Success Of The Coca Cola Company Commerce Essay

This study is to look into Coca Cola Company. On this coursework I will look at the company on all facets from their concern maps, organizational constructions to the company ‘s aims. I would hold to look at the sections within the concern and the functional countries within these sections, besides look at the different direction manners within the concern, looking at the organizational construction, the communicating used within the concern, and the impact of ICT on the administrations communications.

The Coca-Cola Company is the universe ‘s prima maker, seller and distributer of non-alcoholic drink dressed ores and sirups. Along with Coca Cola, the universe ‘s best known trade name, The Coca Cola

Company markets four of the universe ‘s top-five soft drink trade names, including Diet Coke, Fanta and Sprite. Throughout the universe, no other trade name is an instantly recognizable as Coca Cola. With operations in

more than 200 states, a diverse work force comprised of more than 200 different nationalities, pass oning in more than 100 different linguistic communications, The Coca Cola Company is portion of the cloth of life in each of the communities they serve throughout the universe. It operates as a local concern spouse, supplying quality in the market place, heightening the workplace, continuing the environment and beef uping the community.

Coca-Cola is the most popular and biggest-selling soft drink in history, every bit good as the best-known merchandise in the universe. Coca-Cola was invented in May 1886 by Dr. John S. Pemberton in Atlanta, Georgia. The

name ‘Coca-Cola ‘ was suggested by Dr. Pemberton ‘s bookkeeper, Frank Robinson. He kept the name Coca-Cola in the fluxing book that is celebrated today. Coca-Cola was foremost sold at a sodium carbonate fountain by blending Coca-Cola sirup with carbonated sodium carbonate in Jacob ‘s Pharmacy in Atlanta by Willis Venable. During the first twelvemonth, gross revenues of Coca-Cola averaged nine drinks a twenty-four hours, adding up to entire gross revenues for that twelvemonth of $ 50.

Since the twelvemonth ‘s disbursals were merely over $ 70, Dr. Pemberton took a loss. Today, merchandises of The Coca-Cola Company are consumed at the rate of more than one billion drinks per twenty-four hours.

In 1893, Coca Cola was registered in the United States and so farther investing was put into it to spread out the concern. To manage the tremendous capacity of its concern, the Coca Cola Company has

divided up into six runing units: Middle and Far East Groups, Europe, The Latin America Group, The North America, The Africa Group and The Minute Maid Company. The Head Quarters is situated in the

United States. The state that I ‘m traveling to be concentrating on is the United Kingdom and how the company works in the U.K.

Action Plan

I drew up this action program as a usher to prioritize what information I need to finish this study. The method of research I will utilize the most on this study will be secondary research such as the one-year studies, etc.

Coca Cola ‘s Ownership


The Coca Cola Company is a public limited company. They offer portions to the general populace through the company. It is chiefly larger companies such as Coca Cola that are public limited companies.

The advantages of a populace limited company are:

* Stockholders have limited liability

* The sale of portions enables larger amounts of money to be raised

* While the company has this money for good, the person

proprietors can reimburse their money by selling their portions to others

* Directors may be brought in as experts in certain Fieldss

* Produce goods at lower unit cost

* Due to their size they can profit from economic systems of graduated table, e.g.

majority purchasing, cheaper adoption

The disadvantages of a populace limited company are:

· There are a figure of legal demands to carry through in puting up a


· Regulations mean that a company is more expensive to put up than a

exclusive bargainer or partnership, although the cost may be every bit small as

& A ; lb ; 100, and some already registered companies can be bought off the nog

· The accounting of a company is less private than for other signifiers of


· The company could go to big ensuing in hapless labour dealingss

· There could be a struggle of involvement between stockholders and the

Board of Directors

· Possibility of coup d’etat or amalgamation because portions can be bought by


Coca Cola besides have limited liability as they are a public limited company. A limited company is owned by its stockholders. There is no legal upper limit to the figure of stockholders. There are two signifiers of

Limited Liability Company in the UK, the Private Limited Company ( Ltd ) and the Public Limited Company ( Plc ) . The indispensable difference, between the two, is that the Private Limited Company can non lawfully

offers its portions to the general ‘public ‘ , therefore this signifier of company is normally associated with household run concerns. Whilst the Public Limited Company can sell its portions to the general populace on

the Stock Exchange, supplying the potency for far greater fundss to be raised.

