Management Proj 1.docx

Done by: Sara Khaled ID: 201700836 Reem Ghoson ID: Subject: Management Project

Introduction The Coca-Cola Company, a retailer, manufacturer and marketer of non-alcoholic beverages, is a market leader in its industry currently offering more than 500 brands in over 200 countries or territories. The company operates a franchised distribution system dating from 1889 where the Coca-Cola Company only produces syrup concentrate which is then sold to various bottlers throughout the world who hold an exclusive territory. The Coca-Cola Company headquartered in Atlanta, Georgia owns its anchor bottler in North America, Coca-Cola Refreshments. Mission and Vision: Coca Cola’s roadmap begins from a mission statement that is enduring. It not just declares the soda giant’s purpose of existence but also serves as the measure against which it weighs its actions and decisions.

The company’s mission is to continue thriving as a business over the next ten years and beyond. a. To refresh the world. b. To inspire moments of optimism and happiness. c. To create value and make difference.”

Compared to its mission statement, the vision statement of Coca Cola is far more detailed and finely laid down. The six P’s in its mission statement are like six sacred stones that guide its everyday decisions and every aspect of its business. It describes what the company needs to do to achieve sustainable and quality growth. People: Be a great place to work where people are inspired to be the best they can be. Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people’s desires and needs. Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value. Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities. Profit: Maximize long-term return to share-owners while being mindful of our overall responsibilities. Productivity: Be a highly effective, lean and fast-moving organization.

Values and Ethics The Coca-Cola FEMSA´s main values are the following: 1. RESPECT AND INTEGRAL DEVELOPMENT OF COLLABORATORS We encourage respect and integral development of the collaborators and their family, for them to have access to better opportunities, fostering with it his/her economic, professional, and social growth. 2. INTEGRATY AND AUSTERITY We act in an honest and responsible manner, adhering to the ethical principles, being aware of the impact of our actions and decisions. We are judicious in our behavior and the use of company resources. 3. PASSION FOR CUSTOMER SERVICE We are focused on identifying and meeting the needs of our customers, always seeking their preference through innovating solutions. 4. SOCIAL VALUE CREATION We contribute to positively transform our communities through the simultaneous creation of economic, social, and environmental value. Coca-Cola’s values serve as a compass for its actions and describe how it behaves in the world. These values include:

 “Leadership: The courage to shape a better future  Collaboration: Leverage collective genius  Integrity: Be real  Accountability: If it is to be, it's up to me  Passion: Committed in heart and mind  Diversity: As inclusive as our brands  Quality: What we do, we do well” Focus on the Market

 “Focus on needs of its consumers, customers and franchise partners  Get out into the market and listen, observe and learn  Possess a world view

 Focus on execution in the marketplace every day  Be insatiably curious” Work Smart

 “Act with urgency  Remain responsive to change  Have the courage to change course when needed  Remain constructively discontent  Work efficiently” Act Like Owners

 “Be accountable for our actions and inactions  Steward system assets and focus on building value  Reward our people for taking risks and finding better ways to solve problems  Learn from our outcomes -- what worked and what didn’t” Be the Brand “Inspire creativity, passion, optimism and fun.”

Ethics:

The core of the ethics and compliance program at The Coca-Cola Company is our Code of Business Conduct. The Code guides our business conduct, requiring honesty and integrity in all matters. All of our associates and directors are required to read and understand the Code and follow its precepts in the workplace and larger community 1. We have a loyal, respectful, diligent and honest conduct. 2. We recognize human dignity and we respect personal freedom and privacy. 3. We are under moral obligation to respect and protect our personnel. 4. We do not discriminate anyone by origin, race, marital status, age, political opinion gender, creed, tribal association, union membership, social or economic status, pregnancy, sexual orientation, disability, illness, and nationality or immigration status, in accordance with the applicable laws of each country. 5. We condemn, forbid and report all types of harassment in and out of our workplace. 6. Through open communication and proper mechanisms implemented in accordance with the provisions set forth in this Business Code of Ethics, we promote and facilitate the detection of illegal practices and/or inappropriate conduct. 7. Under no circumstance do we fire, suspend, humiliate, threaten, harass, interfere their right of employment or discriminate in any way any person who provides information, helps to provide information, or collaborates in an investigation where breach of the provisions of FEMSA’s Corporate Policies or violations to this code are presumed. 8. We prevent groundless allegations against an innocent person. 9. We comply with this code, the policies, rules and procedures established by Coca-Cola FEMSA’s Management and with applicable laws, regulations and provisions of the countries where we operate, because we try to be an example of culture of lawfulness. 10. We do not engage in any activity intended to restrict trade or refuse to do business with customers or suppliers who share our ethical values and who have a solid reputation. 11. We comply with the anti-money laundering provisions enacted in the countries where we operate.

