Coca Cola Final Project of Strategic Management

COCA COLA
FINAL
PROJECT OF
STRATEGIC
MANAGEMENT
Phase 1 – Introduction, Phase 2 –
External Analysis of Coca Cola Beverages
Pakistan, Phase 3 – Internal Analysis:
Organizational Perspective, Phase 4 – Gap
Analysis & Recommendations
COCA COLA COMPANY

COCA COLA FINAL PROJECT OF STRATEGIC MANAGEMENT
Table of Contents
1 Phase 1 – Introduction .................................................................................................. 4
1.1 Introduction of a Company ................................................................................... 4
1.1.1 Brief History.................................................................................................... 4

1.1.2 International / National Introduction ............................................................... 6
1.2 COCA COLA BEVERAGES PAKISTAN LIMITED ......................................... 7
1.2.1 Vision, Mission, Core Values, Goals .............................................................. 9

1.2.2 Nature of Business ........................................................................................ 12
1.2.3 Type of Ownership ........................................................................................ 12
1.2.4 Identify Key Players and Roles ..................................................................... 12
1.2.5 Organizational Hierarchy .............................................................................. 21
1.2.6 Location(s) of Facility ................................................................................... 24
1.2.7 Number of Technical Employees .................................................................. 25
1.2.8 Products / Services (single product) .............................................................. 27
2 Phase 2 – EXTERNAL ANALYSIS OF COCA COLA BEVERAGES PAKISTAN
31
2.1 Natural Environment: .......................................................................................... 31
2.1.1 Natural Resource Coca Cola need................................................................. 31

2.1.2 Present and Future needs of Natural Resources ............................................ 31
2.1.3 International Arrangement of Water ............................................................. 34
2.1.4 Issues they face during arranging and managing .......................................... 36
2.2 Task Environment: Porter’s 5 Forces Model ...................................................... 38
2.2.1 When (situation), Why (objective / reasons), How (process), who

(participants), Issues faced .................................................................................................... 38
2.2.2 In what format they collected the data of Porter’s Analysis ......................... 38
2.2.3 What benefits they get from conducting PORTER’s Analysis ..................... 38
2.3 Societal Environment: PESTEL Analysis ........................................................... 60
3 Phase 3 – Internal Analysis: Organizational Perspective ........................................... 65

3.1 Vision / Mission / Core Values (discuss separately) ........................................... 65
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3.1.1 Vision ............................................................................................................ 65

3.1.2 Mission .......................................................................................................... 66
3.1.3 Core Values ................................................................................................... 67
3.2 Organizational Policies ....................................................................................... 68
3.2.1 CLIMATE CHANGE POLICY .................................................................... 68

3.2.2 CODE OF BUSINESS CONDUCT(INTEGRITY IN THE COMPANY)... 69
3.2.3 GUIDANCE FROM CORE COMPLIANCE OFFICER ............................. 70
3.2.4 ENVIRONMENTAL POLICY ..................................................................... 74
3.2.5 HUMAN RIGHTS POLICY ......................................................................... 75
3.2.6 POST-CONSUMER PACKAGING WASTE MANAGEMENT POLICY
STATEMENT....................................................................................................................... 77
3.3 Organizational Culture ........................................................................................ 78
3.3.1 How Policies and Core Values are helping in developing culture in their
organization (examples) ........................................................................................................ 78
3.3.2 What Factors are Influencing their culture and How .................................... 79
3.3.3 Through what method(s) keep the culture alive ............................................ 81
3.4 Organizational Structure ..................................................................................... 81
3.4.1 Degree to which organizational design elements exit in company structure 81

3.5 Core competencies .............................................................................................. 83
3.5.1 What are the company-wide core competencies ........................................... 83

3.5.2 Which and How capabilities are linked with each core competency ............ 83
3.5.3 Which and How resources are linked with each capabilities ........................ 83
3.5.4 On the basis of market analysis (Phase 2), evaluate each core competency
through 4 Criteria Matrix ...................................................................................................... 84
3.6 Coca - Cola Porter's Value Chain Analysis......................................................... 85
3.6.1 Inbound Logistics .......................................................................................... 85

3.6.2 Operations ..................................................................................................... 85
3.6.3 Outbound Logistics ....................................................................................... 86
3.6.4 Sales and Marketing ...................................................................................... 86
3.6.5 Service ........................................................................................................... 86
3.7 Strategic Objectives............................................................................................. 87
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3.7.1 WE FOCUSED ON DRIVING REVENUE AND PROFIT GROWTH ...... 89

3.7.2 WE INVESTED IN OUR BRANDS AND BUSINESS............................... 89
3.7.3 WE BECAME MORE EFFICIENT ............................................................. 90
3.7.4 WE SIMPLIFIED OUR COMPANY ........................................................... 90
3.8 Current Strategies (to achieve above objective) (combination of strategies / single
strategy for each objective) ....................................................................................................... 91
3.8.1 Corporate Level Strategies ............................................................................ 91

3.8.2 Business level strategies ................................................................................ 92
3.8.3 Functional level strategies ............................................................................. 93
3.8.4 Financial Strategies ....................................................................................... 94
3.9 Identify Rival Firms: PepsiCo............................................................................. 96
3.9.1 PepsiCo’s Strengths (Internal Strategic Factors) .......................................... 96

3.9.2 PepsiCo’s Weaknesses (Internal Strategic Factors) ...................................... 97
3.9.3 Opportunities for PepsiCo (External Strategic Factors)................................ 97
3.9.4 Threats Facing PepsiCo (External Strategic Factors) ................................... 97
3.9.5 Objectives of PepsiCo ................................................................................... 98
3.9.6 PepsiCo’s Generic Strategies ........................................................................ 98
3.10 SWOT Analysis................................................................................................. 100
4 Phase 4 – Gap Analysis & Recommendations ......................................................... 102

4.1 External Analysis .............................................................................................. 102
4.2 Internal Analysis ............................................................................................... 110
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1 Phase 1 – Introduction
1.1 Introduction of a Company
1.1.1 Brief History
Coca-Cola originated as a soda fountain beverage in 1886 selling for five cents a glass.
Early growth was impressive, but it was only when a strong bottling system developed that
Coca-Cola became the world-famous brand it is today.
As a part of its drive to enhance the quality, availability, and image of Coca-Cola
products, The Coca-Cola Company established a new Company in Pakistan in 1996, by the
name of “Coca-Cola Beverages Pakistan Limited” (CCBPL or Company).
CCBPL is a part of Coca-Cola İçecek which is sixth largest KO bottler in the World. It
has a presence in ten countries including Turkey, Kazakhstan, Kyrgyzstan, Azerbaijan, Jordan,
Iraq, Turkmenistan, Tajikistan, Syria, and Pakistan. CCI has 48% shares of CCBPL with
Management Control.
CCBPL started the process of acquiring and investing in locally franchised bottling
operations. This process was completed in 2006 and, thereafter, all manufacturing and selling
rights of Coca-Cola products are now with CCBPL.
CCBPL has 6 plants and 13 warehouses throughout the country and serves a population
of more than 170 million with a production capacity of 111 million physical cases. CCBPL is
a significant player in the growth of Pakistan’s economy since it is one of the country’s top
foreign direct investments in FMCG (Fast Moving Consumer Goods) business and is one of
the major tax paying beverages companies of Pakistan.
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Type Cola
Manufacturer The Coca-Cola Company
Country of origin United States
Introduced May 8, 1886; 130 years ago,
Color Caramel E-150d
Flavor Cola
New Coke (discontinued)
Diet Coke
Caffeine-Free
Diet Coke Caffeine-Free
Zero
Cherry
Lemon (discontinued)
Vanilla
Variants
Lime
Raspberry (discontinued)
Black Cherry Vanilla (discontinued)
Blāk (discontinued)
Citra
Orange
Life
C2 (discontinued)
Pepsi Irn-
Bru RC
Cola Afri-
Cola
Related products Postobón
Inca Kola
Kola Real
Cavan Cola
Website www.coca-colacompany.com
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1.1.2 International / National Introduction

Coca-Cola (often referred to simply as Coke) is an American carbonated soft drink
produced by The Coca-Cola Company in Atlanta, Georgia, United States. Originally intended
as a patent medicine, it was invented in the late 19th century by John Pemberton. Coca-Cola
was bought out by businessman Asa Griggs Candler, whose marketing tactics led Coke to its
dominance of the world soft-drink market throughout the 20th century. The drink's name refers
to two of its original ingredients, which were kola nuts (a source of caffeine) and coca leaves.
The current formula of Coca-Cola remains a trade secret, although a variety of reported recipes
and experimental recreations have been published.
The Coca-Cola Company produces concentrate, which is then sold to licensed Coca-
Cola bottlers throughout the world. The bottlers, who hold exclusive territory contracts with
the company, produce the finished product in cans and bottles from the concentrate, in
combination with filtered water and sweeteners. A typical 12 oz. (355 ml) can contains 38g of
sugar (usually in the form of high fructose corn syrup). The bottlers then sell, distribute and
merchandise Coca-Cola to retail stores, restaurants and vending machines throughout the
world. The Coca-Cola Company also sells concentrate for soda fountains of major restaurants
and food service distributors.
The Coca-Cola Company has on occasion introduced other cola drinks under the Coke
name. The most common of these is Diet Coke, with others including Caffeine-Free, Diet Coke
Caffeine-Free, Cherry, Zero, Vanilla and special versions with lemon, lime and coffee. Based
on Interbrand's best global brand study of 2015, Coca-Cola was the world's third most valuable
brand. In 2013, Coke products were sold in over 200 countries worldwide, with consumers
downing more than 1.8 billion company beverage servings each day.
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1.2 COCA COLA BEVERAGES PAKISTAN LIMITED

Coca-Cola established its facilities in Pakistan in 1953. It operates locally within
Pakistan. Its products are produced locally, thus providing employment to hundreds of
Pakistani residents. The company focuses its marketing and advertising specifically to
Pakistani tastes and cultures. Coca-Cola Beverages Pakistan Limited’s (CCBPL) major
shareholder is Turkey’s Coca-Cola Icecek (CCI). CCI is currently bottling and distributing
alcohol-free beverages in Pakistan along with 9 other countries.
With Coca-Cola’s introduction, the following products of the company came along:
Fanta
1965
Sprite
1972
Diet Coke
2001
Fanta Lemon
2001
Besides these, Sprite Zero, Rani Float and Kinley Bottled water are also in company’s
product portfolio. The company’s bottling plant is located in Pakistan in different regions,
including Karachi and Islamabad. Its local office is also engaged in the marketing and
advertising activities related to its products across Pakistan.
After arriving in Pakistan, Coca-Cola was bottles and distributed via independent
franchisees. In 1996, Coca-Cola took the initiate to consolidate and acquire all the bottling
plants and operate hem under the company’s own supervision. This process of acquisition was
completed in 2006 and CCBPL became the only organisation responsible to bottle and
distribute Coca-Cola products across Pakistan. CCBPL ensures that quality products are
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delivered to its customers. This includes investment in the market, customer development,
timely order and cash collections. By 2013, CCBPL has 6 bottling plants and 13 warehouses
operating across Pakistan thereby serving its 180 million population via its vast distributors
and retailers.
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1.2.1 Vision, Mission, Core Values, Goals
Vision Statement
Be the outstanding beverage company leading the market, inspiring
people, adding value through excellence.
Mission Statement
Build a sustainable and profitable business through refreshing
consumers, partnering with customers, delivering superior value to
shareholders and being trusted by communities.
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Core Values
Our Core Values underlie everything we do. We live by them for two
reasons; they are good and right in themselves, worthy of adherence even at
the risk of loss of profit-making opportunities, and they epitomize our
Company’s integrity, which we believe will produce value for our stakeholders
over the long term.
1. Accountability We act with high sense of responsibility and hold ourselves

accountable.
2. Passion We put our hearts and mind into what we do.
3. Integrity We are open, honest, ethical and we trust and respect each other
4. Teamwork We collaborate for our collective success
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COCA COLA GOALS

1. People and Organizational Leadership
2. Build a highly capable organization and be the employer of choice
3. Commercial Leadership
4. Profitably deliver superior value to consumers & customers at the

optimal cost to serve
5. Supply Chain
6. To be the best in class consumer demand fulfillment organization that

exceeds customer expectations highest in quality, lowest in cost, in a
sustainable, socially responsible manner
7. Operational Excellence
8. Create a culture of Operational Excellence to support continuous

improvement of our business process and systems
9. Sustainability
10. Ensure the long-term viability of our business by being proactive and
innovative in protecting the environment and be recognized as one of
the most responsible corporate citizens by all stakeholders
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1.2.2 Nature of Business

The Coca-Cola Company is an American historical multinational beverage corporation
and manufacturer, retailer, and marketer of nonalcoholic beverage concentrates and syrups,
which is headquartered in Atlanta, Georgia.
1.2.3 Type of Ownership

Coca Cola Operates as PUBLIC LIMITED COMPANY within Pakistan.
1.2.4 Identify Key Players and Roles

1.2.4.1 General Manager
RIZWAN ULLAH KHAN
Pakistan & Afghanistan Region
Rizwan Ullah Khan is currently the General Manager of

The Coca-Cola Export Corporation, Pakistan & Afghanistan, a
position he has held since September 2005. He joined the Company
in 1996 and served in several different business functions during
his early career, including Operations, Marketing, Customer
Services and Public Affairs and Communications (PA&C).
Over the years Mr. Khan has steered the transformation of

Coca-Cola Pakistan into one of the leading socially responsible
organizations in the country, by forging strong partnerships with
local communities, NGOs and government agencies. Under his
leadership, the Company has carried out several successful
interventions in the fields of education, environment preservation d
an
water stewardship, livelihood creation, women empowerment and youth development.
Rizwan Ullah Khan was a key catalyst in the formation of the American Business Forum,
an association of leading US organizations in Pakistan, which he currently also heads as its
President. Mr. Khan holds a degree in Management from Hiram College, Ohio, USA. He is married
with three children and lives in Lahore with his family.
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1.2.4.2 Director, Public Affairs & Communications

FAHAD QADIR
Pakistan& Afghanistan Region
Fahad Qadir is currently working as Region Public
Affairs & Communications Director for Pakistan &
Afghanistan Region, based at the head office in Lahore.
Pakistan. He has been with the Company for nearly 6 years
and leads stakeholder engagement on an ongoing basis with
the government, media, social groups (NGOs) and others. He
also manages the corporate & brand PR strategy and the
company's CSR programmer.
Before joining Coca-Cola, Fahad was working with the

prestigious Lahore University of Management Sciences
(LUMS) as Senior Marketing Office, primarily looking after
marketing of University programs in Central and South Asian
countries. Earlier to this, he worked with the Din Media Group,
responsible for devising strategies for new products and Group’s communication.
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1.2.4.3 LEGAL COUNSEL

HASAN SHAMEEM
Hasan joined The Coca-Cola Company just recently
this year as the legal counsellor and he is responsible to
maintain Company’s compliance with local and international
laws, policies and to safeguard legal claims made by The
Coca-Cola Company in Pakistan & Afghanistan
region. He graduated from University of Bristol in 2007 after
completion of degree in LLB, and worked as legal counsellor
in food and telecommunications industry for around 7 years.
After his previous experience with the top-notch food

and telecommunications companies, he always wanted to
work for an organisation that could still prove to be a
milestone in my professional career, and Coca-Cola has
proven to be the ideal place to nurture his professional
outlook towards legal affairs. He is as an integral part of The
Company today, considering the extensive and crucial parameters of legal affairs entailed in its
operations. He is the firefighter of The Company. His work needs attention to detail and there is
no room for mistakes. To maintain such a decorum, Hasan makes sure that he doesn't panic and
always think logically to resolve matters.
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1.2.4.4 Region Finance Manager

KALEEM FAZAL
Kaleem Fazal joined the Company in 2003 as a
Financial Analyst for the Pakistan office. Over the course of
11 years, Mr. Fazal has been an instrumental part of the
finance team for the MENA region. He was Budgeting and
Reporting Manager based in Middle East where he was
looking after 24 countries and 25 bottlers.
Kaleem is currently the Region Finance Manager for

Pakistan & Afghanistan. During his career, he has been
involved in multifarious responsibilities principally focusing
on sustainable system profit growth, value chain analysis,
profitability analysis, marketing analysis and development of
new categories (juices and energy).
He has played a pivotal role for tax lobbying which

resulted in system savings of $16m in 2011, $32m in 2012 d
an
$15m in 2013. Prior to his experience at Coca-Cola, Kaleem worked with Honda Fort and PwC
Pakistan.
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1.2.4.5 Technical Services Manager

QASIM MAHMOOD
Qasim joined the Company in 1999 as
Quality Programs Manager covering Pakistan,
Iran and Turkmenistan and moved to QA
Manager for Southern Eurasia BU and reached
Senior QEOSH Manager for Pakistan&
Afghanistan.
During his QSE career, Qasim was

involved in several other technical functions
because of the job demand. He handled
commercialization, packaging, CDE and
launched OE in Pakistan. He was a leading
member in the team that established the business
in Afghanistan and he contributed a lot to building
the capabilities of toll fillers in Pakistan. He also contributed to starting the HF juice and packaged
water businesses in Pakistan & SE from QSE as well as manufacturing angles.
Prior to his experience at Coca-Cola, Qasim has worked in the industry of pulp & paper,
polyester & soda ash and petroleum& gas sector covering R&D, plant operations and projects.
Qasim holds a double degree in Chemical Engineering & MBA.
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1.2.4.6 Director, Franchise & Commercial & Corporate Leadership

RAZA AHMED
Raza Ahmed has been part of the Coca-Cola
System for more than eleven years. Raza joined as
Business Planning & Treasury Manager, Coca-Cola
Beverage Pakistan Limited (CCBPL) and later was
also overlooking sales.
As a career broadening assignment, Raza was

moved to TCCEC, PAR, where he was primarily
responsible for driving volume and business growth,
developing and leveraging operational capabilities in
Pakistan & Afghanistan, driving commercial and
franchise leadership initiative and supporting
marketing in developing and executing marketing
plans. Raza has played an instrumental role in
driving TCCEC’s volume and sales and managing to
reach 207 MUC in FY 2013.
Raza has a vast experience in marketing, IT and

Engineering. Raza holds a degree from University of New Jersey in Industrial Engineering.
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1.2.4.7 HR-Strategic Business Partner

FAISAL HASHMI
Faisal Hashmi joined Coca-Cola System in 2000, as

Country HRD / IR Manager at CCBPL, he had successfully
managed smooth Employees & Industrial Relations
including close interaction with local unions and IUF as
well.
Currently, as HR-Strategic Business Partner Faisal

looks after the HR function for both TCCEC as well as CPS
and supports Afghanistan bottler’s HR function.
Faisal is playing an integral role in developing KO

associates through various trainings, feedback and
mentoring. He is also responsible of inculcating a great
work environment, during 2013 TCCEC, PB won “4th
Global HR Excellence Award” organized by Global Media
Links, Pakistan.
Under Faisal’s leadership, Pakistan has managed to maintain a consistent EIS Engagement
Score > 80 at TCCEC Region Office and > 95 at CPS Plant. Prior to working with the Coca-Cola
system, Faisal worked with Intercontinental Hotels & Kentucky Fried Chicken. Faisal holds a MS
Degree in Human Resource Management and Commerce Degree major in Finance.
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1.2.4.8 Director Marketing

ALI AKBAR
Syed Ali Akbar joined TCCEC, PAR
in August 2012 as Marketing Director. Ali has
played a pivotal role in thought leadership of
our campaigns. Under his vision, TCCEC, PB
won the Best Show in Class, Marketing
Excellence Award. Ali is primarily responsible
for innovative marketing campaigns, driving
brand love score and launching new beverage
products.
Ali has a vast experience in marketing.

