Week 5/ Developing a Global Vison

Coca-Cola Started to think Globally between 1920 and 1930. Led by Robert W. Woodruff, the company started to establish bottling plants outside of the U.S territory; France, Guatemala, Honduras, Mexico, Belgium, Italy, Peru, Spain, Australia and South America, when the WWII began, Coca-Cola was being bottled in 44 countries. When the war ended 64 plants pass to Coca-Cola after the Joint Venture that the company had with the Government of U.S. Coca-Cola was in charge of supplying the troops for exchanges of not cutting the supply of sugar that the Government had to put for the war.

Coca-Cola is always looking for potential markets and looking for ways to get in those market. Thats call environmental scanning and the company had mastered. So far Coca-Cola know by now that each market that they are trying to get in is different then the other one that they just opened. For that reason they have to start for the begging and they need to scan the environmental of the new market to see ways to enter to the market.

Why China?

China has the worlds largest population a large geographical area and more social diversity than any other country. The government of China has a very strict control on every aspect of any product thats is entering in their country ans specially those that come from U.S.

In 1970 China suffered from a outdated bottling plants facilities, and only one soft drink was distributed ( Coca-Cola) the rest of the soft drink where control it by the government. Initially Coca-Cola was limited to sell their product to specially retails like; hotels or friendships stores. In 1980 Coca-Cola joint Venture with the government of China an open new bottling plant in Beijing and Province and Coca-Cola give them Owner ship to the Government of China in exchange of better sales distribution. 1984 Coca-Cola open their own bottling plant in partnership with the Government in Zhuhai with the minister of light industry of China, the following year the Government let Coca-Cola Company sell their products to the people of China.

Coca-Cola has Joint Venture with other companies from China to expand their market; Tianjin Jin Mei Beverage is one of them they share the market 50-50 equity. This particular Joint Venture is the one who increase the market for Coca-Cola. Moreover, the company on their scanning of the market in China found out that the people is different then U.S market. Therefore, the approach of Coca-Cola was different instead of forcing the people trough aggressive sales Technics to sale their products, they have focus on the need of the China community and had develop new products to enter in that market; they have a noncarbohydrate drinks with mango, jasmine teas, green apple and coconut just to mention a few.

Coca-Cola New Products (1886-1970)

Coca-Cola after 70 years of given to the people the same great flavor, introduced to the market new flavors; Fanta was developed in 1940 and introduced to the market in 1950, Sprite enter to the market in 1961 as a respond to PEPSI for their new lime flavored soda (7-up) years later the number 1 soda in lime flavored was sprite. Tab was introduced to the market in 1963 (this was Coca-Cola first Diet Soda) and still on the market, Fresca followed in 1966. In 1960 the company acquired The Minute Maid Company, adding an entirely new line of business of juices to the Company.

week 4/ Marketing Environment

Understanding the needs of the market is crucial for marketers. A good scan of the market can lead the company to increase the sales or to decrease the sales. Coca-Cola has always being scanning the market. Therefore, the company had being always looking for those advantages that the company can use on his own behalf. Remember the mission of the Coca-Cola Company.... To inspire moments of optimism and happiness. They have understood the external environmental.

