The Coca-Cola Company began in the late 19th century and is now one of the largest producers of soft drinks worldwide, maintaining a presence in over 200 countries. It generates 70% of its profits internationally and employs over 30,000 people globally. In the US market, Coca-Cola maintains over 40% market share compared to 21% for PepsiCo and 8% for Cadbury-Schweppes. Recent recommendations for Coca-Cola include diversifying its product line, investing in market research, and lowering expenses through franchising to address declining sales revenues and profit margins.

1. Running Head: RESEARCH ANALYSIS
1
RESEARCH ANALYSIS
17
Research Analysis
Natasha R. Chalk
University of Phoenix
In the latter part of the 19th century, the Coca-Cola Company
began its existence. Coca-Cola is one of the foremost global
producers and disseminators of soft drink beverages, syrups,
and concentrates. Coca-Cola maintains a presence in more than
two hundred nations and is world-renowned for its innovative
beverage, Coca-Cola. The brand has been and has expanded to

2. encompass greater than two hundred and thirty distinct brands
(Pöhler, 2017; Telekunta & Rathore, 2018). The Coca-Cola
organization has central offices in Atlanta, Georgia. The
subsidiaries of Coca-Cola provide gainful employment for more
than thirty thousand families worldwide. Coca-Cola derives
70% of its profits and corporate volume from international
commerce. The global presence of Coca-Cola is its primary
strengths (Levy & Young, 2004).
The US soft beverage market has three primary actors, which
are, PepsiCo and Coca-Cola, and Cadbury-Schweppes. Over
40% of the domestic market pertains to Coca-Cola, in
comparison to 8% market share held by Cadbury-Schweppes and
21% maintained by PepsiCo. Although Coca-Cola is an
international brand, it maintains an emphasis on the local
domestic market. Research has shown a clear relationship
between the context of organizations´ market percentage and the
degree of viability (Pöhler, 2017; Telekunta & Rathore, 2018).
Studies show there are four attributes why the market
percentage is associated with enhanced viability. First of all,
the economies of scale combined with an augmentation of
experiential knowledge make the most efficient optimization a
production technology and techniques. Second, the clients are
adverse to the risks and will consequently remain with the
primary market actors resulting from prevailing comfort factors.
Third, attributed to presence and leadership sustained by Coca-
Cola in the marketplace, the organization can apply its position
towards enabling the negotiation decrease pricing in the supply
chain. The Coca-Cola organization also has the capacity of
decreasing pricing for the products it manufactures. The fourth
attribute is that the leader in the marketplace has exceptional
administrative units with effective industrial processes in all
facets of the organization. The Coca-Cola organization applies
the guideline of an adapt stand incorporation (Levy & Young,
2004). Coca Cola´s success represents advocacy of the adaptive
stand strategy. Porter study considers the environmental tractors
are influencing the competitive position of market actors. Five

3. forces are having a competitive nature governing
competitiveness, and these forces are the following:
a. The introduction of a market actor.
b. The menace of replacement goods with competitive
substitutes.
c. The negotiating and bargaining capacity of the consumers.
d. The market positioning and bargaining ability office
supplies.
e. The competitiveness of the industry (Levy & Young,
2004).
The Coca-Cola Company engages in an oligopoly category of
market structure. An oligopoly market structure is detailed as a
framework where a few large market actors are vying for market
share. In the soft drink beverage segment of the United States,
the primary actors are Coca-Cola, PepsiCo and Cadbury
Schweppes. In an oligopoly, there are usually few participants
dominating the sales scenario. In an oligopoly, the potential for
numerous small size firms is limited due to the barriers
established by major actors. The larger market actors create
more than half of all of the sales volume. Oligopolies rely on
the differentiation of products (Pöhler, 2017; Telekunta &
Rathore, 2018). Coca-Cola facilitates the availability to
consumers using a matrix of corporately-owned or administrated
bottling and dissemination associates inclusive of the
independent bottling companies, retailers, and wholesalers. The
Coca-Cola Company has implemented a system of franchised
distribution since the late 19th century. The franchise paradigm
enables Coca-Cola to manufacture concentrated syrup products
distributed by bottlers nationally. The franchise example
empowers Coca-Cola with cost avoidance regarding,
distribution, warehousing, and fabrication. The franchise model
facilitates more rapid business scaling (Pöhler, 2017; Telekunta
& Rathore, 2018).
The business cycle details the fluctuations throughout the
economy in general commercial activity, trade, and production.
The boom-bust cycle represents the upside and downward

