Financial analysis

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Company Background
Coca-Cola, commonly referred to as coke is one the world’s most popular brands. The beverage competes in non-alcoholic segment with its competitors in the global commercial beverages sector. In 2006, coke’s global sales touched 10% of the whole market, in the non-alcoholic products. It faces competition from its own peer products as well as the home country’s local products. They have spread their sales in more than 200 countries but it is made available throughout the globe as it is said “coke is bottled locally but enjoyed all over the world” (Coca-Cola, 2009).

Setbacks
With the changing economy, Coca-Cola’s growth has come down with change in beverage tastes. Coke saw an unusual drop in sales by 2% in North America, its home, due to wet weather. The sales volume fell 1%. Coca-Cola also suffered tainted image due to contamination scare (Brenda Bouw, 2013).

Clash among antitrust supporters further brought down the sales in Europe and Chile which damaged both the company’s reputation and the share price of coke. Coca-Cola also has been facing problem with change in consumer’s perceptions on health grounds to avoid aerated beverages. Rivalry companies’ broader range of products including sports drink and fruit juices also brings down the sales of Coca-Cola both in its home and overseas markets (Janet Morrison, 2006)

Coca-Cola also has been facing problems with the sluggish markets in the Asian countries. The beverage was able to capture the “pure global segment” (Coca-Cola, 2014) in these countries similar to US. But the biggest challenge they face is, they need to reach the semi-global and local segment. These two segments are dominated by the local preferences or a mix of global and lo...

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...’ 2nd Edition, Palgrave Macmillan
5. Brenda Bouw (2013) ‘Beverages - Flat sales add to Coke’s challenges’ [Online] Available at: http://www.theglobeandmail.com/globe-investor/investment-ideas/flat-sales-add-to-cokes-challenges/article13262957/
6. The Institute of Management Accountants (2008), ‘Definition of Management Accounting”, [Online] Available at: http://www.imanet.org/PDFs/Public/Research/SMA/Definition%20of%20Mangement%20Accounting.pdf
7. e-conomic (2014), ‘Management accounting - What is Management accounting?’ [Online] Available at: http://www.e-conomic.co.uk/accountingsystem/glossary/management-accounting
8. Mitchell Holt (2013) ‘Management Accounting vs. Financial Accounting’ [Online] Available at: http://smallbusiness.chron.com/management-accounting-vs-financial-accounting-3987.html

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