Coca Cola Business Strategy

Topics: Coca-Cola, The Coca-Cola Company, Diet Coke Pages: 7 (2509 words) Published: February 19, 2009
Coca-cola INTRO
There are many factors, internal as well as external that impact the planning function of management within an organization, and Coca-Cola is no exception. More than a billion times every day, thirsty people around the world reach for Coca-Cola products for refreshment. Coca-Cola is the most popular and biggest-selling soft drink in history, as well as the best-known product in the world. The Coca-Cola franchise covers a population of approximately 398 million people. Coca-Cola Enterprises employs approximately 72,000 people who operate 463 facilities, 54,000 vehicles and approximately 2.4 million vending machines, beverage dispensers and coolers. RAPID CHANGE

The Coca-Cola Company experienced a period of rapid change during the 1900 thru 1909 timeframe when the company experienced a period of rapid growth. This rapid growth was attributed to three pioneers sectioning off the country into territories and selling bottling rights to local entrepreneurs. Their combined efforts attributed to advancements in bottling technology which improved efficiency and product quality. ? By 1909, nearly 400 Coca-Cola bottling plants were operating, most of them family-owned businesses. Some were only open during hot-weather months when demand was high? (Coca-Cola, 2004). During the 1920?s and 1930?s Coca-Cola began its international expansion led by Robert W. Woodruff, who was the Chief Executive Officer and Chairman of the Board. Coca-Cola plants were opened in France, Guatemala, and Hondu. Coca-Cola

Has been ordered to stop drawing ground water for a bottling plant which supplies most of southern India after a court found that it was ruining the environment. In a ruling which threatens to close the 16-hectare (40-acre) Coca-Cola plant in Kerala, southern India, the state's high court has ordered the company to close its boreholes and stop drawing ground water in one month's time. A thousand local families have been protesting for 608 days, claiming the plant is drawing so much water it is turning their rice paddies into a desert and killing their coconut palms. They brought the action in defiance of the state government, which supported the company. The court said that if it was to continue work at the bottling plant, the company must find alternative sources of water, but this is a tall order in an area which has suffered two dry years and has gone months without rain. The court ruled that extraction of the ground water at Plachimada village, even up to the limit admitted by the company, was illegal. The company had no right to extract this much natural wealth and the panchayat (local authority) and the government was bound to prevent it. The court found that ground water was a national resource which belonged to the entire society. "Ground water under the land of the company does not belong to it," said Justice K Balakrishnan Nair. "Every landowner can draw a 'reasonable' amount of ground water which is necessary for its domestic and agricultural requirements. But here, 510,000 litres [110,000 gallons] of water is extracted per day, converted to products and transported, thus breaking the natural water cycle." He also pointed out that the Supreme Court had stated in earlier orders that underground water belonged to the public and the state should act as a trustee for its protection. Judge Nair said the government also had no power to allow a private party to extract such a huge quantity of ground water, which could result in its drying up. Environmentalists claimed 1.5m litres of water were being extracted every day. Coca-Cola's divisional president, Sunil Gupta, denies these figures, saying the plant extracts only 300,000 litres a day and that it has permission from the government to use up to half a million litres. Three years ago, the protesters claim, Plachimada produced more than 50 sacks of rice and 1,500 coconuts a year and provided employment for dozens of labourers. Then Coca-Cola built the bottling plant....
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