FREE ESSAY ON COCA-COLA

COCA-COLA

History
Coca-Cola enterprises Incorporated, employees 66,199 operates, 444 facilities, 47,235
vehicles, 1.9 million pieces of cold drink equipment and sold 3.8billion unit cases in 46
states in the united states, all 10 provinces of Canada and portions of Europe including
Belgium, France, Great Britain, Luxembourg and the Netherlands (Coca-Cola facts 99).
An, Atlanta Pharmacist Dr. John Slyth Pemberton founded Coca-Cola on May 8, 1886. The
carmel colored ingredients, Coca leaves and kola nuts. Later the drink was striped of
narcotics. The drink was first designed as a drug that will help people feel better.
Pemberton sold his new drink for 5 cents a glass. Some time later carbonated water was
added to the syrup and that is how Coca-Cola was invented.
Dr. Pemberton sold Coca-Cola out of the pharmacy he worked at. The pharmacy was owned by,
a man named Frank M. Robinson. Robinson suggested Coca-Cola as a name for Pemberton's
drink. The two men took an old oilcloth sing and hung it in the window saying Drink
Coca-Cola. They averaged nine glasses sold a day.
In 1886 Pemberton became sick he sold some of his portions of his interest too Asa G.
Candler. In 1888 Pemberton died, and Asa Candler began buying all the out standing shares
of Coca-Cola. Candler was and Atlanta druggist and businessman. Candler knew Coke was
going to be something big. He then had complete control by 1891 for $2,300. In 1892,
Candler and his brother John Candler, Frank Robinson and two other associates formed
Coca-Cola Company in Georgia.
Candler was a master at marketing. He handed out coupons for one free glass of Coca-Cola.
He also promoted the beverage by painted walls, Clocks, outdoor posters, serving trays
and fountain urns. Candler marketing stragety worked Coke was available everywhere. The
sales took off. People started calling Coca-Cola Coke They urged the customers to call it
by its full name, but Coke just stuck.
In 1894, the company opened its first syrup manufacturing plant outside Atlanta in Dallas
Texas. The following year plants opened in Chicago and Los Angeles. Three years after the
Coca-Cola Company's incorporation Candler announced in the annual report: Coca-Cola in
the now drunk in every state and territory in the United States (History of Coca-Cola
Company). Joseph A. Biedenharn, of Vicksburg, Mississippi installed bottler machinery in
his candy store in 1894 and became the first Coca-Cola bottler in the United States.
Benjamin F. Thomas and Joseph B. Whithehead of Chatttanooga, Tennesse bought Coca-Cola
from Asa Candler for one dollar. He got all right to Coca-Cola he thn opened the first
bottling plant in Chattanooga that year. Candler sold the Coca-Cola Company in 1919 for
$25 million to an Atlanta banker named Ernest Woodruff and investor group he had
organized. In 1923 E. Woodruff's 33-year-old son Robert Woodruff was elected president of
Coca-Cola Company. The Business was re-incorporated as a Delaware corporation, and
500,000 shares of common stock were sold publicly for $40 per shares.
Robert Woodruff bought Coca-Cola Company to even greater highs for more then six decades.
Fundamental to his success was a commitment to the highest standards for product quality
a commitment that remains a hallmark for the Coca-Cola system today.
1981 Roberto Goizueta a Cuban born chemical engineers who rejuvenated the business.
Although Coca-Cola had dabbled on several industries over the years, Goizueta engineered
the largest of this diversification, the $700 million acquisition of Columbia pictures in
1982.
In 1985, Coke changed its original recipe for a New Coke. Market shares had fallen so
Guizueta thought that Coca-Cola needed a change his change was New Coke the consumers
rejected it. The company changed back to the original recipe. In 1986, it consolidated
the U.S. bottling operation it owned into Coca-Cola Enterprises and sold 51% of the new
company to the public.
In 1960, the Coca-Cola Company purchased minute Maid Corporation; adding frozen citrus
juice concentrates and adds, along with the trademarks minute maid and Hi-C, the
company's beverage line. The company later acquired Duncan foods, a coffee producer, and
formed the Coca- Cola company foods Division in 1967, now known as the Minute Maid
Company.
