A TERM PAPER ON OB

PRACTICES IN COCA-
COLA COMPANY
2
East West
University
Prepared by:
Ismail Hossain
Id. 2010-1-10-160
Sabit Bin Islam
Id 2!"!-"-"!-
Fahim Imroj Rijon
Id. 2010-1-10-134
Sadid Ahsan
Id. 2010-1-10-129
Submitted to
!amrul Hassan
Assistant "ro#essor
$usiness Administration
%ast &est 'ni(ersit)* $an+ladesh
Submission Date:
#
15.12.2011
Letter of Transmittal
Kamrul Hassan
Course Instructor
Organizational Behavior
Assistant Professor
Business Administration
East West University
Sub !etter o" transmittal
#ear sir$
It%s our great &leasure to submit you this re&ort on OB 'ractices in Coca(Cola Com&any) We have got a
great e*&erience +hile +or,ing on this re&ort)
We +ould li,e to leave this re&ort to your ,ind consideration "or any unintentional mista,e that may
accuser +hile doing this re&ort) We are al+ays at your service i" you +ant to as, us anything about this
re&ort and it +ill be a great &leasure to +or, +ith you again in "uture)
Sincerely yours
Ismail Hossain
Id) -./.(/(/.(/0.
1ahim Imro2 3i2on
Id) -./.(/(/.(/45
Sabit Bin Islam
Id) -./.(/(/.(
Sadid Ahsan
Id) -./.(/(/.(/-6
$
Table of Contents
7o) Contents8888888888888888888)))888888888)) 'age no)
/). Cha&ter One
"" Introduction888888888888888888888888888880
/)- History o" Coca cola88888888888888888888888)8889(:
/)4 Coca cola com&any in Bangladesh88888888888888888888) 6
-). Cha&ter ;+o
-)/ Bangladesh Beverage Industry888888888888888888)8888/.
-)- Com&etitive Analysis o" Coca cola888888888888888888)))88//
-)4 SWA; Analysis888888888888888888888888))8888/-
A) Strengths8888888888888888888888888888))88/-
B) Wea,nesses88888888888888888888888888888)/-
C) O&&ortunities888888888888888888888888888))8)/4
#) ;hreats8888888888888888888888888888888)/4
4). Cha&ter ;hree
4)/ Segmentation88888888888888888888888888888)/5
4)- ;argeting8888888888888888888888888888888/5
A 'orter%s 1ive 1actors88888888888888888888888888/5
4)4 'ositioning Strategy888888888888888888888888888/0
A) 'oints o" 'arity88888888888888888888888888))88/0
B) 'oints o" #i""erence88888888888888888888888888)))/0
C) 'ositioning Statement88888888888888888888888888/0
5). Cha&ter 1our
5)/ 'roduct88888888888888888888888888888888/0
A) 'roducts in Bangladesh888888888888888888888888) 8/9
B) 'roduct levels ;he customer <alue Hierarchy8888888888888)))/:
5)- 'rice88888888888888888888888888888888))8/6
5)4 'lace88888888888888888888888888888888))8-.
A) #istribution channels 88888888888888888888888888)))-.
