...Valuing of Coca Cola Stock and Analysis Andrew Burgoyne, James Desimone, Bailey Fowble, Hewei Huang, Ryan Leist, Maria Sandoval University of South Florida FIN 4414 Abstract Taking the role as Jessie Jones, we will analyze whether to recommend the Coca Cola stock to potential clients or current clients that do not have it in their portfolio. By using the Capital Asset Price Model (CAPM), Dividends Discount Model (DDM) and the Price/Earnings (P/E) ratio we will come to a conclusion. Background The Coca Cola Company, which is based out of Atlanta, Georgia, is a leader in the global soft drink market. It owns subsidiaries in over 195 countries around the world but has always remained local. According to the most recent Value Line (1997) report, revenues and profits were expected to continue to grow for the rest of the year but still be weaker than the current year. They forecasted that Coca Cola would meet their goal of increasing profits by 15% each year for the next 3-5 years due to the expanding soft drink market. Jessie Jones, an Investment Advisor with a major brokerage firm, wondered whether she should recommend the Coca Cola stock to any of her potential clients or current clients that did not already have it in their portfolios. Jessie noticed that the current price of Coke slipped to $58 per share with a price/earnings ratio of 35x and dividends yield of 1%. The methodologies used to value the stock of Coca Cola are: CAPM, DDM and P/E ratio. Assumptions ...
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...where that are so many different competitors, Coca- Cola continue to dominate the industry with their innovative products and strategies. However, that could change in the blink of an eye. There are many issues and situations that could affect their competitive edge and their profitability, one being that in reality they are in a Monopolistic competition with other competitors. Monopolistic competition can be defined as a market structure where there are many that sell distinguished products that set them apart from the rest and has limited barriers to enter the industry. According to Colander (2013), “Because there are numerous sellers it gives monopolistic competition its competitive edge. However, product differentiation gives it its monopolistic aspect. In this viable market, the merchandise that are sold aren’t standardized, as in perfect competition; they are slightly different. Irish Spring soap is different from Ivory, which in turn is different from Yardley’s Old English.” The same knowledge can be applied for the soft drink industry. Coca Cola is different from Pepsi, as it is also different from 7up & etc. Coca Cola has one of the largest corporations globally and through each of their global divisions, their goal remains to maximize their growth and increase profitability for their investors. Marketing, advertising, pricing, technology, and valuing their consumers need are all key essentials that will aid Coca Cola in this industry. Although there are many different...
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...Assignment 1 The Coca Cola Company is a multinational corporation with a portfolio of more than 3,500 beverages, from diet and regular sparkling beverages to still beverages such as 100 percent fruit juices and fruit drinks, waters, sports and energy drinks, teas and coffees, and milk-and soy-based beverages which are sold in stores, restaurants, and vending machines in more than 200 countries. Based on Interbrand's best global brand 2011, Coca-Cola was the world's most valuable brand. Originally intended as a patent medicine when it was invented in the late 19th century by John Pemberton, Coca-Cola was bought out by businessman Asa Griggs Candler, whose marketing tactics led Coke to its dominance of the world soft-drink market throughout the 20th century. The company produces concentrate, which is then sold to licensed Coca-Cola bottlers throughout the world. The bottlers, who hold territorially exclusive contracts with the company, produce finished product in cans and bottles from the concentrate in combination with filtered water and sweeteners. The bottlers then sell, distribute and merchandise Coca-Cola to retail stores and vending machines. Such bottlers include Coca-Cola Enterprises, which is the largest single Coca-Cola bottler in North America and Western Europe. STRENGTHS | WEAKNESSES | World’s leading brand Robust revenue growth in three segment | Negative publicity Decline in cash from operating activities...
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...Coca-Cola: International Business Strategy For Globalization Dr. Michael Ba Banutu-Gomez, Professor, Management and Entrepreneurship, William G. Rohrer College of Business Rowan University, Glassboro, NJ ABSTRACT The purpose of this research was to analyze the efficiency of global strategies. This paper identified six key strategies necessary for firms to be successful when expanding globally. These strategies include differentiation, marketing, distribution, collaborative strategies, labor and management strategies, and diversification. Within this analysis, we chose to focus on the Coca-Cola Company because they have proven successful in their international operations and are one of the most recognized brands in the world. We performed an in-depth review of how effectively or ineffectively Coca-Cola has used each of the six strategies. The paper focused on Coca-Cola's operations in the United States, China, Belarus, Peru, and Morocco. The author used electronic journals from the various countries to determine how effective Coca-Cola was in these countries. The paper revealed that Coca-Cola was very successful in implementing strategies regardless of the country. However, the author learned that CocaCola did not effectively utilize all of the strategies in each country. Key Words: Coca-Cola, International Business, Strategy, Globalization, International Marketing, Labor Relations, Distribution, Diversification, Management, Channels, Costs, Gains and Collaboration. INTRODUCTION...