4. variations of indexes of the GDP. The economic cycle describes
the intervals of contractions and expansions in the industrial
occupations surrounding a long-term developmental growth
trend. The business cycles are classified as possessing four
different phases. These phases are trough, contraction, peak,
and expansion (Federal Reserve Bank, 2018).
The trough in the position economic cycle is the lowest value
from which the subsequent stages of expanding and contracting
become manifest. The contraction precedes the trough and is
manifest by slow growth, decreases in employment and the
subsidence of pricing tensions. The economy normally enters
the contraction phase after a peak. The peak of the cycle is the
superior point of the economic cycle where the national
production is established at its maximum permissible output.
Moreover, the indexes of employment corresponded to the full
and superior values. Peaks are periods of high inflation. The
expansion is manifest by enhanced volumes of employment,
economic development, and inflation (Federal Reserve Bank,
2018).
The present stage of the business cycle in the United States is
the expansion phase demonstrated in the Appendix. The real
GDP is manifest by an assessment calibrated for inflation
reflecting the values of merchandise and services realized by an
economy annually with its expression in base year prices. The
GDP is frequently referred to as the constant price, inflation
calibrated GDP (Federal Reserve Bank, 2018).
The real GDP is manifest by an assessment calibrated for
inflation reflecting the values of merchandise and services
realized by an economy annually with its expression in base
year prices. The GDP is frequently referred to as the constant
price, inflation calibrated GDP. The inflation-adjusted
Consumer Price Index is a complete estimation applied for the
assessment price modifications in a basket of merchandise and
services manifesting consumption spending in an economic
system. Inflation assessed using the CPI. The Consumer Price
Index in the United States is an assessment of the modification

5. of the dollar´s buying power and the inflation index (Federal
Reserve Bank, 2018).
The Consumer Price Index demonstrates the present prices
basket of services and merchandise in the context of the prices
occurring during a corresponding interval in a prior year to
manifest the influence of inflation regarding buying power. The
CPI is one of the most well acknowledged lagging indicators
(Federal Reserve Bank, 2018). The recommendations to the
administrators of the Coca-Cola Company are to maximize
profits using decreasing capital expenditures in its organization
by establishing new franchises. The global beverage market
anticipated demonstrating an annual growth index of 4% up to
the year 2020. The 4% growth on an annual basis is anticipated
deliberate to liberate $150 billion in overall market potential.
Traditionally, Coca-Cola has been reliant on its sales volume a
peak of $46 billion in 2014 which declined to $35.41 billion in
2017 (Pöhler, 2017; Telekunta & Rathore, 2018).The new
emphasis placed on the value to increase market share. Another
recommendation is the investment in market research and
product development to expand its product line further.
The graph demonstrating the economic indication leading index
is a compilation of 10 distinct reports published before the
release of the LEI. The information on the graph tends not
showing a change in the direction of the market until the change
has continued for three consistent months. The LEI is broadly
viewed as a more efficient forecast tool regarding recessionary
periods then expansion periods. Notwithstanding, the LEI has
been able to forecast various settings which never realize.
Studies have shown that financial analysts had the ability of
accurately forecasting of the previous recession with accuracy.
The real GDP escalated at a yearly rate up 2.3% during the
initial quarter of 2018. This is a forecast provided by the
Economic Analysis Bureau. In the fourth quarter of the year, the
real GDP has anticipations of increasing 2.9%. The Bureau of
Econometric Analysis emphasized the first quarter forecast was
having its basis on incomplete origin data having the potential

