VEP: The Coca-Cola Company 2003 (Vault Employer Profile)

EMPLOY PROFILE VAULT EMPLOYER PROFILE:

THE COCA-COLA COMPANY

BY THE STAFF OF VAULT

© 2002 Vault Inc.

Copyright © 2002 by Vault Inc. All rights reserved. All information in this book is subject to change without notice. Vault makes no claims as to the accuracy and reliability of the information contained within and disclaims all warranties. No part of this book may be reproduced or transmitted in any form or by any means, electronic or mechanical, for any purpose, without the express written permission of Vault Inc. Vault, the Vault logo, and “the insider career networkTM” are trademarks of Vault Inc. For information about permission to reproduce selections from this book, contact Vault Inc., 150 W22nd Street, New York, New York 10011, (212) 366-4212. Library of Congress CIP Data is available. ISBN 1–58131–247-4 Printed in the United States of America

The Coca-Cola Company

Table of Contents INTRODUCTION

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Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1 The Coca-Cola Company at a Glance . . . . . . . . . . . . . . . . . . . . . . . . . . .2

THE SCOOP

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History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 Business Description . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 Major Products & Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9 Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10

ORGANIZATION

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CEO’s Bio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11 Locations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12 Key Officers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12 Ownership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13 Subsidiaries/Major Divisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13 Key Competitors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14

VAULT NEWSWIRE

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OUR SURVEY SAYS

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GETTING HIRED

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Hiring Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25 Preparing for the Interview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26 Questions to Expect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27 Questions to Ask . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .28

ON THE JOB

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Job Descriptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31 A Day in the Life . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .33 Departments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .34 Career Path . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36

FINAL ANALYSIS

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RECOMMENDED READING

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The Coca-Cola Company

Introduction Overview You know you’re big when you regard water as your chief competitor. Or when your delivery trucks are cheered when they enter a country for the first time. Or, for that matter, when one of the world’s most elusive pieces of lore is your secret formula for a drink that is (mostly) fizzy sugar water. With $20 billion in annual revenue, The Coca-Cola Company has been extraordinarily successful, especially when one considers that the company peddles nonessential products. The company, of course, does not view its products as dispensable, but rather as the prime liquid choices you need to sustain your life. It views its growth in terms of “stomach share” rather than market share, and is intent on capturing the world’s thirst. This international company is an empire unto itself; Coca-Cola employees are fiercely loyal to their employer. Coke’s late CEO Roberto Goizueta never sold the 100 shares of company stock he owned when he fled Cuba. Legions of employees won’t be caught dead with a Pepsi in their hands (or even FritoLay products owned by Pepsi). Many of them exude a pride and enthusiasm for their employer that is remarkably untempered by either cynicism or a sense of individual gain.

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The Coca-Cola Company at a Glance Headquarters 1 Coca-Cola Plaza Atlanta, GA 30313 Phone: 404-676-2121 Fax: 404-676-6792

THE STATS Employer type: Public company Stock listing: NYSE (Symbol: KO) Employees: 38,000 (2001) Revenues: $20.1 billion (2001)

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UPPERS • • • •

All the Coke you can drink Kick-ass campus Unparalleled prestige Stock options for a historically lucrative company

DOWNERS • • • • •

Conservative atmosphere Can be difficult to advance Formal dress code Highly political company Pepsi products forbidden

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The Coca-Cola Company

The Scoop History The Real Thing was invented in 1886 by Atlanta pharmacist John S. Pemberton in the basement of his house. Pemberton’s bookkeeper, Frank Robinson, named the product after two of its ingredients: coca leaves and kola nuts. Robinson also came up with the distinctive script used for the drink’s name. In 1891, druggist Asa Candler bought the rights to the drink for $2,300. The next year, he formed the Coca-Cola Company. As a fountain drink, Coke spread quickly. By 1895, it was available in all U.S. states, and by 1898, it had entered Canada and Mexico. Although Coke was popular as a fountain drink, it was as a bottled drink that the beverage exploded like a can of soda that’s been shaken too long. Candler sold most U.S. bottling rights in 1899 for $1. Within 20 years, a regional bottling system included 1,000 bottlers. Bottling operations went up in Cuba, Panama, Puerto Rico, the Philippines and Guam in the early part of the century, and a manufacturing plant was established in France in 1920. When Candler sold the company to Atlanta banker Ernest Woodruff in 1916, the company was already worth $25 million. That year, the company also unveiled the famous contour bottle shape, based loosely on the coca bean. Woodruff’s son Robert was named president of the company in the early 1920s, and remained influential into the 1980s, when he was instrumental in the selection of Roberto Goizueta to run Coca-Cola. Robert Woodruff’s main feat was to spread the Coke gospel throughout the world. Although Coke’s relationship with the Olympics was probably most glaringly obvious in 1996, when the Coke-advertising-smeared Games were held in The Coca-Cola Company’s hometown of Atlanta, Coke’s history with the Olympics dates back to 1926, when Woodruff first signed on as a sponsor. Woodruff’s other pioneering efforts included the six-pack and automatic fountain dispensers. Coke has been responsible for a litany of successful marketing campaigns and slogans. From “The Pause that Refreshes” (1929) to “It’s the Real Thing” (1941), Coke’s slogans have infiltrated the language, while infectious commercials, ranging from the Mean Joe Greene commercial to “I’d like to teach the world to sing,” have infused the popular consciousness.

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But the history of Coke is also partially the history of its archrival, Pepsi. As Goizueta was fond of saying, if Pepsi did not exist, Coke would have to invent it. The “cola wars” officially began in 1898, when Pepsi-Cola was invented as a drink to cure dyspepsia. Pepsi was not a serious competitor until the 1930s, when the Loft candy store chain, upset that Coke would not sell syrup at a discount, carried the Pepsi brand. The cola wars intensified in the middle of World War II, when Coca-Cola surreptitiously attempted to get an English legal council to overrule a Canadian Supreme Court decision (which had ruled that name “Pepsi-Cola” was not a copyright infringement). Pepsi had to fly an attorney to London on an Army bomber, and the council upheld the Canadian decision. Although no one foresees a resolution to the cola wars, Coke has the clear upper hand for now, especially in overseas markets. Pepsi at one time had boxed up the Soviet and Eastern European market under exclusive deals, but with the fall of Communism, those markets have opened up to Coke, which now leads in those countries. Other traditionally Pepsi-led markets such as India and Venezuela are also now dominated by Coke. Even one of the most memorable business blunders of our time failed to halt the Coke juggernaut. In April 1985, alarmed by taste tests that showed that consumers actually preferred the flavor of Pepsi to Coke, the company announced it was changing its almost century-old formula. New Coke bombed, and horrified customers stockpiled cases of the original formula, while Pepsi gloated and watched its market share rise. Shamed by their hubris, Coke officials reintroduced its original formula as Coca-Cola Classic a few months later. Coke’s market share has soared since. In fact, Pepsi’s market share is now actually lower than at the time of the formula fiasco.

Business Description Big red The Coca-Cola Company makes about 300 brands of drinks and sells its products in 200 countries. Flagship brand Coca-Cola is the world’s bestselling soft drink, and the most recognized trademark on the planet. Other “core” brands include Sprite, Fanta and Diet Coke. As for non-core brands, the world traveler may recognize such Coca-Cola products such as Delaware Punch (Mexico), Kuat (Brazil), Nordic Mist (Chile), Gold Spot (Nigeria), Play (South Africa), Lilt (U.K.), Smart (China), Thums Up (India), or Georgia Coffee (Japan). Those unfamiliar with these brands may sample them at the 4

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free-flowing fountains in the Coca-Cola museum in Atlanta. In the United States, sales of Coca-Cola products accounted for 43.7% of the nation’s $61.7 billion carbonated beverage industry in 2001, with Coca-Cola Classic capturing a healthy 19.9% of that market. For its part, archrival PepsiCo (known around Atlanta as “The ‘P’ company”) has a 31.6% market share.

