COCA-COLA

Coca-Cola Introduction
INTRODUCTION
The Coca-Cola Company is the worlds largest beverage company, refreshing consumers with
almost 500 sparkling and still brands. The Companys brands include Coca Cola, Diet Coke,
Fanta, Sprite, Coca-Cola Zero, Vitamin Water, POWERADE, Minute Maid and Georgia Coffee.
Globally, Coca-Cola is the giant of the beverage industry worldwide. Through the worlds largest
beverage distribution system, consumers in more than 200 countries enjoy the Companys
beverages at a rate of nearly 1.6 billion servings a day.
FAST FACTS:
Sector: FMCG (Consumer Goods)
Industry: Beverage - Soft Drinks
Stock Symbol: KO
Established: 1886
Head Quarter: Atlanta, Georgia
Ranking: 4 of the worlds top 5 nonalcoholic sparkling beverage brands: Coca-Cola, Diet Coke,
Sprite and Fanta
Company Associates: 92,400 worldwide (as of December 31, 2008)
Operational Reach: 200+ countries
Consumer Servings (per day): nearly 1.6 billion
Beverage Variety: More than 3,000 products including diet and regular sparkling beverages,
and still beverages such as 100 percent juices, juice drinks, waters, sports and energy drinks, teas
and coffees and milk- and soy-based beverages.
VISION
Aspiration to be the most respected company in the world by:
Refreshing the world - every day, all day
We are invited into people's daily lives and are trusted to refresh their body, mind and spirit.
Being a truly Global Company
We are local and we are global, which makes us truly global and allows us to build unique
relationships between people.
Leading with humble confidence
We are determined to make a difference to the world - for our consumers, customers, bottling
partners and communities we serve.
MISSION
To Refresh: The world in body, mind and spirit
To Inspire: Moments of optimism through brands and actions
To Create: Value and make a difference in everywhere
Coca Cola came to Pakistan in 1953 under the insignia of Coca Cola Beverages Pakistan
Limited...

Global Issue
Land Rights
While our company does not typically purchase ingredients directly from farms, nor are we
owners of sugar farms or plantations, we acknowledge that as a major buyer of several
agricultural ingredients, we have a responsibility to take action and use our influence to help
protect the land rights of local communities. We are committed to being part of a solution in
addressing land rights issues in our supply chain. In November 2013, our Company announced a
set of industry-leading commitments to protect the land rights of farmers and communities in the
worlds top sugarcane-producing regions and to advance our ongoing efforts to drive
transparency and accountability across our global supply chain. The commitments build on the
company's Sustainable Agriculture Guiding Principles announced in July of 2013.
Our commitments include zero tolerance for land grabs, adherence to the principle of Free, Prior
and Informed Consent, and disclosure of the top three countries and suppliers of cane sugar. In
addition, we have a strategy and action plan in place that includes conducting human rights due
diligence studies focused on forced and migrant labor, child labor and land rights issues in a
number of key countries. The human rights due diligence studies are being conducted by thirdparty research and auditing firms and involve extensive local stakeholder engagement in each
country. The results of the studies will give us a factual basis to engage with industry,
government and NGOs to mitigate human rights impacts, as needed.

Child Labor
Our Human Rights Policy and Supplier Guiding Principles prohibit the use of child labor. While
there is no child labor in our Company-owned operations, we are aware that child labor persists
deep in supply chains, for instance at the farm level. Our Company does not typically purchase
ingredients, such as sugar, directly from farms, nor are we owners of sugar farms or plantations,
but as a major buyer of sugar and other agricultural ingredients, we are taking action and using
our
influence
to
help
end
child
labor
in
sugar
cane
fields.
Our approach is both global and local. At the global level, we set corporate policy, convene
experts, and engage with governments, NGOs and other companies. At the same time, we
collaborate with suppliers, industry groups and local stakeholders to address the issue with
farmers. In recent years, we have joined collaborative efforts in El Salvador that have
dramatically reduced child labor in cane fields. We are also taking action in Honduras, Mexico,
the Philippines, Bolivia, the Dominican Republic and 14 other countries. Recent developments:

Hours of Work
Compliance with local work hours and overtime laws is a fundamental component of our Human
Rights Policy and Supplier Guiding Principles. Reducing overtime can increase employee morale
and decrease quality incidents thereby improving business results and fostering a Great Place to

Work. To help our bottlers and supply partners manage this issue we seek to understand the root
cause and help identify solutions which can be provide win-win opportunities. In a number of
countries we carefully tracked overtime to identify causes and then developed a guidance
document to provide facilities with practical strategies to reduce overtime as well as real case
studies to demonstrate that success is possible.

