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My professor just graded the attached document, but this is what he said is missing. Wo


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Hi,

My professor just graded the attached document, but this is what he said is missing. Would you please help me with it?

 Make sure the company's name is noted down consistently throughout the text.

. Make sure all tables and graphs are sandwiched between texts.

. Show revenue shares of CC and its competitors on a pie chart, and comment on the market type based on that information.



Running head: COCA COLA 1 Coca Cola

 

Student?s Name

 

Institutional Affiliation COCA COLA

 

2

 

SECTION IV

 

Coca cola has been on the drive to increase its revenues through strategic pricing and putting

 

more money in the advertising department and promotions. Pepsi is one of the greatest

 

competitor for coca cola. The types of costs associated with the production of coca cola are; Fixed costs; these do not vary with the type and amount of service that has been provided

 

in the short run. Variable costs; these type of costs change with the amount of service that is provided Average cost; this is the cost that is incurred in a single platform per hour. Marginal cost; this is the change in the total cost for each unit of output that is produced

 

(Cadle et al., 2014). Coca cola company experiences mixed costs that are attributed to marketing expenditure. These

 

costs contain both the variable and fixed portions. Changes that occur in the production process

 

or during the sale process affect the mixed cost but not at a proportionate rate. In addition to the

 

marketing expenditure, telephone and electricity bills (Cadle et al., 2014). These mixed costs

 

account for represent the minimum and or the basic cost of having the service for use by the

 

company. According to Coca cola, the fixed costs arises from the monthly expenses and the costs

 

incurred. The estimations of the fixed costs incurred by company amounted to $15 million. The

 

cost of goods sold by Coca cola amounts to an estimate of $2 billion where the total allocable

 

cost being 10% of the good that are accounted for in the cost of sales. The relevant activities in

 

the company such as the current cost of workers, salaries and wages that are within the bottling

 

department have an estimated annual cost of $130 million. In addition to the relevant costs, the COCA COLA

 

3

 

cost of direct materials in making the bottles such as the glasses, the chemicals used and the

 

water was estimated to be $63 million. The remaining irrelevant costs such as lighting and minor

 

utilities were $120,000 (Young, 2015). The relevant costs are main basis of decision making in

 

the company. These are the main determining factor of whether some operations of the company

 

will be carried on. Although irrelevant costs may be committed to the business, they may not be

 

reflected or allocated in some departments. From the above table, the results are the income statement of Coca Cola Company. The SG&A of

 

Coca Cola is the same as the cost of sales due to the amount of money that has been invested on

 

advertising. In assessing the profitability ratios of the company, the profit margin of the company

 

shows how much money the company generates in profit for every dollar in its revenue. This

 

shows how the revenues can be evenly distributed over the expenses that have been incurred in

 

the fiscal year of the company. The profit margin for Coca- cola is reasonable since it ranges

 

from 15-18%, this amount gives them enough money for re-investment and distribution to the

 

required shareholders. The profit margin of the company has been reducing over the years COCA COLA

 

4

 

between 2012- 2013 (Young, 2015). This has been explained by factors such as the various

 

amount of business that coca cola has in countries abroad. The reduced profit margin have

 

resulted in major write down and loses that are associated with foreign exchange. SECTION V

 

The return on assets for the company has been unstable over the years. The assets that have been

 

made by coca cola entail the cash and marketable securities and long term tangible assets.

 

Although the return on assets has been declining over the past years, coke has shown a good

 

return on the assets that?s showing a good profitability for the company.

 

Coca cola is among the world?s largest preferred brand with a variety of soft drinks. It mainly

 

focuses on targeting the value based advertising which allows for price discounts and its

 

allowances to its distributors and retailers. It adopts both the push and pull strategy in its

 

marketing analysis. Its main strategy focuses on listening to the voices that around and that are

 

asking for beverage. It is also aimed at contributing in the communication around the globe COCA COLA

 

5

 

through creating a sense of wellness and an educative platform. Its major segmentation are the

 

demographic segmentation which accounts for the greatest percentage of the company?s

 

product, behavioral segmentation and health wise segmentation are included in the market

 

analysis.

