...Coca-Cola Supply Chain Management & Coca-Cola Facebook Analysis Dr. R. LeWayne Johnson Importance of Standardization in Supply Chain Management Supply Chain Management (SCM) according to May School of Business at Texas A&M University is defined as the strategic management of supply chain activities to maximize customer value and achieve a sustainable includes all the activities that must take place to get the right product into the right consumer’s hands in the right quantity and at the right time – from raw materials extraction to consumer purchase. SCM focuses on planning and forecasting, purchasing, product assembly, moving, storage, distribution, sales and customer service. SCM professionals are involved in every facet of the business process as they strive to achieve a sustainable competitive advantage by building and delivering products better, faster and cheaper.The importance of an organization’s supply chain is driven by the degree that the flow of goods from one destination to another destination is cost effective and timely to the business needs. An additional metric that determines the importance of an organization’s supply change is if the organization realizes profit from the supply chain. Supply Chain consists of many trading partners, from raw materials to finished products. A typical supply consists of several collaborative units such as (a) supplier, (b) manufacturer, (c) wholesaler and, (d) retailer. each party consists of 5 logistics activities...
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...Coke Analysis On October 18, 2015 The Coca-Cola Company is an American multinational beverage corporation and manufacturer, retailer, and marketer of nonalcoholic beverage concentrates and syrups. Known best for it’s Coca-Cola soft drink. According to Forbes, Coca Cola Co. rank high on several business lists to include: #81 Innovative Companies, #4 World's Most Valuable Brands, #93 Global 2000, #198 in Sales, #73 in Profit, #282 in Assets, #32 in Market value and #255 America's Best Employers (Forbes, 2015). In this paper, I will be evaluating Coca Cola Co.’s financial standing by utilizing their balance sheet, income statement, cash flows, and ratios. Return on Assets Return on assets is a profitability ratio. Richard Loth of Investopedia states the return on assets (ROA) ratio illustrates how well management is employing the company's total assets to make a profit. The higher the return, the more efficient management is in utilizing its asset base (Investopedia, 2015). The equation for return on assets: return on assets = income/assets. Both the income and assets are found on the balance sheet. Coca-Cola Co. reported a net income of (in thousands) $7,098 and total assets of $92,023 in December 31, 2014. This led to a return on assets of 7.71%. May 31, 2014 a reveals net income of (in thousands) $8,584 and total assets of $90,055 making the the return of assets 9.53%. Industry standards dictate a return on assets over 5% is considered good. Coca-Cola Co. experienced...
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...Concordia University MBA 501-Foundations Fall 2014 Term Company Analysis Coca-Cola Company Presented by xxxxx Submitted to xxxxxxx On 10/12/2014 The Coca-Cola Company is a multinational, nonalcoholic beverage company that offers its products through a network of “company-owned or controlled bottling and distribution operators, as well as through independent bottling partners, distributors, wholesalers, and retailers” (Yahoo Finance, Retrieved 2014). The Coca-Cola Company was founded by Asa Griggs Candler in 1886 and is headquartered in Atlanta, Georgia (Yahoo Finance, Retrieved 2014). The following is an analysis of Coca Cola Company. The evaluation will present financial ratios and a common-sized income statement. This analysis will provide insight of Coca Cola’s financial performance. Additionally, it will summarize an overall performance based on the ratios and financial statement. Coca Cola’s return on assets for year 2002 is 12% and 16% in 2003, as illustrated in Figure 1. The ratio increases over a year. The ratio is high and is assumed to be making good use of its assets (Loth, 2014). The net income for year 2002 is $3,050 and $4,347 in 2003. The total assets for 2002 is $24,406 and $27,342 in 2003. The ratio computation is the net income divided by the total assets is the return on assets. Figure 1. Chart showing the return on assets for Coca Cola. From “Coca-Cola Company and Subsidiaries Consolidated Balance Sheets,” by William...
