School of Business and Governance
The Coca-Cola Company:
Coke Gets Back to Business
Mr. Godofredo Eding
Ruplo, Divine Joy
June 18, 2010
Throughout the world, Coca- Cola has established its name as one of the biggest selling soft drinks and leading distributor of beverages. However, there prominence has also declined due to unexpected events. These changes were also brought by new heads of the company. Coke’s former CEO, Roberto Goizueta had considerably increased the market value of the company but declined when he was replaced. Since another chief operating officer took over in 2000, Coke’s growth in the market was challenged by many investors on how to keep its name in the industry dominating. Considering the existence of its primary competitors, its global domination has primarily been the issue at risk. It was also indisposed to tamper one of its unfortunate introduction of New Coke. Since then many has doubted its capability in returning the valuable name to the public.
II. View Point
Coca-cola’s former CEO, Roberto Goizueta told that the company should raise for capital and be able to trade it at a profit. With that mindset, the business would primarily grow by using less capital, investing it and gaining more profit even without accessing the capital. As stated, many studies discovered that the usage of EVA would do better than their middle competitors.
On the other hand, Douglas Daft focuses on the company’s increasing growth through close ties to consumers around the world. He stressed about thinking locally and acting locally. He talks about leading the company not just on its expertise, management systems and capital strategic structures but also on plans to be more sensitive in places where products are distributed. He had admitted that the company was moving in the incorrect path in the late 90’s wherein Coke became over-compacted, slow and insensitive...