PROJECT REPORT

A Study on The Coca-Cola Company

Business Environment
of

Coca-Cola

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 LETTER OF TRANSMITTAL:

Date: 11th August 2014

Asheka Mahboob

Lecturer,

BRAC Business School,

BRAC University

Subject: Submission of term paper on “Coca Cola”

Dear Madam,

We have prepared our final term paper of BUS-203 course on “Coca Cola” a beverage
company. Which we are submitting along with this letter. It was an energizing experience
working on management activity and dealing with corporate personnel. We are confident that,
this term paper will help you to understand the Business environment of “Coca Cola”. We have
tried our best to follow your guidelines in preparing this paper. We have presented what we do
believe to be most important information to make this term paper as specific & coherent as
possible.

We expect that this report will fulfill your requirements. Thank you for your kind consideration
and guidance. We hope our effort would satisfy you.

Sincerely Yours,

MD. Ruhul Amin

MD. Amirul Islam

MD. Istiyak Hossain

MD. Fuad Hasan

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 ACKNOWLEDGEMENT

Firstly, we would like to thank Almighty Allah who provided us knowledge, energy & skills to
get opportunities & to increase our knowledge & experience by completing this project.

Secondly, we especially thank our Business Environment Course Instructor Ms. Aseka
Mahboob, who guided us in every steps & aspects of this report so that we can complete it
successfully.

And we are thankful to our classmates and friends who always supported and helped in finding
the information.

Finally, we would like to thank our entire group who gave their time, and effort to make the
project paper finish successfully.

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 EXECUTIVE SUMMARY

The Coca-Cola Company was first established in 1886 by Dr. John Stitch Pemberton. Today the
company is the world‟s leading manufacturer in the beverage industry, operating globally in
more than 200 countries with its head office located in Atlanta, USA. It produces more than 300
beverage brands and over 1.06 billion drinks are consumed per day around the world.

As the leading beverages company in the world, Coca Cola almost monopolizes the entire
carbonated beverages segment. Beside it, Coca Cola also maintain their reputation as the leading
company in the world using PESTLE analysis so that Coca Cola can examine the macro-
environment of Coca Cola‟s operations.

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Scope:

It requires reasonably a long time to acquire through knowledge about the activities of any
particular organization. It is not enough to get proper idea about a company through internet.
Because it is very difficult to find proper data only from internet.

Methodology:

To make this report, we need to collect different data. Those data and information were collected
from various sources. Such as Primary and Secondary which is showed below:

 Primary data:

 We couldn‟t collect any data from primary source. We mainly focused on

secondary data.

 Secondary data:

 We have collected our secondary data from the Internet. The links are given in the
reference part of the report.

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 Table of Contents

Introduction: ......................................................................................................................................7
Organization Profile ............................................................................................................................8
Company Background .........................................................................................................................9
Mission..................................................................................................................................... 10
Vision: ...................................................................................................................................... 11
SWOT Analysis:................................................................................................................................. 12
Strengths .................................................................................................................................. 13
Weaknesses:............................................................................................................................. 13
Opportunities:........................................................................................................................... 14
Threats: .................................................................................................................................... 15
PESTLE Analysis: ............................................................................................................................... 16
Political Environment:................................................................................................................ 17
Economic Environment:............................................................................................................. 18
Inflationary affect:..................................................................................................................... 19
Social Environment:................................................................................................................... 20
Technological Environment:....................................................................................................... 22
Legal Environment:.................................................................................................................... 23
Environmental Analysis:............................................................................................................. 24
Challenges:....................................................................................................................................... 26
Recommendations:........................................................................................................................... 27
Conclusion ....................................................................................................................................... 27
References: ...................................................................................................................................... 28

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Introduction:

The Coca-Cola company is the „world‟s largest beverage company and is the leading producer
and marketer of soft drinks. Today, Coca-Cola is consumed throughout the world at the rate of
more than 600 million times per day and this figure is continuing to rise. However Coca-Cola is
not the sort of company to live in its past glories instead it looks to the future as a challenge and
constantly seeks new markets and ways of increasing its market share in areas where it currently
has a strong presence. It is the world‟s largest producer and distributer of syrups and concentrates
for soft drinks.

