The Coca-Cola Company distributing the Coca-Cola product has faced many macroeconomic variables that indicate trends in the economy. A reduction in consumer confidence in the United States, resulting in lower product sales, has been offset by rising sales in overseas markets. Coca-Cola has combated problems such as unemployment, global warming, and rising interest rates. The Coca-Cola Company looks to new programs to encourage employment, additional ways to provide water for their product, and good management to maintain a healthy credit rating.
Impact of Economic Variables on the Coca-Cola Product
With an American economy that often tethers on the brink of recession, a study of the variables that affect supply and demand of the Coca-Cola product becomes an increasingly critical task for the Coca-Cola Company. Those who study macroeconomics are concerned primarily with the “forecasting of national income, through the analysis of major economic factors that show predictable patterns and trends, and their influence on one another” ("Macroeconomics defined," n.d.). Profitability of the Coca-Cola product is affected by many macroeconomic variables. This paper reports on three of the macroeconomic variables that influence supply and demand of the Coca-Cola product and that also influence the company's profitability.
Unemployment
Over the past few years, the Coca-Cola Company has seen a decrease in the demand for the Coca-Cola product among consumers in the United States. "The company has relied on strength overseas to counter a weak North American market that has experienced high unemployment and low consumer confidence" (Reuters, 2010). Unemployment is a crisis that has made businesses worldwide wake up to the lack of ...
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Coca- Cola has always been popular with America and in the 1950s; it became the main soda to drink during the 1950s and also the golden age for the product. One glass of Coca- Cola was only five cents. The soda was a symbol of social status. If you wanted to be refreshed and satisfied, then you have to drink Coca- Cola. Celebrities, actors, athletes, workers, kids and even Santa Claus had to have Coca- Cola in their hand. With the boom of television in households, Coca-Cola became more popular because of the advertisements contain relaxing and being comfortable with the soda in their hand. It became so appealing that Time’s Magazine stated that, “It is simpler, sharper evidence than the Marshall Plan, or a voice ...
The Coca-Cola Company - American multinational corporation operates in a nonalcoholic segment of Beverage Industry. The history of the industry goes back to the 17th century, when the first marketed soft drink came to the Western Market.
People can afford to buy more soft drinks under current economic situation. Recessions do not seem to affect sales of CSD. Although produced by main market players soft carbonated drinks cost more than similar products of local and private label manufacturers, consumers are willing to pay an extra price for the name, particular taste, and image. Fierce competition in CSD industry forces Coca-Cola and PepsiCo to expand into new and emerging markets which present high potential for the company’s development. However, some foreign markets proved to be highly competitive. Coca-Cola Company’s operation in China faced antitrust regulations, advertising restrictions, and foreign exchange control.
Birchall, Jonathan (2008, February 14). Emerging markets help keep Coca-Cola bubbling: [LONDON 2ND EDITION]. Financial Times, p.25. Retrieved March 8, 2008, from ABI/INFORM Global datebate. (Document ID: 1429142611).
To handle the enormous scope of its business, the Coca-Cola Company has divided into six operating units: Middle and Far East Groups, Europe, The Latin America Group, The North America, The Africa Group and The Minute Maid Company. The head Quarter is in the United States. Methods of Research I will use The method of research which I will use is the secondary research, i.e. I have asked The Coca-Cola Company to send me their history and annual reports. I will also call The Coca-Cola Company office to ask some details, I will also use ask them some relevant questions (questionnaire method), interview the people on the high street and will do some research over the Internet. From those sources I am going to finish my all other tasks.
The Coca Cola Company has been increasing its income value. “Coca-Cola reported earnings and revenue that topped analysts' expectations for the second quarter” (Coca-Cola Co). Every eight years their profit per share increase 50 cent. From 2004-2012 it has increased 50 cent which now it’s been increasing 50 cent per share in 2-3 years. They’re revenue is $9.702 billion, compared with a forecast of $9.652 billion. Coca Cola profit has been
Therefore, the long-term brand of Coca cola and better pricing strategies would help in competing with Pepsi. Unlike, Pepsi, Coca cola had targeted entering into partnership and alliances with local distributors and firms. This helps to develop strong relationship within the domestic firms to reduce the domestic barriers and thus, enhance the company’s competitiveness (Thabet, 2015). Lastly, the Asian markets consist of related and supporting industries to the soft drink industry that helps the companies in gaining a strong competitive position in the markets. Based on the competitive advantage of nation’s model, Coca cola has more home based advantages to develop a competitive advantage in relation to other countries on a global
The purpose of this report is to compare financial reports from the two largest soft drink manufacturers in the world. The Pepsi Co. and Coca Cola have been the industry's leaders in their market since the early 1900's. I will use relevant figures to determine profitability, and break down key ratios in profitability, liquidity, and solvency. By breaking down financial statements, and converting them to percentages and ratios, comparisons can be made between competitors regardless of size.
