The Coca Cola Company

 

 

The Coca Cola Company

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1.0  Executive Summary

1.1 Objectives

The key objectives of the Coca Cola Company are to be internationally recognized as a business that executes business ethically and responsibility. Additionally, the company aims at accelerating sustainable development in order to operate in the future business world. These objectives enable the Coca Cola Company to establish a basis for firms in the process of decision making.

1.2 Mission

The roadmap of Coca Cola begins with its mission that is enduring. The mission of the company proclaims the purpose of Coca Cola as a firm and acts as the standard against which the company’s decisions and actions are weighed. The mission statement of the company is to refresh the entire world, to inspire moments of happiness and optimism, and to establish value aimed at making a difference.

1.3 Keys to Success

The keys to success for Coca Cola Company lie in the company’s vision, values, and winning culture. The company’s vision serves the concept for its roadmap and directs each aspect of the business by describing what the company needs to achieve to continue gaining quality and sustainable growth. The vision focuses on some significant aspects such as the people. On this, the company focuses on ensuring a great workplace where individuals are inspired to become the best they can. The company focuses on bringing the entire globe a portfolio of beverage brands of high quality that satisfy and anticipate the desires and needs of people. It focuses on nurturing a winning network of suppliers and customers to create enduring and mutual value. Coca Cola is concerned with being a responsible citizen to make a difference by helping to support and build sustainable societies. It is concerned with maximizing the long-term return to shareholders while taking into consideration of its overall responsibility. On productivity, Coca Cola is aimed at being effective, fast-moving, and organization (Delener, 2008).

Coca Cola’s winning culture defines the behaviors and attitudes that are required in making the 2020 vision a reality. The company’s values act like a compass for its actions and describe how the company behaves in the world. It defines collaboration as the leverage collective intelligence and leadership as the courage and ability to shape a better future. Additionally, it defines integrity as being real and accountability as the ability to take responsibilities. Through passion, the company is committed in mind and heart and recognizes diversity as inclusive of all its brands. The company is also focused on the provision of quality products through doing well at all levels. All these account as keys to success of the Coca Cola Company.

 

 

 

 

 

 

 

 

Table of Contents

1.0 Executive Summary

1.1 Objectives

1.2 Mission

1.3 Keys to Success

2.0 Company Summary

2.1 Company Ownership

2.2 Company History

2.3 Company Locations and Facilities

3.0 Products and Services

3.1 Product and Service Description

3.2 Competitive Comparison

3.3 Sales Literature

3.4 Sourcing and Fulfillment

3.5 Technology

3.6 Future Products and Services

4.0 Market Analysis Summary

4.1 Market Segmentation

4.2 Target Market Segment Strategy

4.2.1 Market Needs

4.2.2 Market Trends

4.2.3 Market Growth

4.3 Industry Analysis

4.3.1 Industry Participants

4.3.2 Distribution Patterns

4.3.3 Competition and Buying Patterns

4.3.4 Main Competitors

5.0 Strategy and Implementation Summary

5.1 SWOT Analysis

5.1.1 Strengths

5.1.2 Weaknesses

5.1.3 Opportunities

5.1.4 Threats

5.2 Value Proposition

5.3 Competitive Edge

5.4 Marketing Strategy

5.4.1 Positioning Statements

5.4.2 Pricing Strategy

5.4.3 Promotion Strategy

5.4.4 Distribution Patterns

5.4.5 Marketing Programs

5.5 Sales Strategy

5.5.1 Sales Forecast

5.5.2 Sales Programs

5.6 Strategic Alliances

5.7 Milestones

6.0 Web Plan Summary

6.1 Website Marketing Strategy

6.2 Development Requirements

7.0 Management Summary

7.1 Organizational Structure

7.2 Management Team

7.3 Management Team Gaps

7.4 Personnel Plan

8.0 Financial Plan

8.1 Important Assumptions

8.2 Key Financial Indicators

8.3 Break-even Analysis

8.4 Projected Profit and Loss

8.5 Projected Cash Flow

8.6 Projected Balance Sheet

8.7 Business Ratios

8.8 Long-term Plan

9.0 Conclusions and Recommendations

10.0 References

11.0 Appendix

 

 

 

2.0 Company Summary

2.1 Company Ownership

Coca Cola is owned by various shareholders and investors across the world. They are institutional and individual shareholders.