He was the Vice President, Marketing &
Global Business Unit at Engro Foods Limited
and Vice President of Engro Corporation
Limited. Where he was primarily responsible
for marketing and business development aspects of
the Company.
Prior to Engro, Ali has worked with Coca-Cola Company, British American
Tobacco and Unilever Best Foods, on various business development and brand building
assignments.
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1.2.4.9 Senior Quality Environment Occupational Safety & Health (QEOSH) Manager
ATIQUE KHAWAJA
TCCEC Pakistan & Afghanistan in 2014
Atique’s last 3 years’ assignment
as National QA Manger was with our
bottling partner, CCBPL in Pakistan.
Under his leadership and the efforts of
CCBPL Team, the highest ever Product &
Package Q.I. and Lowest Ever Consumer
Complaints in CCBPL history were
achieved. In addition, Atique introduced
to Quality Management of RGB &
Fountain categories in processes and
feedback mechanism.
Before CCBPL; Atique was the factory manager of Najran Mineral Water Co. in
Saudi Arabia for 4 years and ended his job there with a remarkable promotion to General
Manager Position. He built his Saudi success on another 4 years of experience with Nestle
S.A. in Pakistan where he started as Industrial Engineer and was promoted to Industrial
Performance Manager. His Nestle experience involved manufacturing, SAP modules and
staff training.
All the above was built on 11 years of work in QA & SRA with The Coca-Cola
Company, SWA Region. Atique is a qualified TCCC Auditor and has trained over 200
manufacturing & Quality Assurance staff.
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1.2.5 Organizational Hierarchy

1. What type of organizational structure does Coca-Cola have?
The Coca-Cola Company has a Separate International Division Structure

because its international staffs operate separately and in isolation from head office. It
has various divisions in all continents around the world with presidents that control
each continental division. Coca-Cola has 5 continental divisions.
World
Eurasia North Europe Pacific Latin

& Africa America America
Pakistan
Eurasia & Africa Group
Europe Group
Latin America Group
North America Group
Pacific Group
Each Continental division has vice presidents that control sub-divisions based on regions
or countries. This structure is efficient for Coca-Cola since it is a very large company.
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2. How do they operate?
Coca-Cola is as an ethnocentric MNC because its domestic operations are very

like its international operations. Regardless of the country or region, Coca-Cola
operates the same way and sells the same brand and type of soft drink. The company
has tight control over its operations from head office.
Country Manager
GM (SBU) GM (CBU)
Karachi Lahore
Multan Gujranwala
RYK Faisalabad
RawalPindi
Peshawar
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1.2.6 Location(s) of Facility

Want to know more about your local Coca-Cola beverage and service
provider?
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1.2.7 Number of Technical Employees

Employees as of December 31, 2015 and 2014, Coca Cola Company had approximately
123,200 and 129,200 employees, respectively, of which approximately 3,300 and 3,800,
respectively, were employed by consolidated variable interest entities (“VIEs”). The decrease
in the total number of employees in 2015 was primarily due to the refranchising of certain
territories that were previously managed by CCR to certain of the Company’s unconsolidated
bottling partners. As of December 31, 2015, and 2014, Coca Cola Company had approximately
8,000 and 15,000 employees, respectively, located in the Pakistan, of which approximately
500 were employed by consolidated VIEs in both years. Our Company, through its divisions
and subsidiaries, is a party to numerous collective bargaining agreements. As of December 31,
2015, approximately 7,000 employees, excluding seasonal hires, in North America were
covered by collective bargaining agreements. These agreements typically have terms of three
years to five years. We currently expect that we will be able to renegotiate such agreements on
satisfactory terms when they expire. The Company believes that its relations with its
employees are generally satisfactory.
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1.1.1.1 Department Wise
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1.1.1.2 Total Employees (Gender Wise)
1.2.8 Products / Services

(single product)
1.2.8.1 Intro
The Coca-Cola
Company is the world’s largest
beverage company. Coca-Cola Company own or license and market more than 500 non-alcoholic
beverage brands, primarily sparkling beverages but also a variety of still beverages such as waters,
enhanced waters, juices and juice drinks, ready-to-drink teas and coffees, and energy and sports
drinks. Coca-Cola Company own and market four of the world’s top five non-alcoholic sparkling
beverage brands: Coca-Cola, Diet Coke, Fanta and Sprite. Finished beverage products bearing our
trademarks, sold in the United States since 1886, are now sold in more than 200 countries. Coca-
Cola Company make branded beverage products available to consumers throughout the world
through our network of Company-owned or -controlled bottling and distribution operations as well
as independent bottling partners, distributors, wholesalers and retailers — the world’s largest
beverage distribution system. Beverages bearing trademarks owned by or licensed to us account
for more than 1.9 billion of the approximately 58 billion servings of all beverages consumed
worldwide every day. Coca-Cola Company believe their success depends on their ability to
connect with consumers by providing them with a wide variety of options to meet their desires,
needs and lifestyles. Coca-Cola Company success further depends on the ability of their people to
execute effectively, every day. Coca-Cola Company goal is to use their Company’s assets — their
brands, financial strength, unrivalled distribution system, global reach, and the talent and strong
commitment of their management and associates — to become more competitive and to accelerate
growth in a manner that creates value for their shareowners. Coca-Cola Company were
incorporated in September 1919 under the laws of the State of Delaware and succeeded to the
business of a Georgia corporation with the same name that had been organized in 1892.
The company has the widest portfolio in beverage industry comprising of 3300 products.
Beverages are divided into diet category, 100% fruit juices, fruit drinks, water, energy drinks, tea
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and coffee etc. As per Nielson’s data, Coca cola is the No.1 brand in sparkling beverages, juice,
and retail packaged water in 2010. Coca cola has its market presence around 200 countries.
Coca Cola Beverages Pakistan has a very narrow product range. It has the following brands
in Pakistan.
Coca Cola
These products are sold in the market in different sizes of bottles. These sizes are available
for all its products.
250ml
250 ml (Non-Returnable)
300ml
1 liter
5-liter pet
1.2.8.2 Segmentation:
Coca cola servers its products using mass marketing technique, which obviously falls
in undifferentiated marketing, and undifferentiated marketing means no segmentation, but
there are minor factors on which we can say that the coke segments its products and then
targets the customers somehow. These factors are as follows.
1. Geographic Segmentation:
Internationally:
Coke segments its products country wise and region wise, here the most
important thing is the taste and the quality, it varies according to the taste and
the income level of the people in that country, and i.e. Third world counties are
given low quality taste.
Climatic:
In coke marketing, main idea is to serve it cold, so we can say that, they
focus more on hot areas of the world, i.e. middle east etc. and there sale increase
in summer.
Locally:
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In Pakistan the coke segments more in urban and suburban areas as

compare to rural.
2. Demographic Segmentation:
Age:
Internationally coke has segments the small children introducing tastes
like vanilla, lime and cherry, they focus children from 4-12. Coke specifically
target more young people than older.
Family type:
Coke introduces its economy pack, and that’s how they focus family
and groups.
Income:
Coke segments different income levels by packaging. Like for small
income people it has small returnable glass bottle, for middle people it has non-
returnable bottle and for higher income people it has coke tin.
3. Psychographics Segmentation:
All psychographics variables the social class, lifestyle, occupation, level of

education and personality, coke segments everyone, but again it’s there packaging
which is different for different consumers.
4. Behavioral Segmentation
Occasions:
Thanks to the Coca-Cola Company for the warm welcome of Ramadan
that has become an identity of the culture of Pakistan. Over the year the
welcome of Ramadan has taken on mega proportions. Then coca cola has also
made our Eid festivals very special by giving us special discounts on these
prestigious occasions. Coca-Cola has special pricing strategies for thes3e
occasions. They also run special advertising campaigns to make these occasions
more special.
1.2.8.3 Pricing
Due to the availability of wide range products the pricing is done per the market and
geographic segment. Each sub-brand of coca cola has different pricing strategy. Their pricing
strategy is based on the competitors pricing; Pepsi is the direct competitor to coke. Beverage
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market is said to be an oligopoly market (few sellers and large buyers), hence they form into cartel
contract to ensure a mutual balance in pricing between the sellers.
1.2.8.4 Distribution / Retailing

Coca Cola is the world’s most favorite brand and is available all over the world. The
distribution system of coca cola follows the FMCG distribution pattern. The effective distribution
network of coke has almost eroded the small and middle level players in the market. In Pakistan,
they have captured even the rural market by extensive distribution.
1.2.8.5 Marketing
Coca Cola adopts various advertising and promotional strategies to create an increased
demand in the market by associating with life style and behavior and mainly targeting value based
advertising. You are more likely to see a coke ad individualized for a festival or in with a general
positive message.
Coca-Cola uses the concept of aggressive advertising to promote its products. Thus,
advertising is the most important marketing tool for the company as it must cater mass consumer
markets. They mainly do national advertising. Company introduces different themes and
concepts to sell their product and advertises mainly in electronic media and out of home
advertising. These advertisements build brand image and create awareness. Big names of Indian
film industry mainly become the brand ambassadors of the Company. Throughout the years, the
slogans of the Coca-Cola have been memorable. For E.g. Thanda MATLAB Cola-Cola Jo chaho
ho jae Cola-Cola enjoy Coca-Cola-Piyo sir utha ke Brrrrrrr!!!
30
2 Phase 2 – EXTERNAL ANALYSIS OF COCA COLA BEVERAGES

PAKISTAN
2.1 Natural Environment:
2.1.1 Natural Resource Coca Cola need
Coca Cola identify WATER and NATURAL AIR as their most used resources in the
production process.
2.1.2 Present and Future needs of Natural Resources
2.1.2.1 Water Stewardship Program National Arrangement & Management of Water
Coca-Cola Pakistan, believe that water is critical not just for survival but for overall
well-being of our global ecosystems and economies. Being a big consumer of water, it is our
duty to protect water resources. Coca-Cola Pakistan maintains a vast Corporate Social
Responsibility Portfolio, with special focus towards community building and water
stewardship, where projects are designed in a way to deliver exponential benefits by integrating
the ‘Me, We, World’ framework; individuals, communities and environment. Therefore, it’s
our mission to give back the equivalent of all the water that we use to communities and nature,
and we will continue to do so after we meet the 100 percent water replenishment goal.
In 2007 The Coca-Cola Company announced its Water Replenishment Goal which
focuses on being water neutral by the year 2020. 209 water stewardship projects were initiated
in a total of 61 countries. Pakistan remains one of these 61 countries, successfully supporting
towards water replenishment goals. The 2020 water replenishment goal involves returning
water to the environment and communities, as per the total volume of water used annually. In
2014 The Coca-Cola system consumed 300 billion liters of water to produce 160 billion liters
of beverages, and we successfully replenished 160 billion liters of water worldwide, based on
our 209 watershed projects. Supporting this goal, Coca-Cola Pakistan has been able to
replenish 782 million liters of groundwater since 2008 just through a single project with WWF
Pakistan in Ayubia National Park. This marks as the epitome of our success towards water
stewardship.
Coca-Cola is able to give back the amount of water equivalent to what it uses in its
finished beverages and their production through replenishment projects, increasing water use
efficiency in its plants, and returning water to watersheds and municipalities through
wastewater treatment. Part of meeting its replenishment goal is engaging in diverse, locally
focused community water projects. Each project works toward set objectives such as providing
or improving access to safe water and sanitation, protecting watersheds, supporting water
conservation and raising awareness on critical local water issues.
31
Although Coca-Cola Pakistan serves nationwide, but every project needs a clear target
area and timeframe for specific deliverables. Our water replenishment projects are focused
majorly in provinces of KPK, Sindh and Punjab. Apart from Ayubia National Park, to name
few other projects we are serving in Gilgit, Karachi coastal areas like Kakapir and Soomer
village, and also Lahore Bedian.
To review our water stewardship and agriculture sustainability projects, take a look at
the info graphic:
32
33
2.1.3 International Arrangement of Water

2.1.3.1 Goal
By 2020, improve water efficiency in manufacturing operations by 25 percent
compared with a 2010 baseline.
2.1.3.2 Progress:
On track. In 2015, we improved our water efficiency 2.5 percent, marking the first time
the Coca-Cola system has achieved a water-use ratio less than 2.0. This is a total improvement
of 12 percent since 2010 and 27 percent since 2004 when we started reporting efficiency
progress as a global system.
COCA COLA’s system wide

water efficiency has improved for 13
consecutive years. When they started
this journey in 2004, they were using
2.7 liters of water to make 1 liter of
product. That means that 1 liter of
water is in the product and another
1.7 liters is used in the manufacturing
process, mostly for keeping
equipment clean. Today, they’re
using 1.98 liters of water to make 1
liter of product and we’re working to
reduce it to 1.7 liters of water per liter of product (a 25 percent improvement) by 2020. But
what does that mean?
In 2015, we used about 300.19 billion liters of water to produce approximately 151.1
billion liters of product (e.g., Coca-Cola, Diet Coke and Coke Zero) that we sold to consumers
in more than 200 countries and territories around the world. That means 151.1 billion liters of
water goes into our products and to consumers. And we used 149.09 billion liters of water in
our manufacturing process to make that 151.1 billion liters of product in our operations.1 so,
that’s the definition of water efficiency – how much water it takes to make our product.
Our 2020 goal is aggressive. The good news is that we’re on track to meet our goal,
and in many parts of the world, we’re ahead of schedule. In fact, in the United States, Mexico,
South Pacific, Western Europe, and Turkey, we have bottling plants that are already using 1.7
liters of water, or less, to make a liter of product. Some are operating at as low as 1.4 liters of
water per liter of product. Our progress on water efficiency places us among the leading
companies in the beverage industry according to a recent benchmarking report by the Beverage
Industry Environmental Roundtable.
34
2.1.3.3 Understanding Our Water Footprint

The key driver in improving our water efficiency is reducing or removing water use in
our manufacturing processes. Over the years we’ve made significant investments in new
technologies and operating procedures that replace or reduce water use in our manufacturing
operations. In order to expand on such improvements, we need to understand where water is
used and where we have opportunities for improvement.
Water foot printing—an approach to assess the total volume of water used to produce
a product—is helping us extend our view of how we use water across our manufacturing
processes and supply chain. Our studies have shown that around 80 percent of the total water
footprint of our products comes from our agricultural ingredient supply chain. As a founding
partner of the Water Footprint Network, we have worked with WWF, The Nature Conservancy
and others to assess the water embedded in our products, packaging and ingredients so we can
better understand the implications for our business, and work to reduce impacts.
In collaboration with The Nature Conservancy, we issued a report, Product Water
Footprint Assessments: Practical Application in Corporate Water Stewardship, exploring the
utility and practical application of the water footprint methodology for understanding our water
use throughout the value chain, and for identifying the impacts of that use and associated
response actions.
Water footprint studies were conducted related to the following Coca-Cola products
and ingredients:
Coca-Cola in a 0.5-liter PET bottle produced in the Netherlands;
Beet sugar supplied to Coca-Cola Europe’s bottling plants; and
Orange juice produced for the North American market.
The largest portion of the product water footprints assessed as part of these studies
came from the field, not the factory, which demonstrated significant opportunity to engage
more directly with our agricultural ingredient suppliers in advancing sustainable water use.
Guided in part by these assessments, to date, we have focused studies on the “blue,” green”
and “grey” water footprints of sugar beets, orange juice and Coca-Cola to help us pinpoint
potential sustainability impacts in specific growing regions.
Addressing the quantity of water used to grow our product ingredients is not enough,
we also need to address the impact of that use as well. Understanding impact is important,
because large water footprints can be sustainable in water-rich areas, while very small water
footprints might compromise sustainability in places where water is scarce. Gaining a clear
understanding of impacts makes good environmental sense and provides us with better
guidance for prioritizing areas of concern. Coca-Cola Europe has proposed a methodology for
water footprint sustainability assessments that considers impacts as well as water quantity.
Read more about it. Also, please see the section below and refer to the Sustainable Agriculture
section of our Sustainability Report for more details on our efforts with suppliers.
35
2.1.4 Issues they face during arranging and managing

Greater efficiency in water use does not mean making less product. To the contrary,
they intend to reduce their water use ratio—the amount of water we use per liter of product
produced—while growing our business. Their goal, set in 2008, was to improve water
efficiency system wide by 20 percent by 2012, compared with a 2004 baseline. Despite an
expanding product portfolio and increased production levels, they have achieved that goal.
In 2011, they used 293.3 billion liters of water to make 135 billion liters of product, giving
them a water use ratio of 2.16 liters per liter of product.
We are not stopping there. We are developing a new goal for further improving our
water efficiency between now and 2020.
Looking across their system, their data show that the highest water use ratios are often
in developing markets, where water risks may be higher. One main reason: In developing
markets, refillable glass bottles make up a large percentage of their unit case volume, and
cleaning returned bottles demands more water. Even in those markets, their bottling plants
typically draw a small percentage of water from local water sources, and each plant’s source
water protection plan helps mitigate any threats to local water supplies.
36
37
2.2 Task Environment: Porter’s 5 Forces Model

2.2.1 When (situation), Why (objective / reasons), How (process), who (participants),
Issues faced
Porter’s Five Forces Analysis was required by Coca Cola Beverages Limited Pakistan
when the company decided to launch 250ml pet bottles instead of the glass bottle for the First Time
in Pakistan. Moreover, coca cola used porter’s analysis before starting their water stewardship
program in order to reduce the water wastage. The Objective of the Porter’s Analysis was to
determine the success of the new Pet bottles. Participants include customers of Coke from different
segments, key players of CCPBL and employees.
2.2.2 In what format they collected the data of Porter’s Analysis
The company collected the data in the form of questionnaires, sampling data and personal
interviews with the customers. The major issues which CCPL faced was related to the high cost of
obtaining the data and of time.
2.2.3 What benefits they get from conducting PORTER’s Analysis
The benefits of Porter are uncertain as yet because Coca Cola is to launch their Pet Bottles
in the Market of Pakistan.
Porters 5 Discuss Effect