How has the competition between Coke and Pepsi affected the industry’s profits? Can Coke and Pepsi sustain their profits in the wake of flattening demand and the growing popularity of non-carbonated drinks? The soft drink industry is a highly profitable industry and its success is due to the large consumption of non-alcoholic beverages through which both concentrate producers and bottlers are profitable. Given the U.S. Industry Consumption Statistics, Exhibit 1, it is clear that, after deducting beer and wine, soft drinks account for about 90 % of the total liquid consumption, while Coke and Pepsi account for about 75 % of the soft drink industry. The high consumption of CSDs is related to the soft drink industry selling to consumers through five principal channels: food stores, convenience stores, vending, fountains and others.
The Coca-Cola company was founded in 1886 by John Pemberton, a Civil War veteran and Atlanta pharmacist. He was inspired by his curiosity as he stirred up a fragrant, caramel-colored liquid that he brought down to a place called Jacobs’ Pharmacy. There he added carbonated water and let several customers sample the new concoction. Jacobs’ Pharmacy put it on sale for five cents a glass and named it Coca-Cola. This “inspired curiosity” has now grown to be the world’s leading manufacturer, marketer, and distributor of nonalcoholic beverage concentrates and syrups. In 1906 Coca-Cola opened bottling plants in Canada, Cuba, and Panama. Today they produce nearly 400 brands in over 200 countries. More than 70% of their income comes from outside the U.S. (1). This paper will focus on an analysis of operations of the statement of cash flow reports and a vertical and horizontal analysis of the consolidated balance sheets. Also an analysis of the global financial condition of the Coca-Cola Company and the value of goodwill and other intangible assets will be discussed.
Weaknesses – Coca-Cola is a very successful company with an impeccable social media following. Word of mouth is probably a strength, but only when feedback from consumers is positive, but there are people who are against Coca-Cola and their products. Even though Coca-Cola produces over 200 brand products, Coca-Cola lacks the social media popularity of other brands that they produce (Moth, 2013). Many drinks that they produce are extremely popular such as Coke or Sprite, but there are a lot of Coca-Cola products that are unknown, unseen, and unavailable for
As the world 's largest manufacturer and distributor of non-alcoholic beverages, Coca-Cola is certainly no stranger to global marketing. Established in the US, Coca-Cola initiated its global expansion in 1919 and now markets to more than 200 countries worldwide. It is one of the most recognizable brands on the planet and also owns a large portfolio of other soft drink brands including Schweppes, Oasis, 5 alive, Kea Oar, Fanta, Lilt, Dr Pepper, Sprite and PowerAde. Despite this, Coca-Cola often struggles to maintain its market share over its main rival PepsiCo in some overseas markets, particularly Asian countries.
The Coca Cola Company has been among the world’s top companies that have been able to perform well in all the areas of the world. The company follows the latest strategic research and evaluation methods to formulate such strategic policies that helps in not only meeting the customer expectations and desires but also achieving various organizational goals and objectives.
Look SDmart, Retrieved 05/16/07, from http://findarticles.com/p/articles/mi_m1365/is_1_31/ai_63974359/print. Coca-Cola: A Technological View, retrieved 5/18/07, from http://projects.olin.edu/ahs/HOT2004/PolarBears/content.htm. Coca-Cola Our Company- Around The World, retrieved 5/18/07 from http://www.coca-cola http://www.thecoca-colacompany.com/ourcompany/aroundworld.html Nutrition Business Journal. Penton Publishing. October/November 2005.
Learning from experience Coca-Cola has had some fierce competition over the years but nothing in the form of an entire health market shift like now. As well as mounting political persecution of its products like they are facing today. They must rely on past experiences to get through but likely will need to start studying the new trends to stay relevant.