"Johnson & Wales University

Providence, Rhode Island

School of Business
Graduate Programs

EXTERNAL ENVIRONMENT ANALYSIS – THE COCA COLA COMPANY

Written Paper Submitted in Partial Fulfillment

of the Requirements for the MBA Degree
Course: Business Policy and Strategy MGMT 6800
Dr. Ronald DiBattista

Amandeep Singh
Yash Patel
Michael Widjojo
Xipie
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Table of Contents

Content Name Page#

Introduction 2

Internal Environmental Analysis 3

Capabilities 6

Core competencies 7

Competitive advantages 8

Value chain analysis 12

Weighted competitive strength assessment 19

SWOT 21

Financial analysis 23

References 24
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INTRODUCTION

This paper analyzed the internal environment of Coca-Cola Company, the paper will analyze from

the following aspects. Resources, capabilities, core competencies, distinctive competencies, supply chain,

weighted competitive strength assessment, and financial analysis.

Each company and business has its own mission statement, culture, leadership style, which

compose the internal environment of and organization. Internal environment influence an organization’s

activities, and business decisions. With revenues of $35,119 million, Coca-Cola is one of the largest

beverage manufacturers globally. It is the largest provider of sparkling beverages, juices and juice drinks

and ready-to-drink teas. The company offers more than 3,500 products including diet and regular

sparkling beverages, and still beverages such as 100% juices, juice drinks, waters, sports and energy

drinks, teas and coffees, and milk and soy-based beverages. Of the approximately 55 billion beverage

servings of all types consumed worldwide every day, beverages bearing trademarks owned by or licensed

to Coca-Cola account for more than 1.7 billion (Data monitor, 2011). Coca-Cola is absolutely a leader

and the most recognized brand in beverage industry. However, the competition is still fierce, for example,

Pepsi Coca still cause threats for Coca-Cola, therefore, in order to maximize the sales, continue to inspire

its employees to maintain this edge, Coca-Cola need to make changes and effective business decisions

due to the change of business environment. Internal environment analysis is an effective way to deeply

analyze the company resources, competitive edges, supply chains, and financial reports, so that Coca-

Cola can make the maximum use of its resources and strengths, and make decisions to make up its

weakness.
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INTERNAL ENVIRONMENT ANALYSIS

Recourses

Tangible resources

Companies use resources to create good and services. Recourses include tangible and intangible

recourses. Tangible recourses include company’s land, geographical location, infrastructure assets such as

buildings, information communication technology, physical networks and other equipment, as well as

access to raw materials, energy and other important inputs (Cater, 2009).

In 2016, the net income attributable to shareowners of the Coca-Cola Company is 6,527 million

dollars. The headquarter of Coca-Cola is located in Atlanta, GA. The complex includes about 2,000,000

square foot buildings including office, manufacturing, technical, and engineering facilities. Most of the

company's properties are located in the US. Coca-Cola has facilities for administrative operations,

manufacturing, processing, packaging, packing, storing and warehousing throughout the US and Canada.

As of December 2008, Coca-Cola owned and operated 29 principal beverage concentrate and/or syrup

manufacturing plants located throughout the world. In addition, Coca-Cola owns or holds a majority

interest in 118 principal beverage bottling and canning plants located throughout the world. These plants

are included in the Bottling Investments operating segment (Company Spotlight, 2009). The Coca-Cola

Company operates out of more than 200 countries and has about 275 Coca-Cola bottlers. The bottlers

allow the company the ability to manufacture and distribute their products to customers and producers

around the world. The Coca-Cola Company has strong fiscal resources. They use such recourses to

expand their market such as China, Russia, and India. Coca-Cola owns the modern caput office is divided

into four section including gross revenues, HR, selling and ICT. Each section is equipped with the

appropriate installations for the work of that section.

