Coke's Changing Fortunes:The Need for Change


Code : COM0025

Year :

Industry : Beverages

Region : US

Teaching Note:Available

Structured Assignment :Available

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Evolution of Coca-Cola Coca-Cola, a concoction of coca leaves, cola nuts, lime and cinnamon, was invented by an Atlanta pharmacist, John Pemberton, in 1886, and was named and (the name) exquisitely written by his friend, Frank Robinson. Coca-Cola, which originally entered Atlanta's pharmacy as a brain tonic, was later on mixed with carbonated water to make the non-alcoholic beverage. As a Candler, a Georgia druggist, acquired the Coca-Cola Company for $2,300, in 1891. The formula of Coca-Cola syrup, known as Formula 7X, was patented in 1893, and the first syrup manufacturing plant was opened in 1894...

Changes in the Leadership: Changes in the Strategy Coca-Cola, a company that has grown consistently for more than a hundred years, faced a series of crises in the late 1990s, where changes in the leadership accompanied changes in the company's strategies, culture, image, and its market value. Coke owes its evolution in the 1980s and 1990s to three of its top executives Robert Goizueta, Donald Keough and Douglas Ivester...

Restructuring and Reorganization at Coke Restructuring programs were devised at Coke as a part of its cost-cutting measures. The company has carried out several mergers and acquisitions of various local brands and bottling units world over, since 1986. Though the mergers and acquisitions of bottlers initially consolidated Coke's bottling system, the aggressive strategy followed by the company post-1997, brought Coke in direct confrontation with governments worldwide, especially several European countries, India, and Africa. Several bottlers were forced to sell out even though they were performing well and didn't want to do so...

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