Group 4 – Ibarreta, Neca; Trinidad, Joana Marie; Twaño, Ryan Dominic

1 – 18 Value Chain and classification of costs, pharmaceutical company.

A. Marketing E. Marketing
B. Design of products and processes F. Production
C. Customer service G. Marketing
D. Research and Development H. Distribution
1 – 20 Key success factors
A. Innovation D. Time, Cost, and Efficiency
B. Quality, Efficiency and Cost E. Efficiency and Cost
C. Time
1 – 22 Planning and Control Decisions
A. Planning Decision D. Planning Decision
B. Control Decision E. Planning Decision
C. Control Decision
1 – 34 Budgeting, Ethics, Pharmaceutical Company
 
1. Referring to the “Standards of Ethical Behavior for Practitioners of Management
Accounting and Financial Management”, it was stated that; Honesty, Fairness,
Objectivity and Responsibility are the overarching ethical principles of IMA
(Institute of Management Accountants). In addition, applying these ethical
principles, the members have the responsibility to 1) perform professional duties
in accordance with relevant laws, regulations, and technical standards; 2) refrain
from using confidential information for unethical advantage; 3) communicate
information fairly and objectively and; 4) disclose all relevant information that
could reasonably be expected to influence an intended user’s understanding of
the reports, analyses or recommendations.

Among the three ideas Jackson came up with, only ideas a and b are acceptable
to use. Idea A presents to stop all research and development efforts on the drug
Vyacon until after year end. However, given the fact that this solution Jackson
thought may solve the short term fall for the year; this could still bring a long term
 loss of possible future profits for BrisCor, particularly if a competitor brand can
bring their game up and get a patent for the similar drug before BrisCor can.
Next, idea B presents sell off rights to the drug, Martek. Though selling off rights
to Martek may be able to aid their short-term fall, looking at the long run; BrisCor
will lose possible profits that may not be very beneficial for them. On the other
hand, Idea C is not an acceptable way to solve the problem, the idea of
capitalizing some of the company’s R&D expenditures is a direct violation of the
IMA‘s ethical standards stated above. This would not be in accordance with
relevant laws, regulations, and technical standards. GAAP requires research and
development costs to be expensed as incurred. And even though Jackson can
justify the transaction to be made; the mere fact that it violates the profession ‘s
technical standards would be unethical.
2. We would recommend Jackson neither to slow down the R&D efforts on Vyacon
or sell off the rights to Martek. He shouldn’t agree to any of that because the
economic interests of BrisCor will be sacrificed only for short-term gains. While, if
he will opt for the idea of capitalizing some of the company‘s R&D expenditures,
it will be unethical. Instead, he should stand against these ideas. However, if the
CFO asks him to take the unethical action which is to capitalize the R&D, he
should consult the chair of the audit committee before accepting the task from
Meece. If Meece still insists to capitalize the R&D expenditures, we recommend
that he should explain to the CFO that it is an unacceptable act and if he doesn't
mind, he should just resign rather than accepting to do such unethical action.
Background Information about The Coca-Cola Company

The Coca-Cola Company is the #1 nonalcoholic beverage company in the world.

It markets, manufactures and sells beverage concentrates and syrups and finished
beverages. It is home to more than 500 beverage brands which include four of the top
five soft drinks: Coca-Cola, Diet Coke, Fanta, and Sprite. In addition to soft drinks, it
markets waters, juice drinks, energy and sports drinks, dairy and plant-based
beverages, and ready-to-drink teas and coffees. With the world's largest beverage
distribution system, Coca-Cola reaches thirsty consumers in more than 200 countries
and nearly 225 bottling partners.

The Coca-Cola Company is a global business which operates systematically

through multiple local channels. It generates net operating revenues by selling
concentrates, beverage bases and syrups to bottling operations. In which the company
is responsible for consumer brand marketing initiatives of their own brands. The
company is known for multiple popular ad campaigns stretching back many decades.
Coca-Cola heavily invests in advertising to keep its brand in the mind of consumers.

