Coca-Cola’s Strategic Partnership With Dr. Pepper Snapple Group

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Table of Contents

Introduction
Inputs
Process
Outputs
Conclusion
References

Introduction

The Coca-Cola Company was founded in Atlanta Georgia on May 27^th 1924. Over the years, it has grown to become the world’s largest producer of soft drinks. Initially, the coke chemical formula was intended to be a patent medicine. This was what the inventor, John Pembeton had in mind. However, this 19^th century formula was bought by an entrepreneur by name, Asa Candler and it was because of his prowess in the marketing field that Coca-Cola became a household name by the 20^th century. Today, the company boasts presence of the brand is well over 200 nations of the world (Bell, 2004).

From its Atlanta headquarters, The Coca-Cola Company, otherwise referred to as Coke is has built its brand and established itself as the leading company in soft drinks the world over. Coke brags ownership of the four most consumed soft drink brand in the world. This five are Coca-Cola, which is the drink carrying the name of the company, Diet Coke, which was made as a measure against the debate about the health of their products, Fanta, and Sprite. But the company has a variety of other brands too which include Dasani mineral water and the more recent product, Novida.

Coca-Cola has entered a strategic partnership with Dr Pepper Snapple Group. Under this arrangement, the company also sells their brands in all the countries with an exception of North America, Europe and Australia. The most famous of these products is the Schweppes family of drinks although there is also Crush and Dr. Pepper. We will look at the Company profile in the subsequent pages as we consider the production processes and procedures.

Inputs

Input is a very critical stage in the production stage. This is because the input to a great degree determines the output this explains why inputs are often referred to as resources. Inputs are resources that are harnessed to produce outputs. Experts have observed that Economic growth is usually as a result of increased production which in turn is a result of increased inputs. There are three broad categories of inputs that the Coca-Cola Company uses. They are the human resources or inputs, the material resources or inputs and the intangible resources or inputs of the three; the human resource input is the most important. Without human resource, there would be no way of harnessing the other inputs to end up with the desired products (May, 1988). Productivity of the human resource is what determines the quality and quantity of production. The Coca-Cola Company has an online staffing system on the website to make sure the best personnel are hired for a given job.

The other category of inputs is the material resources. Many tangible inputs are important for the company but since it is in soft drink production, the most important would be those that are directly used in the production process. The Coca-Cola Company in Atlanta Georgia usually produces the concentrate which it then sells to its registered bottlers around the world for processing. Ideally, a bottle of soda will be made up of a concoction of carbonated water, sugar, caffeine, phosphoric acid and some natural sweeteners or flavorings. The chemical engineers usually come up with different flavors to satisfy the taste buds of the consumers.

Lastly, there are those intangible inputs. They are intangible because it is hard to quantify them yet they are very important in the production process. Some good examples are workers morale and the company good will. Employees that are demoralized will produce substandard products which are not desirable.

Process

The Production process of Coca-Cola like that of any other significant organization is what matters the most. For instance, Coke has continued over the years to produce the concentrate which it then sells it’s various franchises all over the world. The licensed bottlers then produce the soft drinks and circulate them in their region. Production usually entails combining a variety of materials, which we refer to as inputs to end up with something palatable.

The very first part in this process is the part of mixing the relevant ingredients. Coca-Cola Company has one major formula for concentrate syrup that is regarded to be a trade secret. This is usually mixed in various proportions with carbonated water, phosphoric acid, and some natural sweeteners this is the most important part of the production process since the original taste of the soft drink needs to be maintained to keep the customers satisfied (Coca-Cola Company, 2009).

Once the soft drinks have gone through this stage, they will proceed to the next important step of quality control. This is a step where the quality of the drink is controlled to ensure that clean water was used, the ingredients dissolved well and the flavors were not lost in the process. Another reason for this is the need to comply with the regulatory bodies which have been setup to ensure manufacturers produce only high quality products that are fit for human consumption. Once the drinks have passed this stage, the other important stage is the bottling stage. Without bottling, the drinks can not be portable and that will mean that they will not reach to the market. Coca-Cola has different bottles that have been engineered for different occasions. The traditional plastic bottle for instance has been widely accepted as the best option for travelers as there is no risk to breakage involved.

Outputs

Coca-Cola is the company that produces the five most consumed soft drinks in the world. This five are Coca-Cola, which is the drink carrying the name of the company, Diet Coke, which was made for the diabetic people, Fanta, and Sprite. But the company has a variety of other brands too which include Dasani mineral water and the more recent product, Novida. Coca-Cola has entered a strategic partnership with Dr Pepper Snapple Group. Under this arrangement, the company also sells their brands in all the countries with an exception of North America, Europe and Australia. The most famous of these products is the Schweppes family of drinks although there is also Crush and Dr. Pepper.

In addition, the Coca-Cola Company makes or in some cases licenses well over 3,000 soft drinks. These soft drinks are under over 500 different brand names. The outputs are spread in a network of more than 200 nations (Candler, 1998). The firm does not do bottling itself, but it owns 34% of the world’s leading bottler which is called Coca-Cola Enterprises (CCE). The coca-cola company produces and distributes soft drinks’ concentrates and syrups worldwide. This syrups and concentrates are then further developed by the respective franchises into beverages. The biggest product line for the company is the ready to drink soft drinks. The most famous brand is the Coca-Cola brand although other brands like diet coke, Fanta and sprite equally have a big market share (Yahoo Finance, 2010).

According to the company website, the company has well over 800 low and no calorie drinks (Coca Cola Company, 2009). The firm also produces fountain syrups, flavoring ingredients and sweeteners. It markets the soft drinks primarily under four brand names, diet coke, sprite, Fanta, and coca-cola. The Company usually sells its output products to distributors, retailers, and other vendors. The concentrates and syrups are sold to different franchises that will later produce the drinks and also resale them to retailers.

Conclusion

The Coca-Cola Company has grown from the time of inception in the 19th century to become the world’s leader in soft drinks production and distribution. This success can be traced back to the founder who was well versed in marketing and used the skills to place the company on the cutting edge in business. The differentiation strategy the company has employed also means that the chances of one choosing from their assortment of drinks is very high.

Many have argued that the formula of the coke which is the reason for their success is the reason behind the huge success. This formula is the biggest trade secret ever and it is usually only two executives who are aware of the formula. This has largely helped to maintain the privacy of the product. Coca-Cola is also reputed to be one of the companies that have widely used symbols as a means of effectively communicating to its large base of clients

In addition, the company has been a market leader in sustainable development initiatives. The very first step was seen in the invention of diet coke. This was because researchers found out that one of the biggest contributors of unwanted calories in the diets of people today is the soft drinks. Diet coke was therefore made which was largely marketed as a healthy soft drink. These are some of the salient factors that have enabled the Coca-Cola Company beat competition and remain a market leader in soft drink production the world over (My Green Element, 2010). By and large, the Coca-Cola Company has been a leader in the business field and it has continually been an innovator in many diverse ways as this recent sustainable initiatives are proving.

References

Bell, L. (2004). The Story of Coca-Cola. London: Black Rabbit Books.

Candler, E. (1998). Classic Cooking With Coca-Cola. New York: Everywhere Press.

Coca-Cola Company. (2009). Coca-Cola Products. Web.

May, C., (1988). How Coca-Cola obtains its Coca. New York Times P.3.

My Green Element (2010). A greener Coca-Cola. Web.

Yahoo Finance (2010). The Coca-Cola Company Profile. Web.

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