Coca-Cola
Gate China 2014 The Coca-Cola Company (可口可乐) Ana Hail, Luis Felipe Inurritegui
Business Overview
The Coca-Cola Company (Coca-Cola or ‘the company’) is a manufacturer, distributor and marketer of non-alcoholic beverage concentrates, syrups and finished sparkling and still beverages. Coca-Cola produces more than 3,500 beverage products, including a variety of sparkling and still beverages. The company manufactures beverage concentrates and syrups, which it sells to authorized bottling and canning operators. The company also manufactures finished beverages. Coca-Cola owns or licenses more than 500 brands, including sparkling beverages, waters, enhanced waters, juices and juice drinks, teas, coffees, and energy and sports drinks. The company has the Coca-Cola trademark and the products that sell under this trademark are: CocaCola, Diet Coke and Coca-Cola Zero as main products. It also has line extensions such as Coca-Cola Light, Caffeine free Diet Coke, Cherry Coke, and Vanilla Coke among others. Other trademark beverages include Fanta Orange, Fanta Zero Orange, Fanta Apple, Sprite, Diet Sprite, Sprite Zero and Sprite Light. It operates in more than 200 countries. The company is headquartered in Atlanta, Georgia and employed 150,900 people as of December 31, 2012, the current CEO is Muhtar Kent. It has six business segments which are: North America, bottling investments, Pacific, Latin America, Europe, and Eurasia and Africa. Coca-Cola also reports a non-operating segment: corporate.
Operations in China Coca-Cola’s Pacific business segment includes Association of South East Asian Nations (ASEAN) business unit, Greater China and Korea business unit, Japan business unit, South Pacific business unit, and India and Southwest Asia (INSWA) business unit. Atul Singh, is the president of the Asia Pacific group. Case volumes in China were up 12% (versus the first quarter in 2013) and were boosted by a marketing campaign around the Chinese New Year Holiday. Coca-Cola also confirmed it plans to invest $8 billion over the next five years in China.
The company plans to invest $8 billion in China over the five years through 2017 as it focuses on emerging markets to boost revenue. Coca-Cola Co reported better-than-expected quarterly revenue as strong sales in China more than offset a drop in Europe and flat volumes in North America. Global case volumes rose 2 percent in the quarter, while those in China rose 12 percent due to increased marketing around the Chinese New Year.
Financial & Operating Statistic Revenues Net Income Market Capitalization
$46,854 $8,584 $178,444.42
Price per Share Stock Exchange Number of Employees # of Locations in China
$40.8042 NYSE 150,900 43 plants
SWOT Analysis Strengths 1. Dominant market presence built on strong brand portfolio 2. Strong bottling partnerships 3. Strong global footprint emphasizing on emerging countries
Weaknesses 1. Product quality issues and frequent recalls
Opportunities
Threats
1. Growing demand for functional and healthy beverages 2. Increased environmental concerns prompting consumers to buy environment-friendly products
1. Regulations that affect sales at certain points of sale 2. Water scarcity and poor quality could impact production costs and capacity 3. Rising labor wages and healthcare costs in the US
Company Visit Questions
How have the changes in politics and economy in China affected the Coca-Cola business? Has the company been able to take advantages of this changes? What does the China consumer value the most among the Coca-Cola products? How does the supply chain and the local distribution process differ from the one implemented in the US? How does the syrup production and distribution work in China?
Which innovations have been more successful and why? We have seen a lot of investment in the past years and a lot of investment planned for the future as well in China, ($4Billion in 2015-2017), are you expecting the company to keep growing at a steady pace?
Business Overview
The Coca-Cola Company (Coca-Cola or ‘the company’) is a manufacturer, distributor and marketer of non-alcoholic beverage concentrates, syrups and finished sparkling and still beverages. Coca-Cola produces more than 3,500 beverage products, including a variety of sparkling and still beverages. The company manufactures beverage concentrates and syrups, which it sells to authorized bottling and canning operators. The company also manufactures finished beverages. Coca-Cola owns or licenses more than 500 brands, including sparkling beverages, waters, enhanced waters, juices and juice drinks, teas, coffees, and energy and sports drinks. The company has the Coca-Cola trademark and the products that sell under this trademark are: CocaCola, Diet Coke and Coca-Cola Zero as main products. It also has line extensions such as Coca-Cola Light, Caffeine free Diet Coke, Cherry Coke, and Vanilla Coke among others. Other trademark beverages include Fanta Orange, Fanta Zero Orange, Fanta Apple, Sprite, Diet Sprite, Sprite Zero and Sprite Light. It operates in more than 200 countries. The company is headquartered in Atlanta, Georgia and employed 150,900 people as of December 31, 2012, the current CEO is Muhtar Kent. It has six business segments which are: North America, bottling investments, Pacific, Latin America, Europe, and Eurasia and Africa. Coca-Cola also reports a non-operating segment: corporate.
Operations in China Coca-Cola’s Pacific business segment includes Association of South East Asian Nations (ASEAN) business unit, Greater China and Korea business unit, Japan business unit, South Pacific business unit, and India and Southwest Asia (INSWA) business unit. Atul Singh, is the president of the Asia Pacific group. Case volumes in China were up 12% (versus the first quarter in 2013) and were boosted by a marketing campaign around the Chinese New Year Holiday. Coca-Cola also confirmed it plans to invest $8 billion over the next five years in China.
The company plans to invest $8 billion in China over the five years through 2017 as it focuses on emerging markets to boost revenue. Coca-Cola Co reported better-than-expected quarterly revenue as strong sales in China more than offset a drop in Europe and flat volumes in North America. Global case volumes rose 2 percent in the quarter, while those in China rose 12 percent due to increased marketing around the Chinese New Year.
Financial & Operating Statistic Revenues Net Income Market Capitalization
$46,854 $8,584 $178,444.42
Price per Share Stock Exchange Number of Employees # of Locations in China
$40.8042 NYSE 150,900 43 plants
SWOT Analysis Strengths 1. Dominant market presence built on strong brand portfolio 2. Strong bottling partnerships 3. Strong global footprint emphasizing on emerging countries
Weaknesses 1. Product quality issues and frequent recalls
Opportunities
Threats
1. Growing demand for functional and healthy beverages 2. Increased environmental concerns prompting consumers to buy environment-friendly products
1. Regulations that affect sales at certain points of sale 2. Water scarcity and poor quality could impact production costs and capacity 3. Rising labor wages and healthcare costs in the US
Company Visit Questions
How have the changes in politics and economy in China affected the Coca-Cola business? Has the company been able to take advantages of this changes? What does the China consumer value the most among the Coca-Cola products? How does the supply chain and the local distribution process differ from the one implemented in the US? How does the syrup production and distribution work in China?
Which innovations have been more successful and why? We have seen a lot of investment in the past years and a lot of investment planned for the future as well in China, ($4Billion in 2015-2017), are you expecting the company to keep growing at a steady pace?
