Professional Documents
Culture Documents
Supervised By:
Salam, Redwan Faculty School of Business
Submitted By:
Name Ayon, Injamamul Haque Jishad,Mouly Shaleheen Khan,Kamal Yusuf Mostofa,Rabeya Biswas,Animesh ID 11-18695-1 11-18797-1 11-18411-1 10-17502-3 11-18760-1
1|Page
Letter of transmittal
Date: 9 th February, 2013 To, Salam, Redwan Course Instructor Global Trade American International University-Bangladesh Subject: Submission of the report on A case study analysis of a global company that is working in Bangladesh. Dear Sir, We are pleased to submit to you the assignment on A case study analysis of a global company that you have assigned us to prepare on the course Global TradeIt was a worthwhile experience for us to prepare this case. At the time of preparation of this case analysis we have got an opportunity to know the various aspects of global company which are working in Bangladesh. We thank you for assigning us such an interesting work and for your all through cooperation. We will be available for any clarification regarding the contents of the report. Sincerely yours,
Ayon,Injamamul Haque
Khan,Kamal Yusuf
.. Mostofa,Rabeya
.. Biswas,Animesh
2|Page
Acknowledgement
At first, we take the opportunity to thank The Almighty. Then we express our thanks to our department and authorities for granting us such opportunity in this level. We are very pleased to accomplish the assigned task given by our revered course instructor Salam, Redwan. While completing this report we faced different problems such as shortage of time, information regarding the subject. But we have been able to overcome the problems with direct and indirect assistance from our course instructor. We are really thankful to him Above all, we have to thank the people who provided us with valuable Information, gave us their valuable time and helped us in every way possible.
3|Page
Executive Summary
This report is based on the Coca Cola company . This is one of the most leading global company that is also working in Bangladesh. In this report we try to find out the existence, working process and also others details. As the worlds largest beverage producer, Coca Cola sells its products in more than 200 countries worldwide. The Coca-Cola system is not a single entity from a legal or managerial perspective, and the Company does not own or control all of our bottling partners. While many view our Company as simply "Coca-Cola," our system operates through multiple local channels. Our Company manufactures and sells concentrates, beverage bases and syrups to bottling operations, owns the brands and is responsible for consumer brand marketing initiatives. Coca-Cola, in fact, has now become one of the most famous and widely consumed brands in the world. It has not only established its footings in the beverage industry but is currently heading the list of the most financially sound companies in the world.
4|Page
Table of Contents
Subject
Letter of transmittal Acknowledgement Executive Summary
Page 2 3 4
Chapter 1 Chapter 2
Chapter 3
Introduction History Mission Visions Values Statistics Profitability Number of Branches in Worldwide Number of Products Employees Coca cola Strategic operations
General Rules Of Ethics
6 6 7 7 8 9 10-11 12-15 16 17 18
18
Coca cola marketing strategies Comparison Graph With Pepsi Reasons for being successful Brand Success/ Achievements of Coca-cola CSR Cocacola & Bangladesh Conclusion
19
Chapter 7
20 21-23 24 25 26 27
Chapter 8 Chapter 9
5|Page
Introduction
The Coca-Cola Company (herein known as Coke) possesses one of the most recognized brands on the planet. It sits firmly atop Business Weeks annual list of top-100 global brands by dollar value ($67.3 billion), beating out the likes of Microsoft, IBM and General Electric.
History
It is through this brand recognition that the company has been able established itself as an icon of Americanism as it spreads its cult image to the rest of the world. Coca-Cola laid the foundation of the beverage industry when it was formed in May 1886 in Atlanta. However it was not until 1895 that the idea of selling coke in bottles was introduced. With the passage of time Coca-Cola gained popularity and its product began to get recognized internationally. Thus from its mere beginning in 1886 Coca-Cola has now been transformed into a strong multinational with its product being currently recognized all over the world. Coca-Cola, in fact, has now become one of the most famous and widely consumed brands in the world. It has not only established its footings in the beverage industry but is currently heading the list of the most financially sound companies in the world. Coca-Cola debuted in Atlanta's largest pharmacy, Jacob's Pharmacy, as a five-cent noncarbonated beverage. Later on, the carbonated water was added to the syrup to make the beverage that we know today as Coca-Cola. In the mid-1970, more than half Coca-Cola sold was outside of the U.S. Coca-Cola products outsell closest competitor by more than two to one. One in every two cola and one in every three soft drinks is a Coca-Cola product. The best-known trademark in the world is sold in about one hundred and forty countries to 5.8 billion people in eighty different languages. This is why Coca-Cola is the largest soft drink company in the world. For more than 65 years, Coca-Cola has been a sponsor of the Olympics. Advertisements for Coca Cola started on the radio in the 1930s and on the television in 1950. Currently Coca-Cola is advertised on over five hundred TV channels around the world.
