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Research paper example essay prompt: History - 1881 words

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.. antages of having a company that is totally debt free. Opportunities: The possible opportunities available to Coca-Cola are limitless due to their strong market position and the healthy profits that they consistently turn. Coke has begun to realize that they are capable of expanding into other markets besides that of the soft drink. This is the focus of the Minute Maid group.

The worldwide juice beverage business is growing, with sales of more than $40 billion annually. The destination of The Minute Maid Company is to be The Coca-Cola Company of juices, worldwide, and capture category growth with global brands, premium products and a superior business system (Ivestor). This is a very good opportunity for Coke to move into the next millennium where consumers are becoming more heath conscious. European markets also offer tremendous potential for growth. One statistic underscores our enormous opportunity in this group: On average, each of the 866 million consumers in the 49 countries of the Greater Europe group drinks our products less than twice a week. We've set an aggressive goal of reaching a per capita of 200 within the next decade (Ivestor).

In this case the lack of a strong customer base is actually a great opportunity. Coke has realized that they are deficient in this area and are taking the appropriate step to attempt to secure for them a place in this market. Similar to the place they hold in the United States and other regions of the world as well. Strategically speaking this is a good idea, and Coke knows from prior experience in their 113-year history how to break into a new market. China and the Far East also show a very large potential for growth.

China is currently the world's most populous country. By default China is also the largest consumer of food and beverage. This plays very nicely into Coke's attempts to gain market shares in this region. With 60 percent of the world's population, this group has a huge opportunity to increase per capita consumption of our products. Of the 3.6 billion potential consumers here, each is currently drinking less than one serving of our products every two weeks on average (Ivestor). Threats: One of the largest threats that is facing Coca-Cola today is the regional economy in some of the geographic areas in which the company operates.

Coke has voiced concerns that the down turn in these economies has had a negative effect on their business in the last year. Coke holds the position that it is a long-term company and that this is just a temporary downturn. This could have a negative effect on the company if this so-called temporary downturn turns into a regional recession. People today are attempting to live a healthier life style than their parents did in the past. One of the first things that people tend to cut out of their diet are complex sugars such as those found in the high fructose corn syrup.

In order for Coke to stay viable they are again going to need to develop a new product that would both address the health concerns of the people and also maintain the taste and texture of the original Coke. A flaw in this plan could be the lost faith that the American public has in Coke after the New Coke product flop of the mid 80's. The facts remain though that eventually the consumers will turn from this old product that is high in sugar and promotes tooth decay to a healthier alternative. In Belgium after an incident where a bottler used the wrong type of carbon dioxide to bottle the product all Coca-Cola was removed from the shelves pursuant of a government ban enacted by the Minister of Health. The carbon dioxide that was used was mixed with a fungicide and was meant to treat wooden pallets against mildew. A hundred or so people were rendered sick by this mistake, mostly small children.

The product was also removed from the shelves in the Netherlands, and France. Coke has taken steps to try to win back their customers. Some of these steps include trying to assure the people in the European market place that the bottling plant in question was thoroughly cleaned and tested, and also that the tainted product was destroyed. Coke needs to strongly assure the Belgium people that their product is safe, and also take steps to make sure that an incident like this has no chance what so ever of happening again. Competition: Coke does hold a majority of the market share in the soft drink industry.

Pepsi Corporation is attempting to cut into this lead. They are doing this through a very aggressive marketing campaign that is targeted mainly at the younger 13-25 year old demographic. Pepsi's plan is not to make customers out of Coke drinkers but is to make new customers out of people who currently don't have a cola preference. Pepsi is also attempting to match Coca-Cola country for country in a global battle for control. The generic soda products that many stores seem to have are digging a small hole in Coca-Colas profits.

These stores' strategies are to offer a similar product of similar quality at a much lower cost. Sometimes the cost is less than half that of brand name colas such as Coke. This is a marketing strategy known as market penetration. This strategy allows a product at a lower price to reach a larger market due to its lower cost. Fortunately these generic store brands do not have the brand recognition that Coke has, therefore these generic brands should not be a very serious threat to the overall stability of the Coca-Cola empire.

