ENTERPRISE HISTORY AND BACKGROUND

The Coca-Cola company is the largest corporation, manufacturer, retailer,

distributor and marketer of non-alcoholic beverage concentrates syrups.It
produces more than 500 brands in over 200 countries or territories and
serves over 1.7 billion servings each day.

1894 … A modest start for a bold idea In a candy store in Vicksburg,

Mississippi, brisk sales of the new fountain beverage called Coca Cola impressed
the store's owner, Joseph A. Biedenharn. He began bottling Coca-Cola to sell,
using a common glass bottle called a Hutchinson. Biedenharn sent a case to Asa
Griggs Candler, who owned the Company. Candler thanked him but took no
action. One of his nephews already had urged that Coca-Cola be bottled, but
Candler focused on fountain sales.

1899 … The first bottling agreement Two young attorneys from Chattanooga,
Tennessee believed they could build a business around bottling Coca-Cola. In a
meeting with Candler, Benjamin F. Thomas and Joseph B. Whitehead obtained
exclusive rights to bottle Coca-Cola across most of the United States

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(specifically excluding Vicksburg) -- for the sum of one dollar. A third
Chattanooga lawyer, John T. Lupton, soon joined their venture.

1900-1909 … Rapid growth the three pioneer bottlers divided the country into
territories and sold bottling rights to local entrepreneurs. Their efforts were
boosted by major progress in bottling technology, which improved efficiency
and product quality.

21st Century … The Coca-Cola bottling system grew up with roots deeply
planted in local communities. This heritage serves the Company well today as
people seek brands that honor local identity and the distinctiveness of local
markets. As was true a century ago, strong locally based relationships between
Coca-Cola bottlers, customers and communities are the foundation on which the
entire business grows.

Mission and Objectives

Mission Coca-Cola declares the purpose as a company and serves as the standard
against actions and decisions:

 To refresh the world.

 To inspire moments of optimism and happiness.
 To create value and make a difference.

Vision

The vision of Coca-Cola is the framework for their guides of every aspect of its
business. It is presented in 6Ps:

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  People: Be a great place to work where people are inspired to be the best
they can be.
 Portfolio: Bring to the world a portfolio 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 a responsible citizen that makes a difference by helping build
and support sustainable communities.
 Profit: Maximize long-term return to shareowners while being mindful of
their overall responsibilities.
 Productivity: Be a highly effective, lean and fast-moving organization.

Values

Coca Cola also provides seven values, which guide its employees’ actions, but
doesn’t mention any of them in its mission. The values serve as a compass for
company’s actions and describe how they behave in the world.

 Leadership: The courage to shape a better future.

 Collaboration: Leverage collective genius.
 Integrity: Be real.
 Accountability: If it is to be, it's up to me.
 Passion: Committed in heart and mind.
 Diversity: As inclusive as our brands.
 Quality: What we do, we do well.

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Operations

In line with its Vision 2020 strategy, which seeks growth opportunities and
operational efficiencies, The Coca-Cola Company adopted a new global operating
structure in January 2013. The company's business is divided into three operating
segments: Coca-Cola International, Coca-Cola Americas, and Bottling Investments
Group (BIG). The Coca-Cola International business consists of the
company's Europe, Pacific, and Eurasia & Africa groups, while Coca-Cola
Americas includes the company's North America and Latin America groups.

The Coca-Cola Company's bottling investments help to maximize the efficiency of

its production, distribution, and marketing efforts. They include a 29% stake in
Mexico's bottler Coca-Cola FEMSA (now the largest independent Coke bottler),
23% of European bottler Coca-Cola Hellenic Bottling, and 29% of Coca-Cola
Amatil, a bottler and distributor of Coke products in Australia, New Zealand, and
surrounding countries. In mid-2013 Coca-Cola opened a new bottling plant in
Myanmar as part of a planned $200 million investment during the next five years
there which also includes adding more than 22,000 jobs during that time period.

