Coca-Cola Company


Coca-ColaCompany Analysis


The was started in the year 1886 in Atlanta Georgia.The company mainly specializes in soft drinks. As it stands, it is amultinational corporation, which has been in the business fordecades. Its main headquarter is in Atlanta Georgia. Currently, it isone of the best companies in the beverage industry (Hansen,2016).The principal founder of the corporation is Griggs Candler.Additionally, the firm has spread its branches worldwide except forthe North Korea and Cuba. It is also listed on the New York stockexchange with the short-code name KO. Its current CEO is Muhtar Kent,and its president is James Quincey (In Hopkins, 2016) In thefinancial year 2015, managed to earn revenue of $44.3 billion with net income of $ 7.4 billion (In Hopkins, 2016).Furthermore, its total assets stand at approximately $ 90 billion (InHopkins, 2016). he corporation currently has around 123, 300employees (In Hopkins, 2016). The total equity stands at $ 25.6billion (Isdell, &amp Beasley, 2016). The primary strategy that hasmade the company be on the high competitive edge is the notion ofhigh level of production efficiency and production of high-qualitybeverages (Pendergrast,2013).&nbspThe varieties of brands that the company sells across the world areCoke, Fanta, Sprite, Stoney and Krest among others. The unique tastesthat this corporation produces make the differentiation of the marketto be quite effective. This paper takes a critical look at thecompany as a whole regarding performance in all standard ofmanagement. The paper researches on the mission, vision and corevalues of the enterprise with keen attention on how it helps inmeeting its objectives. The paper also discusses the leadershipstructure of the enterprise. Additionally, the ethics and corporatesocial responsibility of the firm has been put into perspective plusthe SWOT analysis.

TheMission and Vision Statement

Theprimary mission of the company is “to refresh the world, to createvalue and make a difference and to inspire moments of happiness andoptimism” (Pendergrast,2013).&nbspFromthe mission statement above, the company aims at looking ontocustomer`s needs. In this prospect, the firm is deemed to be customeroriented. This means that the decisions made are meant to meet theneeds of the consumers.

Thecentral vision of the Coca-Cola is “to bring to the world aportfolio of soft drinks brands that expect and satisfy customer`sneeds and desires” (Svendsen,2013).From this vision, the company has an objective of producing qualityproducts.


Thecurrent CEO of the company is known for his profound leadership. Theprimary leadership style that the corporation has employed is thetransformational leadership. In this form, the CEO has ensured thathe leads through the highly qualified employees of the company.Recently, the management applauded the CEO for creating a platformwhere the entire employee fraternity participates in thedecision-making. In this respect, the company has made sure thatautonomy in the decision-making is allowed under the statutes of thefirm (In Walker-Said &amp In Kelly, 2015). In order to make thestaffs feel part of the enterprise, the company prevalently uses aslice diagonal management style. Even as the company forms their corevalues, workers are put into the task to come up with particularsuggestions that would help in making the company move forward. Inthis line of thought, the management has ensured that it gives theemployees a sense of responsibility where they take the company astheir own and protect it at all cost. The efficiency of productionhas been heightened due to efficient cooperation between theemployees and the management. These are some of the reasons why thecompany has been a top notch in the beverage industry for decades.

Ethicsand Corporate Social Responsibility

Oneof the ways in which the company has created a big clientele base isthrough participation in corporate social responsibility. In fact,significant amount of their expenses go into this venture. Coca-Colabelieves that through CSR, it is capable of boosting its reputationowing to the esteemed customers it has. One of the areas that thecompany has made milestones in CRS is the sponsoring of the FIFAworld cup tournament. Billions of people usually watch the footballmatch across the world. During the world cup, Coca-Cola caters formost of the expenses (Banks, 2016). Instinctively, the company is atthe forefront of spearheading the talents of football in the society.Members of society have therefore remained loyal customers to thecompany by consuming their variety of products. In the same field,there are other numerous events such as Copa America sponsored by thecompany. Additionally, the Corporation has endeavored to form theCoca-Cola Foundation (Banks, 2016). The organization has establishedvarious initiatives mainly stipulated towards empowering communities.Some of the initiatives that the company has come up with are tosponsor various students across the world through their education.The foundation has set aside 2% of its income to give back to thecommunity through these initiatives (Taylor, 2014). Coca-ColaFoundation was formed in 1984 with the main aim of empowering theyouths, the women and the vulnerable in the society (Banks, 2016). Inethical stance, the company has managed to carry out production in anenvironmentally friendly way. In this prospect, the company hasstrictly adhered to the environmental laws of the countries ofoperations.



