“Entreprendre” is the French root word for Entrepreneurship which is associated with commencing a business under uncertainties attendant with risks. Analyse the possible tendencies of Entrepreneurs under such conditions of risk?
Read the case study carefully and answer the question below.
COCA-COLA JOURNEY®
Refreshing the World, One Story at a Time
The Coca-Cola story 1886-1892: the beginning
It was 1886 and in New York Harbour, workers were constructing the Statue of Liberty. Eight hundred miles away, another great American symbol was about to be unveiled. Like many people who change history, John Pemberton, an Atlanta pharmacist, was inspired by simple curiosity. One afternoon, he stirred up a fragrant, caramel-coloured liquid and, when it was done, he carried it a few doors down to Jacobs’ Pharmacy. Here, the mixture was combined with carbonated water and sampled by customers who all agreed this new drink was something special. So Jacobs’ Pharmacy put it on sale for five cents a glass. Pemberton’s bookkeeper, Frank Robinson, named the mixture Coca-Cola and wrote it out in his distinctive script.
To this day, Coca-Cola is written the same way. In the first year, Pemberton sold just nine glasses of Coca-Cola a day. A century later, The Coca-Cola Company has produced more than ten billion gallons of syrup. Over the course of three years, between 1888-1891, Atlanta businessman Asa Griggs Candler secured rights to the business for a total of about $2,300. Candler would become Coca-Cola’s first president and the first to bring real vision to the business and the brand.
1893-1904: the early years
Asa Candler, a natural born salesman, transformed Coca-Cola from an invention into a business. Candler knew there were thirsty people out there, and he found brilliant and innovative ways to introduce them to this exciting new refreshment. People saw Coca-Cola everywhere, and the aggressive promotion worked. By 1895, Candler had built syrup plants in Chicago, Dallas and Los Angeles. Inevitably, the drink’s popularity led to a demand for it to be enjoyed in new ways. In 1894, a Mississippi businessman named Joseph Biedenharn became the first to put Coca-Cola in bottles. In 1899, two Chattanooga lawyers, Benjamin Thomas and Joseph Whitehead, secured exclusive rights from Candler to bottle and sell the beverage for the sum of only one dollar.
Coke finds its identity
As Coca-Cola grew in popularity, copycats began to appear eager to capitalise on the success. Coca-Cola concentrated on advertising focused on the authenticity of Coca-Cola, urging consumers to ‘Demand the genuine’ and ‘Accept no substitute’. The company also wanted to create a distinctive bottle shape to assure people they were getting a real Coca-Cola. The Root Glass Company of Terre Haute, Indiana, won a contest to design a bottle that could be recognised in the dark, and in 1916, they began manufacturing the famous Contour Bottle, which remains the signature shape of Coca-Cola today. The Coca-Cola Company grew rapidly and before long expanded all over the world. In 1900, there were two bottlers of Coca-Cola; by 1920, there were about 1,000.
The Woodruff legacy and Coke’s first Olympics
Arguably no person had more impact on The Coca-Cola Company than Robert Woodruff. In 1923, Robert became the company’s president. Candler had introduced the U.S to Coca-Cola, but Robert spent more than 60 years introducing the drink to the world. Woodruff was a marketing genius who saw opportunities everywhere. He spearheaded expansion overseas and in 1928 introduced Coca-Cola to the Olympic Games for the first time, when the beverage travelled with Team USA to the 1928 Amsterdam Olympics. Woodruff pushed for development and distribution of the six-pack and many other innovations that made it easier for people to enjoy Coca-Cola at home or on the move. This new thinking made Coca-Cola not just a huge success but a big part of people’s lives.
After 70 years of success with one brand, The Coca‑Cola Company decided to expand its range of flavours. Fanta, originally developed in the 1940s, was introduced in the 1950s, before Sprite followed in 1961, TAB in 1963 and Fresca in 1966.The international appeal of Coke was embodied by a famous 1971 commercial where a group of young people from all over the world gathered on a hilltop in Italy to sing ‘I’d Like to Buy the World a Coke’.
In 1985 Coca-Cola developed a new taste for Coca‑Cola, the first change in formulation in 99 years. The ‘New Coke’, was no popular. It soon became clear that the wider public had a deep emotional attachment to the original, and demanded for a return to the traditional formula. Critics called it the biggest marketing blunder ever. Coca‑Cola listened, and the original product was returned to the market as Coca‑Cola Classic. Before long, Coke began to increase its lead over the competition, a lead that continues to this day.
Question 1
- “Entreprendre” is the French root word for Entrepreneurship which is associated with commencing a business under uncertainties attendant with risks. Analyse the possible tendencies of Entrepreneurs under such conditions of risk?
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