Free Essay

Coca Cola Business Analysis

In:

Submitted By hfa3165
Words 2591
Pages 11
COCA-COLA BUSINESS ANALYSIS PART II
Angel Hale
Mgt/521

Coca-Cola Business Analysis Part II

This paper will take a look at the financial health of the Coca-Cola Company in comparison to two of their competitors Pepsico & Nestle. As a potential investor, this information will help provide insight on the option to move forward, while looking at technological advantages and globalization effects on the company. At the end of this paper, you will be one step closer to deciding if the Coca-Cola company’s practices, financial & operational findings are in line with a potential investor’s requirement. It has often been said that business is about finding and exploiting advantages and the goal of any business is to maximize profits. As we look into the Coca-Cola Company as a potential investor some of the things to consider are: assets and liabilities, company track record, market position and future potential within the respective market. In general an investor wants to know how attractive current assets and future projects are in order to gauge how successful they may be. One of the first items to look into will be the financial standings for the company, not only will we review the current 2011 annual report, with regards to the balance sheet, cash flow and income statements. In order to understand how efficient the company is, we will also show the comparison between two other competitors within the same niche market: Pepsico & Nestle (see exhibits A, B & C). The first area we will look at will be the overall net profit for each company. Although the economy has been stagnant as it relates to consumer spending in some industries, we will consider three years of analysis to give a comparative advantage. Starting in 2009 Coca-Cola reported number’s in the millions for net profit of $6,824. This number increased by 1.73% to $11,809 in 2010. This compares to its competitor Pespico who only reported a 1.06% net profit increase year over year (2009 to 2010). Those respective numbers were again listed in millions and are $5,979 and $6,338. The Nestle Company presented a slightly complicated showing for their annual numbers which are based on a measure referring to ‘CHF’ units, or the Swiss franc currency table. Although the company provided figures in both CHF units it also breaks the report down into USD units as well, however it is unclear how the company designates or combines revenue. The final net profit number listed (in millions of CHF) for 2010 & 2011 were $8,777 and $9,487 which equates to 1.08% year over year increase. Both competitors showed year over year increases from 2009 thru 2011 except for Coca-Cola which reported a loss in net profit ending at $8,572. The annual report for the Nestle Company only reported figures for 2010 and 2011 respectively. The next area focuses on how overall net profit is reflective in the year end cash reserves held by the company. Cash reserves take into account the available cash flow after operating expenses and shareholder equity that can be used for repaying both short and long term debt. As always, cash is king and the more that a company has at the end of the day, the more attractive and potentially less of a risk. This risk is partially used for the purpose of weighing shareholder wealth, as well as by potential creditors when evaluating liquidity ratios. Although the Coca-Cola company reported a decrease in net profit from its 2010 number, cash reserves increased by 1.5%, ending at a $12,803 in 2011 (again in millions). Both competitors reported decreases in cash flow from 2011 to 2010. The Pepsico Company decreased cash reserves from $5,943 in 2010 to $4,067 and the Nestle Company also reported a decrease from$7,761 in 2010 down to $4,491. Companies tend to have good and bad years, decreases in cash flow can be justified by things such as global expansion, as well as internal decisions made to increase company technology to help aid in benchmarking efforts. Next we have to consider how cash reserves correlate into actual owners’ equity or shareholder equity. After all the operating costs have been cleared and external taxes have been paid, we need to assure that the shareholders are being compensated in the manner in which they want. This is reflective in shareholder equity, common stock and dividends payable. All three of the companies listed have been an industry leader in what’s considered a monopolistic group, so along with product differentiation, the next available resource to separate companies would be who has the best return on equity. The Coca-Cola Company for the past three years has paid out dividends to its shareholders with increases from 2010 of $24,799 to 2011 figures of $ 31,635, which average approximately 1.13% annually. This shows a consistent growth and stability with the company, even after the decrease in net profit, in other words sound internal management decisions are being made to solidify their position within the market. In looking at the other two competitors, the Pepsico Company has been inconsistent with the average dividend payout as well as the overall dollar at year end. Respectively in 2009, the company ended with $16,908 (million) in equity payouts, increased to $21,273 in 2010 and finally dropped back to $20,704 in 2011. As an investor, a possible question may arise as to what change occurred within the past 3-4 year period to justify the large swing in equity payout? Our final company: Nestle, although numbers are again only reported for the past two years, has also shown a large decrease in equity payout from year to year. In 2010, the company ended with $65,977 and in 2011 ended with $ 60,419 in equity. Again, as an investor the difference in the CHF vs. USD could have a bearing on this number, however; clarification and additional research would be needed to get a further understanding of the company’s accounting principles. All-in-all, three of the noted companies have reported earnings and would be viable investor choices, however; the Coca-Cola Company shows that its leading market edge is also supported with solid net profit, cash reserves and overall equity payouts. Moving to the overall financial health of the Coca-Cola Company, it is supported by the consistent financial numbers presented above. As a potential investor, there are no additional concerns that would be considered based on the key financial drivers listed. By looking at the key resources within the company, an investor can consider factors that contribute to the overall health of the company that involve net operating revenue, gross profit, operating income, income before taxes and net income per share. In the brief review completed above, we have seen a consistent gain in the Coca-Cola’s Company’s balance sheet, income statement, and cash flow statement. Technology is important in order to absorb the businesses performance market. While