Contract Labor
Our Company and bottling partners, like many businesses, employ contract and agency labor.
There are many legitimate uses of contract labor, and we expect contract workers, through thirdparty providers, to continue to play an important role in our business. Through enhancements to
our Supplier Guiding Principles assessments in 2012 our Company is holding more contract and
agency labor suppliers accountable for the ethical treatment of these workers.
Our commitment to human and workplace rights, as well as our commitment to operating a
sustainable business, compels us to respect the rights of all workers, including those not directly
employed by our Company or bottling partners. We expect our personnel and our bottling
partners to understand the risks associated with contract labor and to carefully manage the labor
agencies engaged. We also expect them to provide training, a safe work environment and to
avoid
using
termination
practices
that
circumvent
legal
obligations.
We take a number of steps to ensure responsible engagement of the contract and agency workers
we employ, including:

Our Human Rights Policy and Supplier Guiding Principles outline our
commitments and expectations for treatment of all workers. Any allegation of
worker abuse-including abuse of contract laborers-is a very serious issue that
we fully investigate.

We conduct continuous assessments of our operations and of key authorized

contract labor suppliers to ensure the responsible treatment of contract
laborers.

We engage with key stakeholders to understand their perspective regarding

potential abuse of contract workers. The subject of contract and agency labor
is a standing agenda item for our semiannual meetings with the IUF. Through
these meetings, we have successfully addressed a number of concerns
regarding contract workers in India, Pakistan and the Philippines.

We provide our largest bottling partners with contract labor risk-mitigation

checklists and other tools to help them manage contract labor appropriately.

Workplace Safety
Every worker has a fundamental right to a safe and healthy workplace. Our Human Rights Policy
demands we take responsibility for maintaining a productive workplace by working to minimize

the risk of accidents, injury and exposure to health risks for all of our associates and contractors.
Details of our Workplace Safety Record are included in the Workplace Safety section of our
current Sustainability Report. Following are key points

The Coca-Cola Operating Requirements (KORE) define the policies, standards

and requirements for managing safety, the environment and quality
throughout our operations.

To guide us in achieving a safe work environment for our associates, KORE

defines a rigorous set of operational controls to manage known risks.

Quality
We measure key product and package quality attributes by focusing on ingredients and materials,
and regulating manufacturing, bottling and distribution, of The Coca-Cola Company products to
ensure those products meet Company requirements and consumer expectations in the
marketplace.
As The Coca-Cola Company expands our beverage portfolio and supplier base to meet the
increasing demands of growing and developing markets around the world, customer and
consumer expectations and regulatory scrutiny continue to rise. The global nature of our business
requires that the Coca-Cola system has the highest standards and processes to ensure consistent
quality -- from our concentrate production to our bottling and product delivery.
To ensure such consistency and reliability, the Coca-Cola system is governed by the Coca-Cola
Operating Requirements (KORE), a new management system which replaced The Coca-Cola
Management System (TCCMS) in January 2010. KORE enables the Coca-Cola system to
address the changing business landscape while supporting our Company's strategic growth plans
by creating an integrated quality management program which holds all of our operations, system
wide, to the same standards for production and distribution of our beverages.
KORE guarantees the highest standards in product safety and quality, occupational safety and
health and environmental standards across the entire Coca-Cola system by outlining clear
requirements for the policies, specifications and programs that guide our operations. With
endorsement from leadership throughout the Coca-Cola system, KORE integrates business and
quality objectives and aligns them with consistent metrics to monitor performance; integrates
preventive action as a management tool with more rigorous demands when introducing new
products and services; incorporates Hazard Analysis and Critical Control Points (HACCP) into
our system standards; manages risk in our Company, bottling operations and across our supply
chain; and defines problem-solving methods and tools to drive consistent quality with
improvements.

To stay current with new regulations, industry best practices and marketplace conditions, we
consistently reassess the relevance of our requirements and guidelines not only in manufacturing,
but throughout the entire supply chain. We continually refine our requirements to further insure
that KORE embodies the most recent and stringent manufacturing processes.
To establish a governance process, each business within the Coca-Cola system implements,
documents and maintains a safety and quality system in accordance with KORE requirements.
Compliance to KORE requirements and guidelines is monitored system wide to further support
the integrity of our products.
Ensuring the safety and quality of our products has always been at the core of our business and is
directly linked to the success of The Coca-Cola Company. Our Company's Global Product
Quality Index rating has consistently reached averages near 94 since 2007, with a 94.3 in 2010,
while our Company Global Package Quality Index has steadily increased since 2007 to a 92.6
rating in 2010, our highest value to date.

