The Coca-Cola Company: Then and Now

The Coca-Cola Company: Then and Now

In the 1980s, Coca-Cola was an international product with a growing presence in markets like Russia, South East Asia, and Europe. Coca-Cola was able to beat its main rival Pepsi and become leader in the carbonated beverage market with a 70% market share. In the 1990s, Coca-Cola has heading in wrong direction; the company's market share started declining due to technological, social, political, and economic challenges in the marketplace. While company was trying to develop its power in its primary cola market, there was an increasing change in consumers taste in favor on non-carbonated beverages such as bottled water, juice, and tea. Local brands become more popular; Coca Cola had to increase the number of people who drink their product. Today, Coca-Cola is committed to local markets, paying attention to what people from different cultures and backgrounds like to dirk.

Coca-Cola was invented by Dr. John Stith Pemberton in Atlanta in 1886. Over time the Coca-Cola Company has become the main produce of soft drinks in its industry. Coca-Cola is producer of two of the world's three most popular carbonated drinks. Coca-Cola organization had rough start when John S. Pemberton began producing coke. Coca-Cola did not establish market for their product until Asa Candler, the new owner, bought company from Dr. John Sitith Pemberton. During 1950s company expanded rapidly;" General Eisenhower requested that Coke needs to be available to American soldiers serving in North Africa and Europe." (Moxley, 2002) As result Coca-Cola was able to expand internationally which gave them advantage over other organizations that produced carbonated drinks. With expansion to international market, Coca-Cola organization was able to recognize the potential of minority markets and included racial minorities in their advertisements. Until 1960s, Coca-Cola was mainly one product company, everything have changed when organization have realized that product development, diversification, and increased competition was their road to success. In order to compete with their main competitor, Pepsi, Coca-Cola bought Sprite, Minute, Maid, Fresca, and Belmont Springs Water." During the 1970s the Coca-Cola focused on foreign expansion, particularly into China and Russia. As a result, by 1984 Pepsi outsold Coke with a 22.8% market share compared to Cokes 21.6%."(Newswire, 2001) In order to recover Coca-Cola introduced new product, Diet Coke, that increased sales and soon Diet Coke became the world's most popular diet beverage.

In 1997 the Coca-Cola organization appointed M. Douglas Ivestr as chief executive officer. Appointing Douglas Ivestr was bad decision by the Coca-Cola. "Doug Ivester was often been described as a very rational man with a bulldog leadership style. James Chestnut, Coca-Cola's chief financial officer, said Ivester was terribly rational manager."(Moxley, 2002) Ivester haven't brought anything new to company; employees and public saw him as arrogant and insecure leader. While CEO Ivester had cause many problems, including a tainted Coke scare in Europe that resulted in the largest product recall in company history, and decline in earnings for two straight years. Coca-Colas leadership changed direction when they elected Douglas Daft, who had 30 years' experience at Coca-Cola. "I want the Coca-Cola Company to be one of the most desired employers in the world. I have told our people that we are going to take our company to the head off the class when it comes to the diversity of our workforce and our business."(Food brief, 2002) Douglas Daft had vision that changed company in many ways, he was ready to rebuilt brand name, thinking and acting locally in global business relations, and make Coca-Cola an model for its community. Daft agreed to settle law suit with all of the plaintiffs for $192 million dollars; this law suit brought many changes to organizations programs and policies. As result, Coca-Cola has established requirements that all job postings attract at least three candidates, one of whom must be a woman or minority. Also, they have implemented a uniform compensation system based on job related measures, including a market based salary structure. The biggest problems company had was their Human Resources department and its practices. They had almost as