B) #istribution &rocess 88888888888888888888888888)))))-/
5)5 'romotion888888888888888888888888888888))8-/
5)= 'eo&le8888888888888888888888888888888)88--
=). Cha&ter 1ive
%
=)/ >ar,et ? Consumer 3esearch888888888888888888888888-5
=)- Sales Control 1orce8888888888888888888888888888))-5
#ata Collection 88888888888888888888888888888)))-=
Bibliogra&hy 88888888888888888888888888)))))))))))))) )-=
Acknowledgement
1irst o" all$ +e +ould li,e to than, our lecturer Kamrul Hassan@ +e are grate"ul to his "or his
coo&eration in &re&aring this re&ort) His &ro&er guidance ? hel&"ul attitude hel&ed us to ma,e this re&ort)
We +ould li,e to than, >r) Ashi, 3eza$ ;eam !eader$ sales o" Abdul >onem !td +ho really hel&ed us
by giving us most o" the in"ormation$ +hich +as reAuired "or our &ro2ect) We could not have done it
+ithout their hel&)
Executive Summary
>ore than a billion times every day$ thirsty &eo&le around the +orld reach "or beverages "or
re"reshment) All around the +orld$ drin,ing beverage is li,e an entertainment "or &eo&le) So"t drin,s are
considered as consumer &roducts) All round the +orld +e can see a di""erent mar,eting &hase used by the
beverage &roducing com&anies but in Bangladesh it is a little di""erent) ;he com&anies do not directly sell
their &roducts to the end consumers) Com&anies such as So"t #rin,s BCoca(Cola$ 'e&si$ 3C(Cola$ Uro(
Cola$ <irgin$ etcC$ >ineral +aters B1resh$ >um$ AC>E and etcC$ Duices B'ran$ #anish$ Sezan$ etcC are
de&endents on the distribution channels "or ma,ing their &roducts reach the "inal consumers) As the
com&anies are not ma,ing the &eo&le a+are about their beverage through directly selling it to them$ they
use other media and means to ma,e its customers ,no+ about their &roducts) ;hey use the advertisements
as one o" the most im&ortant &romotional tools) Along +ith advertisement they also use other &romotional
tools)
We have done a study on Coca(Cola Com&any +ith the aim to learn about the di""erent mar,eting
&ros&ects in Bangladesh and our selected &roduct is Coca( Cola) !i,e al+ays the com&any is doing Auite
+ell although at the current moment 3C(Cola is dominating the mar,et a little more than Coca(Cola) Still
Coca(Cola has more mar,et share than its com&etitors) Coca(Cola has an e""ective mar,eting and
advertising cam&aign) As the com&any does not have that s,ill"ul village distributor they cannot reach out
to a lot o" &eo&le) ;here are lots o" recommendations +hich are &rovided "or the im&rovement o" the
"unctionality in the mar,eting sector ;he com&any%s investment in local communities in over -..
countries totals billions o" dollars in 2obs$ "acilities$ mar,eting$ &urchase o" local goods and services and
most im&ortantly the local business &artnershi&)
&
1.1 Introduction
;he Coca(Cola Com&any is the +orldEs largest beverage com&any$ re"reshing consumers +ith more than
=.. s&ar,ling and still brands) !ed by Coca(ColaF$ the +orldEs most valuable brand$ the Com&anyEs
&ort"olio "eatures /5 billion dollar brands including #iet Co,e$ 1anta$ S&rite$ Coca(Cola Gero$ vitamin
+ater$ 'o+erAde$ >inute >aid$ Sim&ly and Heorgia) Hlobally$ it is the 7o) / &rovider o" s&ar,ling
beverages$ 2uices and 2uice drin,s and ready(to(drin, teas and co""ees) ;hrough the +orldEs largest
beverage distribution system$ consumers in more than -.. countries en2oy the Com&anyEs beverages at a
rate o" /)9 billion servings a day) With an enduring commitment to building sustainable
communities$ Com&any is "ocused on initiatives that reduce
our environmental "oot&rint$ su&&ort active$ healthy living$ create a sa"e$ inclusive +or, environment "or
our associates$ and enhance the economic develo&ment o" the communities +here it o&erates)

