Case Study (Fortune 500 Coca Cola)

Case Study: BPR Experience of
The Coca-Cola COMPANY

as one of Fortune 500 Company
In partial requirement for MIT 616 – Business Process Reengineering
Submitted by:
Abdula, Marshiela
Sanchez, Blances
Serrano, Ayra Katrin
Submitted to:
Prof. Flordeliz Garcia
July 2020
I. Background of the Company
A. Nature of Business, Short History of Origin
1. Nature of Business
The Coca-Cola Company is a beverage retailer, manufacturer and

marketer of non-alcoholic beverage concentrates and syrups. It’s bottling
partners are the world’s leading producers of non-alcoholic beverages, with
operations in more than 200 countries, encompassing over 900
manufacturing facilities. The company's flagship product is Coca-Cola, but it
offers more than 500 brands in over 200 countries or territories and serves
1.6bn servings each day. The company reports more than 700,000 system
employees—from warehouse workers, manufacturers, and bottlers, to
distributors and vendors.
2. Short History of Origin
Coca-Cola's history began in 1886 when the curiosity of an Atlanta

pharmacist, Dr. John S. Pemberton, led him to create a distinctive tasting
soft drink that could be sold at soda fountains. He created a flavored syrup,
took it to his neighborhood pharmacy, where it was mixed with carbonated
water and deemed “excellent” by those who sampled it. The name Coca-
Cola name comes from coca leaves and cola fruit, two components of the
Coca-Cola drinks. Dr. Pemberton’s partner and bookkeeper, Frank M.
Robinson is credited with naming the beverage “Coca-Cola” as well as
designing the trademarked, distinct script, still used today.
B. Mission, Vision, Goals

1. Mission
“Our Roadmap starts with our mission, which is enduring. It declares

our purpose as a company and serves as the standard against which
we weigh our actions and decisions.”
● To refresh the world...

● To inspire moments of optimism and happiness...
● To create value and make a difference.
2. Vision
“Our vision serves as the framework for our Roadmap and guides
every aspect of our business by describing what we need to
accomplish in order to continue achieving sustainable, quality
growth.”
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.
Productivity: Be a highly effective, lean and fast-moving

organization
3. Goals
The main objectives for the Coca-Cola Company are to be globally

known as a business that conducts business responsibility and ethically to
accelerate sustainable growth to operate in tomorrow's world. By having
these objectives, it forms companies in the decision-making process.
C. Current Financial Status (Assets, Earnings, etc.)
Company information
As of 5/18/2020
Revenues ($M) $37,266
Profits ($M) $8,920
Market Value ($M) $189,983
Employees 86,200
Key Financials (Last Fiscal Year)
$ millions % change
Revenues ($M) $37,266 17%
Profits ($M) $8,920 38.6%
Assets ($M) $86,381 -

Total Stockholder Equity ($M) $18,981 -
II. Business Problem/Opportunity Requiring Business Process Reengineering

A. Business Process(es) Involved (Show Process Flow)
B. Difficulties Encountered
C. Baseline Measurements of Problematic Business Process in terms of:
1. Time Involved
Inefficiency in real time distribution and manufacturing reports on

which to base tactical and strategic decision making.
2. Costs Incurred
Legacy systems in this kind of company roughly cost around $25,000

- $100,000 not to mention the maintenance and update cost.
3. No. of People Involved
80,000 Employees
III. The BPR Solution:

A. How BPR Team was organized
Drawing points back with the beverage company’s encountered difficulties, BPR team
was organized upon sought difficulties encountered radiating baseline measurements
of business problematic issues such thus proceeded Value Chain Management
analysis (2006), consequently rolling out SAP BO Supply Chain Management (2011)
application globally to its bottlers worldwide.
B. Analysis: Basis of Redesign
In line as one of the top beverage companies known globally, keeping up a

sharp edge against competitors is highly prioritized. This accords the company’s
objective to fill the gap between the supply and demand as it primarily generates
subtle costs to maintain manufacturing and product distribution keeping abreast with
its 225 and above bottling partners worldwide.
As Coca Cola expanded nationally and internationally by adding licensed

bottlers and distributors, the company recognized the need to control inventory and
its related costs to the country (Coca Cola - Evolution of Supply and Chain
Management, 2010).
The powerhouse company has been facing challenges of bringing in

