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GOTA IIPM

INDIAN INSTITUTE OF PLANNING AND MANAGEMENT NEW DELHI

GLOBAL OPPORTUNITY AND THREAT ANALYSIS REPORT BELGIUM & FRANCE 24TH FEB- 8TH MARCH 2010

SUBMITTED BY:Arpit Makhija Mob:9711844355 Email:arpitmakhija1986@gmail.com Sec&Batch:F4&F/W08-10

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SUBMITTED TO: Ms. Shuchi Sharma

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PART-I THE PRELIMINARIES

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GOTA PROGRAM DETAILS

These are the places and companies we have visited during our trip to Belgium.

S. NO.

ORGANIZATI ON European Commission European Parliament

WEB ADDRESS

TOPIC Basic overview & functioning of EC Operations of the European Parliament Understanding the logistics & functioning of 2nd largest port of Europe Company Visit

Wikipedia

www.europarl.europa.eu

Port of Antwerp

www.portofantwerp.be

Coca Cola ( Bottling Plant) Palm Breweries

www.thecocacolacompany.com/ www.palmbreweries.com

Company Visit

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ABSTRACT
The Indian Institute Of Planning and Management pioneered the innovative endeavor called the Global Opportunity and Threat Analysis in 1997. The primary objective of the program is to expose the students to the various functional aspects of global corporations by creating an ongoing engagement at various levels with these global corporations and institutions. We got an opportunity to visit Belgium for 13 days starting from 24th February, 2010 to 8th March, 2010.

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BELGIUM OVERVIEW

The name Belgium is derived from Gallia Belgica, a Roman province in the north most part of Gaul that was inhabitated by the Belgae, a mix of Celtic and Germanic people. The Kingdom of Belgium is a country in northwest Europe bordered by the Netherlands (450 km), Germany (167 km), Luxembourg (148 km), and France (620 km), with a short coastline on the North Sea. It covers an area of 30,528 km2 (11,787 square miles) and has a population of about 10.5 million. It is the founding member of the European Union and hosts its headquarters, as well as those of other major international organizations, including NATO. Belgium is a federal state divided into three regions: Dutch-speaking Flanders in the north, Wallonia in the south where the language is French, and Brussels, the bilingual capital, where French and Dutch share official status. There is also a small German-speaking minority of some 70 000 in the eastern part of the country. Belgium is famous for its chocolates, which are appreciated the world over. Its favorite dish is mussels and chips (French fries) which, according to legend, are a Belgian invention.

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PROFILE OF COCA COLA COMAPNY Established: 1886


Ranking: We own 4 of the world's top 5 nonalcoholic sparkling beverage brands Associates: 90,500 worldwide Operational Reach: 200+ countries Consumer

Servings (per day): 1.5 billion

Beverage Variety: more than 2,800 products

Originally intended as a patent medicine when it was invented in the late 19th century by John Pemberton, Coca-Cola was bought out by businessman Asa Griggs Candler, whose marketing tactics led Coke to its dominance of the world soft drink market throughout the 20th century. Coca-Cola is a carbonated soft drink sold in stores, restaurants and vending machines in more than 200 countries. It is produced by The Coca-Cola Company in Atlanta, Georgia and is often referred to simply as Coke or (in European and American countries) as Cola or Pop. The company produces concentrate, which is then sold to various licensed Coca-Cola bottlers throughout the world. The bottlers, who hold territorially exclusive contracts with the company, produce finished product in cans and bottles from the concentrate in combination with filtered water and sweeteners. The bottlers then sell, distribute and merchandise Coca-Cola in cans and bottles to retail stores and vending machines. Such bottlers include Coca-Cola Enterprises, which is the largest single Coca-Cola bottler in North America and Western Europe. The CocaCola Company also sells concentrate for fountain sales to major restaurants and food service distributors. The Coca-Cola Company has, on occasion, introduced other cola drinks under the Coke brand name. The most common of these is Diet Coke, which has become a major diet cola. However, others exist, including Caffeine-Free Coca-Cola, Diet Coke Caffeine-Free, Cherry Coke, Coca-Cola Zero, Vanilla Coke and special editions with lemon and with lime and even with coffee.

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KEY LEARNINGS The delivery of this GOTA program was through industrial visit conducted by Ms. Els Dalle. It helped the students to develop a global perspective of management theories, principles and practice. The idea of this program was also to make students aware of how a truly global economy works and also to bring a fresh outlook to life conducive to entrepreneurial learning. The coca-cola company visit has made us learn many innovative things which can be very productive and useful in our day to day life. Coca-cola industry delivered us the basic way to learn administration, taught the way to conduct management and further more they enhanced our basic knowledge towards global market, global infrastructure, and made us familiar with the management procedures done at international level. The whole approach was to make us aware of the production and processing section, the packaging section, the quality control section, and the marketing section which enabled us to increase our knowledge about the coca-cola plant. The coca-cola plant gives importance to the visitors who come and visit the firm. For this they have a European visiting centre inside the industry which foster to the needs of the visitors and make them familiar with the whole industry by solving their queries and resolving their problem. Coca-cola is an extremely recognizable company and popularity is its major strengths and for gaining popularity it works on every vital aspect to hold its economy on the huge front. Coca-cola deals with massive money all the year and like all the businesses which are running across the globe coke too itself has various ups and downs financially, but it does well in this area. Customer loyalty plays a key role in their functioning and enables them to retain their customers as well. All what they promise they ensure to deliver well into the hands of the
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customers. Coke offers online resources for service providers for which they have their website which the consumers can access and do their needful.