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...2012, London.UK. COCA-COLA: International Business Strategy for Globalization Michael Ba Banutu-Gomez William G. Rohrer College of Business, Rowan University, USA Key Words International Differentiation Strategy, Global Strategy, International Marketing Strategy, Culture in International Marketing Strategy, Coca-Cola Strategy, International Distribution Strategy, Choosing Distributors and Channels, The Challenge of Distribution, Hidden Costs And Gains In Distribution, International Collaborative Strategy, International Labor Relations and Management Strategy, and International Diversification Strategy. Abstract The purpose of this research was to analysis the efficiency of global strategies. This paper identified six key strategies necessary for firms to be successful when expanding globally. These strategies include differentiation, marketing, distribution, collaborative strategies, labor and management strategies, and diversification. Within this analysis, we chose to focus on the Coca-Cola Company because they have proven successful in their international operations and are one of the most recognized brands in the world. We performed an in-depth review of how effectively or ineffectively Coca-Cola has used each of the six strategies. The paper focused on Coca-Cola's operations in the United States, China, Belarus, Peru, and Morocco. The author used electronic journals from the various countries to determine how effective Coca-Cola was in these countries...
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...Coca-Cola Company Marketing Plan [pic] [pic] Beth Dougherty Terri Meunier Shadeequah Curry August 3, 2012 Table of Content I. Executive Summary (Terri Meunier) II. Organizational and Product Overview (Terri Meunier) II.1 Organizational Description II.2 Vision, Mission, and Goals/Objectives II.3 Product Description III. Market Analysis (Beth Dougherty) III.1 Market Definition III.2 Competitive Analysis III.3 Environmental Forces III.4 Market Segmentation IV. Marketing Strategies (Shadeequah Curry) IV.1 Target Market(s) Selection IV.2 Product Portfolio Mix IV.3 Product Positioning Strategy IV.4 Sales Support Strategies I. Executive Summary The Coca Cola corporation is a beverage company and is defined to be the most well known trade mark in the world, and it is justly so. The Company owns or licenses and markets more than 500 nonalcoholic beverage brands, primarily sparkling beverages, but also a variety of still beverages, such as waters, enhanced waters, juices and juice drinks, ready-to-drink teas and coffees, and energy and sports drinks. It owns and markets a range of nonalcoholic sparkling beverage brands, which includes Coca-Cola, Diet Coke, Fanta and Sprite. The Coca Cola products appeal to a wide range of people throughout the world from all races, genders, and ages. Coca Cola is well known for its worldwide...
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...“MARKET SURVEY OF RIGHT EXECUTION FOR COCA COLA“ PROJECT REPORT 2009 Submitted for the partial fulfillment of the requirement for the award Of MASTER OF BUSINESS ADMINISTRATION SUBMITTED BY NITIN TYAGI 0823170410 UNDER THE SUPERVISION OF External: Mr. Alok Agarawal (Area Sales Manager) Internal: Mr. Neeraj Kumar (Lecturer) Department of Management R.D.ENGINEERING COLLEGE, DUHAI, GHAZIABAD 1 DECLARATION I here by declare that this project report prepared in lieu of a compulsory paper for the partial fulfillment of Management of Business Administration (HR and Marketing) is my original work which I have submitted in Coca Cola to my guide Mr. Neeraj Kumar. No part of it has been submitted to any other university or organization. All the information and data in my project are authentic to the best of my knowledge and taken from reliable sources. Nitin Tyagi 2 ACKNOWLEDGEMENT Survey is the team project, while my name is on the cover page of this project, literally many of people have contributed to this summer training Project report. Every work requires a commitment but this commitment goes in rain when there is no guidance. I am extremely thankful to Mr. SAMEER MANDAL (Sr. Sales Executive) under whose able guidance I have worked on this survey & for his willing and every available cooperation through out the project. Last but not the least; I acknowledge with thanks the valuable suggestions of Mr. Sandeep Yadav & all my friends and all of my wishers...
