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Case Study of Coca-Cola

Submitted To:
Madam Fareeha
Submitted By: Group#5
Zubair Rashid (MBA/FA09-36)
Rashid Sarwar (MBA/FA09-46)
Mubasheer (MBA/FA09-60)
Farhan Saeed (MBA/FA09-62)
Hafiz Abdul Rauf (MBA/FA09-80)
Faiz (MBA/FA09-50)

Comsat Institute of Information Technology Sahiwal

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Acknowledgement...............................................................................................................2
Preface:................................................................................................................................3
Review Question # 1............................................................................................................4
Review Question # 2..........................................................................................................10
Review Question #3...........................................................................................................13
Review Question #4...........................................................................................................14
Research Question#1.........................................................................................................14
Research Question#2.........................................................................................................15
Research Question#3.........................................................................................................18
Diversity:........................................................................................................................18
Our Progress:.............................................................................................................19
Workplace Culture:....................................................................................................20
Diversity Education & Training:...............................................................................20

Acknowledgement
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All gratitude and thanks to almighty “ALLAH” the gracious, the most merciful and
beneficent who gave me courage to undertake and complete this task. I am very much
obliged to my ever caring and loving parents whose prayers have enabled to reach this
stage.

We are grateful to almighty ALLAH who made me able to complete the work presented
in this report. It is due to unending mercy that this work moved towards success.

We are highly indebted to my course instructor Madam Freeha Nisar for providing me
an opportunity to learn about the Management which is vital ingredient of MBA
program.

We feel great pride and pleasure on the accomplishment of this report.

Preface:
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There are few products which are internationally recognized as the coke is found
every where. Another American product McDonald’s which creates its position in 119
countries in the world. As the McDonald's brand creates its position as well as Coca-Cola
has capitalized on opportunities and increase its worth.
In 17 years the CEO Roberto Goizueta has passed away on Oct 18, 1997 has not
in a position for certain period due to lung cancer. In the period of CEO the market value
of Coca-Cola increased dramatically from $ 4 billion to nearly $ 150 billion. As the
appointment of CFO Douglas Lvester the market value of coke show continued to
increase until mid 1998. Suddenly the market value of Coca-Cola decrease late
November 2003 as 115$ billion. Douglas the chairman replaced the lvester as chairman
and CEO in 2000.

Review Question # 1
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Henri Fayol’s five rules of management

 Planning
 Organizing
 Leading
 Controlling

Now one by one we apply all these rules of management to coca-cola case study.

1) Planning:
Planning is the first tool of the four functions in the management process. The
difference between a successful and unsuccessful manager lies within the planning
procedure. Planning is the logical thinking through goals and making the decision as to
what needs to be accomplished in order to reach the organizations’ objectives. In
planning it is a responsibility to figure out what the company should do to become more
valuables and to produce returns for shareholder and investor, as well as to add
something to the world. To do this company have look at their asset and their markets
and the relevant economics, political, and social trends and decide on the most promising
combination of those factors. Then they create a plan for shaping the business in to that
combination and making sure that their products, sales, and operations are all consistent
with that plan.
“In the planning company define goals, establish different
strategies for achieving these goals and develop plans to
integrate and coordinate activities.”
The company coordinates with their employees and takes initiative steps to increase the
market value of coca-cola company. The coca-cola company has positioned itself through
decision making and coordination with the management team. Coca-Cola has not been a
company noted for innovation: it was almost 100 years that it introduced new Diet Coke.
It is also a part of planning that they must introduce new things in market in the name of
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Diet-Coke. Earlier company achieves its position through coordination with employees
through his efficiency and effectiveness of plans. Managers use this process to plan for
the future, like as 2002 period represented unprecedented innovation Vanilla Coke, Diet
Vanilla Coke and Diet Coke with lemon. The Coca-Cola Company has positioned itself
for growth by moving key decision making closer to local markets and by fostering
deeper connection to consumer.
Twenty four division and operations presidents report to the chief operating
officers. This group of individuals, along with Coca-Cola employees and partners
worldwide, are responsible for implementing the six strategic priorities that are laid out in
the 2002 annual report are the part of the planning.
 Accelerate carbonated soft-drink growth.
 Selectively broaden our family of beverage brands to drive profitable growth.
 Growth system profitability with bottling partner.
 Serve customers with creativity and consistency.
 Direct investment to highest-potential areas across market.
 Drive efficiency and cost effectiveness every where.
 Coca-Cola is hoping to achieve profitability through economies of scale and by
capitalization on its existing distribution system.