Forces Model Positive Negative
Competitive
Rivalry
Profit Margin: There is low Profit As there is

margin in the soft drink low profit margin
industry because the in the beverage
switching cost is very low. industry, so coca
The customers that are not cola has to focus on
too much brand conscious its quality and try
of coca cola can easily to improve it
switch to Pepsi Cola, Al further to compete
though the taste of Coca with other
Cola is Unique but still if beverage brands in
we conduct a blind survey the market.
by presenting the Continuous efforts
contestants with a variety are required for the
of cola drinks then it is competition. Due
hardly possible that to low profit
38
consumers will be able to margin new

differentiate the taste of entrants can easily
coca cola. enter in the market.
In case of Pakistan,
we see local
beverage brands
appearing in the
market like
Gourmet Cola and
Cola Next
launched by
Meezan Masala,
these local brands
are offering soft
drinks to the
consumers with
similar prices as
Coca Cola.
Industry Coca Cola has a

growth rate and vast global presence. It is
potential: easily available in more
than 200 countries.
Because of sound and
consistent growth of Coca
Cola in local industry and
in the international market,
the soft drink industry is
highly attractive for the
investors to invest.
39
Diversity of The major Product

competitors: competitor of coca cola is diversification of
Pepsi. Pepsi cola is also Pepsi The close
offering a wide range of Competitor of coca
beverage products. Coca cola i.e. Pepsi also
Cola always focuses on offers Cheetos,
promoting its brand by Kurkure, Wavy
sponsoring outdoor events and Lays but coca
and activities. E.g. coke cola does not. Coca
studio. There are also cola only offers
other brands of soft drinks soft drinks. Coca
in the market Like Dr. Cola should focus
Pepper and Starbucks etc. on its product
diversification.
Also the indirect
competitors of coca
cola are Star
Bucks, Tropicana
and Dr. Pepper etc.
that are offering
coffee, tea, bottled
water, and Vitamin
water and the
health conscious
people in the west
prefer those
products over coca
cola. These indirect
competitors are
stealing the market
share of coca cola
by offering healthy
products to its
Fixed Cost: Due to the customers.
highest Fixed cost
Coca Cola has a of coca cola and
significant market share. Economies of
The fixed costs are a high Scale that coca
proportion of total costs for cola is enjoying,
a firm in the soft drink the new entrants
industry. The coca cola has can’t compete on
high fixed cost of prices.
warehouses, labor, the cost
of production and
distribution. It spends too
40
much on its advertising

and promotional activities.
Close Coca cola

Competitors: The close has a sluggish
competitor of coca cola is performance in the
Pepsi. In fact Pepsi is a North America
thorn in the flesh of Coca because Pepsi has a
Cola. Pepsi derives its 70% monopoly there.
revenue from the North
and South America while
the coca cola derives only
30% of its revenue from
America. It indicates that
coca cola has not yet
maximized the potential
revenue outside the
America.
Existing A former
brand CEO of coca
identity: cola once
Coca Cola is not a declared that
soft drink it’s a brand. The “If every asset
brand valuation of coca cola
is $79.2 billion. Inter Brand we own,
i.e. a Global Brand Agency every building,
awarded coca cola with the and every
highest brand equity award piece of
in the year 2011. Coca Cola equipment were
has fantastic market destroyed in a
strategies. Because of the terrible natural
good taste of coca cola and
disaster, we
Fanta the customers are
loyal and they don’t like to would be able to
change their brand easily. borrow all the
money to
replace it very
quickly because
of the value of
our brand…
The brand is
more valuable
than the totality
41
of all these
assets.”
Switching
costs:
Coca cola
Entry barriers are being an Low
relatively low for the international switching cost
beverage industry .There is brand can spend a affects the
no consumer switching huge amount of customer retention
cost and zero capital money on its and customer
requirements. There is an advertising but loyalty. It also
increasing amount of new local brands are allows the new
brands appearing in the unable to entrants to enter in
market with similar prices advertise their soft the market.
than Coke products. drinks to a great
There is basically extent as coca cola
no price war between Pepsi does.
and Coca Cola because
their prices are almost
same. They basically
compete on advertising
and differentiation. Pepsi
Targets youth and coca
High are the cola is for all ages.
exit barriers
Exit barriers are high for

bottlers with expensive
equipment, moderate for
concentrate producers.
Advertising budgets are
high and customers are
influenced by brand
perceptions.
42

Bargaining Low Pressure
Power of
Suppliers
Substitutes The soft drink

for your products have standard
suppliers’ raw material ingredients
products which could not have any
alternative to use as an
actual ingredient. Each
firm has a different
formula, color, and flavor
for their beverage. No two
products are typically
exactly alike.
It is fairly easy for It will help

coca cola to become a the company in
supplier within the lowering its cost
industry and thus it would of production and
not find it difficult if it it also helps in
wanted to enter. If another improving its
supplier does the same job efficiency to a
but is cheaper, the firm can greater extent.
switch without much issue.
Coca cola has a capacity
for backward and forward
integration
No, the supplier Improved

High has no bargaining power efficiency, cost
switching over price. There is low cutting, time
cost to use switching cost of the raw saving, and
material. Raw material is elimination of
another
easily accessible. So the intermediaries and
supplier manufacturer can easily no chances of
43
shift from one supplier to disputes with the

another. supplier of input.

Threat Of Medium to low This is a
New Entrants pressure positive effect
Coca-Cola and its because this will
rivals do have special keep the
licensing deals, including competition at the
having their products sold in minimum and
fast food chains and different ultimately, it will
distribution deals. Both Pepsi lead to maintained
and Coca-Cola dominate the profitability.
beverage industry due to co-
branding it is impossible to
enter in the beverage industry
for a new company.
Coca-Cola enjoys The loyalty The

Loyalty of
high customer loyalty, of the users have loyalty of the
the end users
because of their high brand very positive users cannot have
equity. Therefore new effect on the sales any negative
competitors find it almost of the coca cola the effect.
difficult to counterpart this users are in the
loyalty. Coca-Cola is seen not habit of drinking
only as a beverage but also as coke only and they
44
a brand. It has held a very won’t welcome

significant market share for a any new company.
decade of times and loyal
customers are not very likely
to try a new brand.
There is no consumer As the Due to low

Difficulty in
switching cost is switching cost the
switching cost as switching cost. There is an
low so users users can switch
customer increasing amount of brands
appearing in the market remains with the to the new brand
having similar prices than brand they use. or product.
Coke products. The soft drink
industry is fully saturated.
Well for
Seed capital The seed capital The seed
new comer it has
to enter this required to enter this industry capital required is
negative effect
industry is a huge amount and energy. very huge so it is
that he/she
To compete with coke and positive for coke
requires a huge
Pepsi is not an easy task. as the new comers
amount of capital
Capital requirements for will hesitate to
to start the
producing, promoting, and start the business
business.
establishing a new soft drink in beverages
traditionally have been industry due to
viewed as extremely high.
According to industry experts,
45
this makes the likelihood of large capital

potential entry by new players requirement.
quite low A lot of capital is
needed to enter this industry
and compete with coke
because there are large capital
costs needed for
manufacturing. Bottling,
distribution, and storage could
be contracted out, but it would
likely increase costs in the
long run and weaken the
supply chain.
Government If we talk about the The

The
rules government of Pakistan than negative thing is
governmental
they give tax relief and other the licenses etc.
rules of Pakistan
facilities to international that needs to be
are favorable for
brands when they want to made. And they
coke as well as for
enter Pakistan. So this is are difficult to get.
entrants because
threat for coke. There are
Pakistan promotes
licenses, insurances, and other
the international
difficult qualifications
brands to invest
required in this industry.
In
Companies must get FDA
Pakistan.
approval to sell their product,
have licenses to produce and
46
distribute internationally, and

insurance to cover potential
lawsuits, accidents, or faulty
product.
There is a substantial Obviously If

Difficulty in
Skill acquiring
knowledge and skill barrier the positive effect competitors do
in terms of being able to is this that the new not have the
develop soft drinks that could entrants are not potential and
successfully compete with that powerful and skills then the
industry leaders such as Coca they also do not coke won’t have
Cola. Due to technological have the required any negative
barriers it is almost skills to compete effect on it.
impossible for the other with coke.
companies to compete
successfully with Coca-Cola
that has vast global presence
New entrants lack in skills as
compared to the established
market leader like Coca-
Cola. For example
GOURMET in Pakistan
launched its gourmet cola to
satisfy the customer needs as
coca cola is the market it
leader in the industry. It has a
large number of loyal
customers that not prefer
gourmet cola, cola next.
47
Amrat cola and shandy cola

tried to enter in beverage
industry but could not
successful due to coca-colas
international brand image.
Experience in this industry

does help firms to lower costs
Economies The coke
and improve performance. It has a
of scale has economies of
The major brands run on negative for the
scale due to their
economies of scale, and have new entrants only.
experience but the
experienced the highs and
entrant will not
low of the industry and
have the
overcome them. New
economies of scale
entrants can learn from the
and this is good for
first entrant’s history but do
coke.
not have firsthand
experience.
Existing firms have

cost and performance
Strong, advantage in this industry.

Coca-Cola It do not
established cost This is because existing firms
have any negative
advantages have already purchased large can earn more
capital expenditures and have profit due to this effect on the coca
economies of scale. They also advantage and the cola.
have direct supply and new entrants
48
distribution channels setup. cannot avail this

But for new entrants it is advantage.
difficult as they have no
experience to handle the cost
of production and other
matters as well. Coca-Cola
enjoys strong cost advantages.
Coca-Cola is seen not

only as a beverage but also as
Strong, a brand. It has held a very Coca cola The new
established brands. significant market share for a has a brand image entrants are faced
and coke enjoys with this difficulty
long time and loyal customers
the benefit of this. as they are do not
are not very likely to try a new
have any brand
brand. The coca cola is major
image and they
soft drink that have well-
are faced with the
known brand identities, with
price and brand
the exception of generic
competition from
brands and this Brand
the existing firms.
identities define coca cola‘s
flavor.
The coca cola has

already offered Retailers
49
Limited or significant margins of 15- The new It only has

restrained access to 20% on soft drinks for the entrants are also the negative effect
distribution shelf space. These margins faced with limited on the new
are quite significant for their access to entrants and not
bottom-line. This makes it distribution the on the existing
tough for the new entrants to distributors do not ones.
convince retailers to carry entertain the
substitute their new products entrants as they are
for Coke and Pepsi. New already doing
entrants also fear retaliation as work with the
Coca Cola will not allow them brands like coca
to enter. There is backward cola.
integration in Coca-Cola
therefore new entrants cannot
locate bottlers to distribute
soft drinks. A new comer to
the industry would face
difficulty in assessing
distribution channels. The
coke already control the main
distribution channels, such as
big supermarkets, gas
stations, and restaurants. They
have low costs, competitive
pricing, and strong business
relationships.
50

Bargaining Moderate pressure Coca cola The
Power of Customer The individual buyer no do not directly negative is
pressure on Coca-Cola. Large deals with the impact is the
retailers, like Wal-Mart, metro, individual dealing with the
hyper star have bargaining customer so in this retailers and the
power because of the large scenario it is wholesalers as
order quantity, but the positive that it the have the
bargaining power is lessened donor deals with bargaining power
because of the end consumer the bargaining of and coca cola has
brand loyalty. The customer the customer. to listen to them
buy from local brands like as they are the
gourmet cola due to low price people who
but there exist a difference in delivers the coke
the quality, taste of these to the customers.
products. When it comes to the
bottled beverages market,
buyers have a fair amount of
bargaining power, and this
affects Coca-Cola's bottom line
directly. Coca-Cola does not
sell directly to its end users.
They deal with distribution
companies that service fast food
chains, vending machine
companies, college campuses
and grocery stores. Demand
leads the purchases, but coca
cola also has to keep an eye on
what that end price will be.
51
There is no switching cost

because people also buy from
Pepsi.
The
How large The buyers company of The
negative effect is
are your buyers’ coca cola are large enough. The positive thing is
that as coca cola
company? big store and different fast food that coca cola has a
has these huge
industries buy from coca cola. huge amount
customers if they
Coca cola’s buyers includes customers which
blackout and
Hyperstar, Alfatteh, Metro, purchases the coke
donor take coke
Macro and different fast food in bulk and coke
from Coca-Cola
companies like McDonald’s, does not need to go
then coca cola
Hardees etc. coca cola’s to the individual
will face loss.
customers include large customers and they
Like if mc
international chains of retailers earn more from
Donald’s stops
and restaurants and small these customers.
buying from coke
independent businesses.
than coca cola
will face loss.
Pepsi is
How many In Pakistan buyer do not As in
the strong
companies are there have much choice to choose. Pakistan there are
competitor for
for the buyer to There are very few brands to less number of
coca cola and
choose from? choose. There is Pepsi, Cola brands of colas so
buyer can shift.
Next and Gourmet cola. Other buyers do not have
52
soft drinks are marinda and dew many choices. And

but they are not colas. in this case the
sales volume of
coca cola rises.
Are the Yes obviously, the It has the

buyers buying a buyers are buying in huge positive effect as
huge volume? amounts. The daily sales of Mc the buyers buy in
Donald’s on average is 75.21 huge amount of
million per day so they have to coke.
arrange Coca-Cola accordingly
and they buy coca cola in huge
amount. Same is the case with
other buyers.
Do you Coca cola do not depend They have It has a

depend only on a on few buyers only. They have many buyers so negative impact
few buyers to a lot of buyers to sustain their they want have any as there is no
sustain your sales? sales. kind of problem switching costs.
and this is positive. And buyer can
easily shift to the
other product.
But some
wholesalers like
Alfatteh they also
purchases from
competitors.
53
How hard is There is no switching Switching

it for the buyers to cost in the beverage industry costs are low for
switch and use a that customer can easily switch. a buyer, then
competing product? Coca- Cola does enjoy brand dissatisfaction of
loyalty, this usually extends to a product will
refusal to drink another cola but lead to loss of
not a refusal to consume another business as the
beverage altogether. The profit buyer will be able
potential to that industry rises to find an
and it makes an industry alternate with
attractive in that way. It is not minimum hassle
hard for the buyers to switch to and
another brand and it’s not inconvenience.
difficult for the buyers to use
competing products. For
example Al-Fatah store, hyper-
star purchase soft drinks in a
bulk quantity but they also
purchase another brand of soft
drinks like Pepsi , next cola etc.
Are the Yes the buyers’ Some

buyers purchasing purchases from Coca-Cola as buyers purchases
from you as well as well as other brands. For only from coca cola
your competitors? example retailers Al-Fatah like McDonald’s so
store, hyper-star purchase soft it is positive.
drinks in a bulk quantity but
54
they also purchase another

brand of soft drinks like Pepsi
etc. But in fast food chain
industries, vending machines,
college etc. these buyers only
purchase one brand like in Pizza
hut, KFC, Hardees only
purchase Pepsi in that way they
increases the sales of Pepsi
while McDonalds’ only buy the
Coca-Cola.
Do the Yes the buyers have the

buyers have the capacity to enter in the business
capacity to enter and produce the goods
your business and themselves like McDonalds’
produce the goods produces the Coca-Cola itself.
themselves? Same in the case of Hardees,
Fat-burger, and Pizza-hut they
can produce Coca-Cola itself in
that way these buyers have the
capacity to enter in the business.
55

Threat of Medium to High
Substitutes pressure
There are many kinds

of energy drink s/soda/juice
products in the market. Coca-
Cola doesn’t really have an
entirely unique flavor. In a
blind taste test, people can’t
tell the difference between
Coca-Cola and Pepsi. There
is no switching cost in the
beverage industry that
customer can easily switch.
Indirect competitors of coca
cola is star bucks coffee, they
advertise their product as
healthier than the soft drinks.
In developed countries the
health conscious people
prefer the health alternatives
beverages. Fox example Dr
pepper providing the unique
flavors as compared to the
coca cola that provides only
carbonated beverages.
56
Close As a product, most Because of Availability

substitutes people cannot differentiate availability of of close substitutes
available the taste from other similar close substitutes in Coca-Cola
cola products. So for many, it of soft drinks in industry affects
is a substitutable product. The the market their sales volume
rising awareness of cola customer gain and hence the sales
products and their negative advantage over decreases.
impact on health have led to Coca-Cola. Other
other beverages such as water substitute
and juices becoming more provides unique
potential in market. Fox flavors as well as
example Dr Pepper providing quality products.
the unique flavors as
compared to the coca cola
that provides only carbonated
beverages.
Perceived These substitutes Proper According

quality of the provides the best quality of quality insurance to perceived
substitutes their products like star bucks programs have a quality of
coffee, water and juices, positive impact on substitute’s star-
increasing number of sports Coca-Cola bucks provides the
and health based drinks in industry. In that best quality to their
developed countries. The way new customers. It has a
quality of products improves innovations are negative impact on
through R&D and continuous required for the Coca-Cola
quality improvement customer industry. Sales
programs. attention. decline people
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move from one

brand to another.
Buyer Customer can easily Health Coca-Cola

inclination to switch to other substitute so conscious people offer carbonated
substitute in that case buyer propensity prefer substitutes beverages that
to substitute is high. in developed cause obesity. In
countries so that it the developed
has a positive countries the health
impact on health conscious people
rather than prefer substitutes.
purchasing
carbonated
products.
Switching There is switching It will

costs costs. As health conscious decrease the sales
people switches to another of Coca-Cola.
brands like fresh juices
energy drinks etc.
Availability There are many kinds There are

of substitute of energy drinks/soda/juice many substitutes
products in the market. Coca- and health
Cola doesn’t really have an conscious people
entirely unique flavor. prefers tea and
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Indirect substitutes of coca coffee more than

cola is star bucks coffee, they coke.
advertise their product as
healthier than the soft drinks.
In developed countries the
health conscious people
prefer the health alternatives
beverages.
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2.3 Societal Environment: PESTEL Analysis

PESTEL Discuss Effects
Positive Negative
Political
Factors
Political Instability CCBPL claims to have It has It has
and Strikes warehouses that stores cokes positive effect on negative impact
suffice to meet the demand in coke because of that on coke.
political decision
case of series of strikes and
coke has more
political disruption for 1-3 customers because
months. after removing that
ingredient customer
became more loyal
with coke. Now they
In the early years of the trust on coke and
company, Coca-Cola was considered it as
effected by that political health conscious
decision in which U.S beverage.
Government asked them to
remove one ingredient from
their actual formula.
Consumer Laws Coca-Cola has been

also effected in the turkey and It has
India by political decisions negative impact
when Israeli attacks on Gaza in on coke.
2014, then Turkey, and more
than 100 hotels in Mumbai,
stop selling products of Coca
Cola Company because these
countries said that the attacks
of Israel on Gaza is because of
its economic power. So they
should stop selling products of
those brands which contribute
to the Israeli economy and
Coca-Cola brand is one of
them who directly contribute to
Israeli economy. So here Coca-
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Cola brand is effected by the

political decisions of Turkey.
PESTEL Discuss Effects

ECONOMIC Positive Negative
FECTORS
The global economic No doubt
and financial crisis of 2007 – coke was
2009 is a relevant example of effected lesser
an economic factor that greatly by that recession
impacted the majority of but it was
businesses around the globe. effected by
However, the crisis has economic factors
impacted Coca Cola to a lesser in a negative
extent compared to many other way.
businesses. Its operating
margin remained at industry-
front 22% despite the crisis,
although dividend yield was
reduced to 2.6% Change
in exchange rate
Arguably, fluctuations effect coke in a
in exchange rate is the most negative way
significant economic factor because of this
that has adversely impacted change prices of
Coca Cola performance in coke also effects
recent years. For example, due and this lead to
to severe currency devaluation the decrease in
in Venezuela, Coca Cola’s profitability of
reported profits in this market coke.
has to be reduced by 55% in the
fourth quarter of 2014 and
there are similar instances in
other parts of the world
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PESTEL Discuss Effect

