【正文】 Water Co. in 1969 ? Expands product line in response to PepsiCo petition in 1960s – Fanta in . in 1960 – Sprite, Tab, Fresca introduced – Diet versions introduced 1970s1980s ? Acquires AquaChem (desalting machines) in 1970 ? Acquires Taylor Wines and other wineries in 1977 ? Introduces Coke in Russia and China in 1970s ? Acquires Columbia Pictures in 1982 for $750 million ? Reformulates Coke ? in 1985。 the markets prise 20% of world population ? Bottling business plays important role in profitability Source: International Directory for Company Histories Source: Annual report。 Poor’s Registar Name Role Japan experience Douglas N. Daft ? CEO and Chairman SENIOR MANAGEMENT ? President and COO James E. Chestnut ? EVP, Operations Support Charles E. Frete Gary P. Fayard ? SVP and CFO Joseph R. Gladden ? EVP and General Counsel Carl Ware ? EVP, Head of Global Public Affairs and Administration ? SVP, Chief Marketing Officer Stephen C. Jones Coke has a diversified team of senior managers. Used to head Japan Jack L. Stahl ? EVP, President of Greater Europe Used to run marketing in Japan COKE STOCK PRICE COMPARISON – . 01 , 0 0 02 , 0 0 03 , 0 0 04 , 0 0 05 , 0 0 01980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999Oct00CocaCola Co. Beverages (nonalcoholic) Samp。P 500 index COKE SALES BY REGION $ Billions Coke has an estimated 56 percent market share in Japan and has been growing its Japanese contribution to total sales. 1993 1995 1997 1999 Other Middle and Far East Europe North America CAGR = 9% 14 21 32 33 29 33 23 15 14 22 29 35 38 23 26 13 Source: Company website COKE’S SALES BY BRAND In 1999, 63 percent of Coke’s total gallon sales came from products bearing “Coke” trademark. 63%37%Coke Other Coke has historically made equity investments in selected bottlers with the intention of financial reengineering, but is now moving away from this strategy. The pany has realized that “big is not always better” and is trying to get out of anchor bottlers in Brazil and the Philippines. Source: Annual reports。 Coke benefited from growth, improved cash flows and increased owner value。 promotes healthy digestion) ? Calo (“functional” soft drink。 Cok e m ai ntai ns 9 30, 000 v e nd i ng m ac hi nes i nJ apa n, ov er t w o ti m es i ts near es t c om peti t or? Lev er ag es ac qu i s i ti ons to ex pa nd di s tr i b ut i on c a pab i l i t i es– Ac qui r ed Kan ebo F oo ds ’ v en di n g m ac hi ne o per at io ns i n 19 96, inc ludi ng 26, 000 m ac hi nes and 250 em pl o y e es? Lev er ag es l oc a l b ottl er s to s et up hi g hl y f unc ti ona l d i r ec t d i s tr i b uti on s y s t em– Al l i a nc es w i th 1 7 b ottl er s i n J a pan– 5% eq ui t y i nt er es t i n Co c a C o l a W es t J apa n, l ar ges t J ap an es e bo ttl erRamp。D nee ded to s uc c es s f ul l y c om pete i n no n c ar bon a ted pr od uc ts i n J a pan es e m ar k et– H i s tor i c a l l y R amp。 aggressive approach to finance and marketing ? Compensation is petitive ? Japan is seen as strong progression path and top talent is sent there – CEO used to head Japan – Chief of Marketing used to run marketing in Japan ? Lack rotation of top Japanese people – Still has “ugly American” syndrome – Senior Japanese feel out of place, experience glass ceiling and do not get high positions in Atlanta ? Strong munity feel to Coke – Holds conventions for bottlers – Distributed bottlers magazine ? Some degree of tension with local staff – Almost 10% of Japan office is foreigners ? Culture not “appropriate” but effectively translated – Winners allowed to be aggressive