
Brandon Chapman
Business Leadership
Dr. Clott
12/8/2008
Coca- Cola is one of the most recognized and profitable companies in the world. With operations in over two hundred countries and with about three thousand products Coca-Cola has been very successful, “raking in over one hundred and forty one billion dollars annually”(www.coke.com). Coca-Cola is ranked in the top five of most recognized brands in the entire world and serves about one and a half billion people a day. Coca-Cola has very effective leadership and operations that are successful with great management.
Coca-Cola’s management is from all over the world with different backgrounds. This makes Coke very effective in International Business since it has people worldwide. Their current CEO and President Muhtar Kent has been with the company since 1978. He has been in charge of East European operations and was in charge of the biggest Turkish Coke bottler. “Mr. Kent was named president and chief operating officer of The Coca-Cola Company’s North Asia, Eurasia and Middle East Group from 2005 until early 2006, where he was responsible for the operations across a broad and diverse geographic region that included China, Japan and Russia. Mr. Kent served as president of Coca-Cola International through most of 2006, responsible for operations outside of North America, until his appointment as president and chief operating officer of The Coca-Cola Company, overseeing all operations of the business, including Bottling Investments. On July 1, 2008, he succeeded Neville Isdell as chief executive officer of the Company (www.coke.com).
Coca-Cola has many women on their upper management and leadership organizations. Two of their board of directors are women and four more are on their operating functional groups. Many of their leaders and managers are from around the world, like their CEO and President. This makes Coca-Cola very effective in its global operations with people who are not only familiar with those regions but are actually from there.
Coca-Cola does not use the same recipe for the entire world to drink. They use flavors and ingredients that those people like and enjoy from different parts of the world in their products. Also they offer many different types of soda to satisfy everyone’s taste. Coca-Cola has fruity drinks like Fanta to drinks with coffee, Coke Blak, to water, and everything else in between. “Passover Coca-Cola — a Kosher for Passover Coke made with pure cane sugar instead of corn syrup” (www.guardian.co.uk). Coca-Cola tends to buy out local competitors and will keep how that beverage is made in order to grow more. This cuts down in competition and continues in Coke’s global dominance. Coke of course still has competitors from small local companies to their biggest rival Pepsi, which is referred to the Cola Wars. Billions of dollars are spent annually on advertising of the products; you can see them everywhere you go. With the capital that Coca-Cola has they can afford the costly marketing campaigns they hold. Like the millions of dollars they shell out for one NFL Super Bowl television commercial. Coca-Cola is truly global; anywhere you go in the world you are bound to see either an advertisement for the product or someone or something selling it.
Coca-Cola sponsors many events as well, so they can attach their name to it to even further the name Coke into our everyday vocabulary. “Coca-Cola was the first-ever sponsor of the Olympic games, at the 1928 games in Amsterdam and has been an Olympics sponsor ever since” (www.olympic.com). Since the Olympics is one of the biggest sporting events in the world Coke has capitalized on both the popularity and the global presence of the games. But Coke also sponsors other sporting events, like the NBA, the NFL, MLB, and NASCAR. For NASCAR Coke holds two races with the companies name in it. But Coca-Cola is not just limited to American sports and the Olympics. Coca-Cola is a major sponsor in other leagues and sporting events. Since soccer (football) is the greatest and most popular sport in the world, Coke capitalizes on this. They sponsor the FIFA World Cup, which is the biggest sporting event in the world every four years. “Since 1978 Coca-Cola has sponsored each FIFA World Cup and other competitions organized by FIFA” (ww.fifa.com). Also Coca-Cola sponsored the FIFA Youth World Cup and the name if “the cup was named the Coca-Cola Cup” (www.fifa.com).
Coca-Cola also is not only a sponsor of the worlds biggest and richest sports league, the English Premier League but owns the naming right and is the main sponsor for the Football League and the divisions below it. “In England, Coca-Cola is the main sponsor of The Football League, a name given to the three professional divisions below the Premier League in football (soccer). It is also responsible for the renaming of these divisions- until the advent of Coca-Cola sponsorship, they were referred to as Divisions One, Two and Three. Since 2004, the divisions have been known as The Championship (equiv. of Division 1), League One (equiv. of Div. 2) and League 2 (equiv. of Division 3)” (www.thefa.com). Since The Championship is almost as popular as The Premiere League this is huge, you can see the advertising everywhere during the games, even on the referees.
