Financial Plan Of Coca Cola

1) Past Performance – has been one of the most successful product launches in our history. In 2009, they

have sold more than 600 million cases globally. Put into perspective, that's roughly the same size as

total business in Germany. As of December 2009, Coca-Cola Zero is available in more than 130

countries With a portfolio of more than 3,300 beverages, from diet and regular sparkling beverages to

still beverages such as 100 percent fruit juices and fruit drinks, waters, sports and energy drinks, teas and

coffees, and milk-and soy-based beverages, their variety spans the globe.

The company has reported solid growth in the year 2010.They have won the market place and gained

global value share with an increase of 3% and have delivered stooping profits.Their international

volume has grown by 5%.

2) Operating Characterestics : The strong brand Coca-Cola growth came from a diversity of global

markets, including double-digit growth in India, Vietnam, the Philippines, Brazil, Russia and Egypt.

During the quarter unit case volume for brand Coca-Cola grew over 1 million unit cases in 24 different

countries. Total sparkling beverage unit case volume increased 2% in the quarter, with international

sparkling beverage unit case volume increasing 3%. Total still beverage unit case volume increased 8%

in the quarter, led by continued growth in juices and juice drinks, teas and water brands. Still beverage

unit case volume increased 12% internationally.

3) Corporate Strategy : They have a sustainanble growth strategy meeting their short term commitments

and investing in their long term goals . They have been building on their strengths on marketing and

innovation. uses segmentation to be able to remain competitive. It diversified into various products

starting in 1960 when it acquired Minute Maid Corporation, producer of Hi-C fruit drinks. It also

merged with Duncan Foods Corporation. Then in 1969, it bought the Belmont Springs Water Company

Inc. which produces bottled spring water . It also acquired Aqua Chem Inc and Taylor Wines

Company and other wineries. Aside from diversification it also expands its product line by producing

Fanta, Sprite, TAB, Fresca and diet colas. Their New campaign “Little drops of jOY” is their

restructuring strategy in India corporate strategy called the " 5 Pillar " strategy. The company has

identified the 5 pillars as

People

Planet

Portfolio

Partners &

Performance. Through this campaign , the company aims to gel with the Indian consumer as its own

rather than a western one.

4) Financial Alternatives Consequences and Consistency :

Cash from operations in this quarter increased 52% to $1.3 billion.

• they raise finance via their wholly owned Dutch financing subsidiary Coca-Cola HBC Finance B.V., except in

the case of subsidiaries with joint control, or countries where certain legal or tax restrictions or advantages

apply

• to maintain their presence & profile in the international capital markets and where possible they broaden their

investor base;

• they target specific investor segments through diversification of tenor and currency, although the euro is the

most important funding currency of the Group;

• they maintain a well-balanced redemption profile, and

• they use European Medium Term Note programme as well as their Global Commercial Paper programme as

the main basis for financing. all while taking decisive action to strategically advance our North America

business and further strengthen our franchise system in Europe.

Their Current Assets are 17208 million dollars and current liabilities are 13583 million dollars . They also have

a long term debt of 4452 million dollars but their shareholders equity is at 24543million dollars.

their general policy is to retain a minimum amount of liquidity reserves in the form of cash on balance sheet

while maintaining the balance of their liquidity reserves in the form of unused committed facilities, to ensure

that they have cost-effective access to sufficient financial resources to meet our funding requirements. These

include the day-to-day funding of their operations as well as the financing of our capital expenditure program.

In order to mitigate the possibility of liquidity constraints, they maintain a minimum of €250 million of

financial headroom. Financial headroom refers to the excess committed financing available, after considering

cash flows from operating activities, dividends, interest expense, tax expense, acquisitions and capital

expenditure requirements.

Strengths A firm's strengths are its resources and capabilities that can be used as a basis for developing a competitive advantage. Examples of such strengths include:

patents

strong brand names

good reputation among customers

cost advantages from proprietary know-how

exclusive access to high grade natural resources

favorable access to distribution networks

Weaknesses

The absence of certain strengths may be viewed as a weakness.

For example, each of the following may be considered weaknesses:

lack of patent protection

a weak brand name

poor reputation among customers

high cost structure

lack of access to the best natural resources

lack of access to key distribution channels

Opportunities

The external environmental analysis may reveal certain new opportunities for profit and growth. Some

examples of such opportunities include:

an unfulfilled customer need

arrival of new technologies

loosening of regulations

removal of international trade barriers

Threats

Changes in the external environmental also may present threats to the firm. Some examples of such threats

include:

shifts in consumer tastes away from the firm's products

emergence of substitute products

new regulations

increased trade barriers