consistency of reporting and having real time information on which to base tactical
and strategic decision making. As its supply chains complexly extend globally,
actionable insights supporting its continuous improvement with an end-to-end view
of performance is critical asserted by Thad Dungan, Solution Management Vice
President at SAP.
Thus, these paved the way in building software platforms using business
process reengineering to free up some operations that pursue desired outcome.
C. Vision of Reengineered Process: Desired Outcomes Pursued
 It is end to end business tool that will allow Coca-Cola to standardize all the
systems and process applying the same technology and all divisions and
department.
 Introduced new and more effective methods to optimize productivity and
performance throughout the organization.
 This provide excellent customer service by improving Coca-Cola customer
service procedures.
 With the new SAP system, customer has access to various critical customer
information.
 Benefits when it comes to cost reductions.
D. IT Levers (Information Technologies) used
E. BPR Methodology Applied
Lean Six Sigma - A combination of two popular Continuous Improvement

methods—Lean and Six Sigma—that pave the way for operational excellence. These
time-tested approaches provide organizations with a clear path to achieving their
missions as fast and efficiently as possible.
Lean Six Sigma Implementation:

IV. Performance of Reengineered Process in terms of:
A. New Process Flow with the inclusion of IT levers used
 They have also rethought their distribution process

 Bolstered its success by providing a real time decision tool to its sales force
while in the field
B. Savings due to time and manpower saved as a result of BPR

C. New performance in terms of time, costs, quality and satisfaction of customers
V. References
A. https://www.britannica.com/topic/The-Coca-Cola-Company
B. https://www.coca-colacompany.com/company/purpose-and-vision#:~:text=Our
%20Vision%3A,-Our%20vision%20is&text=And%20done%20in%20ways
%20that,refresh%20them%20in%20body%20%26%20spirit.
C. https://www.theguardian.com/sustainable-business/companies-list-c-d1
D. https://fortune.com/company/coca-cola/fortune500
E. https://coca-colahellenic.com/media/1197/ar11-2026-2.pdf
F. https://coca-colahellenic.com/media/1197/ar11-2026-2.pdf
G. https://www.slideshare.net/abhinavjohnson/business-process-reengineering-bpr-
role-of-it
H. https://www.macrotrends.net/stocks/charts/KO/coca-cola/number-of-employees
I. https://blog.icreon.us/advise/business-process-reengineering
J. https://www.investopedia.com/articles/markets/100715/what-makes-share-coke-
campaign-so-successful.asp
K. http://www.guillaumenicaise.com/wp-content/uploads/2013/10/Coca-Cola-in-
Vietnam.pdf
L. https://www.bsigroup.com/globalassets/documents/training/case-
studies/CocaCola-Case-Study-Web.pdf
M. https://goleansixsigma.com/what-is-lean-six-sigma/
N. https://community.mis.temple.edu/mis2101702spring2014/2014/04/03/coca-cola-
sap/
O. https://prezi.com/ebbswq2dkz2h/business-process-reengineering/

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Case Study: BPR Experience of

The Coca-Cola COMPANY

In partial requirement for MIT 616 – Business Process Reengineering

Prof. Flordeliz Garcia

The Coca-Cola Company is a beverage retailer, manufacturer and

2. Short History of Origin

Coca-Cola's history began in 1886 when the curiosity of an Atlanta

B. Mission, Vision, Goals

“Our Roadmap starts with our mission, which is enduring. It declares

● To refresh the world...

Partners: Nurture a winning network of customers and

Planet: Be a responsible citizen that makes a difference by

Profit: Maximize long-term return to shareowners while

Productivity: Be a highly effective, lean and fast-moving

The main objectives for the Coca-Cola Company are to be globally

C. Current Financial Status (Assets, Earnings, etc.)

Revenues ($M) $37,266

Profits ($M) $8,920

Market Value ($M) $189,983

Key Financials (Last Fiscal Year)

Revenues ($M) $37,266 17%

Profits ($M) $8,920 38.6%

Assets ($M) $86,381 -

II. Business Problem/Opportunity Requiring Business Process Reengineering

Inefficiency in real time distribution and manufacturing reports on

Legacy systems in this kind of company roughly cost around $25,000

3. No. of People Involved

III. The BPR Solution:

B. Analysis: Basis of Redesign

In line as one of the top beverage companies known globally, keeping up a

As Coca Cola expanded nationally and internationally by adding licensed

The powerhouse company has been facing challenges of bringing in

D. IT Levers (Information Technologies) used

E. BPR Methodology Applied

Lean Six Sigma - A combination of two popular Continuous Improvement

Lean Six Sigma Implementation:

 They have also rethought their distribution process

B. Savings due to time and manpower saved as a result of BPR

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