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Intangible Recourses

Intangible recourses is also crucial for company, it includes patents, trademarks, knowledge, and

technology. As for intangible recourses of the Coca-Cola Company, the most important that must be

discussed is its brand value. The Coca-Cola Company always devoted to establish a strong and valuable

brand. Today, Coca-Cola is one of the most famous brand all over the world, it owns four of the world’s

top five nonalcoholic sparkling beverage brand including Coca-Cola, Diet Coke, Sprite and Fanta.

Additionally, the company's portfolio includes 13 other billion-dollar brands, including Coca Cola Zero,

Diet Coke, Sprite, Fanta, Minute Maid, Dasani, Aquarius, PowerAde, Sokenbicha, Georgia Coffee,

Simply glace au vitamin water, and Minute Maid Pulpy (Data monitor, 2011).

Besides, the Coca-Cola Company also has many technological resources. For example, the Coca-

Cola has the greenest bottle, which is more eco-friendly with higher recycle capableness. All stairs in the

production procedure is about to the full automated. Coca-Cola can speed up the production procedure, to

maintain the merchandise quality stable and unafraid working environment. Coca-Cola keep expand its

web of intercrossed engine truck. It non-merely helps Coca-Cola saves fuel costs but besides help cut

down harmful emanations to the environment.

To remain competitive in the fast paced industry of beverages and continue expand the business

scale, the Coca-Cola Company really focus on its human recourses. Human capital includes all people

who work for Coca-Cola Company, their skills, experiences, expertise and credibility. In 2016, the

number of employees at Coca-Cola is about 100,600. And it ranked among the world’s top 10 private

employers with more than 700,000 system employees including its bottling partners.

Analysis of Resources

According to table 1, it is clear to see the both tangible and intangible recourses of the Coca-Cola

Company. The Property, plant and equipment is 10,635 million, 12,571 million and 14,633 million in

2016, 2015 and 2014. The Coca-Cola has a decrease in its property, plant and equipment assets in 2016.
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The total number of intangible assets also keeps decreased from 2014 to 2016. In 2016, the Coca-Cola

Company focus on equity method investment, and decrease other investment from 3,470 million to 989

million dollars.

Table 1. Coca-Cola Co., Consolidated Statement of Financial Position, Assets

USD $ in millions

Dec 31, 2016 Dec 31, 2015 Dec 31, 2014

Cash and cash equivalents 8,555 7,309 8,958

Short-term investments 9,595 8,322 9,052

Cash, cash equivalents and short-term

investments 18,150 15,631 18,010

Marketable securities 4,051 4,269 3,665

Trade accounts receivable, less allowances 3,856 3,941 4,466

Inventories 2,675 2,902 3,100

Prepaid expenses and other assets 2,481 2,752 3,066

Assets held for sale 2,797 3,900 679

Current assets 34,010 33,395 32,986

Equity method investments 16,260 12,318 9,947

Other investments 989 3,470 3,678

Other assets 4,248 4,207 4,407

Property, plant and equipment, net 10,635 12,571 14,633

Trademarks with indefinite lives 6,097 5,989 6,533

Bottlers' franchise rights with indefinite lives 3,676 6,000 6,689

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Goodwill 10,629 11,289 12,100

Other intangible assets 726 854 1,050

Noncurrent assets 53,260 56,698 59,037

Total assets 87,270 90,093 92,023

Source: Coca-Cola Co., Annual Reports

Capabilities

Capabilities refer to how a company uses its resources to create the goods and services. As

mentions in Recourses part, the Coca-Cola Company is a leader in the beverage industry, and it has plenty

of recourses. Coca-Cola has strong fiscal resources, which make the company to do investment and

expand the market. If a business has no capital, or lack of funds, no matter how good the plan, no matter

how good the project, it is a dream. Adequate funding is one of the important guarantees for business

operations. Coca-Cola has adequate fiscal recourses to constructs substructure and staff preparation; even

they will face a huge loss due to failure plan. Moreover, with strong fiscal resources, Coca-Cola Company

has adequate funds to operate the marketing plan, for example, advertisements, campaigns, and

promotions, according the research, Coca-Cola advertisement budget in 2011 range to $ 3.2 billion. With

such huge investment on advertisement, the Coca-Cola will increase their brand reputation. For example,

Coca-Cola used to have “Share a Coke” Campaign, It debrands the traditional Coke logo, and replacing

"Coca-Cola" from one side of a bottle with the phrase "Share a Coke with" followed by a person's name.

