THE COCA-COLA COMPANY 4
Running Head: THE COCA-COLA COMPANY
The Coca- Cola multinational Company is based in America and is a key player in the Beverage industry across the globe. It is a leading producer of beverage drinks and products that are non-alcoholic. Apart from production, it markets and retails its products, which may come in form of soft drinks, syrups, concentrates, drinking water, soya- based drinks, fruit juices, canned coffee and so much more. The Coca-Cola formula was first developed by a pharmacist known as John Stith in the year 1886, in Atlanta. The coca cola brand formula was then sold to Griggs Candler for 2, 300 US dollars, in the year 1889. Currently, the company’s main headquarters are in Atlanta, Georgia.
The current CEO of the company is James Quincey, the president is Brian Smith, and the chairman is known as Muhtar Kent. Other key officials include chief marketing officer, Chief people officer, Chief legal counsel and General Counsel, Vice president Chief of customer service and the chief information officer. The company is run by a board of directors, 14 in number. The Coca –Cola Company was valued at 87 billion US Dollars with an estimated net income of 1.248 Billion US dollars in 2017. The company is a large employer, with an employee population of over 150, 000 individuals. It has branches in more than 200 countries.
The coca cola company, being the multinational company it is, is affected by very many factors. These factors may be both from the external and internal environments. The external environment of any given company has the power to influence the entire operation and functioning of the company. Some key external environment factors that can affect the success of the company include Customers tastes and preferences, and demographic layout and patterns.
To begin with, customer tastes and preferences have the power to influence the success, growth, and existence of the Coca-Cola Company. This is because all the products that the company produces are meant for consumption by individuals. This means that the company would not grow or even exist if people decide not to consume its beverage products. In the knowledge of this, the company has made several key steps to ensure they attract customers and retain them, through brand loyalty. This is due to stiff competition from other beverage producers such as Red Bull, PepsiCo, Nestle, and Dr. Pepper Snapple. The major most step that coca cola has taken to satisfy its customers and meet their needs are as outlined. The first one is the production of a variety of products such as Fanta, Sprite, Diet Coke and Coca-Cola Zero. This ensures that a larger group of the market is covered including people who prefer diverse flavors, diabetics and weight watchers. For instance, Diet Coke is free of calories and sugars. This diversity has seen it maintain its lead and continuous growth in the beverage industry worldwide.
The other external factor is demographic patterns. Demographic patterns mean the geographical area the company covers, as well as the target market and their characteristics including the population size, the age of most people, gender, average employment, and income levels as well as the technological advancement in the area. The Coca- Cola Company has been very keen in observation of its demographics. This is seen from how it launches different products in different countries. It does not just offer a similar product for everyone; it first observes the behavior and characteristics of consumers. For them, their customers are not only individuals who drink coca cola. Instead, customers serve as an umbrella of its distributors, canners, specialists, and bottlers. For example, fruit-flavored drinks such as Fanta and sprite are mainly found in low and middle-income countries, where people can easily afford them.
Additionally, canned drinks main target market is teenagers from middle-income households. In countries with high temperatures, you will find that apart from carbonated cola drinks, there are coca cola branded mineral waters such as Dasani. Diet Coke is highly sold in America, where very many individuals are conscious of their calorie and sugar consumption. It is clear that the coca cola company is observant of the demographic patterns that affect its operations and success.
Primary Stakeholders of a company are those individuals who have a direct financial or functional interest in the performance of an organization. Coca- Cola’s primary stakeholders, include the company’s shareholders, suppliers, customers, employees, NGOs, management, creditors, government and sponsors. Such individuals can influence the financial performance of the company in the following five ways: the amount of dividends given to shareholders, how to distribute equity of the company, the amount of revenue to be allocated towards salaries, wages and remuneration of employees, how and where the company will carry out corporate social responsibility as well as their source of capital and taxable capacity. All these decisions are made by the stakeholders of any organization, Coca-Cola included, and they affect how the company performs financially. For instance, the Coca- Cola company tax policy complies fully with the global tax compliance act. They are taxed a variety of taxes such as customs duties, stamp duties, corporate taxes, and employee taxes. If a government in a country the company operates in decides to raise the tax rates, then the company’s finances will be reduced significantly. This will affect other primary stakeholders in a ripple effect. Employee salaries may go down, prices for customers may go up, and dividends to shareholders may reduce. The decisions made by the company’s primary stakeholders are therefore interdependent and affect the other stakeholders.
Despite Coca Cola’s efforts to positively impact society, there is one of its particular corporate social responsibility that is of concern. The company often makes headlines in the news all over the world, concerning the role it plays in “promoting” obesity. This is because most of their carbonated drinks are full of high amounts of calories and sugars. To provide a solution to the problem, the company has held several campaigns against obesity, especially in children. People are calling out the company for making profits through “handing out the gift of obesity” to children. In its defense, the company’s campaigns advocate for exercising and states facts such as obesity being a result of so many other factors such as genetics, culture, economics and the environment.
In conclusion, it is undeniable that the Coca –Cola Company is a giant of the worldwide beverage industry. It has grown tremendously since its birth, and its brands and products have penetrated a vast part of the world, turning the company’s name into a household name. The company’s proper governance and operation have been an enormous influence in its success. Despite the controversies in the effects of the products, it produces due to high sugar levels, and caffeine in the drink, Coca – Cola products are still in high demand. This situation seems to remain a constant as very many people all over the world love the company’s beverages and products.