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.

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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.

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 ensure that large projects could continue to raise capital.

Coca Cola’s Objectives of the Company

Mainly all companies’ objectives are to survive, maximize their profits and to expand their business, however, from when Coca Cola had started, over the years they had achieved these objectives. So the company have come up with six strategic objectives to provide the company with a framework for the company’s success. In 2003, every function of The Coca-Cola Company integrated these priorities into their business plans. And this year, they will continue to establish these priorities, and their benefits into every aspect of the business.

Coca Cola’s Six Strategic Priorities

1. Accelerate carbonated soft-drinks growth led by coca cola

Coca Cola leads with their strengths. Carbonated soft drinks remain their most profitable business and Coca Cola is the most popular brand in the world. This strategy paves the way for growth.

2. Selectively broaden our family of beverage brands to drive profitable growth

Enormous opportunity exists in categories such as juice and juice drinks, bottled water, teas, energy drinks, coffee and more.

3. Grow system profitability and capability together with our bottling partners

Coca Cola is a company of relationships, and one of our most important relationships is the one we share with our bottling partners. In 2003, those relationships became more profitable and productive.

4. Serve customers with creativity and consistency to generate growth across all channels

We will continually strive to increase growth for the customers’ businesses, helping create a context for the company’s growth.

5. Direct investments to highest-potential areas across markets

Coca Cola tailor their business approach to the individual marketplace based on its stage of development. In this way, we direct our investments in a way that makes the most business sense.

6. Drive efficiency and cost-effectiveness everywhere

By leveraging technology, creating alignment across business units and achieving economies of scale, we are able to operate with more efficiency.

To maximise profits enables the company to enhance the business, to expand the business, allow business to take over another business, buy new machineries, and pay more dividends to the shareholders. Enhancing the business means to upgrade the business in a sense that a business buys new Computers, new office equipments, new furniture, expand the office, employee more labor etc. These six objectives are just not the businesses objectives but they provide the framework for the company’s success. They achieve these goals very successfully by striving for carrying out against a crystal clear strategy for success, and by doing so with an unwavering commitment to quality.

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Departments of Coca Cola

Every organisation is made up of different departments, each of these departments help Coca Cola achieve their objectives. As Coca Cola is a large multinational company, the amounts of departments are huge. Each country has their own Head Office and departments. Coca Cola is geographically split into five geographic operating segments, also known as strategic business units (SBU’s). The five SBU’s are North America, Africa, Asia, Europe, Eurasia and Middle East and finally Latin America. If all these departments perform in the correct way then that will continue the success of Coca Cola.

 

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