The Coca Cola Balance Scorecards

            The Coca Cola Company is a company that manufactures its products and the it markets and distributes the products to its customers The company’s main products are  five nonalcoholic sparkling beverage brands such as soft syrups, carbonates drinks and other brands such as coke.  The company was established in the 1886 by a pharmacist who was known as Mr. John Stitch Penbreston.  It has its headquarters in Atlanta Georgia; the company currently produces over four hundred brands in over 200 countries with a minimum number of 90,500 associates worldwide that serve over 1.5 billions of customers per day.

The company’s goal is to refresh the world in body, mind and spirit so as to inspire optimism the customers through selling its products and the creation of actions that create value and make a difference in all their activities in the company. The management of the company assesses its success by not only counting on its monetary sales and profits, but also it assesses its success through determining the impact it imposes on its customers so as to increase its sale volume of its products.  The company also publishes its information to the public so that they can access the information so that they can make informed decision on how well they can invest in their money into the company in form of shares. The company’s other vision is to create an environment in which people can be inspired to feel at the right place, to provide the citizens with opportunities that can  make a difference to their lives.  The company’s other vision is to provide its customers with a wide range of products that can satisfy their needs and their desires and  is also committed to maximize the shareholders good returns in form of dividends and to fulfill other responsibilities company’s objectives and goals so as to ensure its success and also the company also  assists the community so that it can improve their living standards so that they can appreciate their products hence increase the sales volume of the products of the company.

Academic anxiety?
Get original paper in 3 hours and nail the task
Get your paper price

124 experts online

The management of the company’s strategies are geared towards building on its fundamental strength in marketing and innovation so as to drive its increased efficiency and effectiveness in interactions with its system so as to generate new energy through core brands that focus on health and wellness of the customers so that they can appreciate the products hence result to increased sales volume of the products of the company. The company has invented an advertising campaign strategy whose objective is to boost the sales volume of the company’s product that is the “make it real” campaign and also has modeled its product as a woman’s curves so as to attract customers to the product so as to increase the sales volume of the product and also to maintain the customers so that they do not seek alternative companies that will meet their needs and desires.
The senior brand manager initiates and develops strategies and plans that can enhance the brand of the company’s product so that it can attract as many customers as possible.  The senior brand manager develops the brand vision and strategy that includes the brand destination, positioning, target audience identification and the development of core strategic imperatives. The marketing operating strategies of the company is  that the company’s management acquires the knowledge and the ability basic marketing operating strategies  through such  means as media developing, price strategies, trade or consumer promotions that are used in the execution of the marketing plans.  The other company’s strategy is to ensure that they satisfy the customer’s needs and desires. It also develops, evaluates and selects consumer-based action that maximizes the long term profitable volumes of the organization.  The company uses the market leader’s strategies so as to compete effectively with its competitors in the world market where there are other soft drinks and carbonated drinks that are manufactured by their competitors.
The balance score card is the strategic planning and management system that is used in businesses and companies to align business activities of a company or a business to its vision and strategy, to improve internal and external communication and also to monitor the company’s performance against its goals and objectives.  The approach not only provides the performance measurement but it also helps the planners to identify what should be done and measured so as to enhance effective implementation of the goals and objectives of an organization.  The balance scorecard states that a company is viewed from four perspectives and it developed using metrics, collects data and analysis the organization or company using the four perspectives these are learning and growth perspective, business process perspective customer perspective and the financial perspective.

Business process perspective

            The business process perspective is also referred to as the internal business process is used to allow the managers to know how well their businesses runs and whether its products and services conform to the customers needs and desires so as to increase the sales volume of the company.  There are two kinds of business process perspective there are the mission-oriented processes and the support processes.  The mission -oriented processes are special function of the government offices and they have many unique problems that are reported in these systems.  The support processes are more repetitive in nature and hence are easier to measure them than other metrics.

            It is a perspective that focuses on the internal operations of an organization that improves the customer’s perspective by creating value for the customers and in the financial perspective it increases the shareholders wealth.  Its objectives are to improve the manufacturing capability that can maximize on the shareholders returns so as to ensure that they do not quit using the company’s products, to  reduce delivery time to customer so to  refresh the customers in their body ,mind and spirit  and to meet the specified delivery dates required in a company so as to avoid stock outs that lead to the customers . The internal business process uses the following measures so as to enhance its achievement of its goals and objectives these are percentage of processes with the advanced controls, order delivery time and the on-time delivery measures

            The management of the Coca cola Company introduces technology into its business so as to improve on its performances and it also introduces the leadership philosophies whose objective is to develop technological leaders that can lead the  company to the achieve the company’s goals and objectives. The Coca cola Company’s dedication to providing healthy products through the provision of the additional budget for the research and development department facilitates the company to produce healthy beverage lines that are tasty and that are not harmful to the consumer’s health (Chad, T., 2004)”.

