Mission Statement of Coca Cola
The mission, vision and values indicate the organizational attributes that are serving to the community. Increase in the competitive era, thriving business in the business environment entailed the major consolidations to achieve required aim and objectives. In this regard, the understanding trends and external forces environment are to shape business in future and growth recognition. The declaration of the overall mission and goals and values are to demonstrate the characteristics of individuals in essential and adequate manner. The mission statement of the coca cola company reveals subsequent leadership characteristics in the beverage industry. The company mission statements are as follows
“To build value that makes difference and inspirational moments of happiness and optimism through brand positioning, refreshing the world mind in terms of spirit and body, and enhances the employee retention values to maximize overall shareholders considerations”
The mission statement of the coca cola company indicates the characteristic of overall stakeholder’s values for the development of organizational committed values in essential and flexible manner. The considerations of the mission statement of coca cola provide the dominating characteristics of maximizing shareholders’ values. The values of Coca Company integrated with the portfolio development, developing the network of partners, responsibility for the global citizen, lean fast moving organization and maximization of long-term return to shareholders (Coca-cola.co).
The mission statement of the coca cola company ensures the characteristics of the ethical corporate values that reveal the achievement of organizational goals. The Coca Cola Company develop the framework of retaining customer values in the competitive era of the beverage industry. The branding values of the coca cola company grab the competitive edge in the marketplace. The mission statement of coca cola Company dominating as services to target desired level of the market. The organization needs to develop the brand positioning to sustain its growth factors and extended in the market to generate desired outcomes. The structural composition of Coca Cola Company initiates the attributes of retention of customer values and concern for the development of long-term relationship with the external market.
The coca cola company is leading beverages industry in the corporate world. Such dominance in the global market of Coca Cola Company reveals leader in the beverage industry. The values of the coca cola company specifically associated with the leadership, collaboration, quality, diversity, passion, accountability, and integrity as well. In discussing leadership attributes of coca cola Company, is the development of courage to shape with better shape. The company specifically committed in the spirit and values initiation in the world’s greatest brand.
In the journey of the executive leadership of Coca Cola Company become profitable and sustainable growth company. The management structure developed under the centralized decision making, whereas each employee follows the leadership direction in fostering the organizational process. The evolvement of management structure of coca cola company sharp the execution of external forces on the marketplace. Such focus on external forces dominating the characteristics of the high productivity, greater speed, and effectiveness. The success parameters of the company evolve with the initiation of the leadership attributes in the beverages industry. Continuous development in taste buds experiencing positive behaviors in the services industry to attain the potential values of the customer (MOSS).
The leadership characteristics of Coca Cola Company initiate the dominant factor in building courage by focusing on internal and external environment factors. Setting goals globally, initialize the attributes of increase in productivity, profit maximization, developing of networking partners, execution of developing the portfolio in drinking brand and for employee’s great place to work with the management of Coca Cola Company.
Coca Cola Industry Analysis
Coca-Cola is the manufacturer, retailer, and marketer of beverages, syrups and concentrates that are non-alcoholic. Coca-Cola Company comes under beverages industry. It was founded on 8 May 1886 in the Georgia United States. Headquarters of Coca-Cola is situated in Atlanta, Georgia, United States. Coca-Cola serves customer almost all over the world and it’s consider as a global brand. In the year 2015, Coca-Cola earned $44.294 billion dollars’ revenue. In the year 2015, the net income of Coca-Cola was $7.351 Billion dollars. Coca-Cola has more than 123,200 employees (Coca-colacompany.com, 2015)
Although the Coca Cola Corporation is a leading brand in the beverages and its operations are going profitable, the key strategic challenges in external and operating business environment could pose significant threats to the market expansion and the status of the leading beverage brand in the world. Changing political and economic situation, increasing competition and the globalization are some of the most robust challenges in that regard. Therefore, it is crucial to have focused on these issues (Mourdoukoutas, 2013)
The remote factors are those who have the significant impact on the operations of the company and which are less in control of the Coca Cola Corporation. It is thus quite important that the analysis of such factors must be performed in an effective manner. These factors include:
These factors are also very important in the realm of the current globalization arena. The economic recession has recently hit the world, and the economic activities in the world have dramatically changed. The capital flight has also been seen, and the saving and the investment of the companies have also been affected. Therefore, it can be seen that the company must reduce its expenditures and focuses on the cost efficient processes and the operations.