The proprietors of a limited company are referred to as its members, or stockholders. An person can go an proprietor of the concern by buying portions in that concern. When the net incomes of the concern are distributed to stockholders, they are distributed in the signifier of a

dividend. The value of the dividend is decided upon non by the proprietors, but by the Directors of the concern.

Some stockholders had invested their life nest eggs and non merely lost their money, but their places, limited liability was designed to protect stockholders from this error, but the cardinal motivation was to

guarantee that big undertakings could go on to raise capital.

Coca Cola ‘s Aims of the Company

Chiefly all companies ‘ aims are to last, maximise their net incomes and to spread out their concern, nevertheless, from when Coca Cola had started, over the old ages they had achieved these aims. So the

company have come up with six strategic aims to supply the company with a model for the company ‘s success. In 2003, every map of The Coca-Cola Company integrated these precedences into

their concern programs. And this twelvemonth, they will go on to set up these precedences, and their benefits into every facet of the concern.

Coca Cola ‘s Six Strategic Precedences


1. Accelerate carbonated soft-drinks growing led by coca Cola Coca Cola leads with their strengths. Carbonated soft drinks remain their most profitable concern and Coca Cola is the most popular trade name

in the universe. This scheme paves the manner for growing.

2. Selectively broaden our household of drink trade names to drive

profitable growing Enormous chance exists in classs such as juice and juice

drinks, bottled H2O, teas, energy drinks, java and more.

3. Grow system profitableness and capableness together with our bottling spouses Coca Cola is a company of relationships, and one of our most of import relationships is the 1 we portion with our bottling spouses. In 2003, those relationships became more profitable and productive.

4. Serve clients with creativeness and consistence to bring forth growing across all channels We will continually endeavor to increase growing for the clients ‘ concerns, assisting make a context for the company ‘s growing.

5. Direct investings to highest-potential countries across markets Coca Cola tailor their concern attack to the single market place based on its phase of development. In this manner, we direct our investings in a manner that makes the most concern sense.

6. Drive efficiency and cost-effectiveness everyplace By leveraging engineering, making alignment across concern units and accomplishing economic systems of graduated table, we are able to run with more


To maximize net incomes enables the company to heighten the concern, to spread out the concern, let concern to take over another concern, purchase new machineries, and pay more dividends to the stockholders. Enhancing the concern means to upgrade the concern in a sense that a concern

buys new Computers, new office equipments, new furniture, expand the office, employee more labour etc. These six aims are merely non the concerns aims but they provide the model for the company ‘s success. They achieve these ends really successfully by endeavoring for

transporting out against a crystal clear scheme for success, and by making so with an firm committedness to quality.

Departments of Coca Cola

Every administration is made up of different sections, each of these sections help Coca Cola achieve their aims. As Coca Cola is a big transnational company, the sums of sections are immense. Each state has their ain Head Office and sections. Coca Cola is geographically split into five geographic operating sections, besides known as strategic concern units ( SBU ‘s ) . The five SBU ‘s are North America, Africa, Asia, Europe, Eurasia and Middle East and eventually Latin America. If all these sections perform in the right manner so that will go on the success of Coca Cola.

There are 6 functional sections within Coca Cola, these are:

· Selling

· Finance

· Packaging

· Gross saless

· Research and development

· Administration


The Coca Cola selling section at the Atlanta Headquarters develops nucleus schemes for company trade names to guarantee that all communicating is consistent in every market.With this cohesive attempt,

the Coca-Cola system maximizes its resources for market leading and profitable growing. The selling sections are responsible for marketing the merchandises and publicizing the merchandises and advancing the merchandises. If all these sections perform their responsibility steadfastly so the

aims of The Coca-Cola Company will run into.


