What are the key variables that coca-cola must be aware of and how will the world economic cycle impact the Coca-cola? I need it for 4-6 presentation slides.

Group D: Cody, Christiana, Zhan, Batu, Erik, Luka

History of Coca-Cola ● Created in 1886 by an Atlanta pharmacist. ● Beverage started off as a fountain drink but soon gained demand for

portability. ● The brand grew, but they wanted to set the brand apart so in 1916 a unique

bottle was created, however it was not trademarked for another 61 years. ● Come the 1970’s and Coke tried to reflect the brand with “good times, being

together, and fun”. ● The company has made attempts in recent years to attach inclusion and

happiness to the brand. ● https://www.worldofcoca-cola.com/about-us/coca-cola-history/

Products

Management Team CEO: James Quincey

COO: Brian Smith

Asia Pacific President: Manuel Arroyo

Europe, Middle East and Africa President: Nikos Koumettis

Latin America President: Alfredo Rivera

North America President: James L. Dinkins

Corporate Structure

Five Strategic Actions

1. FOCUS ON DRIVING REVENUE AND PROFIT GROWTH

2. INVEST IN BRANDS AND BUSINESS

3. BECOME MORE EFFICIENT

4. SIMPLIFY THE COMPANY

5. REFOCUS ON CORE BUSINESS MODEL

https://www.coca-colacompany.com/stories/five-strategic-actions

Strategic Action: FOCUS ON DRIVING REVENUE AND PROFIT GROWTH

● Each nation in the large market plays a major role in the growth and profitability of Coca-Cola. ● Market segmentation is the main idea behind revenue growth. ● Emerging markets they focus on volume increases, keeping products affordable, and developing a

strong foundation for future success. ● Developing markets they have struck a balance between volume and pricing. ● Developed markets they rely on more on a price/mix to improve profitability by offering smaller

packages, or unique ones. ex. Glass, aluminum ● Creating value for the customers and the company looks differently in throughout parts of the world,

developing products and pricing to help thrive in the markets.

Strategic Action: INVEST IN BRANDS AND BUSINESS ● Coca-Cola made a large investment within its marketing alone, they wanted increase the quality and

the quantity of their advertisement. ● The 250 million dollar investment they made into media advertising has made a major change in the

impact of their ads. Coca-Cola wanted to develop more impactful and meaningful ads. ● They also made heavy investments throughout their beverage portfolio. ● In 2016 Coca-Cola launched a worldwide advertising campaign on their “traditional drinks” that they

labeled as their “Taste the Feeling” campaign. ● They wanted everyone to be able to enjoy Coca-Cola, with or without calories, and with or without

caffeine.

Strategic Action: BECOME MORE EFFICIENT ● Their plan in rebuilding their growth momentum was to increase efficiency and productivity while

overall reducing the costs. ● Investing in more marketing to increase financial stability of the company worldwide. ● They started putting their organizational budget yearly to zero and had to find justifiable evidence to

determine it. ● They make lots of cuts on non-media marketing and made major cuts throughout the supply chain. ● Looking into the future they plan to continue to drive productivity throughout the system and take

advantage of each day.

Strategic Action: SIMPLIFY THE COMPANY ● No other industry in recent years has changed as much as the non-alcoholic beverage industry has. ● The ability to adapt products, be on time and have strong marketing to capitalize in this ever so

changing market. ● To seize this opportunity Coca-Cola changed their operating structure to become faster, more

efficient, and smarter. ● One major step they took was to make Coca-Cola the world’s most exciting, productive and fulfilling

career with workplaces that truly nourish learning, growth and curiosity.

Strategic Action: REFOCUS ON CORE BUSINESS MODEL ● Today their expansive portfolio includes more than 500 brands.

Direction of Future Operations

In 2019, the company expects 4% organic revenue growth and double-digit comparable currency neutral operating income growth. As a global company, Coca-Cola is also impacted by changes in foreign exchange rates, and currency was a major factor in revised guidance for EPS. Coca-Cola expects comparable EPS growth to range from 1% to -1% in 2019.

Despite ongoing macroeconomic volatility, CEO Quincey is confident in the road ahead.

“Our business is built to perform, even if the tailwinds behind us moderate somewhat,” he concluded. “Ultimately, we’ll focus on what we control… taking steps to manage the business as we become a total beverage company.”

https://www.coca-colacompany.com/stories/our-business-is-built-to-perform-coca-cola-ceo-says-following

https://www.forbes.com/sites/greatspeculations/2017/09/07/how-coca-cola-plans-to-make-india-its-third-largest-market /#10db7d342e84

Sustainability Plan

Global Sustainability Map

External Factor: How does the world economic cycle affect it?

External Factor: How does the political environment affect it? Creating Social & Business Value

Public policy plays an important role in our business, because it allows us to engage in conversations and take action on issues we care about, like well-being initiatives, water stewardship and the economic empowerment of women. By being an active participant in these discussions and through political engagement, we seek to provide constructive contributions that inspire moments of optimism and happiness, leading to positive changes around the world.

How does the political environment affect it? the Golden Triangle

In the words of Muhtar Kent, Chairman and Chief Executive Officer, “Given the scale and complexity of today’s health and environmental issues, it’s challenging for one business — even one industry — to make a material difference on its own. Instead, we must rely on partnerships that connect across what I call the ‘Golden Triangle’ of business, government and civil society.”

Mr. Kent’s vision guides how we work and engage with others around the globe. We embrace the fact that when we work together we can have a greater impact than when we work alone.

How does the political environment affect it? Well-Being

Publicly that obesity is “the issue of our generation,” and with good reason: obesity exacts a harsh toll on the health of individuals, families and even whole communities, and it will take time, education and ongoing global support.

Our very human response to this very real problem is: We care. And we want to help. That’s why we have been voluntarily stating calorie counts on the front of our products (as well as on the side) since 2009. It’s why we impose our own restrictions on advertising to children. And it’s why we offer more than 800 low and no-calorie products around the world, including 180 in the United States.

How does the political environment affect it?

Our current global commitments to well-being include：

1. Offering low or no-calorie beverage options in all of our markets. 2. Providing easy-to-follow nutrition information, with calorie counts clearly displayed on the front of all

of our packages. 3. Getting people moving – literally – by supporting physical activity programs in the more than 200

countries where we do business. 4. Marketing our products responsibly, which includes a no-advertising policy for children under 12

anywhere in the world.

How does the political environment affect it? Water By 2020, we have committed to safely return to communities and to nature an amount of water that is equal to what we use in our finished beverages and production each year.

Women Women’s economic empowerment is another focus for us. Through our 5by20 initiatives, we’re working diligently, on multiple continents, to enable the economic

empowerment of 5 million women across our value chain by 2020.

Financial Performance, Market and Innovation

Price Chart

Building Total Beverage Company

Results of Actions

North America Revenue in last 4 years

Disciplined Portfolio Growth

Disciplined Approach to Innovation

Dynamic of Revenue Growth

Example of Portfolio Growth

Sources: ●