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TABLE OF CONTENTS 1. Introduction to the organization:


Vision13 Mission..13 Values14 History...15 Product Portfolio....15 Management Summary......19

2. Report of data collection:


PEST.21 SWOT...25 Business Model.29 Financial Performance30 Challenges and Risks33 Key Success Factors..35 Competitive Analysis....36 Strategies Adopted38

3. Key findings and Recommendations..39 4. Conclusion...42

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PART-II THE CONTENT

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INTRODUCTION TO THE ORGANIZATION

Type Founded Headquarters Area served Industry

Public (NYSE: KO) 1892 by Asa Griggs Candler Atlanta, Georgia, USA Worldwide Beverage Coca-Cola Carbonated soft drinks Water Other Non-alcoholic beverages USD 141.463 Billion (2008) USD 28.857 Billion (2007) [1] USD 7.252 Billion (2007) [2] USD 5.981 Billion (2007) [3] USD 43.269 Billion (2007) USD 21.744 Billion (2007) 90,500 (2008) www.TheCoca-Cola Company.com

Products

Market cap Revenue Operating income Net income Total assets Total equity Employees Website

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The Coca-Cola Company has long been a worldwide business. Their first soda fountain sales to Canada and Mexico were recorded in 1897. The first international bottler -- in Panama -- was established in 1906. They entered China in 1927 and their 100th country -- Sierra Leone -- in 1957. Today, the Coca-Cola Company is the largest beverage company with the most extensive distribution system in the world. The Coca-Cola Company has pledged to work towards the goal of replacing every drop of water they use in their beverages and production. Approximately 85 percent of their global unit case volume is delivered in 100 percent recyclable materials: PET, plastic, aluminum, glass and steel. The remaining 15 percent is largely delivered through highly efficient bulk package systems. They are committed to offering their consumers a broad and balanced portfolio of beverages to meet their tastes and needs. They offer more than 2,600 sparkling and still beverage products, including juices and juice drinks, sports drinks, energy drinks, teas, coffees and water. One of their great strengths is their ability to conduct business on a worldwide scale while maintaining a local approach. At the heart of this approach is their bottling system. Before any of their 2,600 beverage products is consumed by anybody around the world, it has to be produced, packaged and distributed. Since more than 1.4 billion servings of their products are enjoyed every day, their bottling system has to be the best. Their business opportunities are enormous and their commitment to their consumers and communities is great. The bottling partners are local companies so they are rooted in their communities, thinking and acting locally. They are employers, purchasers of local goods and services, good neighbors, and, of course, producers of the world's most popular beverages. It's a big job, and sometimes it's done quite creatively. In Indonesia, for instance, boats transport Coca-Cola and their other brands between the many hundreds of islands that make up that nation. In the Amazon, where the main road is often the river itself, water-borne distribution is also common. In some of the higher elevations of the Andes, Coca-Cola is sometimes transported by four-legged power. Across much of Africa, bottlers deliver to thousands of family-run kiosks and home-based stores on which local economies depend.

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VISION Coca-Cola vision guides every aspect of their business by describing what they need to accomplish in order to continue achieving sustainable growth. Their vision spans across five
areas:

People: Being a great place to work where people are inspired to be the best they can Portfolio: Bringing to the world a portfolio of quality beverage brands that anticipate Partners: Nurturing a winning network of customers and suppliers, together they Planet: Being a responsible citizen that makes a difference by helping build and Profit: Maximizing long-term return to shareowners while being mindful of their

be.

and satisfy people's desires and needs.

create mutual, enduring value.

support sustainable communities.

overall responsibilities.

MISSION Coca-Cola mission declares their purpose as a company. It serves as the standard against which they weigh their actions and decisions. It is the foundation of their Manifesto:

To refresh the world in body, mind and spirit. To inspire moments of optimism through their brands and their actions. To create value and make a difference everywhere they engage.

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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 our brands Quality: What we do, we do well

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HISTORY The Coca-Cola Company was originally established as the J. S. Pemberton Medicine Company, a co-partnership between Dr. John Stith Pemberton and Ed Holland. The company was formed to sell three main products: Pemberton's French Wine of Cola (later known as Coca-Cola), Pemberton's Indian Queen Hair Dye, and Pemberton's Globe Flower Cough Syrup. In 1884, the company became a stock company and the name was changed to Pemberton Chemical Company. The new president was D. D. Doe while Ed Holland became the new VicePresident. Pemberton stayed on as the superintendent. The company's factory was located at No. 107, Marietta St. Three years later, the company was again changed to Pemberton Medicine Company, another co-partnership, this time between Pemberton, A. O. Murphy, E. H. Bloodworth, and J. C. Mayfield. Finally in October of 1888, the company received a charter with an authorized capital of $50,000.The charter became official on January 15, 1889. By this time, the company had expanded their offerings to include Pemberton's Orange and Lemon Elixir. PRODUCT PORTFOLIO Coca-Cola Enterprises' extensive brand portfolio exceeds 200 products and includes the best, most popular beverage brands in the world, as well as exciting new innovations introduced regularly. In addition their portfolio encompasses a broad range of regular and zero calorie beverage categories including energy drinks, still and sparkling waters, juices, sports drinks, fruit drinks, coffee-based beverages and teas. In 2007 they expanded their still portfolio by beginning distribution of glaceau brands smartwater, vitaminwater, and vitamin energy, as well as FUZE and Campbell V8 products in key channels. In Europe, they expanded their successful launch of Coca-Cola Zero, a new zero calorie cola product with a taste profile very similar to regular Coca-Cola, to each of their territories. Top Five European Brands: 1. Coca-Cola 2. Diet Coke/Coke Light/ Coca-Cola Zero 3. Fanta 4. Schweppes 5. Sprite