2.2 Company History

The history of Coca Cola can be traced back in Maya, 1985 when Doctor John Pemberton who was a pharmacist from Atlanta invented the company. He created the Coca Cola formula a kettle. The name was given by Frank Robinson, Pemberton’s book keeper. Robinson also had excellent skills in penmanship. He developed the name that has flowing letters, and which is widely recognized all over the world today, with a famous logo. The soft drink from the company was first sold at the soda fountain in a pharmacy located in Atlanta known as Jacob’s Pharmacy in 8th May, 1886. Sales during the first year amounted to a total of 50 dollars as about 9 servings of the drink were sold every single day. Pemberton spent about 70 dollars in expansion processes meaning that the company operated for losses during the first year. The soft drink had extracts of caffeine kola nut and cocaine until in 1905 (Dransfield, 2001).

During the year 1887, another businessman and pharmacist in Atlanta known as Asa Candler purchased the formula from its inventor for an amount of 2,300 dollars. By the late 1890s, the company became among the most popular drinks in America. This was largely because of aggressive marketing of this drinking product by Candler. The company increased sales by over 4000% in the period between the 1890s and the 1900s (Dransfield, 2001). This implies advertising was exceedingly an essential factor for the success of the product. In fact, by the end of the century, the soft drink was sold across Canada and the United States. During the same time, the Coca Cola Company started selling the product to independent bottling firms that were licensed to sell the product. Even in the present, the drink is organized based on this principle. Up to the 1960s, the big city and small town dwellers loved carbonated drinks at the local ice cream saloon or soda fountain. Frequently joined with lunch counters, the soft drink decreased in popularity as commercial bottled soft drinks, ice cream, and fast food restaurants took its place in gaining popularity. On April the 23rd 1985, the company made a considerable change when a new coke was released (Doole and Lowe, 2008). Presently, the company’s products are consumed at one billion drinks rate per each single day.

2.1 Company Locations and Facilities

Coca Cola is a large firm and has so many facilities and structures in different regions across the world. The bottling company has its headquarters in New York, in Charlotte. In addition, the company operates in eleven nations, specifically in the Southeast. The firm has five manufacturing facilities with more than forty five sales locations (Griffin, 2012).

3.0 Products and Services

3.1 Product and Service Description

The Coca Cola firm is the largest beverage company in the world. The firm offers a wide range of products and services that makes it attractive to its customers. The company offers more than 500 still and sparkling brands. Some of the famous brands include Fanta, Coke, Sprite, Minute maid among many others. The company has several foundations and programs to assist in various services. For instance, the company has partnered with UNAIDS to offer health services (Griffin, 2011). The company also supports various corporate initiatives that empower girls and women around the globe through economic support. It is also focused on providing services on sanitation and water to people who do not have access to these.

3.2 Competitive Comparison

Despite the position of the Coca Cola Company, it does not mean that it has no competitors that offer non-alcoholic beverages. The four biggest companies that compete with Coca Cola include PepsiCo Inc., Dr Pepper Snapple Group Inc., Nestle Waters and Groupe Danone Water Division (Ferrel and Hartline, 2011). However, Coca Cola remains competitive in the industry due to its effective strategies in all areas of its operations. This is what has accounted for its success over the decades since its establishment.

3.3 Sales Literature

The history of Coca Cola sales is amazing because of its ability to establish significant revenue for the company. This has been so for each area of operation.

3.4 Sourcing and Fulfillment

The Coca Cola Company provides good products that are aimed at achieving maximum consumer satisfaction and fulfillment. Sourcing and fulfillment are, therefore, highly valued by the company.

3.5 Technology

With the changing environment, a large company like Coca Cola needs to adapt with the changes in technology in order to remain highly competitive in the market. As a firm, Coca Cola rapidly changes, presents, rebrands, and re-advertises its products to ensure that sales are consistently kept high. Since the establishment of social networking, the ability to stay consistently connected to the internet, and the green movement, the Coca Cola Company has constantly harnessed technology in a number of various ways to advance the brand. Such technology has been witnessed through the introduction of greener bottles that was successful and use of social networking and online advertising or promote their products across the world (May, 2010).

