Global Financial Strategy

This presentation provides an overview of global financial strategy, focusing on Coca-Cola as a case study. It covers topics such as company profile, sentimental analyses, PEST analysis, business model, financial position, major financial risks, and corporate strategies. The presentation concludes with recommendations for Coca-Cola's future growth.

Global Financial Strategy

Covered content
• Company profile
• Sentimental analyses
• PEST Analysis and key competitors
• Business model
• Overviews of financial position and performance
• Evaluation of major financial risk
• Analysis of various financial strategies
• Corporate strategies
• Recommendation

Company profile
Coca-Cola is the multinational company which have a
great brand value. This specially deals in the producing in the
market of non-alcoholic beverage industry and sells in the
global markets their products cover waters, fruit juices, ready
to drink tea and coffee, and diverse kinds of energy and sport
drinks.

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Coca-Cola is the world largest selling cold drink along
with the highest recognisable brand throughout the world.
This company was incorporated by the John S. Pemberton in
1886 in Atlanta. It sells its first cold drink as fountain
beverage at Jacob’s Pharmacy by combining Coca- Cola
syrup in the United States.

Sentimental analyses
Demographic segmentation: According to this, segmentation
is done on the basis of Age, Gender, Income and others. these are
defined in details.
Age: Coca- Cola company mostly targets the teenagers and
adults who are within the range between 15-40 years.
Gender: Coca-Cola company targets male and female
throughout the planet.
Income: Company targets to overall all income group people.
As this makes company more effective and efficient.

PEST and Industry analysis
PEST analysis is the tool which is used by the company in
order to know the macro factors which ultimately assist the
organisation to make effective strategy.
Political factor: This factor affects the business operations in
a negative or positive manner. However, if political constraints
would arise then this would create problems for the organisation.

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Economic Factor: At the time of recession during 2001,
USA government took destructive actions to reflect the
economy in around the manner of 2002. Coca Cola
considered this matter, and find out that loan interest
charges can be overcome by implementing effective
strategy.

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Social Factor: Various majority of Coca- Cola’s drinks
are distributed in various urban areas under which they can
provides the requirements of individuals. Coca- Cola
introduced around 30 new opportunity flavours in Japan in
order to draw its Japanese clients.

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Technological Factors: Technology and the innovation
are the main components of any enterprise. In addition to
this, Coca- Cola company requires devastative tools which
is advantages in producing better products in excessive
quantities.

Business model
Coca-Cola organisation manufactures and distributes coke, diet
coke and various soft drink throughout the globe. Main aim of
the company to offers non-alcoholic beverages, covering
sparkling beverages and still beverages.
Coca-Cola still beverage covers non-alcoholic beverages which
does not covers carbonation and covering non-carbonated
energy drinks, juices and juice drinks, ready to drink teas and
coffees, and sports drinks.

Overviews of financial position and
performance
Financial evaluation is the major concern which is totally relied
upon the consolidated audited Financial reports of 2016. Coca-
Cola organisation and the comparison are formed in opposition to
one in each of its main contenders Pepsi-Co.
Profitability:There is various profitability margin which assist
the investors or other person to take decisions on the basis of
under mentioned ratios.

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Gross Margin: Coca-Cola is earning a handsome amount of
profit margin in past years. but during 2015 and 2016, the
gross profit margin was remarkable.
Operating Margin: The operating margin of Coca-Cola
organisation is 21% which is better than PepsiCo which
operating margin is 16%.

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Liquidity: This represents the company’s current viability.
Current ratios: This represents whether the company is
able to pay its current liabilities via using current assets.

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Coca- Cola Risk Management
Coca- Cola as international business enterprise which is
exposed to diverse marketplace risks that covers constraints in
the Forex prices, commodity prices, hobby costs which might
affects the organisation frequently in its overall economic
performance.

Foreign Currency Exchange rate
Forex exposure emerge from varying in costs, in addition
to this, foreign money devaluation in aggregate along with
capital controls, that limits movement of funds and
enhanced the risks of asset impairment.

Future Strategy and Growth
The income per-share of coco-cola has increases from 0.74
to 2.00 which is equal to 6.9% during 2000 to 2015. This
growth helps shareholder to get maximum return on their
investment.
Furthermore, Cocoa-cola has growth potentialities are
robust due to following three elements:
•Organic growth, driven by extension of the beverage
market and coca-cola still portfolio.
•Business Improvement through investing into bottling
operations.

Corporate strategies
• Growth Strategies
• Stability Strategies
• Retrenchment Strategy

RECOMMENDATIONS
Coca-Cola company is the most renowned brand around the
globe. Which have their operations in more than 200
countries. Now, there is a need to focus on providing healthy
products in order to maximise the level of satisfaction of
customers so that they can able to compete their rivals such as
Nestle. Coca-Cola also focuses on expanding their business
operation in different countries to reach maximum customers.

References
Rey, H., 2015. Dilemma not trilemma: the global financial
cycle and monetary policy independence (No. w21162). National
Bureau of Economic Research.
Shiller, R.J., 2012. The subprime solution: how today's global
financial crisis happened, and what to do about it. Princeton
University Press.
Chor, D. and Manova, K., 2012. Off the cliff and back? Credit
conditions and international trade during the global financial
crisis. Journal of international economics. 87(1). pp.117-133.

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