Coca Cola is known as one of the most stimulating companies in the world, its expansion and growth worldwide as a company depends on the investment in technologies which will help further develop the companies’ vision. The company’s information technology (IT) staff is responsible for the monitoring of solutions and exceeding expected results. Other goals for technological advancements include the political side of the company that helps to back up political and federal committees. Those committees include: Coke Political Action Committee and Georgia Political Action Fund. Coca-Cola also expands their innovation to include their vending machines. The newer vending machines placed around malls and public places help reduce carbon dioxide and are less wasteful, these are called ‘freestyle dispensers.’ The company also reduces their product material by creating more eco-friendly and safe drinking portions for consumers to enjoy. The two competitors tend to follow the same form of advances to strengthen their brand by incorporating eco-friendly products that are made from bio-degradable materials, as well as creating a presence within the social media scene. Competition within the free market system as we know it is saturated with competitors offering similar products. As a company strategizes to gain more market shares and obtain organic growth, it has to consider globalization and the affects it can have on organizational goals. We define organic growth as growth within the existing business frame free from acquisitions and mergers. Organic growth is also apparent within foreign markets due to typically obtaining additional sales growth and new consumer bases thru expanding markets. As an example with the ever increasing economic growth within the Middle East and North Africa markets, the Coca-Cola Company has committed to invest 5 billion within those regions over the next 5 years. During a speech given at the World Economic Forum (WEF), the CEO of Coca-Cola, Muhar Kent, stated that, "the Middle East and North Africa, despite its challenges, is positioned to benefit from a booming youth population that's dynamic, resourceful and highly entrepreneurial. Ongoing demographic shifts can be a powerful and even irresistible tool in helping bring additional economic opportunity and foreign direct investment to the region." (Muhar Kent, 2011) This type of insight on behalf of the company supports the idea of globalization to sustain growth, and potential dollars the company is looking to invest will definitely help aid in this venture. Since its inception Coca-Cola has been innovative in its approach to marketing its brand. From 1905-1918 the company focused on developing the unique contour bottle to combat copycats, making itself more outstanding from the competitors. From 1919-1940 Coca-Cola introduces the six-pack, a convenient packaging that helped to revolutionize soft drink consumption; this helped to enable people to enjoy Coca-Cola anywhere. In 1941 thru 1959, the organizations introduced the elf-like Sprite to promote the use of the word “Coke”, making it easier to remember by consumers. Beginning in 1960 thru 1981 Coca-Cola thrilled the world with its exciting and dynamic advertising, the company ambitiously aimed at teaching the world to sing. They have also focused on the theme of refreshing the thirsty world through sports, which is supported by its long-standing association with athletic events including the Olympic Games and FIFA World Cup. Also, Coca-Cola has been constantly changing its slogan, from “Delicious and refreshing” to today’s “Life Begins Here.” (Coca-Cola 125 Years Booklet, 2011)
Competitors quickly followed within the industry to keep up with these novel benchmarking ideas. PepsiCo in turn practiced the marketing strategies similar to that of Coca-Cola. Pepsico started with an advertising strategy entitled “Exhilarating, Invigorating, Aids Digestion”. As time goes by, PepsiCo’s advertisements changed to more elaborate and well-known personal public figures. Famous racing car driver Barney Oldfield endorsed Pepsi in a newspaper as “a bully… drink refreshing, invigorating, a fine bracer before a race” (PepsiLegacy Book, 2005). Also, Pepsi promoted sales with the slogan, “Drink Pepsi-Cola. It will satisfy you”. Later on, they recognized that advertising could be a cornerstone of soft drink marketing and introduced a comic strip; “Pepsi & Pete” to promote Pepsi’s pricing advantage. In conclusion The Coca-Coal Company in review has shown consistent and steady growth both organically and in market presence. In c

