An Assignment on Coca-Cola (History and Background)

Pearson Education 2020
Higher Education Qualifications

Pearson Education 2020
Higher Education Qualifications
TABLE OF CONTENTS
1. Introduction ......................................................................................................................................... 1
1.1. An overview of the history of Coca-Cola ................................................................... 1
1.2. History of Coca-cola Vietnam ................................................................................... 1
1.3. Coca-Cola’s activities in Vietnam ............................................................................. 1
1.4. Organization sizes and legal forms in Vietnam .......................................................... 4
2. Business environment of Coca-Cola Vietnam ........................................................................................ 5
2.1 The Coca-Cola industry ........................................................................................... 5
2.2 Sub-sector in Vietnam. ............................................................................................. 7
2.3 The growth of Business environment: ....................................................................... 8
3. Two selected competitors of Coca-Cola Vietnam ................................................................................. 11
3.1 Background details and activity of PepsiCo ............................................................. 11
3.2 Organizations sizes and legal forms of PepsiCo in Vietnam ...................................... 12
3.3 Background details and activity of Tan Hiep Phat ................................................... 13
3.4 Organizations sizes and legal forms of Tan Hiep Phat .............................................. 14
3.5 Vision statement and mission statement. ................................................................. 14
3.6 Information their stakeholder ................................................................................. 15
4. Business functions of Coca-Cola Vietnam ........................................................................................... 16
4.1 Organizational chart of Coca-Cola Vietnam ............................................................ 16
4.2 Advantages of functional structure ......................................................................... 18
4.3 Disadvantage of functional structure....................................................................... 18
4.4 The cooperation between departments .................................................................... 18
5. Conclusion .......................................................................................................................................... 20
REFERENCES ...................................................................................................................................... 21

Pearson Education 2020
Higher Education Qualifications
TABLE OF FIGURES/PICTURES
Picture 1: Revenue of beverage brands in Vietnam 2016-2019 ........................................... 2
Picture 2: Performance indicators of Coca-Cola Vietnam 2016-2019 ................................ 3
Picture 3: Vietnam beverage market share chart in 2017.................................................... 4
Picture 4: Business activities of Coca-Cola Vietnam (Unit: billion VND) .......................... 6
Picture 5: Beverage market 2017.......................................................................................... 10
Picture 6: The organizational chart of Coca-Cola Vietnam company .............................. 17

1
1. Introduction
1.1.An overview of the history of Coca-Cola
Coca-Cola Invented by John Stith Pemberton in 1886. Dr. John S. Pemberton began making
a new non-alcoholic beverage. He came up with a pleasant-tasting syrup that could be blended
with carbonated water and offered as a refreshing drink at a freshwater fountain. Coca-Cola
is one of America's largest corporations and the world's largest beverage manufacturer and
distributor, with over 2,800 products distributed in over 200 countries. The company's
headquarters are located in Atlanta, Georgia (The Coca-Cola company, 2021).
1.2.History of Coca-cola Vietnam
Coca-Cola was first introduced in Vietnam in 1960. After the US lifted the trade embargo, in
February 1994 Coca-Cola returned to Vietnam and started the business. The first joint venture
between Coca-Cola Indochina and Vinafimex was created in August 1995 and was located in
the north. Due to the partnership between Coca-Cola and Chuong Duong in Vietnam, the next
joint venture, Coca-Cola Chuong Duong beverage firm, was formed within a month. Another
joint venture appeared in the Central area in January 1998. This is the last joint venture that
Coca-Cola Indochina in Vietnam, with a partnership with Da Nang Beverage Company. In
June 2001 Coca Cola beverage companies in 3 regions were merged into 1 and have the middle
management of Coca-Cola Vietnam with head office in Thu Duc District, Ho Chi Minh City.
Coca-cola Vietnam is named Coca-Cola beverages Vietnam limited liability company. Coca-
Cola has three manufacturing sites in Vietnam, located in Hanoi, Da Nang, and Ho Chi Minh
City.
1.3.Coca-Cola’s activities in Vietnam
Coca-Cola Vietnam with the orientation to become a comprehensive, consumer-oriented
beverage company, the company constantly improves and provides a variety of quality and
diversified beverages, including product lines. low sugar and no sugar. Coca-Cola, Coca-
ColaLight, Coke Zero, Sprite, Fanta, Minute Maid Nutriboost, Minute Maid Teppy,
Schweppes, Dasani, and Aquarius are among Coca-beverage Cola's brands in Vietnam.

2
Capturing the trend of customers in Vietnam, Coca-Cola diversified its products with fruit
juices, teas, coffees and zero-calorie drinks. According to Mr. Sanket Ray, Managing Director
of Coca-Cola Vietnam. Coca-Cola Vietnam had a good year in 2017. Coca-Cola has
completed its $300 million commitment for 2013-2016 and announced a new investment of
$285 million in its manufacturing units in Hanoi, Da Nang, and Ho Chi Minh City for 2017-
2020. Overall, as a total beverage company with new innovations for customers, Coca-Cola
Vietnam has achieved steady growth and is poised to grow even stronger in the coming years.
(Vietnambiz.vn, 21)
Picture1: Revenue of beverage brands in Vietnam 2016-2019

3
Coca-revenue Cola's has continually increased by trillions of dollars per year in recent years.
Coca-income Cola's in 2016 was VND 6,872 billion, which climbed by VND 346 billion to
VND 7,218 billion in 2017. Coca-Cola Vietnam's revenue in 2019 was VND 9,297 billion, up
9% from the previous year (Vietnambiz, 2021).
(Vietnambiz.vn, 21)
Picture 2: Performance indicators of Coca-Cola Vietnam 2016-2019
However, this business only recorded a negligible profit. Despite a steady increase in revenue,
this unit's declared profit more than halved to VND 227 billion in 2017. During the years 2018
and 2019, the company earned 549 billion dong and 812 billion dong, respectively. However,