Coca-cola company - Coca-Cola Essay Example
Coca cola company had a centralized organization structure which later became decentralized when Doug Daft took over as chairman and C.E.O - Coca-cola company introduction. of Coca cola after Doug ivester.
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During the centralized system everyone was in the main branch in Atlanta. All businesses and foreign affairs were centralized out of the Atlanta building.
90%of coca cola businesses is in hand of bottling companies and this increases balance of power and good relations is maintained to make it successful
The company advertises to its customers to make them know about their products which include soft drinks and also employs high level management in all parts of the world (www.pages.stern.nyu.edu)
Coca Cola Company is involved in discovering new markets which bring good returns.
It is involved in branding, market segmentation and advertising. It also sponsors football, Olympics and swimming. It is involved in community activities and charity work.
Coca cola entered foreign markets through franchising, licensing and exporting. Coca cola has been expanding over decades with 30 new drinks being introduced.
Coca cola improves quality of life in the community through health services, education and giving advice on business to be carried out.
Two events or projects
Current events or project Coca Cola Company is involved in is water project to harvest rain water which can be used in the manufacturing of coke drinks.
In India they have several water sheds and world water day on 22nd march organizes a festival of water on 24th to make people know the importance of rain water harvesting across India.
The sources of funds for the water project include profit from sales which s the profit that is ploughed back to the company when the company gets its proceeds from sales reduces all expenses involved in production the remaining net profit can be used to finance the water project.
This source of finance is the most appropriate because the company is able to get huge profits each year therefore there will be no financial deficit in financing the water project.
When stock is sold the company makes sure that the selling price is always higher than the cost price hence increasing the amount of profits to be generated (www.faculty.fugua.duke.edu).
The non current event or project Coca Cola Company is involved in is financing business project in areas with population under 25000. when businesses are financed, the area grows and population increases leading to large number of customers. Those who are able to operate business but have no money are helped to start and operate business by the coca cola company through their funding.
The company gets money from donations from well wishers who give out money willingly without asking for refund.
The source is most appropriate because people to offer donations are available, able and willing to surrender their funds to enable the businesses to be started and expand.
Other sources of funds include money from sale of stock produced by the company. When drinks re sold the income generated are used to finance the water project.
The company can also borrow at low interest rate from banks or other lending institutions.
The company can also issue bond which is debt equity and be able to generate income to finance the project (Bower, 1990).
Joseph L Bower, Managing the Resource Allocation Process, Harvard Business School Press, 1990.