Term Paper on "Coca Cola Business"

Term Paper 3 pages (1049 words) Sources: 3 Style: MLA

[EXCERPT] . . . .

Coca Cola

Business Case study

Coca Cola Case Study

Coke is a brand name that has been known for decades in the United States, not to mention the rest of the world. Unfortunately, there has come a time when the brand is no longer at the top of the "sparkling" beverage industry. In the New York Times article, the history and future of Coke are discussed with detail, while also giving flashes of information into its shortcomings. One learns that the well-known company has been fraught with conflict, turnover, and an inability to produce innovative products. (Martin) This problem appears significantly evident throughout the article. Martin continues to talk about how far Coke has come, and yet how far it still has to go. The majority of the writing discusses the transitions around Coke's chairman and chief executive Neville Isdell. With this, one man held the hopes of a significant boom in innovative non-carbonated drinks, and advertisement. Nonetheless one finds out towards the end of the article that the level of increase was not truly reached, probably due to the fact that Neville was seen as a man that made safe decisions instead of innovative, cutting edge ones. It is also evident in the article that there were large business acquisitions that Coke missed out, only to later see PepsiCo end up profiting from Coke officials fear of change and chance i.e. Gatorade & South Beach Beverage Company (Martin 1-4)

The history of Coke is a vast one that dates as far back as 1886. Two men, an Atlanta Pharmacist and a civil war veteran created coke as a tonic that was made to help aid people suffering from fatigue and headaches. In 1926, a foreign department was created to begin globalizing the Coke brand. The year 1981 marked a boom in profit share for Coke stockholders when value per share increased from an average of $35 to $2,209.72 during the time Goiuzueta was the chief executive. In 1990, the World of Coke Museum opened with an average of 750,000 visitors per year. (Martin 3) May 2007, Coke announced the purchase of the vitamin water company Glaceau for $4.1 billion. (Fisher) June 2007, Coke announces their funding project to conserve seven major rivers worldwide as well as revamp bottling techniques. (Coke launches water conservation campaign)

Coke continues to face the same problems that the company has been facing for over a decade; innovation, change and market share in the United States are lower than those of competitors. Martin exposes in his article that there were opportunities for Coke to buy and take over major businesses and brands that would have added to the Coke name, however because of fear of change and attempting to stay with sparkling beverages these missed opportunities became large market share for PepsiCo. Fisher, reports about the acquisition of Glaceau to attempt to increase market share in the bottled water market. However, Martin questions in his article if this is too little to late, with little insight as to whether or not this acquisition will have enough effect to reinstate the Coke brand name back into the hierarchy it had… READ MORE

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