Coca Cola Financial Analysis Essay

6376 Words Sep 9th, 2014 26 Pages
Financial Analysis Project – Final Paper
Jennifer M. Harding
Cardinal Stritch University
MBA 521 August 28th, 2014

Purpose of Analysis
All managers need to understand where value comes from in their firm. The purpose of this analysis is to identify the financial strategy and performance of this particular publicly traded company. The process of understanding the risk and profitability of a company by analyzing reported financial info, especially annual and quarterly reports are vital to identifying the company’s overall financial performance. I wanted to analyze Coca Cola because the company has so much history and is one of the most recognizable brands in the world. I have always enjoyed researching food and beverage companies
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Major Operations
The Coca-Cola system is not a single entity from a legal or managerial perspective, and the company does not own or control all of their bottling partners. While many view the company as simply "Coca-Cola," their system operates through multiple local channels. The Company manufactures and sells concentrates, beverage bases and syrups to bottling operations, owns the brands and is responsible for consumer brand marketing initiatives. Coca Cola’s bottling partners manufacture, package, merchandise and distribute the final branded beverages to Coca Cola customers and vending partners, who then sell their products to consumers (Wikipedia, 2).
All bottling partners work closely with customers (grocery stores, restaurants, street vendors, convenience stores, movie theaters and amusement parks, etc.) to execute localized strategies developed in partnership with Coca Cola. Customers then sell their products to consumers at a rate of more than 1.9 billion servings a day. In January 2006, company-owned bottling operations were brought together to form the Bottling Investments operating group, now the second-largest bottling partner in the Coca-Cola system in terms of unit case volume.
Distribution
Coca-Cola’s portfolio features 17 billion-dollar brands including Diet Coke, Fanta, Sprite, Coca-Cola Zero, Vitaminwater, Powerade, Minute Maid, Simply, Georgia and Del