The Coca-Cola Value Chain Essay -- Value Chain for Coca-Cola

IntroductionCoca Cola markets nearly 2,400 beverages products in over 200 geographic locations. As a result development of a superior value system is imperative to their operations. Throughout this paper we will analyze their value system by apply Michael Porters value drawing string analysis model. In an attempt to paint a current picture of the non-alcoholic beverage industry we will assess the market employment by using mergers, acquisitions and IPOS as our benchmarks to determine if the market is growing or contracting. Value Chain AnalysisA value chain is a model used to disaggregate a firm into its strategically relevant value generating activities, in order to evaluate each activitys contribution to the firms performance (Terms V 2006). Through the analysis of this model we can gain insight as to how a firm creates their competitive advantage and shareholder value. The value chain of the nonalcoholic beverage industry contains five main activities. These include inbound log istics (suppliers), operations, outbound logistics (buyers/ customers), marketing and sales, and service. Inbound Logistics (Suppliers)Some of Coca Colas most historied suppliers include Spherion, Jones Lang LaSalle, IBM, Ogilvy and Mather, IMI Cornelius, and Prudential. These companies provide Coca Cola with materials such as ingredients, packaging and machinery. In order to ensure that these materials are in satisfactory condition, Coca-cola has put received standards in place which these suppliers must adhere to (The Supplier Guiding Principles). These include compliance with laws and standards, laws and regulations, freedom of association and collective bargaining, forced and child labor, abuse of labor, discrimination, final payment and b... ...com/gst/fullpage.html?res=980CEEDC123AF932A25751C0A9629C8B63 Symbol Technologies, Inc. (2003) Coca Cola FEMSA To Roll Out Symbol Rugged Mobile Computers for Next-Generation R. Retrieved October 25, 2006 from, http//www.symbol.com/new s/pressreleases/press_releases_coca-cola_femsa.htmlSymbol Technologies, Inc. (2006) Coca Cola HBC Improves Sales productiveness by 25 Percent with Symbol Solutions. Retrieved October 24, 2006 from, http//www.scansource.com/symbol/files/CocaCola_CS.pdfReuters (2006) Beverages (Nonalcoholic) Milestones. Retrieved October 24, 2006 from, http//www.investor.reuters.com/business/KeyDevelopmentsBusInd.aspx?industry=BEVNON&topiccodes=207&target=%2fbusiness%2fbussecindustry%2fbussecindfake%2fbusindmajerdev Yahoo Finance (2006) IPOs By Industry. Retrieved October 25, 2006 from, http//biz.yahoo.com/ipo/indg_m.html