Coke sold more than 250 million named bottles and cans in a nation of just under 23 million people. The

campaign has since made its way around the world, reaching more than 70 countries (Jay, 2014). This

campaign provides customization service for customers, which can increase sales in short time, and also

advertise the brand.

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Coca-Cola keeps thousands of talented and experienced employees. Because Coca-Cola applies the

scheme of talent localization successfully. Each clip they enter a new market they recruit a batch of local

staff in order to increase the ability to understand new markets, so the ability to perforate new markets is

unusually fast.

Core Competencies

Coca-Cola’s market leadership and industry-leading brands provide an exceptional competitive

advantage and in turn enhance its bargaining power (Datamonitor, 2011). The strong brand is one of the

core competencies of the Coca-Cola Company.

Coca-Cola owns and operates 29 principal beverage concentrates and/or syrup manufacturing plants

located throughout the world. In addition, it has a partial or controlling ownership interest in 118 principal

beverage bottling and canning plants located globally. The company also owns bottled water production

and still beverage facilities, as well as a facility that manufactures juice concentrates. The company's large

scale of operation allows it to feed upcoming markets with relative ease and enhances its revenue

generating capacity. It is hard to enter into a new market and gain market share. However, the strong

brand of Coca Cola makes an enormous competitory advantage. Coca-Cola has large quantity of loyalty

customers, Coca-Cola can shorten the clip to come in the market and easy derive a larger market portion

in new markets.

Besides, the unique formula of Coca Cola is one of its core competencies. This belongs to Coca-

Cola's unique basic resources, and it is also the prerequisite for the existence and development of Coca-

Cola. Coca-Cola's core competence cannot be separated from its mysterious formula, which has been kept

for 120 years since 1886 in Atlanta, the United States. As of 2000, less than 10 people knew the secret of

Coca-Cola, and Coca-Cola has been providing partners with semi-finished products in trade. The licensed

manufacturer only can get the technology and method to make Coca-Cola's product, not the recipe.

Legend of Coca-Cola recipes has also been widely circulated.

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Competitive Advantages

The four criteria test shown in Figure 3 is used to determine whether or not the resources and

capabilities of Coca-Cola are core competencies and can be a source of competitive advantage.

Four Criteria Test for Sustainable Competitive Advantage

Resource Valuable Rare Costly Non- Competitive Performance

Or to substitutable Consequences Implications

Capability Imitate

Brand Image Yes Yes Yes No Competitive Average

Parity returns

Distribution Yes No No No Competitive Avg. returns

Parity

Innovation Yes No Yes Yes Sustainable Above-avg.

Competitive returns
advantage

Product & Yes No No No Competitive Avg. returns

service quality Parity

marketing Yes No No No Sustainable Above-avg.

Competitive returns
Advantage
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Chart Interpretation:

Source from Interbrand

The brand image of Coca is very valuable. There could be hardly any person around the world that

hasn't heard the name of Coca Cola. Ever since it beginning as world's leading name in cold drinks, Coca

Cola has created a strong brand image irrespective of age, sex and geographical locations. Millions of

people around the world would like to choose Coca-Cola as the first choice of soft drink. According to

Samedi (2012), “Brand image is an important factor influencing Coca Cola sales. The brand has the

privilege to be known all around the world as they have built their image on a universal value, happiness.

