Investigate Coca Cola Company.

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Kajal Maisuria                                                     Unit 1 – Business at Work

Introduction

This report is to investigate Coca Cola Company. On this coursework I will look at the company on all aspects from their business functions, organisational structures to the company’s objectives. I would have to look at the departments within the business and the functional areas within these departments, also look at the different management styles within the business, looking at the organisational structure, the communication used within the business, and the impact of ICT on the organisations communications.

The Coca-Cola Company is the world's leading manufacturer, marketer and distributor of non-alcoholic beverage concentrates and syrups. Along with Coca Cola, the world’s best known brand, The Coca Cola Company markets four of the world’s top-five soft drink brands, including Diet Coke, Fanta and Sprite. Throughout the world, no other brand is an immediately recognizable as Coca Cola. With operations in more than 200 countries, a diverse workforce comprised of more than 200 different nationalities, communicating in more than 100 different languages, The Coca Cola Company is part of the fabric of life in each of the communities they serve throughout the world. It operates as a local business partner, providing quality in the marketplace, enhancing the workplace, preserving the environment and strengthening the community.

Coca-Cola is the most popular and biggest-selling soft drink in history, as well as the best-known product in the world. Coca-Cola was invented in May 1886 by Dr. John S. Pemberton in Atlanta, Georgia. The name ‘Coca-Cola’ was suggested by Dr. Pemberton's bookkeeper, Frank Robinson. He kept the name Coca-Cola in the flowing script that is famous today. Coca-Cola was first sold at a soda fountain by mixing Coca-Cola syrup with carbonated soda in Jacob's Pharmacy in Atlanta by Willis Venable. During the first year, sales of Coca-Cola averaged nine drinks a day, adding up to total sales for that year of $50. Since the year's expenses were just over $70, Dr. Pemberton took a loss. Today, products of The Coca-Cola Company are consumed at the rate of more than one billion drinks per day.

In 1893, Coca Cola was registered in the United States and then further investment was put into it to expand the business. To handle the enormous capacity of its business, the Coca Cola Company has divided up into six operating units: Middle and Far East Groups, Europe, The Latin America Group, The North America, The Africa Group and The Minute Maid Company. The Head Quarters is situated in the United States. The country that I’m going to be concentrating on is the United Kingdom and how the company works in the U.K.

Action Plan

I drew up this action plan as a guide to prioritise what information I need to complete this report. The method of research I will use the most on this report will be secondary research such as the annual reports, etc.

Coca Cola’s Ownership

The Coca Cola Company is a public limited company (plc). They offer shares to the general public through the company. It is mainly larger companies such as Coca Cola that are public limited companies.

The advantages of a public limited company are:

  • Shareholders have limited liability
  • The sale of shares enables larger sums of money to be raised
  • While the company has this money permanently, the individual owners can recoup their money by selling their shares to others
  • Directors may be brought in as experts in certain fields
  • Produce goods at lower unit cost
  • Due to their size they can benefit from economies of scale, e.g. bulk buying, cheaper borrowing

The disadvantages of a public limited company are:

  • There are a number of legal requirements to fulfil in setting up a company
  • Regulations mean that a company is more expensive to set up than a sole trader or partnership, although the cost may be as little as £100, and some already registered companies can be bought off the peg
  • The accounting of a company is less private than for other forms of organisation
  • The company could become to large resulting in poor labour relations
  • There could be a conflict of interest between shareholders and the Board of Directors
  • Possibility of takeover or merger because shares can be bought by anyone

Coca Cola also have limited liability as they are a public limited company.  A limited company is owned by its shareholders. There is no legal maximum to the number of shareholders. There are two forms of Limited Liability Company in the UK, the Private Limited Company (Ltd) and the Public Limited Company (Plc). The essential difference, between the two, is that the Private Limited Company can not legally offers its shares to the general 'public', therefore this form of company is usually associated with family run businesses. Whilst the Public Limited Company can sell its shares to the general public on the Stock Exchange, providing the potential for far greater finances to be raised.

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The owners of a limited company are referred to as its members, or shareholders. An individual can become an owner of the business by purchasing shares in that business. When the profits of the business are distributed to shareholders, they are distributed in the form of a dividend. The value of the dividend is decided upon not by the owners, but by the Directors of the business.

Some shareholders had invested their life savings and not only lost their money, but their homes, limited liability was designed to protect shareholders from this mistake, but the key motive was to ...

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