The finance section of the Coca Cola Company is responsible for fiscal record maintaining. This involves maintaining records of money received and paid out. The fiscal records will be used to bring forth

the one-year studies for the stockholders so that they can see the company public presentation. The Finance section is besides responsible for the direction histories of the concern like marketing etc. The

Coca-Cola Company finance section is besides responsible for doing budget of the company and for each section like marketing section or research and development section. They will besides be involved in the planning procedure like taking over or any major determination.


The packaging section of The Coca-Cola Department is responsible for the packaging of the merchandises. They have to do the packaging attractive so that that merchandise meets the eyes of the consumers. Bringing new merchandises bundle is their duty. It works with the companies bottling spouses to bring forth an attractive combination.

Gross saless

The gross revenues section of the Coca Cola Company is to organize the merchandising plan. They besides have to do the distribution methods, etc.

Besides, make up one’s mind how much to sell and how much to hive away in the warehouse and to take the transporting method which is the most cost efficient and the quickest manner.

Research and development

This section has their budget given by the finance section and their duty is to look into new merchandises. They work closely with selling by looking at marketing research findings. They have to convey new merchandises in the market for the alteration because the consumer can non lodge with the same old merchandises. If necessary so they besides have to better the quality of the merchandises. The Coca-Cola Company research section has done a batch of research and late they have launched many new merchandises like Diet coke with lemon, Fanta Tropical, Minute amahs, Fanta raspberry, Fanta blue berry etc.


This section is indispensable for maintaining the concern traveling. They act as a aid support of the company, it is non the cardinal intent the concern but every concern organisation would necessitate this section.

Most concerns rely on disposal to be organized. They deal with questions, give messages produce paperss and give information to any client. The ailments that this section will acquire would be transferred to the research and development section to do the merchandise better or repair the job that the consumer is holding. These sections are the most of import section of The Coca-Cola Company because they helps the company to run into the aims of The

Coca-Cola Company i.e. surviving, client satisfaction and do more net incomes. As I said that the aid desk section satisfies the client by supplying the information they needs and taking the ailments and go throughing to the research and development sections who improves the merchandises.

Management Manners

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There are four chief types of direction manners that each concern would utilize. Coca Cola have four rules of citizenship that they

would hold to integrate into the direction manner:

* Provide quality in the market place

* Enrich the workplace

* Preserve the environment

* Strengthen the community

A direction manner is an overall method of leading used by the director. The Coca Cola Company utilize the undermentioned direction manners, but each one in different sections. There are three chief types of direction manners used in concerns:


Where the leader makes all the determinations, there is no dialogue and is really normative and there is small occupation satisfaction. However, the occupation gets done rapidly and there is less struggle between different

thoughts. This manner is barely used among the company as they believe that the deficiency of input could take to hapless consequences. Autocratic does salvage a batch of clip as speedy determinations can be made and there is no clip wasted on treatment ensuing in the concern salvaging clip and money.


This emphasises on group understandings to bring forth new thoughts. There are two types of democratic direction manners ; democratic and advisory democratic. Democratic is where all the directors, junior directors and employees are involved in the thoughts and concluding determination procedure. Out of

all the workers, no-one has a higher degree than the others n this direction manner.

Consultative democratic

This is where the directors allow the employees to do the thoughts but the thoughts are forwarded to the executive ‘s or the director consults their squad to do the concluding determination. Coca Cola applies advisory direction manner to the company to a greater extent as there can be less struggle for what the concluding determination is. The advantage of this is that it helps to actuate staff as they are cognizant that they have a say in the company to some extent. The disadvantages of this that the procedure is really clip consuming and attempt will be needed by a director to make this.

Management encourages employees to put ends in line within the organisation aims. There are reviewed on a regular basis in public presentation assessments. The advantages of this manner are that it will increase efficiency of persons and aid to actuate them and develop them so they are productive. The disadvantages of this are that it needs to be good organized and will non work in extremely structured occupations.

