Coca-Cola The

Running Head: COCA-COLA: THE BALANCED SCORECARD APPROACH

Coca-Cola
The Balanced Scorecard Approach
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Coca-Cola The

Coca-cola: The Balanced Scorecard Approach

SLP. I.
Coca-cola Company (hereafter referred to as the Company or the Organization) is the
owner of four of the world's top five nonalcoholic sparkling beverage brands known to almost every
American. Coca-cola was established in 1886 and presently, it is operational in at least 200 countries
having at the minimum 90,500 associates worldwide and serving 1.5 billions ( The Coca-cola
2008 p.1 )of customers each day .The Companys overall goal, which is its mission is to refresh the
world in body, mind and spirit, inspire moments of optimism through their brands and actions and to
create value and make a difference in all their engagements ( Mission, Vision, 2006)
The Company is a manufacturer and seller of soft (carbonated) drinks with various brands,
the most popular of which is the banner brand, Coke. In assessing its success, the Organization does
not only count its monetary sales and profits but as well as its effect to the world in general. Cocacola Company tries to be open and accessible to everyone who needs information on anything it
does. Financial records, company information, customer-goal, investor values and press releases are
all accessible at the Companys website, www.thecoca-colacompany.com.
Aside from the abovementioned mission, the Organizations vision include the following
(Mission, Vision, 2006):

People: Being a great place to work where people are inspired to be the best they can
be.
Planet: Being a responsible global citizen that makes a difference.
Portfolio: Bringing to the world a portfolio of beverage brands that anticipate and
satisfy peoples' desires and needs.
Partners: Nurturing a winning network of partners and building mutual loyalty.
Profit: Maximizing return to shareowners while being mindful of our overall
responsibilities

Moreover, the Companys strategies are incorporated in its values which include the
following:

SLP II.

Leadership: The courage to shape a better future

Passion: Committed in heart and mind
Integrity: Be real
Accountability: If it is to be, it's up to me
Collaboration: Leverage collective genius
Innovation: Seek, imagine, create, delight
Quality: What we do, we do well

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Indeed, customer is very important. Without a customer, any financial organization would not
survive As Coca-colas way to retain existing customers and to encourage potential ones they have the
following guidelines:
Vision: Bringing to the world a portfolio of beverage brands that anticipate and satisfy peoples' desires
and needs.
Mission: Refresh the world in body, mind and spirit.
Strategy: What we do, we do well
To follow the guidelines and achieve what it wants, a set of very specific objectives must be met.
The achievement of customer level objective, which includes the satisfaction of customers, their
retention, and larger market share (The Balanced Scorecard) makes the business perform better.Why is
the customer very important? Because there is a "direct correlation between financial results and
customer.(Shaw, 2000, p. 37) The Company, to satisfy its mission and vision, through its strategies for
its existing and potential customers, the following objectives are setul:

To satisfy customers with the gratifying taste of high quality products;

The introduction to customers of products with diverse and fortified products that are
healthier.

Production of healthy beverages lines which are tasty yet they are not damaging to
health.

The three objectives above are very important. The Company has acknowledge that obesity and
other health problems (The Coca-cola, 2008, p.12) may endanger the potential income of the Company
as well as its name, which can be fatal to a company that established reputations world-wide, and
branding has enabled international reputations to be created" (Kay, 1995, p. 15). Looking from these
objectives, it can be seen that the third one is the most specific of the three. production of healthy
beverages lines which are tasty yet they are not damaging to health would result to the introduction of

Coca-Cola The

products taste diversity and fortification making them healthier that would make customers satisfied
with gratifying high-quality (healthy) beverages. This achieves the strategy of the Company stating,
What we do, we do well and also its mission stating. Refresh the world in body, mind and spirit: an
unhealthy drink would not satisfy the mind and spirit.
The following matrices represent the Coca-colas customer-level objectives and their
corresponding performance metrics and targets as well as innovative means and the relations to the
Companys strategy, mission and vision:
Table 1. Identified Objectives and the Corresponding Metrics and Targets
for the Coca-cola Company
Objectives (1)

Bringing to the world a portfolio

of beverage brands that anticipate
and satisfy peoples' desires and
needs

Performance Measure/Metric (2)

Level of Performance/ Target (3)

The amount of worldwide sales and

profits.

World recognition of the Coca-cola

brands.

Obtaining overall positive reputation

worldwide.

Positive responses to various products

offered by the Company..

Internationally achieve popular and

excellent Company name.
Vision-Level Objective

Refresh the world in body, mind

and spirit (through highly driven
sales)

The sales volume and sales amount and

profit of the Company.

All products are salable and customers

do not have reasons not to buy them.

Mission- Level Objective

What we do, we do well

The popularity of products and services

as well as Company recognition by the
public.

Excellent product range.

Strategy-Level Objective
To satisfy customers with the
gratifying taste of high quality
products

The number of additional customers

buying the products.

The products must have appealing taste

to customers yet they are of high quality
beverages.

Sales volume and amount to healthconscious market.

Customer Perspective
The introduction to customers of

Customer response through the volume

The availability of a wide variety of

Coca-Cola The

Table 1. Identified Objectives and the Corresponding Metrics and Targets

for the Coca-cola Company
Objectives (1)

Performance Measure/Metric (2)

products with diverse and fortified of sales of the newly introduced

products that are healthier.
products.

