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Coca Cola and Crown Mixed Alcohol Beverage

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Coca Cola and Crown Mixed Alcohol Beverage

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Coca Cola and Crown Mixed Alcohol Beverage
People have been drinking Coca Cola since 1886. Every day 1.7 million Coca Cola soft drinks are bought worldwide. However, there has not been a studied of how many people drink Coca Cola it is easy to say that several million people drink Coca Cola every day (Coca Cola Company, 2010). According to eMed Expert (2013), “People drink Coca Cola because, it is tasty, it is everywhere, the convenience of “Grab- n Go,” soda habits, and caffeine addiction has a part in why soda is consumed”. Because several million people drink Coca Cola the corporation is considering developing a new proposed product. Coca Cola thought since an estimate of 130.6 million people drink alcohol, Coca Cola will be teaming up with Crown to make a pre-made mix Coca Cola and Crown alcoholic beverage. Crown has already agreed to the conditions that Coca Cola has thought of and what is in stake for them. Coca cola has to take into consideration what factors affect demand, supply, and equilibrium prices. Coca Cola also has to discover who are their competitors, potential customers, and buyers. The next step Coca Cola has to figure out what issues or opportunities they may face from the effects of long-term profitability with this new product such as price elasticity of demand, technological innovation, relationship between the amount t of labor and capital of the law of diminishing marginal productivity, and cost structure. The third step is to find the factors affecting variable costs that include productivity and others that change the supply of and demand of labor, and fixed cost. Finally Coca Cola has to make any recommendation of how their corporation can maximize their profit – making potential and how to compete in the new market.
History of Coca Cola
Factors that affect demand, supply, and equilibrium prices/Market for the new product
Issues or opportunities that affect the product
Factors affecting variable and fixed costs
Recommendations
The recommendations on how Coca Cola can maximize the profit-making potential. Coca Cola has to find the marginal revenue and marginal cost, which gives the maximize profit- making potential. Marginal revenue is the change in total revenue associated with a change in quantity (Colander, Chapter 14, 2010). Marginal cost is the change in total revenue cost associated with a change in quantity (Colander, Chapter 14, 2010). Coca Cola found the profit maximizing level by making the marginal cost equal marginal revenue by finding the level of output. Coca found a competitive cost to sell the beverage to consumers by making a high profit. This company has the control over the cost is a un served market with no competitors that is against us.
In summary as a team, we had to select a potential competitive organization and a product in that organization. We choose Coca Cola for our company. Coca Cola has been around since 1886 and has the world's leading manufacturer, marketer, and distributor of non-alcoholic beverage concentrates and syrups, until now Coca Cola has introduce a mixed alcoholic beverage with Crown. Coca Cola has to determined factors in different areas such as the effects of demand and supply, and equilibrium prices. Which includes finding their potential competitors, customers, and buyers? Next thing we have discussed was any issues facing long-term profitability with this product, such as price elasticity of demand, technological innovations, and relationship between the amount of labor and capital. This team took into effect the factors affecting variable and fixed costs. Finally we made recommendations on how Coca Cola can maximize their profit- making potential and marginal and revenue cost. The ending product has been a successful product to Coca Cola.

References
Colander, D. C. (2010). Economics (8th ed.). Retrieved from The University of Phoenix eBook Collection database.

Coca Cola Company. (2010). How many cans of Coca- Cola are sold worldwide in a day. Retrieved from http://www.coca-cola.co.uk/faq/products/how-many-cans-of-coca-cola-are-sold-worldwide-in-a-day.html

eMed Expert. (20132). 8 Reasons Why People Drink Soda & 16 Reasons To Give Up Soda Drinking. Retrieved from http://www.emedexpert.com/tips/soft-drinks.shtml

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