'
1. !IST"#$ "% C"CA C"LA
Coca(ColaF originated as a soda "ountain beverage in /::0 selling "or "ive cents a glass) Early gro+th
+as im&ressive$ but it +as only +hen a strong bottling system develo&ed that Coca(Cola became the
+orld("amous brand it is today)
1&'( ) A modest start for a *old Idea
In a candy store in <ic,sburg$ >ississi&&i$ bris, sales o" the ne+ "ountain beverage called Coca(Cola
im&ressed the storeEs o+ner$ +ose,- A. *ieden-arn) He began bottling Coca(Cola to sell$ using a
common glass bottle called a !utc-inson)
Biedenharn sent a case to Asa Hriggs Candler$ +ho o+ned the Com&any) Candler than,ed him but too,
no action) One o" his ne&he+s already had urged that Coca(Cola be bottled$ but Candler "ocused on
"ountain sales)
1&'' T-e first bottling agreement
;+o young attorneys "rom Chattanooga$ ;ennessee believed they could build a
business around bottling Coca(Cola) In a meeting +ith Candler$ Ben2amin 1)
;homas and Dose&h B) Whitehead obtained e*clusive rights to bottle Coca(
Cola across most o" the United States Bs&eci"ically e*cluding <ic,sburgC (( "or the
sum o" one dollar) A third Chattanooga la+yer$ Dohn ;) !u&ton$ soon 2oined
their venture)
1'../1'.' 0 #a,id growt-
;he three &ioneer bottlers divided the country into territories and sold bottling rights to local
entre&reneurs) ;heir e""orts +ere boosted by ma2or &rogress in bottling technology$ +hich im&roved
e""iciency and &roduct Auality) By /6.6$ nearly 5.. Coca(Cola bottling &lants +ere o&erating$ most o"
them "amily(o+ned businesses) Some +ere o&en only during hot(+eather months +hen demand +as high)
1'11 0 *irt- of t-e contour bottle
Bottlers +orried that the straight(sided bottle "or Coca(Cola +as
easily con"used +ith imitators) A grou& re&resenting the
Com&any and bottlers as,ed glass manu"acturers to o""er ideas "or a
distinctive bottle) A design "rom the 3oot Hlass Com&any o" ;erre
Haute$ Indiana +on enthusiastic a&&roval in /6/= and +as
introduced in /6/0) ;he contour bottle became one o" the "e+
(
&ac,ages ever granted trademar, status by the U)S) 'atent O""ice) ;oday$ itEs one o" the most recognized
icons in the +orld ( even in the dar,I
1'.s 0 *ottling overtakes fountain sales
As the /6-.s da+ned$ more than /$... Coca(Cola bottlers +ere o&erating in the U)S) ;heir ideas and zeal
"ueled steady gro+th) Si*(bottle cartons +ere a huge hit a"ter their /6-4 introduction) A "e+ years later$
o&en(to& metal coolers became the "orerunners o" automated vending machines) By the end o" the /6-.s$
bottle sales o" Coca(Cola e*ceeded "ountain sales)
1'.s and 2.s 0 International ex,ansion
!ed by longtime Com&any leader 3obert W) Woodru""$ chie" e*ecutive
o""icer and chairman o" the Board$ the Com&any began a ma2or &ush to
establish bottling o&erations outside the U)S) 'lants +ere o&ened in
1rance$ Huatemala$ Honduras$ >e*ico$ Belgium$ Italy$ 'eru$ S&ain$ Australia and South A"rica) By the
time World War II began$ Coca(Cola +as being bottled in 55 countries)
1'(.s 0 3ost/war growt-
#uring the +ar$ 05 bottling &lants +ere set u& around the +orld to su&&ly the
troo&s) ;his "ollo+ed an urgent reAuest "or bottling eAui&ment and materials
"rom Heneral Eisenho+erEs base in 7orth A"rica) >any o" these +ar(time &lants
+ere later converted to civilian use$ &ermanently enlarging the bottling system
and accelerating the gro+th o" the Com&anyEs +orld+ide business)
1'4.s 0 3ackaging innovations
1or the "irst time$ consumers had choices o" Coca(Cola &ac,age size and ty&e (( the traditional
0)=(ounce contour bottle$ or larger servings including /.($ /-( and -0(ounce versions) Cans
+ere also introduced$ becoming generally available in /60.)