From 1977-1983 the company produced and marketed wine in the United States. In 1982 Coca
-Cola company bought Belmont Spring Water company Incorporated. Coca- Cola thought the
Entertainment business would be good for them so in 1982 the company acquisition to
Columbia Pictures Industries, Inc, which joined Tri Star Pictures in 1987, to form the
independent corporation Columbia Pictures Entertainment, Inc. Coca-Cola then sold Belmont
Springs Water Company, Inc. 1989, closing out a decade of accelerated growth and change.

In 1997, Robert Goizueta died of lung Cancer. While Robert was in the company the value
rose from 4 billion dollars to 145 billion dollars. Douglas Ivester, the architect of
Coca-Cola's restructured bottling operations, took over the company when Guizueta past
away. 
Coca- Cola and Investor ran into some legal problems when Invester took over. In 1997,
the French government blocked the company tried to buy Orangina from Peknod Ricard. Then
in 1998, an antitrust lawsuit from Pepsi - Cola challenged Coca-Cola's dominance in the
U.S. fountain -drink business. 
In June of 1999, products bottled where shut down for two weeks because some of the
bottles where contaminated in Belgium and France. This was the company largest product
recall in the company's history.
Corporate Culture
The Coca-Cola Company provides assistance to American Red Cross and Big Brother Big
Sister. These are just a few of the noble acts the Coca-Cola Company has become involved
in over the years.
Coca-Cola is a leading company, which will continue to grow in all respects. Most
importantly, it will grow because of the company's value system, and quality for not only
its product but also life.
Benefits
401k
Company Paid Coverage
Coca-Cola offers a full range of benefit options. The first benefit that may attract an
employee to work for Coke is their company-paid coverage. This would include basic life
insurance, basic long-term disability and health insurance.
Retirement, Pension, and Other Post Retirement Benefit Plans
For retirement, the company offers a 401(k) savings plan with matching company
contributions, an employee pension plan, and retiree medical and life insurance.
Paid Time Off
The company offers all of their employees some paid time off. This time off would include
sick pay or short-term disability, vacations, and holidays.
Flexible Benefits
The company also provides an opportunity for employees to receive flexible benefits.
These options would be medical coverage, including vision and prescription drugs, dental
coverage, health care and dependent care reimbursement accounts, supplemental long-term
disability insurance and supplemental and dependent life insurance. Coca-Cola also
provides educational assistance and employee assistance programs. Employees have access
to a variety of health management programs such as on site health club, cholesterol/blood
pressure screenings and other wellness programs.
Pension
Coca-Cola provides a variety of benefit pension plans covering all of its employees in
North America and Europe. Additionally, the company is involved in a number of
multi-employer pension plans worldwide. Coca-Cola also sponsors a post-retirement plan
that covers substantially all of American and Canadian employees who qualify before
retirement or terminated. In European Countries, primarily government-sponsored programs
cover retired Workers.
The total pension expenses for all benefit plans, including post-retirement health care
and life insurance benefit plans, amounting to approximately $119 million in 1998. In
addition, they also contribute to a voluntary beneficiary association trust, which will
be used to partially fund health care benefits for future retired employees.
Seeing how Coca-Cola employs 30,000 people worldwide, they try to increase scouting their
young employee's talent for potentially higher positions. These people start their jobs
in front line beverage sales, distribution, production, or service positions. The biggest
thing Coke is looking for is long term thinkers, says one insider, They don't want
cowboys. They want conservative people who are into adding shareholder values (Coke
insider, Investors Business Daily Coca-Cola).
In 1994, the Coca-Cola Company was awarded the Optimas Award for global outlook in
success for developing the standardized corporate culture. The company maintained a
long-standing commitment to equal opportunity, affirmative action, and valuing the
diversity of their consumers. The company's aim to create a working environment free of
discrimination and harassment with respect to race, sex, color, national origin,
religion, age, sexual orientation, disability, being a special disabled veteran. They
also have commitment to make reasonable accommodations in the employment of men and women
who are qualified with disabilities
In addition, to trying to create a working environment free of discrimination and
harassment with respect to sex and sexual orientation, to prohibit such discrimination
and harassment provide a complaint mechanism to ensure compliance. Even more important,
the company maintains an open door policy where employee related issues could be raised
freely. The whole idea of the open door policy is to provide an effective and timely
means for all company associates to find solutions to work related questions, problems,
and concerns that may effect the culture of the organization.
