The Coca-Cola Company is the world’s leading producer, marketer and distributor of non-alcoholic beverages with 140,000 employee associates and operations in over 200 countries. The Coca-Cola brand is one of the most recognized brands and is responsible for the concentrate and syrup of four of the five top selling soft drinks in the world, including Coke, Diet Coke, Fanta and Sprite. The Coca-Cola Company has enjoyed profitability and financial success the majority of the years since the creation of the organization in 1892. The goals and objectives established by Asa G. Candler, the co-founder of The Coca-Cola Company, have been met and exceeded over the course of the past 100 years.
In developed markets, the growth of the sparkling drinks industry from the 1970s to the 1990s came to a halt. At the same time, competition was intensifying from beverage companies that produced still and health-oriented drinks, as consumers became more health-conscious. Many of the challengers were small businesses, enabling them to be more nimble and innovative than multinational organizations like Coca-Cola. The company’s franchise business model was also under pressure. The bottlers’ incentive was to use the precious concentrate in low-volume, high-margin products, whereas Coca-Cola’s profits were linked solely to the volume of concentrate sold to bottlers, rather than the price paid by customers. This was creating increased friction in the relationship between Coca-Cola and the partners on whom it relied. An additional challenge was responding to the environmental impact of transportation and packaging.
However, during the past decade, The Coca-Cola Company has experienced organizational challenges regarding stagnant growth of the carbonated beverage market. A corporate culture, arrogant and resistance to change, with no insight to the changing customer expectations regarding beverage options have limited the expansion of core Coca-Cola brand products....