Social Positive Negative
Factors
Healthy Lifestyle Media today, is fostering It has a It has a
Concerns interest in healthy lifestyles. That positive impact negative impact
has strongly influenced the sales on customers on coke because
within non-alcoholic beverage the sale of
because
sector as many customers switch to company is
mineral water bottles and fresh customer known decreasing so
juices. In this regard, CCBPL has that this company should
successfully come up with the beverages brand revise their
products such as Coca-Cola Light or is health policies and
Zero that addresses the healthy diet conscious. strategies.
concerns.
Also, as the baby boomers
are aging, they are getting more
conscious and more concerned about
diet choices that will influence their
life expectancy. This contributes to
the increasing demand for healthier
drinks on the non-alcoholic
beverage sector.
Adaption and Adaption plays a significant I has Pakistan

cultural role in capturing the international positive impact is an Islamic
country and it has
borrowing markets. And willingness to adapt is on customers some religious
a crucial attitude. The company because coke believes. In Islam
realizes that these differences exist realizes the need music is not
and tries to understand and cope with of theirallowed so coke is
them in a proper manner. The customers on destroying the
Islamic values of
advertisement campaigns focus on their religious Pakistan attracting
relationships, family events and and cultural the youngsters
gatherings, festive occasions like occasion and it through its musical
Eid and music. advertise according campaigns.
to occasion like on
Eid and 14-Aug.
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PESTEL Discuss Effect

Technologic Positive Negative
Factors
Coke’s Marketing, The most evolving media It has a
Advertising, and for promoting the company’s positive impact
Promotional products are through the TV, on coke because
Programs websites, and social media. after the Coke
CCBPL possess mind-blowing
strategy to effectively promote Studio Session 8
their products through these raised the
channels that enhances its sales. It company’s sales
is reported that Coke Studio by 42%.
Session 8 raised the company’s
sales by 42%.
Access to the With the ease to access I has It has
Internet internet, social media has become positive impact on negative
a great mean to provide huge on customers impact on
growth in consumer awareness, because it has company
brand identity, promotions and cheapest way of policies because
direct-to-consumer advertisement those people
Communication. instead of who are not
electronic using internet
media. cant aware
brand identity.
Packaging design As the cans and plastic It has a

bottles were introduced, the sales positive impact
volume increased with a great on customer
margin for the company because of because they
the ease in carrying and disposing design their
the containers. bottle according
to situation. E.g.:
On 14
Aug they design
their packaging
according to our
national flag
color.
New Because the technology is It has

Equipment continuously advancing, new impact on
equipment is constantly being customer
introduced by CCBPL. Because of because they use
these new technologies, Coca- innovative
Cola's production volume has technology.
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increased sharply compared to that

of a few years ago.
Reduced With the up gradation of It has
Cost of Production technology and high levels of positive impact
automation in manufacturing, on Coke.
volume production is being done
that has reduced the cost of
production.
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3 Phase 3 – Internal Analysis: Organizational Perspective

3.1 Vision / Mission / Core Values (discuss separately)
3.1.1 Vision
“To become a market leader in ready to drink segment while

adding best-in-class value to all stakeholders.”
3.1.1.1 When, how (Process), Who (Develop & Participate), Issues faced
The vision of Coca Cola Beverages continuously revises with the achievement of
their vision after 5 to 10 years.
The process of making a vision statement at CCBPL include the following steps
1) The company’s country head and top management meet up as per the
achievement of the previous mission and monitor the internal and external
company’s documentations.
2) After monitoring and evaluating the current company’s documentation, the
top management give their suggestions and feedback on what they have
evaluated from the company’s documentation and each member of the top
management proposes their own vision statement.
3) The company’s officials meet and proposes their own vision statement and
the office staff compile them in the form of minutes of meetings and merge
the document.
4) The company’s officials conduct internal and external analysis to revise
mission and vision statements and with then the consent of all members of the
top management the best mission statement is chosen.
The issues that CCBL faced when devising vision statement often include biases of
data gathering and biases of the data in documentations. The data evaluated is then verified
and then evaluated to account for in the vision statement.
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3.1.2 Mission
“Coca-Cola Pakistan exists to refresh the consumers, inspire

moments of optimism through our brands and actions as well as
benefit all stakeholders, which we will do with highest social
responsibility and with uncompromising commitment towards
quality of our products and integrity in our operations”
3.1.2.1 When, how (Process), Who (Develop & Participate), Issues faced
The same procedure and processes are followed to produce as they are followed for
vision statement. The company considers mission statement as an expansion of vision and
take into consideration certain factors to produce mission which include the following;
1) Technology
2) Brand image
3) Philosophy
4) Ethical and sustainability considerations
5) Customers and External Stakeholders
6) Internal Stakeholders
7) Competitive advantage and core competencies
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3.1.3 Core Values
“Our Core Values underlie everything we do. We live by them

for two reasons; they are good and right in themselves, worthy of
adherence even at the risk of loss of profit-making opportunities, and
they epitomize our Company’s integrity, which we believe will
produce value for our stakeholders over the long term.”
• Accountability: We act with high sense of responsibility

and hold ourselves accountable.
• Integrity: We are open, honest, ethical and we trust and

respect each other
• Teamwork: We collaborate for our collective success
• Passion: We put our hearts and mind into what we do.
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3.1.3.1 How they are aligned (Vision / Mission / Core Values)

As per the company’s officials, the mission is the expansion of the vision after
consider certain factors which are discussed above and core values are based on the original
vision set by the company after every 5 to 10 years. All three of them are completely and
work towards the achievement of same goals and objectives. The Managerial staff at coca
cola as least effected by the mission and vision outlined initially by the coca cola. Based on
the mission statement, coca cola trying to increase the use of technology and reducing the
non-managerial staff. They are also cutting costs by reducing the number of people in the
company, keeping only the specialized staff and by paying more the company gives them
more tasks.
3.2 Organizational Policies

Organizational policies are guidelines that outline and guide actions within a business or
agency. The exact types of policies will vary depending on the nature of the organization and can
include policies such as directions, laws, principles, rules or regulations.A policy is a guiding
principle used to set direction in an organization. A procedure is a series of steps to be followed
as a consistent and repetitive approach to accomplish an end result.
3.2.1 CLIMATE CHANGE POLICY
Climate Change Policy Statement Coca-Cola Hellenic strives to limit its impacts on
climate change and to carry out all its business activities in a sustainable manner. We believe
that industry has a key role to play in finding sustainable solutions to today’s climate
challenges. The direct greenhouse gas emissions from Coca-Cola Hellenic operations result
mostly from the use of energy in bottling plants and fleet. Indirect emissions stem from raw
materials (ingredients and packaging) and cold drink equipment. In accordance with our
Environmental Policy, we will: • Reduce the energy used in our operations. • Implement
alternative or renewable energy technologies such as combined heat and power plants and solar
panels, where practical to provide additional sustainable energy for our facilities. Engage with
stakeholders to combat climate change. Work with suppliers to reduce the carbon embedded
in packaging materials, the carbon footprint of our cold drink equipment and ingredient
suppliers to minimise their carbon impacts. • Set targets to reduce our supply chain carbon
emissions • Report our greenhouse gas emissions, targets, results and activities openly and in
accordance with the Greenhouse Gas Protocol. As Chief Executive Officer I am committed to
this Climate Change Policy Statement which is owned and endorsed by the Corporate Social
Responsibility Committee of the Board of Directors. Responsibility for the successful
implementation of this program belongs with every Coca-Cola Hellenic employee at each level
and function in the organization.
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3.2.2 CODE OF BUSINESS CONDUCT(INTEGRITY IN THE COMPANY)

This Code of Business Conduct is designed to help all of us to live up to the values that
make Coca-Cola Hellenic one of the most successful and respected organizations in the world.
These values include:
• Authenticity
• Performing as one
• Excellence
• Caring for our people
• Learning
• Winning with customers
The Code sets out the Company’s commitment to conducting business in accordance
with our values, all applicable laws and regulations and industry standards. It provides
guidance on what is expected of each of us and references other Company policies and
guidelines. Failure to comply with the Code or any Company policy is treated very seriously
and may result in disciplinary action, up to and including dismissal. Some situations may seem
ambiguous. Exercise caution when you hear yourself or someone else say “It has always been
done this way,” “Everybody does it,” “Maybe just this once,” “No one will ever know” or “It
will not matter in the end.” These are signs to stop, think through the situation and seek
guidance. Most importantly, do not ignore your instincts. Ultimately, you are responsible for
your own actions. If you are still uncertain, ask for guidance. The Code Triesto capture many
of the situations that employees will encounter, but cannot address every circumstance. You
can seek help from your Code Compliance Officers or higher level management. You are also
required to report violations, and suspected violations, of the Code. This include situations
where others ask you to violate the Code. There will never be reprisals for making any reports,
and every effort will be made to maintain confidentiality. Managers must lead by example, and
act as role models for others. As a manager, you should:
• Ensure that the people you supervise understand their responsibilities under the
Code and other Company policies.
• Take opportunities to discuss the Code and reinforce the importance of ethics
and compliance with employees.
• Create an environment where employees feel comfortable raising concerns.
• Consider conduct in relation to the Code and other Company policies when
evaluating employees.
• Never encourage or direct employees to achieve business results at the expense
of ethical conduct or compliance with the Code or the law.
• Always act to stop violations of the Code or the law by those you supervise.
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3.2.3 GUIDANCE FROM CORE COMPLIANCE OFFICER

Country Employees: Your Code Compliance Officers are your General Manager
and your Country Legal Director. However, for questions relating to potential
bribery or corruption, your Code Compliance Officer is your Country Legal
Director only.
Country Function Heads and Regional Managers: Your Code Compliance Officers
are your General Manager and Region Legal Director. However, for questions
relating to potential bribery or corruption, your Code Compliance Officer is your
Region Legal Director only.
General Managers and Group Function Employees: Your Code Compliance Officer
is the Chief Compliance Officer, including for questions relating to potential
bribery or corruption.
Chief Executive Officer: Your Code Compliance Officer is the Audit Committee.
However, for questions relating to potential bribery or corruption, your Code
Compliance Officer is the General Counsel.
Other Operating Committee Members: Your Code Compliance Officers are the
Chief Executive Officer and the General Counsel. However, for questions relating
to potential bribery or corruption, your Code Compliance Officer is the General
Counsel.
If you are uncertain as to who you should contact or are unable to reach your Code
Compliance Officers, you should contact your General Manager or Function Head
for further guidance.
Under the Code, certain actions require prior written approval. Where approval is
required, both Code Compliance Officers must approve (if you have more than one
applicable Code Compliance Officer). For recurring or ongoing actions, this approval
should be renewed annually, or anytime there is a change in either the situation or any of
your Code Compliance Officers. Copies of these approvals should be submitted by each
Code Compliance Officer to and maintained by the appropriate legal department, and made
available to auditors or investigators if required.
You have several options for raising issues and concerns. Whether seeking advice
or speaking out, you can always go to your manager. If you prefer, you can contact any of
the following:
• Your Code Compliance Officers
• Your General Manager
• Your Function Head
• Your Country Legal Director
• Your Region Legal Director
• The Chief Compliance Officer
70
• Financial, accounting or auditing matters should be reported to the Head of

Internal Audit or to the Chairman of the Audit Committee.
• Suspected Code violations of a serious nature, such as those involving high levels
of management, significant monies, financial misstatement, or alleged criminal activities
should be reported to the General Counsel, Group CFO or Head of Internal Audit
immediately.
Investigations and Disciplinary Actions the Company takes all reports of possible
misconduct seriously. We will investigate the matter confidentially, make a determination
whether the Code or the law has been violated, and take appropriate corrective action. If
you become involved in a Code investigation, cooperate fully and answer all questions
completely and honestly. For each Code violation, discipline is determined based on the
nature of the violation, mitigating and aggravating factors, and the precedent for discipline
(or range of discipline). Discipline for Code violations has a broad range, including but not
limited to one or any combination of the following: a letter of reprimand, final written
warning, suspension without pay, demotion, loss or reduction of bonus or option awards,
and separation. The Company has a position of zero tolerance for theft of Company assets,
including but not limited to cash, product and time. In addition, we may seek
reimbursement for losses or recovery of damages by a civil suit or refer the matter to local
authorities for criminal procedures. Any disciplinary action will be taken in accordance
with applicable laws and collective bargaining agreements. Violations of this Code are not
the only basis for disciplinary action.
The Company has additional policies and procedures governing conduct that may have
their own disciplinary consequences.
1. No Retaliation
The Company values the help of employees who identify potential problems that
we need to address. Any retaliation against an employee who raises an issue honestly is a
violation of the Code. That an employee has raised a concern honestly, or participated in
an investigation, cannot be the basis for any adverse employment action, including
separation, demotion, , loss of benefits, threats, harassment or discrimination. If you work
with someone who has raised a concern or provided information in an investigation, you
should continue to treat the person with courtesy and respect. If you believe someone has
retaliated against you, report the matter to your Code Compliance Officers or the General
Counsel.
2. Working With Each Other
Within our Company we promote equality of opportunity. Selection and reward are
based on merit without regard to race, color, religion, sex, sexual orientation, citizenship
status, national origin or disability. We will comply with all applicable laws relating to
employment practices and expect all of our employees to treat each other with dignity and
respect.
71
3. Product Quality
Our customers choose us because we provide a consistently superior product and
service. Ensuring that our products are of the highest quality is critical to our success. We
must each be aware of and follow Company policies and procedures that protect the quality
of our products. In addition, we expect our suppliers to ensure the quality and safety of the
products and services they provide to us. For this reason, we choose suppliers who share
our values and who deliver superior products and services.
4. Health & Safety
Health and safety is a critical value of the Company. We always comply with
applicable and Safety health and safety rules and regulations. In addition, we consistently
promote safe operating practices and avoid undue risk to our colleagues and our
communities. We require all employees to follow safe work practices in the interest of their
own safety as well as that of fellow employees. Safety is the responsibility of each and
every employee. Employees can prevent injury to themselves and their co-workers by
always following safe work practices and reporting any unsafe conditions you observe.
Many employees go beyond these basic responsibilities by participating on safety
committees, giving management input on safety policies and procedures, helping conduct
safety inspections or assisting with accident investigations.
5. Intellectual Property
Our Company’s intellectual property, whether licensed or owned, is among its most
valuable assets. We therefore must protect our Company’s intellectual property rights.
Intellectual property refers to anything we create on Company time, at the Company’s
expense or within the scope of our job duties. The Company owns the rights to anything
we create through our work with the Company to the full extent permitted by law,
regardless of whether this property is patentable or able to be protected by copyright, trade
secret or trademark. Examples of intellectual property include copyrights, patents,
trademarks, trade secrets, design rights, logos, software programs, business processes and
delivery or production methods.
6. Technology
Company computer systems and equipment are meant for company use, and for
use in accordance with the Company Information Protection Policy. For example, they
should never be used for outside businesses, illegal activities, gambling or pornography.
You may not download or store illegal or inappropriate content or programs from the
Internet on your Company computer. Always use licensed software in accordance with the
terms of the relevant licensing agreement, which is available from your Country BSS
department. Copies of software may be made only as specified in the relevant licensing
agreement. You must not sell, transfer or otherwise make available to any unauthorized
person any software products or related documentation licensed to or owned by the
Company. In addition, lack of diligence by an individual can lead to a breach of our
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information security affecting the whole company. Everyone who uses Company digital
systems – employees, contractors, consultants and other people with temporary access–
must ensure that these resources are used appropriately and in line with the Company’s
Information Protection Policy. You are required to:
• Never share your username or password.
• Ensure you do not access, download, create or forward email, documents or
images that may cause offence or distress to other persons.
• Ensure you do not install or use hardware or software on any Company system
that has not been specifically approved by the information technology team.
• Never send information to anyone who contacts you claiming to be a Company
employee but asks for information to be sent to a non-Coca-Cola Hellenic email address.
You should also notify your information technology team.
• Always save important data on the network-based drives for reasons of data
security and data recovery.
7. Nonpublic Information
Many of us have access to confidential, nonpublic information through the work
we do. Nonpublic information is any information that has not been disclosed or made
available to the general public. It is your obligation to safeguard the Company’s nonpublic
information. Unless it is necessary as part of your work responsibilities, you may not share
this information with anyone outside the Company, including your family members and
friends. This information is Company property and you may not disclose it to others even
after you leave the Company. You should also limit the sharing of Company nonpublic
information within the Company to those of your colleagues who need to know such
information for business purposes. Do not disclose nonpublic information to anyone
outside the Company, except when disclosure is legally mandated or is required for
business purposes and appropriate steps have been taken to prevent misuse of the
information.
• Disclosing nonpublic information to others, including family and friends, is a
violation of the Code and may violate the law.
• Be mindful of unintentional disclosure of nonpublic information through
conversation or use of documents in public places, or the transmission of unencrypted
digital data (USB sticks, CDs/DVDs, email attachments) outside the Company.
• Just as the Company values and protects its own nonpublic information, we
respect the nonpublic information of other companies. Never accept, solicit or divulge
nonpublic information of another company, including customers. See page 33 below under
the heading “Competitive intelligence.” • Records should be retained or discarded in
accordance with the Company’s record retention policies. In the case of actual or
73
threatened litigation or governmental investigation, you must consult with the Group Legal
Department for instructions on how to handle any relevant records.
3.2.4 ENVIRONMENTAL POLICY
Coca-Cola Hellenic is committed to conducting all its business activities responsibly
with due regard to environmental impact and sustainable performance. The Company believes
that the environment is everybody’s responsibility and all employees are accountable for
environmental performance. Coca-Cola Hellenic seeks to achieve steady improvement in
meeting its environmental standards while working to minimize any negative impact on the
local and global environment as the Company grows its business. To reach these targets, Coca-
Cola Hellenic:
• Conducts operations in compliance with all applicable laws and regulations and
applies its high internal environmental standards.
• Implements and certifies the internationally recognized environmental
management system, ISO 14001, in all of its operations to ensure accountability
and continuous improvement.
• Includes environmental strategies and objectives in its business planning
process to ensure that management of environmental impact remains an integral
part of its operations.
• Identifies environmental aspects, sets environmental goals, monitors results and
audits processes in order to assess its performance against internal and external
environmental standards.
• Identifies and implements ways to improve the efficiency with which the
Company uses materials and resources, prevents pollution, minimizes
emissions, and recycles waste.
• Commits to conserve watersheds by saving water and treating wastewater.
• Commits to protecting the climate by reducing energy use and coolant
emissions.
• Plays a leading role within the beverage industry in promoting sustainable
packaging by light weighting, recycling beverage containers and using recycled
content in its packages.
• *Encourages and equips its employees to identify and act upon opportunities to
improve environmental performance and waste management in the areas where
they work.
• Partners with stakeholders in seeking and developing solutions to those
environmental problems on which the Company can make an effective and
lasting contribution.
• Communicates its environmental requirements and performance to
stakeholders. The responsibility for overseeing the implementation of this
policy lies with the Corporate Social Responsibility Committee of the Board of
Directors. As Chief Executive Officer I am committed to the Coca-Cola
Hellenic Environmental Policy.
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3.2.5 HUMAN RIGHTS POLICY

Respect for human rights is fundamental to the sustainability of Coca-Cola HBC and
the communities in which we operate. In our Company we are committed to ensuring that
people are treated with dignity and respect. Coca-Cola HBC’s Human Rights Policy is guided
by international human rights principles encompassed in the Universal Declaration of Human
Rights, the International Labor Organization’s Declaration on Fundamental Principles and
Rights at Work, the United Nations Global Compact and the United Nations Guiding Principles
on Business and Human Rights. The Human Rights Policy applies to Coca-Cola HBC, the
entities that it owns, the entities in which it holds a majority interest, and the facilities that it
manages. The Company is committed to upholding the principles in this Policy. Our Supplier
Guiding Principles apply to our suppliers and are aligned with the expectations and
commitments of this Policy.
1. Respect For Human Rights

Coca-Cola HBC respects human rights. We are committed to identifying and
preventing any adverse human rights impacts in relation to our business activities through
human rights due diligence and preventive compliance processes.
2. Community And Stakeholder Engagement