The impact of the economic situation is thus quite important in that instance. Moreover, the political scenario is also changing. The ongoing war on terror has affected the countries and the situation for a safe business conduct is difficult. The situation in the Middle East is particularly not right. Therefore, the political stability in these countries is an important factor that must be considered while making strategies in the future. Therefore, this factor must also need to be considering in that instance.
Social factors required to focus on the study of the culture of the countries and their people. These aspects are necessary that the operations must be aligned with the culture of the people. The activities that are against the local culture of the people might end up in dusters. Therefore, these things are thus important to take the considerable stance in that extent and regard.
Today is the era of technological development. The societies have seen technological advancements. Therefore, the role of the technology is thus quite important. The use of the internet and communication technologies is at the boom. Therefore, it is important that these things must be given priorities. The factor of the technology is thus most important, and it cannot be neglected at all.
These are the factors that were present in the external and the remote environment of the company. Besides that, the role of the internal and close factors is also thus important. Therefore, the focus must be given on the factors in the operating environment of the organization. The detail of is given below (Understandingthemarketprocess, 2014).
The operating environment of the company is also important. There are various factors that exist in the operating environment, and it is equally important to have focused on these issues. They also have an impact on the company’s operations that are vital for the success and the effectiveness of the operations.
The most important factors in that regard include:
These factors also have the significant impact on the operations of the company. Therefore, their roles cannot be neglected at all. These factors are employees, management, culture, and CSR. The employee’s empowerment and the satisfaction are thus quite important. They must be empowered, and they must have information about the company policies and rules and regulations. Otherwise, it could be difficult for the company to operate affectively to capture the market.
Meanwhile, the management of the company is responsible for the development of the organizational strategies in that instance. Therefore, these things must be considered that the top level management of the company is needed to be affective (Roy, 2013). Otherwise, the things could eruptive and less affective in that instance. The culture of the organization is needed to be affective that provide solid support for the affective delivery of the objectives.
Corporate social responsibility is thus also important, and the management of the company must focus on the wellbeing of the stake holders and provide their; level best for the satisfaction of the stake holders. Therefore, these things and the factors are important to consider in that regard (Understandingthemarketprocess, 2014).
Industry Analysis & Porter’s Five Forces of Coca Cola
The role of the porter’s five forces is necessary to undertake to examine the industry with which the company operates. Therefore, these forces must be examined and operates. These forces are present and always have an impact on the performance of the company in larger context. These factors include:
- Bargaining power of suppliers
- Bargaining power of buyers
- Rivalry among the firms
- Threats of substitutes
All above-mentioned factor form the porters five forces model that sheds light on the performance of the company in that instance. The rivalry among the firm is quite high, and the firms are trying to capture the market share. The Pepsi Cola and other local and international brands are important in that regard. They are striving to take the market share, and that could be a threat.
Threats of the substitute are moderate, and it is not much high. The substitute beverages are available; however, they are not the replacement of the beverages that are on the market. Thus, it can be concluded that these threats are not much high. However, the bargaining power of the buyer is quite high. The suppliers of the raw material are quite large in number, and therefore, it is thus easy to acquire raw material on cheap rates.
The competition is very tough, and the competitors are trying to capture a large share of the market in that instance. Therefore, adequate policies are needed to build to handle such level of competition in that instances. Otherwise, the market share of the company could be difficult to capture in that essence. Thus, the consideration of the porters five forces model is thus quite important to consider (Hill, Schilling, & Jones, 2016).
SWOT Analysis of Coca Cola
Strengths: The brand equity, highest valuation of the coca cola as a company of more than $80 billion, presence in all over the world as it has captured one of the largest target market as well as market share of the company is significant. The growth of Coca Cola can be seen by the following graph, the strengh of the company can be seen in the recent year, the brand is countinously growing from 1919 to 2011 and so on.
Weaknesses: The low diversification of core products of Coca Cola, the direct piece of rivalry with the peps and not targeting the hygienic products or beverages are its main types of weaknesses.