The company has management programs for potential management and people already in the
management program. Managers and associates work together on the development process.
This process includes determining development needs and agreeing on the development
methods. The approach to development may include on-the-job experience, specific training
programs, and other approaches to the development of the company. Feedback is an
essential factor in the appraisal process. It will prepare the associates for future
business needs. This is all part of there equal Opportunity Policy, Employees are trained
extensively nation wide. Coke provides its South African divisions with programs to
university students with the opportunity to learn new business skills by working within
the company. These specific programs allow employees to further build new skills, while
it also allows employees to build skills for the first time. The skills the employee's
posses aid the company in shareowner value
National Distribution
The Coca-Cola Company is the world's largest bottler of liquid nonalcoholic refreshment
in which they produce, market, and distributes their products in nearly 200 countries
throughout the world. Each day these countries consume 100 billion servings of Coca-Cola
products which stresses the importance of the invaluable service that Coca-Cola's
distribution and bottling centers provide for the company. The World's most effective and
pervasive distribution system is broken up into two different sectors which are then
divided even further into subunits such as the following:
1.) The North American Sector
- Coca-Cola USA [which operates in the U.S.]
- Coca-Cola LTD [responsible for soft drink operations in Canada.]
- Houston Base Coca-Cola Foods [produces and markets juices and juice like drinks.]
2.) The International Business Sector
- The Greater Europe Group [manages the regions that are part of the European Union.]
* Central & Eastern Europe
* Scandinavia
* Soviet Union
- The Latin American Group Overseas
* Mexico
* Central & South America 
- The Middle and Far East Group 
* Asia & Pacific Rim
* Middle East
- The Sub Sahara African Group
* Manages any countries below the Sahara Desert. 
This distribution system provides the backbone needed to support the company and help
them remain competitive in the cold-beverage industry. The company is always striving to
maintain quality products while maximizing customer satisfaction. Distribution has become
an intricate part of the companies success in being able to successfully produce quality
products that are delivered and sold around the globe in a cost effective and time
efficient manner. 
Coca-Cola's North American Distribution Sector deserves to be mentioned first, because
this is the region in the world where the Coca-Cola empire first evolved and continues to
prosper and grow. Coke has become an American icon that has managed to transform itself
from a profitable fountain soda into a generational product that Americans have grown to
love. The North American Sector operates under DSD policies (Direct Store Delivery)
inwhich the products are delivered to the store directly from the distribution center.
This is in an effort to maximize profits and maintain a quality image for their products
freshness. By contract with the Coca-Cola Company or it's local subsidiaries, local
businesses are authorized to bottle and sell company soft drinks within certain
territorial boundaries and under conditions that ensure the highest standards of quality
and uniformity. 
This affiliation is being created by Coca-Cola's Project Infinity, which is being
implemented by upper management to consolidate independent bottlers in an effort to cut
costs, pool resources, generate more buying power, improve overall communication
throughout the organization, and increase profits. This strategic alliance allows the
company to produce products that taste consistently good, contain the same amount of
ingredients, are packaged interchangeable, and are stocked and served to the customer in
a systematic way all across the country. 
One of the main components of Project Infinity is an application for sales and
distribution that Coca-Cola built for the bottling companies years ago, called Basis
(Beverage, Analytical, Sales, Information, Systems), which is used for routing delivery
trucks and determining specific customer needs in terms of volume. In addition Basis
serves other functions as well including such responsibilities as accounting, logging in
order entries, and payments. Basis is the central piece of Coca-Cola's distribution
center because it is used primarily as their dispatching and replenishing system. Without
Basis Coca-Cola would be unable to keep track of their inventory and supplies, which
would eventually have a dissolving effect on their overall internal structure.
