising Age, sugar is “Public Enemy No.1. It’s blamed for obesity and even
termed toxic. A new book claims it’s addictive. Beware, marketers: Sugar may be the next
regulatory target.”
Before commenting on the sugar crisis, let’s take a look at how Coca-Cola dealt with some of
its other challenges.
4. The medicinal challenge.

The first label for the new Coca-Cola syrup said in part: “This intellectual beverage and
temperance drink contains the valuable tonic and nerve stimulant properties of the Coca plant
and Cola nuts . . . a valuable brain tonic and a cure for all nervous affections: sick head-ache,
neuralgia, hysteria, melancholy, etc.” Nine years after its launch, Frank Robinson, the man who
came up with the Coca-Cola name and the Spencerian-script trademark, had an brilliant insight.
“We found that we were advertising to the few when we ought to advertise to the masses.”The
new slogan: “Drink Coca-Cola. Delicious and refreshing.”
5. The fountain challenge.

Four years later, two Chattanooga lawyers showed up in the office of Asa Candler who had
taken control of the company from founder John Pemberton. They wanted to buy exclusive
rights to bottle the beverage. And Candler sold it to them . . . for the sum of one dollar. A bad
bargain? Not necessarily. The two lawyers divided the country between them and diligently
recruited talented individuals to set up Coca-Cola bottling companies.Twenty-nine years later,
there were 1,263 bottlers covering the country, the year bottled Coca-Cola outsold fountain
sales for the first time.Without this bottler network, it’s possible that Coca-Cola would not have
become the powerful brand it is today.

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 6. The cocaine challenge.

Before the arrival of the 20th century, cocaine was touted as the world’s newest wonder drug,
a cure for almost everything. One of its biggest supporters was Sigmund Freud who wrote an
article entitled Über Coca, “a song of praise to this magical substance.” Fortunately, wiser
heads at Coca-Cola prevailed and four years after making the bottler deal, Coca-Coca removed
cocaine from the formula, substituting caffeine instead.
7. The bottle challenge.

With hundreds of bottlers selling Coca-Cola around the country, there was no uniformity in
how the product looked. There were many different bottle designs. So Coca-Cola held a contest
to design a bottle that could be recognized in the dark. The winner produced the world’s most-
famous package designs, the contour bottle. Even today, its iconic bottle is one of Coke’s best
attributes.
8. The Pepsi challenge.

There was one problem with the contour bottle: It held only 6.5 ounces. But strange as it might
seem, it took Pepsi-Cola 23 years to exploit this weakness. “Pepsi-Cola hits the spot. Twelve
full ounces, that’s a lot. Twice as much for a nickel, too. Pepsi-Cola is the drink for you.” (The
1939 radio jingle that greatly increased Pepsi’s sales.) As the years rolled by, Coca-Cola’s
market share slowly eroded. But it took 16 years for Coke to respond to the Pepsi challenge by
introducing larger-size bottles and another five years before introducing a 12-oz. can, today’s
dominant cola package.

9. The diet challenge.

Two years later, Diet-Rite cola hit the market. But this time, Coca-Cola reacted quickly. The
following year, the company launched Tab. A year later, 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 (Tab.) Not so. Eighteen years later, the year Coca-
Cola introduced Diet Coke, Tab was outselling Diet Pepsi by 23 percent.
10. The second Pepsi challenge.

Seven years before the launch of Diet Coke, Pepsi shocked the folks in Atlanta with its “Pepsi

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Challenge” advertising campaign. What was even more shocking was that Coca-Cola’s own
taste tests showed consumers preferred the taste of Pepsi 58 to 42 over Coke. A third shock
occurred when Pepsi overtook Coke in supermarket sales.
11. Emerging market performance

While Coke dominates the emerging markets, it has seen increased competition from domestic
players, with global competitors such as Pepsi Co. also looking to grow in these regions as
well. If the company wants to hit its 2020 targets, BRIC growth and development of major
secondary markets such as Indonesia and Vietnam are essential.
12. Low-calorie cola performance

With governments across the globe and media publicizing obesity concerns, sugar content in
soft drinks has gone under increased scrutiny. While the Coca-Cola Co. has already developed
low and zero calorie drinks that are top ranked brands in their respective categories, the overall
category is anaemic in the US, reflecting concerns over alternative sweeteners. It will be
interesting to see the performance report for Coca-Cola Life, which is the company's stevia
sweetened cola.

5 Challenges and solutions for challenges that the company faced

during formalization stage

1. Healthier lifestyle (sugar challenge) max consumption of Coca-Cola might be

harmful to health.
Sweet drinks have become the main source of calories in people’s daily diet. Many results
show that consuming too much sugar makes us fatter than consuming fat. Also, diseases such
as diabetes, heart disease or cancer have also been found to be linked to increased sugar
consumption worldwide. To overcome this problem, Coca Cola has created a sugar-free
version so that consumers can enjoy a wide range of fresh choices. Not only Diet Coke and
Coke Zero sugar, Coca Cola company can develop more variety of beverage. As example like
still water or sparkling water or teas or yogurt drink with low or no sugar.
2. Increase in competition (non-alcoholic beverage industry is highly competitive)
As a solution to this, alcohol/drug abuse policy was presented by Coca cola company. The sale,
possession, transfer, solicitation or purchase or alcohol or illegal drugs on company business
is strictly prohibited.

