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Coca-Cola Essay, Research Paper

History

"Coca-Cola enterprises Incorporated, employees 66,199 operates, 444

facilities, 47,235 vehicles, 1.9 million pieces of cold drink equipment and sold

3.8billion unit cases in 46 states in the united states, all 10 provinces of

Canada and portions of Europe including Belgium, France, Great Britain,

Luxembourg and the Netherlands" (Coca-Cola facts 99). An, Atlanta

Pharmacist Dr. John Slyth Pemberton founded Coca-Cola on May 8, 1886. The carmel

colored ingredients, Coca leaves and kola nuts. Later the drink was striped of

narcotics. The drink was first designed as a drug that will help people feel

better. Pemberton sold his new drink for 5 cents a glass. Some time later

carbonated water was added to the syrup and that is how Coca-Cola was invented.

Dr. Pemberton sold Coca-Cola out of the pharmacy he worked at. The pharmacy was

owned by, a man named Frank M. Robinson. Robinson suggested

"Coca-Cola" as a name for Pemberton’s drink. The two men took an old

oilcloth sing and hung it in the window saying "Drink Coca-Cola". They

averaged nine glasses sold a day. In 1886 Pemberton became sick he sold some of

his portions of his interest too Asa G. Candler. In 1888 Pemberton died, and Asa

Candler began buying all the out standing shares of Coca-Cola. Candler was and

Atlanta druggist and businessman. Candler knew Coke was going to be something

big. He then had complete control by 1891 for $2,300. In 1892, Candler and his

brother John Candler, Frank Robinson and two other associates formed

"Coca-Cola Company" in Georgia. Candler was a master at marketing. He

handed out coupons for one free glass of Coca-Cola. He also promoted the

beverage by painted walls, Clocks, outdoor posters, serving trays and fountain

urns. Candler marketing stragety worked Coke was available everywhere. The sales

took off. People started calling Coca-Cola "Coke" They urged the

customers to call it by its full name, but "Coke" just stuck. "In

1894, the company opened its first syrup manufacturing plant outside Atlanta in

Dallas Texas. The following year plants opened in Chicago and Los Angeles. Three

years after the Coca-Cola Company’s incorporation Candler announced in the

annual report: "Coca-Cola in the now drunk in every state and territory in

the United States" (History of Coca-Cola Company). Joseph A. Biedenharn, of

Vicksburg, Mississippi installed bottler machinery in his candy store in 1894

and became the first Coca-Cola bottler in the United States. Benjamin F. Thomas

and Joseph B. Whithehead of Chatttanooga, Tennesse bought Coca-Cola from Asa

Candler for one dollar. He got all right to Coca-Cola he thn opened the first

bottling plant in Chattanooga that year. Candler sold the Coca-Cola Company in

1919 for $25 million to an Atlanta banker named Ernest Woodruff and investor

group he had organized. In 1923 E. Woodruff’s 33-year-old son Robert Woodruff

was elected president of Coca-Cola Company. "The Business was

re-incorporated as a Delaware corporation, and 500,000 shares of common stock

were sold publicly for $40 per shares." Robert Woodruff bought Coca-Cola

Company to even greater highs for more then six decades. "Fundamental to

his success was a commitment to the highest standards for product quality a

commitment that remains a hallmark for the Coca-Cola system today". 1981

Roberto Goizueta a Cuban born chemical engineers who rejuvenated the business.