As we all know, the Coca is today‟s one of the biggest corporation that offers different
refreshment in form of a soft-drink. But aside from their historical success, the Coca Cola
Company is still a typical business that is affected and at the same time affecting the different
type of communities.

Coca-Cola has sold more than one billion servings every day. More than 10,450 beverages are
consumed every second. The company achieved earnings of $4,347,000,000 in 2003. It is present
on all seven continents and is recognized by 94% of the world population. How did Coca-Cola
grow from its humble roots as a home-brewed Georgia-based patent medicine to be the
international soft drink powerhouse that it is today? Coca-Cola used numerous technologies to
achieve its rise to the top of the soft drink industry, defining new technologies and establishing
paradigms that popped the status quo like a cap from a soda bottle. Through technology, Coca-
Cola perfected Coke as a beverage and spread it throughout the world. Even today, the US soft
drink industry is organized on this principle. "The Coca-Cola Company" is now the largest soft
drink company in the world. Every year 800,000,000 servings of just "Coca-Cola" are sold in the
U.S alone.

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Organization Profile

Coca-Cola Enterprises, established in 1986, is a young company by the standards of the Coca-
Cola system. Yet each of its franchises has a strong heritage in the traditions of Coca-Cola that is
the foundation for this Company.

The Coca-Cola Company traces it‟s beginning to 1886, when an Atlanta pharmacist, Dr. John
Pemberton, began to produce Coca-Cola syrup for sale in fountain drinks. However the bottling
business began in 1899 when two Chattanooga businessmen, Benjamin F. Thomas and Joseph B.
Whitehead, secured the exclusive rights to bottle and sell Coca-Cola for most of the United
States from The Coca-Cola Company.

The Coca-Cola bottling system continued to operate as independent, local businesses until the
early 1980s when bottling franchises began to consolidate. In 1986, The Coca-Cola Company
merged some of its company-owned operations with two large ownership groups that were for
sale, the John Lupton franchises and BCI Holding Corporation's bottling holdings, to form Coca-
Cola Enterprises Inc. The Company offered its stock to the public on November 21, 1986, at a
split-adjusted price of $5.50 a share. On an annual basis, total unit case sales were 880,000 in
1986.

In December 1991, a merger between Coca-Cola Enterprises and the Johnston Coca-Cola
Bottling Group, Inc. (Johnston) created a larger, stronger Company, again helping accelerate
bottler consolidation. As part of the merger, the senior management team of Johnston assumed
responsibility for managing the Company, and began a dramatic, successful restructuring in
1992.Unit case sales had climbed to 1.4 billion, and total revenues were $5 billion.

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Company Background

The Coca Coola Company is the largest beverage business in the world serving more than 200
countries and offering more than 500 brands.

Name The Coca Cola Company

Industries served Beverages

Geographic areas
Worldwide
served

Headquarters U.S.

Current CEO Muhtar Kent

Revenue $ 48.01 billion (2012)

Profit $ 9.01 billion (2012)

Employees 146,200

PepsiCo Inc., Dr. Pepper Snapple Group, Inc., Unilever, Groupe Danone,
Main Competitors
Kraft Foods Inc., Nestlé S.A. and others.

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 Mission

According To Coca-Cola, “Our mission statement is to maximize shareowner value over time.In
order to achieve this mission; we must create value for all the constraints we serve including our
consumers, our customers, our bottlers, and our communities.”

The Coca Cola Company creates value by executing comprehensive business strategy
guided by six key beliefs:

1. Consumer demand drives everything They do

2. Brand Coca Cola is the core of our business.
3. They will serve consumers a broad selection of the nonalcoholic ready-to–drink
beverages they want to drink throughout the day.
4. They will be the best marketers in the world.
5. They will think and act locally.
6. They will lead as a model corporate citizen.

