Mission:
 Our Roadmap starts with our mission, which is enduring. It declares our purpose as a company and serves as the standard against which we weigh our actions and decisions.
• To refresh the world
• To inspire moments of optimism and happiness
• To create value and make a difference
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Goals in their 2020 Vision:
 More than doubling our system revenue while increasing system margins by 2020
Ensuring that we are the most preferred and trusted beverage partner
Attaining global leadership in corporate sustainability
Managing people, time and money for the greatest effectiveness
Becoming one of the world’s premier employers

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Categorized in the food and nonalcoholic beverage section.
Current environment
• Economic
 Switching to tap water
• Sociological
 Health conscious
• Demographic
 Trade down to private label brands

 Coca-Cola’s strategic priorities to maintain dominant market position:
• Drive global beverage leadership
• Accelerate innovation
• Leverage our balanced geographic portfolio
• Lead the Coca-Cola system for growth
 Enhance core capabilities of consumer marketing, commercial leadership, and franchise leadership.

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Based on sales growth, Return on Equity and strategic profit model, Net Profit Margin and many other strategic indicators we conclude that Coca-Cola has a fair market position financially.
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Going forward Coke will be able to maintain the status of a great company and continue increasing shareholder value.

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When operating in a highly competitive beverage and snack market you find yourself competing in all these following areas:
• Pricing
• Advertising
• Sales
• Promotional Programs
• Product Innovation
• Increased Efficiency
• Technology
• New Packaging
• New Vending and Dispensing Equipment
• Brand Trademark and Development Protection

 Dr. Pepper Snapple Groups, Inc.
• DPS is a Texas by-product of Cadbury Schweppes, being the third-largest beverage franchiser in the domestic market, with market share of 15% for 2008.
• DPS manufactures both beverages and confectionery goods, and sells some of its products in the same geographical regions as does Coke and PepsiCo. In the
United States some of DPS’s more significantly well know products are the following: Dr. Pepper, 7Up,
Hawaiian Punch, Canada Dry, Snapple (US Operations).
• They currently have little foothold on the global economy

 PepsiCo
• PepsiCo, is Coca-Cola’s most prominent competitor.
• PepsiCo has been found to be the second-largest company in the domestic non-alcoholic beverage industry. Its 31.1% market share in the carbonated soft drink (CSD) market back in 2009 comes only second to KO’s (Coca-Cola) share of 42.8% or 43%.
• The corporation is known to develop the following well known brands: Pepsi, Mountain Dew, Gatorade,
Aquafina, Tropicana, and Lipton.

 For years now Coke and Pepsi have been battling for the title of the leading soda producer. Though both of these companies have a strong presence within the beverage industry and powerful brand names, it is easy to see which of the two has a stronger presence in the global economy.

 When it comes to international presence, Coca-
Cola easily triumphs over PepsiCo. Back in 2009
Coca-Cola generated over 75% of its revenue overseas compared to just over a third of revenue for PepsiCo. One of Coca-Cola’s strongest footholds is found in developing countries. As well as in the continent of Africa. Though some may say that this growing trend is bound to slow down, it is apparent that Coca-Cola has less to lose in the market than PepsiCo as indicated by the following graph:

30.00
25.00
20.00
15.00
10.00
5.00
0.00
10.38%
4.36
Revenue by Geographical Region
Annual 2009 Figures
56.88%
23.90
5.07%
2.13
8.61%
3.62
19.06%
8.01
Pacific Eurasia/Africa Latin America International United States
Total Revenue -
Location
Percentage of Overall Revenue%

 Currently both Coke and Pepsi seem to be seeking new markets and are overstepping international boundaries in order to do so. You now see both soft drink giants continuing to compete in new markets like in Africa. Unfortunately for Pepsi,
Coke seems to have already won the battle in
Africa, before it even started.
 Coca-Cola’s growing popularity in Africa
 Problems with distribution
 Growing Middle Class