Shrimp farming is nothing. Shareholder value is everything. Over the past two decades, Coca-Cola has witnessed a fundamental shift in its business strategy. In the early 1980s, the company dabbled in other areas for a while, acquiring Columbia Pictures in 1982 and even entering the shrimp farming business. Coke has since divested itself of such distractions (selling Columbia Pictures to Sony in 1989) and today is purely a beverage purveyor. The shift is largely the product of the vision of former CEO Robert Goizueta, whose intense focus on maximizing shareholder value steered the company away from diversification and also gave it an outstanding record on Wall Street. As of March 2002, Coke’s stock had averaged returns of 30% over an 11-year period, compared to 17% for the S&P 500. In November 2001, Fortune magazine listed the Coca-Cola Company as America’s 13th greatest “wealth creator,” (falling from second in 1998) measured in terms of economic value added and market value added.

As economies tumble, tap water tastes better Coke derives a full 76 percent of its profits from overseas operations. Thus, given worldwide economic turmoil, industry observers were hardly surprised when Coke announced that its profits for the third quarter 1998 had fallen by 13 percent compared to third quarter 1997. In a statement, then-chairman M. Douglas Ivester pointed out: “With a business system operating in nearly 200 countries, we are not immune to the economic difficulties existing in many markets around the world.” Company 3Q sales figures bore out Mr. Ivester’s observation. In Japan, which provides Coke with 20% of its worldwide profits, sales stayed flat, while in troubled Indonesia case volume (a measure of sales) took a 21% plunge. In Russia, a particular focus of marketing efforts and investment, sales tumbled by 20% from third quarter 1997, and in Germany, the company bemoaned bad weather and “continued structural change” for a 9% dip in sales. As for unsteady Brazil, Coke found itself losing out to cut-rate local brands. One Brazilian told The New York Times: “Coke is much better, but too expensive.”

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By the end of 2001, new leadership and changing conditions had restored some of the bubble to Coke’s outlook. Worldwide case sales had climbed 12% between 1999 and 2001, with formerly troubled Indonesia reporting a 32% increase in 2000 alone. The other Asian markets also responded well to the company under Doug Daft, showing the value of his experience in the region. If early signs of recovery and Doug Daft’s strong leadership haven’t kept Coke employees and shareholders from despair, Warren Buffett’s continued support sure has. The Nebraskan billionaire, whose Berkshire Hathaway controls about 200 million shares of Coca-Cola, doesn’t plan to start dumping Coke stock anytime soon. “In given countries at given times there will be hiccups,” Buffett told The New York Times, “but that doesn’t take your eye off where you want to be 10 or 15 years from now, which is to have everybody drinking nothing but Coke.”

Coke is it – all over Coke’s marketing strategy focuses on what it calls the “three P’s”: Preference, Pervasiveness, and the Price/Value relationship of company brands. The operative term here is “pervasiveness.” In 1927, Coke’s slogan was “Around the Corner from Everywhere” – the current strategy could well be called “Everywhere.” First, with a strategy that reflects the tobacco industry’s “get ‘em while they’re young” approach, Coke is flooding American public schools with its products. In addition to signing exclusive contracts with school systems, the company has boosted its presence on campus by building softball fields, establishing teacher awards at K-12 schools and offering scholarships and internships at state universities. Second, there’s sports. Coke’s strenuous marketing efforts at the 1996 Summer Olympics left a bad taste in the world’s collective mouth. But that didn’t stop the company from entering into a global marketing partnership with NASCAR racing, or from setting up an association with World Cup Soccer with a campaign called “Eat Football, Sleep Football, Drink CocaCola.” Finally, there’s, well, everywhere else. The company aims to put vending machines in tanning salons, hair salons, dance studios – basically everywhere anyone could conceivably drink. The company claimed to have over 2.4 million coolers, dispensers and vending machines in operation. Coke is also trying to outmuscle competitors with tactics such as offering incentives to 6

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convenience store owners and movie theater concessionaires for giving it extra display space (movie theater audiences, as temporary captives, are an especially appealing target for Coke).

A watery goal Lest you think Coke is wedded to carbonation, think again. In February 1999, Coke rolled out its first line of bottled spring water, Dasani. The introduction of Coke’s new bottled water line was supposed to be secret, but fittingly, news of its debut was “leaked.” (In 1998 Pepsi introduced its own brand of bottled water in the United States: Aquafina.) Coke also sells a bottled water called BonAqua in several foreign countries. Coke is thought to have resisted offering its own brand of bottled water because the size of the water market is relatively small compared to the soft drink market. According to analysts, the U.S. bottled water market tripled in size over 10 years to $5.7 billion in 2000 (a mere fraction of the $68 billion soft drink market), becoming now big enough to tempt Coke. Other considerations include profit margins – simply not as high in the bottled water market – and the possibility that water sales may cannibalize high margin soft drink sales. Nonetheless, Coke’s entry into the bottled water market has been strong; Dasani was the No. 2 brand of bottled water in the U.S. in 2001, holding 8.6% of the market.

Coke versus the competition Naturally, the competition hasn’t taken such aggressive marketing and business strategies lying down. Au contraire, Coke’s competitors, especially Pepsi, have frequently and vociferously protested Big Red’s drive to get bigger, notably by petitioning antitrust regulators around the world. In the United States, Pepsi filed a suit in June 1998 claiming that Coke’s practice of muscling competition out of deals with independent distributors such as movie theaters and restaurants violated antitrust law. Coke quickly moved to dismiss. The case is still under appeal In Europe, a particularly stinging setback came in September 1998, when French antitrust regulators rejected Coke’s proposed acquisition of the quirky Orangina Brand, held by French-based Pernod-Ricard S.A. The deal had been challenged by, you guessed it, Pepsi, whose products are distributed by Orangina throughout France. For its part, Coke had gone to great lengths to immunize the deal from antitrust issues, even to the point of signing an accord guaranteeing Orangina workers both their jobs and a rather continental 35hour workweek. However, with a 50% share of the French soft drink market, Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more.

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Coke’s position was dubious, especially given the tough antitrust climate that characterizes Europe these days. Coke has also faced antitrust challenges in South America. For example, the company scored a victory in Venezuela when it managed to woo the country’s largest bottler away from Pepsi in 1996. In December of the same year, however, Venezuelan authorities slapped Coke with a $2 million fine for violating laws that “prohibit concentrations restrictive to free competition.” Other suits include a 1998 antitrust investigation in Italy and a 2000 suit against bottling and distribution operations in Mexico. The Mexican courts resolved the case in August 2002 with restrictions but no fines.

Bottling and consolidation The Coca-Cola Company is increasingly a vertically integrated organization. In 1986 Coke bought two large ownership groups that owned bottling operations, and combined them with its own bottlers to create Coca-Cola Enterprises (CCE), a separate, publicly traded company, in which the CocaCola Company retains about 45 percent ownership. CCE has furthered Coke’s consolidation through a string of acquisitions – in October 1998, CCE announced letters of intent to acquire six U.S. bottlers for $770 million. The $5 billion spending plan, however, has meant taking on considerable debt, a fact that alarmed investors, especially since no increased positive cash flow was projected until 1999. CCE responded by taking on more debt to repurchase millions of shares. One consultant told The New York Times: “To me, that’s not the way to use shareholder capital, and it’s capital they don’t have, because they had to borrow to do it,” though another analyst opined to the Times that the repurchase was “fabulous.” Abroad, Coke has also been restructuring its global bottling system by consolidating hundreds of small bottlers into a group of “anchor” bottlers, well-capitalized companies that work closely with Coca-Cola. For example, following the fall of the Iron Curtain in 1989, Coke quickly set up operations in eastern Germany. As business improved, Coke merged its eastern German bottlers with three other bottlers in southwest Germany to form an anchor.

