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Coke - Global Operations

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market study
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Coca-cola has now become a part of the American culture after its 125 years of existence in the country. The company that was founded by Asa Chandler in 1892, head quartered in Atlanta, Georgia, has its presence in almost every country in the world. It manufactures, distributes and markets non-alcoholic beverages and serves more 1.7 billion people each day. Such a huge company and the larger than life business operations raise several thoughts about how the operations are carried out in such a large scale. The largest markets of the company globally are USA and UK. Asia is the next largest market where countries like China and India has population more than a billion in number.

Coke has seen growth in all its major markets like USA, Western Europe, Japan, Russia, India and China during the current year. It is investing more than $4 billion in China to promote its brand and also is on the look out to list the company in the Shanghai stock exchange. Though it has two bottling plants in the country, it was kicked by the communist government in 1927 for the reason of US imperialism. On one hand when Coke is enjoying the amazing growth in sales, on the other end it is in shackles of various governments across different countries with problems like - environment and product related issues in India, trade practices in Mexico, labor practices in Columbia.

The company seeks to double its business in the next decade, where it expects to cater to an additional one billion people and also expects revenue to reach $200 billion by the year 2020. It was on a downslide from 2000-04 as it did not pay attention and react to the changes in the world. It seeks to highlight its environmental efforts and plans to produce a billion bottles by the end of next year. It expects an annual savings of $500 million by the end of 2011 and also plans to concentrate on marketing its non-performing brands.

Coca cola is famous for its employee centric work culture. Its primary business is to provide concentrates to its thousands of suppliers across the world who are independent businesses working under the name of Coke. It has roped in almost all the famous personalities in the world as brand ambassadors. It is one of the companies which are the highest spenders on marketing activities globally. The global market has only one competitor to Coke and that is Pepsi. Being the most recognized brand across the globe and with the growing sense of awareness about ongoing climate change, it has a huge responsibility to reach its future goals which is a question in itself. Will Coke be able to solve the problem that it faces in various countries? Can it maintain its 125 year old legacy? We have to wait for the answer.

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