the coca-cola company

THE COCA-COLA COMPANY

Ashley WabaraCarolynn VoMary PechulisMai Ling MatthewsSophia Lee

THE COCA-COLA COMPANYWorld’s largest nonalcoholic beverage

company that sells soft drinks, variety of waters, energy drinks, & juices

Primary industryMarketing of their productsManufacturing syrups & concentrates for their

drinksMajor Competitors

PepsiCo IncorporatedDr. Pepper Snapple Group IncorporatedNestlé S.A.

THE COCA-COLA COMPANY

Major goal is to further increase their stake in global beverage market

Seven different operating groupsEurasia and AfricaEuropeLatin AmericaNorth AmericaPacificCorporateBottling Investments

ManagementCEO: Muhtar KentCFO: Gary FayardCTO: Guy WollaertBoard of Directors

Muhtar KentFourteen other members

MD&A, Coca-Cola works to:Use their assets to become an even stronger and more

competitive company for is shareowners’ benefitProvide the public with beverages that satiates their

consumers’ wants and needsPartner with companies where there is loyaltyMaximize shareholders’ wealth in a responsible fashion

Core CapabilitiesConsumer marketingCommercial leadershipFranchise leadershipBottling & distribution operations

Key Financial ResultsNet income

Coca-Cola’s net income attributable to shareowners increased from $6.8 billion in 2009 to $11.8 billion in 2010

Increase shareholders’ wealthIncreased common stock market price to $65.88Dividends increased from $0.41 to $0.44

Current Ratio of 1.35Return on equity = 68.9%Unqualified opinion by Ernst & Young LLPTotal audit fees, audit-related fees, tax fee, and

all other fees was approximately $35,815,000 with $29 million allotted to audit fees alone

Strategic prioritiesDriving global beverage leadershipAccelerating innovation

Reports on internal controls by the company and Ernst & Young LLP inform the readerInternal controls were maintained effectivelyRecently North American operations was

excluded from their evaluation of effectiveness

Regularly filed forms10-K10-Q8-K

Sarbanes Oxley Act (SOX)Section 301Section 302Section 303Section 404

Subsidiaries or SegmentsSubsidiaries

include

Coca-Cola Refreshments USA, Inc.

Coca-Cola GbmhEnergy Brands Inc.Innocent ltd.

Operating segments

Eurasia & AfricaEuropeLatin AmericaNorth AmericaPacificBottling InvestmentsCorporate

A Closer Look…

Energy Brands Inc. in the business of producing and selling

Glaceau beverages

Innocent Ltd. UK company that makes all natural fruit

drinks

Recent AcquisitionOctober 2, 2010-purchased the North

American business of Coca-Cola Enterprises Inc.Combined the management of their acquired

business with the management of the existing North American operations

This created a North American business for the Coca-Cola Company that they think will be more organized and effective

Corporate GovernanceCorporate governance policies include

Annual evaluation of the CEO’s performance and the board performance as a whole

Guidelines on how a director is determined to be independent from The Coca-Cola Company

Ethical disputes handled by: Creating community programs worldwide Hiring public relations companies to contest disputes Establishing complaint hotlines

Company activities Created programs for HIV & AIDS testing, treatment, and

prevention in Haiti and South Africa Started using plantbottle TM

Reusing recycled cans and bottles

Coca-Cola is also facing ethical issues:Overconsumption of water at overseas

factoriesPesticides from water suppliesHealth concerns

Tooth decayWeight gainLower sperm count

Potential Employee?Pros

Very structured organization with thousands of employees

Employee benefits

Cons

Employee dissatisfaction

Based on 158 employee reviews on glassdoor.com

Pepsi Hopes Tapping a Big Gun Will Restore

Market SharePepsiCo’s mission to develop a stronger and

more effective marketing campaignCostly mistake of missing a marketing opportunity on

not sponsoring American IdolNow planning to sponsor X Factor

Marketing strategy being used has been ineffective

Even tries to imitate Coca-Cola’s marketing strategyCoca-Cola has a 70% dominance in restaurants

in America

Pepsi Hopes Tapping a Big Gun Will Restore Market Share(cont.)Coca-Cola’s loyal customer base and image in

community allows for more risky marketing strategiesSpent $690 million compared to Pepsi’s $400

million on television commercialsMarketing strategies are extremely important

to gaining customersCoca-Cola will have to develop innovative ideas

to maintain their lead with Pepsi’s close monitoring of their marketing strategies

Any major mistakes can give Pepsi the lead

QUESTIONS?