6|Page
Mission
Coca colas roadmap starts with mission, which is enduring. It declares the purpose as a company and serves as the standard against which they weigh their actions and decisions. The Coca-Cola mission statement declares the companys purpose and serves as the standard in which actions and decisions are made, and includes three parts. These are To refresh the world, To inspire moments of optimism and happiness, and To create value and make a difference
Visions:
Our vision serves as the framework for our Roadmap and guides every aspect of our business by describing what we need to accomplish in order to continue achieving sustainable, qualitygrowth.
People: Be a great place to work where people are inspired to be the best they can be. Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs. Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value.
Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities.
7|Page
Values:
Live Values Coca cola values serve as a compass for their actions and describe how they 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 their brands Quality: What we do, we do well
Focus on needs of their consumers, customers and franchise partners Get out into the market and listen, observe and learn Possess a world view Focus on execution in the marketplace every day Be insatiably curious
Work Smart
Act with urgency Remain responsive to change Have the courage to change course when needed Remain constructively discontent Work efficiently
Be accountable for their actions and inactions Steward system assets and focus on building value Reward their people for taking risks and finding better ways to solve problems
8|Page
Investments Policy:
Cash Equivalents Coca-Cola classifies time deposits and other investments that are highly liquid and have maturities of three months or less at the date of purchase as cash equivalents. Coca-Cola manages exposure to counterparty credit risk through specific minimum credit standards, diversification of counterparties and procedures to monitor credit risk concentrations. Short-Term Investments Coca-Cola classifies time deposits and other investments that have maturities of greater than three months but less than one year as short-term investments. Investments in Equity and Debt Securities Coca-Cola uses the equity method to account for investments in equity securities if investment gives Coca-Cola the ability to exercise significant influence over operating and financial policies of the investee. Coca-Cola includes proportionate share of earnings and/or losses of equity method investees in equity income (loss) net in consolidated statements of income. The carrying value of Coca-Cola's equity investments is reported in equity method investments in consolidated balance sheets. Coca-Cola accounts for investments in companies that Coca-Cola does not control or accounts for under the equity method either at fair value or under the cost method, as applicable. Investments in equity securities are carried at fair value if the fair value of the security is readily determinable. Equity investments carried at fair value are classified as either trading or available-for-sale securities with their cost basis determined by the specific identification method. Realized and unrealized gains and losses on trading securities and realized gains and losses on available-for-sale securities are included in other income (loss) net in consolidated statements of income. Unrealized gains and losses, net of deferred taxes, on available-for-sale securities are included in consolidated balance sheets as a component of
9|Page
accumulated other comprehensive income (loss) ("AOCI"). Trading securities are reported as either marketable securities or other assets in consolidated balance sheets. Securities classified as availablefor-sale are reported as either marketable securities, other investments or other assets in consolidated balance sheets, depending on the length of time Coca-Cola intends to hold the investment. Coca-Cola's investments in debt securities are carried at either amortized cost or fair value. Investments in debt securities that Coca-Cola has the positive intent and ability to hold to maturity are carried at amortized cost and classified as held-to-maturity. Investments in debt securities that are not classified as held-to-maturity are carried at fair value and classified as either trading or available-for-sale.
Profitability:
Profitability ratios measure the company's ability to generate profitable sales from its resources (assets).
Ratios Gross Profit Margin Operating Profit Margin Net Profit Margin Return on Equity (ROE) Return on Assets (ROA)
10 | P a g e
Description Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures.