Financial Performance

The Coca-Cola Company's sales topped $48 billion in 2012, a 3% increase versus
2011. Net income rose 5% over the same period. 2012 marked the third
consecutive year of rising sales, following a dip during the global financial crisis.
Indeed, the company's sales have doubled since 2006. Price, product, and
geographic mix all contributed to rising sales. Sales in Eurasia, Latin America, and
Africa got a boost from price increases and an improved product mix. Higher
prices in North America, particularly for sparkling beverages, led to a 5.5%
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increase in sales. The beverage giant met or exceeded its long-term growth targets
in 2012, reporting 4% global volume growth, driven by international volume
growth of 4% and North American volume growth of 1%. That growth was led by
brand Coca-Cola, up 3% for the year.

Strategy

The popularity of soft drinks, especially in mature markets, has been on the decline
since about 2005 as negative publicity about obesity and other health risks
continues to threaten sales. As a result, The Coca-Cola Company and other top soft
drink makers are turning toward other parts of their noncarbonated product
portfolio for growth, such as fruit juices, sports and energy drinks, and bottled
water and tea beverages. This is reflected in some of the acquisitions the company
has made in recent times, including its buyout of ZICO Beverages, a maker of
ZICO Pure Premium Coconut Water, in late 2013, and in 2010 a majority stake
in UK smoothie maker innocent ltd, which corners more than two-thirds of the UK
smoothie market. More recently, Coca-Cola in August 2014 agreed to acquire a
16.7% equity stake in Monster Beverage Corp., a leading maker of energy drinks.
Under the terms of the deal, The Coca-Cola Company will transfer ownership of
its worldwide energy business, including NOS, Full Throttle, Burn, Mother, Play
and Power Play, and Relentless, to Monster; and Monster will transfer its non-
energy business, including Hansen's Natural Sodas, Peace Tea, Hubert's Lemonade
and Hansen's Juice Products, to The Coca-Cola Company.

Geographic Reach
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The world's largest beverage company rings up nearly 60% of its sales outside the
US, in some 200 countries worldwide across Eurasia, Africa, Europe, North
America, and the Pacific Region. Important international markets include Asia and
Latin America.

Mergers and Acquisitions

Among other recent, notable acquisitions made by The Coca-Cola Company are its
$980 million purchase of approximately half of Aujan Industries, one of the
Middle East's largest independent beverage companies. Completed in 2012, the
buy is part of a larger plan to invest about $5 billion in the Middle East and North
Africa regions over the next decade.

Still one of its most significant moves to date, however, was Coca-Cola's 2010
$12.3 billion acquisition of one of its major bottlers, the North American business
of Coca-Cola Enterprises Inc. (CCE), a deal made just six months after
rival PepsiCo made moves to bring its bottlers in-house to cut costs. The
acquisition gave The Coca-Cola Company direct control over more than 90% of its
North American sales volume and a closer relationship with retailers as it renamed
the North American business Coca-Cola Refreshments USA. It followed up the big
bottler purchase in 2013 by buying Sacramento Coca-Cola Bottling Company, the
sixth-largest independent Coca-Cola bottler in the nation that serves nine northern
California counties.

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Coca-Cola at a Glance

Type Public
Traded as NYSE: KO
Dow Jones Industrial Average Component
S&P 500 Components.
Industry Beverage
Founded 1886
Founders Asa Griggs Candler, John Pemberton created
the soft drink/beverage "Coca-Cola", but it
was Asa Candler, who founded The Coca-
Cola Company.
Headquarters One Coca-Cola Plaza, Atlanta, Georgia, U.S.
Area served Worldwide
Key people Muhtar Kent (Chairman and CEO).
Ahmet Bozer (Exec. Vice Pres.)
Products List of The Coca-Cola Company products

Revenue US$ 46.854 billion (2013)

Operating US$ 10.228 billion (2013)
income
Net income US$ 8.584 billion (2013)
Total assets US$ 90.055 billion (2013)
Total equity US$ 33.44 billion (2013)
Employees 130,600 (Dec 2013)
Subsidiaries List of The Coca-Cola Company subsidiaries

Website Coca-ColaCompany.com

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THE MANUFACTURING PROCESS OF COCA COLA

Most soft drinks are made at local bottling and canning companies. Brand name
franchise companies grant licenses to bottlers to mix the soft drinks in strict
accordance to their secret formulas and their required manufacturing procedures.