Exhibit A: (Coca-Cola)

Year Ended December 31, 2011 2010 2009

(In millions except per share data)
NET OPERATING REVENUES $ 46,542 $ 35,119 $ 30,990
Cost of goods sold 18,216 12,693 11,088
GROSS PROFIT 28,326 22,426 19,902
Selling, general and administrative expenses 17,440 13,158 11,358
Other operating charges 732 819 313
OPERATING INCOME 10,154 8,449 8,231
Interest income 483 317 249
Interest expense 417 733 355
Equity income (loss) — net 690 1,025 781
Other income (loss) — net 529 5,185 40
INCOME BEFORE INCOME TAXES 11,439 14,243 8,946
Income taxes 2,805 2,384 2,040
CONSOLIDATED NET INCOME 8,634 11,859 6,906
Less: Net income attributable to noncontrolling interests 62 50 82
NET INCOME ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY $ 8,572 $ 11,809 $ 6,824
BASIC NET INCOME PER SHARE1 $ 3.75 $ 5.12 $ 2.95
DILUTED NET INCOME PER SHARE1 $ 3.69 $ 5.06 $ 2.93
AVERAGE SHARES OUTSTANDING 2,284 2,308 2,314
Effect of dilutive securities 39 25 15

AVERAGE SHARES OUTSTANDING ASSUMING DILUTION 2,323 2,333 2,329

CASH AND CASH EQUIVALENTS
Net increase (decrease) during the year 4,286 1,496 2,320
Balance at beginning of year 8,517 7,021 4,701
Balance at end of year $ 12,803 $ 8,517 $ 7,021

TOTAL EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY $ 31,635 $ 31,003 $ 24,799

Exhibit B: (Pepsico)

Fiscal years ended December 31, 2011, December 25, 2010 and December 26, 2009
(in millions except per share amounts) 2011 2010 2009
Net Revenue $ 66,504 $ 57,838 $ 43,232
Cost of sales 31,593 26,575 20,099
Selling, general and administrative expenses 25,145 22,814 15,026
Amortization of intangible assets 133 117 63
Operating Profit 9,633 8,332 8,044
Bottling equity income – 735 365
Interest expense (856) (903) (397)
Interest income and other 57 68 67
Income before income taxes 8,834 8,232 8,079
Provision for income taxes 2,372 1,894 2,100
Net income 6,462 6,338 5,979
Less: Net income attributable to noncontrolling interests 19 18 33
Net Income Attributable to PepsiCo $ 6,443 $ 6,320 $ 5,946
Net Income Attributable to PepsiCo per Common Share
Basic $ 4.08 $ 3.97 $ 3.81
Diluted $ 4.03 $ 3.91 $ 3.77
Weighted- average common shares outstanding
Basic 1,576 1,590 1,558
Diluted 1,597 1,614 1,577
Cash dividends declared per common share $ 2.025 $ 1.89 $ 1.775

Effect of exchange rate changes on cash and cash equivalents (67) (166) (19)
Net (Decrease)/Increase in Cash and Cash Equivalents (1,876) 2,000 1,879
Cash and Cash Equivalents, Beginning of Year 5,943 3,943 2,064
Cash and Cash Equivalents, End of Year $ 4,067 $ 5,943 $ 3,943

Total Common Shareholders’ Equity 20,704 21,273 16,908
Exhibit C: (Nestle)

[pic]

References
Coca-Cola.com, 2012, Complete 2011 Annual Report on Form 10-K of Coca-Cola, Available: http://www.thecoca-cola.com
Coca Cola Bottling Co. Consolidated SWOT Analysis, April 2012, Retrieved from EBSCOhost database
Nestle.com, 2012, Consolidated Financial Statements of the Nestle Group 2011, Available: http://www.nestle.com
Nickels, W. G., McHugh, J. M., & McHugh, S. M. (2010). Understanding Business (9th ed.), 4

Pepsi-Co.com, 2012, Annual report of Pepsi-co, 2012, Available: http://www.pepsico.com

Last Name, First Initial. Middle Initial (if there is one). (year). Name of article in sentence case: If there is a subtitle, it should also be in sentence case. Name of Journal in Title Case, volume(issue), first page-last page. Retrieved from name of database.
An example of a properly formatted reference is shown below.
Lee, H. W. (2005). The factors influencing expatriates. Journal of American Academy of Business, 6(2), 273-279. Retrieved from ProQuest database.