3.6 Future Products and Services

Some of the future products and services of Coca Cola are outlined in its Vision 2020. Some of these include conserving energy, ensuring sustainable packaging/recycling, water stewardship, product wellbeing/portfolio, and establish a diverse and inclusive culture. Achieving these through the provision of services and products, these serve as the objectives for the vision 2020. These are aimed at creating benefits both for the firm and its stakeholders. The company is focused on introducing more non-alcoholic beverages for its customers across the world (Griffin, 2011).

4.0 Market Analysis Summary

4.1 Market Segmentation

The company has a strategic market segmentation that is meant at meeting the needs of its distinct customers across the world. The company has more that 400 product lines. The company performs market segmentation that is aimed at satisfying the needs of distinct age groups, sexes, lifestyles, and ethnic groups. Geographic segmentation is performed to meet needs of people in different regions and during certain seasons. Demographic segmentation targets the age, gender, and income of people (Voortman, 2004). On the other hand, psychographics segmentation targets individuals who are brand conscious.

4.2 Target Market Segment Strategy

4.2.1 Market Needs

Coca Cola is aimed at meeting the fundamental needs of its customer through the provision of goods and services that are of improved high quality. People want refreshing drinks not only to quench their thirst, but also to feel refreshed. This is what the company focuses on in the provision of its quality products in the industry.

4.2.2 Market Trends

The market is always changing, and Coca Cola changes with it. The ability to keep up with market trends is essential if a company wishes to maintain its position in its business. The company is concerned with trends such as demand and supply, political issues, economic changes, social and ethical matters, and other factors such as expectations that might have a considerable influence on its operations. As a result, the firm applies the existing technology in the industry and updates it whenever need arises to ensure smooth flow of operations (Smit, 2009).

4.2.3 Market Growth

The Coca Cola Company has been achieving significant growth and expansion in the market and the industry since its development. The company has expanded and exists in many regions across the world. The expansion in the market has been to the consistent provision of quality non-alcoholic beverages as compared to other companies in the industry (Smit, 2007). The company has gained customer loyalty and this is beneficial for the company’s performance and profitability. The earnings of the company have encouraged further development aimed at achieving the company’s vision 2020 goals and objectives.

4.3 Industry Analysis

On industry analysis, Coca Cola maintains its position in the industry as the largest beverages producing company. The company has quality products that are a threat to its competitors in the industry. This even makes it difficulty for new entrants into the industry as the company has an exceedingly strong base and has gained customer loyalty for the years it has existed and operated. Its ability to enhance corporate social responsibility and sustainability has further strengthened its position in the industry. Therefore, the company holds a firm foundation in the beverage industry (Smit, 2007).

4.3.1 Industry Participants

Participants in the industry involve the key stakeholders that include the government, suppliers, customers, shareholders, and the community at large.

4.3.2 Distribution Patterns

The distribution pattern of the Coca Cola Company adopts the FMCG pattern of distribution (Voortman, 2004). This effective and efficient pattern of distribution has eliminated the middle and small level players in the market. This pattern captures the rural market and is, therefore, an effective one for the company.

4.3.3 Competition and Buying Patterns

The company applies competition and buying patterns that apply effectively in its business. The company takes advantage of the fact that some individuals buy Coca cola products not only for its taste, but also because the products are widely recognized across the world. The company puts to use its famous image and ability to buy out their competitors (Smit, 2009).

4.3.4 Main Competitors

The main competitors of the firm include manufacturing companies of soft drink, ice and water, and tea and coffee manufacturing firms. PepsiCo (PEP), Nestle Inc, Dr Pepper Snapple Inc, and Cadbury Schweppes (CSG) (Voortman, 2004).

5.0 Strategy and Implementation Summary

5.1 SWOT Analysis

5.1.1 Strengths

The Coca Cola Company has a lot of strengths that have played a significant role in its success. The strengths are outlined below.