Themain strength of the firm is the production of high-quality beveragesloved by the consumers worldwide. Additionally, the company has aprofound marketing strategy, which has given it a competitive edgeover the other companies. The firm has differentiated its products toa variety of brands that matches various consumer segments (Hansen,2016). Forexample, for those who are diabetic, the coke zero has been strictlyproduced to suit their needs. Additionally, Sprite brand has beenassociated with those who play basketball. Furthermore, the Coca-Colahas a profound capital base, which has fueled its operations to ahigher stance. The company still has well-trained staffs that areworking day and night to ensure that there are high productivity andefficiency in the operations of the business (In Choi &amp In Cheng,2015).


Themain weakness of the company is the rising operation cost. Even asthe company gets into the other countries, there are regulations suchas high taxes, which are expected to increase their operational coststhereby reducing their profits. The company currently has a highbureaucracy in decision-making. Owing to this, decision-makingprocess has been delayed hence lagging the delivery of services. Thecompany has also been involved in legal issues where it has beenaccused of evading taxes. This unethical act has made it be finedbillions hence affecting its profitability (Banks, 2016).


Asthe best beverage company across the world, the firm has theopportunity of expanding its ranges of brands. For example, it hasthe chance of producing water that would boost its productivity henceincreased profitability. Moreover, the company has majored on theurban areas in the countries where it is present. There is need forthe company to move to rural areas to increase its clientele base.The current distribution channels can boost the sales of the CocaCola products. To ensure efficient production, the company has thechance of developing a profound information system (ERP). The ERPwill make sure that the business authorization is automated such thatthe bureaucracy problems are well addressed (Nazari et al., 2014).


Thereis a high level of competition from the global beverage industry. Themain competitor of Coca-Cola is Pepsi Company that has formidablebrands of drinks in the market. There are various country regulationsand the international market laws that the firm has to adhere to. Theproduction of beverages requires lots of water. The unprecedentedclimate change makes water resource to be quite scarce. The companyis yet to come up with an efficient way of dealing with this problem.

TheFuture of Coca-Cola

Fromthe analysis, it is evident that the firm still has a potentialgrowth. The stratified distribution channels and the well-coordinatedmarketing strategy have made the company to be among the best in themarket (Taylor, 2014). The firm still stands a chance of expandingmost of its businesses across the world owing to its strategy. Thecompany will remain very competitive as long as it creates innovativestrategies each time. Additionally, with expansion of thedistribution channels to the areas where it faces competition,Coca-Cola will definitely have a boost in sales. will have a good future in the business arena when it addresses allthe issues that seem to be challenges. Notably, the future of anybusiness lies in the best way it manages the challenges and takesadvantage of the arising challenges.


Fromthe study, it emerges that Coca-Cola company remains to be one of thebest managed companies globally. Coca-Cola continues to operate anddeliver services and products within its vision. The vision of thecompany is to ensure that it progressively gives the world differentbrands that will meet the needs and desires of its customers. The CEOMuhtar Kent has employed the transformational leadership in hismanagement. In the company, slice diagonal management style is usedto make the company formidable. The main strength of the firm is theproduction of high-quality beverages loved by the consumersworldwide. The main weakness of the company is the massivebureaucracy that impedes quick decision-making. The company has ahigh potential for growth, which when properly taken advantage ofwill soar the growth to levels of higher profitability.

Oneof the areas that the corporation has made milestones in CSR is thesponsoring of the FIFA world cup tournament. Through setting aside of2% of their income for CSR activities, the company has progressivelybuilt its reputation and remained a brand among the customers.


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