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...Financial Analysis XACC/280 March 25, 2011 Abstract Accounting is the process of communicating, recording, and identifies the economic events of a company to interested parties. In order to communicate these economic events, an individual has to know how to analyze and interpret the information that is reported in financial reports such as balance sheets, statement of cash flow, income statement, and retained earnings statement. Every item, in a financial statement whether asset or liability, has a significance part. Generally accepted accounting principles (GAAP) is a set of standards developed by the accounting professionals for companies to follow when reporting economic events. The basic accounting equation is assets equal liabilities plus the stockholder’s equity. Purpose of Paper The purpose of the following financial analysis between PepsiCo and Coca Cola is to show how the annual numbers are important to stockholders and other individuals that may be interested in buying stocks with a company. Based on the percentages and figures that I come up with, I will decide on which company I would choose to invest in and why. It is important for investors to dig deep in a company’s financial statements and analyze all the numbers. I will discuss three recommendations for each company on how to improve the increase or decrease the current financial situation. Breakdown of Different Ratio’s Within the financial analysis...
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...Coca-Cola vs. Pepsi-Cola Introduction The soft drink industry has been a profitable one in spite of the “cola wars” between the two largest players. Several factors contribute to this profitability, and these factors also help to show why the profitability of the concentrate production side of the industry has been so much greater than the bottling side. Over the years the concentrate producers have experimented with different levels of vertical integration, and although it has not necessarily been clear which have been more successful historically, some decision criteria can be developed to help determine if and when complete vertical integration is necessary. Profitability in the soft drink industry As analysis using Porter’s five forces shows why the soft drink industry has been so profitable. Suppliers and buyers have not had more power over the industry than it has had over them. Internal rivalry, while seeming intense, has not eroded the profitability of the industry because of its concentration and the fact that the two major players have primarily competed on the basis of advertising and promotion and not price. Entry is difficult both for reasons of scale and the strong brand identity of the current major players. Substitutes have not been close enough to take away significant market share, although the emergence of new substitutes may pose the largest threat to the industry’s profitability. Suppliers and Buyers Suppliers to the soft drink industry...
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...Coke or Pepsi, what would you choose? xxxxxx XACC/280 xxxxxx teacher name Everyone in the civilized world recognizes two companies as kings of the soda pop, Pepsi-Cola and Coca-Cola. These two companies have battled for over one hundred years to be top dog in the beverage business. In 2005, Coca-Cola (Coke) led the race by just over 7% in net income over Pepsi-Co (Pepsi). This essay will compare these two beverage giants side by side and analyze the financial statements of both as well as making suggestions about ways the each company may be able to improve their earnings. Pepsi-Cola was born in North Carolina, in 1898, as the invention of a pharmacist named Caleb Bradham. He put together various combinations of juices, syrups, and spices to try to come up with a new drink to serve to his customers at the soda fountain in his pharmacy. His drink, originally called “Brad’s drink” was soon renamed Pepsi-Cola (using a combination of the names of two of the ingredients Pepsin and Kola nuts). The drink was incredibly successful and soon took off beyond Bradham’s wildest expectations. In 1902, the Pepsi-Cola company was officially formed and the brand was patented. The beverage quickly moved from a soda fountain product to a bottled beverage (PepsiCo, Inc, 2010). The second half of this duo is Coca-Cola. Coca-Cola was invented in 1886, twelve years before Pepsi. It was created by Doctor John Pemberton, also a pharmacist...
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...profitable? An industry analysis through Porter’s Five Forces reveals that market forces are favorable for profitability. Defining the industry: Both concentrate producers (CP) and bottlers are profitable. These two parts of the industry are extremely interdependent, sharing costs in procurement, production, marketing and distribution. Many of their functions overlap; for instance, CPs do some bottling, and bottlers conduct many promotional activities. The industry is already vertically integrated to some extent. They also deal with similar suppliers and buyers. Entry into the industry would involve developing operations in either or both disciplines. Beverage substitutes would threaten both CPs and their associated bottlers. Because of operational overlap and similarities in their market environment, we can include both CPs and bottlers in our definition of the soft drink industry. In 1993, CPs earned 29% pretax profits on their sales, while bottlers earned 9% profits on their sales, for a total industry profitability of 14% (Exhibit 1). This industry as a whole generates positive economic profits. Rivalry: Revenues are extremely concentrated in this industry, with Coke and Pepsi, together with their associated bottlers, commanding 73% of the case market in 1994. Adding in the next tier of soft drink companies, the top six controlled 89% of the market. In fact, one could characterize the soft drink market as an oligopoly, or even a duopoly between Coke and Pepsi, resulting in...
