Operations Management Of Food And Beverage Industry : Imporatance Of Financial Analysis

Research papers have educated that there are multiples of variables, which contribute into play varying degree of influence on the profitability of the organization. Therefore it is desirable for financial managers to gauge the prime variables exerting substantial influence on the profitability. Following two papers were referred to carry out this project, “An example of the use of financial ratio analysis: the case of Motorola” by H. W. Collier(2007), University of Wollongong.In this paper, they have demonstrated the use of actual financial data for financial ratio analysis. The objective is to show how to compute ratios for an actual company. This paper demonstrates the difficulties in applying the principles of financial ratio analysis when the data are not homogenous as is the case in textbook examples. Therefore in this paper, financial ratio analysis is complicated for companies that do not readily fall into a single industry. Motorola has 6 operating units that fall into several industries with two industries accounting for most of the sales- telecommunication and semi-conductor. However, a more relevant picture of the operating characteristics of Motorola is achieved by increasing the complexity of the analysis, that is, by comparing Motorola to both industries.“Financial ratio analysis as a determinant of profitability in Nigerian Pharmaceutical

One of the most important parts of a business is the financial management. Each and every other company always strives to have the best management when it comes to its finances. Most organizations have come up with plans and marketing strategies. This is due to the fact tat when companies finances are poorly managed then definitely the whole company is likely to be in trouble or even come down. The financial techniques and principles in most cases comprise of quite a number of aspect for instance those that we intend to look at in this paper-the financial reporting. This will basically comprise of the quality of data and information that the company produced to some of the various stakeholders. Other than that, the paper will also analyze the financial position and performance of the organization using accounting ratios. Another important aspect of financial principles is costing. This basically entails the cost of producing goods and services in the company and how it generally affects the overall performance of the company. The paper will also delve into how important costs in the pricing strategy of the business are. It will further come up with a costing and pricing system that can help the company improve. Last but not least, we focus on the company's budgets and budgetary control. Here there are very important areas that have to be looked into, for

The Coca-Cola Company is the largest manufacturer and marketer of nonalcoholic beverage in the world. The company produces finished product in cans and bottles. The bottlers then sell, distribute and merchandise the resulting Coca-Cola product to retail stores, vending machines, restaurants and food service distributors. Coca-Cola is the most popular and biggest-selling soft drink in history as well as the best-known product in the world. The Coca-Cola Company offers nearly 400 brands in over 200 countries. Throughout this

The two major companies that manufacture beverages are PepsiCo and the Cocoa-Cola Co. These two companies have been in competition for many years and both companies have a variety of choices when purchasing one of their beverages. These companies can be identified through their products such as; if a person were to buy a Pepsi the person would know it came from PepsiCo, and if someone were to buy a coke they would know it was from the Cocoa-Cola Co.

Ratio analysis is a tool brought by individuals used to evaluate analysis of information in the financial statements of a business. The ratio analysis forms an essential part of the financial analysis which is a vital part in the business planning. There are 3 different ways of assessing businesses performance and these are: solvency, profitability and performance. Ratio analysis assists managers to work out the production of the company by figuring the profitability ratios. Also, the management can evaluate their revenues to check if their productivity. Thus, probability ratios are helpful to the company in evaluating its performance based on current earning. By measuring the solvency ratio, the companies are able to keep an

In general there are 10 ratios that govern the finances of an organization. But, we have been given only three ratios though all the ratios are essential because they acquire nearly 90 percent of the information contained in the financial statements. These can be any but we have to choose the best three that certainly makes the difference. The major three ratios would be the operating margin, it is an essential ratio that deals with the organization’s profitability

Coca-Cola and Pepsi companies are the dominant players in the soft drinks industry (Yoffie, 2011). The two companies

Ratio analysis shows the correlation within certain figures of financial statements, like current assets and current liability, and is used for three types of company needs- within, intra- and inter-company. Association can be shown in proportion, rate, or percentage and can evaluate company’s liquidity, profitability, and solvency. Liquidity ratios show company’s ability to pay obligations and fulfill needs for cash; profitability ratios show wellbeing and success for the certain time period; and solvency ratios show company’s endurance over the years.

• explain operations as an organizational functional area; i.e. to present a list of the areas covered by the operations management function, the problems and decisions faced in these areas and the methods and models for approaching these problems;

Ratio analysis will be used to measure the profitability, liquidity and efficiency of the named business and to analyse the performance of the business using ratio analysis.

Food Inc. is a documentary that tries to teach the viewer about America’s food chain and how it came to exist in its current forum. The film uses a mix of facts and opinions from people who work in the food production industry. Food Inc. does interview workers who are both for and against the current method of food production but not for the purposes of portraying an unbiased film, it comes across as an insincere attempt. During the course of the film we are shown current methods and past practices of food production dealing with meat and vegetables.

Studies have shown that many people all over the world are unaware of where their food comes from. When an individual goes to consume a food product, he or she could be completely oblivious to the methods of manufacture, processing, packaging or transportation gone into the production of the food item. It is often said that ‘ignorance is bliss’ – perhaps this rings true in the case of food, its origins and its consumption as well. In such a scenario, eating well could seem like an unlikely prospect. The definition of ‘eating well’ in modern times seems to have gone from eating healthily, to eating ethically. The manner in which food is produced and consumed has changed more rapidly in the past fifty years than it has in the previous ten

Financial ratio analysis is a critical management tool that provides information on the organizational performance over a period of time. The management applies the ratios to check on the effectiveness of the strategies they employed. On the other hand, the owners and shareholders use the financial ratios to determine the effectiveness of the management in running the business. In addition the ratios can be applied to compare the company’s performance with its competitors. The financial ratios include current ratio, operating profit margin, return on assets, return on equity and debt to equity ratio.

Analyst, investors, and managers use complied information from several financial statements to compare the relative weaknesses and strengths of organizations. The use of ratios assist in linking the balance sheet, cash flow statement, and income statement to perform quantitative analysis. The ratios used by an organization differ dependent on the type of products or services offered. Choosing the correct ratio is essential in planning because certain ratios will assist in achieving the organization’s mission while others have no validity(1). Goals of an organization require effective financial management and effective planning. Ratios are tools used by organizations to discover trends and provide indicators that will measure

Coca Cola is the largest company of the non-alcoholic beverages industry, controlling about 40% of the industry, followed by Pepsi with 20% control (Maverick 2015). Both companies are fully international, with a presence in over 200 countries, and are composed of numerous brands. Coca Cola, for example, owns about 500 brands, although the largest part of its profits stems from 21 of these brands. Overall, in 2016, the global non-alcoholic beverages industry was valued at $967.3 billion (Grand View Research 2017). Other key players in the industry include Nestle, Kraft Heinz Company, and the Pepper Snapple Group.