The ultimate objectives of their business strategy are to increase volume, expand their share of
worldwide nonalcoholic ready to drink beverages sales, maximize long-term cash flows, and
create economic value added by improving economic profit. The Coca Cola system has more
than 16 million customers around the world that sells or serves their products directly to
consumers. They keenly focus on enhancing value for these customers and helping them grow
their beverage businesses. They strive to understand each customer‟s business and needs,
whether that customer is a sophisticated retailer in developed market a kiosk owner in an
emerging market. There are nearly 6 million people in the world who are potential consumers of
their company‟s product. Ultimately, their success in achieving their mission depends on their
ability to satisfy more of their beverage consumption demands and their ability to add value for
customers. They achieve this when they place the right products in the right markets at the right
time.

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 Vision:

The vision of Coca-Cola is the framework for their guides of every aspect of its business. It is
presented in 6Ps:

1. People: Be a great place to work where people are inspired to be the best they can be.

2. Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and
satisfy people's desires and needs.

3. Partners: Nurture a winning network of customers and suppliers, together They create
mutual, enduring value.

4. Planet: Be a responsible citizen that makes a difference by helping build and support
sustainable communities.

5. Profit: Maximize long-term return to shareowners while being mindful of our overall
responsibilities.

6. Productivity: Be a highly effective, lean and fast-moving organization.

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SWOT Analysis:

Before going to SWOT analysis, first we‟ve know what SWOT actually is. The alphabets in the
word SWOT sands for Strength, Weakness, Opportunity and Threats. In SWOT analysis, we
basically to discuss about the strength, weakness, opportunity and threats of Coca-Cola
Company. So, here goes the SWOT analysis of Coca Cola Company. Now we are going to
discuss elaborately on the points given above in SWOT Analysis table.

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 Strengths

i. The best global brand in the world in terms of value. According to Interbrand, The
Coca Cola Company is the most valued ($77,839 billion) brand in the world.
ii. World’s largest market share in beverage. Coca Cola holds the largest beverage
market share in the world (about 40%).
iii. Strong marketing and advertising. Coca Cola‟ advertising expenses accounted for
more than $3 billion in 2012 and increased firm‟s sales and brand recognition.
iv. Most extensive beverage distribution channel. Coca Cola serves more than 200
countries and more than 1.7 billion servings a day.
v. Customer loyalty. The firm enjoys having one of the most loyal consumer groups.
vi. Bargaining power over suppliers. The Coca Cola Company is the largest beverage
producer in the world and exerts significant power over its suppliers to receive the lowest
price available from them.
vii. Corporate Social Responsibility (CSR). Coca Cola is increasingly focusing on CSR
programs, such as recycling/packaging, energy conservation/climate change, active
healthy living, water stewardship and many others, which boosts company‟s social image
and result in competitive advantage over competitors.

Weaknesses:

i. Significant focus on carbonated drinks. The business is still focusing on selling Coke,
Fanta, Sprite and other carbonated drinks. This strategy works in short term as
consumption of carbonated drinks will grow in emerging economies but it will prove
weak as the world is fighting obesity and is moving towards consuming healthier food
and drinks.
ii. Undiversified product portfolio. Unlike most company‟s competitors, Coca Cola is still
focusing only on selling beverage, which puts the firm at disadvantage. The overall
consumption of soft drinks is stagnating and Coca Cola Company will find it hard to
penetrate to other markets (selling food or snacks) when it will have to sustain current
level of growth.

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iii. High debt level due to acquisitions. Nearly $8 billion of debt acquired from CCE‟s
acquisition significantly increased Coca Cola's debt level, interest rates and borrowing
costs.
iv. Negative publicity. The firm is often criticized for high water consumption in water
scarce regions and using harmful ingredients to produce its drinks.
v. Brand failures or many brands with insignificant amount of revenues. Coca Cola
currently sells more than 500 brands but only few of the brands result in more than $1
billion sales. Plus, the firm‟s success of introducing new drinks is weak. Many of its
introduction result in failures, for example, C2 drink.