12. We do not comment (within our family or our society) about the activities we perform within the company or making any comments that may be detriment the company or it’s personal 13. We protect and preserve the tangible and intangible assets of the company, and we make an efficient use to contribute to achieve the business goals and we do not use them for personal gain. 14. We do not disclose confidential information regarding processes, methods, strategies, plans, projects, technical or market data, or information of any other kind. 15. We do not use or the resources of Coca-Cola FEMSA for personal gain. 16. We try to avoid all contact with dishonest people who may damage or attempt to damage the company. 17. We do not do activities outside the company that may affect our capacity and willingness to meet the obligations we have in Coca-Cola 18. Those who are involved in political activities of any kind shall not involve FEMSA while performing those activities by clearly stating that they are acting as individuals and not as a representative of Coca-Cola FEMSA, since Coca-Cola FEMSA does not influence, support, or contribute to politicians, political parties or candidates for political office. 19. We do not grant loans or finance to the Members of our Board of Directors or to any Senior Officers. 20. We report promptly any violations to this code

Strategies: The Coca-Cola Company aims to be globally known, they do this by targeting different areas across the globe with different products, gaining their brand name and popularity. The company often reviews and evaluates their business plans and performance to improve their earnings and analyze their competitive position in the market. Coca-Cola’s grand strategies are focused on achieving its long term objectives. It falls in the first quadrant of the model of grand strategy cluster. This means that in order for Coca-Cola to achieve its long term objectives it must include in its grand strategy: Concentrated growth, market development, product development, vertical integration, innovation and concentric diversification We are building on our fundamental strength in marketing and innovation that increased efficiency and effectiveness in interactions Exploring new ways to create and share beverages to energize, relax, hydrate and enjoy constantly looking ahead to find what the communities may need and gathering resources to support them Expanding productivity Coca-Cola’s strategy focuses on three specific areas, with the first one being concentrated growth. Dominance in the beverage industry allows Coca-Cola to control a larger proportion of the non-alcoholic beverage industry. The second area of its strategy is product development; in recent months it entered into the fluid milk market. The third area of its strategy is concentric diversification. In 2007 it acquired Glaceau, the maker of vitamin water; this allows Coca-Cola to

expand its product portfolio.

Organization structure of Coca Cola: Coca-Cola is “Tall” in terms of organizational complexity. Coca-Cola is controlled through a vertical hierarchy, with decision-making authority residing with the company’s upper management. Daily and routine decisions are made by the line managers at the middle level Coca-Cola has more than 700,000 system employees, including their bottling partners. The company’s operations reach over 200 countries worldwide, with six geographic operating segments. Coca-Cola’s head office is responsible for providing the company with an overall direction and support to the regional structure. The company’s Executive Committee makes key strategic decisions for the company. The Chair of the Executive Committee acts as a figurehead for the company and chairs the board meetings. He is also the CEO and is the senior decision maker Each division of the company has a marketing manager, public affairs director, finance director, etc. When one of these divisions is planning to do something, an advertising campaign for example, the division has to communicate with their superiors to get approval. Since the company’s hierarchy is so tall, communication has to travel back to corporate headquarters in the U.S, where the Executive Committee has the final decision making power for activities the divisions have proposed.