1'1.s 0 5ew brands introduced
1ollo+ing 1antaF in the /6=.s$ S&riteF$ >inute >aidF$ 1rescaF and ;aBF 2oined brand
Coca(Cola in the /60.s) >r) 'ibbF and >ello JelloF +ere added in the /69.s) ;he /6:.s brought diet
Co,eF and Cherry Co,eF$ "ollo+ed by 'OWE3A#EF and #ASA7IF in the /66.s) ;oday hundreds o"
other brands are o""ered to meet consumer &re"erences in local mar,ets around the +orld)
1'6.s and &.s 0 Consolidation to serve customers
As technology led to a global economy$ the retailers +ho sold Coca(Cola$ merged and evolved into
international mega(chains) Such customers reAuired a ne+ a&&roach) In res&onse$ many small and
medium(size bottlers consolidated to better serve giant international customers) ;he Com&any encouraged
and invested in a number o" bottler consolidations to assure that its largest bottling &artners +ould have
ca&acity to lead the system in +or,ing +ith global retailers)
1''.s 0 5ew and growing markets
'olitical and economic changes o&ened vast mar,ets that +ere closed or underdevelo&ed "or decades)
A"ter the "all o" the Berlin Wall$ the Com&any invested heavily to build &lants in Eastern Euro&e) And as
the century closed$ more than K/)= billion +as committed to ne+ bottling "acilities in A"rica)
)
1st Century
;he Coca(Cola bottling system gre+ u& +ith roots dee&ly &lanted in local communities) ;his heritage
serves the Com&any +ell today as &eo&le see, brands that honor local identity and the distinctiveness o"
local mar,ets) As +as true a century ago$ strong locally based relationshi&s bet+een Coca(Cola bottlers$
customers and communities are the "oundation on +hich the entire business gro+s
1.3 Coca-Cola Company in Bangladesh
Even be"ore our inde&endence o" Bangladesh the Coca-Cola Com&any has started its o&eration in
Bangladesh) Coca-Cola started its o&eration under a "ranchise agreement) In Bangladesh there are t+o
"ranchisees conducting o&eration on behal" o" Coca-Cola Com&any) One is Tabani Bee!ages Company
Ltd and the other is "bul #onem $td.
;abani Beverage +as established in 1'12 at 46$ Te7gaon$ 8-aka) It had a rated ca&acity o" =. B'>
on an acre land area) A"ter inde&endence$ in /69-$ the &lant +as handed over to Bangladesh) 1reedom
"ighter +el"are trust under the ministry o" industry +ith the increase o" gradual mar,et demand in /6:=
trans"erred and ne+ly installed the &lant +ith an increased ca&acity o" 4. *39 at >ir&ur on seven acre
land area) In 1''2 a ne+ &lant +ith =.. B'> ca&acities +as established 2ust beside the &revious &lant)
7o+ the total &roduction line ca&acity o" the com&any is a&&) :4. B'>) ;abani beverage &roduces /9=
ml$ -=. ml$ =. ml and /... ml glass bottle) ;hey su&&ly Coca-Cola drin,s to #ha,a and 3a2shahi
divisions)
Other than ;abani beverage the other "ranchisee o" Coca-Cola Com&any is Abul >onem com&any ltd)
In /6:- Abul >onem started their o&eration a"ter they acAuired the &lant o" :. #a-man ; Com,any) In
/6:9 the com&any made an aggressive move to e*&and their mar,et) ;hey installed ne+ ! ; : bottling
line along +ith and installed ca&acity o" 5=. B'> at Comilla) 1urthermore the com&any established
another &lant C-ittagong) ;he state o" the art bottling &lant +ith an installed ca&acity 1.. *39 is the
most modern &lant in the country and is eAui&&ed +ith the straight(line(technology "rom :!S <erman)
Abul >onem &roduces the 'E; Bottles$ CA7S and H!ASS Bottles o" a ne+ly introduced &roduct)
"!
