Coca Cola and Debt

Coca Cola Company is the biggest beverage company in the world. The company faces major competition and the top three competitors include Pepsico, Inc., Nestle S.A. and Dr. Pepper Snapple Group, Inc. The weaknesses of the company encompasses its substantial dependency on carbonates and the adverse perception of coca cola products being filled with high sugar content and therefore deemed unhealthy. The prospects that the company should seize encompasses the rise in growth and development of emerging markets and also the increase in need for healthier drinking options.

The company's recent performance has been impressive as the company has generated increases in net income. However, the company should improve the sales revenue generated as this amount has been dwindling in the past three years. The company relies on debt to finance its assets as its debt to equity ratio stands at 188%. Introduction The history of Coca-Cola started out in the year 1886 through the discovery of a unique tasting soft drink by the original inventor Dr. John Pemberton.

However, at the time, Pemberton lacked comprehensive marketing and advertising skills and knowledge. At this point, came in Frank Robinson who was responsible for the registration of Coca Cola's formula with the patent company, designed the logo of the company as well as developed the motto "The pause that refreshes." However, soon after, Pemberton died, failing to see the success of his invention. Subsequent to his demise, Asa Griggs Candler came to be the sole owner of coca cola.

It is Candler that was responsible for the growth of the company as he brought forth innovative marketing strategies to Coca Cola. These included free coupons in addition to the placement of the coca cola logo on posters, calendars and notebooks. The main objective was to have consumers drink the beverage and come back for more as well as reach a wider consumer base. In the present day, coca cola is ranked as one of the best companies to work and coca cola being deemed the top beverage.

It is the biggest beverage company in the world. What is more, the company has altered the original formula and has introduced new beverages in the market such as diet coke, sprite and coke zero (World of Coca Cola, 2016). The purpose of this paper is to undertake a comprehensive analysis of Coca Cola, with respect to all aspects.

Evaluation of Various External Stakeholders Competitors The nonalcoholic beverage sector of the marketable beverage industry is exceedingly competitive, being made up of several corporations extending from small or developing to significantly large and well established. Coca-Cola, in spite of being the top beverage firm, faces competition in the market from other companies, rivaling its products. The top three competitors include Pepsico, Inc., Nestle S.A. and Dr. Pepper Snapple Group, Inc. (Hoovers, 2016).

Other significant competitors consist of, but are not limited to, Groupe Danone, Mondele-z International, Inc., Kraft Foods Group, Inc., Suntory Beverage & Food Limited and the Unilever Group (Coca Cola, 2015). Industry Coca Cola Company operates in the beverage industry. In particular, its business operations are encompassed in the significantly competitive nonalcoholic beverage segment of the commercial beverage industry (Coca Cola, 2015). This takes into account the soft drink industry, the bottled water industry, and the tea or coffee industry.

In the contemporary, Coca Cola controls a 42% market share in the soft drink industry as compared to 30% of Pepsi (Nasdaq, 2014). With respect to bottled water, there are 12 different brands under the Coca-Cola Company, the most prevalent one in the market being Dasani. Owing to increasing trends for leading healthier lifestyles, this industry has experienced a great deal of progressive growth. Lastly, with regard to the tea/ coffee industry, Coca Cola offers 14 different products under its brand, the most prevalent one being Nestea (Tripod, 2016).

Vendors The vendors of the company play a vital role in Coca Cola Company's success as they aid in refreshing the world beyond 1.7 billion times each day, by delivering the required products and services for the business operations. The vendors provide the supply chain with materials, encompassing drink constituents, packaging, machinery, goods, and services. Coca Cola's vendors are expected to conduct business in an ethical way and also be in compliance with all applicable laws and regulations.

This is with respect to the company's Code of Business Conduct for Suppliers, which delineates the standards in the aspects of conflict of interest, information safety and business and financial records (Coca Cola Company, 2016). Customers At Coca Cola, consumers are at the heart of everything that they undertake and go to great lengths to attain consumer satisfaction. The consumers of the company consist of major international chains of retailers and restaurants and small independent businesses. The company works in tandem with its customers alike to generate mutual benefit.

In conjunction with the company's bottling partners, Coca Cola is able to serve its consumers through account management teams, offering services and support custom-made to their necessities (Coca Cola Company, 2016). Government Entities Coca Cola Company has affiliations with government administrations and entities. Coca Cola is a company that has business operations across the globe. Therefore, the firm's business necessitates compliance with a range of regulatory requirements across different nations.

In addition, the company also works in partnership with governments for different positive causes, such as protection of the environment (Coca Cola Company, 2016). Communities Coca Cola Company works hard to give back to the community. From the time of its establishment, the company has given back over $800 million to improve the sustainability levels of local communities across the world. The three priority areas of community development include economic empowerment and entrepreneurship of women, youth welfare and development and increase in access to education.