Unfortunately, Coke realizes that their dominance in the cold-beverage industry will not
continue unless they come up with new innovative ways to remain competitive in a global
market. Therefore Coca-Cola is installing a massive integrative system called SAP
Applications (Strategic Alliance Program) which will eventually replace the outdated
Basis. 
This program is designed to share knowledge with each bottler and set up common systems
and applications that are integrated with each and every bottler within the Coca-Cola
organization. SAP is in the beginning stages of development, but Coca-Cola plans on using
SAP for multi purposes which include keeping track of their financial data, purchasing,
human-resources management, project-management applications, production and materials
management, quality management and plant maintenance, as well as sales and distribution
management. Initially around 5,000 users will have access to SAP applications which will
eventually increase to 25,000 users throughout Coca-Cola. Rick Engum, VP of Information
Services at Coca-Cola Enterprises Inc. in Atlanta states the following in regards to SAP
: These applications will speed the process of doing business with our suppliers and give
us better management of our overall supply chain. By using common applications all of us
in the Coca-Cola system will provide a consistent level of service [such as timely
deliveries] to customers. We could do this to some extent with the old systems, but it's
far easier to do with shared technology. 
SAP Applications provides Coca-Cola Enterprises and it's management even further incite
on understanding the business on a daily basis and how to go about making appropriate
changes or adjustments at a moments notice. This project is particularly beneficial to
the many large bottlers that have acquired smaller bottlers in an effort to strengthen
the bottling system, because SAP will allow Coca-Cola management to run all the plants as
one big unified company. Furthermore there is an eminent awareness throughout management
to remain focused on the customer and their needs. SAP enables the company to do this
through shared knowledge between each and every bottler. 
Coca-Cola has also installed ATLAS (Analysis, Tools, Logistics, And Sales) which will
eventually replace Basis, for creating and organizing delivery routes for each
distribution center. In the long-run Coca-Cola feels as though SAP & ATLAS will help the
entire organization become more efficient while minimizing costs. 
Another aspect involving Coca-Cola's distribution system is the companies' ambitious
product line. The Coca-Cola Company successfully markets and sells over 160 beverages to
a variety of customers throughout their delivery channels. These beverages are classified
into four separate groups, which consist of the following:
* CSD (Carbonated Soft Drinks) - Coke, Sprite, Surge, Dr. Pepper etc....
* No Carb- Nestea, juices, Fruitopia etc....
* IcoTonics - Powerade
* Water - Desani (filtered water), and Evian (pure spring water which is imported from
Sweden.) 
The company's core brands are Coca-Cola Classic, Diet Coke, and Sprite, which rank first,
third, and fifth among all carbonated soft drinks in North America. Coca-Cola's customers
are mainly retail outlets, restaurants, grocery stores, or any other operation that buys
their products, and in return sells or serves these products to consumers. The North
American Sector's major customers are Burger King, Mcdonald's, Subway, Wendy's, and many
airlines and hotels throughout North America and Canada. 
Coca-Cola's primary focus with these products is instant consumption, because that is an
area in the market that has the biggest growth potential. What instant consumption means
is that Coca-Cola is trying to create product accessibility for the consumer in an effort
to increase their sales volume without compensating the level of quality. Vending
machines help accomplish this goal, because they provide ice-cold Coca-Cola products to
consumers in a variety of locations. Recently Coca-Cola began offering the 20 once soda
beverage in their vending machines, which instantly became a wise profitable decision.
The advantage is that consumers end up spending more on the 20 once containers then they
do with the canned soda, which in the long run increases company profits. Full-service
drivers check and stock vending machines on regular routes, in a conscious effort to
maintain fully replenished machines. Furthermore the drivers are trained by the company
to focus on product presentation in which they are to follow strict company policies on
how to properly stock Coca-Cola products in retail outlets, as well as grocery stores
throughout the country. 
The drivers begin each day at 6:00 in the morning by meeting with sales managers, account
representatives, and merchandisers to plan out exactly how the products will be delivered
and sold throughout the day. Employees at all levels throughout the distribution system
take an extremely aggressive approach to producing and delivering Coca-Cola products in
real time without jeopardizing the quality of each and every product item. This shared
dedication to the company is what has enabled Coca-Cola to saturate the national market
and begin its quest for global dominance. 