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NAME Coca-Cola

LAUNCHED 1886

DISCONTINUED

NOTES

PICTURE

CaffeineFree Coca-Cola Coca-Cola Cherry

1984

1985

Coca-Cola with Lemon

2001

2005

Still available in: American Samoa, Austria, Australia, Belgium, Brazil, China, Denmark, Federation of Bosnia and Herzegovina, Finland, France, Germany, Hong Kong, Iceland, Korea, Luxembourg, Macau, Malaysia, Mongolia, Netherlands, Norway, Reunion, Romania, Singapore, South Africa, Spain, Switzerland, Taiwan, Tunisia, United Kingdom, United States, and West Bank-Gaza

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Coca-Cola Vanilla

2002 & 2007

2005

Still available in: Austria, Australia, China, Germany, Hong Kong, South Africa, New Zealand (600ml and 350 ml only) Malaysia, Sweden (Imported) and Russia It was reintroduced in June

Coca-Cola C2

2004

2007

2007 by popular demand Was only available in Japan, Canada, States and the United

Coca-Cola with Lime

2005

Still available in Belgium, Netherlands, Singapore

Coca-Cola Raspberry Coca-Cola Zero Coca-Cola M5

June 2005

End of 2005

Was only available in New Zealand.

2005

2005

Only available in Federation of Bosnia and Herzegovina, Germany, Italy, Spain, Mexico and Brazil Was replaced by Vanilla Coke in June 2007

Coca-Cola Black Cherry Vanilla

2006

Middle of 2007

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Coca-Cola Blk

2006

Beginning of 2008

Only available in the United States, Czech Republic, Bosnia France, Republic, and Canada, Slovak of

Federation

Herzegovina,

Bulgaria and Lithuania Coca-Cola Citra 2006 Only available in Federation of Bosnia and Herzegovina, New Zealand and Japan. Coca-Cola Light Sango Coca-Cola Orange 2007 2006 Only available in France and Belgium. Only available in the United Kingdom and Gibraltar

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MANAGEMENT OF COCA COLA The Coca-Cola brand is one of the worlds most popular and recognizable. Therefore, CocaCola management strategy is geared towards the continued success of its famous brand. Warren Buffett, a key investor in the company, believes that 'no sensible observer... questions that Coca-Cola will dominate worldwide for an investment lifetime. Indeed, the dominance will probably strengthen. However, despite a strong brand, management of change has been necessary at Coca-Cola. The corporate culture involving a super-brand like Coke can result in managers becoming overconfident in the product as well as the processes and procedures that have built up throughout the company over time. The danger is that the public will simply get bored with the brand. Therefore, both Coca-Cola management and Coca-Cola strategy have undergone radical changes over the years. When former chief executive Robert Goizueta was at the helm, he demonstrated that the company was earning less than its cost of capital. Therefore, he led CocaCola through great change in management structure. By adjusting the way the businesses and managers were assessed and by radically reforming key relationships with Coca-Cola bottlers, Goizueta oversaw a spectacular improvement in performance. However, over the years the Coca-Cola brand strategy has not always proved successful. The attempted relaunch of the core product as New Coke in the 1980s was a dangerous risk and proved almost calamitous, requiring a complete rethink in Coca-Cola marketing strategy. The management style that Coca-Cola uses for making its employees more efficient is by motivation which plays as the key role behind their success. The success that the management team has in motivating its employees to meet their objectives is based on the management style they adopt. There are three main management styles; autocratic, democratic and a laissez-faire style. The North London Coca-Cola branch has an ethos or culture that is run in a laissez-faire style, meaning hands off approach. If the workers are meeting their KBI, Key Business Indicators, then the managers and directors of the company take this relaxed style of coordinating their business. They have a vision to refresh everyone everyday and values to take pride in their work, to be honest, fair and determined to win and have a passion for action. With the same spirited investment as

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the world's premier marketer and beverage industry leader for more than 118 years, Coca-Cola are focused on strategic workplace programs that help assure their success. Accountability & Reporting: Environmental management is a key part of their business planning and is fully integrated into their corporate governance structure. To ensure that they have management systems required for sound environmental stewardship, we have established:

An environmental management organization with direct accountabilities Standards and audits to maintain compliance and improve performance Engagement programs with bottling partners, business partners and external

stakeholders

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REPORT OF DATA COLLECTION AND ANALYSIS


PEST ANALYSIS
The PEST analysis examines changes in a marketplace caused by Political, Economical, Social and Technological factors. P: P stands for political change from one party to another in control. The political analysis for Coca-Cola has been discussed as follows: Political Analysis for Coca-Cola Non-alcoholic beverages fall within the food category under the FDA. The government plays a role within the operation of manufacturing these products in terms of regulations. There are potential fines set by the government on companies if they do not meet a standard of laws. The following are some of the factors that could cause Coca-Cola company's actual results to differ materially from the expected results described in their underlying company's forward statement: Changes in laws and regulations, including changes in accounting standards, taxation requirements, (including tax rate changes, new tax laws and revised tax law interpretations) and environmental laws in domestic or foreign jurisdictions. Changes in the non-alcoholic business environment. These include, without limitation, competitive product and pricing pressures and their ability to gain or maintain share of sales in the global market as a result of action by competitors. Political conditions, especially in international markets, including civil unrest, government changes and restrictions on the ability to transfer capital across borders. Their ability to penetrate developing and emerging markets, which also depends on economic and political conditions, and how well they are able to acquire or form strategic business alliances with local bottlers and make necessary infrastructure enhancements to production facilities, distribution networks, sales equipment and technology.

