Coca Cola Economic Position Paper

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Coca Cola Economic Position Paper
ECO 365

Coca Cola is the world’s leading manufacturer and distributor in the beverage industry.The economic position of Coca-Cola is determined through careful analysis of the organizations history, market conditions, market trends, and finally the recommendations needed for the future of the organization in their economic position. Overview of the company will consist of the history, industry market, the role of government regulations, and issues or opportunities. History of Organization

A pharmacist John Pemberton founded Coca Cola in 1886. Pemberton took the caramel colored concoction to Jacob’s pharmacy and added carbonated water. The initial take on this strange water was so good that Jacob’s pharmacy sold approximately nine glasses a day at 5 cents apiece. After Pemberton’s death in 1888, the colored water went on a century later to sell more than 10 billion gallons of syrup. During World War II, the company established manufacturing for overseas operations and by the end of the war had become an international company. Coca Cola has developed into the largest beverage organization since 1886, an unimaginable dream come true for the founder. Coca Cola operates “in more than 200 countries and market a portfolio of more than 3,000 beverage products including sparkling drinks and still beverages such as waters, juices and juice drinks, teas, coffees, sports drinks, and energy drinks” (The Coca Cola System, 2010). The core philosophy for the bottling of each product is on building local relationships with customers and communities and is the foundation for growth (History of Bottling, 2010). The mission of Coca Cola is “To refresh the world, to inspire moments of optimism and happiness, and to create value and make a difference” (Coca Cola, 2010) Market of the Coca Cola Corporation

The Coca Cola Corporation operates in vast marketplace, that is to say the company operates on a global platform, expanding 200 plus countries. The Coca Cola Corporation focuses on the non-alcoholic beverage market in the “drink” industry. Incorporating over 400 brands and over 3,000 other beverage options, the Coca Cola Company is the largest beverage company in the industry. (Coca Cola Corporation, 2008) . The brand, Coca Cola, recognized as the world’s most valuable trademark is bringing in positive cash flows of over 8 billion dollars annually. (Coca Cola Corporation, 2009) . Role of Government Regulations

Coca Cola bottlers are presently making non-refillable recyclable plastic bottles in the United States as well as markets around the world. Many bottlers offer refillable containers, which are also recyclable. Coca Cola states, “Legal requirements have been enacted in jurisdictions in the United States and overseas requiring that deposits or certain eco-taxes or fees be charged for the sale, marketing, and use of certain non-refillable beverage containers.” All of Coca Cola’s services in the United States and in other parts of the world are subject to a variety of environmental regulations and laws. In following the laws and regulations within the United States and around the world, Coca Cola has not nor anticipates any adverse affect on the company’s competitive position, capital, or net income. Issues or Opportunities

The health issue challenge can disrupt the growth of the soft drink industry. However, opportunities exist for CCE to continue to stay ahead in the beverage industry. For example, penetrating multiple markets around the globe is a strategic move that will allow acquisition opportunities and enhance the market and financial gains of the company. In addition to acquisition efforts, tapping into the existing bottled-water market frenzy is another opportunity Coca Cola has to regain market growth. The beverage segment of bottled water is rapidly on an incline in the United States as more people are becoming aware of the need...
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