The Coca-Cola Company
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The Coca-Cola Company

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The Coca-Cola Company accounting project

The Coca-Cola Company accounting project

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The Coca-Cola Company The Coca-Cola Company Presentation Transcript

  • THE COCA-COLA COMPANY
    Ashley Wabara
    Carolynn Vo
    Mary Pechulis
    Mai Ling Matthews
    Sophia Lee
  • THE COCA-COLA COMPANY
    World’s largest nonalcoholic beverage company that sells soft drinks, variety of waters, energy drinks, & juices
    Primary industry
    Marketing of their products
    Manufacturing syrups & concentrates for their drinks
    Major Competitors
    PepsiCo Incorporated
    Dr. Pepper Snapple Group Incorporated
    Nestlé S.A.
  • THE COCA-COLA COMPANY
    Major goal is to further increase their stake in global beverage market
    Seven different operating groups
    Eurasia and Africa
    Europe
    Latin America
    North America
    Pacific
    Corporate
    Bottling Investments
  • Management
    CEO: Muhtar Kent
    CFO: Gary Fayard
    CTO: Guy Wollaert
    Board of Directors
    Muhtar Kent
    Fourteen other members
  • MD&A, Coca-Cola works to:
    Use their assets to become an even stronger and more competitive company for is shareowners’ benefit
    Provide the public with beverages that satiates their consumers’ wants and needs
    Partner with companies where there is loyalty
    Maximize shareholders’ wealth in a responsible fashion
    Core Capabilities
    Consumer marketing
    Commercial leadership
    Franchise leadership
    Bottling & distribution operations
  • Key Financial Results
    Net income
    Coca-Cola’s net income attributable to shareowners increased from $6.8 billion in 2009 to $11.8 billion in 2010
    Increase shareholders’ wealth
    Increased common stock market price to $65.88
    Dividends increased from $0.41 to $0.44
    Current Ratio of 1.35
    Return on equity = 68.9%
    Unqualified opinion by Ernst & Young LLP
    Total audit fees, audit-related fees, tax fee, and all other fees was approximately $35,815,000 with $29 million allotted to audit fees alone
  • Strategic priorities
    Driving global beverage leadership
    Accelerating innovation
    Reports on internal controls by the company and Ernst & Young LLP inform the reader
    • Internal controls were maintained effectively
    • Recently North American operations was excluded from their evaluation of effectiveness
  • Regularly filed forms
    10-K
    10-Q
    8-K
    Sarbanes Oxley Act (SOX)
    Section 301
    Section 302
    Section 303
    Section 404
  • Subsidiaries or Segments
    Subsidiaries include
    Coca-Cola Refreshments USA, Inc.
    Coca-Cola Gbmh
    Energy Brands Inc.
    Innocent ltd.
    Operating segments
    Eurasia & Africa
    Europe
    Latin America
    North America
    Pacific
    Bottling Investments
    Corporate
  • A Closer Look…
    Energy Brands Inc.
    in the business of producing and selling Glaceau beverages
    Innocent Ltd.
    UK company that makes all natural fruit drinks
  • Recent Acquisition
    October 2, 2010-purchased the North American business of Coca-Cola Enterprises Inc.
    Combined the management of their acquired business with the management of the existing North American operations
    This created a North American business for the Coca-Cola Company that they think will be more organized and effective
  • Corporate Governance
    Corporate governance policies include
    Annual evaluation of the CEO’s performance and the board performance as a whole
    Guidelines on how a director is determined to be independent from The Coca-Cola Company
    Ethical disputes handled by:
    Creating community programs worldwide
    Hiring public relations companies to contest disputes
    Establishing complaint hotlines
    Company activities
    Created programs for HIV & AIDS testing, treatment, and prevention in Haiti and South Africa
    Started using plantbottle TM
    Reusing recycled cans and bottles
  • Coca-Cola is also facing ethical issues:
    Overconsumption of water at overseas factories
    Pesticides from water supplies
    Health concerns
    Tooth decay
    Weight gain
    Lower sperm count
  • Potential Employee?
    Pros
    Very structured organization with thousands of employees
    Employee benefits
    Cons
    Employee dissatisfaction
    Based on 158 employee reviews on glassdoor.com
  • Pepsi Hopes Tapping a Big Gun Will Restore Market Share
    PepsiCo’s mission to develop a stronger and more effective marketing campaign
    Costly mistake of missing a marketing opportunity on not sponsoring American Idol
    Now planning to sponsor X Factor
    Marketing strategy being used has been ineffective
    Even tries to imitate Coca-Cola’s marketing strategy
    Coca-Cola has a 70% dominance in restaurants in America
  • Pepsi Hopes Tapping a Big Gun Will Restore Market Share(cont.)
    Coca-Cola’s loyal customer base and image in community allows for more risky marketing strategies
    Spent $690 million compared to Pepsi’s $400 million on television commercials
    Marketing strategies are extremely important to gaining customers
    Coca-Cola will have to develop innovative ideas to maintain their lead with Pepsi’s close monitoring of their marketing strategies
    Any major mistakes can give Pepsi the lead
  • QUESTIONS?