Coca-Colas Main Strategic Goals

1. Streamline and simplify organization

2. Refocus on core business model, drive efficiency through aggressive productivity
3. Drive revenue and profit growth with clear portfolio roles across TCCCs markets
4. Improve advertising quality, targeted increase in media spending
5. Accelerate, profitable growth, access new technologies, categories and assets

Corporate Strategies
1. Refocus on core business model, drive efficiency through aggressive
productivity

They aim to improve performance, optimize manufacturing and distribution

systems. By year-end 2017, Coca-Cola expects Company-owned bottlers to
produce just 3 percent of our global volume, down from 18 percent.

Vertical Integration

Vertical integration is the process of gaining ownership or increased control over

distributors or retailers.

In this case, Coca-Cola started the Coca-Cola System, which refers to their
network of Company owned or controlled bottling and distribution operations,
independent bottling partners, distributors, wholesalers and retailers- the worlds
largest beverage distribution system. This is done by entering in a bottlers
agreement with their independent bottling partners and from time to time
acquiring or taking control of bottling operations to improve performance.

They have announced a transaction to form a unified new bottling partner in

Western Europe and took action to improve our bottling system in Southern and
East Africa, Indonesia and China by merging two established independent Coca-
cola bottlers (Coca-cola Enterprises and Coca-cola Iberian Partners) and the
companys remaining company-owned bottling operations in Gemany (Coca-cola
Erfrischungsgetranke AG)

Their five largest independent bottling partners based on unit case volume in
2016 were:

Coca-Cola FEMSA, S.A.B. de C.V. ("Coca-Cola FEMSA"), which has bottling

and distribution operations in Mexico (a substantial part of central Mexico,
including Mexico City, as well as southeast and northeast Mexico), Guatemala
(Guatemala City and surrounding areas), Nicaragua (nationwide), Costa Rica
(nationwide), Panama (nationwide), Colombia (most of the country), Venezuela
(nationwide), Brazil (greater So Paulo, Campias, Santos, the state of Mato
Grosso do Sul, the state of Paran, the state of Santa Catarina, part of the state
of Rio Grande do Sul, part of the state of Gois, part of the state of Rio de
Janeiro and part of the state of Minas Gerais), Argentina (federal capital of
Buenos Aires and surrounding areas) and the Philippines (nationwide);

Coca-Cola European Partners plc ("CCEP"), which has bottling and distribution
operations in Andorra, Belgium, France, Germany, Great Britain, Iceland,
Luxembourg, Monaco, the Netherlands, Norway, Portugal, Spain and Sweden;

Coca-Cola HBC AG ("Coca-Cola Hellenic"), which has bottling and distribution

operations in Armenia, Austria, Belarus, Bosnia and Herzegovina, Bulgaria,
Croatia, Cyprus, the Czech Republic, Estonia, the Former Yugoslav Republic of
Macedonia, Greece, Hungary, Italy, Latvia, Lithuania, Moldova, Montenegro,
Nigeria, Northern Ireland, Poland, Republic of Ireland, Romania, the Russian
Federation, Serbia, Slovakia, Slovenia, Switzerland and Ukraine; Arca
Continental, S.A.B. de C.V., which has bottling and distribution operations in
northern and western Mexico, northern Argentina, Ecuador and Peru; and

Coca-Cola ("Coca-Cola which has bottling and distribution operations in

Azerbaijan, Iraq, Jordan, Kazakhstan, Kyrgyzstan, Pakistan, Tajikistan, Turkey
and Turkmenistan and distribution operations in Syria.
 Retrenchment Strategy

Regrouping through cost and asset reduction to reverse declining sales and profit

To address volume growth weakness and maximize margins by making the

Coca-cola system more efficient.

Refranchising company owned operations to a network of large, trusted and

reliable anchor bottlers. Cutting down numbers of employees and transferring
them to its trusted bottlers.

2. Accelerate, profitable growth, access new technologies, categories and

assets

Diversification Strategy & Strategic Alliance

To address slow growth and decline in consumption of carbonates and sugarised

drinks by consumers

Diversification strategy refers to seeking unfamiliar products or markets to

develop and exploit. It is a strategy to eliminate the potential risk of a current
product or market orientation does not seem to provide further opportunities for
growth.

Coca-Cola uses this strategy to explore new drink categories continuously, and it
is keeping the tradition of expanding on their current portfolio of brands and
products. Coca-Cola has more than 3000 products in over 200 countries of the
beverage brands with core focus on brand of Coca-Cola, Diet Coke, Coke Zero,
Sprite and Fanta. Branching out from its traditional soft drinks, Coca-Cola
ventured into energy drinks segment in Powerade.

Coca-cola expands their expansive beverage portfolio. They entered a strategic

new partnership with Monster Beverage Corporation, improving their position in
the energy category. They 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. They also expanded to nationwide the U.S.
distribution of fairlife ultra-filtered milk.

They produce and/or distribute certain other third-party brands, including brands
owned by Dr Pepper Snapple Group, Inc. ("DPSG"), which they produce and
distribute in designated territories in the United States and Canada pursuant to
license agreements with DPSG.

They have a strategic partnership with Aujan Industries Company J.S.C.

("Aujan"), one of the largest independent beverage companies in the Middle
East. They own 50 percent of the entity that holds the rights in certain territories
to brands produced and distributed by Aujan, including Rani, a juice brand, and
Barbican, a flavored malt beverage brand.

