Case study The Carbonated Soft Drinks

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Case Study No. 1: Strategic Management

The Carbonated Soft Drinks Industry in Pakistan in the

Context of Coca Cola

1. A Brief History

Coca-Cola Enterprises was established in 1986 as a young company by the

standards of the Coca-Cola system. Yet each of its franchises has a strong heritage in the

traditions of Coca-Cola that is the foundation for this Company. The Coca-Cola

Company traces it’s beginning to 1886, when an Atlanta pharmacist, Dr. John Pemberton,

began to produce Coca-Cola syrup for sale. However the bottling business began in

1899when two Chattanooga businessmen, Benjamin F. Thomas and Joseph B.

Whitehead, secured the exclusive rights to bottle and sell Coca-Cola for most of the

United States from The Coca-Cola Company. The Coca-Cola bottling system continued

to operate as independent, local businesses until the early 1980s when bottling franchises

began to consolidate. In 1986, The Coca-Cola Company merged some of its company-

owned operations with two large ownership groups that were for sale, the John T. Lupton

franchises and BCI Holding Corporations bottling holdings, to form Coca-Cola

Enterprises Inc. The Company offered its stock to the public on November 21, 1986, at

adjusted prices of $5.50 ashore. On an annual basis, total unit case sales were 880,000

in1986.In December 1991; a merger between Coca-Cola Enterprises and the Johnston

Coca-Cola Bottling Group, Inc.(Johnston) created a larger, stronger Company, again

helping accelerate bottler consolidation. As part of the merger, the senior management

team of Johnston assumed responsibility for managing the Company, and began a

dramatic, successful restructuring in 1992.Unit case sales had climbed to 1.4 billion, and

total revenues were $5 billion at the year-end. Presently The-Coca-Cola Company is the

largest soft drink company in the world. Every year 800,000,000 servings of just "Coke"

are sold in the U.S alone

2. CCBPL

The Coca-Cola Company began operating in Pakistan in 1953. Coke, Fanta and

Sprite were the brands with which Coca-Cola started operating in Pakistan. The Coca-

Cola System in Pakistan operates through eight bottlers, four of which are majority-

owned by Coca-Cola Beverages Pakistan Limited (CCBPL). The CCBPL plants are in

Karachi, Hyderabad, Sialkot, Gujranwala, Faisalabad, Rahim Yar Khan, Multan and

Lahore. The remaining two plants, independently owned, are in Rawalpindi and

Peshawar. The Coca-Cola System in Pakistan serves 70,000 customers/retail outlets. The

Coca-Cola System in Pakistan employs 1,800 people working for the company. During

the last two years, The Coca-Cola Company in Pakistan has invested over $130 million

(U.S) and Coke has successfully provided 51 years of service to its customers in Pakistan.

3. Mission Statement (in the Company’s own words)

“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”

4. The Vision (quoted verbatim)

Our vision serves as the framework for our Roadmap and guides every aspect of

our business by describing what we need to accomplish in order to continue achieving

sustainable, quality growth.

 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 our

overall responsibilities.

 Productivity: Be a highly effective, lean and fast-moving organization.

Our Winning Culture

Our Winning Culture defines the attitudes and behaviors that will be required of us

to make our 2020 Vision a reality.

Live Our Values

Our values serve as a compass for our actions and describe how we 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

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The Carbonated Soft Drinks Industry in Pakistan in the Context of Coca Cola 1. A Brief History Coca-Cola Enterprises was established in 1986 as a young company by the standards of the Coca-Cola system. Yet each of its franchises has a strong heritage in the traditions of Coca-Cola that is the foundation for this Company. The Coca-Cola Company traces it’s beginning to 1886, when an Atlanta pharmacist, Dr. John Pemberton, began to produce Coca-Cola syrup for sale. However the bottling business began in 1899when two Chattanooga businessmen, Benjamin F. Thomas and Joseph B. Whitehead, secured the exclusive rights to bottle and sell Coca-Cola for most of the United States from The Coca-Cola Company. The Coca-Cola bottling system continued to operate as independent, local businesses until the early 1980s when bottling franchises began to consolidate. In 1986, The Coca-Cola Company merged some of its company-owned operations with two large ownership groups that were for sale, the John T. Lupton franchises and BCI Holding Corporations bottling holdings, to form Coca-Cola Enterprises Inc. The Company offered its stock to the public on November 21, 1986, at adjusted prices of $5.50 ashore. On an annual basis, total unit case sales were 880,000 in1986.In December 1991; a merger between Coca-Cola Enterprises and the Johnston Coca-Cola Bottling Group, Inc.(Johnston) created a larger, stronger Company, again helping accelerate bottler consolidation. As part of the merger, the senior ...
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