Opportunities:

i. Bottled water consumption growth. Consumption of bottled water is expected to grow

both in US and the rest of the world.
ii. Increasing demand for healthy food and beverages. Due to many programs to fight
obesity, demand for healthy food and beverages has increased drastically. The Coca Cola
Company has an opportunity to further expand its product range with drinks that have
low amount of sugar and calories.
iii. Growing beverages consumption in emerging markets. Consumption of soft drinks is
still significantly growing in emerging markets, especially BRIC countries, where Coca
Cola could increase and maintain its beverages market share.
iv. Growth through acquisitions. Coca Cola will find it hard to keep current growth levels
and will find it hard to penetrate new markets with its existing product portfolio. All this
can be done more easily through acquiring other companies.

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 Threats:

i. Changes in consumer tastes. Consumers around the world become more health
conscious and reduce their consumption of carbonated drinks, drinks that have large
amounts of sugar, calories and fat. This is the most serious threat as Coca Cola is mainly
serving carbonated drinks.
ii. Water scarcity. Water is becoming scarcer around the world and increases both in cost
and criticism for Coca Cola over the large amounts of water used in production.
iii. Strong dollar. More than 60% of The Coca Cola Company income is from outside US.
Due to strong dollar performance against other currencies firm‟s overall income may fall.
iv. Legal requirements to disclose negative information on product labels. Some Coca
Cola‟s carbonated drinks have adverse health consequences. For this reason, many
governments consider to pass legislation that requires disclosing such information on
product labels. Products containing such information may be perceived negatively and
lose its customers.
v. Decreasing gross profit and net profit margins. Coca Cola‟s gross profit and net profit
margin was decreasing over the past few years and may continue to decrease due to
higher water and other raw material costs.
vi. Competition from PepsiCo. PepsiCo is fiercely competing with Coca Cola over market
share in BRIC countries, especially India.
vii. Saturated carbonated drinks market. The business significantly relies on the
carbonated drinks sales, which is a threat for the Coca Cola as the market of carbonated
drinks is not growing or even declining in the world.

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PESTLE Analysis:

The Coca Cola Company and other organizations have their own weaknesses and strengths that
can both affect the future performance of their respective business. Analyzing the future
constraints is an advantage for the companies since they can identify the possible factors that
tend to leave an impact on their business.

PESTLE analysis is a popular method that focuses in the external factors of the business and the
environment where it operates. PESTLE stands for Political, Economic, Sociological,

Technological, Legal, and Environmental. All of them examine the changes in the marketplace.

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 Political Environment:

Political environment examines the current and potential influences from political pressures. The
non-alcoholic beverages falls in the category under the FDA and the government plays a role
within the operation of manufacturing these products. In terms of regulations, the government
has the power to set potential fines for the companies that did not meet their standard law
requirement.

The changes in laws and regulations, such as accounting standards, taxation requirements and
environmental laws and foreign jurisdictions might affect the book of the company as well as
their entry in this country. Other than that, the changes in the nature of business as non-alcoholic
beverages can gain competitive product and pricing pressures and the ability to improve or
maintain the share in sales in global market as a result of action by competitors.

The political conditions of the country are also basis of the study, especially in internal markets
and other governmental changes that affects their ability to penetrate the developing and
emerging markets that involves the political and economic conditions. However, Coca Cola
continuously monitoring the policies and regulations set by the government.

Coca Cola is the leading soft drink brand in Bangladesh. However, the primary barrier for Coca-
Cola‟s entry into the Bangladeshi market was its political environment. Despite the liberalization
of the economy in and introduction of the New Industrial Policy to eliminate barriers such as
bureaucracy and regulation, there was still a lot of protectionism. When Coca Cola had decided
to enter in Bangladesh to distribute the products, Coca Cola was monitoring the policies and
regulations of this country. For the example, when entering Muslim country like Bangladesh,
Coca Cola followed the regulation by adding “Halal” stamp in each Coca Cola‟s products. In this
case, Coca Cola has no political issues in this matter.

