Managements Achievement Claims Perspective :: essays research papers

Managements Achievement Claims PerspectiveIt is to no ones surprise that Coca-Cola is one of the worlds largestcompanies. fourteen years ago, Coca-Cola began building credibility to itsinvestors by never over-promising, just consistently hitting long-term growthtargets. In Great Britain, Coca-Cola surpassed two leading teas of enjoymentper capita. People said it would not be possible, but blast did it. That isjust one example.Coca-Colas management believes in the theory that people need 64 ouncesof luculent everyday to survive. Right now, Coke only accounts for an average ofless than two of those ounces. They believe that by adding strength to theworlds strongest brand, it go forth help people make Coke a more frequent choicefor those 64 ounces.The part of this Annual Report that I personally wanted to attack wasthe lack of sales in Canada and Coca-Colas goals in improving them. Beingnative of Canada and a big Coke fan, I know that Coke has struggled in myhomeland for several ye ars. M. Douglas Ivester answered my concern by statingthat Coke allowed the retail prices of their products to out pace their value inthe eyes of our consumers. Since 1994-1995, Canadas unit per case volumeincreased 4%. Coke is expecting an even great increase in 1996 because theirCanadian bottler signed with two major grocery retailers. Coca-Cola used Canadaas a lesson they can use as a campaign worldwide never repeat.CEO, Robert Goizueta believes that there is no limit to your growth. Hewill not allow boundaries to be set. It is evident to me that Coke is notsetting boundaries considering that they hand over a bottler in almost every cornerof the world. Coke is focused on strengthening world wide markets and creatingnew ones. In this report, they state how the will improve sales in Nigeria,China, South Africa, and Canada.Of all the Financial Reports I have read (Anderson Consulting, HomeDepot, Green Park, etc.), Coca-Cola is a company in which I believe what themanagement claim s. Coke has a great responsibility of making investors,employees, and consumers happy all over the world. Why would they blow itCoke realigned their management group at the beginning 1996 to more accuratelyreflect the global nature of their business. That says growth all over it.Comparison to Industry StandardsCoca-ColaIndustryStandard 1.) restless Ratio.2.7This states that Coke through these calculations is not asliquid as the industry standard.2.)Current Ratio1.0%1.4%3.)Profit Margin11%9%4.) take back on Equity55%9.5%This is very good percentage, above industry standard.5.)Asset Turnover1.2%3.6%6.)Return on Assets20%8.5%7.)Debt to Equity75.3%66.5%A fiddling high compared to industry, but still has not peaked at 100%.