Business Case Analysis Term Paper

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Coca-Cola Enterprises, Inc.

Company Overview

The Coca-Cola Company is one of the oldest and largest companies in the United States. The Coca-Cola Company had its roots in 1886 when Dr. John Pemberton began to produce Coca-Cola Syrup for fountain drink dispensers. Coca-Cola bottling has been around since 1899. From there the franchises grew into the giant that it is today. Its most recent accomplishment is its entry into the global marketplace. (CCE, 2002).

Coca-Cola's primary objective is to maintain its current position as a leader of beverage producers in the global marketplace. It is a large corporate entity, however, holds onto a philosophy of maintaining a strong local image and presence in the communities where it operates.

Coca-Cola has 463 facilities, which generate an annual revenue of $16 billion dollars. The Coca-Cola Company currently stands as the world's biggest drink company. They control over half of the world-wide marketshare. Its primary brand is Coca-Cola. The company owns an additional 240 other soft drinks ranging from Coca-Cola spin-offs to Fanta, bottled water and iced coffee.

Soft drinks are a major consumer item with a large customer base. Recently the soft drink industry has been experiencing an economic downturn and a saturated market. There are several prospectives in emerging markets, such as more Asian countries or South America. At this time, the beverage market is risky, for those who wish to enter the market. It could be expected that if expenditures rise and new emerging markets do not increase sufficient revenues, even the major players may have to scale-back operations. At this time, the beverage industry does not appear to be an attractive proposition.

Market Information

The key factors to Coca-Cola's success have been the efforts of its marketing department. Although marketing is never finished and efforts to maintain a presence must be constantly undertaken, Coca-Cola now rides on over 100 years of marketing success. This, in combination with sound risk management strategies has been the key to Coca-Cola's success. Coca-Cola's most valuable asset is its trademark (CCE, 2002). They are one of the oldest and most established brands in the United States and is gaining this type of recognition globally as well.

Aside from their number one brand, "Coke" they also have the brand equity of the top 10 soft drink brands in the United States.

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Coca-Cola Enterprises is the entity behind many familiar brands such as Fanta, Sprite, Perrier, and many more familiar brands.

Coca-Cola Enterprises maintains an increasing presence in the global marketplace. The Company operates in 46 states in the United States, all 10 provinces in Canada, and portions of Europe including Belgium, continental France, Great Britain, Luxembourg, Monaco, and the Netherlands. It maintains Coca-Cola as its major product with the largest portion of shares. However, it also owns the top ten brands in the United States as well.

Coca-Cola Enterprises is comprised of many divisions on many different levels. On the top level, is CEO Lowry F. Kline. Mr. Kline has been CEO since 1997. Along with the CEO, Vice President and any other corporate officers, major company-wide decisions are in the hands of a Board of Directors. There are many management levels from district to local levels with in the corporation.

Coca-Cola Enterprises is the largest beverage companies in the world. Coca-Cola Enterprises' franchise territories encompass a population of 398 million people. This represents 80% of the population in North America and all of the population in Belgium, continental France, Great Britain, Luxembourg, Monaco, and the Netherlands (CCE, 2002). Coca-Cola distributed approximately 4.2 billion cases of soft drinks 2001. This was an increase from 3.8 billion in 2000. The bottle and can varieties comprise of 87% of that market with only 13% from the fountain drink sector (Proforma Cash statement. 2001).

Governmental and Environmental Concerns

The production, distribution and sale in the United States of many of the Company's products are subject to the Federal Food, Drug and Cosmetic Act, and the Occupational Safety and Health Act. It is also subject to other federal, state and local statutes regulating the production, transportation, sale, safety, advertising, labeling and ingredients of such products.

Environmental concerns began to place pressure on the Coca-Cola Company and other major corporations….....

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