We recognize our impact on the communities in which we operate. We are
committed to engaging with stakeholders in those communities to ensure that we listen to,
learn from and take into account their views as we conduct our business. Where
appropriate, we are committed to engaging in dialogue with stakeholders on human rights
issues related to our business. We believe that local issues are most appropriately addressed
at the local level. We are also committed to creating economic opportunity and fostering
goodwill in the communities in which we operate through locally relevant initiatives.
3. Valuing Diversity
We value the diversity of our people and the contributions they make. We have a
long-standing commitment to equal opportunity and do not accept discrimination and
harassment. We are dedicated to maintaining workplaces that are free from discrimination
or harassment on the basis of race, sex, color, national or social origin, religion, age,
disability, sexual orientation, political opinion or any other status protected by applicable
law. The basis for recruitment, hiring, placement, training, compensation and advancement
at the Company is qualification, performance, skills and experience. Regardless of personal
characteristics or status, the Company does not tolerate disrespectful or inappropriate
behavior, unfair treatment or retaliation of any kind. Harassment is unacceptable in the
workplace and in any work-related circumstance outside the workplace. These principles
apply not only to Company employees but also to the business partners with whom we
work.
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4. Freedom Of Association And Collective Bargaining

We respect our employees’ right to join, form or not to join a labor union without
fear of reprisal, intimidation or harassment. Where employees are represented by a legally
recognized union, we are committed to establishing a constructive dialogue with their
freely chosen representatives. We are committed to bargaining in good faith with such
representatives.
5. Safe And Healthy Workplace

We provide a safe and healthy workplace and comply with applicable safety and
health laws, regulations and internal requirements. We are dedicated to maintaining a
productive workplace by minimizing the risk of accidents, injury and exposure to health
risks. We are committed to engaging with our employees to continually improve health
and safety in our workplaces, including the identification of hazards and remediation of
health and safety issues. We are committed to maintaining a workplace that is free from
violence, harassment, intimidation and other unsafe or disruptive conditions due to internal
and external threats. Security safeguards for employees are provided as needed and will be
maintained with respect for employee privacy and dignity.
6. Forced Labor And Human Trafficking

We prohibit the use of all forms of forced labor, including prison labor, indentured
labor, bonded labor, military labor, slave labor and any form of human trafficking.
7. Child Labor
We prohibit the hiring of individuals that are under 18 years of age for positions in
which hazardous work is required.
8. Work Hours, Wages And Benefits

We compensate employees competitively relative to the industry and local labor
market. We operate in full compliance with applicable wage, work hours, overtime and
benefits laws.
9. Guidance And Reporting For Employees

We are committed to creating workplaces in which open and honest
communications among all employees are valued and respected. Our policy is to follow all
applicable labor and employment laws wherever we operate. If you believe that a conflict
arises between the language of the policy and the laws, customs and practices of the place
where you work, if you have questions about this policy or if you would like to report a
potential violation of this policy, you should raise those questions and concerns through
existing processes, which make every eort to maintain confidentiality. You may ask
questions or report potential violations to local Management, Human Resources, Legal
Department or Business Resilience. Coca-Cola HBC is committed to investigating,
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addressing and responding to the concerns of employees and to taking appropriate

corrective action in response to any violation.
3.2.6 POST-CONSUMER PACKAGING WASTE MANAGEMENT POLICY
STATEMENT
Coca-Cola Hellenic is committed to continually improving its environmental
performance in the area of packaging and packaging waste. All Coca-Cola Hellenic territories
are committed to continuous improvement, which is measured and evaluated for effectiveness.
The Company supports the implementation of post-consumer packaging schemes in all
countries. The objectives are to:
Co-own the country packaging management scheme (recovery organization).
Participate as an active member of the Management Board of Recovery
Organizations with the appropriate participation at a senior level.
Own and take responsibility for collected material as members of authorized
recovery organizations.
Implement efficient recovery organization schemes at the lowest sustainable costs.
Develop and execute Business Plans according to the highest standards. To achieve
these objectives, Coca-Cola Hellenic:
Enhances post-consumer packaging collection schemes and supports the education
and awareness of consumers.
Engages in public awareness campaigns, selective waste collection education and
anti-littering campaigns.
Works with government and industry to create a legal framework in which
economic progress, diversion of material from landfill and emissions reductions
can be achieved simultaneously.
Supports the view that public policy and regulatory interventions must encourage
the development and implementation of appropriate technological solutions and
enable the amendment of market mechanisms.
Promotes the development and expansion of organized collections of post-
consumer packaging materials at public events to avoid littering. • Works to close
the packaging loop in a sustainable manner.
Is committed to invest in Bottle-to-Bottle Recycling Plants in all countries with
sustainable resources, i.e. cost-effective and efficient post-consumer PET
collection schemes.
Includes packaging and packaging waste strategies in the annual business planning
process to ensure that the subject remains an integral part of operations.
Sets annual measurable food safety and quality objectives for all operations, and at
group level, to ensure continuous improvement and compliance with all standards.
Coca-Cola Hellenic will endeavor to:
Influence policy, regulation and innovation by working to develop structured
stakeholder dialogue, supporting the creation of equitable closed-loop packaging
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solutions, encouraging market mechanisms and promoting technological sorting

innovations.
Activate cross-sector packaging associations to support solutions for dealing with
the environmental impact of used packaging and packaging materials.
Ensure Coca-Cola Hellenic consumers enjoy variety and freedom of choice in
products and packaging options. • Enhance the efficiency and effectiveness of
established post-consumer packaging waste management organizations.
Continue to drive light-weighting efforts for primary packaging and encourage the
use of reusable and more efficient packaging design.
Continue to increase the recycled content of beverage packaging with emphasis on
PET beverage bottles. As Chief Executive Officer I am committed to the Post-
Consumer Packaging Waste Management Policy which is owned and endorsed by
the Corporate Social Responsibility Committee of the Board of Directors.
Responsibility for the successful implementation of this program belongs with
every Coca-Cola Hellenic employee at each level and function in the organization.
3.3 Organizational Culture

3.3.1 How Policies and Core Values are helping in developing culture in their
organization (examples)
These are some factors which helps to develop their culture more efficient
3.3.1.1 Board of Directors
The board of directors is elected by their shareowners to oversee their interests in the
long-term health and the overall success of the Company’s business and its financial strength.
It serves as the ultimate decision-making body of the Company, except for those matters
reserved to or shared with the shareowners. The Board fulfills its duties, including
implementation of risk oversight, with the assistance of various appointed Board committee.
The Board also selects and oversees the members of senior management, who are charged
by the Board with conducting the business of the Company.
3.3.1.2 Corporate Responsibility
Corporate responsibility is managed through the Public Policy and Corporate
Reputation Council, a cross-functional group of senior managers from our Company and
bottling partners. The Council identifies risks and opportunities faced by our business and
communities and recommends strategies to address these challenges.
3.3.1.3 Ethics & Compliance
The core of the ethics and compliance program at The Coca-Cola Company is our
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.
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3.3.1.4 Ethics Line

Our associates, bottling partners, suppliers, customers and consumers can ask
questions about our Code and other ethics and compliance issues, or report potential
violations, through Ethics Line, a global Web and telephone information and reporting
service. Telephone calls are toll-free, and Ethics Line is available 24 hours a day, seven days
a week, with translators available.
More information about our approach to and administration of ethical business
conduct for employees, suppliers, partners, and non-employee directors is detailed in our
Ethical business conduct page to its journey.
3.3.1.5 Public Policy Engagement
We participate in public policy dialogues around the world, particularly in the United
States. Our aim is to use our resources responsibly to advance public policy that supports our
industry and business priorities, our more than 700,000 system associates, our shareowners
and the communities we serve.
The Coca-Cola Company and our affiliated Political Action Committees comply with
U.S. laws and requirements regarding contributions to political organizations; candidates for
federal, state and local public office; ballot measure campaigns; political action committees;
and trade associations. The Public and Diversity Review Committee of our Board of
Directors reviews our advocacy efforts, including political contributions.
3.3.2 What Factors are Influencing their culture and How

3.3.2.1 Demographic Forces
Within Coca Cola several different demographic factors are relevant to their market
sector. Age is a factor that is relevant as the organization has to obey by certain laws and
regulations for example by advertising to children, it is deemed unorthodox and morally
wrong. Coca Cola have stated that they will not advertise their products to children and will
not show them on children TV channels as they contain high quantity of sugar and are
unhealthy.
3.3.2.2 Economic Forces
Inflation increases cost of production. Consequently, Coca Cola have to face the
uncontrollable problem of increasing their pricing. With this increase they risk losing
customers who cannot afford their products because it is a desired product not a necessity.
For example, in 2002, a 2 liter bottle of coca cola was 99p whereas today a 2 liter bottle costs
£1.98. Due to inflation in 11 years the price of an identical bottle of Coca Cola has doubled
in price. Alternatively, Coca Cola could be forced to lower their prices to facilitate an
increase in consumption whilst taking a less favorable profit margin.
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3.3.2.3 Natural Forces

Other ways that Coca Cola are responding to different natural forces is by trying a
more environmentally friendly packaging. Coca Cola say that they are always looking at
ways on how to improve their packaging and use less raw materials when creating them. At
the moment they use raw materials like petroleum and other fossil fuels to create their plastic
bottles. To reduce their use of these fuels they have create a new ‘Plant Bottle’ packaging
which will bring them one step closer in creating a completely petroleum free bottle. They
aim to achieve this goal by 2020.
3.3.2.4 Technological Factors
Coca Cola are breaking into other markets with the help of technology. They have a
partnership with Spotify which are a music service that offers music on demand. Coca Cola
and Spotify have created a service which provides customers with music and helps them
connect with others around the world that love the same type of music. Coca Cola have stated
that they like technological advances and that music has been a big part in their marketing
strategy. This is why they have partnered up with Spotify so they can improve this digital on
demand service and make it available to more people around the world.
3.3.2.5 Political Forces
The political forces that affect Coca Cola are mostly different rules and regulations
the company needs to follow in order to not break the law. Coca Cola promote their product
as a strictly non-alcoholic beverage. Because of this they are constantly monitored by the
government and health authorities on what they put in their drinks. Coca Cola are monitored
by more than 200 governments and health authorities which also includes Muslim countries
where Coca Cola need to include a Halal stamp on their product.
3.3.2.6 Cultural Forces
The rapidly growing population today has meant that more and more companies can
increase their market share and have more business. This is no different for Coca Cola. As
different cultures grow Coca Cola grows with them. This is because there are more people
to buy the products and it rapidly increase Coca Cola’s profit and also their market share.
Coca Cola expect that with a bigger population there will be more people and a greater
demand for products which votes positively for Coca Cola.
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3.3.3 Through what method(s) keep the culture alive

3.3.3.1 Our Winning Culture
Our Winning Culture defines the attitudes and behaviors that will be required of us
to make our 2020 Vision a reality.
3.3.3.2 Live Our Values
Our values serve as a compass for our actions and describe how we behave in the world.
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
Be the Brand: Inspire creativity, passion, optimism and fun.
3.4 Organizational Structure

3.4.1 Degree to which organizational design elements exit in company structure
3.4.1.1 Designing Organizational Structure: Authority &Control
The Coca-Cola Company currently employs approximately 94,800 employees.
According to general organizational chart obtained from the company’s website, there are
more than 5hierarchical levels at the corporate level. For example: the head of the Canadian
division reports to the president and COO of the North American Group. That president
reports to the CFO, who reports to the Office of the General Counsel. The General Counsel
then reports to the CEO. It is fair to assume that there are at least a few more steps in the
hierarchy at the local level. Due to its tall structure, the organization has experienced
communication problems. One of the problems discovered through a survey, was that the
people and the company lacked clear goals. Tall hierarchies also cause motivation problems,
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which is why the organization is attempting to get employees more engaged. The increased
usefulness of the company’s intranet will greatly increase the communication between every
level of employees, and allow upper management to effectively communicate to the front
line employees. Based on information from Report 2006 this span of control seems somewhat
slim for the CEO of such a large organization. The CEO is also a member of the Senior
Leadership Team. This team consists of each head of the eight operating groups
aforementioned, andalso has other top executives in areas like innovation and technology
and marketing.Although there are only six people that answer directly to the CEO, the CEO
is able to receive input from a wide variety of divisions because of this leadership team. Since
the team is comprised of members from various divisions, the CEO is able to obtain a wide
variety of information. The move to decentralization has caused structural changes for The
Coca-Cola Company .New offices have been opened to facilitate decisions being made closer
to the local markets. The organization has also undergone centralization of some of the
company’s departments. In 2006, the Bottling Investments division was created to “establish
internal organization for our consolidated bottling operations and our unconsolidated bottling
investments.” It appears that the organization is striving for a hybrid structure, which allows
them to have advantagesof both mechanistic and organic structures, while trying to minimize
the negativeconsequences of each. The strategic structural changes that the organization has
gone through in recent years have created a much needed positive impact on the company.
Sales growth increased and employees are much more satisfied. The organization is trying
to create a more innovative culture by pushing towards decentralization.
3.4.1.2 Designing Organizational Structure: Specialization & Coordination
The Coca-Cola Company realizes that a divisional structure gives the organization
the best opportunity to react to the changes in its uncertain environment, but also allow it to
maintain level of stability. The multidivisional structure is beneficial for the organization for
a variety of reasons. The division based on geographic region allows certain aspects of the
company’s operations to be tailored to the individual market. One advertising campaign or
slogan may not be appropriate for another market, so decisions about specific ads are made
closer to the individual markets. Multidivisional structures allow divisional managers to
handle daily operations while corporate managers are free to focus on long-term planning.
There are also problems associated with this type of structure. If the company creates
divisional competition, coordination may decrease because each division wants to have
anadvantage over everyone else. Communication problems may also exist
becauseinformation can become distorted when it has to travel up and down tall hierarchies.
Multidivisional matrix structure may be better suited for The Coca-Cola Company. This
would increase coordination between corporate and divisional levels, and managers at each
level would work together to create solutions to problems. While such a structure may be too
complex for a global organization, the company may want to look into it.
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3.5 Core competencies

3.5.1 What are the company-wide core competencies
Brand Name and Loyalty
Distribution and Manufacturing Networks
3.5.2 Which and How capabilities are linked with each core competency
3.5.2.1 Corporate Function
Multidivisional Coordination
International Management
Financial Control
3.5.2.2 Management Information
Developed, Formal Vertical and Horizontal Structure
3.5.2.3 Research &Development
Market Research
3.5.2.4 Operations
Supplier Relationship
3.5.2.5 Product Design
Suited to consume needs
3.5.2.6 Marketing
Brand management
Reputation for Quality
Market Trends
3.5.2.7 Sales &Distribution
Speed of Distribution
Effective Sales Promotion and Execution
3.5.3 Which and How resources are linked with each capabilities
3.5.3.1 Resources (Tangible)
Property, Plant and Equipment
Buildings and facilities constructed all over the world
Strong Financial Position
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Large positive cash flows

Human Resources
Training and development result in competent and motivated workforce
3.5.3.2 Resources (Intangible)
Technical Expertise
Constant innovation, R&D, new iterations of products to keep up with
market
Intellectual Property Rights
Stymie intense competition with patents and trademarks
Goodwill
High level of brand loyalty and brand visibility
3.5.4 On the basis of market analysis (Phase 2), evaluate each core competency through
4 Criteria Matrix
Core 4 Criteria Matrix
Competency
Brand Name
and Loyalty
Distribution
and
Manufacturin
g Networks
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3.6 Coca - Cola Porter's Value Chain Analysis

3.6.1 Inbound Logistics
1. The Suppliers
The suppliers of Coca-Cola include Ogilvy and Mather, Jones Lang LaSalle,
Spherion, IBM, IMI Cornelius, and Prudential. The above companies supply to Coca
Cola materials like ingredients, packaging, machinery, software etc.
2. The Standards
Coca-Cola has put certain regulations and standards in place which the suppliers
(mentioned above) must adhere to. The company has named these guidelines as The
Supplier Guiding Principles. Some of the guidelines include -
Compliance with laws, standards and regulations
Freedom of association and collective bargaining
Wages and benefits, work hours and overtime, health and safety, environment,
etc.
3. The Assessment
Coca-Cola continually makes efforts to assess their suppliers by the help
of third parties through interviews with contract workers and employers. If the
supplier do not adhere to the supplier guiding principles or has any other issues,
they are given some amount of time to take corrective measures; if not, Coca-
Cola has the right to terminate their contract with these suppliers.
3.6.2 Operations
1. The Secret Formula
Coca Cola's core operation is the concentrate and syrup production. The
company supplies this concentrate to the bottlers where the production of cola
happens. Other activities that impacts Coca Cola's business occurs across the
value chain through system's distribution networks, bottling operations and sales
and marketing activities.
2. The challenges
The company addresses the issues by cohesively working with their
partners (bottlers, suppliers etc.) to reduce the overall effects at each level of the
manufacturing process. They look at the problem from a holistic view by
understanding the overall environmental impact of their business through the
entire lifecycle of their products ranging from raw material procurement to the
production, delivery, sales and marketing of the product.
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3.6.3 Outbound Logistics

