The Coca-Cola Company’s Success Factors

Coca Cola Company Limited

The Coca-Cola Company is the largest manufacturer, retailer, and marketer of non-alcoholic beverages around the world. It was established in 1886 in Columbus, Georgia, but it is currently headquartered in Atlanta, Georgia. The success of the company is attributed to the mode of operation where it operates franchised distribution around the world by producing syrup concentrate and selling it to bottling companies for production. Additionally, the company has a centralized management system that helps management to administrate all business affairs effectively. The management monitors the performance of franchises coupled with offering administrative and technical support to ensure that it remains competitive in various parts of the world (Nganga, 2014). The company’s success can be attributed to effective management of the four basic inputs of business, which include natural resources, human capital, capital, and entrepreneurship.

Three Basic-inputs that influence the Coca-Cola Company

The basic inputs include human capital, entrepreneurship, and capital. Firstly, human capital is one of the most important factors that determine the success of a business (Fandel, 2012). Employees are the best marketing tools for any business. Therefore, to achieve employee branding, the company focuses on recruiting the best-qualified candidates and making it clear to them that it aspires to help them achieve their career goals. By so doing, it attracts the best talents and challenges the competitors. Additionally, employee training is done regularly without fear of the company becoming a training ground for competitors and the idea has helped retaining best employees in the industry. Besides, the company has well-defined exit strategies where employees are asked to fill questionnaires, which are forwarded to the top management for reviewing. This aspect has enabled the business in identifying any demotivating factors that employees experience and efforts are made to rectify the situation.

In ensuring competitive advantage over competitors, the company applies a sales quota strategy through the sales department, which motivates employees to give their best to achieve individual targets while still competing with others. The best performing employees are recognized and rewarded at the end of any given period (Baron, 2012). Lastly, the organization ensures that all employees wear branded uniforms that help to promote the company products. However, due to the large employees’ population size, the human resource department is not centralized. Top management affairs are managed at the headquarters and other employees’ affairs at the franchise levels.

Secondly, entrepreneurship is the most important factor of business that renders to the establishment and success of an organization. The Coca-Cola Company has grown worldwide due to the entrepreneurial spirit of its founder, Asa Griggs Candler, who developed the idea of operating franchise network in 1892 (Nganga, 2014). The company has since been managed by his successors who have retained the same spirit of ensuring the business is competitive in all parts of the world. Every business succeeds due to the uniqueness of the products and customer satisfaction (Boone & Kurtz, 2013).

Coca-Cola has the best products regarding quality that competitors have failed to achieve for a long time. The formula used in the production of syrup ingredients is a secret, which experts say it is the greatest competitive advantage that entrepreneur spirit has ever achieved in the world of business. Hence, the company’s success is attributed to entrepreneurial spirit of the top managers.

Thirdly, capital is an essential factor in business. The company runs at high costs, and thus huge capital is required to keep it running smoothly. In the contemporary world, businesses attain competitive advantage through social-corporate affairs. The main objective is to make customers recognize that business minds their social affairs, which turns to be a marketing strategy. Coca-Cola operates in over 200 countries around the world, and thus it incurs huge capital in operation costs as well in the marketing strategies. The most effective marketing strategies that company utilizes include sponsorships and media advertising, which are the most expensive marketing strategies, but have helped to garner competitive advantage over other competitors in major parts of the world (Boone & Kurtz, 2013).

Two factors to monitor and three actions to overcome them

The two most important factors include human capital and capital. Human capital is the most effective tool for the success of a business. Employees make products, which sell to make a profit. Therefore, employees are directly connected to the success of business. Coca-Cola recognizes the importance of employees and it has mechanisms that make them feel appreciated coupled with providing the best possible working environment for them. Secondly, the large size of company requires high cost of operations and thus it runs at high capital demands, which is a challenge for any business (Kuratko, 2013).

One of the three main actions to overcome these factors include employee branding, which uses employees as marketing tools. Second, product promotions and sponsorship help in attaining competitive advantage and thus solving problems attributed to high costs of operations. Third, the company has decentralized human resource department affairs that help to cater for the needs of employees at various levels of management. Employee management is a great challenge to multinational corporations due to cross-cultural characteristics hence important in decentralizing the employees’ management affairs (Mayo, 2012).


Baron, R. A (2012). Entrepreneurship: An Evidence-based Guide. Northampton, MA: Edward Elgar Publishing.

Boone, L., & Kurtz, D. (2013). Contemporary Marketing. New York, NY: Cengage Learning.

Fandel, G. (2012). Theory of Production and Cost. London, UK: Springer Science & Business.

Kuratko, D. (2013). Entrepreneurship: Theory, Process, and Practice. New York, NY: Cengage.

Mayo, A. (2012). Human Resources or Human Capital: Managing People as Assets. Atlanta, GA: Gower Publishing.

Nganga, C. (2014). Coca-Cola Company. History, SWOT Analysis, Marketing Strategies. San Francisco, CA: GRIN Verlag.