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E: Stands for economic change, for example a recession creating increased activity at the lower ends of product price ranges. Rate of interest rises depressing business and causing redundancies and lower spending levels. Economic Analysis for Coca-Cola Last year the U.S. economy was strong and nearly every part of it was growing and doing well. However, things changed. Most economists loosely define a recession as two consecutive quarters of contraction, or negative GDP growth .However, because of aggressive action by the Federal Reserve and Congress it will be short and mild. The economy will return to sustained, positive growth in the first half of 2002.

Future Outlook
The Federal Reserve is doing all that it can help the economy recover. They have cut the interest rate ten times this year. The rate now lies at a 40-year low of 2%. Lowering the interest rates will ultimately excite consumer demand in the economy. Companies will expand and increase use of debt as a result of the low borrowing rates. Coca-Cola can borrow money for investing in other products as the interest rates are low. It can use the borrowing on research of new products or technology. As researching for new products would cost less the Coca-Cola Company will sell its products for less and the people will spend as they would get cheap products from Coca-cola. Before the attacks on September 11, 2001, the United States was starting to see the economy recover slightly and it is only just recently that they achieved the economic levels. Consumers are now resuming their normal habits, going to the malls, car shopping, and eating out at restaurants. However, many are still handling their money cautiously. They believe that with lower inflation still to come, consumers will recover their confidence over the next year. The non-alcoholic beverage industry has high sales in countries outside the U.S. According to the Standard and Poor's Industry surveys, "For major soft drink companies, there has been economic improvement in many major international markets, such as Japan, Brazil, and Germany." These markets will continue to play a major role in the success and stable growth for a majority of the non-alcoholic beverage industry. S: Social change involves changing attitudes and lifestyles. The increasing number of women going out to work, for example, led to the need for time-saving products for the home.
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Social Analysis for Coca-Cola Many U.S. citizens are practicing healthier lifestyles. This has affected the non-alcoholic beverage industry in that many are switching to bottled water and diet colas instead of beer and other alcoholic beverages. Also, time management has increased and is at approximately 43% of all households. The need for bottled water and other more convenient and healthy products are in important in the average day-to-day life. Consumers from the ages of 37 to 55 are also increasingly concerned with nutrition. There is a large population of the age range known as the baby boomers. Since many are reaching an older age in life they are becoming more concerned with increasing their longevity. This will continue to affect the non-alcoholic beverage industry by increasing the demand overall and in the healthier beverages. T: Technological change - creates opportunities for new products and product improvements and of course new marketing techniques- the Internet, e-commerce. Technological Analysis for Coca-Cola Some factors that cause company's actual results to differ materially from the expected results are as follows: The effectiveness of company's advertising, marketing and promotional programs. The new technology of internet and television which use special effects for advertising through media. They make some products look attractive. This helps in selling of the products. This advertising makes the product attractive. This technology is being used in media to sell their products. Introduction of cans and plastic bottles have increased sales for Coca-Cola as these are easier to carry and you can bin them once they are used. As the technology is getting advanced there has been introduction of new machineries all the time. Due to introduction of this machineries the production of the Coca-Cola company has increased tremendously then it was few years ago CCE has six factories in Britain which use the most stat-of the-art drinks technology to ensure top product quality and speedy delivery. Europe's largest soft drinks factory was opened by CCE in Wakefield, Yorkshire in 1990. The Wakefield factory has the technology to produce cans of Coca-Cola faster than bullets from a machine gun.
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SWOT ANALYSIS
SWOT stands for Strengths Weakness Opportunities Threats , SWOT analysis is a technique much used in many general management as well as marketing scenarios. SWOT consists of examining the current activities of the organization- its Strengths and Weakness- and then using this and external research data to set out the Opportunities and Threats that exist. Strengths -popularity -branding obvious and easily recognized -A lot of finance -customer loyalty -International Trade Threats -changing health-consciousness attitude -legal issues -Health ministers -competition (Pepsi) Weakness -lack of popularity of many Coca Colas brands -Most unknown and rarely seen -result of low profile or nonexistent advertising -health issues Opportunities -many successful brands to pursue -advertise its less popular products -buy out competition. -More Brand recognition

Strengths-

Coca Cola is an extremely recognizable company. Popularity is one of its superior strengths that is virtually incomparable. Coca Cola is known very well worldwide. It's branding is obvious and easily recognized. Things like, logos and promos shown on t-shirts, hats, and collectible memorabilia. Without a doubt, no beverage company compares to Coca Cola's social popularity status. Some people buy coke, not only because of its taste, but because it is widely accepted and they feel like they are part of something so big and unifying. At the other end of the spectrum, certain individuals choose not to drink coke, based solely on rebelling from the world's idea that coke is something of such great power. Overwhelming is the best word to describe Coca Cola's popularity. It is scary to think that its popularity has been constantly growing over the years and the possibility that there is still room to grow. If you speak the words Coca Cola, it would definitely be recognized all around the world. Money is another thing that is strength of the company. Coca Cola deals with massive amounts of money all year. Like all businesses, they have had their ups and downs financially, but they have done well in this compartment and will continue to do well and improve. The money they are
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earning is substantially better than most beverage companies, and with that money, they put back into their own company so that they can improve. Another strength that is very important to Coca Cola is customer loyalty. The 80/20 rule comes into effect in this situation. Eighty percent of their profit comes from 20% of their loyal customers. Many people/families are extremely loyal to Coca Cola. It would not be rare to constantly find bottles and cases of a product such as coke in a house. It seems that some people would drink coke religiously like some people would drink water and milk. This is an improbable feat. Customers will continually purchase these products, and will probably do so for a very long time. If two parents were avid Coca Cola drinkers, this will be passed down do their children as they grow loyal to the company. With Coca Colas ability to sell their product all over the world, customers will continue to buy what they know and what they likeCoca Cola products.