  1. The company is the best international brand in the globe on the basis of value ($77,839 billion)
  1. It is the world’s largest share in the market in beverage
  2. Strong advertising and marketing
  3. Coca Cola has the most extensive channel of beverage distribution
  4. The company has over the years attained customer loyalty across the world
  5. It has a high bargaining power over suppliers
  6. Coca Cola highly upholds Corporate social responsibility

5.1.2 Weaknesses

Some of the weaknesses of Coca Cola include

  1. Considerable focus on carbonated drinks
  2. Product that is undiversified
  3. High  levels of debt because of acquisition
  4. Failures in brands or simply numerous brands with inconsiderable revenue amount
  5. Negative publicity

5.1.3 Opportunities

Opportunities that exist for the company include the following

  1. Growth of consumption of bottled water
  2. Expansion through acquisitions
  3. A rise in demand for healthy beverage and food
  4. Expansion in the consumption of beverages especially in evolving markets

5.1.4 Threats

On the other hand, threats of the company include:

  1. Scarcity of water bearing in mind the huge amounts required during the production process
  2. Changes in tastes and preferences of consumers
  3. Increase in dollar
  4. Competition from other big companies such as PepsiCo
  5. Decreasing margins of the net profit and gross profit
  6. Legal and regulatory requirements to reveal negative information concerning product labels
  7. Saturated carbonated drinks market

5.2  Value Proposition

The company’s values act like a compass for its actions and describe how the company behaves in the world. It defines collaboration as the leverage collective intelligence and leadership as the courage and ability to shape a better future. Additionally, it defines integrity as being real and accountability as the ability to take responsibilities. Through passion, the company is committed in mind and heart and recognizes diversity as inclusive of all its brands (Ricondo et al., 2009). The company is also focused on the provision of quality products through doing well at all levels.

5.3 Competitive Edge

The competitive edge of the Coca Cola Company is a strong one due to many competitive advantages that the company has over its competitors in the industry. The competitive advantages include market leadership, business partnerships, collaborative customer relationships, strong brand portfolio, multi-segmentation, market portfolio, client value management, channel marketing, client value management, flexible distribution and sales models, go-to-market strategies, managerial expertise, full operating potential, and sustainable development.

5.4 Marketing Strategy

The local marketing strategy of Coca Cola enables the company to listen to all voices across the world asking for soft drinks that cross all occasions and tastes. The company believes that what people want in a drink is a manifestation of who they are, how they work, play, relax, recharge, and how they live. The company is committed not only in making great beverages, but also in contributing to societies across the world in terms of health, education, diversity, and wellness. The firm strives to be consistently improving the quality of lives of people through their operations.

5.4.1        Positioning Statements

The company offers a range of products including Sprite, Coke, Diet Coke, and Fanta. Additionally, it offers its products in distinct bottle sizes. The sizes include litter returnable bottle, disposable bottle, standers returnable bottle, tin pack, and plastic bottle. Products of the company are also available in different packaging.

5.4.2        Pricing Strategy

The pricing strategy of the Coca Cola Company depends on circumstances and a number of factors to determine what pricing strategy would be beneficial both to the firm and its customers. For instance, the company carries out trade promotion whereby incentives are given to retailers or middle men to promote sales. Additionally, the company also practices a strategy known as different price in different seasons (May, 2010). This occurs in order to maintain its profit and sales.

5.4.3        Promotion Strategy

Promotion strategies involve ways of creating awareness through a number of ways. Some of the promotion strategies used by the firm include getting shelves, sales promotion, eye catching promotion, and under the crown scheme to promote their products. The under crown scheme is common among children (May, 2010).

5.4.4        Distribution Patterns

The company makes two types of selling that is direct and indirect selling. Direct selling involves supplying their products to shops using own means of transport. On the other hand, indirect selling involves having agencies and wholesalers to supply their products.

5.4.5        Marketing Programs

A number of programs are used by the firm to advertise its products and services. These include the print media, POS material, billboards and holdings, TV commercials,

5.5      Sales Strategy

The company is focused on ensuring that the promotion, product, price, and people are evaluated effectively in order to ensure a sales strategy that meets its needs and the needs of stakeholders.

