A Report on Strategic Management Case Of COCA COLA

(Year 2007) Subject: Managerial Policy Section: B [MBA Evening Program] Faculty: Brig. ret.! S"a#eel A"me$

Prepared & Presented b !

Fara% A"me$ Ar)"a$ +"an Mo"amma$ 0a1a) &ee)"an /l (a1ue "ro#p 2 &o"aib 'en$a Mu"amma$ ,abi)" ,a"a A)"o# +umar ,ari1 (ami$i Me"boob (a))an Se"ri)" An-ar ,ari1 +"an Babar *a%a &a#ia *a)"ee$ .bai$ /lla" Aleem

Managerial Policy

Table of Contents 1- EXECUTIVE SUMMARY...........................................................................................4 2- HISTORY OF COCA COLA....................................................................................... !- "RA#$S OF COCA COLA.........................................................................................%
2.34 Energy 5rin#)..................................................................................... ..............6 2.74 8uice)98uice 5rin#)............................................................................................6 2.24 So:t 5rin#)................................................................................................. .......; 2.<4 ,ea an$ =o::ee............................................................................................... ...; 2.> 0ater....................................................................................................... ..........; 2.?4 .t"er 5rin#).................................................................................. .................3@

4- CO#SUMER CHOICE AT A &LA#CE...................................................................11 ...........................................................................................................................................12 - $IFFERE#T 'LAYERS I# THE SOFT $RI#(S MAR(ET...............................1! Ca)b*+, S-./e00es a+e 1o2ne) fo+-e of Ca)b*+, fo*n) 2n 1%24 of U.(. an) S-./e00es of I+elan) fo*n)e) 2n 13%!. Ca)b*+, S-./e00es 2s *n2f2e) b*ss2n4 /.2-. 5ana4es t.e +elat2ons .2s /2t. o6e+ 247 f+an-.2se) bottl2n4 o0e+at2on on 8a5b2a an) 825bab/e. Ca)b*+, S-./e00es .as fottle+, an) 0a+tne+s.20 o0e+at2ons 2n 14 -o*nt+2es a+o*n) t.e /o+l).................................................................................................................................1! 9- OUR MISSIO#:..........................................................................................................14 3- OUR VISIO#:..............................................................................................................14 %- IM'ROVE$ MISSIO# STATEME#T:....................................................................1 ;- IM'ROVE$ VISIO# STATEME#T:.......................................................................1 17- COCA COLA - RATIO A#ALYSIS........................................................................1;
3@.3 *A,A. ABACDSAS.............................................................................................7@

11- FI#A#CIAL HI&HLI&HTS....................................................................................21 12- U#IT CASE VOLUME.............................................................................................21 1!- CURRE#T OR&A#I8ATIO#AL CHART............................................................2!
7

Managerial Policy

14- VALUE CHAI# A#ALYSIS FOR COCA COLA..................................................2! 1 - E-COMMERCE:.......................................................................................................23 19- VALUE OF THE FIRM............................................................................................23 13- (EY I#TER#AL FACTORS <e24.t Rat2n4 /e24.t S-o+e ..................!1

1%- (EY EXTER#AL FACTOR....................................................................................!2 1;- COM'ETITORS ......................................................................................................!! 27- S<OT A#ALYSIS..............................................................................................!4 21- S'ACE MATRIX STRATE&IC MA#A&EME#T METHO$............................!3 22- "C& MATRIX...........................................................................................................47 2!- IE MATRIX...............................................................................................................42 24- =S'M OF COCA COLA..........................................................................................4! 2 - 'RO>ECTE$ RATIO A#ALYSIS..........................................................................43 S29- CO#CLUSIO#:......................................................................................................4%

Managerial Policy

1- EXECUTIVE SUMMARY Coca-Cola, the product that has given the world its best-known taste was born in Atlanta, Georgia, on May 8, 1886 Coca-Cola Co!pany is the world"s leading !anu#acturer, !arketer and distributor o# non-alcoholic beverage concentrates and syrups, used to produce nearly $%% beverage brands &t sells beverage concentrates and syrups to bottling and canning operators, distributors, #ountain retailers and #ountain wholesalers Coca-Cola was #irst introduced by 'ohn (yth Pe!berton, a phar!acist, in the year 1886 in Atlanta, Georgia when he concocted cara!el-colored syrup in a threelegged brass kettle in his backyard )e #irst *distributed+ the product by carrying it in a ,ug down the street to 'acob"s Phar!acy and custo!ers bought the drink #or #ive cents at the soda #ountain Carbonated water was tea!ed with the new syrup, whether by accident or otherwise, producing a drink that was proclai!ed *delicious and re#reshing+, a the!e that continues to echo today wherever Coca-Cola is en,oyed Coca-Cola originated as a soda #ountain beverage in 1886 selling #or #ive cents a glass -arly growth was i!pressive, but it was only when a strong bottling syste! developed that Coca-Cola beca!e the world-#a!ous brand it is today Coca- Cola was the leading so#t drink brand in &ndia until 1.//, when it le#t rather than reveal its #or!ula to the Govern!ent and reduce its e0uity stake as re0uired under the 1oreign 2egulation Act 31-2A4 which governed the operations o# #oreign co!panies in &ndia &n the new liberali5ed and deregulated environ!ent in 1..6, Coca-Cola !ade its re-entry into &ndia through its 1%%7 owned subsidiary, )CC8P9, the &ndian bottling ar! o# the Coca-Cola Co!pany :he !ain ob,ective o# this study lies in understanding the organi5ation and studying and understanding the consu!ers" perception and opinion about the latest product, Minute Maid Pulpy ;range, introduced into &ndia, by the Coca-Cola Co!pany A consu!er sa!pling involving < < lakh people was conducted in a span o# 6% days across !a,or cities in order to give the product the re0uired !arketing push and to recogni5e the prospective consu!ers and their opinion in order to develop and !arket the product in a better way in the near #uture :he !ethodology used in studying and understanding the perceived views o# consu!ers towards the product was =(AMP9&>G" :he #indings o# the activity have been drawn out in #or! o# graphs and suggestions have been o##ered there #ro!