Weaknesses-

Coca Cola is a very successful company, with limited weaknesses. However they do have a variety of weaknesses that need to be addressed if they want to rise to the next level. Word of mouth is probably a strength and weakness of every company. While many people have good things to say, there are many individuals who are against Coca Cola as a company, and the products in which they produce. Word of mouth unfortunately is something that is very hard to control. While people will have their opinions, you have to try to sway their negative views. If bad comments and views are put out to people who have yet to try Coca Cola products, then that could produce a lost customer which shows why word of mouth is a weakness. Another aspect that could be viewed as a weakness is the lack of popularity of many of Coca Colas drinks. Many drinks that they produce are extremely popular such as Coke and Sprite but this company has approximately 400 different drink types. Most are unknown and rarely seen for available purchase. These drinks do not probably taste bad, but are rather a result of low profile or nonexistent advertising. This is a weakness that needs to be looked at when analyzing their company. Another weakness that has been greatly publicized is the health issues that surround some of their products. It is known that a popular product like coke is not very beneficial to your body and your health. With todays constant shift to health products, some products could possibly loose customers. This new focus on weight and health could be a problem for the product that are labeled detrimental to your health.

Opportunities-

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Coca Cola has a few opportunities in its business. It has many successful brands that it should continue to exploit and pursue. Coca Cola also has the opportunity to advertise its less popular products. With a large income it has the available money to put some of these other beverages on the market. This could be very beneficial to the company if they could start selling these other products to the same extent that they do with their main products. Another opportunity that we have seen being put to use before is the ability for Coca Cola to buy out their competition. This opportunity rarely presents itself in the world of business. However, with Coca Colas power and success, such a task is not impossible. Coca Cola has bought out a countless number of drink brands. An easy way to turn their profit into your profit is too buy out their company. Even though this may cost a vast amount of money initially, in the long run, if all goes to plan, it results in a large profit. Also, the company will no longer need to worry about this product being part of the competition. Brand recognition is the significant factor affecting Cokes competitive position. Coca Cola is known well throughout 90% of the world population today. Now Coca Cola wants to get there brand name known even better and possibly get closer and closer to 100%. It is an opportunity that most companies will ever dream of, and would be a supreme accomplishment. Coca Cola has an opportunity to continue to widen the gap between them and their competitors.

Threats-

Despite the fact that Coca Cola dominates its market, it still has to deal with many threats. Even though Coca Cola and Pepsi control nearly 40% of the entire beverage market, the changing health-consciousness attitude of the market could have a serious effect on Coca Cola. This definitely needs to be viewed as a dominant threat. In todays world, people are constantly trying to change their eating and drinking habits. This could directly affect the sale of Coca Colas products. Another possible issue is the legal side of things. There are always issues with a company of such supreme wealth and popularity. Somebody is always trying to find fault with the best and take them down. Coca Cola has to be careful with lawsuits. Health minister could also be looked at as a threat. Again, some people may try to exploit the unhealthy side of Coca Colas products and could threaten the status and success of sales. Other threats are of course the competition. Coca Colas main competition being Pepsi, sells a very similar drink. Coca Cola needs to be careful that Pepsi does not grow to be a more successful drink. Other product such as juices, coffee, and milk are threats. These other beverage options could take precedent in some peoples minds over Coca Colas beverages and this could threaten the potential success it presents again.
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BUSINESS MODEL OF COCA COLA


The Coca Cola Company established in 1886, it provides 1.5 billion servings of its products per day with over 2800 different products. In a competitive landscape it has managed to maintain demand of its most mature product coke while constantly bringing newer beverages to market such as "Full Throttle." It is remarkable the beverage industry has convinced consumers to spend money buying bottled water which has become a huge industry. The beverage "Coke" has been around for a long time yet consumers have not grown tired with its taste. In fact The Coca Cola Company in 1985 tried to change the taste and got a negative reaction from consumers. All companies want to retain their customers as well as acquire new customers. In other words grow. While "Coke" is a cash cow throughout the world (it does taste different in China), the Coca Cola Company has done a remarkable job of introducing newer products for growth. Just about every company with any longevity operates to sustain their core products while introducing new products to maintain and grow their revenue. Just as investment banks make varying bets on different types of businesses. A venture capital investment carries a much higher risk and return than an investment bank whose advisory services guide an established business to divest, acquire, merge, etc. A key part of strategy for any company is to be able to adapt the mix of established products with new products. You cannot starve off one for the other or your competition will take advantage. A plan that can absorb unanticipated changes, conditions and is willing to stay the course only draws investors appeal.

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FINANCIAL PERFORMANCE
Critical Accounting Policies and Estimates: Coca-colas consolidated financial statements are prepared in accordance with generally accepted accounting principles which require management to make estimates, judgments and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. They believe that their most critical accounting policies and estimates relate to the followings: ?Basis of Presentation and Consolidation ?Recoverability of Non-Concurrent Assets ?Revenue Recognition ?Income Taxes ?Contingencies Management has discussed the development, selection and disclosure of critical accounting policies and estimates with the Audit Committee of the Company's Board of Directors. While their estimates and assumptions are based on their knowledge of current events and actions they may undertake in the future, actual results may ultimately differ from these estimates and assumptions. Basis of Presentation and Consolidation: Company consolidates all entities which are controlled by ownership of a majority voting interest as well as variable interest entities for which Company is the primary beneficiary. Their judgment in determining if they are the primary beneficiary of the variable interest entities includes assessing their Company's level of involvement in setting up the entity, determining if the activities of the entity are substantially conducted on behalf of their Company, determining whether the Company provides more than half of the subordinated financial support to the entity, and determining if they absorb the majority of the entity's expected losses or returns.