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The Coca-Cola Company The Scoop

Major Products & Services Coca-Cola: The world’s most valuable brand (estimated value of about $69.6 billion in 2002) is also far-and-away the world’s best selling soft drink. Diet Coke/Coke Light: The world’s third best-selling soft drink, behind Coca-Cola and Pepsi-Cola. Introduced in 1982, Diet Coke captured almost 10 percent of the U.S. soft drink market within a few years. The product is known as Coke Light in many markets abroad. Fanta: States.

The company’s second largest-selling brand outside the United

Sprite: Introduced in 1961, Sprite has overtaken Cadbury Schweppes’ 7-Up as the world’s most popular lemon-lime soft drink. In the United States, Sprite sales grew by 13% in 1997. Industry analysts attributed the drink’s success to high-profile youth-targeted ads that groom the soft drink as a cutting-edge yet quirky beverage. Sales of Sprite have leveled off, with 668.1 million cases sold in 2001, a 1.5% gain over 2000. Minute Maid juices: The majority of Coke’s juices are sold in the U.S. and Canada. The brand is the world’s leader in juice and juice drinks. Barq’s Root Beer: Barq’s was founded by New Orleanian Edward Barq in 1898. After decades of producing root beer to accompany crawfish and fried oyster po-boys for the good citizens of New Orleans, Barq’s Inc. was acquired in 1994 by Coke. Distribution skyrocketed from 8,000 outlets to 100,000 outlets, and Barq’s is now the best selling root beer in the country. POWERaDE: Introduced by Coke in 1990 to enter the growing sports drink category, POWERaDE is now offered in 20 markets worldwide. Fruitopia: Coke’s belated response to the sudden ascendance of Snapple. Another one of those mega-corporate products dressed up to look homegrown, the drink was introduced in March 1994. Because of Coke’s money and muscle (Fruitopia stands in movie theaters, widespread Fruitopia vending machines, etc.), Fruitopia has been a moderate success. Coke has gradually upped its ante on this product, increasing its marketing budget each year, from $10.2 million in 1995 to $12 million in 1996 to an estimated $15 to $20 million in 1997.

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Compensation Pay Assistant Brand Manager, Financial Analyst: $60,000 to $70,000 with a $10,000 to $15,000 bonus and 10 percent year-end bonus Although pay at Coke isn’t as high as at other top-of-the-line consumer goods companies such as P&G and General Mills, MBAs are eligible for stock options and a bonus upon their first promotion, which, insiders say, usually happens in a year or two (some high-flying MBAs get options immediately). With the great performance of KO stock, one recent MBA hire notes sagely, the options are “a very lucrative way to garner personal wealth.”

Perks • Discounted lunches • Company credit union • Health club on campus • Stock purchase plans • Drink pop till you drop • Special tickets at most concerts

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The Coca-Cola Company

Organization The Coca-Cola Company is divided into four main soft drink business sectors: Americas; Asia; Europe, Eurasia and Middle East; and Coca-Cola Ventures. Coca-Cola Ventures, which includes the Minute Maid Company, manages the company’s non-carbonated beverage business, arranges strategic partnerships and identifies new opportunities for the corporation. The company also maintains the Africa Group, a separate unit devoted to that region.

CEO’s Bio Coke Head: Douglas N. Daft The election of Douglas Daft as CEO broke the company’s chain of inheritance; Robert Woodruff groomed the late Roberto Goizueta to replace him, and Goizueta in turn made M. Douglas Ivester his protégé. Aggressive competitor Ivester apparently hoped to insert Jack Stahl as CEO and his successor, but the position went to cheerful Daft. Stahl resigned as president shortly thereafter when Daft announced a corporate reorganization. Daft, the eleventh CEO of Coca-Cola, rose through the corporate ranks, joining the company in 1969 as a planning officer in his native Sydney, Australia. He entered the executive ranks in 1984 as president of Coke’s Central Pacific Division and held several regional executive positions covering the Middle and Far East. He became President and Chief Operating Officer of the Coca-Cola Company in 1999. He replaced M. Douglas Ivester as CEO in February 2000; Ivester had held the position for a mere two years before leaving the company. Since becoming CEO, Daft has worked to correct the missteps of his predecessor and improve corporate efficiency. Among his efforts are a series of changes in key executive positions, a shift to a less centralized structure and a layoff of 20 percent of Coke’s workforce. He has also formed a number of partnerships with such food giants as Procter & Gamble (for juice drinks) and Nestlé (for tea and coffee), expanding the company’s line to more than 300 brands in some 200 countries. The product expansion is not immediately apparent to consumers in any one market (worldwide rollouts of Diet Coke with Lemon and Vanilla Coke in 2002 notwithstanding), because Daft has seen to it that Coke products are Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more.

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The Coca-Cola Company Organization

regional. Products like Georgia brand ready-to-drink coffee and Marocha Green Tea are targeted at Japan, while Fioravanti fruit-flavored sodas sell best in Ecuador and Play is popular in South Africa. Daft has put product development power into the hands of regional managers. Daft, 58, holds a BS in mathematics from the University of New England and earned his MBA from the University of New South Wales. He serves on the boards of 11 different companies and foundations, including SunTrust Banks and the Boys & Girls Clubs of America; conspiracy theorists will be interested to know that he is also a member of the Trilateral Commission.

Locations Atlanta, GA (world headquarters) Houston, TX (headquarters of the Minute Maid Company) Facilities in all 50 states and worldwide

Key Officers CEO & Chairman: Douglas N. Daft Chief Marketing Officer: Stephen C. Jones President, Americas Group: Jeffrey T. Dunn President, Africa Group: Alexander B. Cummings Jr. President, Asia Group: Mary E. Minnick President, Europe, Eurasia and Middle East Group: A. R. C. “Sandy” Allan President, Coca-Cola Ventures: Steven J. Heyer CFO: Gary P. Fayard General Counsel: Deval L. Patrick

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Ownership The Coca-Cola Company is publicly traded on the New York Stock Exchange. Its ticker symbol is KO. Warren Buffett’s Berkshire Hathaway is the company’s largest shareholder, with 8 percent of the stock. One share of KO stock purchased in 1919 for $40 would have been worth more than $216,000 by 2001.

Subsidiaries/Major Divisions Minute Maid Company: Acquired by Coca-Cola in 1960. Formerly CocaCola Foods, this division was renamed The Minute Maid Company in 1996 to better reflect its standing as the world’s leading brand of juice and juice drinks. This division took major steps toward international expansion in 1996, forming an alliance with European food conglomerate Groupe Danone to focus on consumers in Europe and Latin America, and forming another partnership with Brazil’s Sucocitrico Cutrale Ltda. Coca-Cola Enterprises: This company is a separate entity from Coca-Cola, though it is 44 percent owned by Coke. It was formed in 1986, when Coke bought its two largest bottling concerns, made them a corporation, and took them public. CCE had net operating revenues of $15.7 billion in 2001. Several of the key managers of the Coca-Cola Company sit on CCE’s board. The company controls about 80 percent of the Coke bottling in the U.S., and also bottles in Great Britain, France, the Netherlands, and Belgium. Coca-Cola Amatil: Like Coca-Cola Enterprises, only based in Australia. In 1998, Coca-Cola Amatil spun off its European business, which became CocaCola Beverages Ltd. Coca-Cola currently controls close to 44 percent of the nearly $62 billion North American carbonated beverages market, and constantly seeks to gain a full 50 percent. Although Coke’s national market share is up from 41 percent in 1990, most consider the domestic goal a reach. Where Coke is really king is outside the U.S.: 76 percent of Coke’s profit comes from outside North America. The company controls a 48 percent market share of the international soft drink market; Pepsi can claim only 17 percent. With its Minute Maid brands leading the way, Coca-Cola is also the world’s largest distributor of juice drinks.