Level of Performance/ Target (3)

vitamins and minerals-fortified, healthy
and non-obesity causing products from
which the customers may choose from.

Responses of the health-conscious

market
Internal Process Perspective
Production of healthy beverage
lines which are tasty yet they are
not damaging to health.

The Companys dedication on providing Continued research and development of

healthy products through provision of
existing and potential products.
additional budget for the research and
development department.
Internal Learning and Growth Perspective

Table 2. Identified Objectives and the Corresponding Initiatives/Programs

for the Coca-cola Company
Objectives (1)

Initiatives/Programs (4)

Bringing to the world a portfolio of beverage brands that

anticipate and satisfy peoples' desires and needs

Widening the reach of the Company by establishing strong

affiliations in various countries.
Flexible implementation of organizational policies depending
on the country governance where the Company chooses to
operate and sell.

Vision-Level Objective
Refresh the world in body, mind and spirit (through
highly driven sales)

Heavy product and and brand promotions.

Providing greater returns to customers, adhering to their level

of satisfaction by providing good customer service, reliable
and affordable tasty products and selling them only the real
thing.
Mission- Level Objective
What we do, we do well

Implementation of quality assurance, be it in the Coca-colas

products or in its service.
Strategy-Level Objective

To satisfy customers with the gratifying taste of high

quality products.

Create awareness on the quality of products and of products

themselves, either through media commercials or giving
away of free items.

Coca-Cola The

Table 2. Identified Objectives and the Corresponding Initiatives/Programs

for the Coca-cola Company
Objectives (1)

Initiatives/Programs (4)
Customer Perspective

The introduction to customers of products with diverse

and fortified taste and ingredients, respectively, that are
healthier.

Additions of compatible vitamins and/or minerals to

products.

Internal Process Perspective

Production of healthy beverages lines which are tasty yet Reduction of fattening, obesity-causing ingredients from the
they are not damaging to health.
products.
Greater research and development efforts from the Company
personnel involve on continuous improvement and product
innovation.
Internal Learning and Growth Perspective

The above targets aim "to improve the quality, performance and accountability" (Stevens, Stokes
& O'Mahony, 2006) of the Company. The metrics on the other hand which are the measures of the
performance must be properly defined or owned according to Arthur M. Schneiderman (2006) for it to
be useful. Additionally, initiatives provide systematic methodology for managers, and employees, to
establish a wide variety of goals and objectives, into targeted and business-aligned viewpoints, and then
render detailed assessments and judgments (Balanced Scorecard) as to the objectives success.
With the above identified performance targets, metrics as well as new programs and Company
initiatives to satisfy the customer-level objectives going upwards to its vision, the Company would have
a well-defined sets of activities and processes to truly achieve what their biggest goal is. Balanced
scorecard is indeed a very useful tool for organizations because it contains. "variables that make or break
a firm in the intensely competitive businesses " (Epstein & Birchard, 2000, p. 82) Although it is not
really the total measure, per se, it is something that attempts to understand the phenomena (Milgate,
2004, p. 8) of the business from various aspects.

Coca-Cola The

References
Balanced Scorecard Initiatives. Clear Thinking Lite, n/d. 22 May 2008.
<http://www.ctlite.com/bal.htm>.
Epstein, M. J., & Birchard, B. (2000). Counting What Counts: Turning Corporate Accountability to
Competitive Advantage. Cambridge, MA: Perseus. Retrieved May 23, 2008, from Questia
database: http://www.questia.com/PM.qst?a=o&d=88984324
Kay, J. A. (1995). Foundations of Corporate Success: How Business Strategies Add Value. Oxford:
Oxford University Press. Retrieved May 23, 2008, from Questia database:
http://www.questia.com/PM.qst?a=o&d=29059189
Milgate, M. A. (2004). Transforming Corporate Performance: Measuring and Managing the
Drivers of Business Success. Westport, CT: Praeger. Retrieved May 23, 2008, from Questia
database: http://www.questia.com/PM.qst?a=o&d=113133426
Mission, Vision and Values. The Coca Cola Company, 2006. 21 May 2007. <http://www.thecocacolacompany.com/ourcompany/mission_vision_values.html >.
Stevens, P., Stokes, L., & O'Mahony, M. (2006). Metrics, Targets and Performance.National
Institute Economic Review, (197), 80+. Retrieved May 23, 2008, from Questia database:
http://www.questia.com/PM.qst?a=o&d=5016613238>.
Schneiderman, A.M. (2006). Juggling Balanced Scorecard Metrics, Arthur Schneiderman Website.
23 may 2008. <
http://www.schneiderman.com/The_Art_of_PM/juggling_Metrics/juggling_metrics.htm>.
Shaw, R. (2000). 3 Shareholder Value or Stakeholder Value? That is the Question. InShareholder
Value Management in Banks /, Schuster, L. (Ed.) (pp. 36-null10). New York: St. Martin's Press.
Retrieved May 23, 2008, from Questia database: http://www.questia.com/PM.qst?
a=o&d=102459778

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The Balanced Scorecard. Quick MBA-Accounting, 2007. 23 May 2008.

<http://www.quickmba.com/accounting/mgmt/balanced-scorecard/>.
The Board of Directors, Coca-Cola Company. The Coca-Cola Company Financial Statements. 28
February 2008. 21 May 2008. <http://www.thecocacolacompany.com/investors/pdfs/form_10K_2007.pdf >

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