1. The Distribution System
Coca Cola has the world's largest distribution system. They operate in
over 800 plants around the world. They operate in more than 200 different
geographic locations and market more than 2,400 beverage products. They have
distribution reach varying from hypermarkets such as Wal-Mart, fast food
restaurants such as McDonalds to small Kirana stores in rural parts of India.
2. The Bottling Partners
Coca Cola has more than 300 bottling partners. These partners range from
small family owned operations to publicly traded businesses. In order to work
cohesively and meet the need of all their customers, Coca Cola has implemented
the Coca Cola System in which they work together with their partners and
develop strategies to benefit the full ecosystem.
3.6.4 Sales and Marketing
1. The Marketing Strategy
Coca Cola is primarily a marketing company. They market more than
2,400 products to the consumers. They market world's top four (by sales)
beverage drink brands. Creativity is a vital strategy for Coca Cola. They work
hard on their marketing strategy in order to deepen their brand connection with
their customers. As a result, innovation plays a very important role in the
company. Their marketing strategy is directly linked to the consumer ranging
from advertising, to point of sale, to ultimately usage of a Coca Cola drink. They
apply innovation is every dimension of the supply chain which includes new
product development, increasing brand equity, packaging and designing various
new advertising campaigns.
3.6.5 Service
1. Servicing their Customers
Activities that maintain and enhance a product value include customer
support, training and development, installation and maintenance. Coca Cola's
customers range from large international retailers like McDonald's, KFC and
restaurants to smaller independent businesses and vendors like Kirana and
regional stores. They provide customized services tailored to meet their
customer's needs.
2. Servicing their Partners
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Coca Cola also supports their retailers by enabling them with the
necessary training to help their businesses become more profitable and effective.
They have set up Customer Development and Training Centers which are
available to more than 21,000 independent retailers. They provide free training
to the retailers in areas such as marketing, finance, operations, general
management and customer service.
3.7 Strategic Objectives
Strategic objectives are long-term organizational goals that help to convert a mission
statement from a broad vision into more specific plans and projects. They set the major
benchmarks for success and are designed to be measurable, specific and realistic translations of
the mission statement that can be used by management to guide decision-making. Strategic
objectives are usually developed as a part of a two- to four-year plan that identifies key strengths
and weaknesses and sets out the specific expectations that will allow the company or
organization to achieve its more broad-based mission or vision statement.
As per Coca-Cola, the company's aims and objectives are to refresh the world, to
inspire moments of optimism and happiness, and to create value and make a difference.
These aims and objectives are centered on a desire to thrive "over the next ten years and
beyond." The Coca-Cola Company is a leader in the beverage industry with a reputable brand
and strong global presence.
According to the Coca-Cola Company’s mission statement and 2020 Vision, some of its
goals include:
• Increase annual operating income by 6-8% in order to double their

revenue by 2020.
• Focus on environment friendly bottling production and enforce

sustainability;
• Increase profit by cutting down costs through productive and

efficient production facilities;
• Continue to diversify its portfolio through innovations and

partnerships, keeping consumer demands in mind;
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1. Competitor Environment
The Coca-Cola Company’s main objective is to maintain its diet carbonated
beverage sales in developed markets. As the demand for carbonated beverages in emerging
markets is increasing, such as markets in Middle East and Africa, may double 2010’s
revenues by 2020 (Euromonitor,2013). Additionally, as the trend of health and wellness is
shaping the soft drink industry, the Coca-Cola Company is trying to increase its non-
carbonated beverages sales in the market by acquiring other drink companies. PepsiCo The
main competitor of the Coca-Cola Company is PepsiCo. PepsiCo is the world’s second
largest food and beverage company and has a presence in over 200 countries. In order to
meet consumers’ health and wellness requirement, PepsiCo has acquired Nutrition Co as a
subsidiary. PepsiCo is temporarily focusing on reshaping its brand image that emphasizes
on healthy food and drinks. Like the Coca-Cola Company, PepsiCo has established well-
known brands including, Pepsi, Gatorade.
2. Main Strategic Challenges
Increasing revenue streams from all fronts In order to achieve its goal of doubling
the revenue in ten years, Coca-Cola needs to sell its products in new geographic areas and
expand its product like that meet the consumers’ changing preference and behaviors.
Maintaining its current market size in the developed market, the company also needs to
increase sales in developing markets. Diversification Carbonated beverages are the
company’s bread and butter business so that the company is heavily relied on their sales.
This implies that the company needs to increase awareness and sales on other drinks, such
as bottled water, juice, ready-to-drink tea, and even Asian specialty drinks since the
consumer preferences are changing. Moreover, in order to maintain their share of sales in
the increasing competitive market, Coca-Cola has to continue to strengthen their brand
loyalty, innovation, and expand into other product categories in the beverage industry. Diet
products cannibalizing standard variants As consumers have growing concerns about their
health, such as obesity issues, which results in a reduce demand of standard cola. Therefore,
the amount of sugar in regular soft drinks needs to be reduced accordingly. Although the
introduction of the diet cola successfully addressed this issue, the increasing demand and
sales of diet drinks cannibalized the sales of standard cola. The company needs to find a
way to sustain their revenues while anticipating consumers’ preference changes.
Acquisition targets in developed markets with the strong penetration power in the mature
soft drinks industry, the Coca-Cola Company’s revenue growth can be generated from
secondary markets or new markets. However, in developed markets, an acquisition option
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is limited because of market consolidation. It is challenging for the company to make large
acquisitions in all markets.
3.7.1 WE FOCUSED ON DRIVING REVENUE AND PROFIT GROWTH
Each of the 200-plus nations we serve plays a critical role in our growth plans.
We used segmented revenue growth strategies across our business in a way that
varied by market type. And we aligned our employee incentives accordingly. In emerging
markets, we focused primarily on increasing volume, keeping our beverages affordable and
strengthening the foundation of our future success. In developing markets, we struck a
balance between volume and pricing. In developed markets, we relied more on price/mix and
improving profitability by offering more small packages and more premium packages like
glass and aluminum bottles.
Creating value for our Company and customers looks different in different countries,
and we did a good job segmenting our markets to drive revenue growth in 2015. While we
still have more to do, we were encouraged by our results. Globally, price/mix rose 2 percent
as did volume, helping increase organic revenue 4 percent. We also gained worldwide value
share in our industry.
3.7.2 WE INVESTED IN OUR BRANDS AND BUSINESS
Healthy businesses require continuous investment. We made a choice to invest in

more and better marketing for our brands, increasing both the quantity and quality of our
advertising. We increased spending on media advertising by more than $250 million, and we
used these funds to share stronger, more impactful ads.
At the same time, we invested across our expansive beverage portfolio. We improved
our position in the energy category with a strategic new partnership with Monster Beverage
Corporation. We invested in brands like Suja, a line of premium organic, cold-pressed juices,
and agreed to buy China Green Culiangwang, a plant-based protein beverage brand. We also
expanded to nationwide the U.S. distribution of fairlife ultra-filtered milk.
In 2015, we developed our first global marketing campaign to support the entire
Coca-Cola Trademark of Coke, Diet Coke, Coke Zero and Coca-Cola Life. Launched in
early 2016, “Taste the Feeling” emphasizes the refreshment, taste, uplift and personal
connections that are all part of enjoying an ice-cold Coca-Cola. With this campaign and our
broader “one brand” strategy, we’re letting consumers know they can enjoy Coca-Cola with
calories, fewer calories or no calories and with or without caffeine. The choice belongs to
each individual, every time he or she reaches for a delicious and refreshing Coca-Cola.
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3.7.3 WE BECAME MORE EFFICIENT
As we took steps to rebuild our growth momentum, we knew we needed to invest in

more and better marketing while also increasing our financial flexibility. To these ends, we
increased our efficiency and productivity while reducing costs.
Part of the solution was “zero-based work”—a way of looking at our business that
starts from the assumption that organizational budgets start at zero and must be justified
annually, not simply carried over at levels established in the previous year. We also cut
spending on non-media marketing like in-store promotions. And we found new savings in
our supply chain around the world.
Overall, we were able to realize more than $600 million in productivity improvement
in 2015, which we used to invest further in our brands and business and also to return to our
shareowners.
For the future, we’re working to drive productivity and continuous savings across our
Company and system. We see productivity not as an event or series of events but as an
ongoing, day-by-day process of becoming stronger, leaner and ultimately better.
3.7.4 WE SIMPLIFIED OUR COMPANY
Few industries have changed more rapidly in recent years than the nonalcoholic
beverage industry. Evolving consumer tastes and preferences, coupled with sweeping
innovations in the retail and supply chain landscapes, have created an environment in which
speed, precision and empowered employees determine who wins in the marketplace.
To seize this opportunity, we took steps to reshape our business. We looked hard at
our operating structure and identified areas where we could be faster, smarter and more
efficient. We removed a layer of functional management and connected our regional business
units directly to headquarters. We streamlined a number of important internal processes and
removed roadblocks and barriers that inhibited us from being as effective and responsive as
we knew we could be.
Most importantly, we began to look at ways to enhance further the employee

experience across our Company with the goal of creating the world’s most exciting, productive,
fun and fulfilling career environment, with workplaces that nourish curiosity, learning,
innovation and growth. While this journey has just begun, our associates have responded with
the resolve, commitment and passion that have been hallmarks of Coca-Cola leadership since
1886. The Coca-Cola Company has always been a creator of refreshing beverage brands.
Today, our expansive portfolio includes more than 500 brands, including sparkling beverages,
juices and juice drinks, coffee, tea, sports drinks, water, value-added dairy, energy and
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enhanced hydration drinks. Among these brands are 20 that generate more than a billion dollars
in annual retail sales. Another core competency has been our ability to lead the world’s most
sophisticated system of independent bottling partners while creating value for our retail and
restaurant customers. Over the years, we’ve acquired and managed a number of Coca-Cola
bottling partners with the aim of improving performance, optimizing manufacturing and
distribution systems, and ultimately refranchising the bottling territories back to independent
status.
3.8 Current Strategies (to achieve above objective) (combination of strategies / single
strategy for each objective)
3.8.1 Corporate Level Strategies
The Coca-Cola Company uses the following corporate level strategies:
3.8.1.1 Growth Strategy:

They follow the growth strategy. The Coca-Cola Company invests a huge amount on
its s expansion projects not in Pakistan but also in all the six operating regions of the world.it
is currently present in more than 200 countries which is a big depiction of its focus on growth
strategies. As it’s the large scale organization, so Coca-Cola has to use different types of
growth strategies in different situations. Like if it aims to target new customers and introduce
new products than it has to use horizontal growth strategy. If it invests in its own supply
chain as a part of cost leadership strategy, it is basically focusing on vertical growth. The
coca cola company has developed its own supply and distribution system in various potential
markets of the world which largely helps it in controlling the heavy manufacturing and
distribution costs.
3.8.1.2 Diversification strategy:

The company has used diversification strategy various times. It was founded as soft
drink manufacturer but with the passage of time, it entered into various related industries like
mineral water, soda, tea, coffee, fruit juices. These diversification strategies have increased
its business portfolio and enabled it to compete with the top brand in all these industries.
3.8.1.3 Stability Strategy:

The company uses this strategy when it feels that growth strategy are not a feasible
choice in the presence of unfavorable economic circumstances or some internal issues.
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Therefore, it either proceeds with an extra care or completely stops at the current position
and focuses on its quality control, marketing efforts, supply chain and R&D.
3.8.1.4 Retrenchment strategy:

The coca cola uses retrenchment strategy in those business units where it observes no
or little growth during a definite period of time. T retrenches these business units in a number
of ways; including budget-cut for production, marketing, R&D in that area, complete
shutdown of operations, selling out the whole unit to private investors.
3.8.2 Business level strategies

The Coca-Cola Company uses the following business level strategies:
3.8.2.1 Differentiation strategy:

The coca cola company has always focused on differentiating its products from those
of its competitors in order to establish a unique position in the global beverages industry. Its
top most brands like coca cola, sprite and Fanta are manufactured under strict quality
standards and by unique formulations. Due to its differentiation strategy the Coca-Cola
Company is able to maintain the top market leadership position. Differentiation is found in
each of its business operation. It uses unique marketing campaigns, labeling, bottle shapes,
and up to dated plant and machinery to manufacture the top quality beverage products.
3.8.2.2 Low cost leadership:

In addition to delivering the top quality products, the company also keeps an eye on
its increasing operational and marketing expenditures. It recognizes the importance of cost
control for gaining competitive advantage in the industry and operating in a more profitable
way. The coca cola company has been pursuing this strategy since its incorporation. It
strongly emphasis on internal efficiency so that its products can be manufactured at the
minimum possible cost.it has maintained a tight control over its manufacturing, overhead,
marketing, and R&D costs.
3.8.2.3 Focus Strategy:

The company also uses focus strategy in both cost and differentiation dimensions.
For its focused low cost strategy, it has defined a specific line of beverage products through
which it can target a specific market and achieve low cost by manufacturing these products
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under highly efficient manufacturing processes. The Coca-Cola is manufactured and

promoted under focused low cost strategy. Coca cola is sold in more than 200 countries of
the world, but has slight variations in its taste, flavor, and ingredients. The company produces
its coke for every target at a large scale in order to achieve low cost leadership in that
market.it keeps that target market under complete focus while designing its marketing
campaigns and selecting distribution networks so that it can serve the potential consumers
from that market in the most effective and efficient way.
3.8.3 Functional level strategies

The Coca-Cola Company uses the following functional level strategies:
3.8.3.1 Marketing Strategies

1. Pricing strategy:
Due to the availability of wide range products the pricing is done according to
the market and geographic segment. Each sub-brand of coca cola has different pricing
strategy. Their pricing strategy is based on the competitors pricing, Pepsi is the direct
competitor to coke. Beverage market is said to be a oligopoly market (few sellers and
large buyers), hence they form into cartel contract to ensure a mutual balance in
pricing between the sellers.
2. Distribution strategy:
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.Hub and
Spoke model for rural distribution channel, in which they divided the different
categories of distributors according to the area they are covering.
Coca Cola Company makes two types of selling:
Direct selling: In direct selling they supply their products in shops by using
their own transports. They have almost 450 vehicles to supply their bottles. In this
type of selling company have more profit margin.
Indirect selling: They have their whole sellers and agencies to cover all area.
Because it is very difficult for them to cover all area of Pakistan by their own so they
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have so many whole sellers and agencies to assure their customers for availability of
coca cola products.
3. Promotion strategy:
Push Strategy: Coca cola is using Push strategy in which they use its sales
force and trade promotion money to induce intermediaries to carry, promote and sell
the product to end users i.e. consumers. • For example-as coca cola is giving free pet
bottles and other trade schemes to distributors, agency owners and retailers.
Pull Strategy: Coca-Cola is also using Pull strategy in which they are using
advertising and promotion to persuade consumers to ask intermediaries for the
company brand product by this way coca cola inducing customer to order it from
shopkeeper.
3.8.4 Financial Strategies

3.8.4.1 Financing and Dividend decisions strategy:
There is a Committee established by the Board to aid the Board in discharging its
responsibilities relating to oversight of the Company's financial affairs.
The Committee consists of no fewer than three members. The members of the
Committee shall be established by the Board and removed by the Board.
The Committee periodically formulate and recommend for approval to the Board the
financial policies of the Company, including management of the financial affairs of the
Company. The Committee have prepared for approval by the Board annual budgets and such
financial estimates as it deems proper; have oversight of the budget and of all the financial
operations of the Company, shall recommend dividend policy to the Board and from time to
time shall report to the Board on the financial condition of the Company. All capital
expenditures of the Company shall be reviewed by the Committee and recommended for
approval to the Board.
3.8.4.2 Working Capital Strategy:

Coca-Cola Enterprise used Economic Value Added (EVA) in the 80’s in order to
hold its profit and loss statement to a higher standard and attract investors. Another way to
evaluate true profit is to calculate the cost of capital which is what EVA attempts to do. By
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managing working capital and the cost of such, a company can stay competitive and liquid.
There are two kinds of capital – that which is borrowed and that which is invested. There is
a cost to both kinds of capital. By using EVA Coca-Cola Enterprise was able to attract
investors which meant a steady stream of working capital with which to run the day to day
business.
3.8.4.3 Financial or revenue/ profit growth strategy:

The company’s strategic objective is to maximize the revenue and profit growth of
the company. And for this purpose coca cola has used segmented revenue growth strategies
across their business in such a way that varied by market type. And they aligned their
employee incentives accordingly. In emerging markets, they focused primarily on increasing
volume, keeping the beverages affordable and strengthening the foundation of their future
success. In developing markets, they struck a balance between volume and pricing. In
developed markets, they relied more on price/mix and improving profitability by offering
more small packages and more premium packages like glass and aluminum bottles.
3.8.4.4 Human Resource Strategies

Human resource management at Coca Cola Company has many advantages as well
as disadvantages. As a global company, it focuses on the acquisition and retention of highly
skilled and knowledgeable employees so that is can maintain its top position in the market.
Coca Cola Company human recourse department check their job decryption and job analysis
in which they get the information about employees work activities, human behavior and other
background check which related to the job position. They use this information for recruiting,
selection, compensation, performance appraisal, training and employee’s relationship
HR department management states that employees are our assets, therefore we care
about their health and benefits.
1. Mentoring programs that provides an opportunity for employees to broaden their

professional network of resources, enhance their overall employment competitiveness
and benefit from learning about multiple areas of the company.
The program includes:
One on one mentoring
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Group mentoring
Self-study mentoring
2. The company encourages also coaching, feedback, exchange of ideas, diverse thinking,
and cross-functional learning.
3. Employees’ relations.
4. Compensation and benefits.
5. Training and Development.
6. Provide employees with solutions to their problems.
7. Look out for the well-being of all employees of the company.
3.9 Identify Rival Firms: PepsiCo

As a main rival in soft drink industry against coke, Pepsi expanded through a franchise
bottling network but with a greater focus on retail sales over fountain( fast foods like taco bell).
Pepsi is second to coke in sales.
3.9.1 PepsiCo’s Strengths (Internal Strategic Factors)
PepsiCo’s continued global growth and prominence reflects the company’s strengths. This
aspect of the SWOT analysis framework outlines internal strategic factors that enable firms to
fulfill their business goals. The following are the most significant strengths of PepsiCo:
3.9.1.1 Strong brand recognition and reputation

PepsiCo owns and markets some of the most recognizable global brands, including Pepsi,
Tropicana, Gatorade, Mountain Dew, Aqua-fina, Lay’s, Doritos, Cheetos and many other popular
brands. According to Interbrand and Forbes, the Pepsi brand is respectively the 24th and 29th most
valuable brand in the world, worth US$19 billion in both rankings lists. Forbes also identified Frito-
Lay as the 38th most valuable brand in the world, worth US$13.1 billion. Except for Coca-Cola
and Sprite, no other non-alcoholic beverage brand besides Pepsi has been recognized as being one
of the top 100 most valuable brands in the world. Euro monitor measured the most popular U.S.
snack brands in 2013 and 6 of the 10 most popular brands were owned by PepsiCo.
3.9.1.2 Broad product mix
In addition, the broad product mix represents PepsiCo’s increasing ability to reach various
markets and segments, such as through Frito-Lay products, Quaker products, and Pepsi products.
3.9.1.3 Extensive global production network
PepsiCo’s extensive global production and distribution networks are strengths that support
the company’s international growth and expansion strategies.
3.9.1.4 Extensive global distribution network
In this aspect of the SWOT analysis, PepsiCo’s strengths are sufficient to support its global
growth strategy.
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3.9.2 PepsiCo’s Weaknesses (Internal Strategic Factors)

PepsiCo suffers from a number of weaknesses that act as barriers to international growth.
The internal strategic factors that limit organizational development are considered in this aspect of
the SWOT analysis framework. The following are PepsiCo’s main weaknesses.
3.9.2.1 Low penetration outside the Americas
PepsiCo derives about 70% of its revenues from markets in North America and South
America. This weakness indicates that the company has not yet maximized potential revenues
outside the Americas.
3.9.2.2 Limited business portfolio
In addition, PepsiCo operates primarily in the food and beverage industry. This is a
weakness because it maximizes the company’s vulnerability to risks in the food-and-beverage
market.
3.9.2.3 Weak marketing to health-conscious consumers
Also, PepsiCo fails to effectively market many of its products to health-conscious
consumers. This aspect of the SWOT analysis highlights weaknesses that PepsiCo must address
through changes in its growth strategy.
3.9.3 Opportunities for PepsiCo (External Strategic Factors)

PepsiCo has opportunities for continued global growth. In this aspect of the SWOT analysis
framework, external strategic factors that provide options for business improvement are identified.
PepsiCo’s opportunities are as follows,
3.9.3.1 Business diversification

PepsiCo has the opportunity to diversify its businesses, such as by acquiring a
complementary firm that is not in the food and beverage industry.
3.9.3.2 Market penetration in developing countries
Another opportunity is for PepsiCo to increase its penetration in developing countries to
generate more revenues from markets outside the Americas.
3.9.3.3 Global alliances with complementary businesses
In addition, PepsiCo can create alliances with complementary business to increase its
market presence. Based on this aspect of the SWOT analysis, PepsiCo has significant opportunities
to strengthen its business resilience.
3.9.4 Threats Facing PepsiCo (External Strategic Factors)
The food and beverage industry experiences a variety of threats. External strategic factors
that could reduce business performance are considered in this aspect of the SWOT analysis
framework. In PepsiCo’s case, the following are the most significant threats:
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3.9.4.1 Aggressive competition

