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Coca Cola And Debt Research Paper

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...

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…

Sources used in this document:
References

Coca Cola Company. (2016). About Our Suppliers. Retrieved from: http://www.coca-colacompany.com/our-company/workplace-overview/suppliers/suppliers

Coca Cola Company. (2016). Form 10-K. United States Securities and Exchange Commission.

Coca Cola Company. (2016). Supplier and Customer Partnerships. Retrieved from: http://www.coca-colacompany.com/our-company/suppliers/supplier-and-customer-partnerships

Coca Cola. (2015). Form 10-K. United States Securities and Exchange Commission.
Coca Cola. (2016). Board of Directors. Retrieved from: http://www.coca-colacompany.com/our-company/board-of-directors
Hoovers. (2016). THE COCA-COLA COMPANY Competition. Retrieved from: http://www.hoovers.com/company-information/cs/competition.the_coca-cola_company.3f8a006eaf87d773.html
Nasdaq. (2014). Coke Vs. Pepsi: By the Numbers. Retrieved from: http://www.nasdaq.com/article/coke-vs.-pepsi-by-the-numbers-cm337909
Nickolas, S. (2016). Analyzing Coca Cola's Debt Ratios in 2016. Investopedia. Retrieved from: http://www.investopedia.com/articles/active-trading/022316/analyzing-cocacolas-debt-ratios-2016-ko.asp
Tripod. (2016). Industry Analysis. Retrieved from: http://coca-cola-remodel.tripod.com/id22.html
Yahoo Finance. (2016). The Coca-Cola Company (KO): Profile. Retrieved from: https://finance.yahoo.com/quote/KO/profile?p=KO
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