5.5.1        Sales Forecast

The company forecasts for an increase in its products an

5.5.2        Sales Programs

Sales programs of the Coca Cola Company include the Coca Cola Cricket, Food Mela, Concerts, GO-RED, Party in a Park, Shopping Festival, Wonder of the World Promotion, and the Ramzan Campaign (Asongu, 2007).

5.6      Strategic Alliances

The company has made some strategic alliances with other large companies that are essential in improving its image across the world. Some of these alliances include Coca Cola and Nokia and Coca Cola and Mc Donalds.  In addition, the company has alliances with significant organizations such as the UNAIDS that is focused on promoting the health and quality of life through provision of various programs (Asongu, 2007).

5.7 Milestones

The firm has gone through various significant events that have helped in improving its performance and profitability in the beverage industry. The biggest of all is the fact that the company has remained profitable over a long period of time and has a big image in the industry. The introduction of all its drinks has been met with significant success, and thus, the company continues to flourish. All the significant milestones for the firm are a result of market leadership, business partnerships, collaborative customer relationships, strong brand portfolio, multi-segmentation, market portfolio, client value management, channel marketing, client value management, flexible distribution and sales models, go-to-market strategies, managerial expertise, full operating potential, and sustainable development (Asongu, 2007).

6.0 Web Plan Summary

6.1 Website Marketing Strategy

Coca Cola recognizes the significance of the internet in its business operations. The company uses online advertising as one of its strategies to promote its products to the world. Besides using its website to advertise its products, the company uses the social networks to create awareness on its products and services. In fact, the company has an estimate of 60 million Facebook fans and about 130 million views on YouTube.

6.2 Development Requirements

The globe is changing and so is technology. Areas of the websites that require development include the customer interface. This should be powerful in order for the firm to get immediate feedback on what people in the world feel about the company. It should not only be on its products but also on general matters. This will improve its website marketing strategy.

7.0 Management Summary

7.1 Organizational Structure

Coca Cola is focused on maintaining an effective organizational structure to maintain its position in the industry and to improve its performance. The organizational structure of Coca Cola is explained in the appendix section of the paper.

7.2 Management Team

Coca Cola, being a large company has many leaders and managers across the world. The company is headed by Muhtar Kent, the Chief Executive Officer. A list of some the firm’s leaders includes Herbert Allen, Robert Kotick, Ronald Allen, Barry Diller, Richard Daley, James Robinson, James Williams, and Jacob Wallenberg among others. These are qualified leaders with appropriate skills to manage the business (Doole and Lowe, 2008). The company’s strategic management as discussed earlier plays a significant role in ensuring the success of the company.

7.3 Management Team Gaps

Strategic management of Coca Cola plays a key role in ensuring that gaps between the management team are reduced and kept at minimal. This is aimed at maintaining effectiveness and efficiency in its business operations.

7.4  Personnel Plan

The personnel plan is an essential component for any company or organization. Furthermore, the plan lays a ground on which the company’s future relies on. It is crucial for such global company as Coca Cola. The firm believes that it is individuals rather than technology who establish the company. Personnel management plays a significant role in ensuring the success of this company. The plan consists of organizing, job design and analysis, selection, recruiting, planning and forecasting, training and development (Dransfield, 2001).

8.0 Financial Plan

8.1 Important Assumptions

The most essential assumption made by the Coca Cola Company is that the market will remain being favorable and that the profitability, performance, and position will remain strong in the future years. Others include that the management team and the company’s personnel will also function as usual. The plan is made placing consideration on essential financial indicators.

8.2 Key Financial Indicators

In carrying out its operations, Coca Cola considers a number of essential indicators. Such indicators include unit sales, product quality, market share percentage, and return on investment. All these are essential in determining the financial position of the company. The company also takes into account indicators such as equity, interest coverage, current ration, break-even sales, and the gross profit margin, as well as, essential performance indicators that are used in financial planning.

8.3 Break-even Analysis

Just like in all companies, break-even refers to a situation when the total sales or revenue equals total expenses. This is the point when the company has not made any profits or losses. The company calculates its break even point on a periodical basis.

