Scribd Logo
Upload

Welcome to Scribd!

  • 99 views

    Coca-Cola Redefi Ni NG I Ts Purpose (Case-Study)

    Uploaded by

    Parth Bhatt
    Coca-Cola was facing declining earnings growth since 2003 due to several factors: low growth in soft drink markets, how it earns profits through bottlers, unsuccessful new products, and reluctance to make acquisitions. Its earnings growth objective of 15-20% annually failed to be achieved. To improve its earnings, Coca-Cola needs to set smaller country-specific targets, reduce variable costs, frequently introduce new products, consistently manage supply chains, and share profits with bottlers. It should also make acquisitions to enter new markets and increase market share in the soft drink industry through new marketing strategies.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd

    Coca-Cola Redefi Ni NG I Ts Purpose (Case-Study)

    Uploaded by

    Parth Bhatt
    99 views5 pages
    Coca-Cola was facing declining earnings growth since 2003 due to several factors: low growth in soft drink markets, how it earns profits through bottlers, unsuccessful new products, and reluctance to make acquisitions. Its earnings growth objective of 15-20% annually failed to be achieved. To improve its earnings, Coca-Cola needs to set smaller country-specific targets, reduce variable costs, frequently introduce new products, consistently manage supply chains, and share profits with bottlers. It should also make acquisitions to enter new markets and increase market share in the soft drink industry through new marketing strategies.

    Original Title

    Coca-Cola

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Coca-Cola was facing declining earnings growth since 2003 due to several factors: low growth in soft drink markets, how it earns profits through bottlers, unsuccessful new products, and reluctance to make acquisitions. Its earnings growth objective of 15-20% annually failed to be achieved. To improve its earnings, Coca-Cola needs to set smaller country-specific targets, reduce variable costs, frequently introduce new products, consistently manage supply chains, and share profits with bottlers. It should also make acquisitions to enter new markets and increase market share in the soft drink industry through new marketing strategies.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    99 views5 pages

    Coca-Cola Redefi Ni NG I Ts Purpose (Case-Study)

    Uploaded by

    Parth Bhatt
    Coca-Cola was facing declining earnings growth since 2003 due to several factors: low growth in soft drink markets, how it earns profits through bottlers, unsuccessful new products, and reluctance to make acquisitions. Its earnings growth objective of 15-20% annually failed to be achieved. To improve its earnings, Coca-Cola needs to set smaller country-specific targets, reduce variable costs, frequently introduce new products, consistently manage supply chains, and share profits with bottlers. It should also make acquisitions to enter new markets and increase market share in the soft drink industry through new marketing strategies.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 5

    Coca-Cola- A Redefining its purpose

    C A-C OC OLA REDEFI NI NG I TS PURPOS E (C E-S AS TUDY)

    BY- DHWANI PANDYA EVERON IIPS, AHMEDABAD

    [1]

    Coca-Cola- A Redefining its purpose

    Q.1 WHAT I SYOUR VI EW OF THE EARNING GROWTH OBJEC VE OF C TI OCA-COLA?

    COCA-C OLA is worlds le ading soft drink com pany which was dealing with declining earning rate since 2003. COCA-C OLA achie d annual growth in its e ve arnings of shareholders 15-20% till 1991-97. Till 2004 target was reduced to 3-4% as situation became worst. There were basically 4 reasonsresponsible for low growth rate. 1 low growth in the market 2 way that Coca-Cola earns its profits 3 unsuccessful in introducing new products 4 Reluctanceof Company to make profitable equations in future. C cola e oca arning growth obje s faile due to low capability ctive d of new product development. Pe had sm r m t share in m countie but succe psi alle arke ost s ssful in achieving targets after new product development. Coca- cola introduce che coke but this wasnt succe d rry ssful for longer. C cola atte pte to re oca m d place the classic coke and m som ade e changes in it, which was lately protested.
    [2]

    Coca-Cola- A Redefining its purpose

    I t focuse m on m ting its m brand coke than to bring d ore arke ain new product line. This is why its earnings growth objective reluctantly failed.

    Q.2 Do you think that coca colas strategy with bottling companies is proper?
    C cola not only se its products in m ts but works oca lls arke around the world with local bottling companies. It also owns some bottling companies. I t de d to own sm bottling com cide all panie n se the to lage s ll m r bottling markets at higher price By this they could show there sales into profits. But the couldnt re y alize this cannot continue longe as the r y have to give their share of profit to bottlers. For this re ason it re d its earnings growth obje duce ctive for the latest period.

    [3]

    Coca-Cola- A Redefining its purpose

    Q.3 what do you suggest should be coca colas earning objective should be, and why?
    The are 4 m re ain proble s which re m stricts C oca-C olas e arning objective. The first problem is the low growth in the market. The second problem is the way that Coca-Cola earns its profits. The third re ason for doubt about the earnings growth obje ctive relates to the successful introduction of new products The fourth proble is the re m luctance of the com pany to m ake acquisitions that might enhance earnings growth.

    SUGGESTIONS Firstly it should set smaller targets depending upon the market situation of different countries. I t should ke p variable cost lowe which helps it, growth in e r, smaller countries. C cola should bring ne product line fre ntly to outcom oca w que e its competitors, n sustain market demand. I t should m anage the supply chain consistently to avoid disputes with suppliers n share profit with bottling companies.

    [4]

    Coca-Cola- A Redefining its purpose

    Marke share rise only whe the are change in com t s n re s panys working strategy. As a re com sult pany should m equations ake which hells company in Entering into ne m ts as we as incre market share in w arke ll ase soft drink market. I t is one of the large soft drink companies so to sustain its st growth n m aturity le l it has to com up with ne m ting ve e w arke strategies.

    [5]

    You might also like