Coca cola Company, Changes and challenges

Organisation Description and background
The Coca Cola Company is the most valuable brand name and worlds largest non alcoholic
beverage company. This company was founded in 1886 in united state of America. Now it
operates in more than 200 countries. Coca cola also distributes juice, energy drinks, water, and
coffee. The company has partnership with more than 300 bottling and canning company
worldwide. Who produce and sell coca cola beverages worldwide. The bottling partners are
responsible for consumer brand marketing initiatives, handle manufacturing and merchandising.
John pemberrtion invented the original recipe of cocawine. Which was inspired by vin mariani, a
popular cocawine invented by Angelo mariani. John Pemberton developed coca cola which was
non alcoholic version of cocawine. When Pemberton was making drinks for his friend accidently
he added carbonated water. His friend liked the test and he adjusts the formula. In 1888 company
sold by three companies. Calder purchased one company with exclusive rights to the cocla cola
formula from Woolfolk Walker, margate dozier and john Pemberton cut out of competition. In
1982 company started marketing the product and achieved status of national icon for the USA by
its 50th anniversary. Coca cola started sold bottles in 1894 and cans in 1955. In 1899 Coca Cola
Company made first bottling agreement with Chattanooga and Tennessee. In 1985, company
introduce new coke by changing original formula. Most consumers preferred the test of original
coca cola. Many people stop to buy the Product then company shift back to its original Formula.

Coca Cola Business Environment

Over the past years, Coca Cola Company has faced lots of changes in the business environment.
Company create counterpart with American sweet test product however, it was commercial
failure and coca cola change its strategy and return back to its old formula. Consumers become
more health conscious then company lunch new product to address consumer needs, such as diet
coke and coca cola zero. Company bought bottling business in South Korea which allow to
access in retail store as well as makes easy to entry in Japan, Malaysia and china. Moreover,
china is now largest coke consumer in world. In 2007 coca cola output of coke in china was
3.6bn tons and it was export 15.3 m tons. By the end of 2007 coke total production in china was
360 million tons. In addition, from 2008 to 2009 company introduced new plant which capacity
was 20 million tons. The target of chinas coke industry is export large quantity of production
countries such as, India, Brazil, Belgium and Japan. In 2007, china export to Japan 22% of its
total production. This report shows development and positive change in environment of cokes
industry in china.
Political factors:
Coca cola, the non alcoholic beverages falls in the category under the FDA (food and drugs
administration) and government has power to set fine for the coca cola company that didnt
meet their standard law requirement. The charges in laws and regulations, such as taxation
requirements, environmental laws and foreign jurisdictions can affect to their entry in foreign
land. The changes in non alcoholic beverage Business Company might get pricing pressures,
competitive product and their ability to maintain the share in global market. In international
market if government change frequently their might be restriction to transfer funds from one
country to another. However Coca Cola Company is fallowing the rules and regulation set by
government. Since last two years government is so conscious about the environment. Company
adjustments in planets and proper way of wastage settlement the chance of affected by the
protection laws are decline. Political conditions are overall leave natural effects on coca cola
industry. It impact good for the cock reputation.
Economical factors:
Economic analysis explores national and world economy impact as well as inflation and
recession. Economic factors are those factors that affect the production and sales of the company.
If the economy condition is not good at that time coke decide to increase its price it would
impact very negative in the production of Coke. Non alcoholic beverage industry has highly
sales outside the USA. There has been improvement in soft drink Company in major
international markets like Brazil, Germany and Japan. These markets play great role to growth of
non alcoholic industry.

The country like Pakistan where is the unemployment rate is very much high. In Pakistan coca
cola company employs1800 people. During the last two years, the company in Pakistan has
involved $130 million. If economic variables are positive of country it impact good otherwise the
impact is bad.
Social factors:
Many people are spending healthier lifestyle. Change in lifestyle, population growth rate and
carrier attitudes affect non alcoholic industry so that many people like to have bottle water and
colas instead of beer. The need of healthy products, bottle water, and juice is more important in
the daily life.
Consumers from the age of 37 to 55 are more concerned with nutrition. Older age people are
becoming more concerned with increasing their long life. This kind of social trend can affect on
demand of non alcoholic beverage industry. Increase in awareness among consumer and modern
life style might be challenge to the coca cola company. However, company recognized the
consumer needs and began to produce diet coke, like beverage, juice and sport drinks. Many
nutritionists advise that maximum consumption of coca cola might be harmful to health
especially to young children. Drinking of coca cola daily can effect on health after few years.

Technology factors:
The technology of television and internet which affects companies advertising, marketing and
promotional programs. Media advertise product attractively it helps to increase sales of the
product. Introduction of plastic bottles and cans have increased the sales of coca cola. It is easy
to use and bin them. The advancement in technology led to company crate new product like
cherry cock in 1985 but consumer prefers original test of coca cola so that some time technology
can affect badly.
Coca Cola Company introduces new technology all the time because of introduction of new
machine company production level increase tremendously. Ardagh glass is the latest
technological achievement by Coke Company which is environmentally friendly bottle. It has
won several awards for its light weight.

Changes and Challenges:

The non alcoholic industry is competitive. Company should carefully consider below factors
which affect financial condition and its future result.