The brand is perceived by consumers as a part of daily life and of their life style. Coke is this globalized

product that has the same taste customers are looking for, and which give the same pleasure of

refreshment during break together.” Therefore, the Coca has a significant brand value. However, because

there are many soft drink company exist in the market, it can be substitute by other companies such as

Pepsi and Dr.Pepper. And due to the valuable brand image, the Coca has an average returns in

performance implications.
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Due to the scale of the Coca, the distribution system has numerous legal and managerial departments

and sections, all independent of each other, and it does not own or control all of it bottling partners

worldwide. There is a chart shows how Coca-Cola distribute products to the market.

Resource from wordpress

From the chart, the company first authorize the bottler company to produce the bottle Coca, then

it distribute products to different retailers such as supermarket and grocery, and at last, these retailers sell

products to consumers. In this system, it increased the value of the company but it is not rare, because

there are many retailers exist in the market. In addition, it is not hard to imitate the process and can be

substituted easily. However, the firms distribution system is one of the most well planned and executed

compared to all other drinks of the same category. It has such an impact on consumers and is so

successful that even wholesalers and distributers need the product for their business’ success (Lucius and

Sophia, 2015).

The innovation of the Coca-Cola is important. Because of intense competition, the company

need the new product to increase the profit. Innovation at Coca-Cola includes far more than new
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beverages. Each year, the company develops, tests and launches breakthrough packaging, equipment,

merchandising, distribution models, and programs that enhance and refresh both its business and the local

communities it serves around the world (Journey, 2017). And because of the innovation, the company can

satisfy customers and increase the value. Due to there are many competitors in the market, so the

innovation is not rare. However, as different companies have different technologies, so it is costly to

imitate and hard to substitute.

The company has a strict request about the product & service quality, according to the principle

of company, the global nature of their business requires that the Coca-Cola system has the highest

standards and processes to ensure consistent quality across their entire value chain – from concentrate

production to bottling and product delivery (Coca-Cola, 2012). And due to the strict request, the company

manage the service under the Coca-Cola Operating Requirements, and this system help identify and

mitigate risks and drive improvements. And based on the request, it will increase the value for the

company. However, it is not difficult for other companies to provide good quality to customers, so it is

not rare and costly to imitate. And for the system, it can be substituted at any time because the industry is

developing rapidly. In order to obtain more profits, the company should change their management

frequently.

Because of the intense competition in the industry, the company need an efficiency marketing

strategy. Therefore, Coca-Cola announced that for the first time, all Coke Trademark brands will be

united in one global creative campaign: “Taste the Feeling.” This new marketing strategy will bring to life

the idea that drinking a Coca-Cola – any Coca-Cola – is a simple pleasure that makes everyday moments

more special. While Coke’s award-winning “Open Happiness” campaign leaned heavily on what the

brand stands for over the last seven years, “Taste the Feeling” will feature universal storytelling with the

product at the heart to reflect both the functional and emotional aspects of the Coca-Cola experience (Jay,

2016). And with the new strategy, the company can increase the profits and sales. However, the

marketing strategy for Coca is not rare and hard to substitute, for example, the current marketing strategy
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adopted by PepsiCo Inc. is definitely one that caters to its global standing. Since Pepsi came out at a time

when Coke or Coca Cola already had a head start in the market, its market strategy and business plan

began with differentiation - an attempt to establish its product as one that is unique in taste and quality (

Essays, 2013). Therefore, different beverage companies have different marketing strategies. And the

marketing strategy of Coca-Cola has a sustainable competitive advantage in the industry.

Introduction

The main purpose of this report is to understand the value chain analysis of Coca Cola. The report

will be explaining all the different aspects which are involved in value chain analysis of coca-cola that are

given below:

Value Chain Analysis

Value chain analysis is actually a tool which is used to analyze the internal activities of the

organization. This tool is a strategy tool which is used by all organizations. The main purpose of the

strategy tool is to identify that which activity of the organization is valued most and which activity of the

organization should be improved in order to achieve a competitive advantage. Value chain analysis is also

said to an Analytical Framework that helps in identifying and recognizing the business activity which can

create or establish a competitive advantage along with a value to the business. The concept of value chain

analysis can be better understood with the help of an analytical Framework diagram that is represented

below:
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About Coca-cola:

Coca Cola is a carbonated soft drink manufacturing company which was invented in late 19th

century. the company produces concentrate which is sold to a licensed bottler of Coca-Cola across the

entire world. In the entire world, Coca-Cola is largest manufacturers and producers of beverages. The

value chain analysis of Coca Cola are explained in detail further.

