Delegation is the key for success

The Coca-Cola Company only produces a syrup concentrate, which it sells to bottlers throughout the world, who hold Coca-Cola franchises for one or more geographical areas. The bottlers produce the final drink by mixing the syrup with filtered water and sweeteners, and then carbonate it before putting it in cans and bottles, which the bottlers then sell and distribute to retail stores, vending machines, restaurants and food service distributors

The Company operates a worldwide franchise system supplying syrups and concentrates to over 1,200 bottling operations, (there are more than 350 in the US alone!) which thus involves local companies and suppliers in the 200 countries in which Coca-Cola is sold.

The bottling companies distribute the world’s favourite brand using the most sophisticated technology and distribution networks available. The Company supports its international bottler network with sophisticated marketing programmes seeking to guarantee the Company’s brands are available where anyone is seeking refreshment. Coca-Cola’s bottling system is the largest and most widespread production and distribution network in the world.

The Coca-Cola Company isn’t one giant company; it’s a system of small companies. This pattern helps it scale new products, new communications, new equipment, etc. Designing for this pattern is critical; when it wants to scale fast, it can.

 

Never doubt the talent of people from poorest countries

Coke’s been in Africa since 1928, but most of the time they couldn’t reach the distant markets, because they had a system that was a lot like in the developed world, which was a large truck rolling down the street. And in Africa, the remote places, it’s hard to find a good road. But Coke noticed something — they noticed that local people were taking the product, buying it in bulk and then reselling it in these hard-to-reach places. And so they took a bit of time to learn about that. And they decided in 1990 that they wanted to start training the local entrepreneurs, giving them small loans. They set them up as what they called micro-distribution centers, and those local entrepreneurs then hire sales people, who go out with bicycles and pushcarts and wheelbarrows to sell the product. There are now some 3,000 of these centers employing about 15,000 people in Africa. In Tanzania and Uganda, they represent 90 percent of Coke’s sales.

Start a company from when you’re young

Sheldon Adelson is worth $29.7 Billion he is a Chairman and CEO of Las Vegas Sands

His father drove a taxi, and his mother ran a knitting shop.

He began his first business at 12 years old. Tiring of sharing the proceeds of the newspapers he peddled — he bought — and later sold, “the rights” to sell papers on a specific Boston street corner from the youth who had been garnering the larger share of Adelson’s earnings. To accomplish that end, he borrowed $200 from his uncle, who in turn borrowed the money from his credit union, with the requirement that his nephew make principal and interest payments “every Tuesday night at 6 p.m.,” said Adelson. When he needed to borrow again to control a second corner, his uncle praised him for paying his debt and lent him money again.

Warren Buffett advice on spending money

His advice to young people: Stay away from credit cards and invest in yourself.

“I just naturally want to do things that make sense. In my personal life too, I don’t care what other rich people are doing. I don’t want a 405 foot boat just because someone else has a 400 foot boat.”

The sad truth is that our ever-sophisticated advertising industry has conditioned our mind to find happiness from consumption by spending our hard earned money on the possessions that never bring us lasting happiness. We spend our life-energy on those possessions that we seldom use. We worry about making payments for a luxury car that sits in our garage collecting dust only for the right to brag about it in an occasional social gathering. Keeping up with the Joneses is the worst epidemic among those who should never contemplate that notion in the first place. If a man who can possibly buy a nation with his cash never espouses the mantra of “more the better”, I need to learn not to spread my legs beyond the reach of the blanket. We are conditioned to spend money before we earn it. We are sold on the fake happiness of “Buy now, pay later dearly” – It’s nothing more than buying possessions that we cannot afford. Paying for purchases with cash creates awareness towards the impulse buy. I have also started red lining items on the credit card statement that I consider useless spending. All of these efforts have built my awareness towards my impulse purchases. I have been using mantra of – “less is more” to simplify every aspect of my life. It’s a work in progress but the results are astounding.

Successful people are not being driven by money

I was holding entrepreneur exchange at Babson College of Business School in Boston. I asked an audience of 300 students: “How many do you think about entrepreneurship?” Everybody raise the hand. Then I asked them, “ How many of you were or want to be in the entrepreneur business for money?
Nobody’s ever guessed how many people raise their hand. I’ll tell you, one. That is the answer to the question “what is the reason, why people want to be entrepreneurial? My answer, it is the sense of achievement, not the money.

Don’t market a product, market an experience.

The third component of Coke’s success is marketing. Ultimately, Coke’s success depends on one crucial fact and that is that people want a Coca-Cola. Now the reason these micro-entrepreneurs can sell or make a profit is they have to sell every single bottle in their pushcart or their wheelbarrow. So, they rely on Coca-Cola in terms of its marketing, and what’s the secret to their marketing? Well, it’s aspirational. It is associated that product with a kind of life that people want to live. So even though it’s a global company, they take a very local approach. Coke’s global campaign slogan is “Open Happiness.” But they localize it. And they don’t just guess what makes people happy; they go to places like Latin America and they realize that happiness there is associated with family life. And in South Africa, they associate happiness with seriti or community respect.

Sometimes the inventor cannot be the marketer

Coca-Cola was invented in 1886 by a pharmacist John Pemberton. He fought in the Civil War, and at the end of the war he decided he wanted to invent something that would bring him commercial success.

Usually, everything he made failed in pharmacies. He invented many drugs, but none of them ever made any money. So, after a move to Atlanta, Pemberton decided to try his hand in the beverage market.