6. of a revision (Federal Reserve Bank, 2018).
The second forecast for the first quarter founded on more
comprehensive information will be published at the end of May
2018. The enhancements in the real GDP during the first quarter
were reflections of the assertive contributions derived from
fixed Investments of a non-residential nature, personal
consumption expenses, and investment in the private inventory
sector, federal government expenditures, local government
expenditures, and exports (Federal Reserve Bank, 2018). The
decline of the real GDP development during the first quarter
shows decelerations in local government expenditures, exports,
residential stationary investments, and personal consumptions.
These motions were in part adjusted by an increase in the
investment of private inventory. The import sector is normally
subtracted in the tabulation of a gross domestic product. The
present dollar value of the GDP augmented 211 billion dollars
or 4.3 percentage points during the first quarter to a total of
approximately 20 trillion dollars. During the fourth quarter, the
present dollar value of the GDP is forecast to increase by 254
billion dollars or 5.3% (Federal Reserve Bank, 2018).
Many consumers are confounded regarding the distinction
between the Consumer Price Index and inflation. The Consumer
Price Index is a rating applied for the assessment of change.
The federal government selected an arbitrary year as a base
which was established equivalent to 100. Presently the year
applied is the average between the economic productions of
1982 to 1984. Before the establishment of the 1984 annual base,
the previous benchmark was 1967. The Bureau of Labor
Statistics conducts a monthly survey nationwide for baskets of
merchandise and services while documenting the outcome in
numerical form. An item costing $1 in 1984 costs $1.85 today
(Federal Reserve Bank, 2018).
Banking institutions apply the effective federal funds rate as a
differential for overnight lending to fulfill their reserve
capacity. The effective federal funds rate is the most significant
interest index in the national economy which influences

7. inflation, development, and employment. Depository
institutions and banks in the United States empower the Federal
Reserve with their accounts. These ledgers are the manner by
which lending institutions facilitate customer payments and
proprietary payments (Federal Reserve Bank, 2018).
The lending institutions with the highest credit ratings receive
financing of overnight funds assessed at the sufficient funds'
rate. The Federal Reserve publishes benchmarks for funds at
depository facilities. The banking institutions deposit funds
with the Federal Reserve. In the event a banking institution has
a more substantial balance at the end of the day established by
the benchmark, the Federal Reserve will compel the lending of
money to institutions which do not have sufficient funding. As a
consequence, these institutions remit the funding with an
interest surcharge at the effective fund's rate (Federal Reserve
Bank, 2018).
The prime rate is the surcharge remitted by clients with good
credit to the banking institutions. Conventionally, large
corporations including Coca-Cola are the financial institutions
of primary clients. The prime interest rate is primarily derived
from the federal funds rate. The prime rate has great
significance for the individuals attributed to the influence of the
prime rate on the interests available for consumers. The primary
determinant of the interest indexed surcharge is the peril of
default. Coca-Cola and other large organizations have minimal
probabilities of default. Consequently, in the banking industry,
there is differential treatment between commercial and private
clients. The prime rate is a reference point for ascertaining
other indexed interest surcharges available to the private and
commercial borrowers (Federal Reserve Bank, 2018).
The cost of producing the one-liter bottle of Coca-Cola
including labor, water, concentrate, and packaging is $0.15. The
production costs are standardized for the soft drink beverage
manufacturing industry (Mogaji et al., 2014). The consumption
of soft drink beverages has been steadily declining in the US
soft drink industry. Consequently, the declining consumption