The company Coca-Cola Co.'s gross profit margin deteriorated from 2009 to 2010 and from 2010 to 2011.
Coca-Cola Co.'s operating profit margin deteriorated from 2009 to 2010 and from 2010 to 2011. Coca-Cola Co.'s net profit margin improved from 2009 to 2010 but then deteriorated significantly from 2010 to 2011.
ROE
Coca-Cola Co.'s ROE improved from 2009 to 2010 but then deteriorated significantly from 2010 to 2011.
ROA
Coca-Cola Co.'s ROA improved from 2009 to 2010 but then deteriorated significantly from 2010 to 2011.
11 | P a g e
Country United States Canada (English) Canada (Franais) Argentina Bahamas Belize Bolivia Brasil Caribbean Chile Colombia Costa Rica Dominican Republic Ecuador El Salvador Guatemala Honduras Mxico Nicaragua Panam Paraguay Per Trinidad and Tobago Uruguay Venezuel Austria Belgium Belgium Bosnia Bulgaria Croatia Czech Republic Denmark Estonia Finland France Germany
Latin America
Europe
12 | P a g e
Great Britain Greece Hungary Iceland Ireland Italy Latvia Lithuania Luxembourg Netherlands Norway Poland Portugal Romania Serbia Slovakia Slovenia Spain Eurasia Azerbaijan Bahrain Belarus India Israel Kazakhstan Pakistan Palestinian Territories Qatar Russia Turkey Ukraine United Arab Emirates Angola Botswana Congo Democratic Republic of Congo Djibouti Egypt Egypt Ethiopia Kenya Lesotho Madagascar Malawi Mauritius
Africa
13 | P a g e
Mozambique Namibia Nigeria Rwanda Somalia South Africa Swaziland Tanzania Tunisia Uganda Zambia Zimbabwe Asia Pacific Australia Bangladesh French Polynesia Indonesia Japan Malaysia Maldives New Zealand People's Republic of China Philippines Republic of Korea Republic of Singapore Sri Lanka Taiwan Thailand
14 | P a g e
Number of Products:
Aquapure Aquarius Bacardi Mixers Bacardi Premium Mixers Barqs Barrilitos Beverly Bright And Early caffeine free Barqs caffeine free Coca-Cola caffeine free Coke light/Diet Coke Campbells Cascal cherry Coke Chippewa Citra Coca-Cola Coca-Cola Zero Cumberland Gap Minute Maid
DANNON DASANI Delaware Punch diet Barqs Diet cherry Coke Diet Coke/Coca-Cola light Diet Coke/Coca-Cola light with Lime Diet Fanta Diet Inca Kola Diet Mello Yello/Mello Yello Zero Diet NESTEA llly Inca Kola Java Monster Juan Valdez Krest Lift Master Chill Master Pour
Diet Vanilla Coke Dr Pepper Evian Fanta Five Alive Flavor Rage Fresca Fruitopia FUZE Georgia Glacau smartwater Gacau vitaminwater Glacau vitaminwater zero Gold Peak H2OK Hi-C Honest Mello Yello Mezzo Mix McCafe Minute Maid Enhanced
15 | P a g e
Employees:
More than 700,000 associates create the Coca-Cola system. Each associate brings his or her unique talents and ideas to work every day to help the Coca-Cola system achieve the goals outlined in our 2020 Vision. Associates also represent Coca-Cola in their communities and are ambassadors of our brands to the world. Ensuring our associates are happy, healthy and treated fairly and with respect is at the core of our business philosophy and success. We strive to create open work environments as diverse as the markets we serve, where people are inspired to create superior results. We also aim to create environments where people are fully engaged and where the Company is viewed both internally and externally as an employer of choice.
Rewarding and Developing Employees: Coca cola compensation and benefits packages are among the best in the world, benchmarked against other global, high-performing employers. They also offer a variety of developmental opportunities for our associates, including Coca-Cola University, a learning program for high performers. Using the Peak Performance System, their performance management and development system, in tandem with more than 100 global people development forums, associates and their managers regularly discuss development, movement and succession plans around the world.
16 | P a g e
2. Selectively broaden our family of beverage brands to drive profitable growth. Enormous opportunity exists in categories such as juice and juice drinks, bottled water, teas, energy drinks, coffee and more.