#ission% &ision %'oal% St!ategy
;he +orld is changing all around us) ;o continue to thrive as a business over the ne*t ten years and
beyond$ +e must loo, ahead$ understand the trends and "orces that +ill sha&e our business in the "uture
and move s+i"tly to &re&are "or +hatEs to come) We must get ready "or tomorro+ today) ;hatEs +hat our
-.-. <ision is all about) It creates a long(term destination "or our business and &rovides us +ith a
L3oadma&L "or +inning together +ith our bottling &artners)
9ission
Coca cola%s 3oadma& starts +ith their mission$ +hich is enduring) It declares their &ur&ose as a com&any
and serves as the standard against +hich they +eigh their actions and decisions)
T* re+res, t,e -*rld
T* inspire m*ments *+ *ptimism and ,appiness
T* .reate /al0e and ma1e a di2eren.e
Vision
C*.a .*la3s /isi*n ser/es as t,e +rame-*r1 +*r *0r R*admap and 40ides e/ery
aspe.t *+ *0r b0siness by des.ribin4 -,at t,ey need t* a..*mplis, in *rder t*
.*ntin0e a.,ie/in4 s0stainable5 60ality 4r*-t,
People: Be a 4reat pla.e t* -*r1 -,ere pe*ple are inspired t* be t,e best
t,ey .an be
Portfolio: Brin4 t* t,e -*rld a p*rt+*li* *+ 60ality be/era4e brands t,at
anti.ipate and satis+y pe*ple7s desires and needs
Partners: N0rt0re a -innin4 net-*r1 *+ .0st*mers and s0ppliers5 t*4et,er
-e .reate m0t0al5 end0rin4 /al0e
Planet: Be a resp*nsible .iti8en t,at ma1es a di2eren.e by ,elpin4 b0ild and
s0pp*rt s0stainable .*mm0nities
Proft: Ma9imi8e l*n4-term ret0rn t* s,are*-ners -,ile bein4 mind+0l *+ *0r
*/erall resp*nsibilities
Productivity: Be a ,i4,ly e2e.ti/e5 lean and +ast-m*/in4 *r4ani8ati*n
Strategic Goals
Li1e *t,er .*mpany5 C*.a-C*la main *b:e.ti/es are t* s0pply e/ery*ne t,eir
+a/*0rite drin1 and t* satis+y t,e .*ns0mer needs and -ants C*.a-C*la se.*nd
""
main *b:e.ti/es are t* pr*/ide pr*;t t* t,e s,are,*lders and in.rease t,e mar1et
s,are
B0t t,ey ,a/e 2 di2erent types *+ 4*als
1. Short term
<T* .reate ,ualit)* Ser(i-e* .leanliness and /alue in their -urrent 0rodu-t1
2. Long term
T* a.60ire t,e p*siti*n as a mar1et leader *+ t,e be/era4e ind0stry in Ban4lades,
by pr*d0.in4 = ser/in4 ,i4,-60ality and ,i4, /al0e-added s*+t drin1
"rgani=ational Structure
;he Coca(Cola Com&any currently em&loys a&&ro*imately 65$:.. em&loyees) According to a
general organizational chart obtained "rom the com&any%s +ebsite$ there are more than =
hierarchical levels at the cor&orate level)
"2
1or e*am&le the head o" the Canadian division re&orts to the &resident and COO o" the 7orth
American Hrou&) ;hat &resident re&orts to the C1O$ +ho re&orts to the O""ice o" the Heneral
Counsel) ;he Heneral Counsel then re&orts to the CEO) It is "air to assume that there are at least
a "e+ more ste&s in the hierarchy at the local level)
#ue to its tall structure$ the organization has e*&erienced communication &roblems) One o" the
&roblems discovered through a survey$ +as that the &eo&le and the com&any lac,ed clear goals)
;all hierarchies also cause motivation &roblems$ +hich is +hy the organization is attem&ting to
get em&loyees more engaged) ;he increased use"ulness o" the com&any%s intranet +ill greatly
increase the communication bet+een every level o" em&loyees$ and allo+ u&&er management to
e""ectively communicate to the "ront line em&loyees)
Based on in"ormation "rom 3e&ort -..0 this s&an o" control seems some+hat slim "or the CEO
o" such a large organization) ;he CEO is also a member o" the Senior !eadershi& ;eam) ;his
team consists o" each head o" the eight o&erating grou&s a"orementioned$ and also has other to&
e*ecutives in areas li,e innovation and technology and mar,eting) Although there are only si*