8. influenced the profit margins realized by the Coca-Cola
Company. The revenues have been steadily decreasing (Statista,
2018). The Coca-Cola Company and received economic
reinforcement from the Tax Act of 2018 and refranchising
bottling initiatives during the fourth quarter of 2017 and the
first quarter of 2018 (Coca-Cola, 2018). The suggested course
of action for the Coca-Cola Company is to diversify into energy
drinks, bottled coffee, and bottled water. The pricing strategy
held by Coca-Cola is stable due to the oligarchic nature of the
soft drink beverage manufacturing industry in the United States.
The threat from substitute products is low considering there are
considerable barriers to entry for new market actors. Coca-Cola,
Cadbury- Schweppes, and Pepsi-Cola will each continue to vie
for increased market share.
Conclusion
The Coca-Cola Company has been established since the
nineteenth century. It has been an institution that has developed
generationally. Presently, the sales revenue of the Coca-Cola
Company is in decline compared to 2014. The economic
indicators demonstrate stages of expansionary growth for the
near future. The suggestions are for Coca-Cola to develop its
product line and lower its expenses. The decreasing of expenses
and the optimizing of profits will enable the Coca-Cola
organization to thrive. Furthermore, the recommendation of
making its presence more dominant in the marketplace could be
achieved by the exploitation of new markets.
Appendix
Figure 1: Leading Index for the United States.Retrieved from
https://fred.stlouisfed.org/series/USSLIND?utm_source=series_
page&utm_medium=related_content&utm_term=related_resourc

9. es&utm_campaign=categories
Figure 2: Real Gross Domestic Product. Retrieved from
https://fred.stlouisfed.org/series/GDPC1
Figure 3: Inflation, Consumer Prices in the United States.
Retrieved from
https://fred.stlouisfed.org/series/CPALTT01USQ657N
Figure 4: Consumer Price Index: Total for All Items in the
United States. Retrieved from
https://fred.stlouisfed.org/series/LNS14000024
Figure 5: Unemployment Rate- 20 years and over. Retrieved
from https://fred.stlouisfed.org/series/LNS14000024
Figure 6: Effective Federal Funds Rate. Retrieved from
https://fred.stlouisfed.org/series/FEDFUNDS
Figure 7: Bank Prime Rate. Retrieved from
https://fred.stlouisfed.org/series/MPRIME
Figure 8: Production costs for the one-liter bottle of Coca-Cola
Classic (Mogaji et al., 2014).
Figure 9: Production costs for the one-liter bottle of Pepsi- Cola
(Mogaji et al., 2014).
Figure 10: Retail price for the one-liter bottle of Coca-Cola
(Statista, 2018).
Figure 11: Total US soft drink beverage sales 2014- 2017
(Statista, 2018).
Figure 12: Coca-Cola Company Annual Revenues 2014- 2017
(Statista, 2018).

10. References
Coca-Cola (2018). Archive of quarterly earnings releases. Coca-
Cola. Retrieved from https://www.coca-
colacompany.com/investors/archive-of-quarterly-earnings-
releases
Federal Reserve Bank (2018). Bank Prime Loan Rate. Federal
Reserve Bank. Retrieved from
https://fred.stlouisfed.org/series/MPRIME
Federal Reserve Bank (2018). Consumer Price Index Total All
Items for the United States. Federal Reserve Bank. .Retrieved
from https://fred.stlouisfed.org/series/CPALTT01USQ657N
Federal Reserve Bank (2018). Effective Federal Funds Rate.
Federal Reserve Bank. .Retrieved from
https://fred.stlouisfed.org/series/FEDFUNDS
Federal Reserve Bank (2018). Inflation Consumer Prices for the
US. Federal Reserve Bank. .Retrieved from
https://fred.stlouisfed.org/series/CPALTT01USQ657N
Federal Reserve Bank (2018). Real Gross Domestic Product.
Federal Reserve Bank. .Retrieved from
https://fred.stlouisfed.org/series/GDPC1

