Financial Instability and its Impact on Coca-Cola's International Business

This presentation discusses the financial instability in the international business of Coca-Cola and its impact on the company's supply chain, manufacturing, and production. It also explores the measures that Coca-Cola can take to reduce inherent risks and adapt to financial unstable conditions.

International Business of Coca-Cola
Name of the Student
Name of the University
Author Note

Introduction
• Coca-Cola is a carbonated multi-national corporation from America
• The company is 133 years old
• The products of the company are sold in more than 200 countries
• Main competitor of Coca-Cola is Pepsi
• The revenue earned by the organization is USD 3,185 Crores as of 2018
(Banks, 2016)

More Introduction
• Coca-Cola is the largest beverage company in the world
• They totally license or own along with market more than 500 non-
alcoholic beverage brands
• The company also possess the largest distribution system globally
• 4 out of top 5 non-alcoholic beverages are owned and marketed by them
• Coca-Cola, Fanta, Diet Coke and Sprite are those brands (Banks, 2016)

Financial Viability of Coca-Cola
• The net operating revenue of the company are $41,863, $35,410 and
$31,856 for the financial year of 2016, 2017 and 2018 respectively
• The net income from the continuing operations of the organization are
6,550, 1,182 and 6,727 in terms of USD for the financial year of 2016,
2017 and 2018 respectively
• The net income owing to the shareholders of the company are 6,527, 1,248
and 6,434 in terms of USD for the financial year of 2016, 2017 and 2018
respectively (Bloom, 2014)

Financial Condition as of 2018

Financial Instability in Supply Chain
• The financial instability can harm the logistics network of Coca-Cola
• The ups and downs in the economic conditions of the marketplaces
will hamper the flow of the supply chain management
• It will disrupt the availability of the products of the organization in
many regions around the world
• Fluctuations in the currencies of the country will have an effect in the
overall supply chain network of Coca-Cola (Bloom, 2014)

Financial Instability in Manufacturing
• The financial instability in the international environment will also hamper
the overall manufacturing of Coca-Cola
• Overall demand will depend on the financial conditions of the countries
where they are selling their products
• Shortage of lending, fears over the sustainability and volatility in currency
affects the production of the company as a whole
• The different techniques are also hampered in the financially unstable
environment (Naghshbandi, Chouhan & Jain, 2016)

Financial Instability in Production
• The unstable economic conditions throughout the world will also
impact the overall production of the company
• The needs and requirements of the customers will automatically come
down in the economic crisis of the regions (Larkin, 2013)
• The revenue generation of Coca-Cola will also become low
• An overall adverse effect will be seen de to the financial instable
conditions in the regions around the world on Coca-Cola

Reduction of Inherent Risks
• Coca-Cola have to maintain certain steps in order to reduce the financial
conditions in the financial instable conditions
• Financial ability to stretch in the financial instable conditions will help the
organization to suffer less or no loss in certain regions
• Segmented growth strategies need to be followed by the organization
• Investments must be done efficiently and effectively by Coca-Cola
• Revenues earned need to be saved for future purposes (Bremmer, 2014)

Conclusion
• Coca-Cola need to modify their financial structure according to the
financial conditions of the market places where they are running their
business operations
• The company may reduce the production or manufacturing units in order
to suffer huge losses in future
• The business models also needs to be rectified in the occurrence of the
financial unstable conditions

THANK YOU

References
• Banks, H. (2016). The business of peace: Coca-Cola's contribution to
stability, growth, and optimism. Business Horizons, 59(5), 455-461.
• Bloom, N. (2014). Fluctuations in uncertainty. Journal of Economic
Perspectives, 28(2), 153-76.
• Bremmer, I. (2014). The new rules of globalization. Harvard Business
Review, 92(1), 103-107.
• Daniels, J. D., Radebaugh, L. H., & Sullivan, D. P. (1998). International
business: Environments and operations. Addison-Wesley.
• Larkin, Y. (2013). Brand perception, cash flow stability, and financial
policy. Journal of Financial Economics, 110(1), 232-253.
• Naghshbandi, N., Chouhan, V., & Jain, P. (2016). Value based
measurement of financial performance. International Journal of Applied
Research, 2(2), 365-369.