Aggressive competition is a major threat against the company. The influence of the Coca-
Cola Company is especially significant against PepsiCo.
3.9.4.2 Healthy lifestyles trend
In addition, the healthy lifestyles trend is a threat against PepsiCo’s products, many of
which are seen as unhealthful because of their sugar, salt, or fat content.
3.9.4.3 Environmentalism
Also, environmentalism threatens the company in how consumers negatively respond to
product waste and lifecycle issues. This aspect of the SWOT analysis indicates that PepsiCo must
reform its strategies to overcome the threats to business.
3.9.5 Objectives of PepsiCo
3.9.5.1 Detailed company objectives
The main objective of launching PepsiCo was to provide a quality product, product at
affordable price for the masses in addition through an organized and well mannerism. Corporate
social responsibility are also an important part of company objectives because PepsiCo consider
this goal as fundamental for private growth but for environmental growth too.
3.9.5.2 Objectives in term of market share
The objective of the PepsiCo is the “market share growth”. Although organization has
been able to capture a greater percentage of market but still they want to strive for more market
share as well as a quality product and service.
3.9.6 PepsiCo’s Generic Strategies
PepsiCo applies different generic competitive strategies, considering the company’s wide
array of products. However, the main generic strategies that contribute to PepsiCo’s competitive
advantage are as follows,
3.9.6.1 Cost leadership

PepsiCo uses cost leadership as its primary generic competitive strategy. This generic
strategy focuses on cost minimization as a way to improve PepsiCo’s financial performance and
overall competitiveness. For example, to compete against Coca-Cola products, PepsiCo offers low
prices based on low operating costs. The company also sometimes has special promotional offers
with discounted prices. . A strategic objective for the cost leadership generic strategy is to automate
production processes to minimize PepsiCo’s operating costs.
3.9.6.2 Broad differentiation

PepsiCo uses broad differentiation as its secondary generic competitive strategy. This
generic strategy enables business competitive advantage by attracting consumers to some unique
features of the firm’s products. For example, PepsiCo’s Lay’s potato chips are marketed as a
healthful snack product because of reduced saturated fat content. In relation, PepsiCo’s strategic
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objective for the broad differentiation generic strategy is to innovate products to address concerns
about their health effects.
3.9.6.3 Market Penetration

PepsiCo implements market penetration as its primary intensive growth strategy. This
intensive strategy supports business growth through increased sales, such as from a bigger market
share. For example, PepsiCo uses aggressive marketing to attract more consumers. A strategic
objective linked to this intensive growth strategy is to minimize costs and prices to attract more
consumers despite market saturation. As such, PepsiCo’s generic competitive strategy of cost
leadership supports this intensive strategy for growth.
3.9.6.4 Product Development

PepsiCo’s secondary intensive growth strategy is product development. This intensive
strategy requires offering new products to capture more consumers. For example, PepsiCo
continues to develop products or variants of existing ones, such as low-calorie, reduced-salt, or
low-saturated-fat variants of its food and beverage products. A strategic objective linked to this
intensive growth strategy is to boost R&D investments for product innovation. PepsiCo’s generic
competitive strategy of broad differentiation supports this intensive strategy by offering unique or
novel products to attract more consumers and grow the business.
3.9.6.5 Market Development

PepsiCo applies market development as its supporting intensive growth strategy. This
intensive strategy supports business growth by capturing new markets or market segments. For
example, PepsiCo continues to expand its distribution network to reach the last remaining markets
or segments, especially in developing regions. However, market development is only a supporting
intensive growth strategy because PepsiCo already has significant presence in all regional markets
worldwide. A strategic objective for this intensive strategy is to expand PepsiCo’s supply chain to
support the growth of its distribution network.
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3.10 SWOT Analysis

1. It is the number one 1. Traces of pesticides
beverage in terms of found in the cola beverages
distribution and sales and had damaged the image of
value ($77,389 billion).
the brand.
2. Its portfolio comprises of
famous brands like Coca-
Cola, Kinley, Fanta, Minute
Maid, Limca, Maaza, etc. 2. PepsiCo is a strong
competitor in the aerated
3. Globally present and has drinks industry and thus
reach in almost 200 countries. constant competition runs
4. It has more than 500 brands between them for market
to offer share.*
5. Employees almost more
than 150,000 people globally
WEAKNESSS
6. Coca-Cola carries an 3. Absence in the food and
STRENGHTS
effective and strong supply snacks industry.

chains which ensures that its
products are delivered and
available even in the most 4. Negative publicity
remote places.
7. Financially strong
8. Maintains strong brand
recall by associating their
brands with brand
ambassadors and celebrities
through advertising and
marketing.
9. Socially responsible: Taken
CSR initiatives in the avenues
of education, recycling and
water conservation, health,
etc.
10. Gives emphasis recycling
and reusing through its
efficient and effective
packaging and disposing
techniques.
11. The brand has long been
associated with scholarships,
donations and international
sports.
12. Customer Loyalty
13. Bargaining power over
suppliers
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1. Takeover and acquire other 1. Health reports claim Coke

companies to enter other is harmful to health;
industries. Consumers have become
health conscious.**
2. Reach untapped markets
and countries where Coca- 2. Compliance with
Cola has not been introduces regulations and laws of
yet. various countries in which
they operate and distribute.
3. Market and promote the
OPPORTUNITIES
THREATS
less known products of the 3. Economic slowdown,
portfolio. inflation, currency
instability, etc.
4. Diversify into other
industries like snack market 4. Head-to-Head
to beat PepsiCo. competition with PepsiCo.
5. Lower threat of forward
integration due to the strong
supply chain network, high-
cost manufacturing
machineries required.
6. Advance technological
progression
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4 Phase 4 – Gap Analysis & Recommendations

Topic Gap Analysis (Issues) Recommendations
4.1 External Analysis
Natural Environment Coca-Cola has been Due to this coca
accused of dehydrating cola wastage the water
communities in its pursuit of resources and the
water resources to feed its own community suffers a lot. In
plants, drying up farmers' this case they must start up
wells and destroying local the program for the
agriculture. reservation of water so that
Greater efficiency in the economy prevent from
water use does not mean dehydration.
making less product. To the
contrary, they intend to reduce
their water use ratio—the
amount of water we use per
liter of product produced—
while growing our business.
Looking across their system,
their data show that the highest
water use ratios are often in
developing markets, where
water risks may be higher. One
main reason: In developing
markets, refillable glass bottles
make up a large percentage of
their unit case volume, and
cleaning returned bottles
demands more water. Even in
those markets, their bottling
plants typically draw a small
percentage of water from local
water sources, and each plant’s
source water protection plan
helps mitigate any threats to
local water supplies.
Societal Environment Political Factors Coca-Cola should

stop to sell the products to
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Coca-Cola has been Israel. Because it impact

also effected in the turkey and the economy. So it is
India by political decisions recommended to stop
when Israeli attacks on Gaza in selling here.
2014, then Turkey, and more
than 100 hotels in Mumbai,
stop selling products of Coca
Cola Company because these
countries said that the attacks
of Israel on Gaza is because of
its economic power. So they
should stop selling products of
those brands which contribute
to the Israeli economy and
Coca-Cola brand is one of
them who directly contribute
to Israeli economy. So here
Coca-Cola brand is effected by
the political decisions of
Turkey. It has negative impact
on coke. In this regard coca-
Economic Fectors cola must apply some
The global economic and strategies to improve in the
financial crisis of 2007 – 2009 economy because it will
is a relevant example of an impact on the brand of
economic factor that greatly coca-cola. Market share
impacted the majority of price must increase in this
businesses around the globe. regard.
However, the crisis has
impacted Coca Cola to a lesser
extent compared to many other
businesses. Its operating
margin remained at industry-
front 22% despite the crisis,
although dividend yield was
reduced to 2.6% .No doubt
coke was effected lesser by
that recession but it was To promote an
effected by economic factors advertising system in a
in a negative way. positive way rather than the
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Social Factors musical or negative that

Adaption and cultural will impact society.
borrowing
To promote an
advertising system in a
positive way rather than the
musical or negative that will Research and
impact society. development must be focus
Technologic Factors to cater technology.
Access to the Internet
It has on negative impact on
company policies because
those people who are not using
internet cant aware brand
identity.
PESTEL Analysis Someone might be thinking

that what is an
environmental analysis got
to do in the business
perspective? This analysis
is factors or features that do
influence an increase or
decrease in the quality of
strategic decision making
in a business environment.
There are various factors
under this analysis that
could help to attain the
objectives of a company
and as well act as a barrier.
The environmental analysis
can as well be divided into
two parts.
Remote (micro)
environmental factors:
these are the factors that
affect company or the
organisation of which they
104
do not have control over it.

These factors are;
Political
Social
Economical
Technological
Ecological
Industrial (macro)
environmental factors:
these are factors that the
organisation or the
company has some control
of. It can also be called
'porter's 5 forces'. These
factors are;
Barrier to entry- these has
to be high
Supplier power- these
should be low
Substitute- has to be low as
well
Competitive- has to be low
Buyer power- it must also
be low.
Task Environment WATER STEWARDSHIP Collaborating to
Replenish the
Of the 9.25 million trillion Water We Use
gallons1 of water on earth, less Improving Water
than one percent2 are available Efficiency
to meet the needs of the Wastewater:
planet’s 7 billion-plus3 people. Safely Returning
And stress on the world’s the Water We
water supplies—from Use to Make Our
population growth, Beverages
urbanization, climate change Mitigating Water
and more—is increasing. Risk for
Preserving and effectively Communities
managing the world’s Partnering to
available freshwater— Advance Water
achieving what policymakers Stewardship
105
call water security—may be Inside the Bottle:

humanity’s most crucial task. Things You Want
In that sobering reality, Us to Answer
Margaret Catley-Carlson, past Around Water
chair of the Global Water Meet Our Experts
Partnership, sees hope—
provided that all of us are
committed to the stewardship
that water security demands. In
Ms. Catley-Carlson’s words:
"In the clamor of facts, figures

and dramatic predictions, there
is a constant quiet message
about water adequacy: we
probably have enough water,
but not if we use it the way we
do now.
What does that mean, exactly?
Mostly it means that the

growing number of countries,
cities, corporations— and yes,
individuals— experiencing or
threatened with water stress
will have to change the way
they manage and use the water
resources available to them.
Sizeable investments will be
needed in the all-too-many
places where municipal pipes
leak 30 to 60 percent of the
water that is stored, cleaned
and put into the system for
distribution. Industrial, energy
and agricultural processes
must be examined to
understand the potential for
reduction, recycling and re-
106
use. Having ‘enough water to

eat’ means optimizing the use
of the 75 percent-plus of all
water used that goes to
agriculture. And it means
changes in how we use water
as individuals, too. Why do we
flush with drinking water?
That improvements are being

made (though not in enough
places) means there are
prototypes and technology
available; the will to make
these more widespread will
have to be cultivated and
encouraged. But it has been
done and can be done, even in
resource-poor areas.
Kudos to companies already

embarked on this process, and
especially to those trying to
extend water-saving practices
up and especially down their
supply chains. Again, it can be
done. It has been done. More
needs to be done.
Since few of these measures

are cost-free, the unwelcome
but essential change almost
everywhere will be that most
of us need to pay more for
water services—sanitation and
wastewater services
included—to protect us and
our water resources. We are
not the only life form that
depends on water for survival,
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so we have a high interest in

making sure that the
environmental resources that
sustain us are in turn sustained
by us."
At The Coca-Cola Company,

we are intensely involved in
water stewardship across our
system and in hundreds of
communities throughout the
world. We are working to use
water more efficiently. We are
treating and recycling
wastewater. And we aim to
replenish the amount of water
used in our finished beverages
by 2020. Read about our
progress in the Water
Stewardship section of this
report.
CAPITALISE ON THE
WIDER HEALTH AND We use evidence-
WELLNESS TREND IN based science. We are
SOFT DRINKS committed to using
evidence-based
Areas such as ‘better-for-you’, science to guide the
‘naturally healthy’ and choices we offer and
‘fortified/functional’ are the the way we educate
opportunity areas within about those choices.
existing soft drinks categories.
Coca-Cola already has a wide We innovate. We are
range of juice brands and committed to
waters that could prove to be investing in the
winners for the company, but it development of
must continue to develop and products, sweeteners,
innovate new health and packaging, equipment
wellness angles within its and marketing that
brands. A key growth area
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could be fortified/functional fosters active, healthy

drinks and energy drinks, living
where opportunities to add We provide
new functional ingredients are hydration choices
continually being discovered. and educate
consumers about
How will Coca-Cola expand them. We are
its presence in this space? The committed to bringing
company’s Monster Energy real choice to
equity investment late last year consumers
was an important step to shore everywhere and to
up market share in the energy educating them on the
category, but growth rates in role our variety of
this space show signs of beverages can play in
slowing slightly. What are the sensible, balanced
company’s innovation plans in diets as well as active,
healthier and functional healthy lifestyles.
beverages. We inform with
transparency. We are
committed to
transparency about the
nutritional content of
our products.
We market
responsibly. We are
committed to
responsible marketing
of our products,
honoring the rights of
parents and
caregivers, and
informing and
educating consumers
about the beverages
we provide.
We promote active,
healthy living. We
are committed to
being part of workable
solutions to the
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problems facing
society related to
obesity. We seek to do
this by assisting our
associates and their
families, as well as the
communities that we
serve, in promoting
active, healthy living.
4.2 Internal Analysis

Vision / Mission / Core Values The Issue lies in the Mission Coca Cola’s
Statement of Coca Cola. The Mission statement does
mission Statement of Coca explicitly have all the 9
Cola is, components of the good
“Coca-Cola Pakistan mission statement. Coca
exists to refresh the Cola should more clearly
consumers, inspire moments mention their self-concept
of optimism through our or competitive advantage in
brands and actions as well as their mission statement.
benefit all stakeholders, which Customers and target needs
we will do with highest social to be a bit clearer in here.
responsibility and with Core values needs
uncompromising commitment to be implemented properly
towards quality of our products inside the domains of the
and integrity in our company. All they need are
operations”. the proper implementation.
However, the mission
statement of Coca Cola does
not include the 9 components
of a mission statement.
The Core Values which are
listed on their website and in
their documents are not always
implemented inside the
Factory of Coca Cola
Beverages Pakistan Limited
Organizational Policies Coca Cola’s HRM, and Coca Cola need to adopt to
Financial, policies have soft HRM approach to deal
become too rigid and does not with the employees.
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have much flexibility. Hence, Company should not

the company is facing the maintain adequate staffing
problem of under-staffing one levels in the company
employee doing the job of two rather than making it an
employees in a department and under-staffed company.
being paid just lesser than 2
employees.
Organizational Culture 1. Diversification is an 1. They should do
issue. It is good to have proper
diversified workforce arrangements to
but due to eliminate this
diversification they communication
have problem of gap. They should
communication as arrange proper
well. classes and courses
2. Due to the great and to learn the
big organization they languages.
are not properly 2. They should make
relating and having proper
relationship with their arrangements for
front staff employees. the employees of
3. Women in the lower level. They
organization are less. should give them
There are less women respect, trust, and
and the existing one should also involve
because of being them into the
minority do not avail decision making
the facilities and related to the
culture is not suitable culture of
and friendly for organization. They
them.in Pakistan should also be
females are not let to asked about their
come to the upper problems that they
management they are are facing in the
always working in the organization.
lower staff. Same is the 3. They should
case with coca cola in increase their
Pakistan. female staff. The
In the organization there are ratio of females and
proper ethical policies to males should be
111
monitor the employees but still equal. Females

employees are not following should be given
that especially in Pakistan. proper facilities and
power to take
decisions. The
female should be
given chance to
prove their selves.
They should be
given authority and
should hire them on
good and valuable
positions.
4. In spite of ethical
codes the
employees are not
following it. They
should arrange
proper conduct and
policies and should
do surveys to make
sure that all the
rules are obeyed by
the employees.
Every employee
should be asked to
know the problems
that they are facing
in the organization
or due to any
employee. And
proper
investigation
should be there so
no employee gets
issue of job
security.
Organizational Structure The Division of Work & • Tall Organizational
Grouping within the Coca Cola Structure:
Company
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The division of labor can be A clear hierarchy of

unique in many organizations. authority exists within the
It has been coined a production Coca-Cola Company.
process in which a worker or However, the chain of
group of workers are assigned command has numerous
a specialized task in order to layers as the company has
increase efficiency. This is the offices in over 200
case for the Coca Cola countries worldwide
Company. Primarily the (Coke, 2011). For example:
company has a very tall The UK Division is
hierarchy in place and accountable to the North-
subordinates that are then West Europe Regional
divided up by regions. The Division. The North-West
Coca Cola Company being a Europe Regional Division
truly global organization uses is, in turn, accountable to
the design of division of work the Europe, Eurasia and
by location. Each area/region Middle-East SBU
has a certain amount of (Strategic Business Unit).
subordinates designated to that Finally, the 5 regional
specific area; however, the SBU’s, which encompass
number of employees the entire globe, are
delegated to one region may be accountable to Coca-Cola
different to another. By Head Offices in Atlanta,
dividing its employees up Georgia (The Times,
according to geographic 2005). Furthermore,
location, the company benefits interior organizational
on many levels. For example, structure exists within
being closer to a certain market Head Office, the 5 SBU’s,
allows the teams involved to the regional divisions and
work accordingly with regards the country divisions.
to advertising campaigns,
meeting the tastes of • Issues with Layers:
consumers of that region etc. Such “tall”, rigid
Each region is then sub divided management structures can
e.g. Europe divided up in to often lead to employee
North West and South East, frustration and
Nordic and Baltic(The Times disgruntlement. The
100, 2005). existence of many layers
As mentioned before meeting can make staff feel like
the tastes of consumers is met their opinions are
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more effectively due to the unimportant and their

divisions and sub divisions by contribution is
location. The Great Britain insignificant. This can lead
(UK) division would insure all to organizational problems
areas such as marketing would such as absenteeism and
be covered appropriately. For high staff turnover, which
example, an advertising slogan can, in turn, reduce the
that is appropriate to the UK efficiency of the business.
and Irish Public may not According to official
necessarily be considered company figures, Coca-
appropriate in another country. Cola lost 185,608 days of
This is why there are so many labor in 2010 (Coke, 2011).
sub divisions within the While some lost labor is
company. Each division will due to legitimately sick
have its own Marketing employees some
manager, Public Affairs employees may skip work
Director, Finance Director and due to a lack of motivation.
so on (The Times 100, 2005). Furthermore, the same
When one of these divisions is report shows staff turnover
planning a new beverage figures were very high in
launch or perhaps an 2010, with some sectors of
advertising campaign, the the company recording
division must communicate turnover rates of 20%.
respectively with their Recommendation #1:
superiors. Because the Coca I would recommend that
Cola Company has such a tall Coca-Cola implement
hierarchy, communication flatter management
must travel all the way back to structures in their regional
the corporate division in North and local divisions. It’s
America where a 12 Member more likely that employees
executive committee have the this far down the chain are
final say on any activities that to feel that their opinions
the company’s divisions are and work goes unnoticed,
considering. as opposed to mid and
Like many organizations high-level managers who
today, The Coca Cola call the shots. Such a
Company push elements such structure would move the
as teamwork amongst its company from a
employees whenever and mechanistic style of
wherever possible. Grouping management to a more
114
takes place on many levels organic approach. This