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 Using their resources wisely
 Diversify their products
 Appeal to the healthier generation
 Keep their eye on their competition
 Improve their innovative and technological strategies
 Find ways to set themselves apart from their competitors

Coca-Cola is thought to be one of the
 Best organized
 Best financed
 Most aggressive competitor in the industry
By investing internationally Coca-Cola has greatly expanded the potential size of the soft drink market

 It is anticipated that in the future Coca-Cola will make its biggest earnings strides overseas where it already earns about 80% of its operating income
 Coca-Cola stays committed to making its products available as soon as the local economies become viable, using its vast resources and experienced management

 FEMSA is the largest beverage company in
Latin America, exporting its products to the
United States, and select countries in Latin
America, Europe and Asia
 May 2003 Coca-Cola FEMSA acquired
Panamerican Beverages, Inc. (Panamco) and is now the second-largest Coca-Cola bottler in the world, accounting for almost 10% of
Coca-Cola’ s global sales

• Diet Coke
• Sprite
• Fanta
• Coca-Cola Zero
• Vitamin water
• PowerAde
• Minute Maid,
• Simply
• Georgia Coffee

 Decline in the bottled water market
 Fluctuations in foreign currency in relation to the value of the U.S. dollar
 Cost of production inputs/bottler dependence
 Brand dependence
 Liquidity issues

 Annual sales have declined since 2008
 Can be attributed to many factors including the current recession and increased environmental consciousness
 High number of consumers have looked for cheaper water, switched to tap water, or favored reusable containers to save money and eliminate waste

 Plays a huge role in the overall attractiveness of the company
 Coke generates 76% of income from outside the U.S.
 Affects financial ratios and numbers that are crucial to satisfying current stockholder and future investors

(Taken from Coke ’ s 10-K filed April 30, 2009)
Percentage Change
2009 versus 2008
Increase in concentrate sales volume
Structural changes
Price and product/geographic mix
Impact of currency fluctuations versus the U.S. dollar
7%
(2)%
2%
(10)%
Total percentage decrease (3)%

April 3, 2009 March 28, 2008
Eurasia and Africa
Europe
Latin America
11.1%
37.1%
24.4%
12.1%
39.2%
27.0%
North America
Pacific
Bottling Investments
Corporate
23.0%
24.5%
(3.7%)
(16.4%)
17.3%
20.7%
0.9%
(17.2%)
“ In the first quarter of 2009, foreign currency exchange rates unfavorably impacted consolidated operating income by approximately 17%, primarily due to a stronger U.S. dollar compared to most foreign currencies, including the Euro, Brazilian real, Mexican peso, and South African rand, which had an unfavorable impact on the Eurasia and Africa, Europe, Latin America, and Bottling Investments operating segments. The unfavorable impact of a stronger U.S. dollar compared to the aforementioned currencies was partially offset by the impact of a weaker U.S. dollar compared to certain foreign currencies, including the Japanese yen, which had a favorable impact on the Pacific and Bottling
Investments operating segments.
”

 Price variations affect profit margins and total production costs
 Red ocean market leads to price taking as opposed to price setting
 Raw material costs of bottlers
 Examples: Aluminum, Corn, Plastic

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Coke only competes in the non-alcoholic beverage market
Heavy dependence on carbonated soft drinks
(almost 75% of total volume sold)

 Below competitor and market averages in the current and acid test ratios raise questions about the company’s ability to finance debt as well as what types of assets it reports on the balance sheet.

 Carbonated Soft Drinks
• Marketing Messages
• Opportunities overseas
• Artificial Sweeteners
• More power in the hands of customers and retailers

 Healthier lifestyles
 Demand more from products

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 Coca-Cola and New United Resource
Recovery Corp

 Understand your corporations financial stability
 Have a strong competitive strategy
 Know your strengths and weaknesses
 Go global
 Understand your market
 Know your competitors
 Take advantage of opportunities

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