Clarifying the water

The quality of water is crucial to the success of a soft drink. Impurities, such as
suspended particles, organic matter, and bacteria, may degrade taste and color.
They are generally removed through the traditional process of a series of
coagulation, filtration, and chlorination. Coagulation involves mixing a gelatinous
precipitate, or floc (ferric sulphate or aluminum sulphate), into the water. The floc
absorbs suspended particles, making them larger and more easily trapped by filters.
During the clarification process, alkalinity must be adjusted with an addition of
lime to reach the desired pH level.

Filtering, sterilizing, and DE chlorinating the water

The clarified water is poured through a sand filter to remove fine particles of floc.
The water passes through a layer of sand and courser beds of gravel to capture the
particles. Sterilization is necessary to destroy bacteria and organic compounds that
might spoil the water's taste or color. The water is pumped into a storage tank and
is dosed with a small amount of free chlorine. The chlorinated water remains in the
storage. Tank for about two hours until the reaction is complete.

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Next, an activated carbon filter DE chlorinates the water and removes residual
organic matter, much like the sand filter. A vacuum pump de-aerates the water
before it passes into a dosing station.

Mixing the ingredients

The dissolved sugar and flavor concentrates are pumped into the dosing station in a
predetermined sequence according to their compatibility. The ingredients are
conveyed into batch tanks where they are carefully mixed; too much agitation can
cause unwanted aeration. The syrup may be sterilized while in the tanks, using
ultraviolet radiation or flash pasteurization, which involves quickly heating and
cooling the mixture. Fruit based syrups generally must be pasteurized. The water
and syrup are carefully combined by sophisticated machines, called proportioners
which regulate the flow rates and ratios of the liquids. The vessels are pressurized
with carbon dioxide to prevent aeration of the mixture.

Carbonating the beverage

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Carbonation is generally added to the finished product, though it may be mixed
into the water at an earlier stage. The temperature of the liquid must be carefully
controlled since carbon dioxide solubility increases as the liquid temperature
decreases. Many carbonators are equipped with their own cooling systems. The
amount of carbon dioxide pressure used depends on the type of soft drink. For
instance, fruit drinks require far less carbonation than mixer drinks, such as tonics,
which are meant to be diluted with other liquids. The beverage is slightly over-
pressured with carbon dioxide to facilitate the movement into storage tanks and
ultimately to the filler machine.

Filling and packaging

 The finished product is transferred into bottles or cans at extremely high

flow rates. The containers are immediately sealed with pressure-resistant
closures, either tinplate or steel crowns with corrugated edges, twist off, or
pull tabs.
 Because soft drinks are generally cooled during the manufacturing process,
they must be brought to room temperature before labeling to prevent
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 condensation from ruining the labels. This is usually achieved by spraying
the containers with warm water and drying them.
 Labels are then affixed to bottles to provide information about the brand,
ingredients, shelf life, and safe use of the product. Most labels are made of
paper though some are made of a plastic film. Cans are generally pre-
printed with product information before the filling stage.
 Finally, containers are packed into cartons or trays which are then shipped in
larger pallets or crates to distributors.

Quality Control

Soft drink manufacturers adhere to strict water quality standards for allowable
dissolved solids, alkalinity, chlorides, sulfates, iron, and aluminum. Not only is it
in the interest of public health, but clean water also facilitates the production
process and maintains consistency in flavor, color, and body. Microbiological and
other testing occur regularly. The National Soft Drink Association and other
agencies set standards for regulating the quality of sugar and other ingredients. If
soft drinks are produced with low-quality sugar, particles in the beverage will spoil
it, creating flock. To prevent such spoilage, sugar must be carefully handled in dry,
sanitized environments. It is crucial for soft drink manufacturers to inspect raw
materials before they are mixed with other ingredients, because preservatives may
not kill all bacteria. All tanks, pumps, and containers are thoroughly sterilized and
continuously monitored. Cans, make of aluminum alloy or tin-coated low-carbon
steel, are lacquered internally to seal the metal and prevent corrosion from contact
with the beverage. Soft drink manufacturers also recommend specific storage
conditions to retailers to insure that the beverages do not spoil. The shelf life of
soft drinks is generally at least one year.