There is also the accessibility to clean water and conserving water sources (Coca Cola Company, 2016). Internal Stakeholders Shareholders The major shareholders of Coca Cola Company include institutions and mutual funds. Insiders hold the rest of the proportion, which includes the personnel, executives and founders of the company. Board of Directors The following are members of Coca Cola's Board of Directors. 1. Herbert A. Allen - President, Chief Executive Officer and Director, Allen & Company Incorporated 2. Ronald W. Allen - Former Chairman of the Board, President and Chief Executive Officer, Aaron's Inc.

and Delta Airlines, Inc. 3. Marc Bolland - Head of European Portfolio Operations, The Blackstone Group L.P. 4. Ana Botin - Executive Chairman, Banco Santander, S.A. 5. Howard G. Buffett - President, Buffett Farms; Chairman and Chief Executive Officer, Howard G. Buffett Foundation 6. Richard M. Daley - Executive Chairman, Tur Partners LLC; Of Counsel, Katten Muchin Rosenman LLP 7. Barry Diller - Chairman of the Board and Senior Executive, IAC/Interactivecorp and Expedia, Inc. 8. Helene D. Gayle - Chief Executive Officer, Mckinsey Social Initiative 9. Alexis M.

Herman - Chair and Chief Executive Officer, New Ventures LLC 10. Muhtar Kent - Chairman of the Board and Chief Executive Officer, The Coca-Cola Company 11. Bobby Kotick - President, Chief Executive Officer and Director, Activision Blizzard, Inc. 12. Maria Elena Lagomasino - Chief Executive Officer and Managing Partner, WE Family Offices 13. Sam Nunn - Co-Chairman and Chief Executive Officer, Nuclear Threat Initiative (NTI) 14. David B. Weinberg - Chairman of the Board and Chief Executive Officer, Judd Enterprises, Inc. (Coca Cola, 2016).

Management The key executive management team of Coca Cola consist of the following individuals. 1. Mr. Muhtar Kent - Chairman, Chief Exec. Officer and Chairman of Exec. Committee 2. Mr. James Robert B. Quincey - Pres and Chief Operating Officer 3. Ms. Kathy N. Waller - Chief Financial Officer and Exec. VP 4. Mr. James Alexander M. Douglas Jr. Exec. VP and Pres of Coca-Cola North America 5. Mr. Irialfinan - Exec. VP and Pres of Bottling Investments Group (Yahoo Finance, 2016). Employees In the contemporary, over 700,000 associates form the Coca Cola system.

The company values the distinctive talents and conceptions presented by each of them to realize the objectives set by the company in its 2020 vision. The company encourages open communication and this is done through occasional engagement with employees across the globe via dialogue. In addition, the company endeavors to ensure all personnel are happy, healthy and treated in a just and respectful way (Coca Cola Company, 2016). Comprehensive SWOT analysis (Company's ability to improve its competitive advantage) Strengths 1.

Leading Brands With High Levels Of Consumer Recognition And Approval Coca Cola Company is the biggest beverage company in the world. It is made up of leading brands such as Coke, Sprite and Dasani that are acknowledged across the world and approved by consumers. 2. Global Network Of Bottlers And Distributors Of Company Products A key strong suit of the company is that it has a worldwide network and supply chain of bottlers and distributors of its products.

This enables the company to not only reach its wide-ranging consumer base, but deliver such products if and when needed at the fitting time 3. Refined Marketing Capabilities The marketing and advertising proficiencies of Coca Cola are top notch. This enables the company to have a competitive edge over its rivals and therefore increase its sales and also appeal to more consumers on products. 4.

Talented Group Of Committed And Devoted Associates Another forte of Coca Cola Company is that it has associates that are capable, skilled and committed to working with the company and taking it to its highest levels of success (Coca Cola Company, 2016). Weaknesses 1. Reliance on Carbonates Despite the fact that the company has expanded its product portfolio in recent periods, it continues to largely rely on carbonates. Therefore, the downside is that it is susceptible to a downturn in this classification. 2.

Unhealthy Perception With the rise in consumer awareness for wellness and healthiness, the high sugar content contained within Coca Cola could be an issue for the company as the products are constantly deemed unhealthy. Therefore, the sales of the company might decline as more and more consumers pursue a healthy drinking option. Opportunities 1. Emerging Markets Emerging markets such as China, India, and Brazil present great prospects for retailing a great deal of products. This enables the company to expand its reach to a greater consumer base and generate more revenue.

Coca Cola ought to concentrate on retailing bottled water, juice drinks as well as carbonates. 2. Consumer Trends in Health and Wellness There is a growing and progressing trend of health and wellness amongst consumers. In the contemporary, as more and more consumers understand the significance of having proper diets and leading healthier lifestyles, there is an increase in demand for healthy drinking options such as diet coke. This presents a great opportunity for Coca Cola to come up with healthier products that will be appealing to consumers. Threats 1.

Intense Competition One of the key threats to Coca Cola is the intense level of competition. Pepsico continues to be a significant rival to Coca Cola with respect to soft drinks. Having pinched a stride in terms of bottler acquisitions, Pepsico has conceivably a vital competitive advantage in terms of repositioning itself in a rejuvenated marketplace. 2.

Concentrated Sector Another threat faced by the company takes into account its operation in a concentrated retail segment with powerful buyers capable of freely selecting amongst its products, those of rival beverage suppliers and individual vendors' own supplies or.