1884: Coca-Cola being a new business took advantage of the fast growing of the fountain drinks, as a result Coca-Cola enter in this business with this syrup created by John Pemberton.
1899-1900: Asa Griggs Candler the new owner of the company join venture with other 3 entrepreneurs to start bottling the product (Coca-Cola) in that meting Benjamin F, Thomas and Joseph B obtain exclusive right to bottle the product. 9 years later, more than 400 bottling plants where in function all over the country.
1920: Coca-Cola saw the opportunity to grow by selling the product in store instead of selling Coca-Cola in the fountain drinks as a result Coca-Cola stop selling their product in the fountain a few years later.
1930: Coca-Cola took advantage of the Great Depression by signing a contract with the US government which gave them no restriction on sugar. Because of the depression the sugar was restricted and rationalized in the US territory. Coca-Cola in change of the agreement with the sugar, they had to provide the US troops with Coca-Cola.
1940: 64 bottling plants where open around the world to provide the US troops with the refreshing flavor of Coca-Cola. After the war all this plants where pass to the company and was when Coca-Cola was known all over the world.
By 1950 most of the American people had heard, tested or read a ad about Coca-Cola. Therefore, what the marketing managers knows as Baby Boomers (People born between 1946-1964) all where familiar with the product and they saw in Coca-Cola a product that fought with the US troops.
1950: Coca-Cola saw the rapidly growth of the technology and started applying this technology on the company to cover the needs of the market.
1950: Coca-Cola understood the rapidly growing of soccer and since 1950 the company had being the official support of the FIFA world cup.
1960: Coca-Cola saw the lack of flavor in the market and they introduced new flavor to the company; Fanta, Sprite, Minute Maid and fresca.

As we can see Coca-Cola is always scanning the markets to take advantages of those opportunities. Even in the disadvantages the company takes advantage of the situation, like in India when they sue Coca-Cola for 45 millions for contaminating and destroying India water supplies and they took advantage of this situation and they started a new program for the conservation of water. As a result, their sales increased in this country. Other clearly example is the way Coca-Cola start preparing the coming of the Christmas season they are constantly scanning the environmental for opportunities to exploit and convert them in advantage for the company

Corporate Responsability

Coca-Cola has always had problems with the government of India, in 1977 when the new government of India establish, As a result the FERA (Foreign Exchange Regulation Act) order to the company of Coca-Cola to turn over their secret formula. The company Coca-cola close their plants, they returned in 1993 after the India Liberalization.

India is a country where 70% of their income is on Agriculture, thousands of farmers had being affected by Coca-Cola. Coca-Cola is guilty of destroying waters storage, pollution of groundwater and soil exposure to toxic waste and pesticides.

In Plachimada, Coca-Cola is responsible for creating severe water shortages for the communities in the polluting the groundwater and soil destroying farms by draining them out completely. The plant here used about 900,000 liters of water last year, about a third of it for the soft drinks, the rest to clean bottles and machinery. It is drawn from wells at the plant but also from aquifers Coca-Cola shares with neighboring farmers. The water is virtually free to all users. These farmers who have been protesting say their problems began after the Coca-Cola factory arrived in 1999. The water table has declined between 25-40 feet in the last four years, and Coca-Cola has been discharging its waste water into the surrounding fields, and now into a canal that feeds into the river Ganges, a holy river for millions of Indian.

clothes/label

• Shirt/ Tokio, Japan.

• Underwear/ Bangladesh.

• Pants/ China.

• Socks/ No label.

Week 3/Ethics and Social Responsibility

ETHICS

Coca-Cola company is guided by the Establish Standard of Corporates Governance and Ethic, the company review their system constantly to ensure they achieve international practices in terms of transparency and accountability.

The code of ethics and compliance program at the Coca-Cola company is theirs code of business conduct, this code is administrated by their Ethic and Compliance Commitee. All of our associates and directors are required to read and understand the Code and follow its precepts in the workplace and larger community.

Coca-Cola has shown his Ethics by responding to the people of India an accepting the charge of destroying their land and their water resources. India government sue Coca-Cola for 45 millions of dollars and as a result Coca-Cola promise to the government of India to improve the quality of life of the people of Plachimada. They started installing a pipe line underground that bring the water far away from the city. Yet, Under the rules of entry for Coca-Cola into India, it was agreed that Coca-Cola would divest 49% of its equity stake in India within 5 years. Therefore, Coca-Cola Company has prove they Ethics by accepting their responsibility and not only by paying, but for the Social Responsibility with not only with the community of India, but with the rest of the world by forming programs to preserve water all over the world

SOCIAL RESPONSIBILITY 

Education:

Coca-Cola Company encourage educational programs for students of all ages from around the world. Since 1986 Coca-Cola has benefited from more than 38 millions in scholarship. Only in US more than 3 millions annually are directed to this programs and BMCC is one of the benefit of the Coca-Cola grants. They also help other countries all over the globe, Argentina, Chile, China, Egypt, Pakistan, and the Philippines

HIV/AIDS:

Coca-Cola works hand to hand with local health official to ensure the education on relevant health concerns like polio, tuberculosis, hepatitis and HIV/AIDS.