Democratic manner is the direction manner that Coca Cola adopts. This kind of direction manner involves authorization. In this direction manner persons and squads are given duties and determinations to do, normally within a given model. If anything incorrect happens so the persons and squads are so held responsible for the determinations that are chosen. With this type of direction manner it allows the director to experience comfy with other people in the organisation doing some of the determinations. Democratic directors will frequently desire provender back from their employees on determinations being made. Democratic leaders listen and act on the sentiments of the group. This type of direction is good as it makes the employees happy and productiveness is high. This is a really good method because employee ‘s ideas and suggestions are listened to by the concern. This makes the employees seem as if they are respected and that their ideas are valid.

Coca Cola ‘s Management by Aims

Management by aims is a procedure of direction that emphasises the function of leading and communications in the administration and control of the concern. It is a method of pull offing directors instead than the work force at big. The followers shows how Coca Cola is managed, by the three basic elements in direction that Coca Cola uses by the aims:

· The designation of agreed ends by a director and a subsidiary

· The definition of the subsidiary ‘s duties in footings of agreed consequences

· The usage of in agreement ends and duties to command the advancement of the concern


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Every concern is made up of different civilizations and the civilizations that are present within the concern depend on the direction manner and the organizational constructions that are used. The different types of

constructions are:

Role Culture- This is best suited to a hierarchy organisational construction. This type of civilization plants best by every employee playing the function that he or she has been predetermined and corresponds with the regulations and ordinances of the concern

Task Culture- This civilization encourages people to work as a squad ; this works best in a star construction.

Power Culture- This works good in a matrix construction. It is based around one dominant individual/leader.

Person Culture- this civilization focuses on supplying administrative aid and support and close attending to one individual in the organisation.

Role civilization is the civilization that Coca Cola adopts. This is where all members have a defined occupation or function to transport out. Role civilization is usually split up into a figure of maps that are organized in a hierarchal manner. Coca Cola would split themselves into assorted maps like histories, selling and production. These besides have hierarchal ordination of office illustrations of these are production manager, production directors, supervisors, technicians, operatives etc. This type of civilization plants by logic and reason. Role civilization is chiefly used in big organisation. In this civilization place in the chief beginning of power and regulations and processs are the chief beginning of influence. They besides use task civilization s the employees from the I.T section might hold to work together to learn their end or mark

Management manner of Coca Cola.

If the civilization of the concern is non good, it can impact the figure of absenteeism and promptness. This means that if Coca Cola had a difficult and unfriendly civilization it can coerce their staff non to come to work because they might be picked on every twenty-four hours by other staff members, or they might non wish the work they are given so they either come in late or take a twenty-four hours of work. This would ensue in the concern losing out on work, and have less clip to name in for a replacing.

The civilization of Coca Cola could hold an affect on industrial dealingss, between directors and workers. So if Coca Cola did n’t hold a warm and affable civilization it would do more dissensions between staff and directors and staff would non be motivated to work, for illustration, staff may hold to cut down on remainder yearss, this could do statements as all staff would be tired from working mundane and would non hold clip to retrieve or pass it with their household. However, if the company had a warm civilization so the directors and staff would acquire really good as staff would hold less emphasis to vie with and would hold a friendly environment to work in without holding person invariably shout out at staff.

Organizational Structure

Every concern works utilizing an organizational construction, this means that the organisation has its staff organized in a certain manner depending on the staff, their duties and whom they must describe to. Cultures and direction manners play a monolithic portion in forming the construction.

As the Coca Cola Company is a big transnational company, it is made up of many organisational constructions, these are broken down into the different units that are located around the universe, which are ; North America, Africa, Asia, Europe, Eurasia and Middle East and eventually Latin America. Each unit is so organised into their ain organizational construction. The undermentioned construction shows the Coca Cola Company in the Great Britain. Then each of the different sections has their ain construction.

Marketing Organisational Structure

The construction of the selling section is rather simple and is every bit spaced out. It is a formal construction, which means that it has limited communicating channels, the pointers show the flow of

communicating, it is chiefly perpendicular flows of communicating. You can easy see no jobs in this construction as the span of control is spaced out and can easy be managed.