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...Edition: 1.1 February 2002 Distance Education Course ML–302.5 Marine Terminal Operations Unit 1 Marine Terminals The three lessons in this unit will cover the topics of: • the role and function of marine terminals • terminal development • operational planning • civil engineering aspects of terminal design. Module B: Certificate in Maritime Logistics Diploma in Shipping Logistics—Jamaica Maritime Institute 1−1 Unit 1: Marine terminals Marine Terminal Operations Unit 1 ...........Activities and expectations Agenda To complete this unit, you will: • Read and study the text in this unit and any assigned passages in the Student Reader. • Apply the information by performing the Activities • Test yourself by doing the Practice Exercises and checking your answers. Resources There is no textbook for this course. All the information you require is in this Study Guide. In addition, your Student Manual lists some books that you may wish to read to expand your knowledge. Learning outcomes When you have completed this unit you will be able to: • • Explain some of the considerations in equipment selection. • Discuss the needs for storage areas. • Discuss safety and emergency response considerations. • 1−2 Describe the role and functions of marine terminals. List the broad categories of studies that are needed in planning a new terminal. Module B: Certificate in Maritime Logistics (Course...
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...Pepsi & Coke Analysis Financial Analysis of Pepsi and Coke Abstract In this report the analysis for the year 2005 and 2004 of financial position of Pepsi Inc and Coca Cola have been stated below. Techniques which are used for the analysis are ratios, horizontal and vertical analysis. How the company can improve its financial position and better its performance is given in this analysis. .Analysis of PEPSI |Ratio Analysis |27-Jun | |26-Jun | | |Current Ratio |1.11 | |1.28 |x | |Quick Ratio |0.87 | |0.95 |x | |Net profit Margin |12.52% | |14.39% | | |Return on Assets |12.85% | |15.05% | | |Account Receivable Turnover |9.99 | |9.76 |x | |Inventory turnover |8.37 | |8.22 |x | |Total assets turnover |1.03 | |1.05 |x | |Interest times earned ratio |23.13 | |31.49 |x | |Debt to Equity ratio |1.23 | |1.07 |x | |Debt to total assets ratio ...
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...advertising to make a profit. Coke and Pepsi employed the following technique to make the soft drink industry profitable: marketing (Yoffie 21). Coke and Pepsi have dominated the market on soft drinks by offering a product that people enjoy, at a price that the average Joe can afford, and by utilizing marketing strategies and campaigns. Through effective leadership, an environment was created which enabled success and profitability as well as creative strategies and campaigns. Both Coke and Pepsi developed and deployed aggressive marketing campaigns which began generations ago by fighting trademark infringements and continued with cleaver and aggressive sales techniques. By branching into other flavors and types of drinks via mergers and acquisitions, both Coke and Pepsi generated additional revenue from more than just their core beverage. The fierce competition the two Cola Giants created, ensured profitability and world recognition of the American developed carbonated soda. 2. Compare the economics of the concentrate business to that of the bottling business: Why is the profitability so different? The concentrate business has been historically dominated by large magnates such as Coca-Cola and Pepsi. Data, from the case study, detailing the industry breakdown indicates that Coke held 51% of market share in 2003 while Pepsi and Cadbury Schweppes held 22% and 6% of international market shares for that year respectively (Yoffie 22). Analysis of this data indicates...