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The Coca-Cola Company Organization

Key Competitors Pepsi-Cola Company: Coca-Cola’s chief competitor, with nearly 32 percent of the national market. In terms of revenues, Pepsi’s $26.9 billion in sales in 2001 in fact topped Coca-Cola’s $20 billion. However, half of Pepsi’s total sales come from Frito-Lay, the leading producer of corn and potato chips such as Lays and Doritos. Pepsi also has a joint venture with Lipton. In contrast to Coke’s primarily international distribution, Pepsi generates 70 percent of its revenue in the U.S. In October 1998, Pepsi introduced Pepsi One, a new one-calorie soft drink that is sweetened through a mix of aspartame and AceX, a sweetener newly approved by the FDA, for which it has high hopes. Quaker Oats Company: Quaker makes Gatorade sports drinks, which compete with Coke’s POWERaDE (Notice the name similarity?). Quaker (perhaps better known for its oatmeal and Aunt Jemima products) recently tried to move more strongly into the beverage industry by buying Snapple for $1.7 billion in 1995. But the move turned out to be a fiasco – Quaker took a reported $1.4 billion loss when it sold Snapple to Triarc Companies in 1997. Triarc Companies: This New York-based company has subsidiaries ranging from restaurants (Arby’s) to propane distribution. It produces RC Cola, a small competitor of Pepsi and Coke. More importantly, it took Snapple off of the Quaker Oats Company’s hands for a rock bottom $300 million in 1997. Sales for the group in 1997 were $794.8 million. The story has changed for Triarc since that transaction, though: the group sold Snapple to Cadbury Schweppes in late 2000, and Triarc’s sales totaled just $92.3 million in 2001. Triarc officials have also joined Pepsi in getting more aggressive about challenging Coca-Cola’s allegedly anti-competitive behavior. Cadbury Schweppes: In 2001 U.K.-based Cadbury Schweppes’ global beverage business brought in $3.4 billion in 2001,or 40 percent of its total revenues. The group, producer of Schweppes and Canada Dry mixers, acquired a partial interest in Dr. Pepper/7-Up in 1986, and in 1995 bought the rest of the company, thereby acquiring Sunkist, A&W Root Beer and Dr. Pepper. While Dr. Pepper has been a strong performer, 7-Up has faltered lately, slipping from the nation’s fourth most popular drink to the eighth – much to the chagrin of Cadbury.

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The Coca-Cola Company

Vault Newswire October 2002: Pepsi thinks inside the box Coca-Cola files a civil suit against PepsiCo, alleging that Pepsi infringed on Coke’s patented technology for more efficiently mixing fountain drinks. The bag-in-box method, developed by Coke, reduces syrup waste and the need for operator attention.

June 2002: Negotiating for water rights Coca-Cola acquires 51% equity in French water merchant Danone, producer of Dannon and Sparkletts brand bottled water. Danone’s water cooler delivery service and Evian brand were not part of the arrangement, nor was Coke’s Dasani brand involved.

May 2002: Mixing with the competition Coke acquires the various Seagram mixers, including its popular ginger ale, tonic water and seltzer, from Pernod Ricard. Terms of the agreement were not disclosed.

January 2002: Branching out Coca-Cola Nestlé Refreshments, a joint venture between the two companies, becomes an independent entity answerable to a joint committee. The new company, Beverage Partners Worldwide, will continue to produce and market ready-to-drink tea, coffee and herbal beverages.

December 2001: Coke acquires and kills Odwalla Beverage producer Odwalla becomes part of the Coca-Cola family when Coke purchases more than 95% of the company’s outstanding stock in a cash tender offer. The company’s beverages are no longer sold.

May 2001: Coke gets Mad The Coca-Cola Company acquires Greenwich, Conn.-based drink maker Mad River Traders. Mad River primarily produces teas, juices and carbonated beverages aimed at U.S. consumers leading active lifestyles.

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November 2000: Coke settles discrimination suit Coca-Cola agrees to pay $192.5 million to settle a 1999 racial discrimination suit by black workers. The settlement includes $113 million in cash, $43.5 million in salary adjustments and $36 million to establish an oversight program. The company also agreed to pay $20 million in attorneys’ fees and will donate $50 million to its own community program foundation.

March 2000: Coke trims operations The company announces numerous organizational changes, including several executive position changes and a 20% workforce layoff. Jack Stahl, once expected to succeed former CEO Ivester, resigns.

March 2000: Less Coke in our schools Coke scales back its aggressive marketing campaigns in schools. The new program calls for non-exclusive sales agreements, non-commercial signage on vending machines, a broader array of beverages including juice-based and water drinks, closer compliance with school administrators’ guidelines and other factors.

February 2000: New head for Big Red Douglas N. Daft becomes chairman and CEO of The Coca-Cola Company, replacing M. Douglas Ivester. Daft begins to institute a number of changes to the management and operational structure of the company.

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Our Survey Says Coke nation At The Coca-Cola Company, employees are fervently attached to their employer. “Everyone is very loyal to the company,” one employee says. “They are very proud of all of the accomplishments achieved there.” “It is a wonderful company,” says another insider, a 15-year Coke veteran. “There is a certain amount of pride many of us take knowing that we have helped get us to this point.” Indeed, Coke is the very lifeblood of the company, and its employees shun the sainted liquid at their peril. Says one former financial auditor who describes the company’s culture as “quite strong: people here are expected to drink Coke.” But it’s not just a matter of red-and-white pom-poms and megaphones at Coke. The “intense” loyalty meshes with what is invariably described as a “conservative” atmosphere, an ambience linked to the sheer size of the company. “Coke has a very corporate, conservative culture,” says one insider. “People are very nice here, but it’s definitely a reserved atmosphere.” “The company’s culture is aggressive but can seem slow if you don’t see the big picture – steering a tanker is not like steering a 20-foot sailboat,” reports one insider. “Coke is a large company and has a large company corporate culture. The company is very proud of its heritage and integrity, and is conservative by nature,” another says. This mix of “rah-rah” cheerleading and “stuffy reserve” leads to somewhat cryptic comments from insiders like: “Coke people tend to be professional in dress and nature, and tend toward the conservative in behavior. This is not to say enthusiasm is not appreciated. In many cases, it is required.”

The mother ship “There is very tight security before you even get into the area, and it continues throughout the complex,” says one insider of the corporate headquarters. What are company officials concerned about? Maybe that people will figure out just how self-contained and complete the complex is, or that an interloper will somehow manage to snatch a free Sprite. “The complex basically has all you need right here,” says one insider, “There’s a cafeteria, a gift shop, a travel agency, and a medical services office all in the complex. People don’t tend to leave to go out to lunch because the cafeteria here is so big and inexpensive.” The headquarters of Coca-Cola, located in downtown Atlanta, also houses a credit union office, a bank, a health club, a dry cleaning service, a gift shop, and its very own branch of the U.S. Post Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more.

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Office. “The place is beautiful,” says one insider, “The first time I visited, I knew I had to work here.” “The buildings are very well maintained and very clean. They changed the carpet in the main lobby area about five times while I was there,” says a former employee who worked downtown for less than two years. About 6,000 to 7,000 employees work downtown. Of the attractions at headquarters, the cafeteria seems to hold a special place in employees’ hearts. “I have been told by consultants and contractors who have worked all over Atlanta that the cafeteria here is the best by far,” says one. “The cafeteria is the best I have ever eaten at, food and prices,” says another insider. “Since drinks are free, you can eat lunch there every day under $3.00. And for that you get an entrée, two vegetables, and dessert.” There’s also the HealthWorks POWERaDE Athletic Club. The company actually has a “Health Management Department” staffed with “Health and Fitness Specialists” whose job it is to reduce health care costs and encourage healthy habits in the company. The company subsidizes all of the services at Coca-Cola’s home campus.