            The business process measures that are used in evaluating the companies compliance with the business process perspective are the  as the percentage of total hours that is spent in staying in touch with the customers so as to understand their needs and desires the number of customer initiated product innovation and the average customer’s idea ramp-time.

Customer perspective

            The customer perspective is that a perspective whose objective is to satisfy the customers and it is used to focus on their needs and desires so as to increase the sales volume of the company. If customers are not satisfied they will eventually find other suppliers that will in one way or another meet their need hence its importance for the management of companies to focus on how to satisfy their needs and desires.   When developing the metrics that can satisfy the customers the management of the Coca cola company should analyze all kinds of customers and the kinds of processes that provide a product or service to the customer groups so as to maintain the customers and also to increase the sales volume of the company. The customer perspective is a perspective that identifies the targeted market segment and then measures the company’s success in terms of these segments.  The objectives of this perspective are to increase the market share and to increase customer satisfaction.  The customers are very important in an organization without them the operations of a company cannot go ahead because they are the final consumers of the produced goods and services thus it is important for the management of companies to handle them with care. The Coca Cola Company can fulfill its mission – vision through its strategies of how to handle its existing and potential customers using the following objectives, it can satisfy the customers by producing products that gratify its high quality products, introduce of products that are healthier to them and hence improve on their living standards.  The management of the Coca cola Company can produce healthy beverage lines that are tasty are not damaging to the health of the customers so as to increase the sales volume of the product in the company.  There have been increased cases of obesity and other health problems that have led to illnesses to the residents of the country thus the management of the company introduction of the products that have taste diversity and fortification that makes the customers healthier can be a good objective that can lead to the success of the company. The mission of the customer perspective for the employees of the company is to perform whatever they are expected to do and to do it well so as to lead to the achievement of the company’s   goals and the objectives. The vision of the customers perspective is to refresh the customers in body, mid and spirit through highly driven sales.

Financial perspective

            The financial perspective states that it is important for managers to provide financial data that is timely and accurate so as to enhance the operations of an organization or a company to be carried out effectively.  The management of company should not only handle and process financial data but it should also implement a corporate database that can enhance processing of data to be in a central and automated place so as to enhance successful implementation of the company’s goal and objectives.  The inclusion of the financial-related data such as the risk assessment data and cost-benefit data into a company can provide better results hence lead to the achievement of the company’s goals and objectives. The Coca Cola Company used the financial statement and its relations to analyze and to evaluate the company’s performance.  The goal of these rules is to increase the comparability in accounting for the business transactions that are similar and also to improve the transparency of information reported by accountants to the public.

            The financial perspective is a perspective that indicates how the transformation of strategy can lead to the economic success of a company.  It defines how  the financial performance  can be achieved using a strategy that has the following elements  such as revenue growth, reduction of cost and wastes and it also measures the effectiveness of other perspectives that are related to a company . The company’s intangibles value and brand they indicate the gap that exists between a company’s book value and its stock market valuation from the financial perspective of a company.  In Coca cola company its brand accounts for more than 45% of the company’s market capitalization (Mark, P, 2000),

            The companies brand provides the financial value because the management of the company ensures that it produces products that deliver on its product quality, corporate efficiency and service so that it can achieve its goals and objectives. The Coca Cola Company developed the Value Based Management (VBM) principle and the Economic Value Added metrics that are used to evaluate the performance of the company.  The economic value added financial metric is used to evaluate the business strategies, capital projects and it is used to maximize the long term shareholder wealth.  The value that has been created or destroyed by the firm during a given period of time can be measured by comparing profits with the cost of capital that are used to produce them.  The value based management is an approach that ensures that the corporations run effectively so as to maximize the shareholders value.  It also involves the creation of value that is intended to increase or to generate maximum future value and strategy it also involves managing the value change such as governance, change management organizational culture, communication, leadership and valuation that refers to the measurement of value.  The value of a company is determined by its discounted cash flows, the value is created when companies invest capital returns that exceed the cost of that capital.  The value added management extends these concepts by focusing on how companies can use them to make both the strategic and the everyday operating decisions. The financial perspective evaluates the profitability of organization strategies; the other strategies are the Naches key strategic initiatives that reduce cost relative to the competition and growth.  It also focuses on how much operating income and the return on capital is employed on the results due to the fact of reducing costs and selling of more units to the customers.