Opportunities: The opportunity if targeting health products with its main offerings such as beverages could penetrate appropriately in the developing target markets and need to concentrate upon drinking water in the effective piece of packaged style (Banks).
Threats: The indirect types of the competitors such as affordable beverages, local drinks and the difficulties Coca Cola face in sourcing the raw materials.
Identification Of Core Capabilities
The large processing or operations network of the franchise for the coca cola, the dynamic as well as paramount value of the brand, the distinctiveness approach for controlling the cost beverage productions operations, internal management efficiencies in controlling as well as the administrative structure of the company are the primary competencies. The coca cola is dealing with the activities or competencies, which are primarily important and core in nature, would determine with distribution, networking capabilities of coke’s franchise in all over the world while making a premium beverage product through highest paid values.
Comparison And Forecast Of Past Performance And With Competitors
The past rate of financial progress of the coca cola in terms of market share especially from previous 5 years is more than $40 billion returns have accomplished. In the future, it has been projected that coca cola would cross the revenues of $85 billion in coming or future 5 years. The comparison with the competitors reveals that Pepsi could be threatening, as there is a difference of almost $2 billion at least in the net revenues of both the companies annually. The local or the indirect rivalries of the coca cola are increasing with an efficient level or rate of penetrating the target markets of the coca cola. Therefore, coca cola must need to address these types of internal financial indicators for the growth in beverages markets (McGrath).
Coca cola has determines the important factors in order to create the strategies that can give then the profit eventually in the market, they are focused on the beverage market and the soft drink industry market, coca cola can said to be a market leader because it is the first over in the beverages industry and have the best brand image across the world. Thus, the main primary competitors of the coca cola is PepsiCo; as it have the similar products in the market and also had the positive brand image, both the companies are suffering from the same nature of the competition and have targeted the audience in the same way, with the same or similar products. In the following table the brand’s varieties range regarding to the products are discussed as below:
Source: Coca Cola (2016)
The graph of price share of Coca Cola and Pepsi Co. is given as following:
BCG Matrix of Coca Cola
Stars: The market share as well progress in the markets are high than other offerings of the company for coca cola. Therefore, PowerAde would fall in this category for stars.
Question Marks: The products that could have the potential or capacity for future development or could turned into the stars while capturing even more market share or penetrated marketplaces of coca cola. That is why Dr. Pepper along with vanilla flavor coke is question marks.
Cash Cows: The business source for generating the efficient income or having maximum strength for generating income or revenues are the products of coca cola that fall in this category. The coca cola, Fanta, Evian and diet coke product at the cash cow stage.
Dogs: These products have no chance for growing in the future as they have experiences the mature target markets life cycle phase and become sick at current level or state. Fresco is therefore integrating with the dog matrix.
Objectives & Strategies of Coca Cola
This study revolves around the Coca-Cola Company (North America). This is a fact that every organization depicts its short and long term objectives to have a successful future. Interestingly, the management of the company makes different strategies and objectives, which create an impact on the organization’s performance. The focus of the study is on the objectives and strategies of Coca-Cola Company along with the impact on all key stakeholders. This is necessary for the management to demonstrate different objective, especially in the competitive market to choose a right path and give a pertinent direction to all key stakeholders. Relative to the Coca-Cola Company in the United States of America, the management has different objectives for both short and long run. These objectives and strategies are result oriented which seems good for the company’s growth and profitability. The illustration of strategies and objectives is as under.
The sales of Coca Cola and Pepsi Co. can be seen in the graph that was in the North America:
Long Term Objectives
The main objective of the Coca-Cola Company in this region of the world is to conduct the business for the tomorrow world. For Instance, the management intends to depict the ethical responsibility in both, the production and the market to sustain the growth and retain the loyalty regarding the customers in all over the world. The company believes in the change, and this is one of the most prominent objectives. The change with the passage of the time can let the company retain its prominent international market position (Meagan Priselac).
Moments of Optimism And Happiness
In addition, this company accelerates the moments of optimism and happiness. This is a long-term objective, which seems pertinent to the vision of the company. For Instance, in the different advertisement campaigns on different media channels, the optimism and happiness can be observed. The purpose is to attract the customers and share the happiness for a long run.