Please note: When citing University of Phoenix Library databases, you must use the capitalization and spelling for these databases exactly as they appear in the Library. For example, – EBSCOhost database – ProQuest database – EIU Viewswire – InvestText Plus

Similar Documents

Premium Essay

Business Analysis of Coca-Cola Company

...Business Analysis Part III: The Coca-Cola Company Karen Mace MGT 521 June 11, 2012 Elaine Nissley Business Analysis Part III: The Coca-Cola Company The Coca-Cola Company is a successful global food and beverage organization. In 2012, The Coca-Cola Company was ranked 59 by Fortune 500 magazine [ (CNNMoney) ]. This was an increase from the previous ranking of 70. DiversityInc magazines ranked the organization as number 12 on the magazine’s top 50 companies for diversity in 2011 [ (The Coca-Cola Company) ]. The Coca-Cola Company has been the dominant leader in the global soft-drink industry through the 20th century [ (The Coca-Cola Company) ]. The Coca-Cola Company has been influenced by different economic trends, such as lower disposable consumer income and the importance of conservation. In a recession, consumers will often reduce their spending on non-essential items such as carbonated beverages so that their disposable income can be used to cover the essential household expenses. Carbonated beverages have been viewed as non-essential items because they lack any nutritional value. Coca-Cola has positioned the company to sustain this economic trend by offering products focused on a nutritional aspect such as flavored waters and reduced sodium sports drinks. Consumers can validate their spending on these items because they are healthy and “good for them”. Coca-Cola has addressed the importance of conservation by reducing the size of the bottle. The reduction in size...

Words: 2650 - Pages: 11

Premium Essay

Business Case Analysis- Coca-Cola Company

...Business/Financial Analysis Team Project Name Institution Business/Financial Analysis Team Project 1.0 Executive Summary The Company for analysis is the Coca-Cola Company. It operates in the soft drinks industry. This company is known to be among the oldest companies that manufacture non-alcoholic beverages. Among the main competitors of Coca-Cola is Pepsi. Coca-Cola is a multinational that has subsidiaries in almost every corner of the globe. It is a publicly traded company with a current market price for its stock at 46.39 % as at 31st March 2016 which translates to a deviation of 0.41%.An analysis of Coca-Cola Company reveals that Coca-Cola is currently grappling with issues related to its market share, quality of its soft drinks and production processes. These problems have in turn decreased their market share and its competitive advantage. Competitors have taken this as the advantage to increase their sales and revenue. The notable competitors for Coca-Cola Company are Pepsi, Nestle S.A, Dr. Pepper Snapple group inc., and Nestle Waters France. This study undertakes an analysis of Coca-Cola's industry with an aim of finding the root causes of these problems and how Coca-Cola can overcome them. Michael Porter’s five forces model, ratio analysis, analysis of market capitalization, business model, and strategy are some of the main approaches that this study applies in analyzing the Coca-Cola Company. Nevertheless, the Coca-Cola Company remains competitive, and investors...

Words: 4864 - Pages: 20

Premium Essay

Coca Cola Swot Analysis

...Coca Cola SWOT Analysis: |Strengths |Weaknesses | |Brand equity/image & recognition |Credit rating | |Product distribution and worldwide network |Customer concentration, particularly in the US (Wal-Mart accounts for more | |Solid financial performance |than 10% of Coca Cola's business in the US) | |One of the world's most recognized brand | | |Product diversification (water, juices, soft drinks, sport drinks, etc) | | |Opportunities |Threats | |Bottled water growth |Commodity prices growth | |Acquisitions of smaller players |Image perception in certain parts of the world (i.e., Colombia) | |Health consciousness growth, specially of baby boomers ...

