“The Coca-Cola Company is the number-one seller of soft drinksin the world. Every day an average of more than 1.5 billionservings of Coca-Cola, Diet Coke, Sprite, Fanta and other productsof Coca-Cola are enjoyed around the world.The company has theworld’s largest production and distribution system for soft drinksand sells more than twice as many soft drinks as its nearestcompetitor. Cola-Cola product are sold in more than 200 countriesaround the globe.
For several reasons, the company believes it will continue to growinternationally. One reason is that disposable income is rising.Another is that outside the United States and Europe, the world isgetting younger. In addition, reaching world markets is becomingeasier as political barriers fall and transportation difficultiesare overcome. Still another reason is that the sharing of ideas,cultures, and news around the world creates market opportunities.Part of the company mission is for Coca-Cola to maintain theworld’s most powerful trademark and effectively utilize the world’smost effective and pervasive distribution system.
In June 1999, Coca-Cola Russia introduced a 200-milliliter Cokebottle in Volgograd, Russia, in a campaign to market Coke to itspoorest customers. This strategy was successful for Coca-Cola inother countries such as India. The bottle sells for 12 cents,making it affordable to almost everyone. In 2011, Coca-Cola enjoyeda 25% volume growth in Russia, including an 18% increase in unitcase sales of Coca-Cola.
Today, Coca-Cola beverages are produced and sold in Russia by thecompany’s authorized local bottling partner, Coca-Cola HBC Russia,based in Moscow. The Coca-Cola business system directly employsapproximately 4000 people in Russia, and more than 70% of allsupplies required by the company are sourced locally.
“Suppose that in one of the plants of The Coca-Cola Companytraditional bottles of 20 ounces are filled. The Quality Controldepartment randomly selects 150 bottles and tests the bottles forfill volume. The descriptive statistics are summarized below. Isthere enough evidence to suggest that the production line of 20ounces should be stopped either because over or under filling?”
Standard Error: 0.008
Standard Deviation: 0.101
Sample Variance: 0.013
Confidence Level (95.0%)
Lower Bound: 19.983
Upper Bound: 20.016