&eo&le that ans+er directly to the CEO$ the CEO is able to receive in&ut "rom a +ide variety o"
divisions because o" this leadershi& team) Since the team is com&rised o" members "rom various
divisions$ the CEO is able to obtain a +ide variety o" in"ormation)
;he move to decentralization has caused structural changes "or ;he Coca(Cola Com&any) 7e+
o""ices have been o&ened to "acilitate decisions being made closer to the local mar,ets) ;he
organization has also undergone centralization o" some o" the com&any%s de&artments) In -..0$
the Bottling Investments division +as created to Mestablish internal organization "or our
consolidated bottling o&erations and our unconsolidated bottling investments)N It a&&ears that the
organization is striving "or a hybrid structure$ +hich allo+s them to have advantages o" both
"#
mechanistic and organic structures$ +hile trying to minimize the negative conseAuences o" each)
;he strategic structural changes that the organization has gone through in recent years have
created a much needed &ositive im&act on the com&any) Sales gro+th increased and em&loyees
are much more satis"ied) ;he organization is trying to create a more innovative culture by
&ushing to+ards decentralization)
3#"8>CT
;he Coca(Cola "ormula is ;he Coca(Cola Com&anyEs secret reci&e "or Coca(Cola) As a &ublicity
mar,eting strategy started by 3obert W) Woodru""$ the com&any &resents the "ormula as one o"
the most closely held trade secrets ever and only a "e+ em&loyees ,no+ or have access to)
;he com&any Coca(cola is a multinational and it is not limited to one &roduct) ;hrough the years
they have invented and introduced many &roducts than their main cola drin,s)
A. 3roducts in *anglades-
;he list o" &roducts o" Coca(cola brands in Bangladesh are as "ollo+s
Co,e
;he main dar, cola drin, o" the com&any
+hich started the rivalry bet+een these
com&anies)
S&rite
"$
S&rite is a clear$ lemon(lime "lavored$
non(ca""einated so"t drin,$ &roduced by
the Coca(Cola Com&any
#iet Co,e
#iet Co,e or #iet Coca(Cola is a sugar(
"ree so"t drin, &roduced and distributed
by ;he Coca(Cola Com&any) It has been
introduced recently in Bangladesh)
1anta
"%
1anta is a so"t drin, brand o+ned by ;he
Coca(Cola Com&any) It is &roduced and
distributed by ;he Coca(Cola Com&anyEs
bottlers)
Customers
;hey see, to better understand the im&act o" the Coca(Cola business along their entire value
cycle and &artner +ith their customers to address areas o" concern and add value beyond their
beverage &roducts) ;heir customers include large international chains o" retailers and restaurants
and small inde&endent businesses) ;hey +or, +ith them eAually to create mutual bene"it)
;ogether +ith their bottling &artners$ they serve our customers through account management
teams$ &roviding services and su&&ort tailored to their needs)
;heir customers are continually loo,ing "or +ays to reduce costs$ im&rove sales and &ro"its$ and
deliver better(Auality$ more diverse &roducts to consumers) ;hey +or, to create additional value
"or their customers by antici&ating their demands and interests and to &roactively deliver viable
solutions "or their businesses)
TA#<ET 9A#:ET
Co,e%s commercials basically based on young generations$ So$ the young generation is the target
mar,et o" Co,e because they +ant to re&resent Co,e +ith the youth and energy but they also
consider about the old &eo&le they ta,e then as a co(target mar,et
%uture 3lan of t-e "rgani=ation
In early -..6$ CCE convened an environmental summit to set out global goals "or cor&orate
res&onsibility) ;hey set out a road ma& "or achieving them by the year -.-.) ;hey call it
Commitment ..)