Recycling

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The $27 billion dollar soft drink industry generated about 110 billion containers
each year in the early 1990s. About half of soft drink containers were aluminum
cans and the other half, about 35 billion, were PET plastic bottles. Nearly 60% of
all soft drink containers were recycled, the highest rate for any packaging in the
United States. Environmental concerns continued to lead to improvements and
innovations in packaging technology, including the development of refillable and
reusable containers.

TECHNOLOGY USED IN COCA-COLA

Coca Cola Company uses two types of technology. Those are:

1. Production technology
Coca cola Company uses this type of technology to produce their product.
Production technology includes:

 Manufacturing machines

Carbon dioxide, which makes it fizzy, is also delivered to the canning plant where
it is stored and then piped into the manufacturing process through a carbonator and
cooler. The Company specifies what equipment franchisees will use to carry out
these processes. Samples are taken regularly for chemical analysis, and staff makes
frequent spot checks to ensure that plants are maintaining the Company's standards
of cleanliness and quality. The Company provides its franchisees with the most up-
to-date technology available and many of them use the latest computer technology
and statistical process control methods.

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  Bottle and can processing

High-tech machinery at Wakefield enables cans to be produced faster than the eye
can see. The plant is capable of producing up to 4,000 330ml cans a minute and
3,280 bottle – ranging from 500ml to 3l – of soft drinks a minute across nine lines
(two canning and seven PET). The factory also boasts the fastest 2l bottle
production line in the world. In total the facility has storage space for 25,000
pallets and approximately 250 Lorries leave daily.

 Using UTC Power fuel cell technology

UTC Power, a United Technologies Corp. company, announced that it will supply
two of its new Pure Cell Model 400 fuel cell systems to provide on-site electricity
and heat for Coca-Cola Enterprises’ production facility in .The efficient energy and
heat source will help further CCE’s sustainability efforts, specifically around
energy conservation and water stewardship.

At Coca-Cola Enterprises, corporate responsibility and sustainability are integral to

the overall business strategy. “The fuel cell systems facility will help to further the
environmental commitment at local communities increase by reducing carbon
footprint and use of the local power grid. Fuel cells are one of the cleanest and
most efficient energy-generation sources available in the world today. Bottling and
production facilities are a great fit for fuel cell technology. Hydrogen and oxygen
are combined in an electrochemical process to produce electricity, heat and water.
A hydrogen-rich fuel is derived from natural gas in a process called reforming.

 Continuous Product Flow and Made To Stock

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Coca Cola as a bottling company uses the continuous flow method of
manufacturing. As we know, continuous flow may be defined as the so called
process industries which refer to manufacturing goods such as beer, paper, oil, and
electricity, where in this case it would be a soft drink company. Here, the products
are made in a continuous fashion and tend to be highly standardized and automated
with very high volumes of production. The production flow of Coca Cola involves
passing sub-assemblies/parts from one stage of production to another in a regular
flow. Each stage adds to the products, this is typical among bottling plants. Coke
used this method because the products being distributed by the company are in
wide variation and is sold in bulk amounts. Products being distributed range from
the bottled goods such as Coke, Diet Coke, an assorted amount of different
flavored soft drinks, to bottled water. Given that Coca Cola has such a large range
of production, continuous flow is the best way to produce the products.

The MTS method of customer order has a process where a standard product line is
specified by the producer, not by the customer and therefore products are carried in
inventory to immediately fulfill customer demand. Suppose Coke Cola used a
Made to Order customer process, they would never distribute their goods in a fast
enough fashion due to the high demand of customers that the company possesses.