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 Economic Environment:

The economic factors analyze the potential areas where the firm can grow and expand. It
includes the economic growth of the country, interest rates, exchange rates, inflation rates, wage
rates and unemployment in the country.

Economic environment examines the local, national and world economy impact which is also
includes the issue of recession and inflation rates. The non-alcoholic beverage industry like
Bangladesh has high sales in countries outside the U.S because here alcohol is prohibited from
religious perspective. According to the Standard and Poor's Industry surveys, "For major soft
drink companies, there has been economic improvement in many major international markets,
such as Japan, Brazil, and Germany." These markets will continue to play a major role in the
success and stable growth for a majority of the non-alcoholic beverage industry like Bangladesh.
There is a low growth in the market for carbonated drinks, especially in Coca Cola‟s main
market.

The company first analyzes the economic condition of the country before venturing into that
country. When there is an economic growth in the country, the purchasing power among people
increases. It gives the company or the marketer a good chance to market the product. Coca-Cola,
in the past identified this correctly and rightly started its distribution across the country.

Interest rates are the rate which is imposed on the company for the money they have borrowed
from government. When there is an increase in the interest rates, it may deter the company in
further investment as the cost for borrowing is higher. Coca-Cola uses derivative financial
instruments to cope up with the fluctuating interest rates. Inflation and wage rate go hand in
hand, when there is an increase in the inflation the employee demand for a higher wage rate to
cope up with the cost of living.

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This comes as additional cost for the company which cannot be reflected in the price of the final
product as the competition and risk in this segment is higher. This is a threat in the external
environment faced by the company. From the above explanation it is clearly seen that the
economic factors involves a major impact in the behavior of the company during various
economic situations.

Inflationary affect:

Inflation is one of the main problems that a country have to face in their economy. Rising prices
in the food and other products doesn‟t only effect the consumers it also has an adverse effect on a
company. The inflation rate for the year 2009 was too high. As prices have gone up in
Bangladesh for various products, there has been uncertainty in decision making of almost every
company. Coca cola has also been affected by the same; it has been forced to think about their
input costs, as they have been rising due to inflation. Their expenditure has been rising, with
more costs in salaries, distribution channels and other operating costs. Beverage industry being
price competitive market, they have not revised their product prices.

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 Social Environment:

Social factors are mainly the culture aspects and attitude, health consciousness among people,
population growth with age distribution, emphasis on safety. The company cannot change the
social factors but the company has to adjust itself to the changing society. The company adapts
various management strategies to adapt to these social trends. Coca-Cola which is a B2C
company, is directly related to the customer, so social changes are the most important factors to
consider. Each and every country has a unique culture and attitude among the people. It is very
important to know about the culture before marketing in a particular country. Coca-Cola has
about 3300+ products in their stable, when entering into a country it does not introduce all the
products. When they started their business in Bangladesh, it introduces minimum number of
products according to the culture of the country and the attitude of the people.

Consumers and government are becoming increasingly aware of the public health consequences,
mainly obesity which is the second social factor in the soft drinks industry. It inspired the
company to venture into the areas of Diet coke and zero calorie soft drinks. The problem of
obesity is taken seriously among the youngsters who like to maintain a good physique. Hence
coke introduced dietary products for those youngsters who can enjoy coke with zero calories. In
one of the study it is said that “Consumer from the age groups 37 to 55 are also increasingly
concerned with nutrition”. Since many are aware, they are concerned with the longevity of their
lives. This will affect the demand of the company in the existing product and also is an
opportunity to venture into new health and energy drinks industry.

Population growth rate and the age distribution is another social factor to be considered. It is
very important because non-alcoholic markets have most of its share from the children and
youngsters. Adults used to celebrate mostly with alcohol. The age distribution of the country
becomes important for the success of the product in this country.