KO OK The Coca-Cola Company likes to say that “Coca-Cola” is the second-best known expression in the world, next to “OK.” No wonder “The Coca-Cola Company” stands out on a resume. Add in the ubiquity of the product and the outstanding performance of “KO” stock in the last few decades, and you’ve got a recipe for super-high prestige – especially in finance and marketing. “The company’s reputation got me into a great business school,” says one former employee. “I can tell you that Coca-Cola is the best corporation in America to work for,” says one insider. “Coke has a great reputation everywhere in almost every area they are in. There is quality in everything they do, and they work very hard at maintaining that quality,” says another.

Pay is good… Insiders say compensation at Big Red is good, but not stellar. “The pay is in line with that of other blue chips – which means significantly higher than small companies – with a special difference that people get stock options at Coca-Cola at much lower levels than in most other blue chips,” one R&D employee says. Coke also offers bonuses for more senior employees. Terms used by insiders to describe the pay scale at Coca-Cola include “competitive,” “generous,” and “varies a great deal, depending on your education and experience.”

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...but the benefits are great Insiders describe Coke’s benefits package in glowing terms; “one of the most comprehensive around,” “the best around,” “excellent,” and “wonderful” are among the comments Vault heard. Besides the benefits of the corporate campus, employees have the option to finance their car with the help of the company, have several healthcare plans to choose from, have a tuition reimbursement a stock-purchase, and enjoy a 401(k) plan that has made many a Coke employee’s retirement a golden one. There are also “days off at Six Flags Atlanta,” “free ice-skating,” “Thanksgiving Dinner,” and “available concert tickets in the Coca-Cola section – the front – at almost any major venue in the country.” And of course, there is the “all-you-can-drink” aspect of working at Coke, reportedly distributed through coolers, fountains, and vending machines rigged so all you have to do is push the button and the Coke comes out. “You never need pay for a soft drink again between 9 a.m. and 5 p.m,” says one employee. “You can OD on the free Cokes, Sprites, and Frescas.” Perhaps the best perk at Coke is the stock options. Says one employee: “In the long run, total compensation is probably higher than it is elsewhere, but you need to be patient – options can have long vesting periods, and bonus only comes in at a given threshold that entry-level employees are unlikely to obtain to very soon.” One finance MBA is less reserved: “They start out small and they fool you. I think people fail to realize how potentially lucrative this place is. By the time you’re 55, you’re sitting on $10 million, and it’s growing exponentially. There are secretaries floating around here who are millionaires.” Another exuberant insider adds: “There’s no place like it, save investment banks. People talk about Microsoft and the stock options. But that’s nothing compared to Coke.”

And we work to earn it Workdays vary from department to department but are generally on the long side, although not nearly as long as consulting or investment-banking hours. “People tend to arrive early and work late,” says one insider at corporate headquarters. Some employees have flexible hours, but others are “9 to 5 with a 30 minute lunch.” Flex-time is “at the discretion of your immediate supervisor.” For those on the upward track, expect long days: “The reality is that I don’t know many people working less than 9 to 10 hours a day,” says one employee. “Hours can vary from a 40-hour work week to a 60 or 70 hour week, which many of us seem to be working on a regular basis,” another says. “If you are on salary, you work until the job is done, however long that takes.”

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“Standard workweek at corporate is 37.5 hours officially. Unofficially it’s usually 45 to 50 a week. More if you really want to climb,” reports an Atlanta headquarters employee. However, one recent MBA hire tells Vault: “People here are not so unreasonable as to not understand the need for a life. I never work weekends.”

Button up, Johnny! Although dress varies a bit from department to department, Coke is generally described as having a “formal” dress code.” Marketing and some of your more hip divisions will sometimes have casual Fridays, but the Executive and Technical Engineering divisions have strict suit-and-tie-only dress codes,” says one insider. “People are expected to wear suits or business attire every day,” says an employee at corporate headquarters. “Most men wear dark suits, women are expected to wear skirt suits,” says another. One employee even reports that “there had been casual days in the past, but no longer.” As one Coke insider sums up: “The dress code here is business attire. No casual days, as we are a professional organization that must always look that way. Casual day is not in the corporate dictionary.”

Image is everything Despite Coke’s anti-authoritarian, ultra-successful “Image is nothing, Thirst is everything, Obey your thirst,” ad campaign for Sprite, Coke is a company that employees describe as extremely “strict” and “image-conscious,” as exemplified by the “tight security” at their corporate headquarters and formal dress code. “It is an ‘appearance is everything’ place to work,” says one insider. “There are certain ways of doing things that most people are expected to adhere to,” says another. “Since visitors from all over the world are there almost all the time, Coke employees are always very conscious of how they present themselves,” reports a former computer contractor. “That is not to say they are worried about it and show that worry, but in a subtle way they do understand that the face they show is the face of Coke.”

Coke United Nations Coke is not known for its outstanding record on diversity efforts, but if employees in Atlanta are to be believed, corporate headquarters is teaching the world to sing in perfect harmony. “One of the things I especially liked was the many languages you could hear spoken in the cafeteria and hallways of the corporate offices. It is truly an international company,” says one insider. “Coke hires people of all different races, religions, and cultures. It 20

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is a very diverse company,” says another. “Going to lunch sometimes gives me the feel of what the cafeteria at the United Nations must be like,” adds another insider. And one satisfied employee volunteers: “I work in a very diverse and comfortable environment where everyone’s points of view and opinions are important.” Insiders point out that Coke’s revered former CEO, Roberto Goizueta, was a Cuban immigrant, with what one employee describes as “a very heavy accent.”

Mum’s the word Employees tend to be less effusive when discussing the status of women at headquarters. Although no one mentions any special programs or hardhitting recruiting efforts, female employees tell Vault they are treated “fairly,” with “good opportunities for advancement.” “There are many women in management,” says one former employee. “People are treated based on how they perform rather than on their sex or race.” Adds one senior manager, “My director is female, leading a 600-person group, and five of my peers are female, four are male.” In addition, two women sit on Coke’s 14-member board.

Hard to get in, even harder to get up As one would expect, it can be hard to crack the Coca-Cola nut. “In all departments across the board, employment is extremely competitive and jobs are very hard to secure,” says one employee. “They are a very hard company to get on board with, and the benefits and pay show it,” says another. “Entry level positions are pretty rare in the Coca-Cola Company,” one employee reports. “Most associates, other than administrative and support staff, have advanced degrees and several years of business experience before being considered for positions here.” Says one insider: “The depth of talent around here is awe-inspiring.” But insiders say that getting hired is actually the easiest part if you plan to rise to the frothy top of the firm. “Coke seems to hire the best, and it is against the best that you will compete for promotion and opportunities,” says one insider. “One downer about Coke is that everyone here is so good it really takes a lot to stand out,” says another. While high-quality competition would seem to be a fact of life at most top-tier firms, at Coke, some employees report something closer to a systemic stifling of career ambitions. Former employees often indicate the difficulty of advancement as a reason they left. “I really enjoyed working at Coke but found that I was stifled from an overall career path. I was looking for more of an opportunity to work harder and Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more.

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climb faster,” says one former employee. “There weren’t a great deal of advancement opportunities,” offers another former Coke staffer, adding: “I felt trapped; there were a lot of lateral moves, but no vertical ones.” And from a former finance employee: “It’s easier to be hired by Coke than to be promoted. They tend to hire lots of senior people from outside instead of hiring from within.” Moreover, many insiders say that advancement at Coke, more so than other large companies, depends a lot on who you know. “Coke is a very political place,” says one former employee. “You will do well if you know the right people and make the right contacts and ‘suck up’ to the right people. One of the reasons I am not there now is that I would not suck up to certain people.” A Coke business development insider sums it up: “This is a club. It is an exclusive club. And you’ve got to know somebody not only to get in, but to move up.”

