In April 2000, Coca Cola announced the restructuring of its business structure. The company has set up four business divisions, including America, Asia, Europe, Africa and new operatinenterprises. The head of each division will report directly to daft, chairman and general manager of Coca Cola.
Daft’s first act in office was to order four business divisions to stop advertising at the same time. Daft’s decision was strongly opposed by the advertising manager on the grounds that Coca Cola’s sales performance would be seriously affected. Daft insists on his own opinion. He believes that Coca Cola has become a well-known beverage brand all over the world. There is no need to spend a lot of advertising funds. The saved advertising expenses can be used to invest in raw materials.
However, in daft’s first year in office, Coca Cola’s total sales fell by 35%, and there is a continuous decline. Daft’s leadership has been seriously questioned by the group’s senior management. In this way, daft has to resign. The analysis from the four business segments also failed to satisfy daft. For this reason, daft was puzzled. He began to doubt his practice. Is the view of the advertising manager right?
One evening, daft walked to Atlanta’s Olympic square for a walk. See a teenager on a skateboard, sweating to the drink shop to buy drinks to quench thirst. He took a drink from the shelf at will, and Coca Cola stood in its place.
Daft was a little surprised, so he asked the teenager why he didn’t choose Coca Cola? “So many drinks, why should I choose Coca Cola?” the teenager replied Daft was even more curious, and wanted to ask some more questions, but the skateboarder boy bowed forward and left with his right foot on the ground.