8.4 Projected Profit and Loss

Profit & Loss

Year Ended 31 December

2013

2012

2011

2010

2009

€ millions
Turnover 7044.7 6824.3 6793.6 6543.6 6980.7
Operating Profit 337.7 450.3 649.9 638.8 454.6
Net Interest -87.6 -87.4 -75.7 -72.8 -108.4
Profit Before Tax 258.6 364.5 576.7 564.1 346.3
Profit After Tax 193.4 265.7 438.7 421.6 239.9
Total Dividend
Retained Profit / Loss

 

 

8.5 Projected Cash Flow

Period Ended 12/31/13 12/31/12 12/31/11 12/31/10 12/31/09
  Update Reclassified Reclassified Restated Restated
  02/18/13 02/18/13 02/18/13 02/12/12 09/05/11
In millions of USD
(except for per share items)
Net Income / Starting Line 677.00 749.00 624.00 576.00 514.00
Depreciation 335.00 321.00 264.00 280.00 294.00
Depreciation / Depletion 335.00 321.00 264.00 280.00 294.00
Deferred Taxes -132.00 -121.00 -6.00 20.00 40.00
Other Non-Cash Items -40.00 19.00 -68.00 -53.00 -32.00
Non-Cash Items -40.00 19.00 -68.00 -53.00 -32.00
Accounts Receivable .00 -85.00 -14.00 -163.00 -120.00
Inventories 30.00 -44.00 -46.00 -21.00 -18.00
Prepaid Expenses -5.00 -26.00 -6.00 7.00 -25.00
Payable / Accrued 58.00 88.00 102.00 140.00 40.00
Other Assets & Liabilities, Net 24.00 -39.00 -25.00
Other Operating Cash Flow 41.00 .00
Changes in Working Capital 107.00 -106.00 11.00 4.00 -123.00
Cash from Operating Activities 947.00 862.00 825.00 827.00 693.00
Purchase of Fixed Assets -378.00 -376.00 -291.00 -250.00 -297.00
Capital Expenditures -378.00 -376.00 -291.00 -250.00 -297.00
Acquisition of Business .00 -1.00 -799.00 .00 .00
Sale of Fixed Assets 13.00 4.00 .00 .00
Other Investing Cash Flow -8.00 14.00 351.00 -19.00 -2.00
Other Investing Cash Flow Items, Total 5.00 17.00 -448.00 -19.00 -2.00
Cash from Investing Activities -373.00 -359.00 -739.00 -269.00 -299.00
Other Financing Cash Flow -3.00 87.00 -1,320.00 -307.00 488.00
Financing Cash Flow Items -3.00 87.00 -1,320.00 -307.00 488.00
Cash Dividends Paid – Common -187.00 -162.00 -40.00 .00 .00
Total Cash Dividends Paid -187.00 -162.00 -40.00 .00 .00
Repurchase / Retirement of Common / Preferred -780.00 -800.00 -200.00 .00 .00
Options Exercised .00 .00
Issuance (Retirement) of Stock, Net -780.00 -800.00 -200.00 .00 .00
Short Term Debt, Net .00 -145.00 4.00 -79.00 35.00
Long Term Debt Issued 430.00 900.00 1,871.00 172.00 40.00
Long Term Debt Reduction -16.00 -9.00 -459.00 -122.00 -847.00
Long Term Debt, Net 414.00 891.00 1,412.00 50.00 -807.00
Issuance (Retirement) of Debt, Net 414.00 746.00 1,416.00 -29.00 -772.00
Cash from Financing Activities -556.00 -129.00 -144.00 -336.00 -284.00
Foreign Exchange Effects 19.00 -11.00 -25.00 8.00 -16.00
Net Change in Cash 37.00 363.00 -83.00 230.00 94.00
Net Cash – Beginning Balance 684.00 321.00 404.00 174.00 80.00
Net Cash – Ending Balance 721.00 684.00 321.00 404.00 174.00
Cash Interest Paid 84.00 63.00 83.00 98.00 144.00
Cash Taxes Paid 293.00 232.00 185.00 116.00 101.00

 

8.6 Projected Balance Sheet

Profit & Loss

Year Ended 31 December

2012

2011

2010

2009

2008

€ millions
Turnover 7044.7 6824.3 6793.6 6543.6 6980.7
Operating Profit 337.7 450.3 649.9 638.8 454.6
Net Interest -87.6 -87.4 -75.7 -72.8 -108.4
Profit Before Tax 258.6 364.5 576.7 564.1 346.3
Profit After Tax 193.4 265.7 438.7 421.6 239.9
Total Dividend
Retained Profit / Loss

