By: (Name)
Presented to: (Instructor’s Name, Course)
(Institution’s Name)
(Date)
All Rights Reserved PremiumWritingService.com
Executive Summary Coca-cola Company is leading manufacturer, distributor, and marketer of non alcoholic drinks in the United States of America and all over the world. It is a multinational Giant company that has market presence in almost all countries of the world. The company has also diversified from its initial soft drinks to manufacture fruit juices and other non-soda drinks. Its objective has been to maintain its global leadership in supply of beverages and other non-soda drinks through maintaining high quality production methods that ensure the name and products remain a household brand. Introduction Resource based view approach has been a method most managements have used to formulate their companies’ strategies (Barney, 1991). This is because Resource Based View regards a company’s internal environment rather than the external environment. The advantage of using internal environment as a source of strategy formulation is that the company is able to consider factors which are within its controls; which constitute its strengths and weaknesses (Connely, 2010). This paper presents an internal analysis of Coca cola Company with specific regard to the Economic value of the company, its resources and capabilities that make it distinct from other companies giving it competition through provision of similar soft drinks. Economic value Added In 2010, The Coca Cola Company posted an increase in revenues as compared
All Rights Reserved PremiumWritingService.com
to the previous year. The profits came to $6.48 billion. The cost of capital for Coca cola Company is estimated to be 8.7% and the capital totaled $72.929 billion. Ensuing is the EVA calculation for the company. Net Operating Profit After Tax (NOPAT) – (capital *