Organizational Culture: Coca cola’s culture is strong because their key values are deeply held and widely shared Employees accept the organization’s key values and greater their commitment to those values, so culture becomes stronger. Important aspects of culture at Coca-Cola are an emphasis on teamwork, innovation and empowerment. Coca-Cola sees its employees as its most important asset. Motivated employees provide the Company's growth. Role culture is the culture that Coca-Cola adopts. This is where all members have a defined job or role to carry out. Organizing people into teams (e.g. marketing, sales or product teams) encourages people to feel valued. Within a team they are encouraged to contribute ideas and to be innovative. Leadership style and motivational style

Coca-Cola Company gives high attention to the motivation of the employees. Promotions of hardworking employees are a part of the company’s policy. Promotions of employees are done on the performance basis which is a great motivation for the employee that higher his performance there is more chance of his promotion. Beside from promotion strategy the Coca-Cola Company also uses the compensation strategy to motivate the employee; Coca-Cola is paying industrial average in compensation. Not only this different campaigns and competitions between the employees itself are also used to motivate the employees. Managers play a very important role in the motivation of the employees in Coca-Cola Company. They help them in all their problems either they are personnel or professional. They give them feedback on their performance which makes the employee feel good. Working environment and a challenging milestone are a major factor in employee motivation in the company Leaders at Coca-Cola have created a clear and compelling vision for their organization, and work to inspire their people to achieve that vision. Leadership: In July 2008, Muhtar Kent became the chairman and chief executive officer of Coca-Cola. Kent is of Turkish and American decent. He first started working in with Coca-Cola in Atlanta in 1978. In 1989, he served as President of the Company's East Central Europe Division and Senior Vice President of Coca-Cola International, with responsibility for 23 countries. For effective leadership, there can be no substitute for strategic thinking and tireless, relentless execution. There can be no alternative for attracting and retaining the absolute best people to lead and creating a dynamic environment for them. And there can be no job more important than communicating effectively with your customers and all your key stakeholders. Coca-Cola achieves this by formulating a clear and compelling vision, getting their system aligned behind it, executing and constantly communicating intentions. SWOT Analysis: Strengths in the SWOT of coca cola 1. Brand Equity – Interbrand in 2011 awarded Coca cola with the highest brand equity award. Coca cola with its vast global presence and unique brand identity is definitely one of the costliest brands with the highest brand equity. 2. Company valuation – One of the most valuable companies in the world, Coca cola is valued around 79.2 billion dollars. This valuation includes the brand value, the numerous

factories and assets spread out across the world and the complete operations cost and profit of Coca cola. 3. Vast global presence – Coca cola is present in 200 countries across the world. Chances are, any country that you go to, you will find coca cola present in that market. This vast global presence of coca cola has also contributed to the building of the mammoth brand name. 4. Largest market share – There are only 2 Big competitors in the beverage segment – Pepsi and Coca cola. Out of these 2, coca cola is the clear winner and hence has the largest market share. Amongst all beverages, Coke, Sprite, Diet coke, Fanta, Limca and Maaza are the growth drivers for Coca Cola. 5. Fantastic marketing strategies – Coca cola unlike Pepsi always tries to win peoples heart. Where Pepsi’s target is continuously changing, and is targeted towards youngsters, Coca cola targets people of all ages. The targeting is also done by celebrities who are well liked 6. Customer Loyalty – With such strong products, it is natural that Coca cola has a lot of customer loyalty. The products mentioned above like Coca cola and Fanta have a huge fan following. People will prefer these soft drinks over others. Because of the good taste of Coca cola, finding substitutes becomes difficult for the customer. 7. Distribution network – Coca cola has the largest distribution network because of the demand in the market for its products. On the other hand, due to this successful distribution network, Coca cola has been able to command such a high market presence. Weaknesses in the SWOT of coca cola 1. Competition with Pepsi – Pepsi is a thorn in the flesh for Coca cola. Coca cola would have been the clear market leader had it not been for Pepsi. The competition in these two brands is immense and we don’t think Pepsi will give up so easily. 2. Product Diversification is low – Where Pepsi has made a smart move and diversified into the snacks segment with products like Lays and Kurkure, Coca cola is missing from that segment. The segment is also a good revenue driver for Pepsi and had Coca cola been present in this segment, these products would have been an additional revenue driver for the company. 3. Absence in health beverages – If you watch the news, you would know that obesity is a major problem affecting people nowadays. The business environment is changing and people are taking measures to ensure that they are not obese. Carbonated beverages are one of the major reasons for fat intake and Coca cola is the largest manufacturer of carbonated beverages. The inference is that the consumption of beverages in developed countries might go down as people will prefer a healthy alternative. 4. Water management – Coca cola has faced flak in the past due to its water management issues. Several groups have raised lawsuits in the name of Coca cola because of their vast