Awareness may reduce demand of coke:

Government officials and consumers are more concerned and aware about health. Many press
reports indicate that lawyers and consumer advocates have threatened by company. Furthermore,
misleading exercise related to contract to sell soft drink in school. Consumers are more aware
about these issues and negative publicity in media may reduce the sales of carbonated beverage.
Increase in competition:
The non alcoholic beverage industry is highly competitive. Coke have to compete with
international companies as we as local companies where it function. In many countries where
coke operates including USA, Pepsi is a primary competitor in the market. Coke capability to
maintain the sales of share or get profit in the global market or various local markets may be
limited because of competitors.
Water scarcity and poor quality
Water is main ingredient for Coca Cola Company. Many part of the world it is also limited
resources. Company consume huge amount of water per year. Demand of water increase around
the world and quality of available water decline this will increase the production cost of the
company and affect on profit.
Change in non alcoholic beverages business environment:
The business of non alcoholic beverage has been changing because of Consumers life style,
emerging views of health and nutrition, changing consumer needs and preferences, increase in
similar products and price factor. Furthermore, the beverage industry is being affected by the
intermediates, especially in USA and European countries. If Coca Cola Company is not able to
change along with changing business environment it will effect on company profit and sales of
share.
Increasing in cost of energy:
Coca cola Company bottling partners operates huge number of trucks and other vehicles as well
as they use large quantity of electricity, gas and other energy sources to function the bottling
company. Day by day price of fuel is increasing it will increase in the production cost of coca
cola company. So it will affect the company profit.
Weather condition:
Weather influence the sales of the coca cola where company function. In summer more people
prefer cold drinks such as juice and sprite however, in winter the demand of product decrease.

Some part of world where most of month temperature is always high in those places
consumption of coca cola is maximum.
Conclusion:
The coca Cola Company keep on refresh everybody its touches. The product of company has
multiply to approach of cultural gratitude and understand, this is main key factor that company
introduce its product worldwide. Company entry and development in international market will be
faster. Coke commitment to remain at changing environment proved that they are the superior
among other non alcoholic product. Awareness of environmental issues and health care might
impact on the sales of the company however; creative idea and strategy help to grow the
business. Coke has developed the entire vital component to expand their business in long term.
7. Recommendation
Reward system is an effective technique to motive employee in changing environment of the
organisation. Coca Cola Company should apply reward system to its employees so that it will
increase in productive and sales. Reward system can be financial or non financial nevertheless,
company have to give fair importance to all level employees. Reward system of coke must be
functional to make employees devoted to organizational goals. In addition, Training and
development programme must be use to groom career of their employees at top to bottom level.
Coca Cola Company has to declare some amount of money for training and development
purpose. Monthly training session raise the productivity of the organization.
Relationship with consumer is vital for Coke Company in some country where Business is
controlled by the authorities, in those countries there is a lack of consumer relationship which
need to improve. Coke need to market segmentation in new country where company is planning
to introduce the product because consumer need, test is different from another country. By doing
market segmentation company can serve effectively to its consumers. Demographic factor should
be considered by Coca Cola Company. Culture, tradition and characteristics of consumer in new
country might be different; it gives information to the company to change certain plans. There
are some factors such as climate, test and culture Affect Company directly or indirectly so
individual company need to apply their own strategic and management style to increase the sales
of coca cola. Dividing a market in to direct groups of buyers who might require separate
marketing mixes; the process of classifying consumers into groups with different needs,
characteristics and behavior ( Kotler, 2001).
Reference:
Sheikh, s.2006 Business environment press sanat printers New Delhi

By
TR
Jain,
Mukesh
Trehan,
Ranju
Trehan
2009
business
environment(http://books.google.com/books?
id=AgWNmP4blhoC&pg=PA21&dq=what+is+business+environment&hl=en&ei=WRdcTMlKIi74gaos5HwAQ&sa=X&oi=book_result&ct=result&resnum=3&ved=0CD0Q6AEwAjgK#v=
onepage&q&f=false
Kotler, P. and Armstrong, G. (2001). "Principles of Marketing" (9th Ed.). Prentice-Hall India
Kotler, 2001 p. 46).
http://www.thecoca-colacompany.com/investors/pdfs/10-K_2005/Coca-Cola_10K_Item_01a&b.pdf
By
TR
Jain,
Mukesh
Trehan,
Ranju
Trehan
2009
business
environment(http://books.google.com/books?
id=AgWNmP4blhoC&pg=PA21&dq=what+is+business+environment&hl=en&ei=WRdcTMlKIi74gaos5HwAQ&sa=X&oi=book_result&ct=result&resnum=3&ved=0CD0Q6AEwAjgK#v=
onepage&q&f=false
http://www.chinadaily.com.cn/business/2009-07/13/content_8420666.htm