Inbound Logistic:

Water is the most important and essential ingredient for all the products which are manufactured by

the company Coca-Cola. There are many significant challenges which are faced by Coca-Cola

occasionally mostly in assessing this specific raw material. Company is using corn syrup which is of high

fructose extensively and this raw material is usually purchased from the suppliers that are based in United

States and different other countries and import that stuff delivered with the help of trucks. There are

many other ingredients that are equally important to the company but are sourced internationally. For
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example, orange juice as the concentrate of the orange juice is directly source from Southern hemisphere

specifically Brazil and Florida. For the purchase of international inbound logistics, they are facilitated

with the help of trucks and ships. The diversity is valued by Coca-Cola among its suppliers (Dudovskiy,

2015). In the year 2013, around 952 million dollars were spent on the diversified suppliers which was

increased by 14.8% as compared do the expense utilized in the year 2012.

Operations:

The Coca-Cola company has many different operational segments and are operating into 7 important

groups. The 7 groups of company include:

 North America

 Latin America

 Africa and Eurasia

 Asia Pacific

 Europe

 Corporate

 Bottling Investments

Coca-Cola company is not a single entity from the managerial or legal perspective. The company is

mainly manufacturing and selling concentrates, syrups, bases of beverages to its partners of bottling that

helps in maintaining the ownership of the brand and also applies and develops new marketing

strategies. The bottling partners or the entities which do not belong to the Coca-Cola Company does the

manufacturing, merchandising and packaging and also help in distributing the final product to their

customers and its vending partners (Pratap, 2017).

Even the coca-cola company also follow the operating cycle for their production. There are various

segments keep in mind while doing operations like the company manages the raw material and forward it
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through work in progress where the water is mixed with the sugar, syrup and carbon dioxide and get its

form

The company also follows the cyclic inventory in their supply chain management it involves

inventory which typically moves faster in the supply chain management and also known as cycle stock.

This inventory is typically used in the situation when the demand of product is usually high. The products

are typically moves to the suppliers or manufacturers and ultimately reach to the customers. The demands

for these kinds of products are usually high and management considers these products on a serious note as

these products bring efficiency in the overall economic value of the organization. The major examples of

these products involve Coca-cola, sprite whose demand is typically and relevantly high.

Outbound Logistic:

The company is selling its products in around 200 countries across the world and justifiably claimed

to make its operations as World's largest distribution system of beverages. The distribution channels

which is used by the company consists of different operations like distribution operations that are

operated and are controlled by the company, independent wholesalers, distributors, bottling partners and

retailers. There are around five biggest bottling partners that account for around 33% of the total unit

volume sales in the year 2014. Furthermore, the outbound logistics of company are managed through a

manual distribution system that is across Africa with more than 2500 manual distribution businesses that

are independent and are employing 11000 individuals (Company, 2016). Under given are the top five

bottlers of the company:

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Independent Partners of Bottling Areas that are covered

Coca-Cola HBC AG Austria, Belarus, Czech Republic,

Greece, Croatia, Bulgaria, Cyprus,

Lithuania, Montenegro, Poland,

Republic of Ireland, Nigeria, Romania,

Serbia, Ukraine, Switzerland, Slovenia,

Estonia, the Former Yugoslav Republic

of Macedonia, Romania, Italy.

New CCE Continental France, Monaco, Belgium,

Norway, Netherlands, Great Britain,

Sweden, Luxembourg.

Swire Beverages Taiwan, Seven provinces in the

mainland, China, along with territories

in 11 states in the western US.