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  Greener Bottles
Coca-Cola introduced greener bottles and packaging in 2009, producing 2.5
billion of their products using less petroleum. The practice has been so
successful that other companies, such as Heinz, have harnessed this technology
to create greener packaging as well. While the 2009 production represents only
three percent of Coca-Cola's packaging, the movement continues to grow, as
billions of cases of Coca-Cola products are shipped globally each year.

2. Information Technology
Coca cola Company uses this type of technology to inform their customer about
their product. Information technology includes:

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  Social Networking
Coca-Cola maintains a visible appearance on Facebook and other social
networking sites such as Twitter. With over 34 million fans as of 2011, Coca-Cola
harnesses the power of social networking to spread the word concerning new
products, test advertorial campaigns, invite users to play games and associate
Coca-Cola products with positive feelings. Using social networking technology
enables a brand to stay young, fresh and current.

Through their various research teams, Coca-Cola is able to reach out to both the
customer and the employee and see what is needed on a consumer level and a
training level. Coca-Cola Company has a virtual, global University to train
employees with various skill levels. Podcasts and PowerPoint presentations are
some examples of Web 2.0 tools for Coca-Cola. Coca-Cola is also a part of the
IGA Coca- Cola Institute. This institute uses online training programs such as
webcasts and tutorials to train food retail workers in various tasks.

 Freestyle Dispensers
Coca-Cola began rolling out its freestyle dispensers in late 2010 and early 2011.
Unlike typical soda fountains, the freestyle dispenser allows you to create your
own beverage by choosing from over 100 drinks in various combinations. Not only
does freestyle technology allow a greater variety of drinks through its computer-
like interface, but the dispenser records information concerning consumers' drink
choices, then sends the data back to Coca-Cola as market research.

 Online Advertising
Coca-Cola uses subtle yet effective online advertising to make you feel like you
want its products. Targeted advertisements on websites mean that Coca-Cola has
greater control over who sees their ads and when they see them. For instance, when

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you're perusing the online menu of a local eatery, Coke ads may appear, making
you associate that restaurant with a tall, icy glass. Or, when you're researching
local beaches, you may see an ad for Coca-Cola products, thereby associating heat
with the refreshment of Coke.

LIMITATIONS OF THE PROCESS

Coca-Cola has been criticized for alleged adverse health effects, its aggressive
marketing to children, exploitative labor practices, high levels of pesticides in its
products, building plants in Nazi Germany which employed slave labor,
environmental destruction, monopolistic business practices, and hiring paramilitary
units to murder trade union leaders. In October 2009, in an effort to improve their
image, Coca-Cola partnered with the American Academy of Family Physicians,
providing a $500,000 grant to help promote healthy-lifestyle education; the
partnership spawned sharp criticism of both Coca-Cola and the AAFP by
physicians and nutritionists Bolivia has been reported to consider banning Coca-
Cola prior to January 2013.

Allegations against the company are varied. Including:

Possible health effects of Coca-Cola products.

A poor environmental record.
Perception of the companies' engagement in monopolistic business practices.

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 Questionable labor practices (including allegations of involvement with
paramilitary organizations in suppression of trade unions).
Questionable marketing strategies. and
Accusation of violations of intellectual property rights.

Health effects
Since studies indicate most nutritionists advise that Coca-Cola and other soft
drinks can be harmful if consumed excessively, particularly to young children
whose soft drink consumption competes with, rather than complements, a balanced
diet. Studies have shown that regular soft drink users have a lower intake
of calcium, magnesium, ascorbic acid, riboflavin, and vitamin A. The drink has
also aroused criticism for its use of caffeine, which can cause physical dependence.
A link has been shown between long-term regular cola intake and osteoporosis in
older women (but not men). This was thought to be due to the presence
of phosphoric acid, and the risk was found to be the same for caffeinated and non
caffeinated colas, as well as the same for diet and sugared colas. Health effects
Include:

Acidity and tooth decay

Numerous court cases have been filed against the Coca-Cola Company since the
1940s alleging that the acidity of the drink is dangerous. In some of these cases,
evidence has been presented showing Coca-Cola is no more harmful than
comparable soft drinks or acidic fruit juices. Frequent exposure of teeth to acidic

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drinks increases the risk of tooth damage through dental erosion. This form of
tooth decay is unrelated to dental caries.