Coca-Cola was originally intended as a patent medicine.   Pemberton claimed Coca-Cola cured many diseases. Coke did not do so well in its first year. And to make matters worse, Pemberton died in August 1888, meaning he would never see the commercial success he had been seeking.

Coca-Cola was bought out by businessman Asa Griggs Candler, whose marketing tactics led Coke to its dominance of the world soft-drink market throughout the 20th century.

How did Sheldon Adelson get back from losing $25 billion

Sheldon Adelson knows a thing or two about poverty, having grown up the son of a taxi driver in Dorchester, Mass.

“I came from a very poor family, there were six people, four children, and my parents, one bed in the room…and my parents were poor.

Living at the bottom may be one reason Mr. Adelson has been so resilient in his climb back to the top. As Wealth Report readers might recall, Mr. Adelson lost more than 90% of his fortune in 2008 when markets tanked and credit evaporated.

His losses amounted to more than $1,000 a second, or more than $4 million a day. So how did he feel losing more money in one time than anyone else history? “So I lost $25 billion,” he said. “I started out with zero.”

In other words, no big deal. He also kept his cool as his company teetered on the edge of financial ruin. When many investors were abandoning ship, Mr. Adleson and his family invested $1 billion of their own money.

There is “no such thing as fear–not to an entrepreneur,” “Concern, yes. Fear, no.”

Still, Mr. Adelson’s story reminds us of how background can matter when it comes to building and maintaining wealth. Self-made billionaires often are confident that if they did it once, they can do it again. And having grown up poor, Mr. Adelson also knows what is like to have nothing, so he isn’t as fearful of temporary losses.

“An entrepreneur is born with the mentality to take risks, though there are several important characteristics: courage, faith in yourself, and above all, even when you fail, to learn from failure and get up and try again.”

Ralph Lauren: When you really believe in yourself, others will follow.

After that I wanted to sell to Bloomingdale’s, which was the kingpin in New York. When I finally had the chance to show the buyer the ties, he said, “Ralph, I like the patterns—but you gotta make them a quarter of an inch narrower. And I want you to take your name off and put on Sutton East”—that was their private label. I said to the guy, “Gary, I’m dying to sell to Bloomingdale’s, but I’m closing my bag because I can’t take my name off. And I can’t make the tie a quarter of an inch narrower.”

Later that day after I left Bloomingdale’s, I told some colleagues what had happened. They said, “Ralph, who cares if you have to change your tie?” I said, “No, no—I’m not going to do it,” and I continued to sell to other stores. Six months later, Bloomingdale’s called me again. “Listen,” the buyer said, “we’re gonna put in a whole rack and case of your ties!”

Ralph Lauren: Follow your dream

Oprah: Was it always your dream to create this empire?

Ralph: I didn’t have a vision as in, This is where I’m going. I had a vision as in, “This is what I love to do.” The ties, as simple as they were, looked very different from other ties. They were wide and unusual. I never said to myself, “I’m going to be the greatest.” I just wanted to do my own thing. I’d worked for a tie company, and I said, “Can we do this kind of tie? I think we could sell them in New York.” This older guy who ran the company said, “No—the world is not ready for Ralph Lauren.” That was a big statement to say to a 26-year-old kid. The guy laughed at the idea of doing your own thing. I left there and started out of a drawer in the Empire State Building. I used to go out and find rags and make them into ties, then I’d carry them to stores and sell them. People started saying, “More—we want more.” That was so exciting for me. A guy from Neiman Marcus came to my office one day and said, “Let me look at your ties. I’ve been seeing them around.” Then he said, “Would you send these to the main buyer?” At the time, I wasn’t big on flying—I had little kids, and I wasn’t that experienced in jetting all over the place. But I got my little rags together, got on a plane, and flew there, because I knew the buyer wouldn’t understand my ties unless I explained them to him in person. I came home with an order for 100 dozen! That was my first big success. I thought, “I can do this—I’m in business.

Bill Gates: have guts to approach things differently

I’m still trying to innovate in my 50s, but I have to say some of the new and different ways of looking at the world, you have to have a fairly blank mind where you’re willing to see things that are quite different. You often have to assume other breakthroughs. See that those are coming. In our case, knowing the miracle of the microprocessor and this Gordon Moore prediction of exponential improvement allowed us to not worry about the size or the memory or the speed, but just dream of almost infinite capacity and how could software take advantage of that. An innovator is probably a fanatic, somebody who loves what they do, works day and night may ignore normal things to some degree and therefore be viewed as a bit imbalanced. Certainly in my teens and 20s, I fit that model.

Judy Faulkner: Not interested in living lavishly

Judy Faulkner is a founder of Epic Systems. She is worth $2.5 billion

She is a press-shy software programmer built Epic–a private health care company that sells medical-records software–from the ground up, launching in 1979 with about $70,000 in capital.
Her company’s success has made her a multi billionaire, but the 72-year-old has never been one to splurge. According to reports, Faulkner has had only two cars in the past 15 years and has lived with her husband in the same Madison, Wisconsin, suburb for nearly three decades.
In a May 2015 letter announcing her Giving Pledge membership and a promise to donate half of her fortune to charity, Faulkner wrote, “I never had any personal desire to be a wealthy billionaire living lavishly,” and said that, instead, she’ll use her money to help others gain access to “food, warmth, shelter, healthcare, education.”