Coca Cola Owes its Origin to a Sole Proprietor!
The product that has given the world its best-
known taste was born in Atlanta, Georgia, on 8th May, 1886.
Dr John Stith Pemberton, a local pharmacist, produced the
syrup for Coca-Cola, and carried a jug of the new product
down the street to Jacobs' Pharmacy, where it was sampled,
pronounced "excellent" and placed on sale for five cents a
glass as a soda fountain drink.
Dr Pemberton never realised the potential of
the beverage he created. He gradually sold portions of his
business to various partners and, just prior to his death in
1888, sold his remaining interest in Coca-Cola to Asa G
Candler. An Atlantan with great business acumen, Mr Candler
proceeded to buy additional business rights and acquire
complete control. On 1st May, 1889, Asa Candler published a
full-page advertisement in The Atlanta Journal, proclaiming
his wholesale and retail drug business as "sole proprietors of
Coca-Cola... Delicious. Refreshing, Exhilarating. Invigorating."
Sole ownership, which Mr Candler did not actually achieve
until 1891, needed an investment of $ 2,300. It was only in
1892 that Mr Candler formed a company called The Coca-Cola
Corporation.
On the basis of above case, answer of the following
questions.
1) "Mr Candler proceeded to buy additional business rights and
acquire complete control". Which feature of sole
proprietorship is highlighted in the given statement?
2) Dr Pemberton, as a sole proprietor, decided to sell portions of
his business to other partners, while Candler, as a sole
proprietor, decided to convert his sole proprietary business
into a company form of organisation. Which merit of sole
proprietorship is brought forward by the above instances?
3) Why do you think Mr. Candler formed a company called
‘The Coca – Cola Corporation’ ?
Answers
Answer:
In July 1886, pharmacist John Stith Pemberton from Columbus, Georgia invented the original Coca-Cola drink, which was advertised as helpful in the relief of headache, to be placed primarily on sale in drugstores as a medicinal beverage, Pemberton continued mixing experiments and reached his goal during the month of May, the new product as yet unnamed nor a carbonated drink, was ready for the market and was made available for sale.[4] Pemberton's bookkeeper, Frank M. Robinson, is credited with naming the product and creating its logo.[5] Robinson chose the name Coca-Cola because of its two main ingredients (coca leaves and kola nuts) and because it sounded like an alliteration. John Pemberton had taken a break and left Robinson to make and promote, as well as sell Coca-Cola on his own. He promoted the drink with the limited budget that he had, and succeeded.[6]