Coke
Inside the chairman’s office on the 25th floor of Coca-Cola’s stately headquarters in Atlanta, in the top left-hand drawer of his desk, Roberto Goizueta has for many years kept two charts. One describes Coca-Cola’s fundamental business: selling the concentrate that transforms fizzy water into . The diagram plots the four reasons Goizueta adores the business: (1) Selling concentrate requires little capital; (2) it produces superb returns; (3) it demands minimal reinvestment; (4) it spills an ocean of cash.
One day recently, Coca-Cola’s cerebral chairman and CEO was asked to pull out the second chart. This one illustrates PepsiCo’s altogether different strategy, which has involved pouring ...
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a whole lot more red—Coca-Cola red—than he ever expected. Not to mention red as in ink, as in blood. PepsiCo has been badly wounded in the cola wars. Its casualties are high. Caroline Levy, who follows the soft drink industry for the investment firm Schroder Wertheim, says Pepsi is losing customers to in every major foreign territory. The company has always struggled overseas, but in the past few months it has lost key strongholds in Russia and Venezuela to . Even on the home turf, Pepsi is outgunned. ’s market share lead of 42% to 31% in the U.S. is the largest in 20 years, according to Maxwell Consumer Reports.
It’s a defining moment in the world’s most ruthless corporate war. Yes, they both sell sugar water, but Coca-Cola and PepsiCo never were as similar as most people believed. In recent years they have veered in completely opposite directions. While PepsiCo diversified increasingly into restaurants and snacks, focused on soft drinks. Fittingly, the commanding officers of ...
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division, which includes Pizza Hut, Taco Bell, and KFC. Enrico, who owns $19.2 million of Pepsi stock, is a reluctant CEO. He had to be talked into the job by Wayne Calloway, who this past spring stepped down, ill with prostate cancer.
So now Enrico, the hero of an earlier campaign in the cola wars, is back in the beverage business again. He is returning to one hell of a mess inherited from Calloway, and a job not made any easier by his past. has had a vendetta against Enrico ever since he gloated about the New debacle a decade ago in his memoir, The Other Guy Blinked: How Pepsi Won the Cola Wars. Says Goizueta, seeming both vindicated and vindictive: "It appears that the company that ...
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Coke. (2006, May 13). Retrieved November 22, 2024, from http://www.essayworld.com/essays/Coke/45867
"Coke." Essayworld.com. Essayworld.com, 13 May. 2006. Web. 22 Nov. 2024. <http://www.essayworld.com/essays/Coke/45867>
"Coke." Essayworld.com. May 13, 2006. Accessed November 22, 2024. http://www.essayworld.com/essays/Coke/45867.
"Coke." Essayworld.com. May 13, 2006. Accessed November 22, 2024. http://www.essayworld.com/essays/Coke/45867.
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