The coca cola company

Nature, Structure and type of company

Coca cola is the largest seller of soft drink all over the world. It was established in
8th may 1886 in Atlanta. Coca cola started its business from United States and had
spread its business in each part of the world. It is providing many types of flavors in
soft drink including mango, lemon and orange and also has started up with water
bottles, juiced products and energy drink. Name of some of its products are Sprite,
FANTA, Diet coke, Coca Cola zero, DASANI, Minute maid, CIEL, coca cola light,
MELLO YELLO, FUZE etc. [1]
Coca cola is having works in isolation for each country. It has a separate divisional
international structure and its international staff works in isolation from head office.
Is has various divisional head for each continents where it is having business. There
are 5 continental divisions of coca cola as listed below- [2]
Eurasia and Africa group
Pacific group
Latin America group
North America group
Europe group

Coca cola
Eurasia and
Africa group

Pacific group

Latin America

North America

group

group

Companys code of ethical conduct

Europe group

Company includes discrimination policies, right of employment in its ethical conduct

code with respectful, loyal, diligent and honest norms. Code says not be disclose the
confidential information, plans and strategies being executed in the company, it
remove the politics from the company. More special rules that are included in the
companys ethics code are Relation with customer, facing competition, relation with
suppliers, advertising and marketing, relation with the authorities, anti corruption,
care about environment, relation with the community, safety and occupational
health , conflict of interest and information management.[4]
Issues those are critical for success
For success, the issues from the above can be chosen as competition, advertising
and marketing, relation with customer. If competition does not exist in the market,
the quality is either declined or is made stagnant as it is not required by the
company and thus making low benefits. Advertising and marketing are those issues
which let the product to be known by consumer. Also the relation with the customer

makes the business successful as customer is the elementary key of success of any
organization.

Compare and contrast the code of conduct of Coca cola, PepsiCo and Dr Pepper
There is a difference in marketing strategies among the companies. PepsiCo tries to
make an image on its consumer telling them the difference between Pepsi and coca
cola. It wants to tell people how it is different from coca cola; on the other hand,
coca cola defines its quality and product specification generated from its name. In
the same sense Dr. Pepper works. The pepper present in soft drink is made base line
for brand name telling consumer the ingredient of the product. The taste of cola is
how taken from its brand name.
PepsiCo is having brand with blue color while coca cola is using red color. Red color
is more close to its core product cola. So customers are more attracted toward cola
naturally. Also there was a difference of taste in both the brands. If talked about Dr.
Pepper, it has also adopted the same color for its brand. The products of Dr. Pepper
are not much spread in the world as those of PepsiCo and coca cola.
Pepsi and coca cola has been remaining in competition from a very long time
making advertisement race between each other and thus making high profits. Dr.
Pepper however is somewhat lagging as compared to these two pioneers [5]
Positive and adverse effects of these issues
Positive effects of marketing and advertising are to be in market and remain a well
known brand by the consumers. If we talk about PepsiCo and coca cola, they have
made tremendous marketing strategies and given continuous efforts to these two
factors of success. Also the relation between customers and services are maintained
by these brands. Making customer relationship is a good practice for being
successful in business. To be in completion always gives higher benefits. PepsiCo
and coca cola always remain good competitions while Dr. Pepper does not. The
results are Dr. Pepper was to be merged to another company as it was almost
thrown out of the market because of not being in competition.
Misleading the consumer and making false statements to consumers, distort the
relationship with them. It can have a bad affect on overall economy of the business.
Just like PepsiCo which has always compared its product with coca cola rather than
telling about itself to them. Avoiding such practices helps in making good business.
Consumer must be given a clear idea about the product and how the brand serves
for them. Coca cola has included in ethics of code not to compare its products with
its competitors unnecessarily but it can be made fairly and objectively. A
professional attitude is to be made with the representatives of other competitors
and thus it takes care of its value and image.