Managerial Policy

2- HISTORY OF COCA COLA Coca-Cola? originated as a soda #ountain beverage in 1886 selling #or #ive cents a glass -arly growth was i!pressive, but it was only when a strong bottling syste! developed that Coca-Cola beca!e the world-#a!ous brand it is today 1%;4 ? A 5o)est sta+t fo+ a "ol) I)ea &n a candy store in @icksburg, Mississippi, brisk sales o# the new #ountain beverage called CocaCola i!pressed the storeAs owner, 'oseph A 8iedenharn )e began bottling Coca-Cola to sell, using a co!!on glass bottle called a )utchinson 8iedenharn sent a case to Asa Griggs Candler, who owned the Co!pany Candler thanked hi! but took no action ;ne o# his nephews already had urged that Coca-Cola be bottled, but Candler #ocused on #ountain sales 1%;; T.e f2+st bottl2n4 a4+ee5ent :wo young attorneys #ro! Chattanooga, :ennessee believed they could build a business around bottling Coca-Cola &n a !eeting with Candler, 8en,a!in 1 :ho!as and 'oseph 8 Bhitehead obtained eCclusive rights to bottle Coca-Cola across !ost o# the Dnited (tates 3speci#ically eCcluding @icksburg4 -- #or the su! o# one dollar A third Chattanooga lawyer, 'ohn : 9upton, soon ,oined their venture 1;77-1;7; @ Ra02) 4+o/t. :he three pioneer bottlers divided the country into territories and sold bottling rights to local entrepreneurs :heir e##orts were boosted by !a,or progress in bottling technology, which i!proved e##iciency and product 0uality 8y 1.%., nearly $%% Coca-Cola bottling plants were operating, !ost o# the! #a!ily-owned businesses (o!e were open only during hot-weather !onths when de!and was high 1;19 @ "2+t. of t.e -onto*+ bottle 8ottlers worried that the straight-sided bottle #or Cocawas easily con#used with i!itators A group representing Co!pany and bottlers asked glass !anu#acturers to o##er ideas #or a distinctive bottle A design #ro! the 2oot Glass Co!pany o# :erre )aute, &ndiana won enthusiastic approval in 1.1< and was introduced in 1.16 :he contour bottle beca!e one o# the #ew packages ever granted trade!ark status by the D ( Patent ;##ice :oday, itAs one o# the !ost recogni5ed icons in the world - even in the darkE Cola the

<

Managerial Policy

1;27s @ "ottl2n4 o6e+taAes fo*nta2n sales As the 1.F%s dawned, !ore than 1,%%% Coca-Cola bottlers were operating in the D ( :heir ideas and 5eal #ueled steady growth (iC-bottle cartons were a huge hit a#ter their 1.F6 introduction A #ew years later, open-top !etal coolers beca!e the #orerunners o# auto!ated vending !achines 8y the end o# the 1.F%s, bottle sales o# Coca-Cola eCceeded #ountain sales 1;27s an) !7s @ Inte+nat2onal eB0ans2on 9ed by longti!e Co!pany leader 2obert B Boodru##, chie# eCecutive o##icer and chair!an o# the 8oard, the Co!pany began a !a,or push to establish bottling operations outside the D ( Plants were opened in 1rance, Guate!ala, )onduras, MeCico, 8elgiu!, &taly, Peru, (pain, Australia and (outh A#rica 8y the ti!e Borld Bar && began, Coca-Cola was being bottled in $$ countries 1;47s @ 'ost-/a+ 4+o/t. Guring the war, 6$ bottling plants were set up around the world to supply the troops :his #ollowed an urgent re0uest #or bottling e0uip!ent and !aterials #ro! General -isenhowerAs base in >orth A#rica Many o# these war-ti!e plants were later converted to civilian use, per!anently enlarging the bottling syste! and accelerating the growth o# the Co!panyAs worldwide business 1; 7s @ 'a-Aa42n4 2nno6at2ons 1or the #irst ti!e, consu!ers had choices o# Coca-Cola package and type -- the traditional 6 <-ounce contour bottle, or larger servings including 1%-, 1F- and F6-ounce versions Cans were also introduced, beco!ing generally available in 1.6% 1;97s @ #e/ b+an)s 2nt+o)*-e) 1ollowing 1anta? in the 1.<%s, (prite?, Minute Maid?, 1resca? and :a8? ,oined brand CocaCola in the 1.6%s Mr Pibb? and Mello Hello? were added in the 1./%s :he 1.8%s brought diet Coke? and Cherry Coke?, #ollowed by P;B-2AG-? and GA(A>&? in the 1..%s :oday hundreds o# other brands are o##ered to !eet consu!er pre#erences in local !arkets around the world 1;37s an) %7s @ Consol2)at2on to se+6e -*sto5e+s As technology led to a global econo!y, the retailers who sold Coca-Cola !erged and evolved into international !ega-chains (uch custo!ers re0uired a new approach &n response, !any s!all and !ediu!-si5e bottlers consolidated to better serve giant international custo!ers :he Co!pany encouraged and invested in a nu!ber o# bottler consolidations to assure that its largest bottling partners would have capacity to lead the syste! in working with global retailers 1;;7s @ #e/ an) 4+o/2n4 5a+Aets si5e

>

Managerial Policy

Political and econo!ic changes opened vast !arkets that were closed or underdeveloped #or decades A#ter the #all o# the 8erlin Ball, the Co!pany invested heavily to build plants in -astern -urope And as the century closed, !ore than I1 < billion was co!!itted to new bottling #acilities in A#rica 21st Cent*+, :he Coca-Cola bottling syste! grew up with roots deeply planted in local co!!unities :his heritage serves the Co!pany well today as people seek brands that honor local identity and the distinctiveness o# local !arkets As was true a century ago, strong locally based relationships between Coca-Cola bottlers, custo!ers and co!!unities are the #oundation on which the entire business grows

Managerial Policy

!- "RA#$S OF COCA COLA

Coca-Cola Jero? has been one o# the !ost success#ul product launch hes in Coca Cola"s history &n F%%/, Coca Cola"s sold nearly $<% !illion cases globally Put into perspective, thatAs roughly the sa!e si5e as Coca Cola"s total business in the Philippines, one o# our top 1< !arkets As o# (epte!ber F%%8, Coca-Cola Jero is available in !ore than 1%% countries

!.1- Ene+4, $+2nAs

1or those with a high-intensity approach to Coca Cola"s brands o# -nergy Grinks contain ingredients such as ginseng eCtract, guarana eCtract, ca##eine and 8 vita!ins

li#e,

!.2- >*2-esC>*2-e $+2nAs Be bring innovation to the goodness o# ,uice Coca Cola"s !ore than F% ,uice and ,uice drink brands, o##ering both adults and children nutritious, re#reshing and #lavor#ul beverages in

Managerial Policy

!.!- Soft $+2nAs

Coca Cola"s do5ens o# so#t drink brands provide #lavor and re#resh!ent in a variety choices 1ro! the original Coca-Cola to !ost recent introductions, so#t drinks #ro! Coca-Cola Co!pany are both icons and innovators in the beverage industry !.4- S0o+ts $+2nAs

o# :he

Carbohydrates, #luids, and electrolytes tea! together in Coca Cola"s (ports Grinks, providing rapid hydration and terri#ic taste #itness-seekers at any level

#or

!. - Tea an) Coffee

8ottled and canned teas and co##ees provide consu!ersA #avorite drinks in convenient take-anywhere packaging, satis#ying both traditional tea drinkers and todayAs growing co##ee culture

!.9 <ate+

(!ooth and essential, our Baters and 8everages o##er hydration in its purest

Bater #or!