3. Grow system profitability and capability together with their bottling partners .Coca Cola is a company of relationships, and one of our most important relationships is the one we share with our bottling partners. In 2003, those relationships became more profitable and productive.
4. Serve customers with creativity and consistency to generate growth across all channels. They will continually strive to increase growth for the customers' businesses, helping create a context for the company's growth.
5. Direct investments to highest-potential areas across markets. Coca Cola tailor their business approach to the individual marketplace based on its stage of development. In this way, we direct our investments in a way that makes the most business sense.
6. Drive efficiency and cost-effectiveness everywhere .By leveraging technology, creating alignment across business units and achieving economies of scale, we are able to operate with more efficiency.
17 | P a g e
18 | P a g e
19 | P a g e
20 | P a g e
21 | P a g e
Achieving Strategic Consensus Another important aspect of Coca-Cola's branding strategies is the fact that strong brands make great sales and increase their revenues. However, Coca-Cola has taken the extra mile by building a brand that has managed to increase sustainable sales by attracting and retaining the best human capital and investing in employee relations and customer relation management. This has enabled the corporation not only to achieve strategic consensus and alignment at all organizational levels, but also to trigger positive feelings in consumers' minds. Building Brand Loyalty Finally, strong brand image is related to brand loyalty. The more consumer demands are satisfied, the more consumers are attached to a brand and retained by default. Also, Coca-Cola's brand image entails the purchase frequency that is boosted by effective advertising campaigns and marketing strategies. In doing so, the corporation expands its customer base and enhances customer loyalty by meeting customer needs and raising customer satisfaction.
22 | P a g e
As a soft drink company coca cola has achieved a lot, among which some of the achievement are given below. 1886 Sales of Coca-Cola averaged nine drinks per day. That first year, Dr. Pemberton sold 25 gallons of syrup, shipped in bright red wooden kegs. Red has been a distinctive color associated with the No. 1 soft drink brand ever since.1891 - Atlanta entrepreneur Asa G. Candler had acquired complete ownership of the Coca-Cola business. Pemberton was forced to sell because he was in a state of poor health and was in debt. He had paid $76.96 for advertising, but he only made $50.00 in profits. Candler acquired the whole company for $2,300. Within four years, Candler's merchandising flair helped expand consumption of Coca-Cola to every state and territory.1893 In January "Coca-Cola" was registered in the U.S. Patent office.1894 - The first syrup plant outside of Atlanta was opened in Dallas.1899 Chandler's great achievement -- large scale bottling of Coca-Cola1906 The first two countries outside the United States to bottle Coca-Cola were Cuba and Panama.1915 The Root Glass created the CocaCola contour glass bottle.1917 - 3 Million Coke's sold per day. 1919 The Coca-Cola Company was sold to a group of investors for $25 million. 1923 The Coca-Cola Company was sold after the Prohibition Era to Ernest Woodruff for 25 million dollars. He gave Coca-Cola to his son, Robert Woodruff, who would be president for six decades.
23 | P a g e
2. Coca-Cola Increases Conservation Support for World's Largest Forest: The Coca-Cola Company and the Sustainable Amazonas Foundation (FAS) announced the expansion of their partnership focused on the economic development and conservation of Amazonian preservation reserves. The expansion's objective which includes financial support of US $1.3 million is to invest in programs that support income generation and conservation in the Rio Negro Sustainable Development Reserve. By 2017, Coca-Cola Brazil will have invested over US$ 13 million in FAS programs.
3. The Coca-Cola Company Joins (RED) to Help Eliminate AIDS: The Coca-Cola Company announced a multi-year partnership with (RED) to raise awareness and money for the Global Funds efforts to virtually eliminate mother-to-child transmission of HIV by 2015.
4. The Coca-Cola System Donates More Than $2 Million USD for Flood Victims in Thailand: The Coca-Cola system has committed more than $2 million USD to Reunite to Relieve and Rebuild Thailand, a sustainable flood relief initiative designed to provide emergency relief and rebuilding efforts to help victims of the devastating floods in Thailand. As part of this $2 million USD, The CocaCola Foundation will contribute $1 million USD to Habitat for Humanity Thailand to rebuild schools and homes. Additionally, the Company is partnering with the Thai Red Cross and Habitat to mobilize groups of volunteers, set-up and run mobile kitchens and deliver bottled water and food.
