...and Legal Practices…………………………………………………………………………... 3, 4 b) Balance Sheet Analysis……………………………………………………………………………..…. 4, 5 c) Stock Analysis……………………………………………………………………………………………… 5 d) Income Statement Analysis…………………………………………………….................................. 5, 6 1. Income Reporting Methods…………………………………………………………………………… 5 2. Income Reporting Trends…………………………………………………………………………...… 6 b) Cash Flow Statement Analysis…………………………………………………................................ 8, 9 1. Cash Reporting Methods……………………………………………………………………………… 8 2. Cash Reporting Trends………………………………………………………………………..…. 9, 10 3. Conclusion…………………………………………………………………………………………………..... 10 4. Bibliography…………………………………………………………….…………………………………….. 11 Introduction Coca-Cola Company was established in 1892 in North America, and has since expanded successfully into the international market, now doing business in over 200 countries around the world (Coca-cola.co.uk. 2013). Coca-Cola sells a wide variety of beverages from water to soft drinks, sports drinks, and teas. Coca Cola Company has acquired existing beverage brands over the years, including Minute Maid and Honest Tea, Inc. Coca-Cola follows the strict financial reporting guidelines established by the ISAB and FASB, and reports financial activities in an unbiased and transparent way. The following analysis looks at the financial statements of Coca-Cola Company during the years of 2010,...
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...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...
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...Atlanta, Georgia, John Pemberton developed Coca-Cola, a non-alcoholic version of French Wine Coca. The first sales were at Jacob’s Pharmacy in Atlanta, Georgia, on May 8, 1886. It was first sold as a patent medicine for five cents a glass at soda fountains, which were popular in the United States at the time due to the belief that carbonated water was good for your health. Pemberton claimed Coca-Cola cured many diseases, including morphine addiction, headache, and impotence. When launched Coca-Cola’s two ingredients were cocaine and caffeine. The cocaine was derived from the coa leaf and the caffeine from kola nut, leading to the name Coca-Cola. Pemberton called for five ounces of coca leaf per gallon of syrup, a significant dose; in 1891, Candler claimed his formula contained only a tenth of this amount. Coca-Cola did once contain an estimated nine miiligrams of cocaine per glass, but in 1903 it was removed. After 1904, instead of using fresh leaves, Coca-Cola started using “spent” leaves –leftovers of the cocaine extraction process with cocaine trace elevels left over at a molecular level. Today, Coca-Cola uses as an ingredient a cocaine free extract prepared at a Stepan Company in Maywood, New Jersey. In the USA, Stepan Company is the only manufacturing plant authorized by the Federal Government toimprort and process the coca plant, which it obtains mainly from Peru, and Bolivia. Besides producing the coa flavoring for Cac-Cola, Stephan Company extracts cocaine from...
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...Coca-Cola Company Case Study GB 518 Financial Accounting Principles and Analysis Kaplan University SUMMARY Accounting is an important aspect of business because it is the foundation that offers support to management for planning, and controlling activities as well as decisions. When an organization is doing business they need a way to keep score of operational financial activities. The purpose of my research paper is to discuss the details of my interview with an accountant at Coca-Cola Company, Atlanta headquarters. Mr. Joe Angus has worked with the company for twelve years and sat down with me for a 25 minutes interview in his office to eagerly share the accounting practices of the company, and the operating activities within the business that generates revenue and move the business forward. Company Overview The Coca-Cola Company is the largest beverage company in the world that provides consumers with more than 500 sparkling and still brands of refreshing drinks. While Coca-Cola is the most valued brand in the company’s portfolio, it features 15 billion dollar brands including Diet Coke, Fanta, Sprite, Coca-Cola Zero, vitamin water, PowerAde, Minute Maid, Simply, Georgia and Del Valle. Globally, Coca-Cola Company is the number one provider of sparkling beverages, ready-to-drink coffees, juices, and juice drinks. Throughout the world’s largest beverage distribution system, consumers in more than 200 countries enjoy Coca-Cola Company beverages at a rate of more...
