The Coca-Cola Company 2003 Summary Annual Report
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A Conversation with Doug Daft
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A Conversation with Doug Daft Page 4 of 12 Previous Next
A Conversation with Doug Daft
How would you describe the Company's performance in 2003?
What did the Company do, specifically, to improve its performance?
What challenges did the Company face in 2003?
When you became CEO in 2000, you set a course to re-position the Company for long-term success. Are you satisfied with the progress the Company has made to date?
Where is the Company making this strategic course correction?
What about North America and Japan, home to two of the Company's most profitable businesses? What can you do to address slowing growth there?
Does this approach work in the noncarbonated beverage category, too?
What is the bottler's role in all of this?
How concerned are you about the obesity issue?
What is the Company doing to address the crisis of trust that pervades the business climate today?
Do you believe the stock market has sufficiently rewarded the Company for its accomplishments?
Where do you see The Coca-Cola Company in 10 years?
Q: When you became CEO in 2000, you set a course to re-position the Company for long-term success. Are you satisfied with the progress the Company has made to date?
A:I would characterize the course correction—very generally—as a two-step process. The first step was to re-focus the Company on relationships. The Coca-Cola Company has always been fundamentally in the relationship business, and trust is at the heart of every relationship our Company has ever developed. Consumers trust that they’ll be refreshed by the highest-quality beverage. Customers trust that we’ll provide the highest level of service and attention to their needs. Our bottling partners trust that we’re operating in the best interests of the Coca-Cola system. In short, when you’re fundamentally in the relationship business, trust is the essential first condition. But you can’t demand trust—you have to earn it.
After re-focusing the Company on its critical relationships, the second step was to establish and execute our strategic priorities. That’s what we’re doing now, and it, too, has been a bit of a course correction. In the past, we occasionally lost our focus on profitable volume growth. This was not particularly good for our own bottom line or those of our bottling partners and customers. Now that we’ve firmed up those critical relationships, though, we’re in a much better position to execute our volume and value strategy.
Now, I have to admit that understanding what we do at The Coca-Cola Company in terms of our individual strategic priorities is a little like trying to experience the magic of Coca-Cola by reading the ingredient label on the package. The whole vastly exceeds the sum of its parts. What it ultimately comes down to, though, is our ability to turn the billions of consumer connections we make each day into opportunities for consumption. We do this by giving consumers the brands they love, in the most convenient packages, and at the occasions and locations they want. Our shorthand for this approach is brand, price, package and channel. It’s how we intend to create value for consumers and customers, and profitable volume for the entire Coca-Cola system.
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