Coca Cola's Financial Analysis
Coca Cola’s Financial Analysis
Coca Cola’s Financial Analysis
Danielle Nicole Lewis
Hawaii Pacific University
Coca Cola’s Financial Analysis: History and Current
Introduction
History
The Coca Cola Corporation is an American Icon of business that has established a new direction for American Industry operations in the 20th century. According to Moxley (2002), “Beginning with its invention in 1886 by druggist John “Doc” Pemberton in Atlanta, the development of the product is shown, along with the changes in American life that accompanied-and affected-the prices. We learn that by giving out free samples and pervasive advertising, Coca-Cola became known throughout the country.” (Moxley, 2002)
Coke was a known brand by the turn of the 20th century. The use of free samples gave future customers the chance to try the product risk-free and instil confidence in the owners belief in the quality of the product. According to Moxley (2002), “Bottling plants were shipped around the world, laying the base or the worldwide expansion of the product in the late 1940s and 1950s. Throughout, the evolution of advertising and changes in packaging is shown through print and film ads, demonstrating the changes brought about by the culture of the time.” (Moxley, 2002)
Coke’s history points to the importance of packaging and marketing as a function of distribution and sales. The company developed bottling plants to bottle the elixir and establish a quantification method to manage inventory of bottles and to plan distribution routes and channels. According to (Dietz ,1993), “During World War II the U.S. military allowed Coke bottling plants to be set up wherever U.S. troops were stationed, which created a world-wide distribution system. The popularity of the drink extended even to the Soviets. And then there is the matter of the introduction of “New Coke.” (Dietz, 1993)
Current Operations Coke currently operates in each continent across the world and employs an
Coca Cola’s Financial Analysis
Danielle Nicole Lewis
Hawaii Pacific University
Coca Cola’s Financial Analysis: History and Current
Introduction
History
The Coca Cola Corporation is an American Icon of business that has established a new direction for American Industry operations in the 20th century. According to Moxley (2002), “Beginning with its invention in 1886 by druggist John “Doc” Pemberton in Atlanta, the development of the product is shown, along with the changes in American life that accompanied-and affected-the prices. We learn that by giving out free samples and pervasive advertising, Coca-Cola became known throughout the country.” (Moxley, 2002)
Coke was a known brand by the turn of the 20th century. The use of free samples gave future customers the chance to try the product risk-free and instil confidence in the owners belief in the quality of the product. According to Moxley (2002), “Bottling plants were shipped around the world, laying the base or the worldwide expansion of the product in the late 1940s and 1950s. Throughout, the evolution of advertising and changes in packaging is shown through print and film ads, demonstrating the changes brought about by the culture of the time.” (Moxley, 2002)
Coke’s history points to the importance of packaging and marketing as a function of distribution and sales. The company developed bottling plants to bottle the elixir and establish a quantification method to manage inventory of bottles and to plan distribution routes and channels. According to (Dietz ,1993), “During World War II the U.S. military allowed Coke bottling plants to be set up wherever U.S. troops were stationed, which created a world-wide distribution system. The popularity of the drink extended even to the Soviets. And then there is the matter of the introduction of “New Coke.” (Dietz, 1993)
Current Operations Coke currently operates in each continent across the world and employs an
Bibliography: Dietz, L. S. (1993). We 'll Buy it FOR GOD, COUNTRY AND COCA COLA. Los Angeles Times . Mark Pendergrast. Financial Markets. (2010). Investment Weekly News. Retrieved Mar 17, 2011, from The Coca-Cola company finalizes transaction with coca-cola enterprises. : http://search.proquest.com/docview/757586030?accountid=13044 Gallagher, T Investopedia. (2011). Price to Earnings Ratio. Retrieved March 17, 2011, from Price to Earnings Ratio: http://www.investopedia.com/terms/p/price-earningsratio.asp Moxley, M Stanford, S. M. (2010, November 4). Coca-Cola May Sell $4 Billion of Bonds for Tenders. Retrieved March 17, 2011, from Bloomberg : http://www.bloomberg.com/news/2010-11-04/coca-cola-files-prospectus-for-4-part-offering-no-amounts.htm Yahoo Finance Balance Sheet Period Ending | Dec 31, 2010 | Dec 31, 2009 | Dec 31, 2008 | Period Ending | Dec 31, 2010 | Dec 31, 2009 | Dec 31, 2008 | Net Income | 11,809,000 | 6,824,000 | 5,807,000 |