But this issue is also one that Coke would be wise to watch just so they don't get taken by surprise if there happens to be a swing in the markets to these generic brands. The Minute Maid group has its own competition that is unique to their particular market. The new players in this game are the Florida Orange Growers Co-op. This is a group of growers that are collaborating in an effort to produce a very high quality juice for a competitive price. The grass roots promotions that this group is using appeals directly to the heartland of this country. And is stealing market share in the orange juice industry by the month.

Coke should attempt to counteract this by either launching its own grass roots ad campaign such as it uses to sell Classic Coke or possibly talk to the growers and work a deal with the that allows then higher profits and more credit. Recommendations: As mentioned before Coca-Cola is a very cash rich company that carries very little debt and turns a very sizable net profit. Currently Coke has limited itself to the beverage industry. This in the past has been a very safe move that has been good for Coke. However the face of the global economy is changing on a grand scale. If Coke were to found a venture capital group to invest in new ideas and companies that show extraordinary potential for growth.

Coke could staff this small group with the best business and technical minds that it can find. Coke would be well served to follow the guidelines on diversification set out in the book Management by Dr. Zivic. This book has a section that covers in great detail the reason why a company should diversify and how such a plan could be implemented. The New division could share the management infrastructure of Coca-Cola and their financial resources. In return by investing in the newest technologies and ideas this new division would have the potential to become even larger than its soft drink counterpart.

The justification for this is that gaining market share in the soft drink is very difficult. Conversely, in high technology fields gaining market share is as simple as having the best product. Coke would be well served to invest in an idea similar to this. All of the components are there for them to become a major player in the high technology field. The only piece of the puzzle that they are missing is the foresight to diversify into such an area. In the interest of credibility Coke would be wise to name this group something not identifiable with the parent company.

On the soft drink side of the business Coke should continue along the road to success that they started on over 100 years ago. It has been successful to this point and appears that it will remain successful well into the future. Places where it may be better to modify this plan to sell more products are in the European and Asian markets. Currently this plan is not selling as much product as it is in other sections of the world. A solution to this could be to research what the consumer wants in these regions and then act on this research to give the consumer exactly what they want. Alternatives: Recovering natural disasters have always sponsored a time of community and kinship from among those affected.

Many large companies such as Philip Morris spend a good deal of money assisting in any way that they can when a situation like this happens. If a company was to put together a natural disaster recovery team to go in and aid in the recovery of the affected people, Coke may be able to change their image from corporate giant into a carrying member of the global community. The key for this program is for it to be truly sincere, not a publicity stunt. This could be accomplished by Coke showing up and helping in a very big way, but not advertising that they did assist. They could even downplay their involvement. The more modest the company is about their involvement the more positively responsive people will be toward Coke.

The way that this team would operate is that when a natural disaster occurs the team would mobilize three large cargo planes that would be filled with construction equipment, emergency medical supplies and food. When the team arrives at their destination they would unload and setup camp. They would then assist in any capacity that is required of them and they are equipped to handle. The initial capital expense for such a project would be very high. But the potential public relations benefits that would result are immeasurable. Another plan that could improve Coke's market position over the next three years is if they were to reorganize their global management structure.

Coke's large size can be a burden when they are attempting to sell products to many very different demographics of individuals. If the company's bulk was divided by regions empowered to make major market and production decisions without the consent of the corporate headquarters. This would push each region to be more aggressive in their attempt to manage their regions. Dr. Zivic covers global management in detail in the book Management.

Coke needs to realize that the face of their market is bound to change. They need to make absolutely sure that their management matches their market. References www.coke.com (1998). The Coca-Cola company website. Ivester, M. Douglas.

(1998). Gillette company annual Report. Zivic, Louis.(1998). Management, Primus publishing. www.cnn.com (1999) Coke faces problems in Belgium.

Related: history, carbon dioxide, disaster recovery, cola company, parent

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