Bottling partners manufacture, package, merchandise and distribute the final

branded beverages to the customers and vending partners, who sell the products to
consumers. Grocery stores, restaurants, street vendors, convenience stores, movie
theaters and amusement parks are some of the customers of the bottling partners who
work closely with them to execute localized strategies developed in partnership with the
Coca-Cola Company.
Vision Statement

 Inspiring each other to be the best we can be by providing a great place to work.

Mission Statement

 To refresh the world in mind, body, and spirit, to inspire moments of optimism
and happiness through our brands and actions, and to create value and make a
difference

Product differentiation was evident in the company’s mission and vision; it was clearly
stated in their vision that they value a good environment for their employees, probably
to incorporate good camaraderie among them. Alongside, their mission is to be able to
inspire moments through their brand, probably for their consumers to have a great
experience every time they consume the product. In line with this, it can be concluded
that Coca-Cola greatly gives emphasis on human relationship; campaigns like “Share a
Coke” is a great example that shows how the company values relationships and at the
same time a great venue to make their product different from the others in the market
and to be able to attract more customers.

Indication that they use product differentiation strategy

Product differentiation is a marketing process of differentiating an offering

(product or service) from others in the market, to make it more appealing to the target
audience. In the case of Coca-Cola Company, product differentiation was visible when
they first introduced the “Share a Coke”campaign which first launched the campaign in
Australia, but expanded it to the United States, United Kingdom, and other regions
across the world. Since, there are numerous brands out there that offer the same
products,the campaign the company produced; wherein Coke bottles with customers’
names on the labels are introduced, and customers were encouraged and asked to
share the pictures of their personalized coke bottle on Twitter and other social media
platforms, more customers were enticed to patronized Coca-Cola which in return
garnered higher profits.

Their success stories in implementing the respective competitive strategies

In the past, Coca-Cola started as a cocaine-infused elixir in 1826 and changed to

a unique sugary drink in 1929. Today, more than 200 countries drink 1.9 billion serving
of Coca-Cola products, according to the company. For the people to enjoy a certain
product is far to become one of the most valuable companies in the world. According to
VP of innovation and entrepreneurship, David Butler, Coca-Cola used seven key design
and marketing strategies that made them recognizable in the streets of Shanghai in its
hometown of Atlanta in the 1920's and able to be recognized globally. The seven
strategies are as follows; (1) It started with a unique, market-tested formula; (2) Logo
uses timeless font; (3) It was distributed in a proprietary bottle; (4) It held retailers
responsible for maintaining its high standard; (5) Constant price for 70 years; (6)
Through word-of-mouth advertising and developed a voice; and (7) adopting a franchise
model. Though the Coca-Cola Company follows these strategies to their course of
business towards success, it is noticeable that they also follow the 4P’s strategy with
their products. They also focus on improving their community relationships that will have
a positive effect on their public image.

References

Coca-Cola History: World of Coca. (n.d.). Retrieved from https://www.worldofcoca-

cola.com/about-us/coca-cola-history/

Cola System - Our Company: The Coca-Cola Company. (n.d.). Retrieved from
https://www.coca-colacompany.com/company/coca-cola-system
Feloni, R. (2016, February 19). 7 strategies Coca-Cola used to become one of the
world's most recognizable brands. Retrieved from
https://www.businessinsider.com/strategies-coca-cola-used-to-become-an-iconic-brand-
2016-2

Mike. (2019, August 10). Differentiation Strategy ... 9 Brands That Employ Excellent
Ones. Retrieved from https://digitalsparkmarketing.com/differentiation-strategy/

Msa. (2020, March 17). Coca Cola Mission Statement 2020: Coca Cola Mission &
Vision Analysis. Retrieved from https://mission-statement.com/coca-cola/

The Coca-Cola Company: Company Profile. (n.d.). Retrieved from

https://www.vault.com/company-profiles/food-beverage/the-coca-cola-company

The Coca-Cola Company: Refresh the World. Make a Difference. (n.d.). Retrieved from
https://www.coca-colacompany.com/

White, W. (2016, June 21). Coca-Cola Marketing Strategy: Recipe for Success.
Retrieved from http://inevitablesteps.com/marketing/coca-cola-marketing-strategy/