BIN3020-N: Coca-Cola's Financial Model and Strategy in China

This report provides a comprehensive analysis of Coca-Cola's financial model within the Chinese market. It begins with an overview of Coca-Cola's business in China, detailing its market presence and operational strategies. The report then delves into the financial model employed by Coca-Cola, examining revenue streams, production facilities, and key brands. A significant portion of the analysis involves a competitive review, comparing Coca-Cola's financial model with that of its main competitor, Pepsi-Cola, evaluating market share, marketing strategies, and the impact of external factors. The report also predicts the future financial model of Coca-Cola, considering consumer trends, marketing adjustments, and the company's overall strategic direction. The methodology employed includes secondary research, focusing on financial statements and reports from Coca-Cola's official website, and qualitative analysis to interpret the financial data and operations. The report concludes with recommendations for Coca-Cola to innovate and adapt its business strategies to meet the evolving demands of the Chinese market, emphasizing the need to shift from a product-centric to a consumer-centric approach.

Running Head: FINANCIAL MODEL EMPLOYED WITHIN CHINA BY COCO-COLA
FINANCIAL MODEL EMPLOYED WITHIN CHINA BY COCO-COLA
Name of the Student
Name of the University
Author Note

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Table of Contents
Chapter-3....................................................................................................................................2
Chapter-4....................................................................................................................................3
Findings and Analysis............................................................................................................3
Chapter-5....................................................................................................................................5
Conclusions and Recommendations......................................................................................5
Chapter- 6...................................................................................................................................6
Self-Reflection.......................................................................................................................6
References..................................................................................................................................8

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Chapter-3
Research Design and Methodology
Research Method
Secondary Research- The above research is carried out by using secondary data
collection method. It is a type of research method, in which the information that is already
recorded by others is used in the research (Goyal, Agarwal and Tripathi 2019). The time and
cost of the research are less. The financial statements report and sustainability report of the
company is closely observed from the official website of Coca-Cola.
Reasons for secondary research- The secondary source of the company has provided
sufficient information to analyse the financial aspects of Coco-Cola critically. The process is
easy and simple (Ranasinge et al. 2018). The specific information is studied on the company's
website. The secondary research method will help the research to answer the following
research questions:
1. The external forces that could affect the profitability and competitive position of
Coco-Cola.
2. The various factors that could impact the financial situation of the business.
3. To determine the future profitability and financial position of the company with
respect to various external factors.
Primary Research- The above report does not use any primary data collection method
because this type of data collection method requires a very complex process to get the
relevant data.

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Research design- The overall data collected from the secondary source were observed
in a very logical way. It is a descriptive type of research design in which the research is
carried out by properly observing and comparing the financial data’s of the company with
other competitors.
Type of Data Analysis- The research is carried out by using a qualitative analysis
method. The data collected from the secondary source were summarised, and comprehensive
analysis of the financial data was interpreted from the financial operations of the company
(Tracy 2019).
Chapter-4
Findings and Analysis
The findings and analysis of the research objectives are discussed in this chapter.
Research Objective 1
To describe the business of Coco-Cola in China:
Coco-Cola, as a leading brand for soft drinks, has a strong market in all across the
world. The company has a strategy of doing a 2-bottler strategy business in China. The
company holds beverage industries in China. The liquor department of this company sells
various brands of beverages in the domestic market of the company.
Research Objective 2
To describe the financial model employed by Coco-Cola:
The company has nearly 1000 plants and production facilities in the world. The
revenue of the company comes from the sale of concentrates and syrups of bottling plants
form all across the world. Other revenues are also generated from the sale of various

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manufactured goods & distributors (Ccamatil.com, 2020). The company has a strong brand
in all across the world. Some of the brands are Coco-Cola, Fanta, Sprite and Diet Coke.
Research Objective 3
To compare and review the financial model of Coco-Cola with other soft drink companies:
From the competitive analysis of the company, it has been found that Pepsi-Cola is
the leading competitor of Coco-Cola. The company has a strong marketing network and
distribution in China as compared to Coco-Cola. The competitors of Coco-Cola can easily
enter into the market. The company is facing various threats in the competitive markets,
irrespective of its unique features. It has been found that, in recent years, the company is
facing a high cost of raw materials from the suppliers (Wee 2017). The demand for beverages
is very high. The consumer is demanding more for satisfying the thirst, delicious and
nutritious product. The company is facing a various threat in the global market. The biggest
threat is the demand for Pepsi-Cola. Coco-Cola is facing challenges in the carbonated
beverage market.
Research Objective 4
To predict the future financial model of Coco-Cola:
The management of the company is focused on improving the quality of the products.
The company is focusing on building products on the basis of culture and habitats of the
people of China. The company is focused on changing their marketing strategy to attract the
consumer’s towards their product. In order to meet the changing needs of the consumers,
Coco-Cola has launched various styles and brands of the beverages. The company has a
strong and powerful network of sales across the world (Nurlansa and Jati, 2016).
Interpretation of Information