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When evidence is available, the company will notify appropriate law enforcement authorities.
Employees are expected to corporate with requests for medical or other information or
examinations in furtherance of management’s responsibility to enforce this policy.
3. The severe challenge of the Corona epidemic
As people around the world are affected by the Coronavirus pandemic, Coca cola is supporting
the needs of its customers, employees and communities while doing its part to prevent further
spread of the virus. Protecting employee health and well-being is done by closely following
the guidance of health authorities in offices, distributions etc. around the world. Since the
outbreak of the Covid 19, they have implemented additional cleaning and sanitation measures.
In addition, the Coca cola company has overcome the Corona challenge by encouraging remote
working, restricting travel, serving customers, ensuring product safety and supporting their
communities.
4. Emerging market performance
Coca cola is already established in emerging markets, dominating the carbonates category and
often the entire soft drink market. While the company cannot rest on its laurels, competition
from domestic players will increase, and global competitors-notably PepsiCo- will be keen to
take Coca-Cola’s market share in growth regions.
5. Plastic bottles waste
Plastic pollution is one of the environmental problems. Understanding the dangers of plastic
pollution and taking steps to reduce waste can help solve the problem of plastic pollution. To
solve this problem, the Coca cola company can invest in packaging innovation that will help
reduce the world’s packaging waste problems.
In 2018, the coca cola company announced the new vision of Don’t Waste World” by collecting
and recycling every bottle container of its products by 2030 and increasing the amount of
recycled material used in most bottles or cans. An average of 50%, and all packaging can be
100% recycled by 2025 and their PET bottles there is an average recovery of 50%.

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 6 Challenges and solutions for challenges that the company faced
during elaboration stage
Organization management must change the control system and adapt by renewing the
organization structure. This stage is final stage of organizational life cycle. That stage
temporary decline patron occurs as well as growth and innovation slow and the organization
becomes a self-perpetuating bureaucracy that creates diminishing returns. It also initiative for
the collaboration and teamwork as well. Related this stage coca cola company facing
challenges and problems working together and giving a new life or energy. The following
mentioned about facing main challenges and relevant solutions in this stage.

Because of the product's declining market, the degree of industrial profit also declines
Products reach this stage when they peak during the maturity period and then start to spiral
downward. As a result, their sales and revenues start to fall, and eventually the product reaches
a point where the corporation can no longer produce it profitably.
The shrink may result from a shift in consumer tastes and preferences or the introduction of
other products which are more innovative. thus, they understood that the product has good
potential and had reached the decline stage because of a mistake in the marketing program.
Thus, Coca-Cola targets every customer in the market, but its main focus is age, family size,
income. The perfect segmentation is the reason behind the success of Coca-Cola.
Customers have moved on to the next new flavor
Sales of a product decrease during the decline stage, either because of the product becoming
outdated or the market getting saturated. When a product reaches the end of its life cycle, a
corporation does have a variety of options.
As a result, Coke will refresh its lineup in 2022 with four new drinks, ranging from alcoholic
beverages to new flavors, giving customers more options for quenching their thirst. For an
example Coca-Cola Starlight, Simply Spiked Lemonade, Coca-Cola with Coffee Mocha, Topo
Chico Ranch Water Hard Seltzer (eatthis, 2022).
The health challenges
Consuming sugar is connected to heart disease risk factors such high blood pressure, high
cholesterol, and excess body fat. Therefore, consumers found other healthy drinks and as result
coca cola sale rapidly declining. Thus, it can remove the product from the market completely,
therefore coca cola found solution for that.

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 7 Conclusion
As per the report,can be identified four stages of Coca Cola company in life cycle.which are
entrepreneurial stage,collectivity stage,formalization stage and elaboration stage.can be
identified that the challenges that the coca cola company faed during its life cycle stages and
the solutions or actions that the coca cola company taken to face challenges.
Coca-Cola as the world's leading soda beverage, with the strength of high resources company
and also a very good and well-known brand image will be accepted at ease almost all over the
world. Therefore, the strategy of Coca-Cola focuses on covering the full market segmentation,
anywhere. But along with the development of the soda industry, many competitors both from
domestic products to global manufacturers are now present and reducing Coca-Cola's market
share in each country. Hence, the need for Coca-Cola innovations in their marketing strategies.
Armed with their bottling partners and also the ability to 'think global, act local' makes Coca-
Cola could adjust its strategy to penetrate the market more complex and in-depth to continue
to expand market share in all regions.
Coca-Cola has a few shortcomings in its marketing strategies which affected the desire and
beliefs of society in a negative light. To avoid this from snowballing into a huge problem in
the future, Coca-Cola needs to take some preventive measures to correct its advertising way.
Coca-Cola company try to stay on top of the beverage industry for a long time.
As well, the coca-cola company focuses primarily on waste management and the preservation
of water. The company focuses on Waste Management as they understand that most of their
packaging is done through plastic components which can be difficult to collect and dispose of.
Therefore, Coca-Cola is strong ethical and socially responsible due to it has made a separate
code of conduct for employees and marketing. This shows that it is following business ethics
and is a well ethically responsible company. It is known for its best corporate culture and
business ethics. Coca-Cola is working to manage its impact in the marketplace, on the
environment, in the communities in which it operates, and within the workplace. It covers many
of the key challenges including health and nutrition, and marketing support to children. Coke
is doing its social duties very well it significantly reduced water usage, energy usage, and
landfill waste in recent times. Coke s main focus in society is on supporting youth sport,
physical activity, and youth education.

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 8 References
810-1577-1-SM.pdf
Coca Cola Company Challenges And Solutions - 1021 Words | Bartleby
Coca Cola Company Challenges And Solutions - 1021 Words | Bartleby
https://www.coca-colacompany.com
https://eduzaurus.com
https://www.foodmag.com
https://www.slideshare.net/PARICHAYATHOMARE/hr-policy-coca-cola
https://www.euromonitor.com/article/4-challenges-for-coca-cola-ahead-of-q4

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