* Coca-Cola needs to reverse the poor leadership and managerial decisions of the 2000s in order to reach its “20/20 vision” of doubling Coca-Cola’s system’s revenues by 2020. * The acquisition of CCE allows Coke to control most of its distribution channels, yet there are still loose ends for Coke to tie up * The still drink industry is growing rapidly in North America, and Coke needs to use its acquisitions in the field to position itself for a more even split between still and carbonated beverages
* 1886: Coca-Cola was first invented by John Pemberton by combining specialty syrup with carbonated water * 1916: Coke issued an IPO, and the Woodruff family took and maintained control for six decades * 1982: Diet Coke was launched, eventually becoming the #2 selling soft drink (ahead of Pepsi) * 2008: Kent became the CEO of Coca-Cola
* 2010: Coca-Cola acquires Coca-Cola Enterprises (CCE) for $12 billion, Coke’s largest franchised bottler (largest acquisition in company history) External Analysis
* The still beverage industry is becoming more and more important to Coke’s sustainability and 20/20 plan, with the newest business model projecting 45% of total revenue for Coke to come from still drinks by 2020 * Growth of demographics in North America supporting growth of Coca-Cola (all projections of 2020) * $34,000 U.S. personal expenditure per capita
* U.S. teen population rising to 31 million
* 300 urban Americans, the third highest incremental growth rate expected globally * Expand operations outside of North America, focusing on Latin America due to its high operating margins and volume growth * Existence and growth of competitors Pepsi and DPS ensure that industry is consolidated and all operating decisions are crucial, with mistakes leading to immediate market share loss * Evolving customer leading to increased skepticism of Coca-Cola’s...