 

In addition to market segmentation, Coca cola adopts both mass marketing and targeted

 

marketing. Every customer is taken as a target customer by the company. This takes into

 

consideration the age of individuals and the health status of individuals. The health status has

 

triggered the production of diet coke which ensures that it meets the need of individual with

 

diabetes. In addition the PEST analysis is considered in the marketing strategies of the company

 

(Young, 2015). This analyses focus on the political, economic, social and technological factors

 

that influence the strategy adopted by the company in the environment that it operates in. when it

 

comes to the analyses of the political factors, the non-alcoholic beverages are controlled by a

 

certain body. Thus the different government systems that enforce and enact the law affect the

 

production of components by the company. Economic factors take into consideration the interest

 

rates, inflation rates and the exchange rates. Exchange rates are attractive to companies for

 

instance coca cola, this encourages them to borrow more money for investment.

 

Coca cola exists in a perfectly competitive market, this affects the demand of the products. For

 

this reason, the increase or decrease in the price of the Coca cola products affects the demand of

 

the product by the consumers. There exists barriers and limitations for such a type of market

 

structure. Many companies that are in the soft drink business invest more in their advertising.

 

Thus there exist a threat by new entrants in the market, due to the customer loyalty created by the

 

competing brand which is Pepsi, it makes it hard for the coca cola company to keep up, thus COCA COLA

 

6

 

there must exist product differentiation so as to ensure that it maintains and attract more

 

customers in the market.

 

The threat of substitutes is another barrier in the market structure that Coca cola operates in.

 

Pepsi provides almost the same product as Coca cola does. These two companies act as rivalries

 

and each company is on a mission to increase both the revenues and the profitability. Apart from

 

the rivalry firm, there exists substitutes such as smoothies, milkshakes, water and coffee.

 

Switching costs by coca cola may make it difficult for them to increase their profitability through

 

alterations of the prices.

 

SECTION VI

 

The global beverage industry is highly regulated and entails various instabilities. This is due to

 

the changes and the existing uncertainties in both the political and economic environment. The

 

PEST pose a very great threat in the beverage industries. There is stiff competition in the

 

beverage industry, companies that have not embraced diversity remain vulnerable to barriers

 

such as rivalry, the suppliers and buyers power. Despite coca cola being a diversified company,

 

product substitution and the new entrants pose a great threat to the company.

 

Coca Cola being one of the largest global company with a great market share, has a market

 

capitalization of about $120 billion which is beyond the average beverage industry of $75

 

billion. In addition, the market capitalization is above Pepsi which is $98 billion. The better

 

competitive edge is attributed to the strong global presence that it possess, strong capital and

 

asset base, wide and distribution channels that are reliable and the global brand recognition over

 

its competitors. COCA COLA

 

7

 

The leadership and management structure of coca cola have been initiated by the internal

 

changes that have occurred in the company. The company needs to continue promoting its

 

historical trend that has been created over the years through motivation, innovation and training

 

and development in the company. Further, introduction, revision and the implementation of

 

effective marketing strategies, faster decision making techniques and effective asset utilization

 

should be highly considered and evaluated so as to ensure the company continues being the

 

number one brand in the beverage industry. If not so, coca cola may page way and leave the

 

battle to its competitors. References

 

Cadle, J., Eva, M., Hindle, K., Paul, D., Rollason, C., & Turner, P. et al. (2014). Business

 

Analysis (1st ed.). Swindon: BCS Learning & Development Limited.

 

Team, T. (2015). Forbes Welcome. Forbes.com. Retrieved 27 November 2016, from

 

http://www.forbes.com/sites/greatspeculations/2015/08/21/how-coke-is-restructuring-its-way-tohigher-profitability/#1e44b6d5503e

 

Young, S. (2015). Financial Analysis of the Coca Cola company. UKEssays. Retrieved 27

 

November 2016, from https://www.ukessays.com/essays/business/financial-analysis-of-the-cocacola-company-business-essay.php

 


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Hi,

My professor just graded the attached document, but this is what he said is missing. Wo.zip

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