 

Balance Sheet

Year Ended 31 December

2013

2012

2011

2010

2009

€ millions
Intangible Assets 1944.6 1935.4 1966.9 1874.1 1918.0
Tangible Assets 3041.4 2998.1 3122.9 2961.3 2994.2
Fixed Investments
Total Fixed Assets 5279.3 5228.4 5281.2 5048.3 5140.4
Stocks 458.0 447.7 481.7 425.1 475.5
Debtors
Cash at Bank and in Hand 439.1 447.4 326.1 232.0 724.6
Total Assets 7250.1 7243.5 7210.7 6796.8 7521.8
Creditors Amount Within 1 year 1667.3 1589.6 1501.3 1335.6 1353.3
Creditors Amount After 1 year 416.6 472.4 457.1 457.7 423.1
Total Liabilities 4243.6 4323.3 4149.9 4200.9 4591.0
Net Assets 3006.5 2920.2 3060.8 2595.9 2930.8
Net Current Assets
Called Up Share Capital 370.2 549.8 183.1 182.8 182.7
Share Premium Account 569.3 569.2 1119.2 1113.8 1665.0
Other Reserves 154.2 124.8 189.0 44.8 174.8
Profit and Loss Account 1895.0 1660.6 1460.8 1151.8 818.2
Shareholders Funds 2988.7 2904.4 2952.1 2493.2 2840.7
Minority Interests 17.8 15.8 108.7 102.7 90.1

 

Key Figures

Year Ended 31 December

2012

2011

2010

2009

2008

Earnings Per Share Basic (EUR) 0.52 0.73 1.17 1.09 0.31
Earnings Per Share Diluted (EUR) 0.52 0.73 1.17 1.09 0.31
Earnings Per Share Adjusted (EUR) 0.52 0.73 1.17 1.09 0.31
Earnings Per Share Growth (%) -29 -38 7 252 n/a
Total Dividend (EUR) 0.30 0.14
Operating Margin (%) 5 7 10 10 7
ROCE (%) 11 14 20 20 6
Dividend Cover 3.63 2.21
Dividend Yield 1.80 0.50
Price / Earnings Ratio 33.70 17.80 16.60 14.90 82.70
Dividend Per Share Growth (%) 115

 

8.7 Business Ratios

The following are the financial ratios for the companies as at the end of 2013.

Return on assets- 8.08%

Return on Equity- 26.59%

Return on Capital- 10.52%

Gross Margin- 60.29%

Total Assets Turnover- 0.6x

Inventory Turnover- 5.4x

Fixed Assets Turnover- 3.2x

Accounts Receivables Turnover- 9.8x

Current Ratio- 1.0x

Quick Ratio- 0.8x

Total Equity- 106.8x

Gross Profit- 1.17%%

8.8 Long-term Plan

A long-term plan for Coca Cola Company is the strategic plan aimed at achieving the goals and objectives of its vision 2020. The company is focused on ensuring that it achieves this for the benefit of the company and the society as a whole.

9.0 Conclusions and Recommendations

The Coca Cola Company has been successful due to following a number of strategies that help in achieving success. Starting from the mission, vision, to the strategies of the company, Coca Cola achieves success due to its strategic management that enables its growth and expansion in the industry. The Company is a widely spread firm across the world. The company’s management is well defined thus making the firm stable and operate all over across the globe. The firm’s management runs in divisions or departments, each department has a manager, supervisors and then the workers. This type of management makes it easier to manage the company and gain profits. The Coca Cola Company has well listed strategies such as the visions, missions and working schedule. The main strategy that Coca Cola Company laid was the promotion, advertising and marketing their brands widely. This has made the drinks popular across the world therefore improving the profits earned throughout a fiscal year.  The Coca-Cola Company runs several amendments annually to maintain the customers. The change mainly helps convert the old products and introduce new products that will attract customers again.

