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A. Executive Summary
Have you ever wondered what it would be like to know the ins and outs of a 128-year-old
Fortune 500 company? We got that chance with Coca-Cola! This project enabled us to get
exclusive access to important information shared to us by Coca-Cola General Manager Jon
Webster. In the pages that follow we will breakdown what makes this company successful
as well as identify and possibly correct what we as a team feel are areas that could be
improved upon. The philosophies from the book Good to Great will be used to judge how
well we think Coca-Cola is operating.
B. Study Objective
Our study objective for this project was to fully understand how Coca-Cola implements
strategy and organizational design while benchmarking the company with characteristics
of the book Good to Great. It is also our objective to find ways in which we would do
things differently. In order to be able to analyze the company completely, we first
researched the company’s background to understand their mission, size, and the challenges
it faces today. We want to know and comprehend who their major stakeholders are, what
Coca-Cola’s competitive advantage is and how effective they are at evaluating their
performance. It is important for us look at the challenges it faces today with regards to the
economy, competition, and technology. To properly understand and visualize how
Coca-Cola is actually managed we took a look at their structural design and the different
hierarchies that exist. Since every structure has its pros and cons we also questioned why
Coca-Cola is using such structure and if it has positively affected strategy, goals, and the
employees. The most important part of the interview and study of the company comes
from the Good to Great questions we asked. Covering the three important sections of the
book was crucial for the qualitative information we needed to completely analyze the
company. Questions about disciplined people covered the frequency of performance
reviews, leadership qualities possessed by their leaders and which qualities are needed to
get on or stay on their bus. Questions on disciplined thought surrounded the hedgehog
concept and red flag mechanisms in the firm, while the topic of disciplined action included
questions about the level of freedom and autonomy employees possess and how they are
making sure the company lasts for another 100 years. After attaining so much information
we analyze it all in order to make recommendations and conclude our ideas on Coca-Cola
in regards to the Good to Great book.
C. Research Method
There were various methods that we used in order to gather data and do proper research for
this project, interviewing a professional was our primary source. Our team interviewed Jon
Webster, the General Manager of the Pacific Northwest Region at Coca-Cola. To collect
other various data we used the University of Washington library database and websites
such as Hoovers.com and various offical Coca-Cola websites.
D. Company Analysis
1. Background and Content
The Coca-Cola Company is the world’s largest beverage company as well as the leading
producer and marketer of soft drinks. In 1886, the Coca-Cola beverage was invented by
John Stith Pemberton who was a pharmacist from Columbus, Georgia. He created a
flavored syrup that could be mixed with carbonated water and was first sold at Jacob’s
Pharmacy in Atlanta. In 1891, Asa Candler purchased exclusive rights to the Coca-Cola
formula and then together with his brother and Pemberton formed The Coca-Cola
company. In 1926, Robert Woodruff, the president of Coca-Cola, established a Foreign
Department and expanded the Coca-Cola Company internationally. In 1982 Coca-Cola
introduced Diet Coke. It became the top-selling soft drink in the world in just two years. In
1985, the formula for Coca-Cola was changed and the new Coke was released with the
name “Coca-Cola Classic". In the same year, Coke became the first soft drink to be
consumed in space, having been placed in a specially designed can that was called
“Coca-Cola Space". Today, Coca-Cola is a public company incorporated and
headquartered in the United States. They own nearly 450 brands in more than 200
countries and are rated as one of the most recognizable trademarks in the world
(“Coca-Cola Journey," 2014).
The Coca-Cola portfolio features 17 brands worth over one billion dollars each, which
includes Diet Coke, Fanta, Sprite, Coke Zero, Vitaminwater, Powerade, Minute Maid,
Simply, Georgia and Del Valle. Globally they are the No.1 provider of carbonated
beverages, as well as ready-to-drink coffees and juices.
The Coca-Cola company’s mission focuses on the impact they want to make on the
customers who consume the Coca-Cola products. Their missions are:
• To refresh the world.
• To inspire moments of optimism and happiness.
• To create value and make a difference
Beyond their mission, the Coca-Cola company also has its official “vision" which is to
create a company with a long-term vision as well as help achieve sustainability and quality
growth. This vision are as follows :
• People: Be a great place to work where people are inspired to be the best they can be.
• Portfolio: Bring to the world an array of quality beverage brands that anticipate and
satisfy people’s desires and needs.
• Partners: Nurture a winning network of customers and suppliers, together we create
mutual, enduring value.
• Planet: Be responsible citizens who make a difference by helping build and support
sustainable communities.
• Profit: Maximize long-term return to shareowners while being mindful of our overall
responsibilities.
• Productivity: Be a highly effective, lean and fast moving organization.
According to the 2013 annual report, the Coca-Cola company had 130,600 associates
