 |
||
|
|
||
| |||||||||||
Nothing better than the real thing The Real Thing was invented by Atlanta pharmacist John S. Pemberton in 1886 in the basement of his house, its name devised by a bookkeeper and based on two of the main ingredients in the top-secret recipe: coca leaves and kola nuts. Four years later, pharmacist Asa Candler had taken over operations, and the soda was available nationwide by 1895. In 1899, the bottling rights were sold for $1 to Benjamin Thomas and John Whitehead, who introduced Coke in the C. J. Root Glass Company's shapely green bottle 17 years later. The company bought Minute Maid in 1960 and the following year introduced Sprite, today the world's best-selling lemon-lime soda. Coca-Cola floundered in the cola wars of the 1980s against its feisty upstart, Pepsi, prompting the launch of the infamous "New Coke." After that fiasco, Coca-Cola spun off its non-core assets - such as Columbia Pictures - and reaffirmed its status as the leader of the global soft drink market. The company has the most valuable brand name in the world (Coke), estimated to be worth $40 billion. Although the company controls a 44 percent domestic share, Coke is truly "it" overseas: 80 percent of its profit comes from outside North America. Coke controls a 48 percent (and growing) share of the world's soft drink market; rival Pepsi boasts only 13 percent. Since the death of longtime CEO Robert Goizueta in late 1997, Coca-Cola faces new leadership and a new era, and is shooting for a 50 percent domestic share by 2001. That goal is certainly within reach: the company already controls 44 percent of the domestic market. Slogans and mottos Coke has introduced a waiting world to a litany of successful marketing campaigns and slogans. From "The Pause that Refreshes" (1929) to "It's the Real Thing" (1941), Coke's slogans have infiltrated the language, while infectious commercials - ranging from the Mean Joe Greene commercial to "I'd like to teach the world to sing" - have infused the popular consciousness. They'd better - Coke has an advertising budget of more than $1 billion a year. Along with its successful conventional advertising campaigns, the company is well known for its product-pushing through major sports and entertainment events: Coke has deals with the NFL, NASCAR and World Cup Soccer. The sporty sugar high The company has also built a longtime relationship with the Olympic Games; first promoting its drinks in the 1926 Games. (In 1996, however, many sports fans felt Coke had gone overboard with its overwhelming advertising presence at the 1996 Atlanta Games.)Coke has been trying to move beyond its older core customer base by reaching out to younger drinkers with hip and more alternative drinks, such as Fruitopia. In 1997, the company introduced Surge, a hypercaffinated rival to Pepsi's growth brand Mountain Dew, and Coke Classic and Minute Maid Cherry drinks in 1999, to be dispensed at Burger King's 8,200 restaurants. Earlier that year, the Coca-Cola company edged out Pepsi in a 10-year deal with the nation's No. 2 fast-food chain. In the meantime, the company has been busy fending off an antitrust lawsuit brought by Pepsi in 1998, which accuses Coke of unfair business practices. Pepsi has good reason to be worried. Wendy's signed an exclusive deal with Coke to sell the beverage at its 1,400 restaurants that year. French regulators, however, in 1998 squashed Coke's pending acquisition of Orangina, fearing the beverage giant would become completely dominant in France. The Cadbury conundrum In December 1998, Cadbury Schweppes (the world's third-largest soft-drink company) agreed to sell a large portion of its beverage business to Coke for $1.85 billion. According to the announced deal, Coke would acquire Cadbury's soft drink brands in 120 countries, excluding the U.S., France and South Africa. Almost immediately, several members of the EU challenged the deal, worried that it would give Coke a monopoly on the European soft-drink market. In April 1999, the EU competition chief claimed jurisdiction over the deal, and lambasted Coke for trying to evade European antitrust regulators. In August 1999 regulators approved a scaled down version of the transaction. The new $705 million deal accounts for less than half of the business Coke had planned to purchase but leaves room for the inclusion of contracts in four additional countries. Product troubles The summer of 1999 brought more troubles to Coke in the form of a series of recalls throughout Europe. The recalls of various Coke products resulted from a variety of quality control problems and cost Coke about $103 million dollars. Coke officials are also concerned about adverse effects caused by the stigma of a