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...- Part Seven Desiree’ Pressley September 12, 2015 MBA620: Accounting for Decision Makers Summary of the major capital investments made by PepsiCo and The Coca Cola Company In 2014, purchases of investments for The Coca Cola Company were $17,800 million and proceeds from disposals of investments were $12,986 million. This activity resulted in a net cash outflow of $4,814 million during 2014. The purchases during the year ended December 31, 2014 include The Coca Cola Company investment in Keurig, partially offset by the net purchases and proceeds of our short-term investments, that were made as part of the Company’s overall cash management strategy. In 2014, the Company’s acquisitions of businesses, equity method investments and nonmarketable securities totaled $389 million, which primarily included a joint investment with one of our bottling partners in a dairy company in Ecuador. None of the Company’s other acquisitions or investments were individually significant. (The Coca Cola Company, 2015) The Coca Cola Company purchases of property, plant and equipment net of disposals for the years ended December 31, 2014 is 2,406 million. In 2014, other investing activities were primarily related to loans to Fairlife, LLC, a value-added dairy joint venture, as well as local investments in Argentina. (The Coca Cola Company, 2015) To meet this growing demand, PepsiCo plans to continue to grow their portfolio of more nutritious products as well as to reduce added sugar, sodium...
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...| | WORD COUNT: 2914 | | Contents Executive Summary 1 1. Introduction 2 2. Market Analysis 2 2.1 Market segmentation 2 2.2 Market needs 3 2.3 Segmentation potential 3 2.4 Analysis of current and potential competitors 4 2.5 PESTEL Analysis 5 2.5.1 Political analysis 5 2.5.2 Economic analysis 6 2.5.3 Social analysis 6 2.5.4 Technological analysis 6 2.5.5 Environment analysis 6 2.5.6 Legal analysis 6 3. Market Plan 7 3.1 7P strategy 7 3.1.1 Product 7 3.1.2 Promotion 7 3.1.3 Price 7 3.1.4 Place 8 3.1.5 People 8 3.1.6 Process 8 3.1.7 Physical Environment 8 4. Market Feasibility (Ansoff’s Matrix applying) 9 4.1 Market Development (Opportunity) 9 4.2 Market Penetration 10 4.3 Diversity and Product development (threats) 10 Conclusion 11 Executive Summary The new product of Coco-Cola differs from the existing products diet coke. The opportunity of these products is it unique and sustainable market share. To different from both the existing products and competitors, the new product is low carioles and with diversity fruit flavour. The target market is the young and healthy generation. The diet coke already has the sustainable market with royal customers, so it is easy for this type of customers to accept the new product. The sparkling drinks takes the most percentage of the whole soft drink market in Coco-Cola Company’s report, so this may also attract the customers from other segmentation even from the competitors. Some...
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...Financial Health Analysis Financial Health Analysis Although there are many important aspects of a business entity in respect to its financial health and sustainability, the annual report is essential to providing a snap shot into the businesses financials. There are many sections developed within an annual report, however, the income statement, as well as the balance sheet are critical pieces of the report. Among the various financial reports required by the Sarbanes-Oxley Act of 2002 which "requires companies to establish and maintain internal controls" including the balance sheet which "presents a picture of what a business owns and what it owes" (Kimmel, Weygandt, & Kieso, 2011, p. 11) thus, the annual report can prove critical to an investor. Upon reviewing an organizations balance sheet, there are two separate sections in respect to assets. The section referred to as current assets includes all items that “the company expects to convert to cash or use within one year” such as; cash, inventory items and investments. The term total assets on the balance sheet refers to everything the company owns including intangible assets which are “assets that lack physical substance, but are valuable to the company". According to the annual report retrieved from (Coca-Cola Enterprises, 01/1) the total current assets of Coca-Cola Enterprises at the end of the financial reporting period of 2013 are $2,568.00 (In millions) Which depicts a decrease in current assets from...
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...Final Project - Financial Analysis XACC/280 Within each company there will always be places that can be improved upon in order to gain a healthier financial status. I will be evaluating PepsiCo, Inc. and The Coca-Cola Company, and their current financial situations to see if or where each company can improve. I will also evaluate each company to see which is more financially stable based upon their current financial reports. You will find not only data from 2004-2005, but also data from 2011-2012 in this paper as I feel the past financial statements can be just as important when trying to determine the stability of a company. The Coca-Cola Company A well known company that produces more than 500 nonalcoholic beverages openly stated within their 2012 Financial Report that: Increased competition could hurt our business. The nonalcoholic beverage segment of the commercial beverage industry is highly competitive. We compete with major international beverage companies that, like our Company, operate in multiple geographic areas, as well as numerous companies that are primarily local in operation. In many countries in which we do business, including the United States, PepsiCo, Inc. is a primary competitor. Other significant competitors include, but are not limited to, Nestlé, DPS, Groupe Danone, Kraft Foods Group, Inc., and Unilever. In certain markets, our competition includes major beer companies. Our beverage products also compete against local or regional brands...
