BT12303

MANAGEMENT
SEMESTER 1 2019/2020
SECTION 1
TITLE: STUDY CASE OF COCA COLA COMPANY
LECTURER: DR. TOH PEI SUNG

NO NAME MATRIC

1 MUHAMMAD AFIQ BIN BOLLIME BB20110324

2 ALEXANDER VUN KHAI CHEONG BB20110101

3 MADELEINE CHONG TZE LING BB20110500

4 TERRY HENDRY ANAK MENYANGA BB20110386

5 FRENNIE LIWIN BB20110313

6 KEK XIN YU BB20110066

7 LI SHUANGXIN BB19270089

8 GENG MENGZHU BB19270080

1.
INTRODUCTION

2.
PLANNING

3.
ORGANIZATION

4.
LEADERSHIP

5.
CONTROLLING

6.
SOLUTION

7.
CONCLUSION

8.
REFERENCES
INTRODUCTION

The Coca-Cola Company history started in the year 1886 when a pharmacist called Dr. John
Pemberton created a soft drink that was sold at his neighbourhood pharmacy. Prior to Dr. John
Pemberton’s death in 1888, he sold portions of his business to several parties, but the majority was
sold to Atlanta businessman name Asa Candler. At first the Coca Cola soft drink was sold per glass
but then a businessman called Joseph Biedenharn started putting the Coca Cola soft drink in bottles.
Later on, Benjamin Thomas, John Lupton, and Joseph Whitehead developed the Coca Cola bottling
system.

Moreover, one of the first marketing efforts of Coca-Cola Company was issuing coupons,
and then the company used newspaper advertising Coca Cola created a famous advertising slogan that
is still used in the company’s advertisements which is ‘’the pause that refreshes”; the slogan first
appeared in the year of 1929.

In addition, when the Coca Cola Company started, it was selling soft drinks only. After few
years, the company started acquiring other beverages. This is strategy of Coca-Cola companies in
order to expand its beverages portfolio to appeal to different consumers’ taste. Recently the company
has acquired Costa Coffee for a 5.1 billion U.S. dollar.

Furthermore, the Coca Cola Company became a total beverage company that offers over 500
brands worldwide. Their portfolio includes many beverage brands such as Zico coconut water, Honest
tea, Fanta, Minute Maid Juices, AdeS soy-based beverages, Smart Water, Sprite, Dasani Waters,
Georgia Coffee, and more.
PLANNING

Planning is the function of management that involves setting objectives and determining a
course of action for achieving those objectives. Planning requires that managers be aware of
environmental conditions facing their organization and forecast future conditions. It also requires that
managers be good decision makers. The main objectives for the Coca-Cola Company are to refresh
the world and make difference. By having these objectives, it forms the foundation for companies in
the decision-making process.

To make Coca-Cola company archive their objective is analyse the Coca-Cola company by
using the SWOT analysis. The Strength of Coca-Cola company is Coca-Cola is a leader in global
carbonated drinks. Coca-Cola’s leadership position in the carbonated beverage provides substantial
manufacturing and distributing efficiency over any rival. Coca- Cola dominates the soft drink market
in both Western and Eastern Europe, North America, and the Asia-Pacific region. Weakness of Coca-
Cola Company is highly dependent on sales of soft drinks. Despite the vast portfolio of product
offerings, soft drink is still most Coca Cola sales. As a result, its sales and profit are trending lower
every year as traditional sugary drinks have fallen out of favour from consumers in the developed
market. Then, the opportunities are rebranded and launch new marketing campaigns. Millennials, for
many years, have abandoned Coca Cola products in favour of more trending drinks. Recently Coca
Cola launched a new marketing campaign for Diet Coke’s new flavour to appeal to this age group.
Coca Cola could apply a similar strategy to juice and ready-to-drink tea and coffee to attract young
working professionals. Threats of Coca-Cola Company is new government regulations on soft drinks.
In many countries, the government has issued new laws regarding the sales of soft drinks and its sugar
content to fight obesity among children and teenagers. Some countries put a new layer of tax on the
sales of soft drinks while others dictate how much sugar should be in one unit of carbonated drink.