Coca-Cola company has expend $2.5 millions over the past year in HIV/AIDS programs in different countries; Egypt, Ethiopia, Kenya, South Africa and Tanzania. Coca-Cola has form partnership with different local agencies; African Network of children Orphaned, The Africa Broadcast Media and Dance4life.

Dance4life is a foundation establish in 2006, this organization works world wide and help the community through the use of dancing and listening with youth artist icons in they own languages to encourage them to learn more on the prevention of the HIV/AIDS. Dance4life works across the world, in countries where HIV/AIDS has big impact; Kenya, Sierra Leona, Nigeria, South Africa, Tanzania, Uganda, Zambia and Zimbabwe.

Disaster Relief:

Coca-Cola has done a big effort to help the people in need and specially those who had been in natural disaster. In 2004 a Tsunami hit Acech, Indonesia. Coca-Cola was there to help more than 7,000 villagers by providing them with clean water and promoting a long-term hygiene sanitation problems. In 2008 a Cyclone named Nargis pass through Myanmar, Thai, even though that Coca-Cola did not had business in that country, they work with the government to provide them with 240,000 bottles of clean water for the victims. In 2008 a Earthquake in Sichuan, China, Coca-Cola donate 2,8 millions of dollars in cash. This operations started with clean water and financial support for the victims. In 2009 Coca-Cola responded to the Earthquake in Haiti, Coca-Cola company donate 2,0 millions of dollars and more than 1 million of litters of clean water.

Water Programs:

Our community water programs are designed to support healthy watersheds and sustainable programs to balance the water used throughout our production process. We do this by working on a wide range of locally relevant initiatives, such as watershed protection; expanding community drinking water and sanitation access; agricultural water use efficiency; and education and awareness programs.

Week 2/Strategic Planning

Coca Cola Strategic Planning
Coca cola like always has participated in the mayor sports events in the world. like we all know, Strategic Planing is the managerial process of creating and maintaining a fit between the company's objectives, resources and future events. If we remember one of the Mission Statement of Coca Cola Company is to inspire moments of optimism and happiness, and what can give you more happiness than watch your favorite time winning the championship of your local league. Part of the process of the Strategic Planning is to design activities to promote the product of the company in this case the product would be Coca Cola. In 2010 the Coca Cola Company started launching a commercial in the NFL Super Bowl on February 7th of 2010, after the the NFL Super Bowl Coca Cola was getting ready for the biggest sport event in the world The World Cup. The world cup is the biggest event in the world, started in Uruguay from 13 July to 30 July 1930. In this year the World Cup took place in South Africa and the champion was Spain in a Victory over Holland. Now Coca cola is getting ready for one of the biggest campaign of the year, Christmas.

In this year is going to mark the 79th anniversary of the famous Coca-Cola Santa Claus. Starting in 1931, magazine ads for Coca-Cola featured St. Nick as a kind, jolly man in a red suit. Because magazines were so widely viewed, and because this image of Santa appeared for more than three decades, the image of Santa most people have today is largely based on this advertising.

THE LEADER

John M. Farrell is Vice President, Strategic Planning, responsible for global strategy. The Strategic Planning function leads the development of the overall strategy of the Company along with the global planning process. Mr. Farrell brings broad domestic and international experience to strategic planning, as he has held major operations roles in North America, Europe and Asia.