2) Organizing:
"In the organizing function management arranging and
structuring work to accomplish the organizations
goals”

In the organization function the management determine what task are to be done, who is
to do them, how the task are to be grouped, who reports to whom, and where decision are
to be made. In order to reach the objective outlined in the planning process (Goals),
structuring the work of the organization is a vital concern. Organization is a matter of
appointing individuals to assignments or responsibilities that blend together to develop
one purpose, to accomplish the goals. These goals will be reached in accordance with the
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company’s values and procedures. A manager must know their subordinates and what
they are capable of in order to organize the most valuable resources a company has, its
employees. This is achieved through management staffing the work division, setting up
the training for the employees, acquiring resources, and organizing the work group into a
productive team. The manager must then go over the plans with the team, break the
assignments into units that one person can complete, link related jobs together in an
understandable well-organized style and appoint the jobs to individuals.
Twenty four division and operations presidents report to the chief operating
officers. This mean that twenty four divisions inform all the information about the
company to the chief operating officer and operation president must also inform the chief
operating officer. These are all subordinate of chief operating officer. These are all
people who play a vital role in the running of Coca-Cola Company, and they share all the
information to each other when they required.
For-example how Coca-Cola is organized a group work.
 Who’s report to who about the soft-drink growth through accelerate carbonated?
 How they can grow system with the connection of bottling partner?
 Who serve customers with creativity to generate growth across all channels?
 How they can direct investment to high potential areas across market? What they
gain?
 Who and when they can drive efficiency and cost effectiveness every where.
 Who achieve profitability through economies of scale, which resources are
required for this purpose?

3) Leading:
“In the leading function, how the management involves
in working with and through people to accomplish
organizational goals.”

When managers motivate subordinates, help resolve work group conflicts,

influence individuals or teams as they work, select the most effective
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communication channel, or deal in any way with employee behavior issues, they
are leading. Organizational success is determined by the quality of leadership
that is exhibited. "A leader can be a manager, but a manager is not necessarily a
leader”. Leadership is the power of persuasion of one person over others to
inspire actions towards achieving the goals of the company. Those in the
leadership role must be able to influence/motivate workers to an elevated goal
and direct themselves to the duties or responsibilities assigned during the
planning process. Leadership involves the interpersonal characteristic of a
manager's position that includes communication and close contact with team
members. Managers are there to motivate workers to fulfill the goals of the
company and out-perform their competitors. They as leaders have day to day
contact with workers using open communication and are able to give direction
individually as well as within teams, departments and divisions. Management is
there to inspire subordinates to ‘step up to the plate’ and find innovative means to
solve department problems. Authorizing staff to have the capability to deal with
situations is a significant part of leading. Coca-Cola has also restructed with
management team coordinating a new nimble and entrepreneurial network. As
one of his first act as CEO, Draft axed 6,000 employees many of them middle
and senior managers in Atlanta. So there must be a leader who controls all the
new 6000 thousand employees and look-after them, if they face any problem in
the company then leader must solve the problem and guide them to achieve the
company goals.

4) Controlling:
“It is management function that involves monitoring,
comparing and correcting work performance.”

After the goals and plans are set(planning), the tasks and structural
arrangements determined (organizing), and the people hired, trained, and
motivated(leading), there has to be some evaluation of whether things are
going to as planed. To ensure that goals are being met and that work is being
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completed as it should be, managers must monitor and evaluate the

performance. Actual performance must be compared with the previously set
goals. If the work performance of actual is not good then we can say that the
planning is not good, so we check the areas from where the company can not
get the desired results and then rectify that problem or constraint. The
process that guarantees plans are being implemented properly is the
controlling process. ‘Controlling is the final link in the functional chain of
management activities and brings the functions of management cycle full
circle.’ This allows for the performance standard within the group to be set
and communicated. Control allows for ease of delegating tasks to team
members and as managers may be held accountable for the performance of
subordinates, they may be wise to extend timely feedback of employee
accomplishments. Department daily meetings are used to review the daily
schedule, prevent problems and to ascertain when problems do exist in order
to address and solve those that occur as quickly and as efficiently as
possible. Control is the process through which standards for performance of
people and processes are set, communicated, and applied. Controls are
placed on employees by requiring the completion of daily responsibilities and
guidelines, by possibly taking disciplinary action when necessary. Managers
and supervisors are given work performance evaluations that are a form of
control as it connects performance assessments to rewards and corrective
actions. Evaluating employees is a continual process that takes place
regularly within the company.