health scare. In December 1999, after only two years on the job, CEO Douglas Ivester shocked the business world by announcing he would step down from his post in April 2000. He named senior vice president Douglas Daft his successor. Legal troubles In April 1999, a lawsuit charging racial discrimination was brought against Coke by eight current and former employees. The employees alleged that Coke denied them raises, promotions and fair performance reviews because of their race. The plaintiffs sought monetary damages and a court order preventing the company from engaging in discriminatory practices. Although the company denied any wrongdoing, by June, 2000 it had negotiated a private settlement with the complaintants and pledged to spend $1 billion over the next five years to boost opportunities for minorities and women. Just when the company thought it was finally putting this ugly episode behind them, however, new charges emerged to the tune of a $1.5 billion lawsuit. This newest suit was brought by none other than Johnnie Cochran Jr., on behalf of four African-American former Coke employees who charged racial discrimination. Instead of buying the world a smile, at this point Coke may do well to save one for themselves.
Coca-Cola is a hard (kola) nut to crack. It is virtually impossible to land a job with just an undergraduate degree in departments outside of engineering. Unlike some other consumer goods companies, Coke is not led by any one particular department. Insiders say there "there is no set career path." MBAs with their eyes on general management will eventually need to get experience in finance, operations and marketing. There is something of a tradition at Coke of higher-ups "scouting" the young talent and calling them up into higher positions, insiders say, and one can move up without actively seeking advancement. Usually, however, moving up involves "finding yourself a mentor to ask questions and advice." "You have to proactively manage your career," says one insider, which "means making the right contacts within the company." Another contact states: "If you have a particular interest, it is up to you to let people know, to get your name in the game." Insiders tell Vault Reports that the most important thing for prospective employees to do during interviews is to express that they strongly wish to work for the company. "We want to know for certain why the individual is jazzed about our company and industry." Coke is looking for employees that fit a certain mold: "The biggest thing is they're looking for long-term thinkers," says one insider. "They don't want cowboys. They want conservative people who are into adding shareholder value."
Addiction to Coke At The Coca-Cola Company, employees are fervently attached to their employer. "Everyone is very loyal to the company," one former employee says. "They are very proud of all of the accomplishments achieved there." "It is a wonderful company," says another insider, a 15-year Coke veteran. "There is a certain amount of pride many of us take knowing that we have helped get us to this point." Indeed, Coke is the very lifeblood of the company, and its employees shun the sainted liquid at their peril: "People here are expected to drink Coke," one contact says simply. No cowboys here But it's not just a matter of red-and-white pom-poms and megaphones at Coke. The "intense" loyalty meshes with what is invariably described as a "conservative" atmosphere. "Coke has a very corporate, conservative culture," says one insider. "People are very nice here, but it's definitely a reserved atmosphere." "The company's culture is aggressive but can seem slow if you don't see the big picture; steering a tanker is not like steering a 20-foot sailboat," reports one insider. Befitting its conservative atmosphere, Coke has a business formal dress code: "People are expected to wear suits or business attire every day," says an employee at corporate headquarters. "Most men wear dark suits, women are expected to wear skirt suits," says another. As one Coke insider sums up: "The dress code here is business attire. No casual days, as we are a professional organization that must always look that way. Casual day is not in the corporate dictionary." This mix of "rah-rah" cheerleading and "stuffy reserve" leads to somewhat cryptic comments from insiders like: "Coke people tend to be professional in dress and nature, and tend toward the conservative in behavior. This is not to say enthusiasm is not appreciated. In many cases, it is required." Moreover, many insiders say that advancement at Coke, more so than other large companies, depends a lot on who you know. "Coke is a very political place," says one former employee. "You will do