Arca Continental, S.A.B. de C.V. Northern Argentina, Ecuador, Western

Mexico

Coca-Cola FEMSA, S.A.B. de C.V. Costa Rica, Panama, Western

Argentina, Brazil, Venezuela, Panama,

Guatemala, Northeast parts of Mexico,

Colombia.
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Sales and Marketing:

The beverages sales which is belonging to the portfolio of Coca-Cola amounted around 28.6 billion-

unit cases in the year 2014, 28.2 billion-unit cases in the year 2013 and 27.7 million-unit cases in the year

2012. The sales volume in the home country of the company that is United States accounted for around

19% of the total volume of sales in the year 2014 (Bhasin, 2017). There were 31% of the total sales which

was occurred outside the United States specifically in Japan, Mexico, Brazil and China.

The marketing strategy which is applied by Coca-Cola is Integrated Marketing strategy that utilizes

sales promotion events and experiences, advertisement and elements of public relation of the market mix

in an amalgamated manner. The marketing message of the brand is linked with enjoying life, being happy

and leading a Lifestyle that is very active (Trefis, 2016). The largest states of marketing of Coca-Cola

company are directed by amalgamating four most popular drinks that include Coca-Cola, Coca Cola zero,

Coca Cola life and diet coke into the concept of one brand, this helps in providing more choices to the

segment of the target customers.

Services:

The customer service practices of the Coca-Cola company are maintained with the help of online

chat with the agent that is virtual in official website of the company and is dedicated to its service phone

of the customers (Harrison, 2017). The company's website has a feature of comprehensive FAQs that

mainly covers all the major and important aspects of their products in a very descriptive manner. The

website of the company also addresses many different ranges of the rumors that are directly or indirectly

related to the brand of the company.

Conclusion:

The report was mainly about the value chain analysis which is conducted by Coca-Cola

company. There are many important things which are included in the value chain analysis. The main
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function of value chain analysis is to establish the factors that can create value for the company and also

help in building or achieving the competitive advantage. Some of the most important aspects of value

chain analysis is the inbound logistics, outbound logistics, operations of the company, marketing and

sales service provided by the company and other services which are privatizing the brand of the

company. The report has explained all of these aspects in a detailed manner so that one can have a better

understanding of value chain analysis that is conducted by Coca-Cola company.

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The Coca Cola Pepsi Co Monster Beverage

Company

Key Success Weight Rating Weighted Rating Weighted Rating Weighted

Factors Score Score Score

Financial Position 0.10 4 0.4 4 0.4 3 0.3

Advertising 0.12 4 0.48 4 0.48 3 0.36

Market Share 0.12 4 0.48 4 0.48 2 0.24

Brand Image 0.10 4 0.4 3 0.3 3 0.3

Customer Loyalty 0.10 3 0.3 3 0.3 4 0.4

Product Quality 0.10 3 0.3 3 0.3 3 0.3

Product Range 0.08 3 0.24 4 0.32 2 0.16

Distribution 0.10 4 0.4 3 0.3 2 0.2

Price Competition 0.08 3 0.24 4 0.32 2 0.16

Geographical 0.10 4 0.4 3 0.3 3 0.3

Expansion

Total 1 3.64 3.5 2.72

Weighted Competitive Strength Assessment

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The Weighted Competitive Strength Assessment compares The Coca Cola Company with its

closest competitors using some of the key success factors and strength measures in the Beverages industry

business. The following is the weighted competitive strength assessment charts; this lists the strength

measures, weights, and the overall scores.

As from charts above, is to be said that Coca Cola is still the beverage industry leader. The Coca-Cola

Company greatest strength are ‘Brand Image’ – as nominated number 5 for the world most valuable brand

with $56,4 billion brand valuation. (Badenhausen, 2017). Then the following are ‘Financial Position’,

‘Advertising’, ‘Market Share’, ‘Distribution’, and ‘Geographical Expansion’. Though the competition in

industry beverage is massive, The Coca Cola Company still can maintain its largest market share with the

market cap $182.9 billion and sold for more than 200 countries. (Forbes,2017)

Pepsi company leads in ‘Product Range’, due to Pepsi’s smart move in 1990s-2000s to diversify

their product in food industry by having big names in their brand portfolio such as Lays, Quaker Oats,

Tropicana, etc. In fact, from Pepsi Co sales $62.8 billion are 52% from food and 48% from beverages.

