Analysis of Coca Cola CSR
As per Coca Cola CSR, the goal of the company is to give back a minimum of 1 percent of the annual income. Coca Cola CSR has come up with different engagements and programs related to corporate social responsibility. Some of the categories of Coca Cola CSR include educating & empowering workers, health & safety, labor & human rights, and Environment. With the help of Coca Cola CSR, the company is engaged in several activities that aim at helping the residents of a certain country to have a good life. In addition to this, Coca Cola CSR works to offer services that are not provided by the government.
Coca Cola Foundation is a part of Coca Cola CSR that works to develop and maintain sustainable and vibrant communities for making a better society. It helps in creation of jobs for people. Some of the areas served by Coca Cola CSR are ensuring health standards, recycling, education and clean water. It helps poor children in completing their schooling so that they do not drop out. These initiatives are carried out by the Coca Cola Company under Coca Cola CSR. Coca Cola CSR has invested a huge amount in education as it understands that assisting students in pursuing their dreams is an important aspect of socio-economic development.
The primary goal of Coca Cola CSR is related to reducing the number of school drop-outs, enhancing reading and promoting literacy within communities, building educational institutions and offering scholarships. Coca Cola CSR has offered Coca Cola scholarship in the US since 1986. With the help of Coca Cola CSR, over 5,000 scholars have been able to benefit from this scheme. In addition to this, Coca Cola CSR is also responsible for ensuring good health of the people. For this reason, Coca Cola CSR works with health officers for educating residents about the health issues related to diseases such as HIV/AIDS, hepatitis, tuberculosis and polio. Coca Cola CSR aims to give more funds to the foundation for spreading the initiatives. The mission of Coca Cola CSR is to assist the needy who cannot get help otherwise.
When any natural disaster occurs, Coca Cola CSR ensures that the company practices relief & recovery missions for saving lives of the people. It offers vehicles, volunteer services and bottled water through Coca Cola CSR. In addition to this, Coca Cola CSR is working to ensure that the natural resources are conserved. This is made easy with help of coca cola distribution channels. It is due to the coca cola distribution channels only that the company is able to reach out to all those in need. The company is working hard to give back to the society in order to fulfill the goals set by its CSR. It offers a report to show the advancements the company has made in the field of corporate social responsibility. As its beverages is also related to certain heath issues in both adults and children, the company has to undertake activities that improve its image in the minds of consumers.
Through the Coca Cola distribution channels
Coca Cola distribution channels make up a system that is effectively planned and implemented. The impact of Coca Cola distribution channels on the consumers is such that even distributors and wholesalers demand product for their profits. The image of Coca Cola distribution channels in the minds of consumers is important for wholesalers and retailers. Also, Coca Cola distribution channels have been successful as they have high visibility to distribute products across the world. Coca Cola distribution channels are highly important for a company as they attract convenience of customers. Thus, Coca Cola distribution channels of a company show its ability to market its products. Coca Cola distribution channels are made up of two systems, namely, direct Coca Cola distribution channels and indirect Coca Cola distribution channels. In relation to direct channel, product is distributed to the consumer directly from the manufacturer. On the other hand, indirect channel uses intermediaries for the distribution of products.
The products are sold by the company through canning and bottling operations. With the help of Coca Cola distribution channels, its products reach the wholesalers first. Then, Coca Cola distribution channels allow wholesalers to move the product to the retailers. Lastly, the customers can buy the product from the shops of retailers. If Coca Cola distribution channels are ineffective, it could result in its products not accessible in the shops. This can reduce the level of appreciation and enthusiasm in consumers for the brand. Thus, it is important to work on Coca Cola distribution channels so that the product is easily available for a customer. In addition to this, there is a need for innovation in Coca Cola distribution channels. One of the examples of innovative Coca Cola distribution channels is vending machines, Coke Hug Machine.
It is known that the company runs its operations internationally. However, Coca Cola distribution channels make use of different local channels. The system of Coca Cola distribution channels has several managerial and legal sections and departments, which are functioning independently. This is observed to be a vibrant business system. Coca Cola distribution channels are available in over 200 nations across the world, comprising of The Coca Cola Company along with over 300 Coca Cola bottlers. With the bottling partners, Coca Cola distribution channels are operating the largest beverage distribution system of the world.
Coca Cola distribution channels work together to make up the Coca Cola system, which is an extensive network of more than 9 million vending machines and coolers, 200,000 vehicles and 848 plants. This system helps the company in manufacturing and distributing its products to consumers and customers across the world. Due to this only, the beverages of the company are consumed at 1.3 billion servings per day. Bottling partners are ranging from publicly traded businesses to family-owned operations. Even though the company makes investments in several bottling companies, it has a controlling ownership interest in only a few that means that most of the bottling companies operate independently.
Coca Cola financial analysis
Coca Cola financial analysis makes use of financial management analysis to include vertical analysis of some income statement items such as net income, EBIT and EBIDTA. For this purpose, Coca Cola financial analysis has assigned revenue to be the base. Also, Coca Cola financial analysis has conducted vertical analysis of some balance sheet elements such as stockholders equity, long term liability, current liability, total liability, plant asset, current asset and total asset.
Coca Cola financial analysis shows that the company is one of the biggest beverages companies in the world. In addition to this, Coca Cola financial analysis has revealed that the company owns top 4 out of 5 non-alcoholic beverages. As per Coca Cola financial analysis, the company owns a portfolio that is made of 3,500 products. Coca Cola financial analysis shows that the total worth of the portfolio is around $16 billion. For conducting the Coca Cola financial analysis, a period of 2009-2011 has been selected.
As per Coca Cola financial analysis, the company prefers debt financing and its return on equity is lesser in comparison to that of PepsiCo. Coca Cola financial analysis shows that it is because of the huge equity on the company’s balance sheet. Also, the trend of the company’s ROE is reduced by 3.05 percent. Coca Cola financial analysis reveals that the company performs well in respect to net income due to which the performance of ROA and PM is also good.
Coca Cola financial analysis made use of S&P bond rating reports for the evaluation of quality of the company. In 2011, the bond of the company was upgraded by S&P to A+. As per Coca Cola financial analysis, it is mainly because of the strong credit and operational quality of the company. This means that the company can easily raise debt capital asset at a low cost. Coca Cola financial analysis shows that the beta coefficient of the company’s stock is suitable for evaluating the relevant risk. As per Coca Cola financial analysis, the beta stock coefficient of The Coca Cola Company is 0.44, which is 0.34 for PepsiCo that is the main competitor of the company. Coca Cola financial analysis shows that the company is not risky. However, Coca Cola financial analysis asserts that the company is required to pay more for attracting stock investors.
As per the Coca Cola financial analysis, the cost of equity for the company is high while the cost of debt is low. This is mainly because of the fact that the company has high bond quality and high beta. Coca Cola financial analysis also shows that the Weighted Cost of Capital or WACC of the company is 7 percent. The analysis shows that the company is highly profitable while investing in the company is going to bring in profits for the investors. Coca Cola has grown to become one of the biggest beverages of the world and it is expanding to include more businesses in the future.