Words: 2481 - Pages: 10

Premium Essay

Business Strategy

...business strategy Individual Assignment Table content Content Page number Acknowledgement……………………………………………………………….……………1 Executive summary ……………………………………………...………………………..…..2 Introduction 4 Task 01 – Report 6 (LO 1.1) Strategic context 6 (LO2.3) Stakeholder analyzing 9 (LO2.1) Organizational audit 11 Porter’s Value Chain for Coca Cola Company 11 VRIO Framework 14 (LO 2.2) Environmental audit 16 PEST analysis 16 Porter’s five forces analysis 18 SWOT analysis for Coca Cola Company 20 (LO1.3) Different planning techniques 22 Product life cycle 24 BCG Matrix 25 GE Matrix 26 (LO1.2) Criticisms of strategic planning 27 (LO 3.1) Ansoff’s Growth Strategies 29 (LO3.2) Future strategy for the Coca Cola Company 33 (LO4.1) Roles and responsibilities for strategy implementation 34 (LO4.2) Resources requirements for new strategy (Water purification system) 36 (LO4.3) Time scale to monitor the strategy 37 Conclusion 38 References 39 List of Figures IV. IV. Figure Page Number Figure 01 – Stakeholder analyzing 9 Figure 02 - Porter’s Value Chain 11 Figure 03 - VRIO framework 15 Figure 04 - PEST analysis 16 Figure 05 - Porter’s five forces analysis 19 Figure 06 - BCG Matrix 25 Figure 07 - GE Matrix 26 Figure 08 - Ansoff’s Growth Strategies 29 Figure 09 - Ansoff’s Growth Strategies for Coca Cola 32 Figure 10 - Time scale……………………………………………………………………......37 Introduction In this assignment describe the strategies of...

Words: 8189 - Pages: 33

Premium Essay

Cocacola

...CONTENTS OVERVIEW OF COCA-COLA 3 HISTORY 3 MANAGEMENT 3 DISTRIBUTION 5 SIZE OF COMPANY 5 LOCATIONS OF FACILITIES & CORPORATE HEADQUARTERS 6 STRATEGIC GOALS AND OBJECTIVES 6 COCA-COLA’S VISION 7 PRODUCT LINES, CUSTOMERS, AND MARKET SECTORS 8 FINANCIAL ANALYSIS 9 FINANCIAL ANALYSIS INTRODUCTION 9 HORIZONTAL ANALYSIS 10 VERTICAL ANALYSIS 12 LIQUIDITY ANALYSIS 14 EFFICIENCY ANALYSIS 15 SOLVENCY ANALYSIS 17 PROFITABILITY ANALYSIS 19 MARKET ANALYSIS 21 CONCLUSION 23 APPENDIX A 24 COCA-COLA’S SUBSIDIARIES 24 APPENDIX B 26 FINANCIAL DOCUMENTS 26 COCA-COLA CONSOLIDATED BALANCE SHEET 26 COCA-COLA INCOME STATEMENT 27 COCA-COLA STATEMENT OF CASH FLOWS 28 COCA-COLA’S STATEMENT OF SHAREHOLDERS’ EQUITY 29 PEPSI CONSOLIDATED BALANCE SHEET 30 PEPSI CONSOLIDATED INCOME STATEMENT 31 PEPSI STATEMENT OF CASH FLOWS 32 PEPSI CONSOLIDATED STATEMENT OF EQUITY 34 VERTICAL AND HORIZONTAL ANALYSIS 35 REFERENCES 40 OVERVIEW OF COCA-COLA Since its creation in 1886, the Coca-Cola Company has become one of the leading beverage entities throughout the world. In fact, Coca-Cola products are now sold in more than 200 countries. Coca-Cola’s business is centered on its production of beverage concentrates, syrups, and finished products. It is responsible for producing and distributing four of the top five nonalcoholic sparkling beverage brands across the globe. These include Coca-Cola, Diet Coke, Fanta, and Sprite. The Coca-Cola Company’s distribution...