To justify the happiness and optimism among the customers, the management of this company intends to use its formidable assets, brands financial strengths, strong commitments and strong brand image. The integration of these resources is necessary to meet these objectives for a long run. However, in term of internal company’s position, the main objective of the company is to make a working environment where people can produce the best possible outputs for the customers. Providing the best working environment can help people do their best ( Tim Nudd).
People’s Needs And Desire
Moreover, the company intends to meet people’s needs and desire through the quality beverages. This is a fact that the company intends to sustain its quality drinks for the customers. It can play with the prices but cannot compromise on the quality. This objective has helped the company sustain its business growth in the international market. Especially, in the diversification process, this objective comes into the line, as the management intends to retain its quality when integrating the local culture. Thus, an objective is to retain the basics and lead the industry for a long run.
Manage People And Time Effectively
Furthermore, another objective of the company is to manage people and time effectively. Relative to people, the management intends to have best people in the company to produce the best possible products. It seems good for the company when an employee carries the organizational goals with his efforts. Thus, the overall organizational culture and flexible working environment let the employees meet this objective for the company for a long run (ESTERL). Concerning the Coca-Cola Objectless for a long run, we can consider the five P’s of the company. To set the long-term objectives, these five P’s have been considered by the company. The illustration is as under.
Five P’s of Coca Cola
This has been revealed that the company intends to increase the return to all shareowners. It seems the positive company’s intentions towards the profitability, quality, pricing and the customer satisfaction. Due to the immense sales in all over the world, the company still manages the handsome profit, which also enables the company to maximize the shareowner’s return. In other words, we can say that the company wants to maximize its product through sales and customer satisfaction, which can enhance the return on investment and return to the shareowners ( The Coca-Cola Company).
The management of the company intends to inspire people to work here and produce the differentiated products for the customers. For Instance, the Coca-Cola (North America) has a unique culture, where employees can do creative and innovative work to produce the different beverages. We can observe different brands of the company for the different regions, depending on the people’s interest, needs, desires, and requirements. This is due to the best people in the workplace ( The Coca-Cola Company).
The company justifies the people’s needs and desire through quality and taste. The objective of the company is to demonstrate the high brand image. Different beverages for the different regions according to the requirements have helped the company to sustain its strong position and people’s loyalty. The company intends to depict its care for the customers through different beverages, as it has strengthened the brand image. This is also a prominent objective of the company for a long run ( The Coca-Cola Company).
This is been observed that the company wants the best business partners. For Instance, the company intends to sustain the loyalty regarding the investors, media channels, suppliers, customers and all other key stakeholders. The enhancement of the mutual loyalty is good for the company to sustain the business growth in North America and in the different region of the world. Making good relations with all key business partners is in the best interest of the company, which increases the profitability and the stakeholders’ satisfaction ( The Coca-Cola Company).
Relative to the planet, the Coca-Cola Company intends to demonstrate the corporate social responsibility to create the goodwill and enhance the good reputation in the global market. The management of the company wants to depict the ethical business operations in this region to enhance the attraction regarding the stakeholders. Concerning the ethical business operations, the management contains the objectivity regarding the perfect and ethical utilization of the different resources. The purpose is not only maximizing the profitability but also increase the visibility of good brand image ( The Coca-Cola Company).
Coca Cola Long Term Strategies
Regarding the matters Coca Cola has to remain confident in the beverage industry for the long-term and the expected growth, thus, the company has focused on the near-term outlook there are challenging macroeconomic conditions that the company could face in the market. However, the main focus of the company is now on creating the 2020 Vision so that there could be the delivering of the value growth through stay focused on the long-term EPS growth. Moreover, for that the company has made the five strategic priorities staying focus on the ESP growth from the year 2014 and 2015.
Coca Cola is the largest beverage company and it has developed the forward-looking statements estimate so that there could be better anticipation of the certain risks through the various historical experiences. Coca Cola has focused on the expectations or projections in order to bring the evolving consumer preferences so that there could be the increased competition, however, the competition has already increased for the Coca Cola in the diversified market, as there are various brands and the American economy is facing the issues regarding the decreased agricultural productivity and implementation of the maximum taxes in the United States. There are the increased cost of the labor and disruption of supply; in future there can be the shortage of energy or fuels and the shortage of ingredients that are important for the unfavorable general economic conditions.