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...these two has dominated the markets worldwide then they will receive universal recognition for their very different but similar products. I believe that there are many other manufacturers and distributors of beverages in the world there really is no other company that can compete in my mind. Pepsi and Coca-Cola not only do make soda drinks, but they also produce flavored water, spring water, and some energy drinks. We all know that Pepsi is best known for Pepsi and that Coca-Cola is best known for Coke, but because of their great marketing ability and because of this they are able to target people from all around the world. Pepsi and Coca-Cola have great marketing and low prices that make it easy for people to buy their products no matter how much these people earn or where they live at in the world. I would like to start by examining both company’s income statements and balance sheets to see how each company is doing financially. I will also like to perform vertical and horizontal analysis from their annual report of financial data. There are a vast amount of manufacturers and distributors in this market, but Pepsi and Coca-Cola have managed to stay in the number one spot for quite some time now. These two companies have not only dominated the market here in the United States but they have dominated the worldwide market. Pepsi and Coca-Cola have followed a plan that has kept them above and beyond the market of just soft drinks but have taken the market in a whole new...
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...these two has dominated the markets worldwide then they will receive universal recognition for their very different but similar products. I believe that there are many other manufacturers and distributors of beverages in the world there really is no other company that can compete in my mind. Pepsi and Coca-Cola not only do make soda drinks, but they also produce flavored water, spring water, and some energy drinks. We all know that Pepsi is best known for Pepsi and that Coca-Cola is best known for Coke, but because of their great marketing ability and because of this they are able to target people from all around the world. Pepsi and Coca-Cola have great marketing and low prices that make it easy for people to buy their products no matter how much these people earn or where they live at in the world. I would like to start by examining both company’s income statements and balance sheets to see how each company is doing financially. I will also like to perform vertical and horizontal analysis from their annual report of financial data. There are a vast amount of manufacturers and distributors in this market, but Pepsi and Coca-Cola have managed to stay in the number one spot for quite some time now. These two companies have not only dominated the market here in the United States but they have dominated the worldwide market. Pepsi and Coca-Cola have followed a plan that has kept them above and beyond the market of just soft drinks but have taken the market in a whole new...
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...Situational Analysis and Marketing Plan: Coca-Cola Steve Lenart MKTG 730: Marketing Analysis Foundation (F14) I. History The Coca-Cola Company may be one of the world's most recognized companies and it all started back in 1886. Dr. John S. Pemberton was a pharmacist in Atlanta, Georgia. He created a “soft drink” that utilized flavored syrup combined with carbonated water (Coca Cola History, 2014). The first people that tried it considered it, “excellent.” Now that he knew he had a winning recipe, he needed a clever name. He was discussing names with his bookkeeper, Frank M. Robinson, when they came upon a breakthrough. The term Coca-Cola comes from two of the drink's ingredients. The recipe called for “coca” from the coca plant, and also used “kola” nuts. Just like that, the name of the product was born. Pemberton passed away in 1888, only two years after creating Coca-Cola. Before is death, he sold portions of his business to many parties and the majority of the business to Asa Candler. Mr. Candler was responsible for distributing the product beyond Atlanta, Georgia. Demand quickly grew, and a soda fountain owner is credited with first implementing a bottling system for Coca-Cola. The unique contoured bottle was trademarked in 1977. The company is still based out of Atlanta, Georgia, but by today's standards is an extremely large, multi-national conglomerate that has tremendous reach throughout the globe. It would be very foolish when discussing...
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...MRKT 310 Principles of Marketing What is Strategic Marketing? Diet Coke October 04th, 2015 1. Creating Value for Customers: Value is the benefit buyers receive that meets their needs (Principles of Marketing, 2015). Customers do not want only the products and services but want what those products and services will do for them as well. Companies create value for its customer by creating, communicating, delivering, and exchanging values. They do this by understanding their customers, describing the product and making the product available to the customers, For example, diet coke, consumers buy them for reduced calories. The consumers should be able to receive the reduced calorie it promised and at a good price compared to the alternative and at a convenient location. It should also be worth the price paid compared to other brands. It should also have the label describe the content of the calorie without the customers searching to hard to find it. 2. Role of customer in the company’s strategic plan: The coca cola mission statement is, “To refresh the world, to inspire moments of optimism and to create value and make a difference”. This mission statement creates a close link and communication with customers. The understanding of the consumers need leads the company’s strategic plan towards satisfying those needs. They survey the environment and conduct a research of the current and potential customers. A customer knowing that a company’s mission centers...
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... 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 the Coca-Cola Company. Because of this module can understand important of...
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