Decision making is the study of identifying and choosing alternatives based on the values and
preferences of the decision maker and it is the process of sufficiently reducing uncertainty and doubt
about alternatives to allow a reasonable choice to be made from among them. The decision-making
process in the Coca-Cola company is centralized. There are six steps in the decision making of the
Coca-Cola company which are recognize need to make decision, generate alternatives, assess the
alternatives, choose among alternatives, implement choose and last the learn from feedback. In Coca-
Cola company, decision which always takes by the top manager can related to the packaging
positioning, trade discounts, advertisement, price reductions and distribution.
ORGANISING

Organising is focus on arranging human and non-human resources so that the plans can be
carried out successfully. It also constructing an organisational structure for the accomplishment of the
agreed purposes, lines of authority, and responsibility defined, and a system of rules and procedures.
Organising is how the plan will be carried out, so the goal is achieved. Once a plan is planned, the
next step is to agree on which individuals will need to be include, who will be in charge, who will
keep individuals held responsible, and what resources will be necessitate, who will be in charge for
getting those resources, who will keep an eye on the progress. Those phases are all part of the
organising process in the project

Achieve their goal are one of Coca cola company ambition or dream. To achieve that dream
or goal, the company must know the organising swot analysis. Firstly, is strength. Coca-Cola
company have many types of department in the real practice. Individuals who possess the same on the
basis of common skills and work activities are grouped together. This method helps the company
solve the problem easily. Second is weakness. Coca cola company weakness is water management
issues. The brand has already faced issues regarding over-consumption of water. These issues make
their cost increase and gain, or profit become small. Coca cola also have a big opportunity to achieve
their goal. Coca cola is the best drinking water brand in the world. Their product has been sold over
the world. Developing nation. Developing nations have a high demand of coca cola, these countries
are slowly moving to healthy drinking brand. However, they still being introduced to the carbonated
and soft drink. Lastly is threat. Coca-Cola have an indirect competitor like Starbuck and costa coffee.
These chains product offer a healthy drinking product. They might be a rival for coca cola brand.
Similarly, with another healthy drinking brand like Tropicana, energy drinks like Red bull, and
another brand.
LEADING

Though Coca-Cola is organized around geographical regions and then the various
departments for each region, the company emphasizes the importance of transformative leadership at
both the Global and the Local levels. Apart from this, the leadership at Coca-Cola believes in a
democratic and laissez faire approach to leading which is necessary considering the business it is in
which is heavily dependent on both the macro level vision and mission that need to be translated and
transformed into micro level execution. Decision making process is centralized the top management
take decisions. The following are the areas where the important decisions has been taken place on
package positioning, advertisements, and price reductions. Through the three-decision making will
bring company to increase the profit and reputation in the world. In Coca Cola, one of their way to
motivate staff is through the working performance of employee, since if employee is hard to work, the
company could motivate them by improving their occupational opportunities and awarding them.
Coca-Cola was having an effective integrated marketing communications strategy and the efficiency
to implement it are necessary for a company’s long-term growth. Coca-Cola relies on media
extensively to conduct its integrated marketing communication strategy. The choice of media used by
the company includes newspapers, magazines, internet, television, cinema, radio, posters and
billboards.

Based on SWOT, the strength of company Coca-Cola is doing branding and promotions. The
way Coca-Cola markets its brands and products is also one of the leading strengths of the company. It
sets itself apart from the competition in a highly competitive industry through a unique marketing
strategy. It is a well-recognized brand in almost all corners of the world. The Coca-Cola name and
logo can be recognized anywhere and imply the strong brand recognition Coca Cola has built over
time. Despite its leading position in the soda industry, the company spends a large sum on advertising
each year. In 2019, the company spent $4.1 billion on advertising. It heavily uses digital marketing
channels for promotions and apart from its websites, engages its fans and followers from around the
world on social media networks. The sheer size of its social media follower base is a reminder of the
strong position of the company worldwide and its customer connection. The weakness of company
Coca-Cola is product diversification. It is because Coca-Cola has low product diversification. Where
Pepsi has launched many snacks items like Lays and Kurkure, Coca-Cola is lagging in this segment. It
gives Pepsi leverage over Coca-Cola. That is make profit So that Coke's revenue cannot be expanded.
Pepsi’s reputation will improve with other products and surpass Coca Cola in the market. The
Opportunity of company Coca-Cola is increase presence in developing nations. It is because many
regions with hot climate have the highest consumption for cold drinks. Thus, increasing presence in
such locations can be excellent such like Middle Eastern and African countries, they are a good
example. The threat of company Coca-Cola is about packaging controversy. It is because Greenpeace
censured Coca-Cola in its published report in 2017 for its use of single-use plastic bottles. It has also
been criticized over its recycling and renewable sources. This news becomes a problem in packaging,
because Coca-Cola’s packaging is one of the important ways to attract customers.
CONTROLLING

