Coke Inside the chairman’s office on the 25th floor of Coca-Cola’s stately headquarters in Atlanta, in the top left-hand drawer of his desk, Roberto Goizueta has for many years kept two charts. One describes Coca-Cola’s fundamental business: selling the concentrate that transforms fizzy water into Coke. The diagram plots the four reasons Goizueta adores the business: (1) Selling concentrate requires little capital; (2) it produces superb returns; (3) it demands minimal reinvestment; (4) it spills an ocean of cash. One day recently, Coca-Cola’s cerebral chairman and CEO was asked to pull out the second chart. This one illustrates PepsiCo’s altogether different strategy, which has involved pouring billions of dollars into capital-intensive businesses like restaurants. Goizueta slides open the drawer and riffles through the pa....

Number Of Pages: 17

Number Of Words: 4645

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