Note:
The four functions of management planning, organizing, leading and
controlling, assume a great worth in the success of any business every day.
In all organizations, each employee’s individual contribution to the success of
the company is of enormous importance as the company’s goals would not be
met and success would not be reached. Even with room for improvement,
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Company has the appropriate functions of management in position to be a

long-term success.

Review Question # 2

Relation of the quote to the case study and behavioral

approaches

The behavioral approach has largely shaped how today’s

organizations are managed. From the way that managers design jobs to the way
that they work with employee teams to the way that they use open
communication, we can see elements of the behavioral approach. Much of what
the early OB advocates proposed and the conclusion from the Hawthorne
Studies provided the foundation for our current theories of motivation, leadership,
group behavior and development, and numerous other behavioral topics. The
statement of diversity has some element which is an integral part of the
behavioral approaches to management.
Countries are varying their ethnic and racial makeup. At one
extreme is Japan, where almost everyone is Japanese. At the other extreme is
the United States, with the people from virtually all nations. The United States
has often been called a melting Pot-Diverse groups fro many nations and
cultures have melted into a single, more homogenous whole. Instead, the United
States seems to have become more of a “salad bowl| in which various raced
group have mixed together but have maintained their diversity by retaining and
valuing important ethnic and culture differences. The U.S population is about
67% white, with Hispanics at 14.4%and African Americans at 13.4%.The U.S
Asian American population now totals about 4% of the total population, with the
remaining 1% made up of American Indian, Eskimo and Aleut, and more than
12% of population born on other countries.
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Most large companies like as Coca-Cola now target specially

designed products, ads, and promotions to one or more of these groups.
Diversity goes beyond ethnic heritage. For-example many big companies have
recently begun to explicitly another target (Sexual orientation) Gay and Lesbian
consumers. Another attractive thing is the nearly 60 million people with
disabilities in the United States-a market larger then African American –
representing over 22$ billion in annual spending power. This market is expected
to grow as the baby boomers age. People with disabilities appreciate products
that work for them.
Technological environment forces create new technologies, creating new
product and market opportunities like as innovation. The technological
environment changes rapidly. Think of all of today’s common products that were
not available 100 years ago, or 30 years ago.
Culture The set of basic values, perceptions, wants and behaviors
learned by a member of society from family and other important institutions.
Subculture is a group of people with shared value systems based on common
life experience and situations. Social Class is relatively permanent and ordered
divisions in a society whose members share similar values, interests and
behaviors. The cultural environment is made up of institution and other forces
that affect the society’s basic values, perception, preferences and behaviors,
people grow up in a particular society that shapes their basic beliefs and values.
People in a given society hold many beliefs and values. Their core beliefs and
values have a high degree of persistence. For-example most American believes
in working, getting married, giving to charity, and being honest. These beliefs
shape more specific attitudes and behaviors found in every daily-life. Core beliefs
and values are passed on from parents to children and are reinforced by schools,
businesses and governments. The major cultural values of a society are
expressed in people’s views of them selves and others, as well as in their views
of organizations, society, nature and the universe.
People coming from the same subculture, social class, and occupation
may have quite different lifestyles. Lifestyle is a person’s pattern of living as
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expressed in his or her psychographics. It involves measuring consumer’s major

AIO dimensions
 Activities (work, hobbies, shopping, sports, social events)
 Interests (food, family, fashion, recreation)
 Opinions (about themselves, social issues, business, products)

Thus Company keep close track of demographic trends and developments

in their markets, both at home and abroad. They track changing age and family
structures, geographic population shifts, educational characteristics, and
population diversity. Here we discuss changing age structure of the population
 Baby Boomers: After the 2nd World war who had born between (1946-
1964).
 Generation X: The baby boom was followed by a “birth dearth”
(1965-1976)
 Generation Y: It is also called echo boomers(1977-1994)
Different aging people have different demand of goods, so the company make
the good to keep in mind all the ages of people needs and wants, and then he
prepare that goods

Conclusion:
We assumed that people who were “different” would want
to assimilate, but we now recognize that employees do not set aside their
cultural and lifestyle preferences when they come to work. The challenge for
managers, therefore, is to make their organizations more accommodating to
diverse groups of people by addressing different lifestyles, family needs and
work styles. Smart managers recognize that diversity can be an asset
because it brings a broad range of viewpoints and problem-solving skills to a
company, and additionally helps organization better understand a diverse
customer base.
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Review Question #3

How does Coca-Cola score on the attributes of performance excellence?

1. Coca-Cola produces more than 300 brands worldwide in addition to its

flagship brands.