Techniques to ensure code of conduct

Marketing and advertising, to be in completion and good relationship with
customers are the necessary ethics to be followed by any organization. There are
some techniques that ensures these ethics are relevant thorough various economic,
political, social and cultural changes. For advertisement and marketing, drafting
cost and sale target is one of the powerful tools. Organization should defile its short,
medium and long term goals. It should give a good description of the product it is
providing. [6] For competition, the most powerful tool is KYC (know your customer).
If you are having requirements and preferences of your customer, a good
competition can be created. Start differentiating your product on the basis of
quality, brand value, packaging and promotion. Always seek to new customer in the
market and build a strong relationship with your existing ones. To build a good
relationship with the customer, think of customer more than as a client. Be honest
all the time and do not give them fake representation. [7]
Effectiveness of methods in order to manage environmental issues
Coca cola is committed to preserve and protect the environment. It comply the
regulation made in favor of environment. Energy utilization, water waste
management solid waste management has been included in its code of conduct.
Energy is one of the inputs of organization that runs its productivity to a very
extent. And also the solid waste and water waste are crucial to protect environment.
Water wasting is not a good practice as some areas are lacking in water resources.
Solid waste produces various toxic elements if not properly managed. So managing
all these is crucial to the organization. [4]
Approaches for technological advancement for innovation
Plant bottle technology coca cola started to use plant bottle technology in 2009. It
was a technological advancement for environmental benefits. The plastic bottles are
now made up of plant instead of pet plastic. It was a combined effort of ford and
coca cola. [8]
Digital technologies intelligent vending machines, cashless gateways and mobile
wallets are such tools that provide to increase the customer using digital medium.
These digital technologies provide Coca Cola Company a great innovation. [9]

Technological challenges and strategies to minimize

Coca cola is adopting technological innovation in terms of new machinery, new
packaging systems and new bottles to reduce the environmental risk. However the
consumers are attached to the previous packaging. They are not concerned over

the environmental issue; just they want their original product they liked. Other
challenges are energy and global health that coca cola might face. In such case
coca cola needs to tell them about the benefits about this change and telling them
the environmental benefits of producing new packaging. Coca cola should recycle
its waste and energy saving equipments should be used.

Lobbying strategy
In Philippine, coca cola was accused to make unfair competition. RC cola, the
competitor of cola made a charge on coca cola for reserving imported bottles of rc
cola in three of its warehouses. In order to obey the decision of government, cola
made statement of fair policy and respect the competition. [10]
The strategy used by coca cola cannot be stated as good competition breaker.
Instead it could increase the quality of its own product rather than stocking
competitors product.

Global corporate citizen efforts and manner of each one

To create new business values and compliance are two efforts by coca cola.
Compliance is about following international guidelines, rules as well as national laws
and regulation. Coca cola has created new business values through developing new
products, processes and technologies and some cases show transformation of its
business models. Examples include developing new markets for carbon emissions
trading, creating new environment technologies, and producing more affordable
access to essential services such as water, food, energy and housing. [12]

References

http://www.coca-colacompany.com/brands/product-descriptions
http://cokemnc.blogspot.in/p/organizational-structure.html
http://assets.cocacolacompany.com/45/59/f85d53a84ec597f74c754003450c/COBC_Engli
sh.pdf
http://www.cocacolafemsa.com/femsa/web/arquivos/KOF%20Business%20Code%20of
%20Ethics%202012.pdf
Company Evaluations: The Coca-Cola Company versus PepsiCo. (2003). Black
Book - U.S. Beverages & Snacks: Volume Growth Returns, But Margins under
Pressure, 252-260

http://www.forbes.com/sites/thesba/2013/04/25/tips-for-building-long-termclient-relationships/
http://www.marketingdonut.co.uk/marketing/marketing-strategy/ten-ways-tokeep-ahead-of-the-competition
http://www.coca-colacompany.com/plantbottle-technology/driving-innovationcoca-cola-and-ford-take-plantbottle-technology-beyond-packaging
http://www.vendingmarketwatch.com/article/10673657/digital-technologydrives-coca-cola-refreshments-vending-innovation
http://www.ukessays.com/essays/business/lobbying-practices-of-the-cocacola-company-business-essay.php
corporate citizenship in a global context corporate social responsibility
initiative working paper no 13, nelsane jane 2004