Portfolio Presentation: Coca-Cola's Diversification & Investments

This presentation provides a comprehensive analysis of Coca-Cola's portfolio management strategies, focusing on diversification, investment, management practices, exchange rates, and currency forecasting. It explores how Coca-Cola has diversified its product range and expanded into new markets, including investments in healthy drinks and acquisitions of juice and dairy companies. The presentation examines Coca-Cola's investment approach, emphasizing product choice, cash productivity, and financial efficiency, alongside its management style, which combines centralized control with commercial, consumer marketing, and franchise leadership. It also evaluates the impact of exchange rates on Coca-Cola's profitability and discusses the use of currency forecasting to mitigate risks. The presentation highlights Coca-Cola's strategic initiatives in emerging markets and its competitive advantages, providing a detailed overview of the company's global business operations. Desklib provides students access to similar solved assignments and past papers for academic support.

Portfolio
Management
COCO- COLA

Index
1. Introduction
2. Diversification
3. Investment
4. Management
5. Exchange Rates
6. Currency Forecast
7. Reference

Introduction
• Coco-Cola created for itself the most
admired and the trademarks best known
in world.
• It saw its birth in 1886 in Georgia, Atlanta
established as a manufacturer of
carbonated soft drinks.
• Across the globe Coco-Cola products every
second 19400 beverages.
• The company has an employee force of
92400 and production plants in more than

Introduction
• The product range more than 3500
merchandise including Diet Coke, Coco-Cola
Citra, Coco-Cola Life, Coco-Cola Vanilla.
• Coco-Cola has been successful in creating a
brand value worth $78.14 billion.
• The company has placed itself in the equity
market successfully where current return
equal opportunity cost of the investment for
most of its investors making it a attractive
option.

Introduction
• The shares have appreciated in value
and also protected its investors
against purchasing power’s attrition
in times of inflation (Shapiro, 2014).
• With massive product campaigning
Coco-Cola has been able to create for
itself a well known place and a leader
in the soft drink industry.

Diversification
• Coco-Cola has been an active diversifier of
its portfolio.
• Diversification proved key in the business
and company’s cornerstone success. There
is only so much of cola which the world
was willing to drink.
• Coke had always been about expansion for
capture of new markets and change to
respond the trend of market.

Diversification
• Diversification ensured that capabilities are
distinct and value is created for revenue
generation.
• Diversification has also powered value
proposition in the beverage industry (Laskin,
2018).
• During the century long operations of the
company the core business stay focused on
juices and soft drinks.

Diversification
• Although on bigger stage the company was
well known for Coke. Still it knew that
although popular it cannot serve
everyone’s taste and hence for share
maximization of the market it offered broad
range of carbonated soft drinks from
Coke’s diet version to orange
(Santandercb.co.uk, 2018).
• Presently the company’s revenue from
carbonated soft drink is 77% and the rest is
from non carbonated ranging from water,
fruit juices, tea and sport drinks (Liu,

Diversification
• There has been a trio outside of the
signature fizzy line of product which
moulds Coco-Cola into a behemoth namely
Minute Maid, Columbia Pictures and Keurig
Green Mountain.
• Seeing consumer lean towards health
drinks, the company decide to invest in the
same by acquiring VitaminWater in year
2007 and Honest Tea in year 2011.

Diversification
• Diversification has helped to showcase the
company as producer of healthy drinks. Over $17
billion were invested to take advantage of beverage
market in Africa in 2014 (Sotunde, 2014).
• To understand the diversification plan its important
to note that the Company acquired a Nigerian
based juice industry.
• In the first quarter of 2017 the company announced
its brand of premium ice teas, “Gold Peak” to
launch coffee and tea lattes.

Diversification
• To keep up with the changing market pace in
Japan, Coco-Cola decided for the first time to
branch into alcohol with a cocktail that
consists of carbonated water fruit juice and
distilled spirits (Weinbren, 2018).
• As a part of Diversification, Coke tried its
hands on market saturation and artificial
competition with a number of brands
(Osman, 2018).
• Finally last strategy which the company
chose was to find a ally which can help
against common competitor.

Investment
• Coco-Cola’s success in arena of investment is
based on four pillars.
• The company’s product choice has been top
notch. It focuses on those products which can
help its profit margins.
• With natural products being seek more by
customers company geared up for production
of healthy products in comparison to sticking
to traditional sugary products.