Although Coca-Cola had dabbled on several industries over the years, Goizueta

engineered the largest of this diversification, the $700 million acquisition of

Columbia pictures in 1982. In 1985, Coke changed its original recipe for a

"New Coke". Market shares had fallen so Guizueta thought that

Coca-Cola needed a change his change was "New Coke" the consumers

rejected it. The company changed back to the original recipe. In 1986, it

consolidated the U.S. bottling operation it owned into Coca-Cola Enterprises and

sold 51% of the new company to the public. In 1960, the Coca-Cola Company

purchased minute Maid Corporation; adding frozen citrus juice concentrates and

adds, along with the trademarks minute maid and Hi-C, the company’s beverage

line. The company later acquired Duncan foods, a coffee producer, and formed the

Coca- Cola company foods Division in 1967, now known as the Minute Maid

Company". From 1977-1983 the company produced and marketed wine in the

United States. In 1982 Coca -Cola company bought Belmont Spring Water company

Incorporated. Coca- Cola thought the Entertainment business would be good for

them so in 1982 the company acquisition to Columbia Pictures Industries, Inc,

which joined Tri Star Pictures in 1987, to form the independent corporation

Columbia Pictures Entertainment, Inc. Coca-Cola then sold Belmont Springs Water

Company, Inc. 1989, closing out a decade of accelerated growth and change. In

1997, Robert Goizueta died of lung Cancer. While Robert was in the company the

value rose from 4 billion dollars to 145 billion dollars. Douglas Ivester, the

architect of Coca-Cola’s restructured bottling operations, took over the company

when Guizueta past away. Coca- Cola and Investor ran into some legal problems

when Invester took over. In 1997, the French government blocked the company

tried to buy Orangina from Peknod Ricard. Then in 1998, an antitrust lawsuit

from Pepsi – Cola challenged Coca-Cola’s dominance in the U.S. fountain -drink

business. In June of 1999, products bottled where shut down for two weeks

because some of the bottles where contaminated in Belgium and France. This was

the company largest product recall in the company’s history. Corporate Culture

The Coca-Cola Company provides assistance to American Red Cross and Big Brother

Big Sister. These are just a few of the noble acts the Coca-Cola Company has

become involved in over the years. Coca-Cola is a leading company, which will

continue to grow in all respects. Most importantly, it will grow because of the

company’s value system, and quality for not only its product but also life.