Managerial Policy

!.3- Ot.e+ $+2nAs

(o !uch !ore than so#t drinks Coca Cola"s brands also include !ilk products, and !ore so you can choose a Coca Cola Co!pany product anyti!e, anywhere #or nutrition, re#resh!ent or other needs

soup,

3@

Managerial Policy

4- CO#SUMER CHOICE AT A &LA#CE Coca-Cola Mainly pre#erred by the Houngster K Lids :hu!s-Dp Houngster

9i!ca Co!!on Grink

1anta 8asically Pre#erred by 9adies and Lids

33

Managerial Policy

Maa5a Also 9adies and Lids

(prite >ot clearly de#ines

Linley (oda Mostly those who consu!e li0uor

37

Managerial Policy

- $IFFERE#T 'LAYERS I# THE SOFT $RI#(S MAR(ET 'E'SI Caleb 8randhu!, a >orth Caroline Phar!acist, structure Pepsi Cola &nF the 18.%"s as cure o# dyspepsia 3indigestion4 &n 1.%F, 8radhu! applied #or a trade !ark, issued ninety seven share o# stock and began selling Pepsi syrup in earnest &n his #irst year o# business he spend I1.%% on advertising a huge su! that he sold only 8%%% gallons o# syrup &n 1.%< 8radhu! built Pepsi"s bottling plant 8y 1.%/ he was selling 1%,%%% gallons a year, two years later, he hired a >ew Hork advertising agency A#ter passing through !any troubles #or so!e period now Pepsi is a !arket leader in international arence and is available in 18/ >ations throughout the world CA$"URY SCH<E''ES Cadbury (chweppes are ,oined #orce o# Cadbury #ound in 18F$ o# D L and (chweppes o# &reland #ounded in 1/86 Cadbury (chweppes is uni#ied bussing which !anages the relations his with over F$% #ranchised bottling operation on Ja!bia and Ji!babwe Cadbury (chweppes has #ottlery and partnership operations in 1$ countries around the world

32

Managerial Policy

9- OUR MISSIO#: ;ur !ission declares our purpose as a co!pany &t serves as the standard against which we weigh our actions and decisions &t is the #oundation o# our Mani#esto 314 :o re#resh the world in body, !ind and spirit 3F4 :o inspire !o!ents o# opti!is! through our brands and our actions 364 :o create value and !ake a di##erence everywhere we engage 3- OUR VISIO#: ;ur vision guides every aspect o# our business by describing what we need to acco!plish in order to continue achieving sustainable growth 'eo0leM 8eing a great place to work where people are inspired to be the best they can be 'o+tfol2oM 8ringing to the world a port#olio o# 0uality beverage brands that anticipate and satis#y peopleAs desires and needs 'a+tne+sM >urturing a winning network o# custo!ers and suppliers, together we create !utual, enduring value 'lanetM 8eing a responsible citi5en that !akes a di##erence by helping build and support sustainable co!!unities '+of2tM MaCi!i5ing long-ter! return to shareowners while being !ind#ul o# our overall responsibilities

3E

Managerial Policy

%- IM'ROVE$ MISSIO# STATEME#T: 314 At Coca Cola weAre co!!itted to achieving business and #inancial success while leaving a positive i!print on society N delivering what we call Per#or!ance with Purpose 3F4 ;ur !ission is to be the worldAs pre!ier consu!er Products Co!pany #ocused on convenient #oods and beverages Be seek to produce #inancial rewards to in8vestors as we provide opportunities #or growth and enrich!ent to our e!ployees, our business partners and the co!!unities in which we operate And in everything we do, we strive #or honesty, #airness and integrity ;- IM'ROVE$ VISIO# STATEME#T: 314 Coca cola Co responsibility is to continually i!prove all aspects o# the world in which we operate N environ!ent, social, econo!ic N creating a better to!orrow than today O 3F4 ;ur vision is put into action through progra!s and a #ocus on environ!ental stewardship, activities to bene#it society, and a co!!it!ent to build shareholder value by !aking Coca cola Co a truly sustainable co!pany

<., 2t 2s 250+o6e):

:here is &t is our vision to be the best and leading provider o# #ood and beverage products in Pakistan, to #acilitate the people o# Pakistan and we e!phasis on consu!er !ore rather than co!petitors we a!ong the top ten #ood and beverage co!panies in the world, by continually challenging present conventions and always staying a step ahead o# the co!petition

&t is our !ission to be the nu!ber one #ood and 8everage Co!pany in Pakistan by providing our custo!ers with the highest product 0uality in ter!s o# taste, eCperience, and satis#action Be will ensure this through an unwavering dedication to the continuous develop!ent o# our products and processes ensuring that we re!ain best in class Be will strive to hire the !ost co!petent and dedicated e!ployees whose work ethic will set the standard in the industry Be will be pay!asters, as we strongly believe that hu!an resource is the only asset that truly appreciates over ti!e Be will also be a responsible social corporate citi5en, and strive to enhance the 0uality o# li#e in the !arkets we serve

3<

Managerial Policy

Co50a+e V2s2on D 52ss2on /2t. lea)2n4 -o50et2to+s

Pakola is #irstly introducing in Pakistan in 1.<% by )a,i Ali Muha!!ad &t is the #irst >ationally branded so#t drink in Pakistan, it is produced by !ehran bottlers 3Pvt4 9td

Mehran is the #irst bottling plant in (outh Asia Bhich has been certi#ied to integrated !anage!ent syste! based on 3&(; .%%1MF%%%4, 3&(; 1$%%1M1..64 (tandard and 32@A )ACCP4 standard Pakola 0uality and #ood sa#ety syste! #ollows the 1GA GMP re0uire!ents and codeC Pakola products are !anu#actured under strict CGMP and )ygiene controls

M2ss2on state5ent:

Be are #ocused on driving growth in our business in selected pro#itable and e!erging categories :o develop, i!ple!ent and continuously i!prove the integrated !anage!ent syste!s in a culture o# continuous i!prove!ent whichM 314 Girects the continual up-gradation #or e##icient and environ!ent #riendly !anu#acturing technology 3F4 Monitor and i!prove the e##iciency and e##ectiveness o# all business processes 364 Pro!otes pro#essional and #leCible work environ!ent, tea!work and innovation through e!ployee participation and process ownership 3$4 Grives custo!er orientation at all levels within the organi5ation 3<4 Monitor and econo!i5e the Cost o# Puality

V2s2on state5ent:

:o be (-C;>G :; >;>- in eCceeding custo!er eCpectations #or :aste and 1lavor, Product (a#ety, Puality and Price Co!petitiveness
3>

