Step 1: Introduction of the Organization.

The first step in the case analysis process is to develop familiarity with the organization, a basic task not directly related to a specific theory or set of concepts presented in this chapter. Analyzing an ongoing enterprise begins with a general introduction and understanding of the company. When was the organization founded, why, and by whom? Is any unusual history associated with the organization? Is it privately or publicly held? What is the company's mission? Has the mission changed since its inception? It is also important at this point to identify the business model on which the organization's success is predicated. In other words, what is the basic profit-generating idea behind the company? Determining this information is simple for some companies (Ford, for example, hopes to sell cars and offer consumer financing at a profit) but may be complicated for others where revenue streams and competitive advantage are more difficult to identify.

Coca-Cola originated in Atlanta Georgia in 1886 by a local pharmacist, Dr. John Smith Pemberton. Dr. Pemberton, along with his bookkeeper, Frank M. Robinson, began marketing the new fountain drink around Atlanta and enjoyed modest sales. Dr. Pemberton began selling shares of Coca-Cola and by the time of his death in 1888, he had sold all of his shares of Coca-Cola. (The Coca-Cola Company) Asa G. Candler, an Atlanta businessman, began purchasing shares of Coca-Cola and eventually gained complete ownership of the company in 1891. The total cost of all his acquired shares was $2,300. His aggressive marketing campaigns helped Coca-Cola grow drastically, and soon he incorporated The CocaCola Company in the state of Georgia. Heavy marketing and promotional techniques caused demand for Coca-Cola to increase dramatically and soon the product was sold throughout the United States. CocaCola was first bottled in 1894 by Joseph A. Biedenharn in Vicksburg, Mississippi. Five years later, Benjamin F. Thomas and Joseph B. Whitehead, later joined by John T. Lupton, acquired exclusive rights to bottle and sell Coca-Cola. Production and bottling facilities were added to help keep up with the rising demand of the popular soda. (The Coca-Cola Company) In 1919, the company was purchased by a group of investors for $25 million and made the company publicly held, selling 500,000 shares of stock for $40 each. A few years later, a man named Robert Woodruff became president of the company. He recognized the importance of producing a high quality product and implemented a Quality Drink program to ensure that his high standards were met. He also pushed marketing and advertising for bottled Coca-Cola, which caused a drastic increase in sales. Early in the 20th century, The Coca-Cola Company began selling its products in foreign countries. While this was a shaky attempt at first, soon bottling companies were being opened all over the world. By 1926, foreign business had become strong and the company opened a Foreign Department, soon after called The CocaCola Export Corporation. It was at this time that the company partnered with the Olympic Games, a partnership that still exists today. (The Coca-Cola Company) Coca-Cola s foreign sales were further boosted during World War II, when Woodruff pledged to provide US troops with Coca-Cola while they were overseas. A total of 64 foreign bottling plans were opened during the war to quench the thirst and boost the morale of the troops. This increased global awareness of Coca-Cola, and new bottling plants were opened in many new countries. After the war, Coca-Cola was globally viewed as a symbol of friendship and refreshment. (The Coca-Cola Company) Beginning in 1955, The Coca-Cola Company began changing its products, beginning with a change in packaging and the introduction of metal cans and plastic bottles. Then, the company began developing and marketing new sodas, such as Fanta and Sprite. Then in 1960, the company merged with Minute Maid Corporation to expand its product line further. (The Coca-Cola Company) The Coca-Cola Company has continued to grow throughout the years. Its product portfolio now contains over 3,500 drink products,

including sodas, fruit juices, teas, coffees, and waters. Its products are sold worldwide and the company continues to grow. (The Coca-Cola Company)

The Coca-Cola Company has a three-part mission: to refresh the world; to inspire moments of optimism and happiness; and to create value and make a difference. The company s vision, designed to help the company achieve its mission, is listed on the company s website as follows: y People: Be a great place to work where people are inspired to be the best they can be. y Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs. y Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value. y Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities. y Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities. y Productivity: Be a highly effective, lean and fast-moving organization. The company also has a lengthy list of values, including promoting a winning culture, leadership, collaboration, integrity, accountability, passion, diversity, and quality. Coca-Cola also places a great deal of emphasis on having a strong focus on the market, working smart, acting like owners, and being the brand. Coca-Cola s desire to be positive in all aspects of the business greatly reflects the company s image of friendliness. (The Coca-Cola Company)

Step 2: Identification of the Industry and Competitors After the organization has been introduced, its industry must be specifically identified. This process can be either relatively simple or difficult. For example, most would agree that Kroger is in the grocery store industry, and its competition comes primarily from other grocery stores. However, not all decisions are simple. For example, should Wal-Mart be classified in the department store industry (competing with upscale mall-oriented stores) or in the discount retail industry (competing with low-end retailers such as Family Dollar)? Is Taco Bell in the fast-food industry or in the broader restaurant industry? To further complicate matters, many corporations are diversified and compete in a number of different industries. For example, Anheuser Busch operates breweries and theme parks. In cases in which multiple business units are competing in different industries, one needs to identify multiple industries. Market shares or relative market shares for the firm and its key competitors based on the best available data should also be identified. It is important to clarify industry definition at the outset so that the macroenvironmental forces that affect it can be realistically assessed. In addition, a firm s relative strengths and weaknesses can be classified as such only when compared to other companies in the industry.

The Coca-Cola Company operates in the non-alcoholic beverage industry. According to the New York Times, this industry includes companies engaged in manufacturing non-alcoholic beverages, such as water, fruit drinks, soft drinks, iced coffee and tea, as well as other flavored beverages. (The New York Times) Coca-Cola s top US competitors are Pepsico and Dr. Pepper Snapple.

2.8% 4.4% 4.8% The Coca-Cola Company 16.7% 42.0% Pepsico Dr. Pepper Snapple Cott Corp. National Beverage Other 29.3%

As noted by the chart above, The Coca-Cola Company is extremely dominant in the industry, enjoying almost half of the market share at 42%. The top competitor, Pepsico, only has about 29.3% of the market. (Beverage-Digest) Coca-Cola further divides the non-alcoholic beverage industry into several categories, including energy drinks, juices and juice drinks, soft drinks, sports drinks, tea and coffee, water, and other products. (The Coca-Cola Company) Other sources use broader categories, including carbonated soft drinks and noncarbonated soft drinks. Carbonated soft drinks primarily include Coca-Cola, Diet Coca-Cola, Sprite, Fanta, Barq s Root Beer, and Coke zero. Carbonated soft drinks make up 82% of the company s sales. Noncarbonated soft drinks, which primarily include Capri Sun, Arizona Teas, Nestea, POWERade, and Minute Maid Juices to Go, make up about 10.5% of sales. The remainder of sales came from bottled water products, including Dasani, Evian, and Chaudfontaine. (Wikinvest)