2. The bottling and distribution system is also adapted to local needs. For
instance, all bottlers are local companies either independently owned by
the Coca-Cola Company

3. Coca-Cola prides itself on acting as local citizen in a global market place.

4. After 100 years of introduction of Coke that it introduced Diet Coke.

5. 2002 year represented a period of unprecedented innovation-Vanilla

Coke, Diet Coke, Diet Vanilla Coke, and Diet Coke with lemon to attracted
new consumers.

6. Carbonated beverages have been the back bone of the Coca-Cola

Company that was accounted for 85% of sales.

7. The company has positioned itself for growth by moving deeper

connection to consumers, it has also restructed, with a management team
coordinating a new nimble, and entrepreneurial network.

8. Direct Investment to highest potential areas across market.

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9. Establishing disciplined routines and gaining economies of scale in

material and ingredient purchasing.

Review Question #4

Roberto goizueta increases the sale of coca cola that’s why the growth of coca-
cola increase and market value also increased from $4 billion to $150 billion
under the leadership of Roberto goizueta because he had the long experience for
regaining the growth and the market value of coca-cola .After that in 2003 the
market value of coca-cola decline from 150 to 115 billion because the company.
Douglas draft president and chief operating officer, with 30 years of coke
experienced replaced the Lvester as chairman and CEO in 2000.
Douglas draft as CEO put his letter to share owner responsibility for the world
most belonged and valuable brand requires extreme care in how, when and why
extended .he say that we don’t risk consumer loyalty brand or seek and artificial
bump in volume by spinning out product after product to chase the latest fad. In
2002 represented the innovation in form of new flavor of coke like vanilla coke
diet coke and lemon attracted new consumer. They counted the 85% sale
.company acknowledge the changing new consumer taste has fostered a
continued expansion of its noncarbonated beverage. Growth sale of 2001 to
2002 of noncarbonated was 28%. The growth, flued both by internal and through
acquisition and licensing agreement. Coca-cola hoping to get through the
economy of scale profitable sale and by capitalizing on its existing distribution
system.
Conclusion: Thus the Douglas draft can be successful for regaining the growth
and value experience under the Roberto Goizueta. He introduced in products in
market.

Research Question#1
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Stock Price declined since 1998-2003. What happened to revenues and

income over the same period?

All the businesses incur some debts as a result of normal business operations.
These include, for-example, accounts payable and accrued liabilities. But many
businesses aggressively use long-term debt, such as mortgages and bonds
payable, to finance growth and expansion. The market value of the company
decreased from 150 $ billion to 115 $ billion from 1998 to 2003. This is all due to
the bad policies of Douglas Lvester.
Due to decrease in the stock price many of the investor would not invested in the
company, so company has not a enough amount to invest in that areas where
that are getting maximum interest, so day by day stock price of Coca-Cola
company stock price is declining.

Research Question#2

Beliefs
The world is changing all around us. To continue to thrive as a business over the
next ten years and beyond, we must look ahead, understand the trends and
forces that will shape our business in the future and move swiftly to prepare for
what's to come. We must get ready for tomorrow today. That's what our 2020
Vision is all about. It creates a long-term destination for our business and
provides us with a "Roadmap" for winning together with our bottler partners

Mission, Vision & Values

The world is changing all around us. To continue to thrive as a business over the
next ten years and beyond, we must look ahead, understand the trends and
forces that will shape our business in the future and move swiftly to prepare for
what's to come. We must get ready for tomorrow today. That's what our 2020
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Vision is all about. It creates a long-term destination for our business and
provides us with a "Roadmap" for winning together with our bottler partners.

Our Mission:

Our Roadmap starts with our mission, which is enduring. It declares our purpose
as a company and serves as the standard against which we weigh our actions
and decisions.

• To refresh the world...

• To inspire moments of optimism and happiness...

• To create value and make a difference.

Vision:
Our vision serves as the framework for our Roadmap and guides every aspect of
our business by describing what we need to accomplish in order to continue
achieving sustainable, quality growth.

• People: Be a great place to work where people are inspired to be the best
they can be.
• Portfolio: Bring to the world a portfolio of quality beverage brands that
anticipate and satisfy people's desires and needs.
• Partners: Nurture a winning network of customers and suppliers, together
we create mutual, enduring value.
• Planet: Be a responsible citizen that makes a difference by helping build
and support sustainable communities.
• Profit: Maximize long-term return to shareowners while being mindful of
our overall responsibilities.