Managerial Policy

&n co!parison to coca cola the !ission state!ent o# Pakola is si!ple one :he players in the beverage industry have one o# the !oat co!petitive rivalries in any industry &n Pakistan the !arket is do!inated by the two international giants Pepsi and Coke, with !arket shares respectively o# //7, and 167, leaving little roo! #or others to grow Het even with approCi!ately <7 o# the total !arket share, Pakola can still !anage to be pro#itable in a cut-throat &ndustry, and hive plan to position it strategically in order to do so :he beverage &ndustry is a reasonably attractive industry to be in, and with &ts << years o# established presence, Pakola is well positioned to leverage that history so as to attain a co!petitive edge &t is our vision to be the best and leading provider o# #ood and beverage products in Pakistan, and a!ong the top ten #ood and beverage co!panies in the world, by continually challenging present conventions and always staying a step ahead o# the co!petition

Co55ents on 62s2on an) 52ss2on E2n te+5s of .o/ t.e, s*00o+t t.e st+ate42esF

:he vision state!ent o# our co!pany supports the eCisting strategies that is 3generic strategy4 that Coca Cola needs to pursue is that o# di##erentiation &n their current vision and !ission state!ents, the co!pany says it ai!s to be a low cost leader, yet through our thorough analysis o# the strategic direction the co!pany needs to adopt a generic strategy o# di##erentiation :his will allow Coca cola to do three thingsQ 1 Charge a pre!iu! F &ncrease unit sales 6 Gain buyer loyalty )owever, at the eCpense o# sounding si!plistic, it is necessary that the co!pany co!!unicate its di##erentiation to its custo!ers, otherwise these three advantages will not avail the!selves &nitially Coca cola will need to adopt a #ocused di##erentiation approach, which !eans that they should selectively choose which !arkets will pro#it the! the !ost and then target only those !arkets until such provisions are in place #ro! where the co!pany is able to eCpand its target base A#ter which they should opt #or a broad di##erentiation generic strategy Bith the !arket ,ust turning the bend to =saturation", it is entering a phase o# intense co!petition with all !a,or players diversi#ying their product lines, ranges and even businesses into a versatile range o# products to put in place !ore in#antry on the battle ground to use to their advantage in this war o# brands :here#ore, we believe that the current strategic ob,ective o# Coca cola should be to consolidate its eCisting brand, Coca cola through eCtensive strategic !arket research and
3?

Managerial Policy

consu!er insights to be able to ho!e in on the correct target !arket like a precision targeting !issile rather than as an Anti-aircra#t gun

36

Managerial Policy

17- COCA COLA - RATIO A#ALYSIS 2779 In-o5e State5ent 2evenue Cost o# Goods (old &nterest -Cpense :aC -Cpense &nco!e #ro! Cont ;perations >et &nco!e "alan-e S.eet Cash (hort :er! &nvest!ents Accounts 2eceivable &nventory Current Assets 9ong :er! &nvest!ents >et 1iCed Assets ;ther Assets :otal Assets Current 9iabilities :otal 9iabilities (tockholdersA -0uity Cas. Flo/ Cash 1low #ro! ;perations Gividends Paid &nterest Paid 'e+ S.a+e Market Price at Hear -nd -arnings Per (hare - 8asic G 'e+-ent 3in !illions4 F$,%88 1%% %7 8,16$ 66 .7 FF% % .7 1,$.8 6 F7 <,%8% F1 17 <,%8% F1 17 277 G 'e+-ent 3in !illions4 F6,1%$ 1%% %7 8,1.< 6< <7 F$% 1 %7 1,818 / .7 $,8/F F1 17 $,8/F F1 17 2774 G 3in !illions4 F1,.6F

$,8$/

F,$$% 1<% F,/%$ 1,6$1 8,$$1 6,/86 6,.%6 /,668 F.,.66 8,8.% 16,%$6 16,.F%

8 17 % <7 . %7 < <7 F8 F7 FF 67 F6 %7 F< 67 1%% %7 F. /7 $6 <7 <6 <7

$,/%1 66 F,F81 1,$F$ 1%,F<% 6,.FF <,/86 6,$6. F.,$F/ .,866 16,%/F 16,6<<

16 %7 % F7 / 87 $ 87 6$ 87 F6 <7 1. /7 FF %7 1%% %7 66 $7 $$ $7 << 67

F,1/1 1,$F%

61,6F/

<,.</ F,.1F FF%

6,$F6 F,6/. F$%

<,.68

$8 F< F 16

$% 61 F %$

3;

Managerial Policy

17.1 RATIO A#ALYSIS &+o/t. Rat2os (ales Growth &nco!e Growth Asset Growth A-t262t, Rat2os 2eceivable :urnover &nventory :urnover 1iCed Asset :urnover '+of2t Rat2os Pro#it Margin 2eturn on Assets 2eturn on -0uity Gividend Payout 2atio Price -arnings 2atio L2H*2)2t, Rat2os Current 2atio Puick 2atio Sol6en-, Rat2os Gebt to :otal Assets :i!es &nterest -arned 3Accrual4 :i!es &nterest -arned 3Cash4

$ 67 $ 67 1 87 ./ <6 6< F1 17 1/ 17 6% <7 </ 67 FF 6 % .< % 6% % $$ 6% .% F8 %8

< F7 % <7 -6 17 1% $ <8 $% F1 17 16 %7 <. 67 << %7 1. 8 1 %$ % /F % $$ F8 88 F/ /6

7@

Managerial Policy

11- FI#A#CIAL HI&HLI&HTS F%%6 Yea+ En)e) $e-e5be+ !1I >et operating revenues ;perating inco!e >et inco!e >et inco!e per share 3basic and diluted4 >et cash provided by operating activities Gividends paid (hare repurchase activity Un2t -ase 6ol*5e E2n b2ll2onsF &nternational operations >orth A!erica operations Borldwide 1< 6 <8 F1 $ 1$ 8 <8 F% 6 67 %7 $7 3I4 F$,%88 6,6%8 <,%8% F 161 <,.</ F,.11 F,$/$ F%%< 3I4 F6,1%$ 6,%8< $,8/F F %$F 6,$F6 F,6/8 F,%1. Percent Change $7 $7 $7 67 3/74 .7 F67

12- U#IT CASE VOLUME

73

Managerial Policy

MAPM (howing Bork#orce R/1,%%% in F%%6S

77

Managerial Policy

1!- CURRE#T OR&A#I8ATIO#AL CHART

C$O

EFP9 Pre)i$ent Bottling Anve)t9 SuGGly ="ain

=F. an$ EFP

EFP9 Pre)i$ent M+, Strategy

Pre)i$ent H =..