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They use the equity method to account for investments for which they have the ability to exercise significant influence over operating and financial policies of the investee. Their consolidated net income includes their Company's proportionate share of the net income or loss of these companies. Their judgment regarding the level of influence over each equity method investment includes considering key factors such as their ownership interest, representation on the board of directors, participation in policy-making decisions and material intercompany transactions. They use the cost method to account for investments in companies they do not control and for which they do not have the ability to exercise significant influence over operating and financial policies. In accordance with the cost method, these investments are recorded at cost or fair value, as appropriate. They record dividend income when applicable dividends are declared. The Coca-Cola Company Reports Second Quarter and Half Year 2008 Results: The Coca-Cola Company today reported second quarter earnings per share of $0.61, a decrease of 24 percent versus the prior year on a reported basis, and $1.01 after considering items impacting comparability, an increase of 19 percent. Earnings per share for the quarter included a net charge of $0.40 per share primarily related to a non-cash impairment charge at Coca-Cola Enterprises Inc. ("CCE"), an equity investor. Earnings per share for the second quarter of 2007 were $0.80 and included a net charge of $0.05 per share, primarily related to restructuring charges and a non-cash impairment charge at an equity investor. Financial Highlights: Second quarter net operating revenues increased 17 percent. Revenue growth reflected a 3 percent increase in concentrate sales, a 2 percent increase from structural changes primarily resulting from acquisitions of certain bottlers, a 3 percent benefit from pricing and mix and a 9 percent positive currency impact. Operating income in the quarter increased 18 percent on a reported basis and 20 percent after considering items impacting comparability. Items impacting comparability negatively affected second quarter pre-tax operating income by $97 million in 2008 and

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by $48 million in 2007. Currency benefited operating income in the quarter by 11 percent. Year-to-date, the Company repurchased $1.0 billion of its stock and intends to repurchase a total of $1.75 to $2.0 billion of its stock for the full year. The Company is targeting $400 to $500 million in annualized savings from productivity initiatives by year-end 2011 to provide additional flexibility to invest for growth.

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CHALLENGES AND RISKS


Being a global company provides unique opportunities for Coca-Cola Company. Challenges and risks accompany those opportunities. Their management has identified certain challenges and risks that demand the attention of the nonalcoholic beverages segment of the commercial beverages industry and their Company. Of these, four key challenges and risks are discussed below. Obesity and Inactive Lifestyles: Increasing awareness among consumers, public health professionals and government agencies of the potential health problems associated with obesity and inactive lifestyles represents a significant challenge to their industry. They recognize that obesity is a complex public health problem. Their commitment to consumers begins with their broad product line, which includes a wide selection of diet and light beverages, juices and juice drinks, sports drinks and water products. Their commitment also includes adhering to responsible policies in schools and in the marketplace; supporting programs to encourage physical activity and promote nutrition education; and continuously meeting changing consumer needs through beverage innovation, choice and variety. They are committed to playing an appropriate role in helping address this issue in cooperation with governments, educators and consumers through science-based solutions and programs. Water Quality and Quantity: Water quality and quantity is an issue that increasingly requires their Company's attention and collaboration with the nonalcoholic beverages segment of the commercial beverages industry, governments, nongovernmental organizations and communities where they operate. Water is the main ingredient in substantially all of their products. It is also a limited natural resource facing unprecedented challenges from overexploitation, increasing pollution and poor management. Their Company is in an excellent position to share the water-related knowledge they have developed in the communities they serve-water-resource management, water treatment, wastewater treatment systems, and models for working with communities and partners in addressing water and sanitation needs. They are actively engaged in assessing the specific water-related risks that they and many of their bottling partners have faced and have implemented a formal water risk management program. They are working with their global
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partners to develop water sustainability projects. They are actively encouraging improved water efficiency and conservation efforts throughout their system. As demand for water continues to increase around the world, they expect commitment and continued action on their part will be crucial in the successful long-term stewardship of this critical natural resource. Evolving Consumer Preferences: Consumers want more choices. They are impacted by shifting consumer demographics and needs, on-the-go lifestyles, aging populations in developed markets and consumers who are empowered with more information than ever. They are committed to generating new avenues for growth through their core brands with a focus on diet and light products. They are also committed to continuing to expand the variety of choices they provide to consumers to meet their needs, desires and lifestyle choices. Increased Competition and Capabilities in the Marketplace: Their Company is facing strong competition from some well-established global companies and many local participants. They must continue to selectively expand into other profitable segments of the nonalcoholic beverages segment of the commercial beverages industry and strengthen their capabilities in marketing and innovation in order to maintain their brand loyalty and market share. All four of these challenges and risks-obesity and inactive lifestyles, water quality and quantity, evolving consumer preferences, and increased competition and capabilities in the marketplacehave the potential to have a material adverse effect on the nonalcoholic beverages segment of the commercial beverages industry and on their Company; however, they believe their Company is well positioned to appropriately address these challenges and risks.

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KEY SUCCESS FACTORS


There are many factors contributing to Coca-Cola's success, however, their key success factors are Marketing, Innovation, and Globalization. Marketing: Coca-Cola is seen as one of the founding fathers of the modern day marketing model. They were among the pioneers of advertising techniques and styles used to capture an audience. They were also one of the first companies to offer a gimmick with their product, this being a mini yo-yo. It was around 1900 when Coca-Cola began presenting their signature drink as a delicious and refreshing formula. This slogan has been repeated for over the last 100 years selling Coke all over the world. Through its intense marketing campaigns, Coke has developed an image that is reflected in what we think of when we buy Coke and what we associate with drinking Coke. This image has been subconsciously installed in our brain by the advertising campaigns Innovations: Coca-Cola has been able to survive and grow in an ever-changing market because of its ability to systematically innovate and deliver new products. In the late 90s the company, typically showing earnings growth of 15-20% per year, turned in three straight years of falling profits. It was apparent that the market was changing and in order to keep up with these changes, CocaCola had to move from a single core product to a total beverage company through innovations they stood out in the globalised market by meeting the expectations of the consumers demands. Globalization: The Coca-Cola brand is one of the worlds most popular and recognizable. Therefore, CocaCola management strategy is geared towards the continued success of its famous brand. Coca-Cola is a global brand and that is the major advantage for the company. It is the worlds largest beverage company. They operate in more than 200 countries and market more than that show Coca-Cola associated with "good times."