International Distribution
Internationally Coca-Cola Company distributes 160 beverage varieties in nearly 200
countries worldwide. Coca-Cola owns 50% of the international soft drink market. Coca-Cola
works extremely hard to be one of the few companies in the world to successfully reach
literally billions of consumers. Coca-Cola's international distribution is the backbone
to the their global approach. About two-thirds of Coca-Cola's sales come from outside
North America, making the company sensitive to global economic turmoil. On the other
hand, that turmoil has enabled the company to make inexpensive international investments.
Coca-Cola's affiliates have been purchasing numerous bottlers in the U.S. and around the
world to recognize its global bottling system into major anchors in prime markets
(Coca-Cola Overview, 1). International distribution for Coca-Cola began when they decided
to introduce Coke to Canada and Mexico in 1898. Within that same time period Coca-Cola
expanded across the Atlantic Ocean to Europe. 
The man responsible for this was Charles Howard Candler, the oldest son of Coca-Cola's
founder Asa Candler. Charles brought with him a gallon of the secret syrup and sold it to
an American owner of a London soda fountain. The Coca-Cola syrup made an immediate impact
in Europe, which called for orders of five-gallon drums to Germany, Jamaica, and Panama.
In 1906, the international bottling and distributing plants were established in Panama
and Cuba. 
Then in 1926, Coca-Cola's international distribution began to expand even more with the
help of a man named Earnest Woodruff. He worked with his associates and Coca-Cola on
organizing international expansion by creating a Foreign Department. In 1930, the Foreign
Department became a subsidiary called The Coca-Cola Export Corporation distributing in
only a few European countries and Canada. By 1940, Coca-Cola's sales began to increase
with the expansion of bottlers in forty-five international countries. 
To this day Woodruff's theory is still being implemented as part of Coca-Cola's strategic
global approach. As a result of this strategy, 80% of Coca-Cola's operating income was
coming from outside the United States by the 1990's. In 1993, there was concern with
expanding Coca-Cola's international distribution due to a competitive global market. In
1993, more than 6.3 billion unit cases of Coke and Coke Classic were sold worldwide, in
more than 195 countries. Diet Coke was also the number one low-calorie soda in the world,
available in 117 countries (Global Dominance, 3). Along with the expansion came problems
for the Coke brands such as Fanta, Sprite, and Minute Maid. Coca-Cola didn't want to rely
on its bottlers to distribute and market their products. So, Coca-Cola and a regional
manager in the Phillippines came up with a new strategy model for international
expansion. When entering a new market, the Company would seek to establish distribution
of Coke products in key population centers and develop relationships with the important
retail channels (Global Dominance, 4). 
Coca-Cola is divided into four international geographic operating units and one national
operating unit. The four international geographic operating groups are the Greater Europe
Group, the Latin America Group, the Middle and Far East Group, and the Africa Group. The
Greater Europe Group operates in Western Europe and is also growing in the eastern parts
of Europe. The Latin America Group covers from Tijuana, Mexico, in the north to Tierra
del Fuego in the south, which also includes operations in Central and South America. The
Middle and Far East Group operates in the most populated areas of the world. This group
manages the countries of the Pacific and Middle East. These countries consist of Japan,
Australia, China and India. The last group is the African Group, which operates in the
countries that make up the sub-Saharan Africa. The Company and its geographic operating
units are led by a management team of seasoned soft drink business veterans from every
corner of the globe (Facts, Figures, and Features, 10). The Coca-Cola Company has too
many countries to that they distribute too, and it would be impossible to list and
explain each and every country. Japan, Argentina, Denmark, France, Belgium and China are
six of Coca-Cola's major distribution countries. The Coca-Cola Japan Company is a
complete beverage corporation that has accomplished leadership by continually providing
customers with beverages of the finest quality. Japan is highly ambitious in the beverage
market. Boasting more than seven thousand different soft drinks to choose from, the CCJC
is extremely competitive. In their vast market, there are five hundred different
manufacturers. Approximately one thousand new types of beverages are introduced annually.