Coke nation, not Coke family Coke workers give generally positive, albeit somewhat lukewarm, descriptions of how higher-ups treat the hoi polloi. “They tend to treat their employees well,” says one insider. Another agrees “People are generally treated well.” As far as socializing among colleagues of the same level, it’s “pretty good,” reports one recent MBA hire. However, “we do most of it on our own,” say insiders. “The company doesn’t lend a guiding parental hand.”

Highly satisfied Overall, most Coke employees tell Vault they are “extremely satisfied” with their careers at Coca-Cola. “I have worked here almost seven years and I enjoy it very much,” says one representative insider. Another adds: “I have worked at Coca-Cola for about 25 years…Obviously I have mostly good things to say about the company or I wouldn’t have worked here for all these years.” “I have worked for the Coca-Cola company for two years and have been pleased with my experience,” says yet another. And finally: “I have been with The Coca-Cola Company since 1982, and it is a wonderful company.” Yes, Coke has a lot of long-term employees. Much of the reason for the high company satisfaction is that employees have grown fat on KO stock – and because they feel they’ve helped make the company one of the strongest in the world. “I don’t only like working here, I am also very proud of being part of such a great company,” says one engineering development employee. It’s enough to make some Coke

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employees get all sentimental, even sappy: “It has been a rewarding, educational, and fulfilling experience,” says one. “I could go on and tell you 100 more times that Coke is a great company to work for… I truly believe Coke wants good things to happen to its employees.”

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Getting Hired Hiring Process Coca-Cola’s hiring varies by department (finance vs. marketing) and also division. Some departments within certain divisions, such as brand management in the Americas Group, use summer internships for MBAs as a primary hiring tool, but others, such as finance, have no formal internship program. “Coca-Cola recruits in every possible way, depending on the timing, the department and the school: on campus, write-ins, headhunters, etc.,” reports one insider. Each department has different “core schools” at which they recruit. Here’s a breakdown of the Marketing and Finance departments: For Brand Management, Coca-Cola hires from seven “core business schools:” Harvard, Kellogg, Fuqua, Clark-Atlanta, Emory, the University of Michigan, and Wharton. Recruiters estimate they look at about 1,000 applicants overall for this department, 300 of whom go through the recruiting process. For the Marketing Program Development internship, the company recruits from Andersen, Fuqua and Kellogg. For the finance department, Coke recruits from five schools: Emory, Kellogg, the Thunderbird Campus of the American Graduate School of International Management in Arizona, USC, and Wharton. Coke screens about 200 applicants by phone or on-campus interviews, brings about 60 on campus for a second round, and hires about 15 or 20 of these. Many people who work for Coke get their start as outside contractors or consultants, insiders tell us. If you’re dead set on working for the company – and you might be, considering the potential payoff – one option is to start with a company such as Ernst & Young (which does external auditing for Coke) or King & Spalding (Coke’s outside legal counsel). For those going into engineering, Coke is looking for either bachelor’s or master’s candidates in mechanical or electrical engineering (although a few hires have backgrounds in industrial engineering). Masters and PhD-level candidates are also hired into what the company dubs its “science” positions, which include product testing and research and development. For its brand and finance positions, Coca-Cola looks for MBAs who already have several years of experience. An applicant’s experience level helps determine in what position he or she starts. For example, an employee

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The Coca-Cola Company Getting Hired

entering the finance department with two to three years experience will join Coke as a senior financial analyst, and one with four to five years will join at the next step up, as a principal financial analyst. As an international company Coca-Cola also is excited to find candidates with foreign language skills, particularly Russian, Chinese, French, and Spanish. Coca-Cola has a fax line devoted to employment applicants, 404-515-8221. Send to Attn: RESUMIX. The phone number for global staffing is: 404-676-5678 Cover letters and resumes can also be sent via conventional mail to: The Coca-Cola Company P.O. Drawer 1734 Atlanta, GA 30301 Attn: USA 635

Preparing for the Interview Some basic tips on interviewing with Coke: • First, the proper company name is The Coca-Cola Company. important that you use it properly,” says one employee.

“It is

• Second, because T.C.C.C. (as it is sometimes called) places a great deal of emphasis on loyalty, it is important that you sell your enthusiasm for the company. “You must convey to your interviewer that you are genuinely interested in working at Coke, and that nothing else matters at that time,” says one employee. To illustrate the point, we include the following story, as recounted to The New York Times by Warren Buffett. Buffett recalls that he once took his grandson to eat at an Omaha pizza parlor where he was surprised to discover that Pepsi, not Coke was served. “I mentioned it to Atlanta,” Buffett says, “and World War III broke out. They’re now serving Coke.” • Finally, subtly dropping a concern for “shareholder value” won’t hurt. Aside from winning market share, boosting shareholder value is what The Coca-Cola Company is all about. Note that more than almost every other American company, Coca-Cola subscribes to and has benefited from the idea of economic value added (EVA). A nineties buzzword, EVA refers to

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annual operating profit minus a special charge for the cost of capital. The concept is designed to do away with misleading “accounting profits” based on equity capital and other measures of financial health that Fortune characterized as “playing volleyball with the net down.” Roberto Goizueta was a firm believer in EVA, and the concept pervades the company’s financial approach. For those going through the on-campus recruiting process, there are a couple of on-campus interviews, and then an all-day session in Atlanta. “The process is relatively intense, but not as bad as some other companies,” reports one employee.

Questions to Expect 1. Why do you want to work for The Coca-Cola Company? This is the bottom line, Exhibit A, the heart of the matter, and whatever other cliché you can think of. “We want to know for certain why the individual is jazzed about our company and industry,” stresses a recent hire. 2. What would the other members of your business school team have to say about you? You’re dedicated, efficient and smart. 3. GMAT question: Insiders report that Coca-Cola will occasionally throw out questions similar to GMAT questions to test analytical ability. Usually nothing as intense as brainteasers or guesstimates at I-banking or high-tech interviews, just fairly simple questions to make sure you’re not a dullard. Don’t be surprised by this, and don’t get all flustered: if you get one of these, it won’t be all that difficult. 4. Give me an example of what you consider a bad marketing campaign, and why you think it was unsuccessful. Or: If you want to increase market share and brand recognition among the 18-35 demographic group in the U.S., what kinds of strategy would you propose? For marketing employees, a recent marketing hire says, “Coke will give a market situation or ask for an example of a good or bad marketing campaign.”

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The Coca-Cola Company Getting Hired

5. Tell me about what you consider your most satisfying accomplishment to date. Remember what Coke looks for in employees: bright, talented individuals who are loyal. Choose something that shows how you helped a team or committee or some larger group, and then talk about how helping the larger group brought you satisfaction. 6. How would you feel about work overseas or elsewhere in the U.S. outside of Atlanta? Although Coca-Cola doesn’t require international mobility, for its management-track positions, it wants employees who put their professional commitment and employer first. Be prepared to convince your interviewer of this with any examples that show such dedication to your professional life. Says one recruiter of MBAs: “We look for global mobility, people who are willing to travel both internationally and within the U.S.” 7. Where do you see yourself in 10 years? A typical interview question that holds special weight at Coke. Says one insider: “The biggest thing is they’re looking for long-term thinkers. They don’t want cowboys. They want conservative people who are into adding shareholder value.”

Questions to Ask If you do background reading on Coke before an interview, don’t be afraid to show it. Because the company places such a premium on loyalty and turnover is low, interviewers are generally longtime company men and women. Says one recent MBA hire: “You can talk about (Coke) war stories. That says, ‘Hey, I’m buying into the specialness of the company.’” 1. I know that the Coca-Cola Company has over the past 10 years steered away from diversification. How exactly does this strategy positively affect shareholder value? Do you expect this strategy to continue in the 21st century? 2. I’d like to hear about your career path. How did you get here, and where do see yourself next? Remember the words of our contact: “It’s easier to be hired by Coke than to be promoted. They tend to hire lots of senior people from outside instead of hiring from within.” It would probably be a good idea to explore this issue, carefully.