Words: 6691 - Pages: 27

Premium Essay

Cola Wars

...Cola Wars Tonya Hall October 1, 2012 Executive Summary Coca-Cola Company is a leading manufacturer, distributor, and marketer of non-alcoholic drinks in the United States and all over the world. It is a multinational company that has market presence in almost all countries of the world. The company has also diversified from its initial soft drinks to manufacture fruit juices and other non-soda beverages. Its objective has been to maintain its global leadership in the supply of beverages and other non-soda beverages through maintaining high quality production methods that ensure that the name and products remain a household brand. Coca-Cola Company I. Current Situation The Coca-Cola Company is an American multinational beverage corporation and manufacturer, retailer and marketer of non-alcoholic beverage concentrates and syrups. It is one of the most recognized soft drink brands in the world. The company is best known for its flagship product Coca-Cola, invented in 1886 by pharmacist John S. Pemberton in Columbus, Georgia. The Coca-Cola formula and brand was bought in 1889 by Asa Candler who incorporated the Coca-Cola Company in 1892 (“Coca-cola management”, 2012). Asa Candler heavily promoted his product through the distribution of coupons for complimentary glasses of Coca-Cola and the distribution of souvenirs depicting the company trademark. Within three years of incorporation, Asa Candler announced that the beverage was being consumed in every state and territory...

Words: 3235 - Pages: 13

Premium Essay

Strategic Analysis

...STRATEGIC ANALYSIS OF THE COCA-COLA COMPANY Dinesh Puravankara B Sc (Dairy Technology) Gujarat Agricultural UniversityJ 991 M Sc (Dairy Chemistry) Gujarat Agricultural University, 1994 PROJECT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION In the Faculty of Business Administration Executive MBA O Dinesh Puravankara 2007 SIMON FRASER UNIVERSITY Summer 2007 All rights reserved. This work may not be reproduced in whole or in part, by photocopy or other means, without permission of the author APPROVAL Name: Dinesh Puravankara Degree: Master of Business Administration Title of Project: Strategic Analysis of The Coca-Cola Company. Supervisory Committee: Mark Wexler Senior Supervisor Professor Neil R. Abramson Supervisor Associate Professor Date Approved: SIMON FRASER UNIVEliSITY LIBRARY Declaration of Partial Copyright Licence The author, whose copyright is declared on the title page of this work, has granted to Simon Fraser University the right to lend this thesis, project or extended essay to users of the Simon Fraser University Library, and to make partial or single copies only for such users or in response to a request from the library of any other university, or other educational institution, on its own behalf or for one of its users. The author has further granted permission to Simon Fraser University to keep or make a digital copy for use in its...

Words: 3360 - Pages: 14

Premium Essay

Financial Research Report: the Coca - Cola Company

...Financial Research Report: The Coca - Cola Company FIN 534 – Assignment #1 07 December 2014 Coca Cola Introduction: Coca Cola Company is an American, multinational company that is infamous for its beverage products. The company is commonly referred to as coca cola. Invented and patented in 1886 and 1887, respectively, by an American pharmacist named John Pemberton. Pemberton sold the company in 1889 to Griggs Candler who incorporated it in 1892. For more than 70 years, coca cola had been the sole beverage of the company. Although international expansion was tested in 1928, expansion of the company in the United States did not start until late 1955 (World of Coca-Cola, 2014). This expansion into other beverage flavors as well as diet and caffeine free choices has allowed the company to become a market leader in the beverage industry. The Company has found success in appealing to the needs and desires of a broad consumer base. Their customers derive from various backgrounds, lifestyles, demographics and age ranges. Currently, the Coca Cola brand expands in the integrated form of more than 500 brands of beverages across more than 200 nations worldwide. As markets changed and competition grew, Coca Cola decided to introduce Diet Coke and later followed with several others to include, but not limited to, Coca-Cola Zero, Coca-Cola Cherry, Sprite, and Schweppes. As of today, it is estimated that the Coca Cola Corporation has more than 3500 beverages spread across a...