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2,800 products including sparkling drinks and still beverages such as waters, juices and juice drink, teas, coffees, sport drinks and energy drinks.

COMPETITIVE ANALYSIS
Wherever The Coca-Cola Company does business, they strive to be trusted partners and good citizens. They are committed to managing their business with a consistent set of values that represent the highest standards of integrity and excellence. They share these values with their bottlers, making their system stronger. Companys main focus is to satisfy a wide range of consumer demand in order to enhance this Coca-Cola Brand Portfolio offers:

The leading brand in the top three flavor categories (cola, diet-cola, lemon-lime), across all package forms.

A consumer preference advantage over competitive brand portfolios. A significant and growing share advantage over competition. A broad range of leading brands to satisfy consumer needs.

The Coca-Cola Company analyzes consumer trends, explores new brand communications strategies, and tests innovative marketing techniques and measures program performance. Much of this learning is incorporated into brand, channel and customer-specific plans and programs. The result is more profits for the customers as they share their knowledge and insights. The insights they gain are always grounded in better understanding what consumers prefer. The Power of the Coca-Cola Trademark: Consumers recognize and value the Coca-Cola trademark more than any other trademark in the world. It evokes a range of positive and powerful attributes, including trust, quality, good times and refreshment.

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In the U.S. Equity Study, 1998, Coke best-met or exceeded consumer expectations of the "ideal" soft drink. Likewise, consumers have the strongest loyalty to Coca-Cola versus any other soft drink brand. At The Coca-Cola Company, their commitment is to provide top-quality products to the marketplace and this is their highest business objective and their enduring obligation. Keeping their quality promise more than a billion times a day requires consistent execution -- by them, their bottling partners, their distributors and their retailers. Keeping their promise also requires the Coca-Cola system to keep pace with new regulations, industry best practices, marketplace conditions and ever-increasing customer and consumer expectations. They ensure the quality and safety of our beverages through The Coca-Cola Quality System - Evolution 3 (the third iteration) (TCCQS), their integrated approach to managing quality, environment, health and safety. By periodically evolving their quality management system, they ensure that TCCQS:

Embodies the most up-to-date, stringent manufacturing practices because Coca-Cola is Focuses on customer and consumer satisfaction because Coca-Cola is customer and Provides a framework for safety and environmental stewardship ... because Coca-Cola

a symbol of quality.

consumer satisfaction.

is a responsible citizen of the world. DiversityInc: The Coca-Cola Company came in at No. 4 on The 2007 DiversityInc Top 50 Companies for Diversity list and performed well in two DiversityInc specialty categories -Top 10 Companies for Recruitment & Retention (No. 5) and Top 10 Companies for AsianAmericans (No. 6). A total of 317 companies competed for a spot, a 100 percent increase in corporate participation in the Top 50 competition over the last three years. Now in its seventh year, The DiversityInc Top 50 Companies for Diversity list is determined solely from a comprehensive survey of diversity management that measures CEO commitment, human capital, corporate communications and supplier diversity.

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STRATEGIES ADOPTED BY COCA COLA


The Coca-Cola Company makes significant marketing expenditures in support of their brands, including expenditures for advertising, sponsorship fees and special promotional events. As part of their marketing activities, they at their discretion provide retailers and distributors with promotions and point-of-sale displays; their bottling partners with advertising support and funds designated for the purchase of cold-drink equipment; and their consumers with coupons, discounts and promotional incentives. These marketing expenditures help to enhance awareness of and increase consumer preference for their brands. They believe that greater awareness and preference promote long-term growth in unit case volume, per capita consumption and their share of worldwide non-alcoholic beverage sales. They have five strategic priorities designed to create long-term sustainable growth for their Company and the Coca-Cola system and value for their shareowners. These strategic priorities are growing sparkling beverage leadership; rapidly growing still beverages; leveraging a balanced geographic portfolio; accelerating the innovation pipeline; and strengthening CocaCola system capability. To enable the entire Coca-Cola system so that they can deliver on these strategic priorities, they must further enhance their core capabilities of consumer marketing; commercial leadership; and franchise leadership. Marketing investments are designed to enhance consumer awareness and increase consumer preference for their brands. This produces long-term growth in unit case volume, per capita consumption and their share of worldwide nonalcoholic beverage sales. They heighten consumer awareness of and product appeal for their brands using integrated marketing programs. Through their relationships with their bottling partners and those who sell their products in the marketplace, they create and implement marketing programs both globally and locally. In developing a strategy for a Company brand, they conduct product and packaging research, establish brand positioning, develop precise consumer communications and solicit consumer feedback. Their integrated global and local marketing programs include activities such as advertising, point-of-sale merchandising and sales promotions.