Measuring Coca Cola ‘s Success

Measuring Cola Cola ‘s success can be easy done. Their success can be seen by the quality of its merchandise and its gross revenues figures. At the current twenty-four hours, Coca Cola lead by holding the most popular and most consumed soft-drinks in the universe. The information that the company can utilize to mensurate their success can be many of the followers:

· Gross saless figures – In 1984, 77 of Coca Cola ‘s runing income came from soft drinks. Today the figure is 97.

* Market portion – Coca Cola, in 2000, took up 20.3 % of the undermentioned drinks. The chart shows that 89 % of gross revenues come from soft drinks, 50 % of the soft drinks gross revenues come from Coca Cola.

Market Share of 2000

Coca-Cola Classic 20.3 %

Pepsi 13.9 %

Diet Coke 8.6 %

Mountain Dew 7.1 %

Sprite 6.5 %

Dr. Pepper 6.2 %

Diet Pepsi 4.9 %

Seven-Up 2.0 %

Minute Maid Orange 1.5 %

Others 29 %

Entire 100 %

· Questionnaires – questionnaires can be used to inquire people their positions on Coca Cola and their merchandises. The assorted that can be asked is about the monetary values of the merchandise, the quality of it, etc. this information so can be assessed to see if the company is making it. The Company delivered solid consequences in 2003. They continued to work hard to re-activate the Company ‘s considerable

historical advantages:

Our geographic range, our fantastic trade names, our scope of bundles, our fiscal strength, our ability to do connexions, our selling and our invention capablenesss ‘ The company is ne’er satisfied, but they ever make solid advancement. In 2003, the company grew profitable carbonated soft-drink volume, led by Coca-Cola branded drinks. They had expanded the scope of juices and juice drinks, teas, athleticss drinks, Waterss and other uncarbonated drinks that they offer around the universe. Besides, they had improved their focal point on edifice trade names and working with clients and bottling spouses worldwide. The Coca-Cola system is working more efficaciously today, for consumers, clients, bottlers and our portion proprietors, than it has in a really long clip.

Use of ICT in the concern

Internal ICT Communications used by Coca Cola Coca Cola usage ICT to pass on both internally externally. This includes communicating with:

· Employees – Facsimile will be used to reach the employees because most employees will hold a facsimile machine in their office or wherever they will be working

· Management – If direction demand to be contacted so beepers would likely be the alternate to reach them, facsimile machine could be a factor as good.

· Customers – The lone ICT communicating used by Coca Cola to reach clients could be E-mailing, they could E-mail clients different merchandises or new sale ‘s etc.

· Distributors of Coca Cola – They would likely be contacted by Video conference because the distributers are really likely to be from other states instead so the state the concern is seeking to

consumer the merchandises from. Internal ICT Communications that Coca Cola usage are:

E-mail – Electronic mail will salvage a batch of clip within the concern if everybody would get down e-mailing alternatively of naming a meeting. Coca Cola staff has plans installed on their computing machines, which tells them one time they have received E-mail. This lets them pass on rapidly with one another. Staff within Coca Cola has entree to a computing machine where they can E-mail. The disadvantage of this type of communicating is that it is rather expensive, as it would hold to be on all twenty-four hours long. The advantage of this is that it is fast and information can be passed on rapidly. They can avoid the disadvantage by holding broadband where you pay a certain amount for limitless entree.

Fax – Faxing allows people to hold transcripts of paperss they may necessitate. Faxing is similar to e-mailing. But you do non have the messages on a computing machine but a facsimile machine. Messages can besides be sent via facsimile to state employees of pressing messages, meetings, memorandum ‘s, newssheets and import notices are amongst things that can be sent by via revenue enhancement. The advantage of this is that import paperss can be received rapidly but the disadvantage could by that non everyone within the concern would really hold a facsimile machine to utilize, or they may non look at it really frequently. these people to have information wherever they are at whatever clip. Beepers, in general are a good thing as it allows people to have information on the move. A disadvantage of this would by that you can non direct long messages, all messages must be short, and this could take to misconstruing of messages. Wordss may be shortened and this may take to more of confusion.


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