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...The Coca-Cola Company and PepsiCo Pension Plans Intermediate Accounting III – ACC 305 Strayer University November 20, 2011 Abstract The Coca-Cola Company and PepsiCo are both very large manufacturing corporations that operate worldwide. Over the years, each corporation has had a very longevity of business success. The expansion of business and brands through subsidiaries, partnerships and franchises in beverage and food products has been a consistent growth in retail sales for both corporations. With such growth, they employ thousands of employees worldwide and offer competitive benefits to include medical, life, and retirement. In 2006, both corporations adopted SFAS 158, Employers’ Accounting for Defined Benefit Pension and Other Postretirement Plans — an amendment of FASB Statements No. 87, 88, 106, and 132(R) (SFAS 158). For this particular paper, the goal will be to complete a comparative analysis of the pension plans that each corporation make available to their employees and retirees. Analysis A pension plan is an employer contributory or noncontributory saving plan which can also be qualified and nonqualified that businesses offer to their employees to assist with their retirement. With contributory plans, the employer and the employee make contributions into the savings. Whereas, with noncontributory plans, only the employer is required to make the contributions while the employee’s participation is optional. Under a qualified plan, tax...
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...Management Coca-Cola Annual Report Analysis In: Business and Management Coca-Cola Annual Report Analysis Introduction Coca-Cola Amatil Limited (CCL) is the Australasia regional anchor bottler of The Coca Cola Company. The company's Australian origins date back to 1904 as the tobacco company British Tobacco (Australia). Its first foray into soft drinks came in 1964 with the purchase of Coca-Cola Bottlers (Perth), and the company was listed on the Australian Stock Exchange in 1972. Soft drinks and snack foods gradually became the primary focus of the company, which was renamed Amatil Limited in 1977. The snack food operations were sold in 1992, and European operations were spun off into a new company, Coca-Cola Beverages, in 1998. Expansion into Asia continued, though Filipino bottling was eventually sold to San Miguel Brewery and parent The Coca-Cola Company. Its most recent purchase activity has been the acquisition of fruit producer and packager SPC Ardmona Ltd. Until May 2007, the company also operated the online music store, Coke Tunes, out of New Zealand. . Core Business of the Company Coca-Cola Amatil is an anchor bottler of The Coca Cola Company in Asia-Pacific region. It manufactures, distributes, and markets carbonated soft drinks, still and mineral waters, fruit juices, coffee and other alcohol-free beverages. The company also processes and markets fruit, vegetables, and other food products. For the convenient sake of this paper Coca-Cola Amatil...
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...Valuation and Assessment for the PepsiCo Part1. Macro economic factors and Industry Analysis In recent year, PepsiCo was in the extraordinary complicated economic environment. Economic environment can have a significant impact on PepsiCo. The economic factors such as Gross Domestic Product (GDP), interest rates, high inflation rate and commodity price may affect the PepsiCo current and future performance in large extend. First, the increase of GDP affects the sales of PepsiCo. Pepsi is the world second largest food and beverage business, which sold products in more than 200 countries. In America, the GDP presents a slowly but stable increasing trend, the GDP growth rates were affected, and also influenced the sales of Pepsi America. According to the table 1, it can be seen that the core net revenue has increased 14 percent between 2010 and 2011. In addition, it was estimated that approximately 47 percent net revenue comes from outside the United States. Although most developing countries were suffered from global financial crisis, the GDP growth rates still keep a robust trend. For example, in China, the GDP growth was around 9.5 percent during 2010 to 2012. Therefore, PepsiCo in 2010, the revenue outside the America increased approximately 30 percent, which considerable above the global real GDP growth rate. Secondly, the increase of inflation will affect the profits of PepsiCo. The whole world’s inflation rates have increased in recent year and will continually rise...
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...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...