(Pepsi Co, 2017). It is true for what people said that Pepsi Co is a beverage company that changing to

food and snacks company.

Monster beverages leads in ‘Customer Loyalty’. Despite having big competition in energy drink

industry with its biggest competitors, Monster still be able to maintain their market share at 39%

(Compared to Red Bull 43%). (Mitchell, 2015). That all is due to its smart moves to target in very

specific market which are mostly extreme sports like BMX, Moto GP, Snowboarding, MMA. It creates

brand resonance from those customers in some way to always have Monster energy drink whenever they

do extreme sports. Some people say it is like Monster “Cult”.

Though the Coca-Cola Company is the leader in beverage industry with owning 4 biggest

beverage brand such Coke, Diet Coke, Sprite, and Fanta. The Coca-Cola Company could improve and

expand in ‘Product Range’, which means entering the food industry just like what their competitor Pepsi
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Co did. Pepsi Co beat The Coca Cola Company in sales for the first time in 2009 and keep going on until

today which Pepsi co has $62,7 billion compared to The Coca Cola Company $41,8 billion. With addition

the Sugar-Sweetened Beverage industry that keep going down with the trend that changing to healthier

beverage options, it seems logical for The Coca Cola Company to diversify their portfolio to food

industry.

Overall, The Coca-Cola Company is the largest and leading beverage company with more than

500 brands and sold more than 200 countries. However, The Coca-Cola Company should have broader

brand portfolio in order to maintain and increase their market share.

SWOT Analysis

The Charts above will identify overall strength, weakness, opportunities, and threats of The Coca-

Cola Company.

Strength Weakness

 Brand Equity  Massive competition in

 Largest market share beverage industry

 Strong & Efficient  Low product diversification

distribution channel whereas Pepsi made smart

 Strong Marketing & moves and diversified into

Advertising Strategy food segment with products

 Global Presence with more like Lays and Quaker oats.

than 200 countries

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 Customer Loyalty

Opportunities Threats

 Diversify its brand portfolio  Consumer behavior that

into food segments changing to healthy

 Market their “unknown” beverages instead of soda

brands to increase market beverages.

share in beverage industry  Indirect competition

because of behavioral

changing with competitor

like Starbucks and

Tropicana
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Financial analysis

PROFITIBILITY RATIOS 2014 2015 2016

GROSS PROFIT MARGIN 61.1 60.5 60.7

OPERATING PROFIT MARGIN 20.3 21.7 19.4

NET PROFIT MARGIN 15.4 16.6 15.6

RETURN ON TOTAL ASSET 7.7 8.2 7.5

RETURN ON EQUITY 23.4 28.8 28.3

LIQUIDITY RATIOS 2014 2015 2016

CURRENT RATIO 1.1 1.2 1.3

QUICK RATIO 0.9 1.2 1.3

OPERATING CASH FLOW RATIO 10.3 11.2 10.9

WORKING CAPITAL 75.2 6.9 5.6

LAVERAGE RATIOS 2014 2015 2016

DEBT TO TOTAL ASSET 0.6 1.1 1.3

DEBT TO EQUITY 2 2.5 2.8

LONG TERM DEBT TO EQUITY 0.6 1.1 1.3

INTEREST COVERAGE 12.5 12.2 19.2

ACTIVITY RATIOS 2014 2015 2016

TOTAL ASSET TURNOVER 0.5 0.5 0.5

FIXED ASSET TURNOVER 3.1 1.3 3.9

RECEIVABLES TURNOVER 3.71 3.46 3.4

DAYS SALES OUTSTANDINGS 5.25 4.18 4.13

The above is the financial analysis of the Coca-Cola company.

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