A Study on the Coca-Cola Company

PROJECT REPORT

Business Environment
Of
Coca-Cola

1IPage
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. Amirul Islam Lisan MD. Istiyak Hossain MD.

Ruhul Amin MD. Fuad Hasan MD. Atiq Reza

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 Mrs. 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.
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 macroenvironment of Coca Cola’s
operations.
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:

S We couldn’t collect any data from primary source. We mainly focused on secondary data.

• Secondary data:

S We have collected our secondary data from the Internet. The links are given in the reference
part of the report.
 Table of Contents:

Introduction:.......................................................................................................................................................7
Organization Profile..........................................................................................................................................8
Company Background......................................................................................................................................9
Mission..........................................................................................................................................................9
Vision:.........................................................................................................................................................10
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:.........................................................................................................................................26
Conclusion.......................................................................................................................................................27
References:.....................................................................................................................................................28
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, CocaCola 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.
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 CocaCola 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.
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

Worldwide
Geographic areas
served
Headquarters US.

Current CEO Muhtar Kent

Revenue $ 48.01 billion (2012)

Profit $ 9.01 billion (2012)

Employees 146,200

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

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 our business strategy are to increase volume, expand our share of worldwide
nonalcoholic ready to drink beverages sales, maximize our 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 our products directly to consumers. They keenly focus on enhancing
value for these customers and helping them grow their beverage business. 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 the Coca-Cola Company’s products. Ultimately, our success in achieving our mission
depends on our ability to satisfy more of their beverage consumption demands and our ability to add value
for customers. They achieve this when they place the right products in the right markets at the right time.

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.

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 going
to discuss about the strength, weakness, opportunity and threats of CocaCola Company. So, here goes
the SWOT analysis of Coca Cola Company.

SWOT Analysis of Coca-Cola Company

Strengths
1 The best global brand in the world in terms
of value ($77,839 billion)
2 World’s largest market share in beverage 3.
Strong marketing and advertising
4 Most extensive beverage distribution channel
5. Customer loyalty
6 Bargaining power over suppliers
7 Corporate social responsibility
Weaknesses
1.Significant focus on carbonated drinks
2.Undiversified product portfolio
3 High debt level due to acquisitions
4 Negative publicity
5 Brand failures or many brands with
insignificant amount of revenues

Opportunities Threats
1 Bottled water consumption growth
2.Increasing demand for healthy food and 1. Changes in consumer preferences 2 Water
beverage scarcity 3. Strong dollar
3.Growing beverages consumption in 4 Legal requirements to disclose negative
emerging markets (especially BRIC) information on product labels
4 Growth through acquisitions 5. Decreasing gross profit and net profit
margins
6 Competition from PepsiCo
7 Saturated carbonated drinks market
Now we are going to discuss elaborately on the points given above in SWOT Analysis table.

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.
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.
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.
 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.

Political
Technology

Legislative Economic

Environment Societal
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 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.
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.
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, and labor 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

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they have written price, manufacturing date, expiry date, batch no, nutritional facts are written on the
packed product. Ministry of Labor makes the laws for proper employment in the country. 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
labor 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
.
By following these guidelines Coca-Cola has helped the environment with consistent
VIII. 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 4 th
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’.
Challenges:

From our analysis, we have found some challenges that Coca-Cola 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.

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 V 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.
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