Coca-Cola holds earnings into the hundreds of billions annually, making them one of the most profitable companies in the world. In 2007 their earnings per share grew at about nineteen percent with a twenty percent net operating income increase. Obviously Coca-Cola is doing very well, they have continued to grow and expand into new markets and expand in their older ones. Coca-Cola follows trends that are occurring in the market. Like the whole going green, Coca-Cola now operates a fleet of environmentally friendly automobiles. “Due to the rising cost of fuel in 2008, Coca-Cola Co. and its two largest U.S. bottlers are shifting their fleets to hybrid electric vehicles. [59] The company currently has 142 hybrid-electric delivery trucks throughout the U.S. and Canada” (www.coke.com). By doing this it increases their public image as being concerned for the environment and trying to help. Which they are doing, and they are cutting cots by using the hybrids. Also with people trying to be more health conscious and the American public wanting to be in shape they introduced lower calorie drinks and products with no sugar and other types of products. This is a response to the public and how tastes are changing, but their most popular drink is still Coca-Cola Classic. Coca-Cola does introduce new products that are innovative and creative in order to create buzz. This has been both great moves and also horrible decisions that caused harm to their image.
Coca-Cola introduced a new formula in 1985 that was sweeter than their regular product. New Coke was launched with much hype and marketing in order to spur interest for the new product. But after a while sales dwindled and New Coke was pulling in just three percent of total sales. The New Coke idea was an overall a commercial failure, with the amount of money pumped into the marketing and investment. Many people preferred the taste of the old Coke and so the original Coke was branded as Coca-Cola Classic and New Coke was taken off the market.
There has not just been new products that has caused the company public image harm. The use of high fructose corn syrup is a major contributor to obesity and the over intake of calories. Also in 2003 it was found that Coca-Cola in India contained pesticides and other dangerous chemicals. “In 2003, the Centre for Science and Environment (CSE), a non-governmental organization in New Delhi, said aerated waters produced by soft drinks manufacturers in India, including multinational giants PepsiCo and Coca-Cola, contained toxins including lindane, DDT, malathion and chlorpyrifos — pesticides that can contribute to cancer and a breakdown of the immune system. Tested products included Coke, Pepsi, and several other soft drinks, many produced by The Coca-Cola Company. CSE found that the Indian produced Pepsi’s soft drink products had 36 times the level of pesticide residues permitted under European Union regulations; Coca-Cola’s soft drink was found to have 30 times the permitted amount” (www.cseindia.org). This hurt Coca-Cola’s image publicly on a global scale, with fears that in other countries the product could contain dangerous chemicals, but none have been found. Coca-Cola’s leadership did a great job in handling the situation and most people do not even remember the incident happening.
When reviewing Coca-Cola’s mission statement and values I see that they are actually pretty close to achieving their goals. “Our mission declares our purpose as a company. It serves as the standard against which we weigh our actions and decisions. It is the foundation of our Manifesto. To refresh the world in body, mind and spirit. To inspire moments of optimism through our brands and our actions. To create value and make a difference everywhere we engage” (www.coke.com). This is a good mission statement, I don’t know if they actually achieve this but nonetheless its good. “Our Vision
Our vision guides every aspect of our business by describing what we need to accomplish in order to continue achieving sustainable growth. People: Being a great place to work where people are inspired to be the best they can be. Portfolio: Bringing to the world a portfolio of quality beverage brands that anticipate and satisfy people’s desires and needs. Partners: Nurturing a winning network of customers and suppliers, together we create mutual, enduring value. Planet: Being a responsible citizen that makes a difference by helping build and support sustainable communities. Profit: Maximizing long-term return to shareowners while being mindful of our overall responsibilities” (ww.coke.com). Their values do seem to be true overall, it is pretty reasonable and they achieve most of them.
Coca-Cola is a fantastic company overall, they bring in a huge profit, they are recognized worldwide, and this is mainly due to their leadership. Coca-Cola brings refreshment to their customers, and we all know what to expect when we open a Coke.
References
1. www.thecoca-colacompany.com, the website of the Coca-Cola company
2. http://www.guardian.co.uk/world/2007/mar/19/religion.uk, Jenny Kleeman, March 19, 2007, “Sugarruch- the craze for koser Coke”
3. www.olympic.com, the official website for the Olympic games
4. http://www.fifa.com/en/marketing/partners/index/0,3517,13,00.html, the website for the Federation International de Football Association
5. www.thefa.com, the website for the British Football Association
6. www.cseindia.org, website for the center for science and environment
http://www.rediff.com/money/2003/aug/05pepsicoke.htm, “ Coke, Pepsi Contain Pesticides: CSE”, August 5, 2003