As the world’s largest beverage company, Coca Cola Company bring safe, great tasting,
quality beverages to consumers at a rate of 1.8 billion servings per day. They offer hydration,
refreshment and moments of affordable happiness for people worldwide. They ensure consistent
safety and quality through strong governance and compliance to applicable regulations and standards.
They manufacture all the products following strict policies, requirements and specifications provided
through an integrated quality management program that measures all of our operations, system wide,
against the same global standards for production and distribution of beverages.

The strengths for Coca Cola is they owns four of the world’s top five non-alcoholic sparkling
beverage brands including Coca-Cola, Diet Coke, Sprite and Fanta. With the revenue of $35,119,000
million, Coca-Cola is one of the largest beverage manufacturers globally. They sold 25.5 billion cases
of products in 2010 and sells 1.7 billion servings of beverages per day in over 200 countries. Coca-
Cola even has more than 500 brands and 3,500 beverages and products.

Coca-Cola also have their own weaknesses. According to Break Free From Plastic survey,
Coca Cola is the number one plastic polluter in the world. The study found out that about 2.5% of
475,000 plastic waste collected across different continents are from Coca Cola brands. Over the years,
Coca Cola has been setting targets for waste management but has always failed to meet their waste
management target. The reason may be a lack of commitment from the top.

Next, the opportunities for Coca-Cola Company is the spurring demand for energy drinks
especially in the U.S where estimates show about 2 billion. Approximately 85% of the company’s unit
case volume is delivered in recyclable bottles and cans, and the company targets to recover at least
50% of the equivalent bottles and cans sold worldwide.

The threats for Coca-Cola Company are the increasing preference for non-carbonated healthy
drinks. The Coca Cola soda saw a 5% volume declines respectively in the carbonated soda brands
category. With rising obesity rates of 35.7 for adults and 17% for youth in the U.S alone, health
concerns may cause reduced consumption of sugar sweetened beverages, impacting profitability. The
primary beverage of Coca Cola is sparkling beverages, but the most popular drinks consumed
worldwide are water, tea and beer.
SOLUTION

Solution about threat and weakness for planning

The Coca-Cola Company’s planning focuses on the beverage industry, and the long-term
development of this industry. It is highly dependent on sales of soft drinks. In order to solve this
weakness, Coca-Cola can learn from PepsiCo's more diversified development plan, involving more
industries. Not only Pepsi in beverages, but also in the snack food industry and catering industry
(KFC and McDonald). In order to achieve the goal of attracting more customers and expanding the
company's market, Coca-Cola company must first determine the direction and develop more
advantageous competitive strategies, and innovatively formulate diversified development plans. The
Coca-Cola Company should diversify its development, get rid of being limited to a single product and
its total income from the beverage industry, plan a more diversified development strategy, and
innovate more development paths.

The government has promulgated new laws on the sale of soft drinks and their sugar content
to combat obesity in children and adolescents. This threat limits Coca-Cola's planning. In order to
change and reduce the threat to the development of Coca-Cola by the new government law, The Coca-
Cola Company should always pay attention to the government’s response to health concerns and the
sugar content of beverages. According to the current demand for sugar-free products, and DSM’s
reports and proposals, Coca-Cola has two solutions. The first is to continue to reduce sugar content in
beverages, without reducing the taste, reduce the sugar content and let governments accept it, and pass
the sugar tax standard. The second is to use sugar substitutes, novel flavors and colors to create new
innovative beverages, it can be easy to receive by the consumers and government. Both schemes can
use to change and reduce the threat from proposed sugar laws through national government legal
requirements.

