the coca-cola company
Post on 17-Sep-2014
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The Coca-Cola Company accounting projectTRANSCRIPT
THE COCA-COLA COMPANY
Ashley WabaraCarolynn VoMary PechulisMai Ling MatthewsSophia Lee
THE COCA-COLA COMPANYWorld’s largest nonalcoholic beverage
company that sells soft drinks, variety of waters, energy drinks, & juices
Primary industryMarketing of their productsManufacturing syrups & concentrates for their
drinksMajor Competitors
PepsiCo IncorporatedDr. Pepper Snapple Group IncorporatedNestlé S.A.
THE COCA-COLA COMPANY
Major goal is to further increase their stake in global beverage market
Seven different operating groupsEurasia and AfricaEuropeLatin AmericaNorth AmericaPacificCorporateBottling Investments
ManagementCEO: Muhtar KentCFO: Gary FayardCTO: Guy WollaertBoard of Directors
Muhtar KentFourteen other members
MD&A, Coca-Cola works to:Use their assets to become an even stronger and more
competitive company for is shareowners’ benefitProvide the public with beverages that satiates their
consumers’ wants and needsPartner with companies where there is loyaltyMaximize shareholders’ wealth in a responsible fashion
Core CapabilitiesConsumer marketingCommercial leadershipFranchise leadershipBottling & distribution operations
Key Financial ResultsNet income
Coca-Cola’s net income attributable to shareowners increased from $6.8 billion in 2009 to $11.8 billion in 2010
Increase shareholders’ wealthIncreased common stock market price to $65.88Dividends increased from $0.41 to $0.44
Current Ratio of 1.35Return on equity = 68.9%Unqualified opinion by Ernst & Young LLPTotal 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 prioritiesDriving global beverage leadershipAccelerating innovation
Reports on internal controls by the company and Ernst & Young LLP inform the readerInternal controls were maintained effectivelyRecently North American operations was
excluded from their evaluation of effectiveness
Regularly filed forms10-K10-Q8-K
Sarbanes Oxley Act (SOX)Section 301Section 302Section 303Section 404
Subsidiaries or SegmentsSubsidiaries
include
Coca-Cola Refreshments USA, Inc.
Coca-Cola GbmhEnergy Brands Inc.Innocent ltd.
Operating segments
Eurasia & AfricaEuropeLatin AmericaNorth AmericaPacificBottling InvestmentsCorporate
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 AcquisitionOctober 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 GovernanceCorporate 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
factoriesPesticides from water suppliesHealth concerns
Tooth decayWeight gainLower 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 SharePepsiCo’s mission to develop a stronger and
more effective marketing campaignCostly mistake of missing a marketing opportunity on
not sponsoring American IdolNow planning to sponsor X Factor
Marketing strategy being used has been ineffective
Even tries to imitate Coca-Cola’s marketing strategyCoca-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 strategiesSpent $690 million compared to Pepsi’s $400
million on television commercialsMarketing strategies are extremely important
to gaining customersCoca-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?