The company negative publicity has created in the market because the consumers become aware in the market, there are the issues of the obesity, safety or quality and the long-term growth objectives. Therefore, Coca Cola has focused on the reinvestment program in order to follow the satisfactory terms and the productivity. Thus, the company has focused on the accuracy that is important to be provided in the market and the bottling partners experience so that the future impairment charges can be treated in the proper way.
Coca Cola is following the laws and regulations for the accounting standards because there can be the fluctuations in the exchange rates of the foreign currency. In this way, the Coca-Cola Company has different long-term strategies. Concerning the strategies, this has been revealed that the company has five prominent strategic actions, which are for a long run.
Thus, Coca Cola has the confident in their ability and there is focus on the sustainable growth, moreover, in order to achieve the long term objectives the company is dedicated to strengthening and making the brand as a world’s leading beverage. If the initiatives to reinvigorate growth are clearly followed then the speed decision making could focus on enhancing the growth in the local market. Coca Cola could do the organizational changes according to the countries as there could be the empowerment of the employees and company could make the incentive metrics.
Consequently, there could be the accountability to business results for the successful productivity program. Coca Cola operating model has focused on increased the disciplines for the future growth and to increase the efficiency in the direct marketing investments. Coca Cola is becoming the company’s which has effective global supply chain and for the better future, there is need to focus on the beneficial manufacturing in North America, Coca Cola could bring the productivity initiatives of the supply chain of the company focus on the sustainable net revenue growth and the invested capital over time. The company could target the brand and growth investments for the global strengths and I this way can focus on the announced plans. There are other tactics or plans by the company that focused on the quality of marketing and the disciplined strategy, Coca Cola is doing the incremental investments and prioritizing its spending so that there could be the right price focus in the local operations and company could achieve the compensation targets.
Driving Revenue & Profit Growth
Interestingly, the management of the company has focused on the affordable drinkables for the customers to increase the sales and maximize the revenue and profit for a long run. This is a fact that the products of this company are for all type of customers. Due to this strategy, the company experiences the immense sales, which increases the revenues. In addition, the prominent strategy for a long run is to keep the balance between the price and volume in the different regions. The strategy is different in emerging and developed markets. For Instance, in the developed markets, the small and premium packages are in the limelight. Moreover, the market segmentation has been observed as a prominent strategy of this company. The segmentation based on demographics and market seems worthy for this organization to make the difference and increase the visibility of both, the revenue and the profit (McGrath).
Investments In Business & Brands
The second strategy is the investment in the business and brand. The management focuses on the healthy products for the customers. To demonstrate the quality healthy products for the customers in the region, the company investments $250 million in the different advertisements campaigns on the different media channels. The main focus of the company is to show the impactful ads on the different media channels to create the positive impact and enhance the visibility of the sales for a long run in the presence of the intense competition.
The investments in the different organic brands are also a good initiative by the company to depict the change and justify the needs of the customers with the passage of the time. This is all about change through the pertinent investments with the passage of the time. Coke, Diet Coke, Coke Zero and Coca-Cola Life are the example of the investments. Interestingly, these products are in the limelight due to the customer needs and requirements. The Company has an ability or potential to invest in its product line. Thus, this strategy seems worthy, as it has helped the company to sustain the growth, customer loyalty, and satisfaction ( The Coca-Cola Company).
Efficiency In Business Operations
The inclusion of new technology in the different business operations is in the limelight. This is a fact that the management has managed the change with the passage of the time through the technology. For Instance, to meet the demands in all over the world, especially in the North America, the technology has helped the company to contain the effectiveness and efficiency (Trefis Team). The purpose is to retain the quality and keep the balance regarding the demands in the different regions. The training and development of the employees have also helped the company to retain the effectiveness and efficiency of the different business operations ( The Coca-Cola Company).