CCE has set out longer(term ob2ectives as &art o" this commitment) ;hese cover
"&
Energy conservation?climate c-ange ( reduce the overall carbon "oot&rint o" their
business o&erations by /=O by -.-.$ as com&ared to -..9 baseline)
Sustainable ,ackaging?recycling ( reduce the im&act o" our &ac,aging@ ma*imize their
use o" rene+able$ reusable$ and recyclable resources to recover the eAuivalent o" /..
&ercent o" our &ac,aging)
@ater stewards-i, ( establish a +ater sustainable o&eration in +hich they minimize
their +ater use and have +ater neutral im&act on the local communities in +hich they
o&erate) ;heyEll sa"ely return the amount o" +ater eAuivalent to that used in their
beverages and their &roduction to these communities and their environment
3roduct ,ortfolio?wellbeing ( &rovide re"reshing beverages "or every li"estyle and
occasion$ +hile hel&ing consumers ma,e in"ormed beverage choices)
8iverse and inclusive culture ( create a culture +here diversity is valued$ every
em&loyee is a res&ected member o" the team$ and their +or,"orce is a re"lection o" the
communities in +hich +e o&erate)
8ecision 9aking
;he ma2ority o" decisions made by ;he Coca(Cola Com&any are done so by using the incremental
method) Each year$ the com&any +ould analyze results$ and then ma,e slight changes in o&erations to
create better results ne*t year) ;he com&any does not 2ust Auic,ly decide to create a ne+ &roduct$ or
change o&erations)
#rastic changes ta,e time) 3ecently$ realizing that the com&any +as in des&erate need "or a drastic
change$ Isdell sought to "igure out +hy the com&any &er"ormance +as declining) By starting at the lo+er
levels o" the organization to "ind solutions$ the com&any +as able to ma,e some drastic changes to the
com&any%s culture$ ho+ em&loyees +ere re+arded$ and made e""orts to get em&loyees more involved)
;he changes brought on by using the unstructured decision ma,ing model created much better results "or
the com&any)
One o" the biggest "la+s in the organization is that the board o" directors is res&onsible "or some o" the
non(&rogrammed decisions made by the com&any) When ;he Coca(Cola Com&any +as see,ing to
&urchase Pua,er Oats$ the deal +as almost "inalized$ but then sto&&ed because the board "elt the &rice
+as too) When decisions are made by the board$ it means they lac, con"idence in the u&&er management
o" the com&any to ma,e vital decisions)
;his is &roblematic "or the com&any "or a "e+ reasons) Because members o" the board have so much
money invested in com&any stoc,$ they +ant to minimize ris,$ and thus$ are e*tremely &rone to ta,e
"e+er chances) ;he members o" the board do not or have not +or,ed "or the com&any$ so they are not
close enough to ,no+ all the &ertinent in"ormation reAuired to ma,e com&le* decisions)
"'
9anaging ConflictsA 3ower and 3olitics
Con"licts can be a healthy +ay "or an organization to im&rove decision ma,ing$ and create ne+ +ays "or
loo,ing at &roblems) Con"licts can also be a signi"icant source o" trouble "or an organization +hen they
cause &roduction declines or im&ortant decisions cannot be made) When the organization sought a ne+
CEO in -..5$ their to& choices turned them do+n because the &ros&ects "elt that the board had too much
&o+er )
;his ty&e o" con"lict can drastically a""ect the organization%s ability to change and ada&t Auic,ly$ a
necessity in the com&any%s e*tremely uncertain environment) ;he e*am&le also sho+s that it can &revent
the organization "rom acAuiring im&ortant human resources) ;he mar,eting de&artment is the most
&o+er"ul subunit in the organization)
According to the data$ M;he mar,eting de&artment has considerable &o+er because it is the de&artment
that can attract customers Q the critical scarce resource)N ;he heavy em&hasis on mar,eting could &revent