Solution about the threat and weakness for leading

In order to solve the low product diversification this weakness, our group’s solution is the
leadership of the Coca-Cola Company must first set a diversified development strategy, motivate
employees, stimulate their diversification potential, and effectively use human resources to achieve
the company's product diversification, not just the beverage industry. The leaders of Pepsi-Cola
Company abide by the principle that diversity is the prerequisite for success, relax the management of
employees, allow them to think freely, and encourage the diversified development of employees to
achieve the company's diversified development goals.

The threat that Coca-Cola is facing now is the issue of packaging controversy, because it uses
disposable plastic products, and a lot of plastic is spent on packaging. It is not only a waste of
materials but also does not protect the environment. Our group’s solution is to change the bottle
design and add wavy line elements to the original linear form. The new design will not only use less
plastic than the original, but also make it easier for consumers to take. Finding information shows
that Pepsi-Cola has already designed pie to use this scheme in November 2020. Leaders should
discover packaging disputes in a timely manner, collect opinions on the disputed issues, and then
unify their opinions to correct the disputed issues as soon as possible.

Solution about threat and weakness for organizing

The company was blamed for depleting the local supply of water even in communities where
it did not have operations, and even though Coca-Cola said the facts proved otherwise. Ultimately,
Kerala became a wake-up call for the company to address its responsibility for water” beyond the four
walls of the plant’’ said Greg Koch, Coca-Cola’s director of global water stewardship. Atul Singh, a
key player in India during the Kerala controversy who became one of Coca-Cola’s group presidents,
recommended that the company help build water infrastructure in communities near Coca-Cola plants
as well as in places where the company did not operate. In India, Coca-Cola committed to fully
replace the water it uses in its finished products across the globe, a goal it set for 2020.

The coronavirus pandemic has triggered seismic shifts in shopping behavior, challenging The
Coca-Cola Company and creating new opportunities in everything from brand launches and
marketing campaigns to routes to market and revenue growth management strategies. Coronavirus has
prompted the company to accelerate efforts to streamline its beverage portfolio, eliminating under-
performing “zombie” brands and adapting its innovation pipeline. Coca-Cola teams around the world
are collaborating with grocery customers to adjust supply chains and prioritize delivery and promotion
of core brands and SKUs like multipacks as people adjust to stay-at-home lifestyles and make fewer,
quicker stock-up trips. To support the surge in e-commerce channels – which have doubled in some
countries as more people order necessities for home delivery – the Coca-Cola system is prioritizing
package options that are fit-for-purpose for online sales, boosting investment in digital promotions,
increasing in-app visibility with e-delivery grocers, and piloting digitally enabled fulfilment models.
Bottlers are investing in digital B2B solutions to manage customer orders and deliveries, and the
company is rolling out a B2C platform in Latin America that lets consumers order beverages and
groceries from local mom-and-pop stores for home delivery.

Solution about weakness and threat for controlling

Coca-Cola is now facing the weakness of poor waste management. The solution discussed by our
group is to recycle 100% of packaging materials. Reuse to solve the problem of poor waste
management. Through searching information, it was found that in April 2018, Nestlé announced a
plan to make 100% of its packaging recyclable by 2025, especially to avoid plastic waste. The
weaknesses faced by Coca-Cola can refer to this plan to develop various sustainable packaging, to
phase out all non-recyclable or hard-to-recycle plastics in all products, but for disposable plastic
products that cannot be recycled, these items are replaced with materials that are easy to recycle or
reuse, and for recyclable materials, ensure that provide appropriate collection and disposal methods
where it is consumed.

The second is that the right threat to Coca-Cola is the health problem, because it is a carbonated
drink with high sugar content. Our solution to this problem is to change into a low-sugar or sugar-free
beverage, to reduce the sugar content of cola so that people who like to drink cola can also drink it
appropriately. Searching for information found that Starbucks launched a series of low-sugar
beverages. Removing or replacing the sugar in the original coffee with low-fat sugar will not pose a
certain threat to our health. Therefore, Coca-Cola can also launch a series of low-sugar or sugar-free
cola, halving the original sugar in cola or replacing it with healthy dietary fibre, so that we can drink
cola without causing certain health problems.
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