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

Winning Culture:
Our Winning Culture defines the attitudes and behaviors that will be required of
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us to make our 2020 Vision a reality.

Live Our Values:

Our values serve as a compass for our actions and describe how we behave in
the world.

• Leadership: The courage to shape a better future

• Collaboration: Leverage collective genius
• Integrity: Be real
• Accountability: If it is to be, it's up to me
• Passion: Committed in heart and mind
• Diversity: As inclusive as our brands

• Quality: What we do, we do well

Focus on the Market :

• Focus on needs of our consumers, customers and franchise partners

• Get out into the market and listen, observe and learn
• Possess a world view
• Focus on execution in the marketplace every day

• Be insatiably curious
Work Smart:

• Act with urgency

• Remain responsive to change
• Have the courage to change course when needed
• Remain constructively discontent

• Work efficiently
Act Like Owners:

• Be accountable for our actions and inactions

• Steward system assets and focus on building value
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• Reward our people for taking risks and finding better ways to solve
problems

• Learn from our outcomes -- what worked and what didn’t

Be the Brand:

• Inspire creativity, passion, optimism and fun

Research Question#3

Diversity:
The Coca-Cola Company is built around two core assets, its brand and its
people. These two assets give us the opportunity to keep our central promise: to
refresh the world in mind, body, and spirit, and inspire moments of optimism; to
create value and make a difference. By building an inclusive workplace
environment, The Coca-Cola Company seeks to leverage its worldwide team,
which is rich in diverse people, talent and ideas.

At The Coca-Cola Company, diversity is not just about Human Resource policies
and practices. It is an integral part of who we are, how we operate and how we
see our future. As a global business, our ability to understand, embrace and
operate in a multicultural world -- both in the marketplace and in the workplace --
is critical to our sustainability.

We strive for an inclusive culture that is defined by our seven core values:
leadership, passion, integrity, collaboration, innovation, quality, and
accountability. Each day we work to bring these values to life through our
diversity workplace strategy. This strategy includes programs to attract, retain,
and develop diverse talent; provide support systems for groups with diverse
backgrounds; and educate all associates so that we master the skills to achieve
sustainable growth

It is define diversity as

1) Respecting individuals
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2) Valuing differences

3) Representing our consumers and the markets where we do business.

Our diversity strategy is centered on the 4Cs: We focus on driving

consumption, fostering commitment, building a culture that values diverse
perspectives, and promoting effective communication and mutual
understanding.

We work hard to ensure an inclusive and fair work environment for our
associates, all of whom undergo diversity training on a regular basis. Such
training includes ongoing dialogue that leads to better understanding of our
colleagues, our suppliers, our customers, our stakeholders, and ultimately, to
greater success in the marketplace

Our Progress:
According to the 2006 Employee Insights survey, 96 percent of associates
agreed that the Company has established diversity as an important component of
its business strategy

DiversityInc
The Coca-Cola Company came in at No. 4 on The 2007 DiversityInc Top 50
Companies for Diversity® list and performed well in two DiversityInc specialty
categories

Human Rights Campaign

For the second straight year (2007), the nation's largest lesbian and gay rights
organization, The Human Rights Campaign (HRC), has given The Coca-Cola
Company a 100 percent rating for its workplace policies for gay, lesbian, bisexual
and transgender (GLBT) associates

Hispanic Business
The Company also ranked No. 17 on Hispanic Business magazine's "Diversity
Elite 60." The annual ranking, featured in the publication's September 2007
issue, is determined by more than 30 variables that measure companies'
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commitments to Hispanic hiring, promotion, marketing, philanthropy and supplier

diversity. According to Hispanic Business, companies on this year's list went
beyond workforce diversity initiatives and implemented strategies to reach more
Hispanic consumers and increase their businesses with minority- and Hispanic-
owned suppliers.

Essence
The Coca-Cola Company made Essence magazine's 2007 list of the top 25
employers for African-American women. Essence compiled this year's list by
asking more than 60 business insiders -- headhunters, human resources
representatives, research firms and nonprofit organizations -- to nominate
companies with solid reputations for hiring, retaining, supporting and promoting

Workplace Culture:
We have continued our communications efforts through our online Diversity as
Business newsletter, our Diversity Speakers Series, training, workshops, updates
from our Diversity Advisory Council and Employee Forum programming.

Diversity Education & Training:

Our diversity education efforts have moved from minimizing differences to
amplifying, respecting, and valuing them to help drive business results. We know
that ongoing diversity training helps drive employee engagement, create a work
environment that visibly values and leverages diversity and accelerates
productivity.