the com&any "rom "inding +ays to become more e""icient in &roduction or distribution) ;he bene"its
derived "rom the &o+er allocated to the mar,eting "unction greatly out+eigh any negative conseAuence)
By &roviding the de&artment +ith more resources$ the com&any can conduct greater mar,et research) 1or
e*am&le$ even though the organization had a diet beverage on the mar,et$ research indicated that by
sim&ly using the name #iet Co,e$ &re"erences "or the same tasting beverage increased dramatically)
Allocating more ca&ital to the de&artment also allo+s "or each mar,eting cam&aign to be tailored to
s&eci"ic mar,ets$ ma,ing advertisements more e""ective)
>ar,et research also saves money "or the com&any) I" consumer data sho+s the com&any that one o" their
ideas +ould not do +ell$ the com&any can decide not to &roduce that beverage) ;he strong em&hasis on
mar,eting has allo+ed Coca(Cola to become one o" the most recognized brand names in the +orld$ +hich
gives the com&any an advantage over its com&etition and gives it more bargaining &o+er) One negative
conseAuence o" &utting such a great em&hasis on mar,eting research is evidenced in +hat has become
,no+n as one o" the greatest "lo&s in history) ;aste tests indicated that consumers +ould &re"er a ne+$
s+eeter version o" Coca(Cola$ +hich lead to the creation o" 7e+ Co,e in /6:=) ;he strong brand
attachment that the com&any +or,ed so hard to achieve +ith consumers caused a severe bac,lash to+ards
the re"ormulation o" Coca(Cola) ;his e*am&le &roves that mar,et research cannot al+ays be an indicator
o" +hat +ill actually ha&&en)
Conclusion
Coca Cola Com&any is currently one o" the biggest and most recognized so"t beverage brands in
the +orld) With over 4... &roducts in more than -.. countries$ Coca(Cola Com&any has surely
become &art o" &eo&le%s lives) ;he Coca(Cola Com&any o+es its success to the &eo&le +ho do
their best to achieve the tas, at hand) ;hus$ the Cola(Cola Com&any ta,es cares o" its em&loyees
in return by creating a good +or,ing environment and +or,ing along +ith unions and
government agencies to ma,e sure its em&loyees are sa"e) ;he Coca(Cola Com&any understands
that in today%s business +orld technology is very essential to run such a big com&any li,e Coca(
Cola) ;here"ore$ the Coca(Cola Com&any uses di""erent ty&es o" technology such as creating
databases and data +arehouse about their customers and su&&liers$ doing business +ith
"(
consumers and other businesses through the internet) ;he Coca(Cola Com&any ,no+s that no
business can run +ithout a &lan) Because the Coca(Cola Com&any has been able to the set the
entry barrier in the beverage business very high$ ne+ com&anies are discourage to com&ete +ith
Coca(Cola) In addition$ the Coca(Cola Com&any has agreements +ith many o" its su&&lier
Bmostly bottling com&anyC to e*clusively &rovide by their services to Coca(Cola) ;hus$ it is
almost im&ossible "or ne+ comers to ,ee& u& +ith Coca(Cola and similar com&etitors +ith
recognized names in the business such as 'e&si) ;he Coca(Cola success isnEt something that has
been achieved over night) >any years has &assed since Dohn 'emberton created the secret
"ormula "or Coca(Cola in /::0
2ata -olle-tion
>e 0sed t* met,*ds t* .*lle.t t,e data:
Se-ondar) data >e ,a/e .*lle.ted t,e data +r*m .atal*4 and
br*.,0re *+ t,e .*.a-.*la .*mpany E9ternal data t,at -e ,a/e
.*lle.ted +r*m Internet are 4i/en *n t,e net
"rimar) data Primary data are dire.tly .*lle.ted +r*m t,e +a.e-t*-
+a.e inter/ie-
Bibliography:
C*mpany ,ist*ry is made +r*m t,e Internet source.
E9e.0ti/e s0mmary is -ritten +r*m t,e catalog.
Sit0ati*n analysis is -ritten +r*m t,e face-to-face interview
noted! " catalog.
C*.a .*la l*4* is d*-nl*aded +r*m t,e Internet.