COMPANY NAME: The CocaCola Company Limited
Question 1: Agency Theory.
Agency- An agency, in broad terms, is any relationship between two parties in which one, the agent,
represents the other, the principal, in day-to-day transactions. The principal or principals have hired the
agent to perform a service on their behalf.
What then do we mean by ‘Agency Theory?’
Agency theory is a principle that is used to explain and resolve issues in the relationship between business
principals and their agents. Most commonly, that relationship is the one between shareholders, as
principals, and company executive, as agents.
Critical Issues arising;
Principals delegate decision-making authority to agents. Because many decisions that affect the principal
financially are made by the agent, differences of opinion and even differences in priorities and interests
can arise. This is sometimes referred to as the principal-agent problem.
Important key point; this theory assumes that the interests of principals and agents are not always in
alignment.
Agency theory addresses disputes that arise primarily in two key areas:
A difference in goals.
A difference in risk aversion.
Examples of Agency Theory.
Financial planners and portfolio managers are agents on behalf of their principals and are given
responsibility for the principals' assets.
Various proponents of agency theory have proposed ways to resolve disputes between agents and
principles. This is termed "reducing agency loss."
Agency loss- is the amount that the principal contends was lost due to the agent acting contrary to the
principal's interests.
One of the strategies is the offering of incentives to corporate managers to maximize the profits of their
principals.
The stock options awarded to company executives have their origin in agency theory. Other practices
include tying executive compensation in part to shareholder returns.
THE COCACOLA COMPANY LIMITED.
Question 2. 5 Activities of Corporate Social Responsibilities of CocaCola Company Limited
(CSR)
Coca-Cola proudly serves more than 200 countries and territories from around the world, and Corporate
Social Responsibility (CSR) is at the core of its business in each one of them.
Corporate Social Responsibility is a part of its commitment in establishing sustainable communities.
The following is the list of activities in which cocacola company has played in terms of CSR:
Giving back at least 1% of the Company’s operating income annually to various programs, initiatives and
causes.
For example, In 2014 alone, they gave back $126 million, or 1.3% of their operating income, which was
invested in
Active and healthy living initiatives,
Water stewardship programs,
Education and women’s empowerment,
Humanitarian and disaster relief programs, to name a few.
In the Middle East, they have launched a number of campaigns as part of their corporate citizenship
program.
These have ranged from:
Supporting university students who are hoping to become entrepreneurs through its ‘Ripples of
Happiness’ program,
Providing refugees in the region with clean drinking water, through the Arwa ‘Price of Water’ campaign
that we launched in 2014.
In Kenya they have an initiative kuza kazi where they offer soft beverage vendors with business kits to
help them in their businesses.
It Also one of the official sponsors of Choma na Ngoma festival that is hosted every year in Nairobi that
is aimed at promoting diversity and unity through music and socializing.
Coca cola has also been active in sports section in almost all the countries they operate in. Such in USA is
the NBA championship where sprite, the world leading lemon lime Sparkling beverage is the official
drink of the National Basketball Association and also in the Olympics games coca cola has been
supportive by being the longest continuous corporate partner of the Olympics Games.
TEMPLATE FOR STRATEGIC PLANNING
Organization The Coca cola Company Limited
Philosophy REFRESHMENT TO CUSTOMERS.
Looking at the history of Coca Cola it was invented by a man named Mr John Pemberton. He was a war
veteran who had mortal injury from the battlefield. He was given a great deal of morphine to ease his pains.
He later on become dependent on the painkiller, even going as far as to start a pharmacy to ensure steady
supply of his drug. He started looking for a cure for his addiction . After years of research and experimental he
came up with a cola syrup.
He produced the syrup for Coca-Cola, and carried a jug of the new product down the street to Jacobs'
Pharmacy, where it was sampled, pronounced "excellent" and placed on sale for five cents a glass as a soda
fountain drink. Carbonated water was teamed with the new syrup to produce a drink that was at once
"Delicious and Refreshing," a theme that continues to echo today wherever Coca-Cola is enjoyed.
Thinking that "the two Cs would look well in advertising," Dr. Pemberton's partner and bookkeeper, Frank M.
Robinson, suggested the name and penned the now famous trademark "Coca-Cola" in his unique script.
Mission Statement o To refresh the world in mind, body and spirit.
o To inspire moments of optimism and happiness.
o To create value and make a difference.
Vision Statement “People: Be a great place to work where people are inspired to be the best they can be”, “Portfolio: Bring to
the world a portfolio of quality beverage brands that anticipate and satisfy people’s desires and needs”,
“Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value”,
“Planet: Be a responsible citizen that makes a difference by helping build and support sustainable
communities”. “Profit: maximize long-term return to shareowners while being mindful of our overall
responsibilities”, and “Productivity: Be a highly effective, lean and fast-moving organization”.
Core Values Quality, Excellence, Integrity &Respect
Corporate Market penetration pricings
Strategy
Price adjustment
Developing skills and capabilities
Restructuring of the business structure
Business standardisation
Business Strategies Responsible marketing
Smarter procurement
Effecient responsible sourcing
Providing incentives
Product accessibility
Trademark of brands
Proper and efficient advertising
Operational Effecient use of resources
Strategies
Excellent execution of stores
Wellbeing and sustaining energy during work.
Reduce energy usages per production
Treating employees equally
Health and safety of our people
Using new and latest technology in production
Production of healthy products
Innovation new branding and bottling designs
Perspective Strategic Key Project/Initiatives Tactics
Objectives Performance
Indicator
Finance Diversity and Increased Investing more on Building a plant
revenue streams. profits new promising for ensuring
brands consistent supply
of those brands.
Venture into other Sponsoring sports
forms of business men and women
such as sports and sporting
teams
Grow shareholders Attraction of Maintaining Maintain
value more working capital negativeworking
investments. discipline capital balance
sheet position
Increasing sales in Advertising all our
all the brands brands equally
without
discriminating
any one
Customer Innovating our Attraction of Innovation of Partnering with
portfolio for our new healthier new the European Soft
customers customers options across our drinks Association
portfolio for our to reduce sugar
customers levels in soft
drinks.
Meals and Increasing sales in
socializing hotels,
occasions. restaurants,cafes
and events by
offering free
samples of
different types of
their products to
people.
Evolving with the High rate of Seizing Rolling out open
changing needs of customer opportunities in fronted coolers
our customers retention single- serve beside the
packages. customer's
prepared foods .
Improving product Tailoring our
accessibility customers
relationship so
that we can
provide each
customer with
the right level of
sales force
coverage and
access.
Process Reduce error rates Low Innovative Keep in touch
during production percentage of packaging with the trends in
and packaging product the market
defect
Develop digital Using the recent
solutions for machines that are
production not only faster
but accurate.
Reduce energy Environmental Saving energy used Using digital
usage per unit of sustainability during production cooling systems
production
Reduce heat Using waste heat
wastage during recovery boilers
production to the
environment
People Creating an Employees Living our values Engaging with our
inspiring workplace satisfaction and making our employees
for our people and retention culture more agile
and innovative
Championing Employing people
inclusion, diversity of different races
and human rights. in different
continents.
Build high Improved Strengthening Training
performing teams employee capabilities of employees
turnover rate employees
Having the best Setting correct
person in every qualifications
position today and ethics, codes and
tomorrow standards that
should be
followed during
recruitment.