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3. With all the pundits bemoaning the homogenizing of global culture, and considering the recent backlash against Nike and Microsoft, is The Coca-Cola Company concerned about a downside to its pervasiveness strategy? 4. I know that The Coca-Cola Company stuck by Mexico when it was down in 1994, and that really paid off. Why exactly did that strategy work, and can the company do it on a broad scale in today’s unsettled world economy? This might be a good way to show your sensitivity to the company’s worldwide situation and get a sense of how Coke plans to weather the storm. You can also boost your interviewers’ egos when they get to tell you that T.C.C.C. is not afraid of the sky falling in emerging markets. 5. I noticed that the African market comprises a very small portion of The Coca-Cola Company’s revenues, although the company’s market share in the region is high. (Look at company charts; Coke’s market share in Africa is about 80 percent) What does the company foresee in terms of growth in that region, and as the market grows, how does it plan to keep its high market share as competitors decide the market is potentially lucrative? 6. As I’ve looked into the Coca-Cola Company, I’ve noticed that the trend in bottling seems to be toward consolidation. Do you think this is healthy development for the company? 7. Do you believe Coke’s intended introduction of bottled water is a good idea? Will it cut into sales of other Coke products? Show that you stay current with latest developments at Coke.

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On the Job Job Descriptions Assistant Brand Manager The entry-level position for prospective marketing bigwigs involves: • Broad business analyses for a brand • Developing consumer promotions, packaging, and market research plans • Serving as a company liaison between related marketing groups such as promotions and outside advertising agencies • Communicating brand strategy to bottlers and retail customers Those thinking about pursuing a marketing career at Coke should remember that T.C.C.C. is a big company with relatively few brands. Says one recent marketing MBA hire, “They’re not going to take an MBA and say, ‘Okay, you’re in charge of Sprite.’”

Financial Analyst Entry-level MBAs often start out in the finance function as either senior financial analysts or principal financial analyst. Their responsibilities include: • Providing budget analysis for departments such as brand management or manufacturing • Identifying cost-cutting possibilities and inefficiencies

Internal Auditor Another foot-in-the-door for finance MBAs. Says one recent hire, “They need internal auditors like there’s no tomorrow.” Former CEO Doug Ivester started as an auditor. Auditors travel “100 percent of the time, all over the world,” report insiders, visiting different Coke locations making sure that the appropriate financial controls are in check and are being used properly.

Business Development Analyst Insiders tell us that the cream of the finance MBA crop goes into this division, which is described as an “internal M&A group.” The group spends most of Visit Vault at www.vault.com for insider company profiles, expert advice, career message boards, expert resume reviews, the Vault Job Board and more.

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The Coca-Cola Company On the Job

its time figuring out what bottlers to buy in order to consolidate into the “anchor” bottling concerns Coke has set up. This requires working with attorneys to draft shareholders agreements, drafting purchasing agreements, analyzing production projections, and flying around the world to close deals. About three MBAs are hired into this group a year.

Summer Internship Internships for MBAs are offered primarily in marketing, with a few in finance. Within marketing, there are internships in: • Brand management: This is a feeder program, with usually about 10 of the 10 to 12 interns receiving offers for full-time positions as assistant brand managers. • Marketing research: Coke actually recruits these interns from programs that offer masters degrees in market research (U-Wisconsin-Madison, University of Texas Austin, and the University of Georgia). The four interns in this sub-department get full-time offers. • Marketing program development: These positions involve getting plans that Brand people map out up and running. The positions are more operations-oriented than strategic. About four interns are hired a year; they do not get offers to return. • Presence and media marketing development (several interns, depending on budgets, who generally don’t get full-time offers). This marketing division concentrates on sports and other big-exposure events, such as all those Hollywood awards shows. Says one former marketing intern: “It was an excellent summer experience where I was given full responsibility for the completion of a market research project… I maintained close contact with middle management throughout the project. It was a well-structured experience that exceeded my initial expectations.” In finance, about five internships have been offered each year, but this is not a formal program, according to a recruiter, and is not used as a feeder into full-time positions.

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Day in the Life Assistant Brand Manager 8:00 a.m.: Arrive at Coke’s midtown offices near downtown Atlanta after a short commute (“There’s a parking garage with plenty of parking, and traffic’s not bad.”) 8:15 a.m.: Check e-mail and voicemail. Respond. 9:00 a.m.: Read through a report about a packaging design from the consumer research department that you received last night. (“We’re always trying to track marketing investment. Obviously if you advertise more, you sell more, but we’re constantly trying to measure if the money invested in marketing is worth it.”) 10:30 a.m.: You decide you want more data about a particular demographic group’s response to a packaging design; e-mail the consumer research department. (“I do a lot of overseeing consumer research.”) 11:00 a.m.: Call consumer promotions department to talk about a bottle-cap promotion you are trying. (“It’s not all face-to-the-computer time. A lot of it is looking around the company to see who has expertise in certain areas, and building energy around your ideas.”) 12:00 a.m.: On the phone with the legal department to set up a meeting to go over the ins and outs of the bottle-cap promotion. 12:30 p.m.: Off to the cafeteria for lunch. (“The cafeteria is the best I have ever eaten at, food and prices.”) 1:00 p.m.: Meeting with associate brand manager and other assistant brand managers to discuss strategy for an upcoming ad campaign. 3:00 p.m.: Back at your desk. On the phone with the consumer research department to ask if they can scrounge up sales figures in the area where the ad campaign will be tested. 3:30 p.m.: Back to the report on packaging design, begin writing a report that you will eventually present to your brand manager and associate brand manager. 6:00 p.m.: Go home.

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Senior Financial Analyst 7:30 a.m.: Go work out at health club. 8:30 a.m.: Breakfast at the company cafeteria. 9:00 a.m.: Check voicemail and e-mail. (“As a financial analyst you don’t talk to people outside the company, you maybe talk to assistant brand managers, or an advertising group to get costs.”) 9:30 a.m.: Begin performing trend analysis on mid-month results of a brand. 10:00 a.m.: Meet with finance manager to review brand budgets 12:00 p.m.: Lunch in the company cafeteria. (“It’s like a food court in a mall.”) 1:00 p.m.: Meet with brand managers to discuss new promotional activity. 1:45 p.m.: Check voicemail and e-mail again. 2:00 p.m.: Go back to trend analysis on mid-month results. Develop forecast for the rest of the month. 4:30 p.m.: Review presentations on next year’s budget for a brand. (“You make your presentations to the directors.”) 5:30 p.m.: Go home. (“You hop in your BMW and head home.”)

Departments Consumer Promotions Narrower in its marketing scope than Brand, with less emphasis on overall marketing strategy. The consumer promotions department works on projects such as bottle cap contests and tie-ins with sports or concert events.

Consumer Research The people who tell the Brand people what consumers are thinking, the Consumer Research Department conducts surveys (both written and test marketing), and analyzes these results by every conceivable demographic group.

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The Coca-Cola Company On the Job

Field Sales This department is responsible for getting Coke products onto supermarket shelves, and ensuring that the company’s products are displayed as the company believes is most effective.

Finance/Accounting Other than Marketing, the most likely department to employ managementtrack employees and graduates of top schools. The department analyzes the effects of business decisions and helps plan the company’s strategy for financial growth. Former CEO M. Douglas Ivester started in this department, as an auditor. About two-thirds of the MBA class that joins the finance department begin as either senior financial analysts or principal financial analysts.

Information Systems The support staff that makes sure the computers don’t crash. At Coke, however, this department does more upgrading than mere maintenance. Coke is “always actively upgrading computer equipment,” says one former contractor, who estimated his group installed 5,000 new computers in about two years. “Coke spends a lot of money on things to make the business run smoother, and they are very heavily into technology.”

