Coca-Cola Company is one of the biggest and most dominant non-alcohol beverages producer in the world. The company sells its products in over 200 countries. The company has been operational since 1886, when it was created by John S. Pemberton, Atlanta pharmacist. The Coca-Cola signature beverage sold an average of nine drink daily at his pharmacy in its first year. It quickly flourished and as a result, its ownership changed in the early day but since 1919 when it was purchased by businessmen led by Ernest Woodruff, it has remained in the same business model as an IPO and has grown from the Jacob’s Pharmacy selling drink to the multinational company with the main drinks being the Coke, Fanta and Sprite syrup which has been the biggest revenue generator (Coca-Cola Company, 2017). The paper intends to provide the current financial position by analyzing its corporate business segment, the major issues facing the company, the key corporate officers and directors, and the recent stock price performance.
An Analysis of Corporate Business Segments
Coca-Cola Company operations segments are divided into six operational groups that are based on their geographical locations of their plants and the different investments other than soft drink productions. The segments are namely Eurasia and Africa, Latin America, North America, Asia, and Europe which portray the geographical location of their businesses based on the continents. The other segment is different and is known as bottling investments to ensure that all the other segments are able to invest in bottling and sales of their drinks without relying on external sources for their bottling. The North America is the biggest segment and also generate the highest revenues whereas Eurasia and Africa are the smallest segments in terms of the invested revenue and revenue generation although it covers a larger geographical area than Europe.
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A Discussion of the Significant issues Facing your Company
Although the company dominates the non-alcoholic beverages industry, it also faces huge challenges that have led to the decreased revenue generations compared to yesteryears. With the current population becoming more health conscious compared to past generations, the company is investing more revenues to improve their quality and ensure healthy drinks but the extended investments are not marched by an increased consumption as the population chooses to use other nutritious drinks. The Pepsi competition in major countries for instance, China has limited Coca-Cola growth in one of the fastest growing economies ("NYSE:KO COCA-COLA CO", 2017). The level of competition from both Pepsi and non-alcohol beverages has increased competition and government instabilities in some of the countries the company has invested in are also major issues facing the company. Lastly, economic fluctuations that either increases cost of production due to inflated foreign exchange affect both raw material purchases and sales of the final products.
A Summary of Key Corporate Officers and Directors
Following the stable, innovative, and competent leadership in the company led by Muhtar Kent who is the Chairman of the Board and CEO and has enabled flexibility and the continuous growth of the company even under the economic constraints. He has made the company to continuously dominate the non-alcohol beverages with ensuring diversity of the major brands which helps the company stay in its dominant position("NYSE:KO COCA-COLA CO", 2017). Under his leadership, the company stays positive as he calls for improvement to supplement its place and although acquire areas like China that is still lagging behind. There are changes in the leadership with Quincey expected to take-over control in May this year with additional senior management leaders also appointed.
A Review of Recent Stock Price Performance
(Coca-Cola Company, 2017)
The graph above illustrates the changes in stock prices of Coca-Cola Company depicting that the prices have been fluctuating which can be attributed to the challenges discussed above.
Coca-Cola Company, (2017). Our Company . Retrieved March 26, 2017, from, http://www.coca-colacompany.com/
NYSE:KO COCA-COLA CO . (2017). The Street Ratings . Retrieved March 26, 2017, from, https://www.thestreet.com/files/r/ratings/equities/KO_weiss.pdf