consumption of water even in water scarce regions. At the same time, people have also blamed Coca cola for mixing pesticides in the water to clear contaminants. Thus water management needs to be better for Coca cola. Opportunities in the SWOT of coca cola 1. Diversification – Diversification in the health and food business will improve the offerings of Coca cola to their customers. This will also ensure that they get better revenue from existing customers by cross selling their products. The supply chain which is distributing their beverages can also distribute these snacks thereby sharing the load of Supply chain costs. 2. Developing nations – Although developed nations have a high presence of Coca cola, these countries are slowly moving towards healthy beverages. However developing countries are still being introduced to the delight of carbonated drinks and soft drinks. Countries like India which are developing and have a hot summer, find the consumption of cold drinks almost doubled during summers. Thus the higher consumption in developing environments can be a good opportunity to capitalize for Coca cola. 3. Packaged drinking water – With hygiene becoming a major factor in the consumption of water, packaged drinking water has found its way into peoples mind. Coca cola has a presence in the packed drinking water segment though Kinley. Although Kinleys expansion is slow as of now, Kinley has a huge potential of expansion. Thus Coca cola as a company should focus on the expansion of Kinley as a brand and take it up to Bisleri‘s level of trust. 4. Supply chain improvement – Supply chain can be a major cost sink hole with the transportation costs always rising. Coca cola’s complete business is based on transportation and distribution. There will always be possible improvements in this area. Thus Coca cola should keep strict watch on its Supply chain and keep improving to bring the cost down. 5. Market the lesser selling products – In the product portfolio of Coca cola, there are several products which have not found acceptance in the market. Coca Cola needs to concentrate on the marketing of these products as well. It is understood that Coca cola has made several expenses to launch these products. Thus, the marketing and subsequent rise of sale of these products will help revenue of Coca cola. Threats in the SWOT of coca cola 1. Raw material sourcing – Water is the only threat to Coca cola. The weakness of Coca cola was the suspected use of pesticides or vast consumption of water. However, the threat here is that water scarcity is on the rise. With the climate changing, and regions of various countries facing scarcity of water, sooner or later someone might raise fingers on beverage companies. Thus, Water sourcing is an axe which can fall anytime on the head of Coca cola. If water is limited or rationed, Coca cola can experience a major downfall in their revenue and capacity of distribution. The same can affect its arch rival Pepsi as well.

1.2. Indirect competitors – Coffee chains like Starbucks, Café coffee day, Costa coffee are on the rise. These chains offer a healthy competition to Coca colas carbonated drinks. They might not be a big competition for Coke, but they do give a dent to its beverage market. Similarly, health drinks like Real and Tropicana as well as energy drinks like Red bull and Gatorade are stealing away the market share indirectly Competitive analysis We should realize that we share similar strategy and objectives as Pepsi which means that innovation is a way it differentiates and creative advertising are that much important to keep us above the competition. Maintain Globalization by researching Pepsi’s Strategies that are currently working as they compete for market share and see if we can effectively implement the same strategy or a better one. Continue the trend of increased advertising to do what we do the best, dominate market share with superior tactics Overall measurements of success: The Coca-Cola Company measures success in many ways. The Coca-Cola Company believes that if they analyze sales based on volume growth, it is an indicator of trends at the consumer level. The company obviously looks at profit as a way to measure success. Recently, The Coca-Cola Company has been focused on being a more responsible global citizen. The company has over 70 clean-water projects in countries all across the globe.