Coca-Cola: Is the Fizz Still There?

Paper Summary:

In this paper the author takes a close look at the Coca-Cola Corporation. The author looks at the management and how Douglas Daft came to the helm with his new philosophy of thinking "local", rather than global management. The author examines what has happened to Coca-Cola over the last few years in various countries and how this has effected its reputation. The author them moves on to discuss Coca-Cola's relationship with its bottlers, trade unions and profit margins. Finally the author looks at how Coca-Cola has re-established itself in China, creating a new business model and its wars with competitors.

From the paper:

"Coke's overwhelming success in the U.S. is in large part due to its bottlers. Daft's decentralization strategy reassigns much of the work performed by 29,000 laid-off employees to the "anchor bottlers" (for marketing and sales) and to sub-contractors (for plant and office maintenance) resulting in fewer direct employees worldwide. This strategy allows the company to concentrate its efforts on garnering market share while not having to take responsibility for global industrial relations. The anchor bottlers, Coca-Cola Enterprises and Cola-Cola Amatil, actually have more employees than Coca-Cola Company (CCC). The company relies on them to bottle and distribute the lion?s share of its products."

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