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Initially, it struggled to find acceptance as there were already other brands. Coca-Cola had earlier
focused more on the American way of life in their advertising campaigns, which the Bangladeshi
consumers could not identify with. Also, they did not focus on competition from other
alternatives.

However, things were brought under control when they gave more attention on their marketing
mix. With the lowering of their prices by almost 15-20%, more investment in market research
and focusing on the target group of 18-24 year olds, they were able to increase their market share
and build brand loyalty.

Coca Cola today, has made significant investments to build its business in Bangladesh. It has
also generated employment for lots of people in related industry through its procurement, supply
and distribution cycles.

The soft drink industry today is growing steadily due to the economy, strengthened middle class
and low per capita consumption. With the increase in health consciousness among the urban
consumers, the company has introduced newer products such as Diet Coke, which contain lesser
calories than ordinary Coca Cola. This is also responsible for the company shifting focus from
carbonated drinks to Fruit Drinks / Juices and bottled water.

The rural market had also been identified by Coca-Cola as an attractive target, with almost 70%
of the country‟s population.

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 Technological Environment:

Technology plays a varied role in the soft drinks industry. The manufacturing and distribution of
the products is relatively a Low-Tech business, although the creation of a new product with the
perfect blend and taste is a science (an art in itself).

Technological contributions are most important in packaging. The company rely on their bottling
partners for a significant portion of their business. Nearly 83% of the worldwide unit case
volume is manufactured and distributed by their bottling partners in whom the company does not
have controlling power. Hence it is necessary for the company to maintain a cordial relation with
their bottling partners. If the company do not give ample support in pricing, marketing and
advertising then the bottling industry while increase their short term profits, may become
detrimental to the company.

The advancement in technology in the company has led to: Introduction of new ways for the
availability of Coca-Cola, it introduced general vending machines all over the world. In products
it led to the development of new products like Cherry Coke, Diet Coke etc. The technical
advancement in the bottling industries include, introduction of recyclable and non-refillable
bottles, introduction of cans which are trendy, stylish and popular among the youngsters of the
country.

Technology is the main focus of the analysis where the introduction and the emerging
technological techniques are valued. This creates opportunities for new products and product
improvements in terms of marketing and production. As the technology advances, new products
are introduced into the market. The advancement in technology has led to the creation of cherry
coke in 1985 but consumers still prefers the traditional taste of the original coke.

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 Legal Environment:

The legal factors include discrimination law, customer law, antitrust law, employment law and
health and safety law. In Coca-Cola the business is subjected to various laws and regulation in
the numerous countries in which they do the business, the laws include competition, product
safety, advertising and labelling, container deposits, environment protection, labour practices.

In Bangladesh, the products of the company is subjected to various acts like Drug and Cosmetic
Act, Occupation Safety and Health Act, various environment related acts and regulations, the
production, distribution, sale and advertising of all the products are subjected to various laws and
regulations. Changes in these laws could result in increased costs and capital expenditures, which
affects the company profitability and also the production and distribution of the products.

Various jurisdictions may adopt significant regulations in the additional product labelling and
warning of certain chemical content or perceived health consequences. These requirements if
become applicable in the future the company must be ready to accept and have necessary
changes in hand for the same.

Legal aspect focuses on the effect of the national and world legislation. The Coca Cola Company
receives all the rights applicable in the nature of their business and every inventions and product
developments are always going into the patented process.

In the present scenario, consumer is the king, if a product is defective, not meeting the stated
standards a consumer can complain against the manufacturer. Coca Cola has to make sure that
they have written price, manufacturing date, expiry date, batch no, nutritional facts are written on
the packed product. Ministry of Labour makes the laws for proper employment in the country.
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They have stipulated norms on employing people from the country and getting expatriates in the
company as well. Coca Cola has made sure that female employees are treated with respect and
given equal importance at the work place. Every field of work has got its own wage, these are to
meet the norms and laws set by the labour ministry. When employing anyone, Coca Cola doesn‟t
discriminate on social, regional or any racists‟ basis.