Human Resources The department that designs and implements employee programs for Coke’s 26,000 worldwide employees (about 6,000 to 7,000 in downtown Atlanta). Aside from those tasty benefit and stock option plans, the department helps coordinate Coke’s training programs.

Marketing Although Coke is a marketing-heavy company, Coke does not have brand management in the traditional sense of a training ground that funnels into general management positions. There is brand management in the Coca-Cola Corporate bottle/can division. Brand teams, comprised of assistant brand managers, an associate brand manager, a brand manager, and during the summer, a brand intern, oversee all facets of a brand’s operation, from package design to pricing to consumer promotions.

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The Coca-Cola Company On the Job

Marketers carry titles like trade channel manager and assistant trade channel manager. Customer account managers and assistant customer account managers deal with large company accounts; and presence and media marketing personnel handle advertising at large sporting and entertainment events.

Public Relations At image-hyperconscious Coke, spinmeisters are an integral part of Coke’s operations. This department works to put the company’s best foot forward for the media, investors, and the general public.

Technical/Research and Development Composed of scientists and engineers, R&D works on new product development and improvements and package design (an area of particular pride at Coke, which proudly flaunts its contoured Coke bottle, and now the “dimple” Sprite package).

Career Path For undergraduates Undergrads, are hired primarily as engineers, although Coke reportedly is planning to try out a new recruiting program for their sales department in 1998. About 45 engineering undergrad and master’s candidates take part in six-month internships that go from either June to December or January to June. These interns are placed in Atlanta with Coca-Cola Corporate; a small percentage receives full-time offers (a company recruiter estimates between 10 to 25 percent historically), although Coke says it is trying to change this, in order to bring in a higher percentage of its interns into the company. Engineers are recruited from about 10 technical schools in the U.S. and overseas. In finance and marketing, undergrads have very few opportunities. “If you were an undergraduate and had any ambition at all, you’d leave. It’s shit work,” says a former financial analyst. Says one employee in the business development group: “They have no chance.”

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The Coca-Cola Company On the Job

For MBAs In brand management, the career path goes from assistant brand manager to associate brand manager to brand manager to marketing director. Promotions happen typically every two to three years. In finance, it goes from senior financial analyst to principal financial analyst (some MBAs start here) to financial services manager, which involves oversight of processes and perhaps other employees, to finance manager, and then to the director level. For those in the business development group, it goes from business development analyst to business development manager to regional finance manager to finance manager of a division. One can alternately start in finance as an auditor or as an accountant, a position which a company recruiter says involves some financial analysis. Insiders, however, say that “there is no set career path.” MBAs with their eyes on general management will eventually need to get experience in finance and operations, counsels one marketing employee. There is something of a tradition at Coke of higher-ups “scouting” the young talent and calling them up into higher positions, insiders say, and one can move up without actively seeking to, but usually moving up involves “finding yourself a mentor to ask questions and advice.” “You have to proactively manage your career.” This means making the right contacts within the company. “If you have a particular interest, it is up to you to let people know, to get your name in the game.” Overseas assignments can happen after about three to five years for MBAs. While these are good career moves, they are not requirements for advancement within the company, employees say, although they also note that career progression will likely slow down if one is unwilling to move abroad. In general, employees say there is no up-or-out pressure at the company. “It’s not up-or-out,” says one finance MBA. “It’s a huge organization and you can find a place that fits you.” Insiders say moving across functions is “very easy.” This includes a move from Coca-Cola Corporate to Coca-Cola Americas for those who would rather stay in the country for family reasons, employees tell us. Cross-functional movement is a good idea not just to broaden one’s skill set, employees say, but also because it “gives you a better feel for expanding your network in the company.” Because networking is so vital to one’s advancement at Coke, admits one financial analyst: “In a big company like this, it depends a lot on luck.”

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The Coca-Cola Company On the Job

Training Recruiters and employees say that Coca-Cola looks for already experienced hires. “Coca-Cola hires mostly experienced employees and expects people to bring a certain level of proficiency with them,” according to one recent MBA hire. “Having said that, the training courses that they do offer are excellent.” These classes are taught primarily on-campus, either by in-staff folk or consultants that Coke brings in. One marketing employee estimates he will take about 80 hours of classes in his first year. These classes vary from classes in an employees’ function to general classes on the organization of The Coca-Cola Company. The employee and boss work out training schedules individually; there’s no formal structure, according to employees.

Employee evaluations Coca-Cola performs 360-degree evaluations. Evaluations are supposed to take place twice a year, but insiders say that, as with many other companies, they tend to occur only once a year. Aside from the generic and predictable measures of how an employee gets along with people, and what their quality of work is like, insiders say, Coke is very concerned with efficiency. “It’s a very fast-paced company,” says one former brand manager. “They need to know that you can do what you need to do in good time.”

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The Coca-Cola Company

Final Analysis Do you want to become a denizen of Coke Nation? If so, prepare yourself to be subsumed by a company. Even more so than other large corporations, you will be forced to identify yourself with your employer. You will cease dipping into bags of Fritos. You will dress to a tee, and you will begin murmuring “shareholder value” in your sleep. You will spend your time contriving to meet certain executives that you feel can help you advance in the company. Nevertheless, there are benefits to citizenship, notably great prestige, and a possibly long, lucrative, and fulfilling career. While world economic instability has and will no doubt continue to shake this highly international company, Coke employees can count on a solid management team united by the vision of the late Roberto Goizueta, the guiding hand and brimming enthusiasm of Douglas N. Daft, and the continued support of major investors such as Warren Buffett. Finally, know that loyalty to the company is returned amply in the form of all the Coke you can drink and a refreshing draft of KO stock.

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The Coca-Cola Company

Recommended Reading T.C.C.C.’s web site, www.cocacola.com, provides surprisingly sparse information for prospective hires, although it will give you financial information, press releases and a skeleton listing of worldwide distribution of brands. www.coke.com is merely promotional.

The following articles are helpful: • “America’s Greatest Wealth Creator: GE, Coke, and Microsoft are the Trio to Beat.” Fortune, November 9, 1998. An excellent article for an understanding of Coke’s business strategies. Fortune gives an explanation of economic value added, a particular Coke buzz word, and proceeds to rank American companies according both to economic value added and the related idea of market value added. Coke snags a number two ranking. • “Global Crisis for Coca-Cola, Or the Pause that Refreshes?” The New York Times, November 1, 1998. The Times takes a look at Coke’s plight in the wake of economic trouble abroad, and also reveals CEO M. Douglas Ivester’s confidence that Coke can rebound. • “The Unmasking of the ‘Uncola: After Years of Decline, New Owner Plots Revival at 7-Up.” The New York Times, October 15, 1998. This article places 7-Up’s situation in the industry context, and gives a sense of competing strategies. • “Anti-Trust Authorities Open Investigation of Coke, Its Bottlers.” The Wall Street Journal, July 7, 1998. The Journal reviews how Coke’s nose hasn’t always been clean in the antitrust realm. • “The Real Thing?” CFO Magazine, May, 1998. This interview with Coke CFO James Chesnut covers important topics related to Coke’s financial well-being, including international strategies, information technology, and marketing, among others.

See also: • “The Man Who Knew the Formula,” Time, October 27, 1997 • “Shift in Focus is Expected at Coca-Cola,” The New York Times, October 20, 1997 • “Coca-Cola Goes After Share of Mouth with Fruitopia Campaign,” The New York Times, May 20, 1997

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The Coca-Cola Company Recommended Reading

• “Coca-Cola’s American Dream,” Beverage World, May 1996 • “A Coke and a Perm? Soda Giant is Pushing into Unusual Locales,” The Wall Street Journal, May 8, 1997 • “Coca-Cola, in Direct Attack on Pepsi, to Introduce Challenger to Mountain Dew,” The New York Times, December 16, 1996 • “How Venezuela is Becoming Coca-Cola Country,” The New York Times, August 21, 1996

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