The CCJC offers more than twenty-five brands and sixty flavors. Fifty percent of all soft
drink sales are made through vending machines making them an important part of sales at
the CCJC. The CCJC maintains nine hundred thirty thousand machines, more than twice the
amount of the closest competitor. 
In 1942, Coca-Cola production began in Argentina. Coca-Cola began flying off the shelves
the day it was introduced. A total of seven twenty-four bottle cases and eighteen single
185-milliliter bottles were sold that day. Sales in Argentina climbed up to 300,000 cases
by the end of 1943. Coca-Cola de Argentina S.A. currently sells approximately 1,000 times
more beverages annually than that historic year when it all started in 1942. They
accomplish these goals by using a fleet of 3,000 trucks and 18,000 reliable employees who
see to it those Coca-Cola products are readily available in every corner of the country.
In the 1930's Coca-Cola was imported into Denmark. 
An estimated forty-percent of Coca-Cola products are consumed by about 5.2 million Danes.
In 1933, Coca-Cola was introduced to France. Making its first appearance at the Cafe de
l'Europe in Paris, Coca-Cola has been the number one beverage in France since 1966. The
total amount of sales has doubled in eight years. Coca-Cola France has made more than
1,000 jobs available since 1989. Also, three billion francs have been invested in France
since 1989. The French consumers currently drink roughly 88 servings of Coca-Cola
products annually. The most popular brands in France are Schweppes, Canada Dry, and Dr.
Pepper. In 1927, Belgium was introduced to Coca-Cola. Due to the popularity of Coca-Cola
in Belgium, it is one of the top 20 countries in terms of consumption. The Coca-Cola
Company employs about 2,000 people and supplies up to 30,000 restaurants in Belgium.
Recently, in Belgium there had been a contamination scare which cost Coca-Cola and its
bottlers over $60 million in sales. Coca-Cola recalled about 14 million cases after E.
coli bacteria got into their products and caused approximately 200 people to become ill.
It was said that bacteria from the pallets got onto the cases of Coke. Then the people
who drank the soda ingested the E. coli bacteria and got sick. There also had been a
health scare with mineral water and the report of E. coli bacteria contamination in
Poland. 
This problem only happened with brands distributed in Europe. Coca-Cola entered China's
market in 1927 and is known as one of the largest soft drink markets in the world.
Coca-Cola's operations in China are a huge part of their success for their global
approach. China's population is about 1.2 billion and Coca-Cola covers approximately 900
million of their total population. Coca-Cola is still trying to reach more consumers in
China, so they're establishing a new distribution strategy to reach the other 300 million
people in less-populated and distant areas. They want to develop a direct distribution
system through route sales and opening more sales centers in the smaller cities.
Coca-Cola's main focus in China is to create affordable packaging and improving
distribution. China's consumers prefer to drink Coke out of non-returnable plastic
bottles or cans. 
Coca-Cola has twenty-three operating plants throughout China, but many of the western
provinces, still do not have franchises. Hong Kong, which is southeast of China, is home
to the world's tallest bottling plant, which measures fifty-seven stories. Future success
for Coca-Cola in China depends on its main competitor Pepsi Co. Coca-Cola's key strategy
for success in the world is investing in infrastructure. Coca-Cola invests billions of
dollars to consolidate and develop new markets. The Coca-Cola system has successfully
applied a simple formula on a global scale: Provide a moment of pleasure of refreshment
for a small amount of money-hundreds of millions of times a day (Chronicle of CC, 22). 
The Coca-Cola Company's overseas distribution is an around-the-clock operation to get the
consumers their product. Coca-Cola in Europe has different types of delivery systems to
their customers. International warehouses use larger truckloads for bulk orders to
distribute to customer warehouses. They also use smaller trucks for local deliveries.
Also, in North America and Belgium, drivers use side-loaded trucks to deliver 400 or more
cases of product each day. In other European locations, delivery is typically handled by
third-party distributors (Facts 1999, 11). Coca-Cola's target areas are grocery stores,
recreational areas, shops, malls and sporting events. The mass of distribution to cus
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