well if you know the right people and make the right contacts and 'suck up' to the right people. One of the reasons I am not there now is that I would not suck up to certain people." A Coke business development insider sums up: "This is a club. It is an exclusive club. And you've got to know somebody not only to get in, but to move up." Great benefits Insiders say compensation at Big Red is good, but not stellar. However, they describe the benefits as "the best around." These perks begin with Coke's Atlanta headquarters. "The complex basically has all you need right here," says one insider. "There's a cafeteria, a gift shop, a travel agency, and a medical services office all in the complex. People don't tend to leave to go out to lunch, because the cafeteria here is so big and inexpensive." The headquarters of Coca-Cola, located in downtown Atlanta, also houses a credit union office, a bank, a health club, a dry cleaning service, a gift shop, and its very own branch of the U.S. Post Office. Of the attractions at headquarters, the cafeteria seems to hold a special place in employees' hearts. "The cafeteria is the best I have ever eaten at, food and prices," says another insider. "Since drinks are free, you can eat lunch there every day under $3.00. And for that you get an entree, two vegetables, and dessert." Besides the benefits of the corporate campus, same employees have tuition reimbursement, a stock-purchase plan, and enjoy a 401(k) plan that has made many a Coke employee's retirement a golden one. There are also "days off at Six Flags Atlanta" (employees get off at 3 in the afternoon one day each September for a free outing at the amusement park), "Thanksgiving Dinner," and "available concert tickets in the Coca-Cola section in the front at almost any major venue in the country" (employees can buy tickets at the company's campus). And of course, there is the "all-you-can-drink" aspect of working at Coke. The pause that refreshes is reportedly distributed through coolers, fountains, and vending machines rigged so all you have to do is push the button and the Coke comes out. "You never need pay for a soft drink again between 9 a.m. and 5 p.m," says one employee. (In fact, refreshments are available 24 hours a day at Coke's headquarters.) "You can OD on the free Cokes, Sprites, and Frescas." Millionaire secretaries Perhaps the best perk at Coke are the stock options. Says one employee: "In the long run, total compensation is probably higher than it is elsewhere, but you need to be patient; options can have long vesting periods, and bonus only comes in at a given threshold that entry-level employees are unlikely to obtain to very soon." One finance MBA is less reserved: "They start out small and they fool you. I think people fail to realize how potentially lucrative this place is. By the time you're 55, you're sitting on $10 million, and it's growing exponentially. There are secretaries floating around here who are millionaires." Workdays vary from department to department but are generally on the long side, although not nearly as long as consulting or investment banking hours. "People tend to arrive early and work late," says one insider at corporate headquarters. "Hours can vary from a 40-hour work week to a 60 or 70-hour week, which many of us seem to be working on a regular basis," another says. "If you are on salary, you work until the job is done, however long that takes." However, one recent MBA hire tells Vault Reports: "People here are not so unreasonable as to not understand the need for a life. I never work weekends." Sweet diversity harmony If employees in Atlanta are to be believed, corporate headquarters is teaching the world to sing in perfect harmony. "One of the things I especially liked was the many languages you could hear spoken in the cafeteria and hallways of the corporate offices. It is truly an international company," says one insider. "Coke hires people of all different races, religions, and cultures. It is a very diverse company," says another. Employees tend to be less effusive when discussing the status of women at headquarters. Although no one mentions any special programs or hard-hitting recruiting efforts, female employees tell Vault.com they are treated "fairly," with "good opportunities for advancement." "There are many women in management," says one former employee.
(Division name) Human Resources One Coca-Cola Plaza1 Atlanta GA 30301
Cherry Coke;Sprite;Coca-Cola Classic;Coca-Cola Light;Diet Coke;Barq's;TAB;Minute Maid juices;Nestea;Fruitopia;Surge
Ocean Spray;PepsiCo;Seagram;Triarc More Company Profiles For more career information, go to Vault.com ©2000, Vault.com Inc
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