High fructose corn syrup

High fructose corn syrup was rapidly introduced in many processed foods and soda
drinks in the US over the period of about 1975–1985. Since 1985 in the U.S., Coke
has been made with high fructose corn syrup instead of sucrose to reduce costs.
One of the reasons this has come under criticism is because the corn used to
produce corn syrup often comes from genetically altered plants. Some nutritionists
also caution against consumption of high fructose corn syrup because of possible
links to obesity and diabetes.

This causes problems with Coke's distribution and bottling network, because
specific franchise districts are guaranteed an exclusive market area for Coke
products. Mexican-made Coca-Cola may often be found for sale in stores catering
to the Hispanic immigrant community. Kosher for Passover Coke is also made
with cane sugar, rather than corn syrup, due to the special dietary restrictions for
observant Jews. Some Orthodox Jews do not consume corn during the holiday.
Bottled with yellow caps, this variant can be found in some areas of the US around
April.

Risks arising from over-consumption

In the February 2010 death of a 31-year-old New Zealand woman, the coroner
concluded "were it not for the consumption of very large quantities of Coke by
Natasha Harris, it is unlikely that she would have died when she died and how she
died"; Harris was found to have suffered from hypokalemia and "had an enlarged
liver, and deposits of fat within the liver, which pathologist Dr Dan Mornin
attributed to the consumption of 'excessive amounts of sugar'." Christopher

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Hodgkinson, the long-term partner of Harris, "estimated Natasha consumed four
2.25 liter bottles of Coke a day [and drank] no other beverage.

Allergy
Coca Cola has been implicated in certain allergic reactions. In a case study in
Switzerland, a woman who was allergic to Balsam of Peru was allergic to her
boyfriend's semen following intercourse, after he drank large amounts of Coca
Cola

RECOMMENDATION

The Coca-Cola Company is the #1 company within the non-alcoholic beverages

industry. They have a 20- year standing of being the leader and investors know that
the Coca-Cola Company has an extraordinary reputation for maximizing
shareholder value.

The recommendation of Coca-Cola Company is based on performing various

valuation models, which include HR practices, Manufacturing Process, Quality
Control, Technology used in the processing that revealed the Coca-Cola Company
to be overvalued. Even though they find the stock to be overvalued and they feel
Company that has some promising outlooks as well as possible challenges in the
near future and they want to recommend it as a hold instead of a sell.

Analyze the profitability of the product can help companies anticipate the
advantages and disadvantages to avoid, more generally, management activities to

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enhance the content value-added activities in any specific process. Basically, the
value-adding creative activities should be associated with market opportunity for
optimal enterprise performance.

CONCLUSION

Coca-Cola is becoming an important economic factor internationally. Coca-Cola

maintains high processing quality at each production stage-from the procurement
of the sugar to water processing to the filling and recycling factories. It is the
world’s largest marketer, distributor, and producer of bottle and can liquid
nonalcoholic refreshment. Coca-Cola Enterprises sells approximately 80 percent of
The Coca-Cola Company’s bottle and can volume in North America, and is the
sole licensed bottler for products of The Coca-Cola Company in Belgium,
continental France, Great Britain, Luxembourg, Monaco, and the Netherlands.

To produce the world's best known product, The Coca-Cola Company has to
employ the highest quality processes and establish standards which guarantee the
production of a standardized product which meets consumers' high expectations
each and every time they drink a bottle or can of Coca-Cola.

In order to guarantee these standards the Company has had to develop a close
relationship with its franchisees based on a mutual concern for quality. Total
Quality Management lies at the heart of this process involving a continuous
emphasis on getting quality standards right every time and on continually seeking
new ways to improve performance.

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.

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