SFP H 'eneral =oun)el

SFP H 5irector (uman *e)ource)

SFP H 5irector Public A::air)9 =ommuni4 4cation

Pre)i$ent o: Eura)ia 'rouG

Pre)i$ent EuroGean /nion Mar#et

Pre)i$ent o: A:rican 'rouG

Pre)i$ent Catin America 'rouG

Pre)i$ent o: Paci:ic 'rouG

14- VALUE CHAI# A#ALYSIS FOR COCA COLA 277 E2n t.o*san)sF 1,$F$,%%%

2779 E2n t.o*san)sF (DPP9&-2 C;(:( 2aw Materials 1uel -nergy :ransportation :ruck Grivers :ruck Maintenance Co!ponent Parts &nspection (toring Barehouse P2;GDC:&;>( C;(:( 1,6$1,%%%

(u##icient date is not provided, but since &nventory is increased in F%%6, hence, we can in#er that suppliers are e##eciently providing 2aw Materials At the sa!e ti!e, increase will result in so!e incline in storeT ware house charges

72

Managerial Policy

&nventory (yste! 2eceiving Plant 9ayout Maintenance Plant 9ocation Co!puter 2KG Cost Accounting G&(:2&8D:&;> C;(:(

(ince cost o# revenue in F%%6 is 6$7 o# total revenue co!pared to 667 cost o# revenue in F%%<, we can deduce that Coca Cola has i!proved its operating per#or!ance nil nil

7E

Managerial Policy

9oading (hipping 8udgeting Personnel &nternet :rucking 2ailroads 1uel Maintenance (A9-( K MA2L-:&>G C;(:( (alespersons Bebsite &nternet Publicity Pro!otion Advertising :ransportation 1ood and 9odging CD(:;M-2 (-2@&CC;(:( Postage Phone &nternet Barranty MA>AG-M->: C;(:( )u!an 2esources Ad!inistration -!ployee 8ene#its 9abor 2elations Managers -!ployees 1inance and 9egal Anal,s2s: &nco!e state!ents shows ,ust one head and that is (elling, Gen and Ad!in -Cpenses, which were 6.7 o# total revenue in F%%< and $%7 in F%%6 )ence, there is increase in these eCpenses Be see >et &nco!e proportion re!ain sa!e in year F%%6 as it was in year F%%< i e F17 o# total revenue :here#ore, despite o# the #act that so!e eCpenses were increased, Coca Cola still en,oy sa!e percentage o# >et &nco!e Bhich would be because o#, e##iciency o# production, !anage!ent or distribution depart!ents

7<

Managerial Policy

Be do not see 2KG head o# eCpenses, which would show that Coca Cola does not assign su##icient a!ount to its 2KG depart!ent which is key to eCcel in the !arket &# we see the proportion o# &nco!e generated by di##erent regions, we can easily in#er that Coca Cola, because o# innovative advertise!ents or because o# intelligent decision !aking, still en,oys a co!petitive !arket position Be can still suggest the! to !ake an e##icient 2KG headT depart!ent which will surely !ake the! co!pete in !arket, e##ectively and pro#itably

7>

Managerial Policy

1 - E-COMMERCE:

&oo) 0o2nts:

8rand Pro!otion Attractive products selection 9ook and #eel 8 Provision o# !ulti!edia product, catalogue pages Personal attention Co!!unity relationships

<eaA 0o2nts: Per#or!ance and serviceM that is not easy navigation, shopping and purchasing, and pro!pt shipping and delivery Giscount pricing is not being o##ered

19- VALUE OF THE FIRM F2nan-2al an) Val*e Re62e/ Ge#ensiveM

7?

Managerial Policy

14 (i5e o# #ir! >et worth o# I16 .Fbillion F4 1inancial condition with a weighted current ratio o# % .$ Coke #alls below the re0uired F, there#ore they #ail this test 64 -arnings stability there has been positive net inco!e #or the past ten years and they 8pass this test $4 -arnings growth -arnings are greater than #ive years ago Pass ;verall we would not suggest Coke being placed in the de#ensive investor"s port#olio at this ti!e ;pinionM (eeing that currently Coke is trading at a !uch higher price than our internal valuation we would be skeptical to purchase this security at this ti!e )owever, Coke is an eCcellent #ir! with great !anage!ent, products, dividend history, and earnings :his stock we would place on our review list and periodically watch the share price to see i# it dips and #alls !ore in line with what we would be co!#ortable paying St+en4t.s Borld"s leading brand Coca-Cola has strong brand recognition across the globe :he co!pany has a leading brand value and a strong brand port#olio Coca-Cola is one o# the leading brands in their top 1%% global brands ranking in F%%6 8:he value o# the Coca-Cola was I6/,%%% !illion in F%%6 Coca-Cola ranks well ahead o# its close co!petitor Pepsi which has a ranking o# FF having a brand value o# I1F,6.% !illion 1urther!oreQ Coca-Cola owns a large port#olio o# product brands :he co!pan8y owns #our o# the top #ive so#t drink brands in the worldM Coca-Cola, Giet Coke, (prite and 1anta (trong brands allow the co!pany to introduce brand eCtensions such as @anilla Coke, Cherry Coke and Coke with 9e!on ;ver the years, the co!pany has !ade large invest!ents in brand pro!otions Conse0uently, Coca-cola is one o# the best recogni5ed global brands :he co!pany"s strong brand value #acilitates custo!er recall and allows Coca-Cola to penetrate new !Farkets and consolidate eCisting ones Coca-Cola Co!pany, :he large scale o# operations with revenues in eCcess o# IF$ billion Coca-Cola has a large scale o# operation Coca-Cola is the largest !anu#acturer, distributor and !arketer o# nonalcoholic beverage concentrates and syrups in the world Coco-Cola is selling trade!arked beverage products since the year 1886 in the D( :he co!pany currently sells its products in !ore than F%% countries ;# the approCi!ately <F billion beverage servings o# all types consu!ed worldwide every day, be8verages bearing trade!arks owned by or licensed to CocaCola account #or !ore than 1 $ billion :he co!pany"s operations are supported by a strong in#rastructure across the world Coca-Cola owns and operates 6F principal beverage

76

Managerial Policy

concentrates andTor syrup !anu#acturing plants located throughout the world &n addition, it owns or has interest in 6/ operations with .< principal beverage bottling and canning plants located outside the D( :he co!pany also owns bottled water production and still beverage #acilities as well as a #acility that !anu#actures ,uice concentrates :he co!pany"s large scale o# operation allows it to #eed upco!ing !arkets with relative ease and enhances its revenue generation capacity 2obust revenue growth in three seg!ents Coca-cola"s revenues recorded a double digit growth, in three operating seg!ents :hese three seg!ents are 9atin A!erica, =-ast, (outh Asia, and Paci#ic 2i!" and 8ottling invest!ents 2evenues #ro! 9atin A!erica grew by F% $7 during #iscal F%%6, over F%%< Guring the sa!e period, revenues #ro! =-ast, (outh Asia, and Paci#ic 2i!" grew by 1% 67 while revenues #ro! the bottling invest!ents seg!ent by 1. .7 :ogether, the three seg!ents o# 9atin A!erica, =-ast, (outh Asia, and Paci#ic 2i!" and bottling invest!ents, accounted #or 6$ 87 o# total revenues during #iscal F%%6 2obust revenues growth rates in these seg!ents contributed to top-line growth #or CocaCola during F%%6 <eaAnesses >egative publicity, Co!pany received negative publicity in &ndia during (epte!ber F%%6 :he Co!pany was accused by the Center #or (cience and -nviron!ent 3C(-4 o# selling products containing pesticide residues Coca-Cola products sold in and around the &ndian national capital region contained a ha5ardous pesticide residue :hese pesticides included che!icals which could cause cancers, da!age the nervous and reproductive syste!s and reduce bone !ineral density (uch negative publicity could adversely i!pact the co!pany"s brand i!age and the de!and #or Coca-Cola products :his could also have an adverse i!pact on the co!pany"s growth prospects in the international !arkets (luggish per#or!ance in >orth A!erica Coca-Cola"s per#or!ance in >orth A!erica was #ar #ro! robust >orth A!erica is Coca-Cola"s core !arket generating about 6%7 o# total revenues during #iscal F%%6 :here#ore, a strong per#or!ance in >orth A!erica is i!portant #or the co!pany S*55a+, 2n 0o2nts: St+en4t.s:

9eading brand value and a strong brand port#olio Coca-Cola, Giet Coke, (prite and 1anta 9arge invest!ents in brand pro!otions sells its products in !ore than F%% countries Co!pany also owns bottled water production and still beverage #acilities as well as a #acility that !anu#actures ,uice concentrates :hese three seg!ents are 9atin A!erica, =-ast, (outh Asia, and Paci#ic 2i!" and 8ottling invest!ents

7;

Managerial Policy

2eturn on total assets increases over the period consistently F%%<, %6, %/ 1< $/7, 16 <<7, and 16 .<7 respectively

<eaAnesses:

>egative publicity in &ndia &nventory turnover decreased by 16 F.7 2eturn on e0uity decreased by $% <%7 (luggish per#or!ance in >orth A!erica Coca-Cola"s per#or!ance in >orth A!erica was #ar #ro! robust Collection #or! debtors decreased by 1< 687

2@

Managerial Policy

13- (EY I#TER#AL FACTORS /e24.t S-o+e St+en4t.s Average custo!er purchases increased by 18 <$7 -!ployee !oral :echnical support and research e##iciency >ewspaper advertise!ent eCpenditures increased 2evenues #ro! other seg!ents Gebt to total asset ratio decline 9ocations in the world

<e24.t

Rat2n4

% 11 % %< % %8 % %. % 1$ % %< % 1<

F 6 1 $ $ F $

% FF % 1< % %8 % 66 % <6 % 1% % F%

<eaAnesses &nventory turnover decreased by 16 F.7 2eturn on e0uity down decreased Bebsite (upplier ti!e delivery Total % 1% 8% 11 % %$ % %8 1.77 6 1 F 1 % 6% % 11 % %8 % %8 2.24

RanAe) 1 to 4. Lo/ to H24. +es0e-t26el,. C*++ent E6al*at2on: 2.24 Less t.an a6e+a4e of 2. 7 #ee) eff2-2en-, 2n t.e Mana4e5entI Ma+Aet2n4I f2nan-eI MISI R D $I an) ot.e+ o0e+at2ons..

23

Managerial Policy

1%- (EY EXTER#AL FACTOR

S. #o. Fa-to+ <e24.t Rate S-o+e

O00o+t*n2t2es
1 F 6 $ < 6 / 8 -ntering into snacks business 3Pepsi earns 6%7 #ro! snacks4 -Cpansion by taking over Cadbury division or product line -Cpansion by introducing new ready-to-drink products 3tea, co##ee, etc 4 -ntering into or introducing new sports events 3e g 1or!ula &4 to introduce energy drinks (trong #inancial and assets support available worldwide to take #inancing #or eCpansion &ntroduce so#t drink with #ocus o# Ohealthy so#t drinkO - eli!inate obesity concept Giversi#ication o# bottling business to other industries like phar!aceuticals 9ink with co!puter internetTnetworkTcell ga!ing business to #ocus on youth worldwide - to take advantage o# technology % 1%% % %<% % %<% % %F< % %1< % %/< % %<% % %F< % %F< % %1< 0.430 % 1%% % %/< % %/< % 1%% % %/< % %/< % %1< % %F< % %1< % %1< 0.570 1.777 6 <% $ %% $ %% 6 <% 1 <% 6 <% F <% F <% 6 %% 6 %% $ %% 6 <% $ %% $ %% 6 <% 6 <% F %% 6 <% 6 <% F %% % 6< % F% % F% % %. % %F % F6 % 16 % %6 % %8 % %< 1.43 % $% % F6 % 6%

. 1% Opportunities - Total 11 )urting products containing sugar K sugar-substitute based drinks 3trend towards !ore healthy eating K drinking4 1F &ncrease in raw !aterial costs 16 Govern!ent policies !ay hurdle in eCpansion 1$ Govern!ent policies - #or disclosure o# health warning 1< 8an in public schools due to obesity issues 16 9ack in snacks business 1/ 9ack o# share in ho!eland !arket 3re#er -Chibit 84 - roo! #or other brands 18 Availability o# puri#ied water 3being !ain co!ponent4 in di##erent parts o# the world 1. Co!petitor !ay access unreached parts o# the world prior to Coca Cola F% (ales!an not e0uipped with sales ordering devices Threats - Total &+an) Total

% F6 % %6 % %. % %< % %6 1.43 2.%9

27

Managerial Policy

1;- COM'ETITORS

Cadbury (chweppes plc >estle ( A PepsiCo, &nc Dnilever Procter K Ga!ble Cott Corporation Lra#t 1oods, &nc >ational Grape Cooperative >ational 8everage Corp Puil!es &ndustrial ( A Puinenco (A Heo )iap (eng 9i!ited Bi!!-8ill-Gann 1oods ;'(C Co-2o 1ood AT( 2ynkeby 1oods AT( (padel (A Gelta )olding ( A (pendrups 8ryggeri A8 Pago )er!ann P#anner Getraenke G!b) ' Garcia Carrion @itasoy &nternational )olding 9td

22

Managerial Policy

27- S<OT A#ALYSIS (B;: Analysis is a strategic planning tool used to evaluate the (trengths, Beaknesses, ;pportunities, and :hreats inside a co!pany, pro,ect, or a business venture &t involves identi#ying the internal and eCternal #actors that are #avorableTun#avorable #or business to succeed S<OT A#ALYSIS STRE#&THS 1 F 6 $ < 6 / 8rand e0uityTi!age K recognition Product distribution and worldwide network (olid #inancial per#or!ance ;ne o# the worldAs !ost recogni5ed brand Product diversi#ication 3water, ,uices, so#t drinks, sport drinks, etc4 Co-operate identity &nnovation FOR COCA COLA COM'A#Y