Words: 2936 - Pages: 12

Premium Essay

Coca Cola

...Company Name: Coca Cola "At the Coca-Cola Company we strive to refresh the world, inspire moments of optimism and happiness, create value and make a difference." ( theCoca-colacompany.com) Introduction: The Coca-Cola Company, is an multinational American Corporation that manufactures, retail and markets beverages and over 500 other brands in over 200 different countries, but it is best known for its flagship product Coca-Cola. rough estimates indicate that the world drinks around 1.8 billion servings of coca-cola each day, which is roughly a tenth of the world's population. From its birth in 1886, in the hands of pharmacist John Stith Pemberton, Coca-Cola or Coke as it is favorably called world over, has come a long way. Currently, Coca-Cola is a symbol of Western Culture in every nook and corner of the world. Coca-Cola was originally invented and intended to be a medicine before it was bought out and marketed by Asa Griggs Candler, a businessman whose clever and strategic marketing tactics led Coca-Cola to its current position of world dominance in soft drinks. Coca-Cola has remained a popular soft drink world over to this very day. The popularity influence has risen to a point where coke has been spotted being sold in the desert's of Africa instead of water. The popularity and market capitalization of Coca-Cola has come a long way, to a point where the term Coca-Cola-ization has been termed, which refers to the symbiotic transformations among youth and global culture...

Words: 2633 - Pages: 11

Premium Essay

Coca Cola Company

...Coca-Cola Company A Multinational Enterprise The Coca-Cola Company indeed is an MNE because it operates a headquarters in Atlanta, Georgia with other local operations in nearly 200 countries around the world. Coke succeeded as a multinational because of its understanding and appeal to global commonalities (Rugman, A. M. & Collinson, S., 2006). The firm has implements three principles that are assigned to make it more locally responsive, the three principles are: Coca-Cola's three principles * Principles * Description * Operates on a local scale The company modifies its operations to meet local need and institutes a strategy of "think local, act local". Country-by-country basis: It focuses itself as a pure marketing company and pushing its brands on a regional basis and local basis rather than a worldwide basis. Integrates with local environment: Coke is now working to become a model citizen by reaching out to local communities and getting involved in local activities Background of the Coca-Cola Company A carbonated beverage called Coca-cola or often referred as Coke is the world's largest beverage company and the best-known brand in the world. Coca-Cola Company has operated for 124 years since 1886. Coca-Cola was invented by a pharmacist in Atlanta, John Pemberton and he has become one of the global market leaders in the beverage industry (iloveindia.com). The Coca-Cola Company offers over 400 different brands in more than 200 countries worldwide. Coca-Cola...

Words: 3163 - Pages: 13

Premium Essay

Strategic Management Case Analysis

...Management of Coca Cola Company” PRESENTED TO: Sir Naveed m khan PRESENTED BY: * RAFIA ALAM * Irsa afzal * Saira Urf Sana * Sana Anjum * Hina Majeed MBA-6A Dated: 22nd May, 2013 Acknowledgement We have the pearl of our eyes to admire blessing of the compassionate and omnipotent because the words are bound, knowledge is limited and time is short to express His dignity. It is one of the infinite blessings of almighty ALLAH that He bestowed us with potential and ability to complete the present training and make a material contribution towards the deep oceans of knowledge. This report reflects the efforts of few people who assist us in its preparation. First we avail this opportunity to bow our head before ALLAH almighty in humility who given us the wisdom and perseverance for completing this piece of report. We invoke peace for Holy Prophet Muhammad (P.B.U.H) who is forever torch. We feel highly privilege to ascribe the most and ever burning flame of my gratitude and deep scene of devotion to the “Sir Naveed M. Khan” who taught us “Strategic Management” with heart and also gave a guideline to this report and guides right from the beginning till the completion of this report. Than we are grateful to Mr. Tabassum Mumtaz (HR Manager) at Coca Cola in Karachi who guides us about their organization, its products their strategies, financial positions and also guide us about the strengths, weaknesses, opportunities and threats that Coca Cola is facing and...

Words: 4646 - Pages: 19

Premium Essay

Coca Cola Financial Analysis

...Financial Analysis Project – Final Paper Jennifer M. Harding Cardinal Stritch University MBA 521 August 28th, 2014 Purpose of Analysis All managers need to understand where value comes from in their firm. The purpose of this analysis is to identify the financial strategy and performance of this particular publicly traded company. The process of understanding the risk and profitability of a company by analyzing reported financial info, especially annual and quarterly reports are vital to identifying the company’s overall financial performance. I wanted to analyze Coca Cola because the company has so much history and is one of the most recognizable brands in the world. I have always enjoyed researching food and beverage companies because of my background in the food service industry. I have always been fascinated by brand power of food and beverages and the corporations that are behind particular brands and products. Company Background and History The Coca-Cola Company is an American multinational beverage corporation and manufacturer, retailer, and marketer of nonalcoholic beverage concentrates and syrups. Headquartered in Atlanta, Georgia, the company is best known for its flagship product, Coca-Cola, invented in 1886 by pharmacist John Stith Pemberton in Columbus, Georgia. The Coca-Cola formula and brand was bought in 1889 by Asa Griggs Candler (December 30, 1851 - March 12, 1929), who incorporated The Coca-Cola Company in 1892 (Wikipedia, 1). The company operates...