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...Diligence Report The Coca-Cola Company AC 600 Professor: John Kocikowski Keller Graduate School of Management 10/30/2011 Table of Contents Industry Overview 3 Corporate Overview 5 Organization and General Corporate Issues 6 Treasury 8 References 14 Executive Summary The diversity at the Coca-Cola Company is evident with their presence in more than 200 counties. They feel that they are empowered within their business structure as well as the communities they serve because of their differences. Their attribute their success to their consistent values. They understand that their future growth is dependent upon their ability to develop a worldwide team that is rich in its diversity of people, cultures and ideas. Knowing that diversity is not limited to the internal structure of an organization, Coca-Cola has used this same approach regarding their suppliers. Through their supplier diversity program they are building relationships with minority and women owned businesses by giving them equal access to procurement opportunities. Coca-Cola plays a major player in its industry, not only in the U.S, but also all over the globe. Coke is single handedly the most popular soft drink anywhere, beating out its competition, Pepsi Co. Overseas, Coke has established its empire from South America to Africa to all of Asia and Europe. Coke is the world's top soft-drink company. The Coca-Cola Company owns four of the top five soft-drink brands (Coca-Cola, Diet Coke, Fanta...
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...Indian Institute of Management Kozhikode Valuation of Brand “Coca-Cola” Project Report, Valuations and Real Options Submitted to: Professor Abhilash Nair GROUP 1, Term V 1. Harshit Boob (PGP/15/143) 2. Saurav Agarwal (PGP/15/319) 3. Siddhartha Roy (PGP/15/321) Valuation of Brand “Coca-Cola” 2012 Contents Executive Summary....................................................................................................................................... 3 COCA-COLA Company ................................................................................................................................... 4 Coca-Cola Brand ............................................................................................................................................ 6 Relevance of the Study ................................................................................................................................. 6 Why Coca-cola .............................................................................................................................................. 7 Objective of the Study .................................................................................................................................. 8 Literature Review .......................................................................................................................................... 8 Data Source .............................................................................
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...Toyota (Chapter 1) Overview. This case concerns the systems used by Toyota to become the third largest automobile manufacturer in the world. The case illustrates how this organization strives to serve customers and achieve a profit. The case intentionally emphasizes features of Toyota's manufacturing system, rather than its marketing strategies per se, to show how the whole organization is focused on serving customer wants and needs, not just the marketing department. Suggestions for Discussion Questions 1. In what ways is Toyota's new-product development system designed to serve customers? There are a number of features to this system that make it customer oriented. The Toyota system responds more quickly than competitors, allowing the company to correct any mistakes and react to market trends faster than competitors. The system has a chief engineer responsible for the product from design to marketing. This may allow consumer research to function as a direct input into engineering specifications rather than become a secondary concern after the product is designed. Since the corporate philosophy is to serve customers, consumer inputs are more likely to be used develop better new products. 2. In what ways is Toyota's manufacturing system designed to serve customers? There are a number of features in Toyota's manufacturing systems that are designed to serve customers, including the following features. Employees, even on the assembly line, are trained to consider their...
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...COCA COLA CASE STUDY. INTRODUCTION A global perspective is a matter of survival for businesses. Strategic management is the process of specifying an organization's objectives, developing policies and plans to achieve these objectives, and allocating resources so as to implement the plans. The Coca-Cola Company (Coca-Cola) is a leading manufacturer, distributor and marketer of Nonalcoholic beverage concentrates and syrups, in the world. The company owns or licenses more than 400 brands, including diet and light beverages, waters, juice and juice drinks, teas, coffees, and energy and sports drinks. The company operates in more than 200 countries. Coca-Cola Enterprises is the world's largest marketer, producer and distributor of Coca- Cola products. It operates in 46 U.S. states and Canada, and is the exclusive Coca-Cola bottler for all of Belgium, continental France, Great Britain, Luxembourg, Monaco and the Netherlands. Coca-Cola is the non alcoholic bottled beverages. SWOT Analysis Internal Strengths -Popularity -well known -branding obvious and easily recognized -A lot of finance -customer loyalty -International Trade Weaknesses -Word of mouth -lack of popularity of many Coca Cola’s brands -Most unknown and rarely seen -result of low profile or nonexistent advertising -health issues Opportunities -many successful brands to pursue -advertise its less popular products -buy out competition. -More Brand recognition External Threats -changing healthconsciousness attitude...