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Coco-Cola is focused on changing the current strategy of the company. It is focusing on
changing the branding styles for meeting the current demands of the consumers in China.
Pepsi-Cola is the largest competitor of the company (Zhang 2019). Coco-Cola is facing
various threats in the competitive market.
Conclusions
The financial model of Coco-Cola has faced various threats from its competitive
market. The company has gained a strong market share of sales in China. But it is not able to
meet the changing demands of the consumers. The competition intensity of the company is
very low. Pepsi-Cola is a strong competitor of the company. Coco-Cola is changing its
branding strategy to meet consumer demands. The company has gained a reasonable
profitable position in the market.
Chapter-5
Conclusions and Recommendations
Conclusion
Focusing on both the objectives of the research, it can be seen that, Coco-Cola is a
strong manufacturer and distributor of concentrates and syrups of non-alcoholic beverages.
The company has five famous strong brands all across the world with 1000 of plant &
production centres. It generates a maximum of its revenue from, distribution and sale of
concentrates and syrups. The organisation is facing various challenges to compete in their
competitive market in China. The bottling and marketing strategy is focused by the company,
according to the Chinese culture. Pepsi-Cola is the largest competitor of this company.
Through chapter 3 and chapter 4, the findings have helped to determine the financial
performance of the company. The results will help to analyse the efficient process of Coco-
Cola in terms of its competitive position.

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Ethical Considerations
Coco-Cola is facing a lot of pressure on ethical issues. The company is involved in
manipulating earnings, racial discrimination, pollution, depletion of natural resources and
issues in health concern (Lu et al. 2016).
Recommendations
Based on the findings, it is recommended that Coco-Cola needs to innovate their
business. They must shift their business strategy of, what the "company wants to sell" to what
the “consumers want to buy". They must stress the needs if the buying trends to attain a
competitive market.
Chapter- 6
Self-Reflection
The following Gantt chart will help in setting the clear aims and objectives of the research.
This will help in clarifying the success of the project.

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References
Ccamatil.com (2020). [online] Ccamatil.com. Available at:
https://www.ccamatil.com/-/media/Cca/Corporate/Files/Annual-Reports/2019/2018-Annual-
Report.ashx [Accessed 9 Jan. 2020].
Goyal, A.K., Agarwal, G. and Tripathi, A.K., 2019. Network Architectures, Challenges,
Security Attacks, Research Domains and Research Methodologies in VANET: A Survey.
Lu, X., Ai, W., Liu, X., Li, Q., Wang, N., Huang, G. and Mei, Q., 2016, September. Learning
from the ubiquitous language: an empirical analysis of emoji usage of smartphone users. In
Proceedings of the 2016 ACM International Joint Conference on Pervasive and Ubiquitous
Computing (pp. 770-780). ACM.
Nurlansa, O. and Jati, H., 2016. Analysis of porter's five forces model on Airbnb. Elinvo
(Electronics, Informatics, and Vocational Education), 1(2), pp.84-96.
Ranasinge, D.U., Jayanthi, W., Bunker, J.M. and Bhaskar, A., 2018. Analysis of impact of a
downstream bus stop on variation of saturation flow rate at signalised intersections.
Tracy, S.J., 2019. Qualitative research methods: Collecting evidence, crafting analysis,
communicating impact. John Wiley & Sons.
Wee, C.H., 2017. Think tank—beyond the five forces model and blue ocean strategy: an
integrative perspective from Sun Zi Bingfa. Global Business and Organizational Excellence,
36(2), pp.34-45.
Zhang, Z., 2019. Risk Analysis of Two Leader Drink Company: PepsiCo and Coca-Cola.
Asian Business Research, 4(3), p.42.

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