TABLE OF CONTENTS
EXECUTIVE SUMMARY 1
COMPANY OVERVIEw 2
Organizational Structure 3
Regional Structure 3
Foreign Operations 4
Expansion in China 4
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The increasingly health conscious American population is less eager to purchase a beverage that may contribute to the country’s obesity problem. Additionally, the 2008 recession gave U.S. consumers a reason to reduce spending. In 2009, Coca-Cola reported a drop of 18% in fourth-quarter profits. Furthermore, the privatization of water has lead to a disruption in the water cycle and water depletion in water-poor areas. Water is a main component of Coca-Cola’s products with 2.43 liters used to produce 1 liter of Cola. Coca-Cola is making strides to increase the amount of water that is replenished to its origin by sending used water to other parts of the production processes.
Recommendations: Coca-Cola should continue to invest in projects that work towards reusing 100% of its used water. Coca-Cola can promote its brand by showcasing its progress; this will prompt water-poor countries to allow Coca-Cola to operate within their borders. In regards to foreign relations, Coca-Cola should continue to invest abroad and reap the benefits of high demand and cheap production costs. However, Coca-Cola must be careful to remember its local markets and work towards stabilizing U.S. sales.
Coca-Cola is a multinational retailer that franchises alcohol beverages and syrups to local businesses all over the world. It was founded in 1886 by John Pemberton, a pharmacist from Atlanta who combined a dark syrup with carbonated water. Pemberton died later on, and Atlanta businessman Asa Griggs Chandler took the company under his wing to unearth the brand that now sells 10 billion gallons of its products a century later.
Coca-Cola has proved itself to be one of the most successful multi-product companies on a global scale. The efficiency of its production can be attributed to its local subsidiaries where all the manufacturing, bottling and distributing of the product is completed. These companies are allowed to sell the Coca-Cola product as long as they adhere to the terms and conditions provided by the company.
Coca-Cola is home to over 500 brands including many other popular non-alcoholic beverages such as Fanta and Sprite. In the 1990’s Minute Maid, PowerAde, Nestea, Fruitopia, and Dasani were among the brands created to introduce a whole new line of healthier drinks and sport beverages. Growing health conscious societies reduced the sales of carbonated drinks which made the company introduce its first Diet Coke in 1982. (“Murden, Terry”)
The bottling plants operate locally, so the product mix is usually tailored to the geographic location. The entire responsibility of the product lies in the hands of the bottling company as they are responsible for the distribution and sale of the product. Coca-Cola’s bottling system makes their main source of revenue their sales of concentrates and syrups to their bottlers.
The Coca-Cola brand has been very...