The Coca-Cola Company

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The Coca-Cola Company accounting project

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The Coca-Cola Company

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

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