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KEY FINDINGS, LEARNINGS AND RECOMMENDATIONS


Our visit to coca-cola plant has made us learn many innovative things which can be very productive and useful in our day to day life. Coca-cola industry delivered us the basic way to learn administration, taught the way to conduct management and further more they enhanced our basic knowledge towards global market, global infrastructure, and made us familiar with the management procedures done at international level. The whole approach was to make us aware of the production and processing section, the packaging section, the quality control section, and the marketing section which enabled us to increase our knowledge about the coca-cola plant. The way the coca-cola plant conducted their administration throughout had been the most beneficiary key learnings to all of us. The Coca-Cola Company makes it a priority to hire talented, knowledgeable, and well-trained professionals with the expertise and hands-on skills to help plan soft drink sales growth. The account managers listen to the needs of the consumers by partnering with the customers to develop and implement comprehensive soft drink programs individually tailored for their business. This way they will identify opportunities for profitable beverage growth. As employee satisfaction plays a key role in providing a positive guest experience, generating repeat traffic and increasing revenues, coca-cola tracks employee satisfaction by taking their pulse...with EMPULSE and improve performance by obtaining data that can help foster a work environment conducive to employee excellence and retention. Furthermore, they select Contact Us" below and choose the "CREW Solutions" category, complete the form provided and we will contact you help them know the essential needs of the consumers. The coca-cola plant gives importance to the visitors who come and visit the firm. For this they have a European visiting centre inside the industry which foster to the needs of the visitors and make them familiar with the whole industry by solving their queries and resolving their problem. Coca-cola is an extremely recognizable company and popularity is its major strengths and for gaining popularity it works on every vital aspect to hold its economy on the huge front. Coca-cola deals with massive money all the year and like all the businesses which are running across the globe coke too itself has various ups and downs financially, but it does well in this area. Customer loyalty plays a key role in their functioning and enables them to retain their customers as well. All what they promise they ensure to deliver well into the hands of the
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customers. Coke offers online resources for service providers for which they have their website which the consumers can access and do their needful. Coca-cola firmly believes in diversification and globalizing their brand. Coca-cola stands at the 4th position on the 2007 diversityinc. The DiversityInc Top 50 Companies for Diversity list is determined solely from a comprehensive survey of diversity management that measures CEO commitment, human capital, corporate communications and supplier diversity. For the second straight year(2007) the nation's largest lesbian and gay rights organization, The Human Rights Campaign (HRC), has given The Coca-Cola Company a 100 percent rating for its workplace policies for gay, lesbian, bisexual and transgender (GLBT) associates. The HRC's Corporate Equality Index measures the extent to which employers promote workplace fairness for their GLBT employees, measuring factors like non-discrimination policies, diversity training and benefits. The Company also ranked No. 17 on Hispanic Business magazine's "Diversity Elite 60. According to Hispanic Business, companies are determined by more than 30 variables that measure companies' commitments to Hispanic hiring, promotion, marketing, philanthropy and supplier diversity and coke was successful in getting its rank. The Coca-Cola Company made Essence magazine's 2007 list of the top 25 employers for African-American women. Through the whole study we learnt that diversification is an important factor for every organization to run. The coca-cola company endures itself into various segments which enables it to integrate as a team and build coke as the best brand. For reaching up to this level coke had to undergo certain stages to compete with the surrounding competitors. We found that the company had a disciplined workforce and every employee of the company was committed to give their best initiatives and loyalty towards the company. Furthermore the company taught us an essential factor that is the time management which is the driving force behind every successful organization.Time is money as quoted by most of the intellectuals. Coke too believes in it and therefore it truly believes in doing things at the proper time. Coke ensures that its delivery and purchase timings are properly organized, The HR and the CEO of the company makes a priority to check that things are done in well planned order and at the right timings. Few recommendations that we would like to highlight on the whole is the versatility in language. Belgium being an European country have a mixture of Dutch and Flemish people ,and people ought to speak Dutch more than English which is the most common language and is widely spoken and understood around the globe, so for English speaking people, it becomes a problem to communicate well with these people. And secondly coke needs to give more
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attention to their core product coke instead of their other products which are launched every year. In regard to the Indian market, the strategies which Indian market follows are entirely different and contradicting in comparison to the international market. The Indian market pays more attention towards their marketing and sales segment instead of giving the same attention towards the administration department of the company which on the whole becomes a failure to the Indian market. Therefore Indian market should implement the policies and strategies adopted by the international organization to increase the growth and development of the country.

CONCLUSION

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Our aforesaid visit to this wonderful manufacturing plant of Coca- Cola is not only found remembrance but a valuable asset for us which shall help us in the future planning of the project which we may undertake in the future. We found this company having a much disciplined workforce where every employee was discharging his/her duty with full dedication and devotion expressing his/her loyalty towards the company. Every employee was committed to do the best for his/her company and to do the best of his/her capabilities. So this tells us that an organization must have a disciplined workforce along with full devotion towards the company. The HR of the company appears to be of high standards. The inner view of the manufacturing plant was not only attractive but the plant was designed in a very systematic manner where every machine was placed in the appropriate order according to the necessity of the work or use thus, making the process run smoothly. So as a whole GOTA program was an effective one in every possible manner that helped us to learn more and more globally.

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PART-III REFERENCE

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BIBLIOGRAPHY

D Andriessen - Journey Of Intellectual Capital, 2001 JB Barney - Strategic Human Resource Management, 1999 T Levitt - Strategy: Critical Perspectives on Business and Management, 2005 WL Shanklin, DA Griffith - Business Horizons, 1996 V Kadiyali, NJ Vilcassim, PK Chintagunta - Journal of Business, 1996 - UChicago Press

V Johnson, SC Peppas - Corporate Communications: An International Journal www.coca-cola.com www.oppapers.com/topics/Coca-Cola-Competitive-Advantage www.ibscdc.org/Case%20Studies/Abstracts whereiszemoola.blogspot.com/2006/02/buffett-and-coca-cola.html www.marketresearch.com/product www.cheathouse.com/search/search.php?p_query=coca%20cola%20swot www.termpaperslab.com/term-papers/108306.html

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