Environmental Analysis:

Environmental analysis examines the local, national and world environmental issues. According
to the data of the Coca Cola Company, all of the facilities are strictly monitored according to the
environmental laws imposed by the government.

Coca Cola has earned a title of environment friendly company and Coca Cola Bangladesh too
has followed in the footsteps. Coca Cola‟s Corporate Social Responsibility (CSR), is an initiative
that prioritizes many social and environmental issues; one of them being „water conservation‟.
They support many community based rainwater harvesting projects and help lending
conservation education.

The company has made sure that the following ideas are considered during their operations:

I. Environmental due diligence before acquiring land

II. Environmental impact assessment before commencing project

III. Ground water and environment survey before selecting the site

IV. Ban on purchasing CFC emitting refrigerating equipment

V. Waste water treatment facilities

VI. Compliance with all regulatory environmental requirements

VII. Energy conservation programs

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 VIII. By following these guidelines Coca-Cola has helped the environment with
consistent profits and success. They seek to provide leadership in three different
areas, these are as follows:

IX. Water efficiency and water quality

X. Energy efficiency

XI. Eliminating or minimizing solid waste.

Though being an environmental friendly company, Coca Cola had to face its share of
controversies. On 4th February, 2007, Centre of Science and Environment in Bangladesh,
released a report based on experiment done by Pollution Monitoring Laboratory. In the
experiment, they tested 17 packaged drinking water brands and found that, Coca Cola‟s Kinley
has 15 times more pesticide residual levels than the stipulated norms, Bisleri had 59 times and
Aquaplus had 109 times.

The main law governing the food safety is the Prevention of food alteration act, which stated that
pesticides should not be present in any food item but did not have law against pesticides being
present in soft drinks. However, the Food Processing Order stated that the main ingredient used
in soft drinks must be „potable water‟ but the Bureau of standards had no prescribed standards
for pesticides in water.

But later it was found that BIS had stated that pesticides should not be present or it should not
exceed 0.001 part per million. Further, the health ministry of Bangladesh admitted that „there
were lapses in PFA regarding carbonated drinks‟.

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Challenges:
From our analysis, we have found some challenges that CocaCola Company is facing here in
Bangladesh. The Challenges are as follows-
I. In rural areas especially in remote areas, Coke is not available but there is a
demand.
II. In Bangladesh, Coke Diet and Zero is not that much available. They are
having production and problem.

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Recommendations:

After completing our project we have concluded some recommendation for the Coca-Cola Company, which
are following.
I. Coca Cola Company should try to emphasis more on providing
their infrastructure in the market to facilitate their customers.
II. According to the survey conducted by an international firm, Bangladeshi
people like little bit sweeter cola drink. So for this coca cola company should
produce their product according to the local demand.
III. Marketing team should try to increase the availability of Coke in rural areas.
IV. They should also focus on the old people.
V. Now young generation has a trend to drink a coke 2 regular bottle at same time, so
providing more satisfaction to them company should introduce ½
liter disposable bottle.
VI. As, in Bangladesh, having a good number of demand, Coke Diet and Zero is
not that much available, So they should emphasize on the supply of these two
brands.

Conclusion
After thorough research, we come to the conclusion that the marketing strategy of Coca Cola is
working for them and the product is gaining popularity among youth day by day.

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References:

1) http://www.coca-colacompany.com/
2) http://en.wikipedia.org/wiki/The_Coca-Cola_Company
3) http://ivythesis.typepad.com/term_paper_topics/2009/12/pestle-analysis-on-coca-
cola.html
4) http://annasurname.hubpages.com/hub/PEST-Analysis-Coca-Cola
5) http://smallbecomesgiant.wordpress.com/2013/04/04/pest-analysis-of-coca-cola-
company/
6) http://www.strategicmanagementinsight.com/swot-analyses/coca-cola-swot-
analysis.html

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