Simplification Of The Company
Keeping the things simple is also a good strategic action by the management, which seems good for a long run. For Instance, we can see the packaging process of different brands, which seems simple as compared to the other competitors. The management simplified the company through best career opportunities, elimination of different roadblocks, efficient and flexible working environment and an effective operating structure. For Instance, the connection of the regional business with the headquarters in the North America is a perfect example of this strategy ( The Coca-Cola Company).
Core Business Model
The business model of the Coca-Cola Company revolves around the 500 brands. The brands are beverages, juices, sports drinks, coffee, tea, water, and dairy. In North America, the Coca-Cola Company took violent steps in 2015 to increase the franchising of Company-owned bottling territories. The main goal of this strategy is reshaping the bottling system in 2017. In addition, the affiliation with the bottling partners in this region has helped the company to improve the process ( The Coca-Cola Company).
Coca Cola Specific Grand Strategies
One Brand Strategy
The One Brand Strategy has been considered as a specific grand strategy by this company. Concerning the different marketing campaigns ion different media channels, “Taste the Feelings” is the new theme regarding the all coke trademark brands ( Tim Nudd). This is a grand strategy by the company, which let the customers choose their taste according to the needs, desires, and requirements. The main purpose of this strategy is to a reinforcement of Coca-Cola brands for everyone in the different regions, which can enhance the visibility of both, goodwill and the profitability for a long run. The company wants the customers to feel the drinks and make the every moment of the day more happy and enjoyable (Jay Moye ).
The Proprietary Bottles
The Coca-Cola Company distributed the products in the proprietary bottles. This is a grand strategy, which helped the company to limit its prices. Obviously, this strategy direct affects the prices, as owned bottles reduce the cost of the production and packaging. Thus, this strategy justifies the affordable prices of the different brands as compared to the other competitors in the market (Adeevee.com).
Fixed Prices & Retailer Responsibility
The company demonstrated the fixed process of different brands for 7o years, which created a huge impact on the customers. It increased the sales with the passage of the time. In addition, the retailers are responsible for keeping the Coca-Cola products safe, as these products are to be kept under 36 degrees Fahrenheit (Feloni)
Future Product line
For the future product line, Coca Cola Company is operating its income metric so that there could be speed and agility in the business operation; however, for the future the compensation targets the company wants take initiatives by saving the $3 billion. Coca cola has done the annualized savings by 2019 and its core business model has to refocus on the unmatched global system. It is the world’s greatest beverage brands so have the strong local bottling partners, in the North America and the other countries. Moreover, there could be increase in the future product line, because the company had already taken the advantages due to the past product line, following graph show the past product line that the company increased in order to make the customers.
Long Term Objective Results To Accomplish Strategies
Concerning the results of the objectives, the management of the company still manages to depict the change with the passage of the time. For Instance, the five P’s such as profit, people, planet, partner, and portfolio have helped the company to accomplish or implement the strategies. This is all about giving the direction through the different objectives, especially in the competitive market to implement the different strategies (Roderick).
In order to accomplish the long-term initiatives, Coca Cola previously announced the long-term value so that there could be the benefits for the shareowners in the market; the company could expand its productivity program so that there could be better EPS growth target. Coca Cola has already focused on the target market and trying to improve the brand because the company knows its value in the market, thus, the macroeconomic environment of the company is challenging through 2015 and there are focus on to bring more effectiveness on the company operation. If Coca Cola follow on the desired initiatives that are need to be taken in the market then there could be growth as the company showed growth in the recent year by focusing on the revenue.
In end, this is to conclude that Coca-Cola in the increase of the competitive era focused on the external forces environment so that the business could be shaped effectively in the future as there is the growth recognition. The company has done the maximization of long-term return to shareholders and Coca Cola has focused on the aspects to become more profitable and sustainable growth company in the future, thus, the company is now on creating the 2020 Vision and focuses on the long-term EPS growth. Coca-Cola also evolving the consumer preferences so that that there could be the increased competition and focus on the laws and regulations for the accounting standards.
Coca-Cola has retained its success and business growth in the international market through its effective strategies and implementation process. In this study, we discussed the objectives and strategies of this company, especially in the North America, which has created a direct impact on the overall performance of the company. This is necessary for this organization to retain its strategies along with some amendments with the passage of the time, as change is also needed according to the new trends in the beverage industry.
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