<EA(#ESSES 1 F 6 $ Credit rating Custo!er concentration, particularly in the D( 3Bal-Mart accounts #or !ore than 1%7 o# Coca ColaAs business in the D(4 A lot o# loyal Pepsi custo!ers are not enough loyal Coca Cola custo!ers Goes not en,oy the nu!ber one position in &ndia, Pakistan

O''URTU#ITIES 1 F 6 $ < 6 Possible growing de!and -Cpansion N 2eaching all seg!ents Globali5ation Catering to )ealth Consciousness o# People 8ottled water growth Ac0uisitions o# s!aller players

THREATS 1 F 6 $ < )ealth Grinks N 1ruit 'uice Co!panies Ley co!petitors 3Pepsi, etc4 Co!!odity prices growth &!age perception in certain parts o# the world (!aller, !ore ni!ble operatorsTplayers

2E

Managerial Policy

S*44est2on To Sta, a.ea) Of Co50et2t2on :he three !ain ways are through innovation, relations or reputation
1irst o# all innovation can be used :his !ay certainly give coca cola co!petitive

advantage because it introduces a new product, which !any people will want to try People will like to purchase the co!!odity even though price is high because no substitutes are available &t !ay also give coca cola brand loyalty which !eans custo!ers will stay loyal to the! no !atter what happens.ES1IS2IS4IS IS3IT1IT2IT!F

Another #actor is !arketing :his is a very i!portant #actor #or coca cola &n order #or the co!pany to !aintain its strong !arket position, Coca Cola needs to continuously strengthen its brand to !aintain brand loyalty and positive responses and di##erentiate itsel# #ro! its co!petitors.E<2I<!I<4IO1IO2IO!IO4F

&# coca cola used strong !arketing with environ!ent #riendly attitude it !ay raise barriers to entry, thus decreasing the threat o# new entrants to the industry ET1IT4IT IS2IS4IS IS9F Coca ColaAs brand represents 0uality, taste and eCcite!ent to the !arket, 0ualities that re!ain un!atched by the co!panyAs co!petitors, thus severely reducing any threat o# being substituted ES1IS4IS2IO1IO2IO!F

2eason o# not being popular in &ndia is the !is-utili5ation o# rear water resources :his put negative e##ect on the brand i!age, because o# cola plant water level in the area decreases which !akes the resident li#e !iserable &# Cola Co!pany wants a nu!ber one position in &ndia they have to #ollow #ollowing criteria -nviron!ental due diligence be#ore ac0uiring land or starting pro,ects -nviron!ental i!pact assess!ent be#ore co!!encing operations Ground water and environ!ental surveys be#ore selecting sites Co!pliance with all regulatory environ!ental re0uire!ents 8an on purchasing C1C-containing re#rigeration e0uip!ent Baste water treat!ent #acilities with trained personnel at all co!pany-owned bottling operations -nergy conservation progra!s water

:hey should installed hi-tech water recycling syste! so that they can save <%7

savings o# its operations E<!I <4I T4F

2<

Managerial Policy Many o# coca cola"s plastic bottles are recycled and as a result less resources are lost

and costs decrease :hrough diversi#ication K innovation in water K ,uices business supported with aggressive advertising strategy Coca Cola Co!pany can attracts a new !arket seg!ent :his will !ean they will have a higher revenue increasing long ter! pro#itability and i!prove credit rating.E<1I<4IT1IT!IT4F

2>

Managerial Policy

21- S'ACE MATRIX STRATE&IC MA#A&EME#T METHO$ :he S'ACE 5at+2B is a !anage!ent tool used to analy5e a co!pany &t is used to deter!ine what type o# a strategy a co!pany should undertake :he St+ate42- 'os2t2on D ACt2on E6al*at2on 5at+2B or short a (PAC- !atriC is a strategic !anage!ent tool that #ocuses on strategy #or!ulation especially as related to the co!petitive position o# an organi5ation :he (PAC- !atriC can be used as a basis #or other analyses, such as the S<OT anal,s2s, "C& 5at+2B !odel, industry analysis, or assessing strategic alternatives 3IE 5at+2B4 :he (PAC- !atriC calculates the i!portance o# each o# these di!ensions and places the! on a Cartesian graph with U and H coordinates :he #ollowing are a #ew !odel technical assu!ptionsM - 8y de#inition, the CA and &( values in the (PAC- !atriC are plotted on the U aCis -CA values can range #ro! -1 to -6 - &( values can take V1 to V6 -:he 1( and -( di!ensions o# the !odel are plotted on the H aCis - -( values can be between -1 and -6 - 1( values range #ro! V1 to V6

2?

Managerial Policy

Inte+nal St+en4t. 'os2t2on Co50et2t26e A)6anta4e E<o+st -9I"est -1F Product Puality AB2s B Market (hare 8rand K &!age Product 9i#e Cycle -1 -1 -1 -F

EBte+nal St+en4t. 'os2t2on In)*st+, St+en4t. E<o+st J1I"est J9F 8arriers to entry Growth Potential Access to 1inancing Consolidation < < $ <

Average (core W-1 F< Total X-AB2s s-o+e: !. F2nan-2al St+en4t.

Average (core W$ /<

En62+on5ent St+en4t.

E<o+st J9I"est J1F 2;A AB2s Y 9everage 9i0uidity Cash 1low < $< < $< &n#lation :echnology Ge!and -lasticity :aCation

E<o+st -9I"est -1F -F < -1 -F < -$

Average (core W$ /<

Average (core W-F <

Total Y-AB2s s-o+e: 2.2

26

Managerial Policy

Conservative

I>.@ @ Aggressi%e I7.7 <

4>.@@

43.@@

I3.@ @

I2.<

I>.@ @

&efensi%e

4>.@@

Competiti%e

2;

Managerial Policy

22- "C& MATRIX

S+K 1 F 6 $ < 6 / 8 Total

$262s2on A#rica -ast (outh A#rica K Paci#ic 2i! -uropean Dnion 9atin A!erica >orth A!erica >orth Asia, -urasia K Middle -ast 8ottling &nvest!ent Corporate --

Re6en*es I1,1$% I8/F I$,66$ IF,616 I/,%F. I$,1F6 I<,1.8 I.6 G2 I4!