Benefits 401k Company Paid Coverage Coca-Cola offers a full range of benefit

options. The first benefit that may attract an employee to work for Coke is

their company-paid coverage. This would include basic life insurance, basic

long-term disability and health insurance. Retirement, Pension, and Other Post

Retirement Benefit Plans For retirement, the company offers a 401(k) savings

plan with matching company contributions, an employee pension plan, and retiree

medical and life insurance. Paid Time Off The company offers all of their

employees some paid time off. This time off would include sick pay or short-term

disability, vacations, and holidays. Flexible Benefits The company also provides

an opportunity for employees to receive flexible benefits. These options would

be medical coverage, including vision and prescription drugs, dental coverage,

health care and dependent care reimbursement accounts, supplemental long-term

disability insurance and supplemental and dependent life insurance. Coca-Cola

also provides educational assistance and employee assistance programs. Employees

have access to a variety of health management programs such as on site health

club, cholesterol/blood pressure screenings and other wellness programs. Pension

Coca-Cola provides a variety of benefit pension plans covering all of its

employees in North America and Europe. Additionally, the company is involved in

a number of multi-employer pension plans worldwide. Coca-Cola also sponsors a

post-retirement plan that covers substantially all of American and Canadian

employees who qualify before retirement or terminated. In European Countries,

primarily government-sponsored programs cover retired Workers. The total pension

expenses for all benefit plans, including post-retirement health care and life

insurance benefit plans, amounting to approximately $119 million in 1998. In

addition, they also contribute to a voluntary beneficiary association trust,

which will be used to partially fund health care benefits for future retired

employees. Seeing how Coca-Cola employs 30,000 people worldwide, they try to

increase scouting their young employee’s talent for potentially higher

positions. These people start their jobs in front line beverage sales,

distribution, production, or service positions. "The biggest thing Coke is

looking for is long term thinkers," says one insider, "They don’t want

cowboys. They want conservative people who are into adding shareholder

values" (Coke insider, Investors Business Daily Coca-Cola). In 1994, the

Coca-Cola Company was awarded the Optimas Award for global outlook in success

for developing the standardized corporate culture. The company maintained a

long-standing commitment to equal opportunity, affirmative action, and valuing

the diversity of their consumers. The company’s aim to create a working

environment free of discrimination and harassment with respect to race, sex,

color, national origin, religion, age, sexual orientation, disability, being a

special disabled veteran. They also have commitment to make reasonable

accommodations in the employment of men and women who are qualified with

disabilities In addition, to trying to create a working environment free of

discrimination and harassment with respect to sex and sexual orientation, to

prohibit such discrimination and harassment provide a complaint mechanism to

ensure compliance. Even more important, the company maintains an open door

policy where employee related issues could be raised freely. The whole idea of

the open door policy is to provide an effective and timely means for all company

associates to find solutions to work related questions, problems, and concerns

that may effect the culture of the organization. The company has management

programs for potential management and people already in the management program.

Managers and associates work together on the development process. This process

includes determining development needs and agreeing on the development methods.

The approach to development may include on-the-job experience, specific training

programs, and other approaches to the development of the company. Feedback is an

essential factor in the appraisal process. It will prepare the associates for

future business needs. This is all part of there equal Opportunity Policy,

Employees are trained extensively nation wide. Coke provides its South African

divisions with programs to university students with the opportunity to learn new

business skills by working within the company. These specific programs allow

employees to further build new skills, while it also allows employees to build

skills for the first time. The skills the employee’s posses aid the company in

shareowner value National Distribution The Coca-Cola Company is the world’s

largest bottler of liquid nonalcoholic refreshment in which they produce,

market, and distributes their products in nearly 200 countries throughout the

world. Each day these countries consume 100 billion servings of Coca-Cola

products which stresses the importance of the invaluable service that

Coca-Cola’s distribution and bottling centers provide for the company. The

World’s most effective and pervasive distribution system is broken up into two

different sectors which are then divided even further into subunits such as the

following: 1.) The North American Sector – Coca-Cola USA [which operates in the

U.S.] – Coca-Cola LTD [responsible for soft drink operations in Canada.] -

Houston Base Coca-Cola Foods [produces and markets juices and juice like

drinks.] 2.) The International Business Sector – The Greater Europe Group

[manages the regions that are part of the European Union.] * Central &

Eastern Europe * Scandinavia * Soviet Union – The Latin American Group Overseas

* Mexico * Central & South America – The Middle and Far East Group * Asia

& Pacific Rim * Middle East – The Sub Sahara African Group * Manages any

countries below the Sahara Desert. This distribution system provides the

backbone needed to support the company and help them remain competitive in the

cold-beverage industry. The company is always striving to maintain quality

products while maximizing customer satisfaction. Distribution has become an

intricate part of the companies success in being able to successfully produce

quality products that are delivered and sold around the globe in a cost

effective and time efficient manner. Coca-Cola’s North American Distribution

Sector deserves to be mentioned first, because this is the region in the world

where the Coca-Cola empire first evolved and continues to prosper and grow. Coke

has become an American icon that has managed to transform itself from a

profitable fountain soda into a generational product that Americans have grown

to love. The North American Sector operates under DSD policies (Direct Store

Delivery) inwhich the products are delivered to the store directly from the

distribution center. This is in an effort to maximize profits and maintain a

quality image for their products "freshness". "By contract with

the Coca-Cola Company or it’s local subsidiaries, local businesses are

authorized to bottle and sell company soft drinks within certain territorial

boundaries and under conditions that ensure the highest standards of quality and

uniformity". This affiliation is being created by Coca-Cola’s "Project

Infinity", which is being implemented by upper management to consolidate

independent bottlers in an effort to cut costs, pool resources, generate more

buying power, improve overall communication throughout the organization, and

increase profits. This strategic alliance allows the company to produce products

that taste consistently good, contain the same amount of ingredients, are

packaged interchangeable, and are stocked and served to the customer in a

systematic way all across the country. One of the main components of Project

Infinity is an application for sales and distribution that Coca-Cola built for

the bottling companies years ago, called Basis (Beverage, Analytical, Sales,



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