They have a joint venture with Nestl S.A. ("Nestl") named Beverage Partners
Worldwide ("BPW") which markets and distributes Nestea products in Europe
and Canada under agreements with their bottlers. The Nestea trademark is
owned by Socit des Produits Nestl S.A.

3. Improve advertising quality, targeted increase in media spending and

Drive revenue and profit growth with clear portfolio roles across TCCCs
markets

Market Penetration Strategy

Seeking increased market share for present products or services in present

markets through greater marketing efforts.

In 2015, Coca-Cola developed their first global marketing campaign to support

the entire Coca-Cola Trademark of Coke, Diet Coke, Coke Zero and Coca-Cola
Life.
 In early 2016, Coca-Cola launched Taste the Feeling which emphasizes the
refreshment, taste, uplift and personal connections that are all part of enjoying an
ice-cold Coca-Cola. With this campaign and their broader one brand strategy,
they are 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.

They increased spending on media advertising by more than $250 million, and
we used these funds to share stronger, more impactful ads.

Other Strategy

They aim to increase efficiency and productivity while reducing costs and part of
the solution was zero-based work 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. They also cut spending on
non-media marketing like in-store promotions and we continuously finding new
savings in their supply chain around the world.

4. Streamline and simplify organization

Coca-Cola removed a layer of functional management and connected their
regional business units directly to headquarters. They streamlined a number of
important internal processes and removed roadblocks and barriers that inhibited
them from being as effective and responsive as they knew they could be.
Most importantly, they began to look at ways to enhance further the employee
experience across their Company with the goal of creating the worlds most
exciting, productive, fun and fulfilling career environment, with workplaces that
nourish curiosity, learning, innovation and growth.
Implementation Strategy

Management and Operations Issues

Employees

As of December 31, 2016 and 2015, Coca-Cola Company had approximately 100,300 and 123,200
employees, respectively, of which approximately 2,900 and 3,300, respectively, were employed by
consolidated variable interest entities ("VIEs"). The decrease in the total number of employees in 2016
was primarily due to the refranchising of certain bottling territories that were previously managed by
CCR to certain of the Company's unconsolidated bottling partners, as well as the deconsolidation of their
German and South African bottling operations. As of December 31, 2016 and 2015, our Company had
approximately 51,000 and 60,900 employees, respectively, located in the United States, of which
approximately 400 and 500, respectively, were employed by consolidated VIEs. Our Company, through
its divisions and subsidiaries, is a party to numerous collective bargaining agreements. As of December
31, 2016, approximately 16,300 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.
https://www.ukessays.com/essays/business/background-vision-mission-goals-and-
values-of-coca-cola-business-essay.php Published: 23rd March, 2015 Last
Edited: 18th July, 2017

http://www.coca-
colacompany.com/content/dam/journey/us/en/private/fileassets/pdf/investors/2016-
AR/10-K.pdf

http://blog.euromonitor.com/2016/05/coca-colas-refranchising-effort-seeks-global-
efficiencies-as-consumption-shifts.html

http://www.coca-colacompany.com/stories/five-strategic-actions
Notes:

Coca-Cola Enterprises (CCE) and positioned it as an independent bottling subsidiary of

Coca-Cola. The parent company would buy other struggling bottlers and resell them to
CCE.

Apart from that, the company has also established a long-standing relationship with
various distributors and bottlers that would lower transaction frequency. This could in
turn lower transaction costs and unreliability. This is done by entering long-term
contracts with its counter parties.

We make our branded beverage products available to consumers in more than 200
countries through our network of Companyowned or -controlled bottling and distribution
operations, independent bottling partners, distributors, wholesalers and retailers the
world's largest beverage distribution system. We have separate contracts, to which we
generally refer as "bottler's agreements," with our bottling partners regarding the
manufacture and sale of Company products. However, from time to time we acquire or
take control of bottling operations, often in underperforming markets where we believe
we can use our resources and expertise to improve performance. Owning such a
controlling interest enables us to compensate for limited local resources; help focus the
bottler's sales and marketing programs. In line with our long-term bottling strategy, we
may periodically consider options for divesting or reducing our ownership interest in a
Company-owned or -controlled bottler, typically by selling our interest in a particular
bottling operation to an independent bottler to improve Coca-Cola system efficiency.
When we sell our interest in a bottling operation to one of our other bottling partners in
which we have an equity method investment, our Company continues to participate in
the bottler's results of operations through our share of the equity method investee's
earnings or losses.

9.3 Strategic Alliance

The distribution of Coca-Cola has reached all around the globe; it has a huge and wide
customer base. Therefore, Coca-Cola highly focuses on enabling their customers to
reach their products more regularly. Thus, all partners of Coca-Cola work closely with
customers - street vendors, amusement parks, convenience stores, grocery stores,
restaurants and movie theaters, among many others -- to execute localized strategies
developed in partnership with Coca-Cola.

On the other hand, Coca-Cola also gained profit by going into joint ventures with other
companies. For example, in February 2001, the Coca-Cola Company and Procter &
Gamble announced a $US 4.2-billion joint venture to use Coca-Cola's huge distribution
system to increase reach and reduce time to market for the P&G products Pringles and
Sunny Delight.