            The management of the Coca cola introduction of its process and product management led to its growth and development.  The company’s financial information includes annual and quarterly financial information, market data and comparison data.  The income from the historical financials includes revenue, net income, net profit and the number of employees who have served in the company in more than ten years. The financial measuring tools such as the return on investment (ROI) Residual income (RIS and the Earnings per share (EPS) are the metrics that are used to account for the costs that are associated with capital and it helps company  to identify areas in the organization that are not profitable (Dean, F., and Gerry d Khermouch G. 2001)”.

The learning and growth perspective

            The Learning and growth perspective states that employee training and the corporate cultural attitudes are related to the individual and corporate self-improvement.  The introduction of technological change has enabled the management of companies to keep on training its workers so that they can be able to adapt with the technological changes in an organization and hence enable the management of company to improve on its performance. The objectives of this perspective are to develop process skills, empower the workforce and enhance information systems capabilities.  The chief executive officer of the Coca cola Company stated that it was important for the company to attract and retain the best employees who would improve the performance of the company thus it trained it employees on methods of handling the customers so as to increase the sales volume of the company. It utilizes the following measures so as to achieve its goals and objectives these are the percentage of the employees that are trained in the process and the quality management of the employees that is enforced on them, percentage of front-line workers that are empowered to manage the process and the percentage of the manufacturing processes that are related to the real-time feedback (Dean, F. and Rubin, D. 2000)”.

            The Learning and growth perspective  measures that are used  in the Coca Cola company are some  amount of money is  spent on training the customer segments so as to ensure they attain the necessary skills and knowledge to carry out their activities and it also has measures  that enable  the well-educated managers to  provide  a state of art  that can advice customers on  the number of the issues that can increase the sales volume of the company. The customer solution team motivates the Coca cola Company so as to collaborate with its customer’s needs and the number of technologies that inspires the Coca Cola Company to say abreast with the technological threats and opportunities that alter the competitive landscape in the future. The learning and growth perspective target and actual initiative that lead to good performance of an organization these are employee training program that is target 90% while actual is 92% supervisors act as coachers rather than decision makers target 85% actual 90% and improvement of the off-line data gathering that is target 80% and actual data as 80%.

            The performance metrics and target as well as the innovative means and the relations to the company’s strategy mission and vision that bring to the world a wide range of beverage brands that anticipate and satisfy the people’s desires and needs, increase of the worldwide sales and profits obtaining of the overall positive reputation worldwide.  International achievement popular and excellent company name so as to increase the sales volume of the company’s product (Betsy M., 2000).

            The Coca-Cola Company’s long term financial growth rate objectives is to have a volume growth of 3% to 4% operating income growth of 6% to 8% and earnings per share growth in the high single-digit.  The management of the company initiated permanent step that would improve the performance of the company these were annual marketing and innovation investments of $350-$400 million as at January 2005.

The company revised annual volume target is 3% to 4% growth over time (Alan, C. (1999).

            The company uses the economic value added (EVA) and the economic profits viewpoint so as to make sure it makes sound decisions from the financial and the shareholder value perspective.  They are both closely linked and they serve as decision making shareowner value in their decision making processes.  The economic value added is the change in economic profit of a company from one year to another while the economic profit is the net operating profit after taxes mines a change for the operating capital.

            The Customer Respect Index (CRI) is a measure that is used by companies to measure the analysis of corporate performance from the online customer’s perspective and it focuses on how the corporations treat their customers while they are using the internet.  The customer Respect index it is a qualitative and a quantitative in-depth analysis and independent measure of the customers experience in the internet while interacting with the companies through the internet.

            The Coca-Cola company growth targets are too aggressive for its product.  The current price of its product is $46.96 and a 12 month target price of $41.33 that is abased on its PEG valuation.   The company has not been in a position to reach conservation growth rates over the last few years. The company develops its brand strategy by investing heavily in packaging research, developing targeted consumer advertisement, promotions and it solicitites in customer feedback.  The company acquisition of the HP Merary and Knight Bridge helps customers better manage and transform their activities and adapt to their technology environment (Chad, T. 2004)”

            The Coca Coal company through its officers in Japan it  implemented the channel stuffing that was also known as the gallon pushing whose objective was to enhance the purchase of concentrate that would be used to enhance the generation of more revenue to meet both annual business plan and earnings targets.The business process perspective strategy is to create and to apply technology so as to enhance competitiveness in the industry and other business sectors so as to increase the welfare of the society.

            The measurement systems that are used for measuring the learning and growth perspective are human resource accounting, economic value added, balance scorecard and intellectual capital.  These are used by the management of the company to achieve the objective of the learning and growth perspective of satisfying the customers so as to increase the sales volume of the company.  The coca cola company adopted the economic value added measure so as to deal with the cost of capital and they focused on the effective use of the assets and continuous value creation that would enhance good performance of the company.