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...investigates the strategic management of Pepsi Cola and Coca-Cola in an effort to make recommendations on how Pepsi Cola can build strategies in gaining a larger share of the market. The assessment of strategic management begins with the vision and mission of both organizations, which leads into literature review that identifies the consumer preferences of both Pepsi Cola and Coca-Cola. Following the literature review is the teams’ own personal assessment of consumer preferences for the Pepsi Cola and Coca-Cola brand (Please refer to Appendix A for the assessment). Finalizing the investigation are recommendations for Pepsi Cola to gain a larger share of the market. The Cola Wars Research Paper According to an industry report from Hoover’s (2014), the U.S. soft drink industry yields $34 billion annually and continues to grow internationally. The largest markets of consumption for soft drinks outside the U.S. are: Mexico, Chile, Argentina, and Uruguay (Hoover’s, 2014). The constant change of consumer preferences is what drives Pepsi Cola and Coca-Cola to compete for a larger share of the market. The intense rivalry between Coca-Cola and Pepsi Cola have been going on since the late 1800’s (Economy Watch, 2011); when Pepsi Cola was born from a “combination of: carbonated water, kola nuts, vanilla, and rare oils” (Pepsi Legacy Book, p.7. 2005). This paper focuses on the diversified strategies of both Pepsi Cola and Coca-Cola in their efforts to gain the largest share of...
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...| 3% | 0.03% | Interest expenses | 733 | 355 | 438 | 106% | 67% | Source: coca cola annual report 2010, 2009 and 2008 * As we can see from the above table that the net revenues (sales) shows an increased in 2010 as compared to 2009 and 2008 with 13% and 10% respectively. The sales were high in 2008 but deteriorate in 2009. The percentage change in net operating revenue due to increase or decrease in concentrates sale volume for our geographic operating segments, while for bottling investment operating segment, the percentage change occurs due to increase or decrease in unit case volume for bottling investment after the impact of structural change. Source: coca cola annual report 2010. * As we can see from the above chart that out of 13% of percentage change in net operating revenue in 2010 , 5% increase due to increase in concentrate sale volume which occurs due to shipments and impact from certain joint venture in which the company possessing an equity. While the impact of geographic mix on net revenue is 1% due to growth of the coca cola in emerging and developing market, but it is unfavourable as the net revenue per unit sold is less in in developing market as compared to developed market. The currency fluctuation increased the net revenue by 2% which was primarily occurs due to weaker U.S. dollar compared to other foreign currencies. * According to the coca cola annual report 2010, the increased in interest expenses of $378 million or by 106% in 2010 was...
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...THE COCA-COLA COMPANY Students’ name: Malvina Shahini TABLE OF CONTENTS THE COCA-COLA COMPANY 0 Students’ name: Malvina Shahini 0 EXECUTIVE SUMMARY 2 INTRODUCTION AND COMPANY BACKROUND 2 INDUSTRY 3 GEOGRAPHICAL MARKET 4 PRODUCTS AND SERVICES 4 MARKET SEGMENTATION 5 MISSION, VISION AND VALUES 6 COMPANY'S STAKEHOLDERS 8 PART I: EXTERNAL ANALYSIS 9 PESTLE ANALYSIS 9 PORTER'S 5 FORCES OF COMPETITION MODEL 11 PART II: INTERNAL ANALYSIS 14 VALUE CHAIN MODEL 14 VRIO FRAMEWORK 16 BCG ANALYSIS 17 POSITIONING 17 PART III: COMPANY’S CORPORATE AND BUSINESS STRATEGY 19 PART IV: IDENTYFYING ISSUES AND CHALLENGES FACING THE COMPANY 20 PART V: IDENTIFICATION AND EVALUATION OF THE MAIN STRATEGIC OPTIONS FOR GROWTH 22 ANSOFF MATRIX MODEL 22 PART VI: RECOMMENDATION AND CONCLUSION 24 REFERENCE LIST 24 EXECUTIVE SUMMARY This paper is a strategic analysis of The Coca-Cola Company, a leader in the beverage industry. Coca-Cola, the world’s leading soft drink maker, operates in more than 200 countries and owns or licenses more than 500 brands of non-alcoholic beverages. The company faces challenges in today’s market because of market changes, socio-economic changes and globalization. The purpose of this assignment is to assess the current situation of the Coca-Cola Company and to provide recommendations on strategies that the firm can pursue in the future. In detail, an external analysis of the company is performed to understand the impact of...
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