24 | P a g e
Global beverage giant Coca-Cola will open its first plant in Bangladesh to tap growing demand for carbonated soft drink, a top local investment official has said.
"The company has already registered with the Board of Investment to invest about $50 million by 2013," BoI executive chairman SA Samad told bdnews24.com.
Coke's bottling operations will bring in Tk 3.76 billion foreign equity and manage another Tk 375 million working capital locally, according to information it provided to the investment board.
The Atlanta-based soft-drink behemoth has set its sight on starting commercial operation by Sept 2013 at a plant in Tongi where it will produce Coca-Cola, Sprite, Fanta, juice and juice-based drink, and packaged drinking water. Coca-Cola started business in Bangladesh with an agreement with Tabani Beverage, owned by a Pakistani national, in 1965. After independence, Tabani was put under the Freedom Fighters' Welfare Trust and it continued its business up to 2008.
The multinational company used to sell Tabani the liquid concentrate of its brands and Tabani produced cold drinks and marketed them. The global giant asked Tabani to scale up its capacity in 1978 which it failed to do. Coke then signed another agreement with Abdul Monem Group to produce the cold drinks.
25 | P a g e
In conclusion, Coca-Cola is a successful product, not only because it has built a recognizable logo and brand name, but mostly because it has managed to position its brand in a way that takes advantage of all the elements of marketing mix, i.e. product, place price and promotion/distribution. In doing so, it achieves to develop a brand personality and distinguish itself from competition, while offering consumers a clear view of its brand values. This leads to increased brand loyalty and satisfaction.
The Coca Cola Company is currently one of the biggest and most recognized soft beverage brands in the world. With over 3000 products in more than 200 countries, the Coca-Cola Company has surely become part of peoples lives. The Coca-Cola Company owes its success to the people who do their best to achieve the task at hand. Thus, the Cola-Cola Company takes cares of its employees in return by creating a good working environment and working along with unions and government agencies to make sure its employees are safe. The Coca-Cola Company understands that in todays business world technology is very essential to run such a big company like Coca-Cola. Therefore, the Coca-Cola Company uses different types of technology such as creating databases and data warehouse about their customers and suppliers, doing business with consumers and other businesses through the internet. The Company is committed to monitoring performance in the area of social responsibility against benchmarks to make sure that it is, and continues to be, a good citizen as well as the benchmark global brand.
26 | P a g e
References:
1 2 3
Rat Found in Minute Maid Plant Coke's Processor Fires Whistle Blower, PR Newswire, July 10, 2001 EDS Toasts New Beverage Business This Holiday Season, Canada Newswire, December 29, 2003 Waller, P., Sugar giant in Coca-Cola deal, Press Association, February 8, 2005 Thurston, S., Coca Cola: Struggle in Europe, Atlanta Journal and Constitution, June 22, 1999 From Killer Coke, http://www.killercoke.org/active-in-campaign.htm
Srivastava, A., Coke with Yet Another New Twist: Toxic Cola, India Resource Center, January 31, 2004, http://www.indiaresource.org/campaigns/coke/2004/coketwist.html
7
Coca Cola Company Press Release, Coca-Cola Unveils Plans For Institute Dedicated To The Role Of Beverages In Healthy Lifestyles, March 1, 2004, http://www2.cocacola.com/presscenter/
9
http://www.stock-analysis-on.net/NYSE/Company/Coca-Cola-Co/Ratios/Profitability
13
http://www.coca-colacompany.com/our-company/employee-engagement
14 15
Source: http://www.defence.pk/forums/bangladesh-defence/150814-coca-cola-invest-50millionbangladesh.html#ixzz2LuaTPdZY
18
http://businesscasestudies.co.uk/coca-cola-great-britain/the-importance-of-socialresponsibility/conclusion.html#axzz2Luf2KgkM
19
http://team7coca-cola.blogspot.com/2010/11/conclusion.html
27 | P a g e