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Unit 4 D1 Btec Level 3 Business

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D1- Evaluate the appropriateness of information used to make important strategic decisions.

The Coca Cola Company is an American beverage corporation, manufacturer, retailer and marketer of non-alcoholic beverage concentrates and syrups, which is headquartered in Atlanta, Georgia.

One department at Coca Cola is the financial department. The financial department uses on screen communication, this allows them to create data on the company’s financial assets. They use on screen communication to present databases, charts and a budgeting table for the company. A strategic decision that this department has made is to buy the remaining shares in Innocent drinks company. “The London company’s sales have grown 89% a year from £16.7m in 2004 to £113.2m in 2007.”(Sunday Time Fast Track, 2008) The purpose of this strategic decision is to find a new market because Coca-Cola, the world’s biggest beverage company currently did not sell juice/smoothies in Europe.

On the one hand Coca Cola based its decision to acquire Innocent Drinks on the growth figures reported. The information that Coca Cola use is appropriate and effective because, it allows Coca Cola to spot a gap in the market. They have seen the company become Europe’s most popular smoothies/juices company (Innocent is Europe’s top smoothie player, 2010). The successful relationship between Coca Cola and Innocent Drinks will support even more innovation and international expansion. However, they potentially should not of purchased Innocent Drinks based just on its growth figures, because this is not enough information to allow Coca Cola to buy a company. Although, in reality they have probably used much more information such as growth in gross profit figures, current ratios and cash flow charts etc. Overall I think that, Coca Cola have not got enough appropriate information to make a decision to investment in

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