Words: 6362 - Pages: 26

Premium Essay

Financial

...overtake the Coca-Cola Company as the top power in their market? The research that has been gathered is from secondary sources that are mainly from creditable online sources. Charts and graphs will also be used to visually show information on the Coca-Cola Company. A strength, weakness, opportunity, and threat analysis will help determine if Coca-Cola’s stock is a sturdy investment for a ten-year period. The results will include potential growth, stamina as a company, global competition, and statements of earnings from the past.  We hope this analytical report will help you determine your decision on whether you should invest in the Coca-Cola Companies stock for a ten-year period. My company is confident that we have done the necessary research and utmost analysis needed to help the confidence of your final verdict.  Sincerely, Patrick McDonald Owner of Freedom Energy Freedom Energy Company 1206 Mulholland Drive  Malibu, California 91301 TABLE OF CONTEXTS EXECUTIVE SUMMARY iv INTRODUCTION 1 • Previous • Next [pic] • Add to Library   (0) • Download • Print • Report this Essay • Facebook • Twitter • Google+ • Send • RATE THIS DOCUMENT • 4.5 • 1 • 2 • 3 • 4 • 5 DOCUMENT DETAILS • Views: 7 • Words: 2712 RELATED ESSAYS Coca-Cola Swot Analysis ...SWOT Analysis Being the leading manufacturer, distributor and... 3 Pages Swot Analysis of Coca-Co ...

Words: 2457 - Pages: 10

Premium Essay

Environmental Factors

...mission of the Coca-Cola Company is to refresh the world. In order to refresh the world, Coca-Cola has to reach the world and distribute the refreshments throughout the world. The Coca-Cola Company has done just that since its establishment in 1886. Since establishing themselves in the beverage market, Coca-Cola has earned more than $15 billion in revenue, employed more than 150,000 employees, and has products in over 200 countries. Coca-Cola has had to research the global and domestic markets to ensure a need for their product. With the research, comes compliance in all regulations when distributing or creating the product in global and domestic areas. Companies have their own procedures in place to guide employees through the ever-changing needs of consumers. These procedures provide an example to the employees regarding the conduct of the employees as business is conducted within global and domestic markets. The procedures also help in the decision-making of company executives as they explore expanding business in the global market. The Coca-Cola Company is a perfect example of a company using both domestic and international marketing. Marketing’s importance in the business world increases day by day. For Coca-Cola to market at a domestic level, they must promote their local products to local consumers in local markets and satisfy the needs of the local consumers. For Coca-Cola to market at a global level, they must promote multinational business all over the world...

Words: 1117 - Pages: 5

Premium Essay

Company Profile Essay

...The Coca-Cola Company July 24, 2011 CONTENTS Abstract……………………………………………………………………………………………3 Coca-Cola: An Introduction.……………………………………………………………………....4 Financial Analysis………………..……………………………………………………………..…6 Competition Analysis: Pepsi………………………………………………………………………9 Recommendations………………………………………………………………………………..13 Conclusion…………………………………………………………………………………….…15 References………………………………………………………………………………………..16 Abstract Many international corporations began as small domestic ventures. As businesses grew, corporations saw the many possibilities brought on by expanding operations. Companies began to expand by opening franchises in various cities, yet they knew there was more potential for success if they were to expand their operations even further. Thousands of companies, such as Coca-Cola, chose cities internationally to gain more revenue. The purpose of a corporation is to maximize profits for all shareholders involved. Opening firms abroad allowed Coca-Cola to gain worldwide recognition, which gave them a competitive advantage over other soft drink makers. Now, Cola-Cola is not only recognized, but it is one of the most consumed soft drinks both within the United States and in cities across the globe. Coca-Cola took a huge risk in expanding their operations. However, their success proves that multinational corporations need to choose the right market to venture into and choose marketing techniques that appeal to their consumers. Coca-Cola: An Introduction In 1866...

Words: 3706 - Pages: 15