Background of Coca-Cola Company

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Coca-Cola Company was founded in the 1880s by its founder John Pemberton. It was viewed as an American iconic brand because of its high quality and consistency. During this time in history, pre-packed products with a brand name that could be easily recognized were greatly demanded by shopkeepers. Coca-Cola Company met all these demands due to its iconic white and red logo as well as its brand marketing hence it acquired many customers.

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Today Coca-Cola company is among the most well-known and reputable brands in the world gaining growth and momentum in the fast expanding beverage industry. It is currently ranked as the largest beverage company in the world. It operates in over 200 countries with as many suppliers as 84000. This is because of its push for global market share. Coca Colas 70% business income is generated from other sources other than ones in the US. Due to its rapid growth, the company has grown into a multi-million dollar business.

Despite its success, Coca-Cola Company has faced some challenges which it has been able to overcome in one way or another. Some of these challenges include:

Some countries have claimed that Coca-Cola products are posing a great threat to public health and encourage obesity. These claims have led to use of its products been banned in those countries.

Some different labor practice suits have been filed with the company with accusations of:

Child labor

Discrimination in providing its workers with health care benefits.

Many competitors have emerged in the industry who have introduced many alternatives to Coca Colas products. These alternative products include:



Bottled water

Fruit juice

Energy drinks

One of the major factors that has enabled Coca-Cola Company to overcome these challenges includes its ability to remain true and committed to providing its customers with quality, satisfying and refreshing products. The company is still meeting its goal to be the best Beverage Company in the world.

How globalization and technology changes have impacted Coca-Cola Company

According to the business dictionary, globalization is the process of interaction and integration among the people, companies and governments of different nations, a process driven by international and investment and aided by information technology.

On the other hand, technology is the application of scientific knowledge for practical purposes especially in industry.

According to Thompson & Martin (2010), Coca-Cola Company started to globalize in the early 1900s whereby it built bottling plants in Cuba and Panama to meet the rising demand for its products in these regions. Establishment of these plants aided in reducing shipping and delivery costs. Following the establishment of these two plants, three more plants were established in Hawaii, Puerto Rico and the Philippines. By 1926, the Company had established and strengthened foreign relationships and built plants around the world in support of its global operations. The Company continued its operations of mass production and rapid expansion for the next several decades. Among the key globalization strategies that have been employed by Coca-Cola Company leading to the positive impact on its operations include:

Global marketing strategies

Product differentiation

Packaging differentiation


Global market strategies:

Coca-Cola Company has employed very effective marketing strategies in selling its products to the world and this has played a very major role in globalizing the company. In its early years, the company came up with very popular advertising slogans as well as jingles that played and remained in the minds and hearts of many people around the world. Some of these slogans include:

Things go better with coke

Good to the last drop

Drink Coca Cola

Always Coca Cola


Life tastes good

Its the real thing

The most popular jingle was well known as I want to buy the world a Coke produced by Billy Davis in the year 1971. The Company continued to propel itself up especially when it ventured into the field of advertisement. In the year 1928, it became the first commercial sponsor of the Olympic Games that were held in Amsterdam. The Company has continued to sponsor many sporting events such as:

National Hockey League (NHL)

National Football Association (NFL)

National Basketball Association (NBA)

Cricket World Cup


Major League Baseball (MLB)

Product differentiation:

The Companys ability to customize its products in such a way that meet the needs and wants of individual market played a major role in Coca Colas globalization. The company has been successful in tailoring its products to meet the needs of its different consumers such as: younger consumers, health conscious consumers and older consumers.

For the younger consumers, Coca-Cola Company has managed to produce products that are well suited for them such as cherry coke and vanilla coke. For the health conscious and older consumers, the Company has been able to produce products such as: diet coke, vitamin water and Odwalla products. The Company has also been successful in understanding different market segments based on lifestyle, age and income, and this has given it an upper hand in developing and marketing its products (Hitt & Hoskisson, 2014).

Packaging differentiation:

This has also played a huge role in making sure that Coca-Cola Companys products are adaptable to various market segments. Through functional packaging, products are made available to customers in different sizes and forms including aluminum cans, fountain drinks dispensers and glass and plastic bottles. Its bottles and cans are designed in different shapes and sizes to facilitate easy stacking and vending machine dispensing. The company is highly committed to environmental sustainability hence their packaging materials are designed in a manner that they can be recycled effectively. Their packaging materials are also labeled in a way that it can easily be identified by their consumers.


