Background information of coca-cola company - 1925 Words

Background information of coca-cola company (Essay Sample) Content: Background information of coca-cola company The Coca-Cola Company was invented by pharmacist John Stith Pemberton in the year 1886 in Columbus Georgia. It is an American beverage corporation dealing in manufacturing, marketing and retailing of beverage products. Coca-Cola Company also deals in the distribution of franchised products which is then sold to companies with the lucrative sale. Never the less Coca-Cola Company manufactures its anchor bottler in North America. Its head operation office is located in Atlanta Georgia, where all the management and operational activities are carried on. Initially, the beverage was sold at soda fountains at approximately 5 cents per serving of glass. This made the sales to be cumbersome and ultimately low rate of turnover. Before his death in 1888, the founder, John Stith Pemberton sold parts of his business to various groups, a significant share going to an Atlanta investor, Asa Candler. This businessman expanded the company's operations beyond this town. A heightened demand for the beverage and the need to make it reliably portable later led to the installation of the bottling machinery in Mississippi by Joseph Biedenharn in 1894. It was five years later that large scale production was achieved after Benjamin Thomas, Joseph Whitehead and John Lupton invented what has been improvised into the present day Coca-Cola bottling system (Hays, 2004). By 1893, with Candler's marketing strategy, sales of the carbonated syrup- as it was initially known rose immensely. He created banners, calendars, serving trays, posters, paper fans, clocks and other household giveaways bearing the coca-cola trademark. And with booming sales, manufacturing plants were opened in Dallas, Texas in 1893 and the following year in Chicago, Illinois and Los Angeles, California. This catapulted the rate of distribution and satisfaction of the demand and supply dynamics in all the United States and territories. The challenges the company faced at this stage were branding and packaging problems as the different bottlers manufactured their unique soda bottles. Furthermore there was stiff competition from imitator bottling plants that were about 1000 at the time. Coca-cola and its satellite franchisers agreed on a need to make a standardized and distinctive packaging bottle. This contour bottle was approved in 1916, a move that set the company above the rest. It was so unique and conspicuous even in the dark appropriately creating a new niche for the firm to expand regionally and later globally after being trademarked in 1977 (Carpenter Sanders, 2014). Coca-cola certificate of incorporation The coca-cola company is a corporation founded and operating under and by way of the General Corporation of the State of Delaware on September 5th 1919 after a group of businessmen led by Ernest Woodruff bought it for $25 million. Its stock was put on sale on the New York Stock Exchange with prices of $40 and $100 per share for common and preferred shares respectively. This certificate later underwent reforms in the 1990s. The changes were as follows: First: that the name of the company will be THE COCA-COLA COMPANY, Second: The company will have its registered office located at Corporation Trust Center in the state of Delaware, Third: stipulates the type of business engagement or objects or proposed purposes to be transacted, Forth: number of shares the company shall have authority to issue and the Fifth which Directs declaration and payment of shares, liquidation, dissolution or winding up procedures The Sixth: states that the corporation shall have permanent existence, Seventh: that the separate properties of the stockholders shall not be exposed to the settlement of the corporate debts whatsoever, Eighth: authority of issuance of shares solely rests with the Board of Directors, Ninth: states regulations and conduct of the corporation affairs and powers of the directors and stakeholders and finally the Tenth that shows the cases in which a single director would be personally responsible- for the monetary losses, breach of duty and liability cases. On 27th July 2012, the certificate further witnessed more reforms- deletion of article FORTH and insertion of clauses changing the issuable shares and the powers and authority of directors regarding the same (Nikolai, Bazley Jones, 2010). Advantages of coca-cola company Coca-Cola company apart from providing beverages that hydrate, nourish and energize the consumers, it also has other benefits that are tailored to lend hand in the corporate service and encourage existing customers or acquire new markets. These can be divided into 2 categories: Strategic advantages These are the initiatives the company is taking to achieve its goals and objectives. They are: The company has tried and tested business models in the line of beverages that has been helpful in start-ups and running of related and non-related companies; Constant innovations, joint ventures, acquisitions and takeovers that has greatly developed and expanded the company profitability has acted as reference and example for emulation by other companies and businesses; Coca-cola has also invested heavily on tactics that are customer centered: selective packaging and go-to-market strategies, strengthening selling capabilities in order to get closer to the clients and broadening of the geographical footprint has contributed to immeasurable benefits to healthier competitive environment locally and internationally. Competitive advantages Business partnerships: it has plans for joint operations, mergers and new acquisitions that have helped it acquire unexploited markets, introduce, diversify and firmly gain its customer loyalty in its beverage portfolio. Market advantage: the company has its operations in almost all countries in the world there fore has an established competitive edge than its rivals. Brand portfolio: coca-cola has been sensitive to its client base all the time since its inception and trade marking satisfying the changing customer needs, tastes and preferences through initiatives ranging from unique and attractive bottling and packaging, multi-cultural sensitivity and introduction of new products while still upholding the Coca-Cola brand. Channel marketing: being an international organization, the company has a large client base with diverse needs and tastes. It has nonetheless used different approaches that have ensured sustained penetration into the inaccessible of markets through market segmentation, classification and distribution of products in line with the specific expectations and demand. Collaborative customer relationships: this is how the company has deepened its customer relations that have contributed to loyalty and sustainability. This has been done by tailoring products and packaging to suit the local market's socioeconomics and demography. The distribution of ideas with all stakeholders from the point of going to the market to the point of sale implementation so that individual and collective efforts count thus collaboration. Full operating potential: this is a cultural strategy the company has developed to work for more with less. It involves maximization of manufacturing, distribution and efficiency by being adaptable and seeking market intelligence to be more refined in execution of its activities yet satisfactorily meeting its client needs. flexible sales and distribution models: coca-cola uses several marketing models that range from: pre-sale system- a method that detaches the sales and delivery duties to increase output; the conventional truck loading system- the person delivering can make sales from the stock in the truck; hybrid distribution system-the same truck transporting goods previously ordered also carries other products available for immediate sale; the telemarketing system that apart from the above incorporates pre-sales visits and finally sales through third-party wholesalers. Managerial expertise: the success of this company has also been dependent on the quality of the management. The experience, skills, trainings, exchange programs and talent development has greatly influenced the human resource out-put both I the mother company and its multi-faceted affiliates. sustainable development and corporate service: the company has entrenched and far-reaching programs and projects that have been tailor-made to create and develop social and economic value by improving the esteem of employees, promoting and funding health-supporting and well-being initiatives to the near-by communities and environment and to the selected most-at-risk persons all over the world (Hays, 2004). Organizational structure The coca-cola company has a separate international division structure- its international employees operate separately and independently from the head office in Atlanta Georgia. It has 5 continental divisions. The divisions in these continental regions are headed by presidents who control them. He/she is deputized by a vice president who controls the sub-divisions based on regions or countries. The divisions are: Eurasia and Africa group, Europe group, Latin America group, North America group and Pacific group. Diagrammatic representation of the coca-cola organizational structure and how it works: How the structure operates The organizational structure operates as an ethnocentric multi-national corporation as its national and domestic operations are mirror image of the international operations. This type of structure has simplified management and improved communication and control from the head office. Supplier relations Suppliers are the individuals, parties or companies that provide a system of goods and services that are used as raw materials and input for production. Coca-Cola Company treats its suppliers as partners stocking it with production ingredients, packaging and machinery as...