'e+-ent Re6en*es $ $87 6 $67 1/ 167 1% F.7 F/ 6$7 16 F17 F% $$7 % 6/7 177.77L

'+of2ts IFF/ /< I1/$ $F I8/1 1/ I<FF F/ I1,<6/ / F I8F6 6< I8/$ $F I18 88 G I73;.; %

'e+-ent '+of2ts $ %%7 < %%7 18 667 11 F%7 F< 8<7 1< %<7 1% $87 . /67 177.77 L

'e+-ent Ma+Aet Val*e < 1% $< 6< 6% $% F% 1< -

'e+-ent &+o/t. Rate -8 -< V/ V6 V. V8 -/ -6 -

E@

Managerial Policy

8CG MA:2&U

E3

Managerial Policy

2!- IE MATRIX

St+on4 M !.7 to !.;; H24. M !.7 to !.;; Me)2*5 M 2.7 to 2.;; Lo/ M 1.7 to 1.;; &@ @&& &

A6e+a4e M 2.7 to 2.;; && @ COCA COLA @&&& @& &U <eaA 1.7 to 1.;; &&&

E7

Managerial Policy

24- =S'M OF COCA COLA Inete+ EBte+nal Fa-to+ St+en4t. 1 8rand e0uityTi!age K recognition F Product distribution and worldwide network 6 (olid #inancial per#or!ance $ ;ne o# the worldAs !ost recogni5ed brand < Product diversi#ication 3water, ,uices, so#t drinks, sport drinks, etc4 6 Co-operate identity <eaAness 1 Credit rating F Custo!er concentration, particularly in the D( 3Bal-Mart accounts #or !ore than 1%7 o# Coca ColaAs business in the D(4 6 A lot o# loyal Pepsi custo!ers are not enough loyal Coca Cola custo!ers $ Goes not en,oy the nu!ber one position in &ndia, Pakistan <e24.t % %8 % 1% % 1% % 1F % %8 % %8 % 1% % 1% % %8 % %8 % %8 1.77 F %% Int+o)*-e #e/ '+o)*-t AS TAS 6 %% % F$ 6 %% 6 %% $ %% % 6% % 6% % $8 % %% % F$ % 1% % 1% % %% % %% % 16 O*tso*+-2n4 AS TAS $ %% % 6F 6 %% $ %% $ %% F %% % 6% % $% % $8 % 16 % %% % F% % F% % %% % %% % %%

6 %% 1 %% 1 %%

F %% F %%

O00o+t*n2t2es 1 Possible growing de!and % 1F F %% % F$ F -Cpansion N 2eaching all seg!ents % %6 6 %% % 18 6 %% 6 Globali5ation % 11 F %% % FF 1 %% $ Catering to )ealth Consciousness o# People % 1F % %% F %% < 8ottled water growth % 16 1 %% % 16 1 %% 6 Ac0uisitions o# s!aller players % %6 1 %% % %6 1 %% T.+eats 1 )ealth Grinks N 1ruit 'uice Co!panies % 1F F Ley co!petitors 3Pepsi, etc4 % %6 6 Co!!odity prices growth % 1F $ &!age perception in certain parts o# the world % %< < (!aller, !ore ni!ble operatorsTplayers % %< Total 1.77 2.3 1ro! our (trategic Alternatives evaluation, we see that it is !ore attractive to outsource our distribution networks rather than launch a diet line o# products :his is in line with their current

% %% % 18 % 11 % F$ % 16 % %6

2.3%

E2

Managerial Policy

strategic direction, and will allow Pakola to #orti#y their !arket reach be#ore introducing new products that will be harder to push through the distribution channels

EE

Managerial Policy
2006 F 16F <,%8%,%%% %% 2007 F </ <,.81,%%% %%

-P( >-: &>C;MCo!pany is per#or!ing well Co!pany is !ore stable in getting loans #ro! #inancial institutions because it will help in taC saving and i# it will go #or raising stocks, it will costs !ore 'RO>ECTE$ I#COME STATEME#T

2717 G In-o5e State5ent 2evenue Cost o# Goods (old &nterest -Cpense :aC -Cpense &nco!e #ro! Cont ;perations >et &nco!e PROJECTED !"!#CE $%EET 2717 "alan-e S.eet Cash (hort :er! &nvest!ents Accounts 2eceivable &nventory Current Assets 9ong :er! &nvest!ents >et 1iCed Assets ;ther Assets :otal Assets Current 9iabilities :otal 9iabilities (tockholdersA -0uity Cas. Flo/ Cash 1low #ro! ;perations Gividends Paid &nterest Paid 'e+ S.a+e Market Price at Hear -nd -arnings Per (hare - 8asic 6,.8$ 6F$ F,/%$ 1,6$1 8,$$1 6,/86 6,.%6 /,8$6 61,6/$ 8,.$F 16,1/8 1/,F<6 1F /7 1 %7 8 67 < F7 F6 .7 F1 67 FF %7 F< %7 1%% %7 F8 <7 $F %7 << %7 3in !illions4 $6,</6 18,6.6 $F1 6,%F/ .,8F/ .,8F/ 'e+-ent

1%% %7 $% 17 % .7 6 <7 F1 17 F1 17

277; G 'e+-ent 3in !illions4 68,81% 1%% %7 16,1<6 66 .7 681 1 %7 F,86$ / 67 8,18. F1 17 8,18. F1 17

277; 6,6%6 66 F,F81 1,$F$ 1%,F<% 6,.FF <,/86 6,6<F 6%,668 8,F/F 1F,.68 16,8$6 1% 87 % F7 / $7 $ 67 66 <7 FF 67 18 .7 F1 /7 1%% %7 F/ %7 $F 67 << %7

11,6$$ $,$8. $F1

.,/%6 6,.8F 681

.F %% $ F%

// %% 6 <1

E<

Managerial Policy

E>

Managerial Policy

2 - 'RO>ECTE$ RATIO A#ALYSIS

&+o/t. Rat2os (ales Growth &nco!e Growth Asset Growth A-t262t, Rat2os 2eceivable :urnover &nventory :urnover 1iCed Asset :urnover '+of2t Rat2os Pro#it Margin 2eturn on Assets 2eturn on -0uity Gividend Payout 2atio Price -arnings 2atio L2H*2)2t, Rat2os Current 2atio Puick 2atio Sol6en-, Rat2os Gebt to :otal Assets :i!es &nterest -arned 3Accrual4 :i!es &nterest -arned 3Cash4 F% %7 F% %7 F $7 18 / 1F F 6/ F1 17 61 /7 </ 67 $< /7 F1 . % .$ % /8 % $F 61 <6 F8 66 XG&@T%E XG&@T%E XG&@T%E 6$ % 18 < 6/ F1 17 <6 <7 ./ F7 $8 67 F1 . 1 F$ % 68 % $F F. .6 F6 $/

E?

Managerial Policy

(29- CO#CLUSIO#: :he Coca Cola Co!pany has a very rich history and spread over the world, the study in this report specially the particular (PAC- !atriC tells us that Coca Cola Co!pany should pursue an aggressive strategy Coca Cola Co!pany has a strong co!petitive position in the !arket with rapid growth &t needs to use its internal strengths to develop a !arket penetration and !arket develop!ent strategy :his includes #ocus on Bater and 'uices products, and catering to health consciousness o# people through introduction o# di##erent coke #lavor and !aintaining basic coke #lavor 1urther co!pany should integrate with other co!panies, ac0uisition o# potential co!petitor businesses, innovation in branding and aggressive !arketing strategy can bring long ter! pro#itability

E6