Coca-Cola Company has embraced modern technology very well in all their operations. For example: They developed bigger and faster semi-trucks, cargo ships, trains and jet aircraft to transport their products around the world more efficiently and in a cost-effective manner.

Another thing is that technology has turned out to be a major driving force behind Coca-Cola Companys distribution centers and warehouses. Through technology they can track inventory levels as well as fill the order shipments. This has led to lower overall operating costs. Computerization and automated manufacturing equipment has also led to reduced product costs and has improved efficiencies. It also led to increased speed and volume of production. This technology advance enables Coca-Cola Company to compete on a global scale.

Application of the industrial organization model and the resource-based model to determine how Coca-Cola Company could earn above-average returns

To understand how the Company can apply industrial organization model to determine how it could earn above-average returns in the following manner, it is good first to understand how this model works. This model adopts an external perspective. It uses this perspective to explain how forces outside the organization influence the firms strategic actions.

Coca-Cola Company can employ this method by first, investigating the industry it is operating in and the present competitors that might impose pressure on its operations. This would be followed by determining strategies that would result in superior returns.

Below is a simple highlight of these steps:

Studying the external environment thoroughly

Locating a segment in its industry with the highest potential for above average returns

Selecting the strategy that suit that industry well and one that will bring the expected returns

Acquiring assets and skills necessary for the implementation of the chosen strategy

Nurturing and developing appropriate strengths needed in the implementation of the strategy.

How both the vision statement and mission statement of Coca-Cola Company influence its overall success

Coca-Cola Companys mission is:

To inspire moments of optimism and happiness through our brands and actions

To create value and make a difference

Refreshing the world in spirit, body and mind

And its vision that is divided into various sections include:

People: inspire each other to be the best we can be by providing a great place to work.

Portfolio: offering the world a portfolio of drinks brands that anticipate and satisfy peoples desires and needs.

Planet: being a responsible global citizen that makes a difference by helping to build and support sustainable communities.

Profit: Maximizing long-term return to shareholders, while being mindful of our overall responsibilities.

Productivity: Being a highly effective, lean and fast- moving organization.

The above mission and vision statements, has influenced Coca-Cola Companys overall success in a positive manner in the following way:

Winning in the market: The Company has continued to build on their market leading positions in their growth category. This is achievement is made possible by the fact that they clearly follow the letter their mission and vision statements that are their guide.

Engaging our people: Coca-Cola Companys employees are very passionate, dedicated to their work and they work very hard to ensure that the organizations vision and mission are met at all time.

Gaining efficiency: In the last two years, the Company has been able to reduce the number of their production lines by 10. They have done this without offering capacity potential and the number of warehouses and distribution centers by 17-307. They have also been able to achieve efficiency in operating expenses and at the same time supporting their business with the right advertising level.

Looking ahead: The Company is continuing to pursue its strategy while being aided by a wide range of planned actions. Their marketing initiatives and affordability are helping them to improve volumes as time goes by. This is helping them to overcome the negative effects of currency volatility and related uncertainty in their markets.

Creating shared value: The Company has been able to manage their business in a responsible and sustainable manner by ensuring that they earn trust through creating value for all its stakeholders.

Coca-Cola Company stakeholders impacts its overall success

Shareholders: Its shareholders have been on the first line of ensuring that the company grows as expected in achieving its goals and objectives. These shareholders keep the Companys management team and staff accountable for all their operations that are related to its welfare. They also act as the main funders in the Companys operations.

Employees: These employees ensure that they comply with the Companys rules and regulations when going about their day to day operations. This makes it possible for the organization to achieve its goals and objectives more efficiently and effectively.

Customers: Coca-Cola Companys customers include an international chain of retailers, restaurants and small independent businesses. The Company works closely with them to create mutual benefit as well as serving the rest of their customers by providing them with services and supporting their tailored needs.

Suppliers: The Companys suppliers have affected the Companys operations positively hence making it to progress and thrive well in the market as compared to its competitors. These suppliers have played a major role in ensuring that the Company achieves its goals and objectives especially on the campaign on the need to preserv...

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