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...Introduction Coca-Cola is a brand that is in almost every household in the world and some point in time be it an icy cold drink, or one of their other products they strive not only to make profits but to be seen as a leader in diversity. This paper will show you some of the reasons that Coca-Cola has indeed done both make huge profits, and became a leader in diversity by using Globalization, technology, innovation, diversity, and ethics to become one of the largest companies in the world. Internal and external factors, and how they affect the four functions of management (planning, organizing, leading, and controlling). There are several internal and external factors to consider as Coca-Cola continues to produce and achieve its successes and its effects on the functionality of the company. Serving as one of the biggest soft drink manufacturers in the world, Coca-Cola has to consider many factors to continue to be one of the biggest household name brands today. Internal Factors Coca-Cola’s managerial functions are essential to the company’s continued success. The different layers of management must plan the daily production routines and organize the many different new or last-minute tasks for the employees to accomplish. The different layers of management need to have a good sense leadership and control their perspective areas in case of any conflicts, misunderstandings, or hic-ups that may arise from within. Sample situations and techniques to resolve these situations...
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...1.0 Diversity Diversity is generally defined as acknowledging, understanding, accepting, valuing, and celebrating differences among people with respect to age, class, ethnicity, gender, physical and mental ability, race, sexual orientation, spiritual practice, and public assistance status (Esty, et al., 1995). 2.0 Cultural diversity in workplace As the world becomes more global, it is more likely that the next person sitting close to you “belongs not to just to a different faith, but to the other part of the world as well”( Loveleena Rajeev, 2011 Buzzle.com). In our world today, where businesses or markets transcend all boundaries, cultural diversity in workplace needs to be properly understood to ensure a successful organization. In order to understand cultural diversity in workplace, it’s important to know that diversity refers to people who are culturally, racially and ethnically different from other. In this sense, people that belong to different demographic make ups and the life associated with that difference. It is also a term that not limited to physical appearances, but the ways we communicate, manage and think. There are some challenges in cultural diversity in workplace, like the rightness in conflict, judging others based of their upbringing, circumstances and religious beliefs. And also their varying ways of interpreting key words and valuing things in different ways. But there are many solutions to those problems, such as creating a common understanding among...
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...Coca-Cola Inc. Financial Analysis & Valuation Table of Content Executive Summary and Financial Inputs 2 5 Force Analysis 3 Strategies to Create and Sustain Competitive Advantage 3 Accounting Analysis 5 Ratio Analysis 5 Executive Summary In our analysis of Coca-Cola Inc., we estimate an Enterprise Value of $71.3B and an Equity Value of $60.9B, or a value per common share of $25.16. Given the current share price of $44.28, our recommendation for the stock is a “SELL”. Listed below are our key assumptions for the above valuation as well as the conclusions drawn from the analysis of financial statements that led to these assumptions. Key Estimates and Assumptions: * The estimates for financial inputs for the explicit period 2005 through 2009 are as follows: % | 2005 | 2006 | 2007 | 2008 | 2009 | Sales Growth | 5% | 5% | 5% | 5% | 5% | Cost Of Goods Sold % | 36% | 36% | 36% | 36% | 36% | Selling & Administrative Expenses % | 37% | 37% | 37% | 37% | 37% | NFA/Revenues | 89% | 89% | 89% | 89% | 89% | WCR/Revenues | 0% | 0% | 0% | 0% | 0% | * Percentages applied for the explicit 5-year period are largely in-line with the performance ratios that Coca-Cola experienced during 2003 and 2004. * Over-performance Period: This time period represents a scenario where Coca-Cola will continue to enjoy a competitive advantage, resulting in positive NPV investments through the forecasted horizon. ...
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...Culture Challenges at Coca Cola Final Group Project of Organisation Planning and Design Akshit Jauhari 15PGPIM05 Devadatt Gholap 15PGPIM12 Ishaan Sharma 15PGPIM16 Piyush Arora 15PGPIM21 Sakshi Jain 15PGPIM43 Ujjwal Singh 15PGPIM44 TABLE OF CONTENTS 1) Introduction---------------------------------------------------------------------------------------------2 2) Mission & Vision---------------------------------------------------------------------------------------3 3) Culture at Coca Cola----------------------------------------------------------------------------------4 4) Culture Issue at Coca Cola---------------------------------------------------------------------------5 5) Cultural Change to power innovation------------------------------------------------------------6 6) Teaching Notes-----------------------------------------------------------------------------------------8 7) References----------------------------------------------------------------------------------------------14 INTRODUCTION The Coca-Cola Company, a beverage company is the manufacturer, distributor, and marketer of non-alcoholic beverage concentrates and syrups. It is best known for its flagship product Coca- Cola, invented by pharmacist John Stith Pemberton in 1886. Asa Candler who incorporated The Coca-Cola Company in 1892 bought its formula and brand in 1889. Besides its flagship Coca-Cola beverage, Coca-Cola currently offers more than 400 brands in over...
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