Strategic management policies help in keeping and maintaining the standards of the business. Strategies depend on the performance, organization and assessment of the laid strategies and environmental scrutiny and strategy formulation. The Coca-Cola Company needs to grow and earn profits similarly to all other companies. The company should establish its internal weaknesses and strengths in order to establish solutions and the correct measures to the problems. The company has to make sure the input in the company is correct and balanced with the output. When the inputs in the company are higher than the outcome then the company is on the thinner end and will eventually collapse.

Coca- Cola Company obtains most of the profits due to promotions, good marketing and advertising. The company is stable and has well out listed strategies that encourage its growth such as controlling most of the world markets making it take up other opportunities. For instance, the company takes up distribution and manufacture of other non-alcoholic beverages such as mineral water and energy drinks. The company also maximizes on its strengths and tries to avoid the weaknesses. The Coca-Cola Company has a wider market that acts as the main strength that it has over the other beverage companies. The wider market gives it the opportunity to get to most of the people making it sell most of its products.

The Coca-Cola Company tries to make the drinks comfortable to all non-alcoholic people. The Coca Cola Company adds some important nutrients such as vitamins to all drinks or making the beverage prices affordable to all people. The addition of nutrients encourages people to drink since it posses nutritional values that are necessary to the body. The company should make sure the management and the working staff is comfortable and works within a comfortable environment. This improves the profit income of the company since the work force is motivated. The coca cola company has specific principles such as making the difference in the beverage companies, refreshing the people and restore happiness among the people along other principles.

Each Coca-Cola Company in each country produces its own products depending on the interests of the people within the country or the technology that the country posses. For instance, some countries provide on line and delivery services in that the company delivers the Coca-Cola products after a customer purchases the product online.  Mostly this online business has not gotten to Africa since the organization, technology and management across Africa cannot be compared to most countries across Europe. The Coca-Cola Company attracts customers by introducing alternative drinks. For instance, if a person does not take soda or the fizzy drinks then mineral water is the alternative.

It is, therefore, essential for the company to continue with its strong strategic management in order to facilitate other essential functions outlined in its mission and vision. These include achieving its goals and objectives in all aspects including, productivity, customer satisfaction, and achieving responsibility and accountability in its operations. This paper, therefore, discusses the main facts and ideas including the summary of the company, a description on the products and services of the company, the market analysis, summary of strategy and implementation, the web plan summary, management summary, and the financial plan.

The company should emphasize more on offering its infrastructure in the industry or market to promote their customers. Additionally, the company should also focus on producing other drinks other than carbonated and produce according to the local demand. The marketing team should focus on the availability of these products in all local areas and focus on the elderly. Disposable bottle products for all manageable quantities should be available.

 

 

 

 

 

 

 

 

 

10.0 References

Asongu, J. J. (2007). Strategic corporate social responsibility in practice. Lawrenceville, GA: Greenview Publishing.

Doole, I., & Lowe, R. (2008). International marketing strategy: Analysis, development and implementation. London: Cengage Learning.

Delener, N. (2008). Strategic planning and multinational trading blocs. Westport, Conn. [u.a.: Quorum Books.

Dransfield, R. (2001). Corporate strategy. Oxford [u.a.: Heinemann.

Ferrell, O. C., & Hartline, M. D. (2011). Marketing strategy. Australia: South-Western Cengage Learning.

Griffin, R. W. (2011). Management. Mason, OH: South-Western Cengage Learning.

Griffin, R. W. (2012). Fundamentals of management. Mason, OH: South-Western Cengage Learning.

May, G. L. (2010). Strategic planning: Fundamentals for small business. New York: Business Expert Press.

Ricondo & Associates., National Research Council (U.S.)., Airport Cooperative Research Program., & United States. (2009). Strategic planning in the airport industry. Washington, D.C: Transportation Research Board.

Smit, P. J. (2007). Management principles: A contemporary edition for Africa. Cape Town, South Africa: Juta.

Smit, P. J. (2009). Strategic planning: Readings. Kenwyn, South Africa: Juta.

Voortman, C. (2004). Global logistics management. Cape Town: Juta Academic.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

11.0 Appendix

1. Organizational Structure

 

 

11.0 Appendix

1. Organizational Structure

 

 

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