within the organization style could potentially
whether it is on the bottling serve to engage and
floor or launching new motivate employees, which
products. should give the firm a
For example, the Great Britain competitive advantage.
division brings together a Furthermore, the
group of employees when introduction of this policy
creating new product should decrease staff
development. Included in such turnover, which will cut
a team will be marketing down on the costs of hiring
specialists who will inform and training new staff.
others of their market research • Centralized Power
and testing, food technologists Structure:
will clarify whether changes to At present, the Coca-Cola
a product are feasible, Company is managed using
financial experts will describe elements centralization and
the cost incurred with the decentralization. However,
change and other specialists the decentralized power
will also be involved such as held by the SBU’s (and
the strategic planning director. their subdivisions) is often
limited to the advertising
• The effectiveness of and market research side of
the division of work fostered business. On the other
by Coca Cola hand, the centralized
power, which operates in
For an organization as big as Atlanta, has substantial
Coca-Cola, it is vital that the power over the firm’s
methods they adopt for the “bigger” decisions.
division of work among According to the Times
members of the organization document, Head Offices
are effective and successful. are “responsible for giving
They have achieved this the Company an overall
through global and local direction and providing
strategies. support to the regional
• Global and Local structure”.
Strategy • Issues with
Coca-Cola concentrates Centralized Power
certain functions for global Structures:
strategy in a corporate
115
segment, while having Due to the sheer size of the

geographic segments dealing company, elements of
with local strategy. They corporate power are needed
divide the functions, to govern regional offices
responsibilities and work to (Johnson, 1946). I would
avoid overlap and waste while argue that too much
concentrating on the optimum decision making power lies
business structure to achieve in the hands of corporate
its goals. office of Coca-Cola, while
regional offices lack
• Global: The Corporate decision making power in
Segment terms of finance,
As aforementioned, the innovation and
corporate segment consists of strategizing. One major
an executive committee of 12 problem with centralized
company officers. This head organizational structures is
office for Coca-Cola is used to that they often ensure that
give directions to the changes within the
organization and make key organization take longer to
decisions for the brand. One be implemented. Often the
member acts as the CEO, the benefits of centralization
figurehead of the company. are outweighed by its
Other executive members have limiting effect on regional
other responsibilities e.g. divisions. Campbell also
Senior Business Executives, suggests that it can distract
Chief Financial Officer, etc. and de-motivate regional
(The Times 100, 2005). workers. Some authors
Having a strong corporate even argue that
segment has proven to be centralization can lead to a
effective for Cola-Cola, lack of innovation in the
bringing confidence and order workplace. This could
to the whole company. point to the reason why one
• Global: In detail article suggests that Coca-
The head offices of Coca-Cola Cola has lost its innovative
have control over the roots and is starting to “lose
company’s recipe its fizz” due to a recent lack
(technology). They monitor of creative flair
the production of the syrups Recommendation #2:
and concentrates that are then Decentralizing some
mixed with water at specific aspects of the
116
bottlers. There are 30 company organizational structure

owned and operated could yield improved
manufacturing plants around organizational
the world that produce the performance. It would
syrups and concentrates allow the SBU’s, divisions
(Richard Girard, 2005). and sub-divisions to make
They’re also in charge of quick changes that are
setting up the different relevant to their workers
production plants around the and to their specific
world and deal with all legal geographical locations. In
and financial issues that affect addition to that,
the organization as a whole. decentralizing the
They have experienced many organizational structure
issues in the countries they would place more creative
produce in. For example, in power in the hands of
India, they experienced regional and national
problems involving divisions. This freedom to
environmental pollution and experiment would more
finding high levels of than likely motivate and
pesticides in their products in engage the workforce in a
2002 (Richard Girard, 2005). way that would be
The corporate segment was impossible under
needed to keep the consumer’s centralized restraints. Thus,
trust in the brand and to deal it would serve to positively
with all these issues affect organizational
effectively. performance.
Local: Strategic Business

Units
Coca-Cola has achieved a
status of being a global product
by operating in local
environments all over the
world. By dividing the
organization among different
countries, Coca-Cola can meet
the needs and requirements for
different countries (The Times
100, 2005).
117
SBUs are very effective for

they allow Coca-Cola to
recognize that tastes, lifestyles,
income and consumption
patterns vary from region to
region. Coca-Cola can now
price, distribute and innovate
their products to best suit the
needs and circumstances of the
global market. The SBUs are
also in charge of conducting
market researches for their
regions and promoting the
brand through local
advertisements using the
native languages (The Times
100, 2005).
• Local: In detail
The SBU’s are sub-divided
into divisions. This allows for
the further spreading of Coca-
Cola departments and
production plants around
different regions The UK
division (located in the North
West Europe division) is an
example of a Coca-Cola
company that uses a more local
level of management
compared to the global
positions in the corporate
segment. As mentioned before,
the company consists of
different departments that
specialize in different tasks. A
president overlooks and
represents the entire company
(The Times 100, 2005). This
use of specialization allows for
the company to be run
118
efficiently. The company

provides for their division by
dealing with public affairs and
maximizing the satisfaction of
its customers.
Core competencies Coke enjoys distinctive Coke need to nurture its
capabilities that enable it to relationship with bottlers
carry out business better than by enhancing the equity
its competitors, e.g. investments in bottling-
Innovation, reputation and operations to maximize the
architecture [bottlers]. Coke strength and efficiency of
need to invest on its its production,
concentrate-formulae aiming distribution/marketing
to retain its market buy gaining capabilities globally. Coke
targeted consumers, diet-coke should focus towards
for older-people, caffeine-free creating new brands with
for health-conscious. Quality less sugar and calorie and
and sponsorship is associated newer brands to attract the
with its brand-value, coke need young generation. Coke
to invest towards this to avoid also need to invest on the
any negative publicity or sponsorship [of sports or
probable ban from any region cultural events] on the
originating from chemical- emerging markets to
contamination, shortening of sustain its market
ground-water and other advantage.
health/environmental issues.
Strategic Objectives 1. Monopolization 1. Target disciplined
In 2000, a United States brand and growth
federal judge dismissed an investments
antitrust lawsuit filed by In 2015, Coke announced
PepsiCo Inc. accusing Coca- that it would increase its
Cola Co. of monopolizing the annual marketing costs by
market for fountain-dispensed $800 million to $1 billion,
soft drinks in the United States. in part to kick-start sales of
In June 2005, Coca-Cola in its CSD (carbonated soft
Europe formally agreed to end drink) portfolio, which is
deals with shops and bars to generally referred to as the
stock its drinks exclusively "sparkling" side of Coke's
after a European Union business. To translate the
investigation found its corporate speak in the
119
business methods stifled quote above, Coca-Cola's

competition. CEO Kent points out that
In November 2005, Coca- the increased media spends
Cola's Mexican unit - Coca- have enabled the company
Cola Export Corporation - and to grow sparkling sales
a number of its distributors and profitably -- with price
bottlers were fined $68 million increases rather than
for unfair commercial volume increases.
practices. Coca-Cola is What specifically are
appealing the case. "disciplined brand and
2. "Channel stuffing" growth investments?"
settlement Over the last few years, a
On July 7, 2008, Coca-Cola Co disciplined brand
compromised to pay $137.5 investment for Coke
million to settle an October means taking a small brand
2000 shareholder lawsuit. with potential and scaling
Coca-Cola was charged in a it through Coke's global
U.S. District Court for the distribution system, with a
Northern District of Georgia, significant boost from the
with "forcing some bottlers to marketing dollars as
purchase hundreds of millions discussed above. Take
of dollars of unnecessary Fuze Tea, for instance,
beverage concentrate to make which Coke now sells in
its sales seem higher." over 40 countries, and is
Institutional investors, led by one of the fastest growing
Carpenters Health & Welfare brands ever in Coke's
Fund of Philadelphia & stable to reach the billion
Vicinity, accused Coca-Cola dollar mark, having done
of "channel stuffing," or so in just three years.
artificial inflation of Coca- 2. Drive revenue and
Cola's results which gave profit growth with
investors a false picture of the clear portfolio
company's health. The roles across our
settlement applies to Coca- markets
Cola common stock owners Coca-Cola is playing for
from October 21, 1999 to the long-term as it
March 6, 2000. balances opportunities for
Investments and operations in higher pricing with the
apartheid South Africa[edit] always present need to
increase market share. The
120
Coca-Cola entered South idea of "clear portfolio

Africa in 1938 and, after the roles" reflects Coke's
beginning of the official white growing realization that
South African government's these often competing
policy of apartheid or priorities of price and
"separate development" volume are best handled
beginning in 1948, the by assigning either one or
company grew rapidly. By the the other to specific
1980s at the height of racial geographical markets.
oppression, with 90% of the For example, as
market, Coke dominated the developing economies
soft-drink industry with sales have revised their GDP
in the hundreds of millions of growth expectations
dollars, accounting for 5% of downward in the last year,
the parent company's global thus thinning out consumer
market. Coke employed 4,500 wallets, Coke appears to
workers, operating under the be more focused on
racially segregated housing, gaining market share
workplace, and wages, and through volume in markets
was one of the largest like China and India.
employers in the country. Take the company's "Coca-
In 1982 in South Africa, black Cola Splash Bar"
workers asked the community experiment in rural India.
to boycott Coke and called two This program is meant to
work stoppages until the extend opportunities to
company agreed to recognize entrepreneurs, especially
and bargain with their union, women, in under-served
raise its workers' low wages communities. The Splash
significantly, and share Bar is a bare-bones
information on who controls refreshment stall from
their pension fund. which the proprietor can
As a result of Coke's economic dispense roughly 5 ounces
support of white South Africa of a soft drink for 5 rupees,
and its apartheid system, in the or about 8 cents.
1980s, it became a major target Coke's assistance to small
of organizers across the business owners on the
country against U.S. and margins of developing
corporate economic support economies is laudable.
for apartheid in the U.S. However, through the
Boycotts then spread across Splash Bar's extremely low
121
the country to many price points, Coca-Cola

universities including also wants to engage a
Tennessee State, Penn State, wide future customer base.
and Compton College in It doesn't hurt that millions
California, which established a upon millions of these
"Coke Free Campus." rural customers will see
Demonstrations were held by increased income and
the Georgia Coalition and the migrate to cities as the
AFSC at Coca-Cola's Atlanta years go by. Coke hopes
headquarters. that they'll bring a taste for
In South Africa, in 1986, the Coke, Fanta, and localized
Coca-Cola response was to Coke brands such as
donate US$10 million to a "Thums Up" with them.
fund to support improvements 3. Refocus on our
of housing and education for core business
black South Africans and to model
announce "...plans to sell its While Coca-Cola benefits
30% share of a major bottler from its massive bottling
and a 55% share of a canning and distribution system,
operation within six to nine the company believes that
months." (The company's owning as little of its
assets there were estimated at bottling operations as
US$60 million, their annual possible will allow it to
sales were circa US$260 realize higher net profits
million, and with 4,300 over the long-term. In fact,
workers one of the largest U.S. Kent defines Coca-Cola's
employers in South Africa.) prime competencies not as
However, the movement in the bottling and distribution,
U.S. demanded full divestiture but as "marketing
and did not accept the innovation and franchise
company's offer to sell a major leadership." This is a way
portion of the holdings to a of saying that Coca-Cola
South African firm.[29] should focus on marketing
After democratic elections that its brands and let others
produced Mandela's majority worry over the ultimate
rule government, Pepsi sought production and
to re-enter the South African distribution.
market. In fact, "Coke never To this end, Coke intends
truly left the country, leading to refranchise, or sell off,
to overwhelming dominance nearly all of its North
122
through the rest of the 20th American bottling

century. Pepsi adhered to operations by 2020. But
different social imperatives this doesn't mean that the
and suffered exceptionally low company will become
market shares as a result." disengaged from the
Indeed, in the late 2000s, bottling and distribution
Coke's market share of the soft processes, which are vital
drink market in South Africa to Coke's survival and
was estimated at 95% and success.
Pepsi's at 2%. Instead, the soft drink
3. Marketing Issue conglomerate will continue
On August 9, 2015 the New to work closely with its
York Times published an bottlers, and, where
article that revealed that Coca- appropriate, form new
Cola had made a large joint ventures, such as the
investment to the non-profit recently announced "Coca-
called the Global Energy Cola Beverages Africa."
Balance Network, which This bottler will exist as a
promoted a scientific solution joint venture between
to the obesity crisis, which was Coca-Cola, SABMiller,
that more exercise rather than and the South African
cutting back on calories was Gutsche Family
the way to maintain a healthy Investments. Coca-Cola
weight. Health experts stated Beverages Africa will
that the non-profit's message serve twelve African
was misleading and part of countries and handle
Coke to deflect criticism about roughly 40% of Coca-
the role the company played on Cola's global African
the spread of obesity and Type beverage volume.
2 diabetes. It's hard to argue with
Coke's logic in this
business model tweak.
While "Bottling
Investments" as a segment
contributed 15.2% of the
company's overall revenue
last year, its operating
margin was essentially flat,
at 0.1%. The bottling
segment showed operating
123
income of only about 1.5%

in the two preceding years
as well.
4. Aggressively
expand our
productivity
program
This quote actually comes
not from the earnings call
but from a December
financial modeling call
with analysts, in which
Chief Financial Officer
Kathy Waller gave, among
other things, a detailed
overview of Coca-Cola's
productivity plan. The
company initially set a
productivity target of $1
billion in early 2014,
which was increased
during the year to $3
billion, with all cost
savings to be realized by
2019.
Productivity measures and
associated cost-cutting can
serve as a type of
insurance for the
management team. Should
declining carbonated soft
drink sales continue to
mute gains in other parts
of Coke's beverage
portfolio, management can
point to bottom-line profits
in order to appease
investors.
124
5. Streamline and
simplify our
operating model
One of Coca-Cola's actions
to streamline its business
has been to reduce
"functional layers."
Reducing hierarchy at the
corporate level can lead to
faster, decentralized
decision-making -- a type
of trimming an
organization KO's size can
usually benefit from. The
company announced in
January that it would cut
1,600 to 1,800 positions
globally this year, with up
to 500 employees to be
released at its Atlanta
headquarters.
Like the efforts aimed at
productivity discussed
above, there's another
rationale for pruning
personnel in a drive toward
simplification. Coca-Cola
wants to be seen by the
markets as in touch with
the urgency of its situation
and sensitive to the shelf
life of investors' patience
as it tries to ignite high
single digit earnings-per-
share growth. Workforce
reduction is a tried and
true method CEOs of
public companies have
used to send the right
signal to Wall Street,
125
however bloodthirsty the

method may same.
Current Strategies Majorly, the issues lie in Coca Coca Cola need to adapt a
Cola beverages Pakistan’s slightly less rigid HRM
current functional strategies of strategy. Coca Cola should
Human Resource. A single maintain adequate number
employee in one department is of people inside the
working as much as 2 company in order to raise
employees and being lesser the morale of the
than the salaries of 2 employees in Coca Cola.
employees. Apart from this Coca Cola
is doing a fantastic job in
other strategies.
SWOT Analysis Strengths and Weaknesses are How to solve Issues with
one of the most critical aspects SWOT
of a business. Identification of Coca Cola should establish
Strength and Weaknesses are a new department or form
extremely vital in determining a competent committee
the performance and SWOT is which must be responsible
in fact an aesthetic tool for for gathering facts and
measuring the performance of figures, analysis, inquiries,
the business. issues faced, reports, and
Unfortunately, there are no all other relevant
forms or documentations that documentations in order to
are available in Coca Cola determine Coca Cola
Pakistan to formally conduct competencies, competitive
SWOT. Personnel and advantages, absolute
Managers working inside Coca advantages, the benefits
Cola however, do determine Coca Cola is enjoying
the strengths or weaknesses from all of its resources, its
but with a different internal weakness and
perspective. Departments such disadvantageous factors
as finance department headed within the company,
by the CFO and finance external opportunities
managers determines the available to the company
financial strengths, and threats for the
weaknesses, opportunities and company. After, gathering
threat but no formal meets are such data the authenticity
held or it is extremely less of the data gathered needs
126
likely that meetings are to the monitored. Once,

formally held at corporate or such audit has been
business level to devise performed, the committee
strategies at functional levels should make an annual or
to formally increasing the master report for the
strength of the business, company in which it
minimize weaknesses, should specify the ways or
maximizing the benefits strategies that Coca Cola
gained from the opportunities must adopt in order to
and reducing minimizing the consolidate and cement its
risk from threats. strengths, minimize or
fight with internal
weaknesses, increasing the
benefit derived from the
opportunities and reduce
the risk from threats.
127

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COCA COLA

COCA COLA COMPANY

1.1.1 Brief History.................................................................................................... 4

1.2.1 Vision, Mission, Core Values, Goals .............................................................. 9

2.1.1 Natural Resource Coca Cola need................................................................. 31

2.2.1 When (situation), Why (objective / reasons), How (process), who

3 Phase 3 – Internal Analysis: Organizational Perspective ........................................... 65

3.1.1 Vision ............................................................................................................ 65

3.2.1 CLIMATE CHANGE POLICY .................................................................... 68

3.4.1 Degree to which organizational design elements exit in company structure 81

3.5.1 What are the company-wide core competencies ........................................... 83

3.6.1 Inbound Logistics .......................................................................................... 85

3.7.1 WE FOCUSED ON DRIVING REVENUE AND PROFIT GROWTH ...... 89

3.8.1 Corporate Level Strategies ............................................................................ 91

3.9.1 PepsiCo’s Strengths (Internal Strategic Factors) .......................................... 96

4 Phase 4 – Gap Analysis & Recommendations ......................................................... 102

4.2 Internal Analysis ............................................................................................... 110

1.1.2 International / National Introduction

1.2 COCA COLA BEVERAGES PAKISTAN LIMITED

1.2.1 Vision, Mission, Core Values, Goals

1. Accountability We act with high sense of responsibility and hold ourselves

2. Passion We put our hearts and mind into what we do.

4. Teamwork We collaborate for our collective success

COCA COLA GOALS

2. Build a highly capable organization and be the employer of choice

4. Profitably deliver superior value to consumers & customers at the

6. To be the best in class consumer demand fulfillment organization that

8. Create a culture of Operational Excellence to support continuous

1.2.2 Nature of Business

1.2.3 Type of Ownership

1.2.4 Identify Key Players and Roles

Pakistan & Afghanistan Region

Rizwan Ullah Khan is currently the General Manager of

Over the years Mr. Khan has steered the transformation of

1.2.4.2 Director, Public Affairs & Communications

Before joining Coca-Cola, Fahad was working with the

1.2.4.3 LEGAL COUNSEL

After his previous experience with the top-notch food

1.2.4.4 Region Finance Manager

Kaleem is currently the Region Finance Manager for

He has played a pivotal role for tax lobbying which

1.2.4.5 Technical Services Manager

During his QSE career, Qasim was

1.2.4.6 Director, Franchise & Commercial & Corporate Leadership

As a career broadening assignment, Raza was

Raza has a vast experience in marketing, IT and

1.2.4.7 HR-Strategic Business Partner

Pakistan & Afghanistan Region

Faisal Hashmi joined Coca-Cola System in 2000, as

Currently, as HR-Strategic Business Partner Faisal

Faisal is playing an integral role in developing KO

1.2.4.8 Director Marketing

Ali has a vast experience in marketing.

1.2.5 Organizational Hierarchy

The Coca-Cola Company has a Separate International Division Structure

Eurasia North Europe Pacific Latin

Eurasia & Africa Group

Latin America Group

North America Group

2. How do they operate?

Coca-Cola is as an ethnocentric MNC because its domestic operations are very

1.2.6 Location(s) of Facility

1.2.7 Number of Technical Employees