11. Federal Reserve Bank (2018). Unemployment Rate Twenty
Years and over. Federal Reserve Bank. .Retrieved from
https://fred.stlouisfed.org/series/LNS14000024
Levy, D. & Young, T.T. (2004). ¨The real thing¨nominal price
rigidity of the nickel Coke. Journal of Money, Credit, and
Banking, 36(4): 765- 799. Retrieved from
https://mpra.ub.uni-muenchen.de/1046/
Mogaji, P.B., Adejuyigbe, S. B. & Adesida, V.K. (2014).
Production Cost Estimation in Food and Drink Industry (A
Case Study of a Soft Drink Company in Lagos, Nigeria). Journal
of Emerging Trends in Engineering and Applied Sciences,
5(1): 45- 50. Retrieved from
http://jeteas.scholarlinkresearch.com/articles/Production%
20Cost%20Estimation.pdf
Pöhler, M. L. (2017). Activating Processes in the Brand
Communication of Valuable Brands on
the example of Coca-Cola.
Retrieved from
https://www.theseus.fi/bitstream/handle/10024/126326/Poehler_
Marie-
Luise_1206439_FV_BA%202.0%20-
%20Activating%20Processes.pdf?sequence=1
Statista (2018). Coca-Cola Company- Statistics and Facts.
Statista. Retrieved from
https://www.statista.com/topics/1392/coca-cola-company/
Statista (2018). Soft drinks. Statista. Retrieved from
https://www.statista.com/outlook/20020000/104/soft-
drinks/north-america#
Telukunta, R., & Rathore, S. P. S. (2016). The analysis of 4p's
of marketing on Coca-Cola and
RC Cola with the objective to find why RC Cola had failed in
the international markets. TRANS Asian Journal of Marketing
& Management Research (TAJMMR), 5(12), 50-60. Retrieved
from
.http://www.indianjournals.com/ijor.aspx?target=ijor:tajmmr&v

12. olume=5&issue=12&article=05
Addendum
Lessons learned from week 1, week 2, and week 3.
· The importance of using published graphs for economic
forecasting.
· The significance of applying thorough research.
· The importance of creating graphs in Excel.
· Conducting diligent research with the Coca-Cola Company.
· The importance of graphs as a communication element.
· The importance of following instructions.
Coca-Cola Production Costs (liter container)
0.15
$USD
Pepsi-Cola Production Costs (liter container)
0.15
$USD
Coca- Cola Price per Unit ($USD)
1.43 1.48 1.52 1.56
2014 2015 2016 2017
Total US Soft Drink Consumption
65430 65542.8 63145 62392.5
2014 2015 2016 2017
Millions of Units
Coca-Cola Company Annual Revenues
45998 44294 41863 35410
2014 2015 2016
2017
$ Millions

13. This is a discussion post. Please make sure is at least 1-2
paragraph
The second most fundamental international relation is
economics. Most countries participating in the world economy,
a mostly capitalist system where countries and companies
compete to bring quality and cheap goods to consumers. Even
though the U.S. understands its responsibility to the global
markets and role in sustaining its global economic supremacy,
some political scientists and elected officials advocate for
keeping jobs at home. Protectionism is the idea that you must
protect the homeland first, specifically with jobs.
Internationally, the World Trade Organization’s responsibilities
are to keep trade open by cutting tariffs, creating fairer trade,
and settling disputes.
Today’s world seems to be moving beyond sovereignty and
toward supranational leadership to cooperate on issues of global
importance. What are some of these issues? How might they be
solved through supranational cooperation? Does such
cooperation impede the sovereignty of independent nations?
Please sure to include specific examples in supporting your
point.
PLEASE USE at least one SCHOLARLY PEER-review
REFERENCES, along with the book below, Intext citation APA
FORMAT AND PLEASE MAKE SURE ONE IS FROM THIS
BOOk
Roskin, M. G., Cord, R. L., Medeiros, J. A., & Jones, W. S.
(2014). Political science: An introduction (13th ed.). Boston,
MA: Pearson. References