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Organizational Anlysis of Coca-Cola

Choose an organization that sells goods of some sort.

- History and background of the organization, also including the types of goods sold and industry in which the organization operates.
- The organization's supply chain characteristics -- type of supply chain, negotiations strategies, performance of the supply chain, and areas for improvement.
- Approach to maintaining a competitive advantage, and if applicable the global business operations strategy.
- The organizations' production processes, customer interaction in those processes, if applicable, and the technologies used in production.
- The organization's commitment to quality and excellence and how that is measured and reported.
- The organization's inventory methodologies and model(s), and any areas for improvement.
- The organization's operational planning policies, job designs, and work environment issues, if any.
- The organization's movements, if any, toward lean processes, and the effects of those lean processes on culture, efficiency, and success.

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Organizational history and background (Coca-Cola)
Original Coca-Cola was created by John Pemberton in 1886 and initial sales were made in a pharmacy in Atlanta where it was mixed with carbonated water and sold for five cents. Pemberton sold part of his interest to Griggs Candler and the company was incorporated in 1888 as Coca-Cola Company. Pemberton also sold his rights in the company to four other individuals. In an attempt to gain an advantage over the competing firms, Candler bought exclusive rights to Coca-Cola formula from the innovators. Allegations of fraud in acquiring the rights, Candler registered another company under the name The Cola-Cola Company which exists up to date. Over the years has the brand has continued to grow in popularity and may be considered a national drink in the United States and is also popular across the world. Coca-Coal was listed in the stock market in November 21, 1986 at a price of $ 5.50.

Coca-Cola has established itself as the leading producer and marker of soft drinks globally and the company has increased sales modest 9 bottles at the beginning to over 1.7 billion bottles per day (Coca-cola, N.D). The organization is a major employer with an estimated 139,600 employees working for the organization (Coca-Cola, N.D). Coca-Cola has more than 3,500 beverages and it markets its products to over 200 countries (Coca-Cola, N.D). The company has been able to maintain competitive advantage over other players in the sector through innovation and re-branding. The Coca-Cola Company prides itself in producing soft drinks through customer research and being able to adapt to change. The overall objectives of the organization is to increase volume, increase market share in non alcoholic beverages sales and establishing economic value added by improving economic profit.

Coca-Cola has restructured its organization and the hierarchy in the company includes the Chairman board of governors followed by Vice Chairman and Chief Operating Officer. Top management members are Executive Vice Presidents, Senior Vice Presidents and Vice Presidents. The strategy implemented by the management has worked successfully so far with company registering 5% growth in unit case volume and 16% increase in operating cash flow to $ 9.5 billion. Coca-Cola (N.D) provides that nearly 70% of total operating revenue and 80% total unit case volume were generated outside North America.

Coca-Cola offers a over 3,500 brands which are categorized into energy drinks, soft drinks, tea and coffee, water, juices and others. The company is well known for its soft drinks brands that include Diet Coke, Sprite, Fanta and Coke. due to the large geographical area that the company offers its products, the organization operates by developing and selling concentrates, beverage bases and syrups to bottling companies all over the world. Bottling partners are involved in bottling manufactures, package and distribute end result beverages to consumers and other selling partners.

Coca-Cola system is a multi entity both legally and from a management point of view. This is because the company does not own or have a controlling interest in most of its bottling partnerships. The company's partners sell its products on behalf of the organization and they accounted for 79% of total unit case volume during 2007 financial year.

Coca-Cola recorded improvement in net operating revenues to $ 35,119 million in 2010 which is 13.3% increase compared to 2009. The Company also registered high amounts of net income ($ 5.12 million) an increase by 73.6% compared to 2009 (Coca-Cola, N.D).

Organizational supply chain characteristics
Coca-Cola's supply chain is characterized with partnerships that assist the organization to attain its objectives. The Coca-Cola system produces concentrates and syrups while ...

Solution Summary

This solution provides a detailed business analysis of the Coca-Cola Corporation.