Coca cola Company budget






Coca cola budget


Below is an analysis of the Coca cola flexible budget for three consecutive years. A flexible budget is an estimation of the actual budget. It is used to come up with an accurate financial plan. The actual budget is then prepared and used to run the company.

Coca Cola company budget for year 2008

(Figures in billions)

Production costs                                             3.5

Marketing costs                                               2.2

Wages and salaries                                          5.1

Corporate social responsibility                        1.4

Maintenance                                                    3.3

Miscellaneous                                                  1.7

Total                                                                17.2


Coca cola company budget for year 2009

(Figures in billions)

Production cost                                               3.2

Marketing costs                                               2.6

Wages and salaries                                          5.0

Corporate social responsibility                        1.7

Maintenance                                                    3.1

Miscellaneous                                                  1.4

Total                                                                17




Coca cola company budget for the year 2010

Production costs                                             3.0

Marketing cost                                                2.5

Wage and salaries                                           4.8

Corporate social responsibilities                      1.6

Maintenance                                                    2.9

Miscellaneous                                                  1.3

Total                                                                16.1


The sales growth and current economic growth

The sales growth rate is between 4-6%. It has been influenced by the reduced costs in the budget through out the three years. The company was able to produce more hence, more sales. Growth sales have also increased profits. In 2009, the net profit was seven hundred and thirty one million dollars.

The current growth rate in the economy is about 3.5%. It shows that the Coca cola Company is competitive in the market (Foster, 2008).

Coca cola competitors

Other major companies that compete with Coca Cola Company are PepsiCo and Cadbury Schweppes. Coca cola is the leader in USA market share. It covers 42.9% while Pepsi covers 31.2%. Cadbury and Schweppes follow with a rate of 17.6 %. This company has liabilities or debts, which it pays at an interest of 4%. This value is determined by several factors like future losses.


Coca cola tax

The company is responsible for paying tax. There is no general rate at which it is taxed. This is because various entities are charged different rates of tax (Kahn, 1960).


There are several lessons to learn from this case study. It assists an individual to learn how to prepare a budget. The person preparing will also be able to analyze it and come up with an actual budget. A flexible budget is particularly useful to the manager. It gives an estimation of the actual budget. After the flexible budget is made, the manager can use it in working out accurate costs of each operation (Hays, 2004).




Foster, R. J. (2008). Coca-globalization: Following soft drinks from New York to New Guinea. New York: Palgrave Macmillan

Hays, C. L. (2004). The real thing: Truth and power at the Coca-Cola Company. New York: Random House.

Kahn, E. J., & National Institute on Drug Abuse. (1960). The big drink: The story of Coca-Cola. New York: Random House.

Tsorakidis, N. (2009). Break-Even Analysis. Retrieved November 15, 2011 from

Walther, l. (2010). Chapter Eighteen. Cost-Volume-Profit and Business Scalability. Retrieved November 15. 2011 from



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