Coca-Cola balanced Scorecard

Mission –To refresh the world in body, mind and spirit

                -to inspire moments of optimism through the brands and action

                -to create value and make a difference everywhere in the world

Vision     –

Profit -to maximize return to the shareholders while being mindful of the overall

People –to provide a great place for work where people are inspired to be the best
they can be

Portfolios –to bring to the world a portfolio of beverage brand that anticipate
and satisfy the people’s desires and needs

Partners  –  to nurture a winning network of partners and to build a mutual

Planet-       to build responsible global citizen that make a difference

Operating efficiency


Economic value profit
Economic value added
3%-5% overtime
Focused on initiatives that protect the environment

customer perspective

Management experience in designing and implementing processes that enhance customers requirements
Customer Respect  Index
Companies branded initiatives at retail and a research initiatives that would bring about the coke and retail partners to better understand the customers  that
Internal business processes
Implementation of business technology whose aim is to select and to justify the companies investment in technology
Transformer used to change information technology to business technology
19% operating growth

Learning and growth perspective
Company’s objective is to provide the customers with opportunities that can satisfy their and maximize customer satisfy
Human resources accounting

Economic value added

Balanced scorecard

Intellectual capital
20% operating growth


Coca Cola Co · 8-K · For 11/11/04 · EX-99.1

Media Relations Department

Alan, C. (1999), “The Coke Stomach Ache Heard Round the World,” New York Times,

June 25, p. C1.

Betsy M., (2000), “Coca-Cola Agrees to Settle Bias Suit for $192.5 Million,” New York

 Wall Street Journal, November 17, p. A3.

Betsy, M.and. Lublin J. S., (2004)”Coke Names Isdell Chairman, CEO, New York ” Wall

 Street Journal, May 5,, p. A3.

Betsy, M.and Deogun, N. (1999) After Short, Stormy Tenure, Coke’s Ivester to

 Retire,” New York Wall Street Journal, December 7, , p. B1.

Chad, T., (2004)”CEO Says Things Aren’t Going Better with Coke,” New York Wall

Street Journal, September 16, , pp. A1, A10.

Chad T. and McKay, B., (2004)”Bottled Up–Behind Coke’s CEO Travails: A Long

            Struggle over Strategy,” New York Wall Street Journal, May 4, p. A1.


Dean, F. and Rubin, D. (2000)”Now, Coke Is No Longer ‘It,'” Business Week, New

York, pp. 148, 150-51.

Dean, F., Rocks D.and. Clifford, M. L (1999) “Is Douglas Daft the Real

Thing, New York “:  Business Week,, pp. 44, 46.

Dean, F., and Gerry d Khermouch G., (2001)”Repairing the Coke Machine, New York

Business Week, pp. 86-88.

David G. (1998) I’d Like the World to Buy a Coke: The Life and Leadership of Roberto

Goizueta, New York: Wiley, , 334 p.

Elizabeth C G. and Roberts, R. (1992) The Real Ones: Four Generations of the First

Family of Coca-Cola, Barricade Books, New York 344 p.

Hays, Constance L.,( 2004) The Real Thing: Truth and Power at the Coca-Cola

 Company, New York: Random House, 398 p.

John, H. (1997)”In Search of Roberto’s Secret Formula,” New York Fortune, , pp. 230-32, 234.

, Kathryn W. K., (2002), God’s Capitalist: Asa Candler of Coca-Cola, Macon, New York

 Ga.: Mercer, 312 p.


Mark, P, (2000), For God, Country and Coca-Cola: The Definitive History of the Great

American Soft Drink and the Company That Makes It, 2nd edition,: New York

Basic, 621 p.

Sally, B.and Deogun N. (1998), “Coke Revisits Its Emotional Ads of the ’70s,” Wall

Street Journal, July 8, p. B8.

Retailer’s priority for new Revlon team. . – News – Coca-Cola Co. Atlanta, Georgia#

 BNET Business Network:

# B

The Governing Corporate Objective Shareholders versus Stakeholders

McTaggart, J. M.

Peter W. Kontes, Officer


This essay was written by a fellow student. You may use it as a guide or sample for writing your own paper, but remember to cite it correctly. Don’t submit it as your own as it will be considered plagiarism.

Need a custom essay sample written specially to meet your requirements?

Choose skilled expert on your subject and get original paper with free plagiarism report

Order custom paper Without paying upfront

The Coca Cola Balance Scorecards. (2016, Sep 24). Retrieved from