Strategic Review: Coca-Cola's Global Financial Strategy (UMADF8-15-M)

This report provides a comprehensive analysis of Coca-Cola's global financial strategy, including a company profile, sentimental analyses, PEST analysis, key competitors, and business model overview. It evaluates Coca-Cola's financial position and performance, major financial risks, and various financial and corporate strategies, including growth, stability, and retrenchment strategies. The report also offers recommendations for Coca-Cola to enhance customer satisfaction by focusing on healthy products and expanding business operations in different countries to reach a wider customer base. The analysis incorporates financial data and strategic considerations to provide a detailed understanding of Coca-Cola's global financial approach.

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%.