Corporate level strategy
Coca-Cola Company is now the largest soft drink company in the world. Moreover, the company has become the largest manufacturer, distributor, and marketer of non-alcoholic beverage concentrates and syrups which operate in more than 200 countries. After years of globalization and brand building, Coca-Cola proudly pronounces its Mission Statement “At The Coca Cola Company we strive to refresh the world, inspire moments of optimism and happiness, create value and make a difference” (thecoca-colacompany.com). And its goals: “The basic proposition of our business is simple, solid and timeless. When we bring refreshment, value, joy and fun to our stakeholders, then we successfully nurture and protect our brands, particularly Coca-Cola. That is the key to fulfilling our ultimate obligation to provide consistently attractive returns to the owners of our business (Annual Report, 2008, p.33).” Coca-Cola feels that it should offer a soft-drink to the entire global community, which is environmentally safe and accepted. The company’s mission is directed towards its soft drink business and the strategy management changes that will be coming. Furthermore, Coca-Cola appeals to the long term interests of stakeholders particularly shareholders, employees and customers. Coca-Cola Company’s business is nonalcoholic beverages—principally sparkling beverages, but also a variety of still beverages. The company manufactures beverage concentrates and syrups, which it sells to bottling and canning operations, fountain wholesalers and some fountain retailers, as well as finished beverages, which it sells primarily to distributors. Coke owns or licenses nearly 500 brands, including diet and light beverages, waters, enhanced waters, juices and juice drinks, teas, coffees, and energy and sports drinks. Coca-Cola has four of the world’s top five nonalcoholic sparkling beverage brands: Coca-Cola, Diet Coke, Sprite and Fanta. In addition, the company has ownership interests in numerous beverage joint ventures, bottling and canning operations, although most of these operations are independently owned and managed (thecoca-colacompany.com). The current key strategic objectives of the organization are driving the core carbonates business, strengthening alliance with anchor bottlers, tackling weakening purchasing power, and acquisitions in non-carbonate drinks to continue. In order to meet these objectives effectively, the best way is to acquire other beverage companies. The Coca-Cola Company continues to invest heavily in the traditional popularity of its core carbonates brands such as Coca Cola Classic and this strategy is working in tandem with its “Three cola strategy”, focusing on the Coca-Cola, Diet Coke and Coca-Cola Zero brands. The successful global roll-out of Coca-Cola Zero means that consumers are responsive to wellbeing carbonates with the adequate marketing. The Coca-Cola Company has increasingly partnered with anchor bottlers in acquisition activities. However, increasing joint acquisitions and cross-equity ownership involving bottling partners can potentially add some extra complexity to the already complicated The Coca-Cola Company system. The recession in Western developed markets and the slowdown in major emerging markets have called for immediate strategy to handle the situation. Generally, this is a challenge most beverage players faced. It may require a lot more patience to drive sales of core products, therefore, the introduction of non carbonate drinks can be an option. As consumers may trade down from the formal dining to fast food services, strengthening the alliance with quick-service food operators could be a smart method. With strong cash generated from its carbonates business, Coke has the full capability to make aggressive acquisitions in emerging markets to buy into certain categories and geographies. For example, to develop its juice or juice drinks,...
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