Strategic Changes Impact on Coca-Cola Share Price Analysis Report

This report analyzes the impact of strategic changes on Coca-Cola's share price. The analysis begins with a background on Coca-Cola, highlighting its historical evolution from a patent medicine to a global beverage company. The report examines the factors influencing the company's share price, including the introduction of new flavors like Diet Coke and Coca-Cola Zero Sugar, as well as the impact of divesting bottling operations. It provides a detailed analysis of share price fluctuations before and after the announcement of strategic changes, using specific data points from August 2018 and October 2018. The report concludes by examining the company's responses to news articles and their reflection in the annual report and other communication media, linking the analysis to concepts like the conceptual framework and the usefulness of financial information for users. The report aims to determine the correlation between strategic decisions and market performance by examining share price movements and relevant market data.

Contemporary
Issues in
Accounting
Coca Cola

About the Study
 Coca-Cola initially started its business as a patent medicine, which
was invented in the late 19th century by John Stith Pemberton
 The business started with the inclusion of the ingredients such as the
adding of the Coca Leaves and Kola Nuts
 The present formula for the company remains a trade secret
pertaining to importing of variety of recipes and experimental
recreations
 Study aims to identify the changes in the share price of Coca Cola
before and after introduction of specific strategic changes made in
October 2018

Reasons leading to changes in
share price
 Increasing share price pertaining to strategy of including new flavors
of Diet Coke and Coca-Cola Zero Sugar
 The company was seen to adopt significant strategy such as divesting
its bottling operations
 Coca Cola has made restatement possibilities to make Coca-Cola a
more capital-light operation
 Despite of reducing impact on the revenue from the GAP, there has
been increased opportunities for the companies to promote smaller
beverage size

Graph of share price change for
Coca Cola

Inference Made from Share
Price Before Announcement
 The company had suffered decreasing share price in the month of
August 2018 with -4%
 In the month of February the Share price decreased to -9%
 This called for making changes in the strategies in the business

Inference Made from Share
Price after Announcement
 Company took major strategic changes such as introducing new
flavors of Diet Coke and Coca-Cola Zero Sugar
 Coca Cola also adopt significant strategy such as divesting its bottling
operations in October 2018
 Share price retiring in October 2018 was 4%
 The share Price Further increased to 5%

Thank You