RISK ANALYSIS AT COCA COLA COMPANY
FELICIA MONIKA
1511011032
S1 MANAGEMENT
FINANCIAL RISK MANAGEMENT – 1st ASSIGNMENT
Risk Analysis at
Coca Cola Company
Company Profile
Coca-Cola or
Coke is a cola-sparkling drink sold in restaurants, shops, and retailer
machines in over 200 countries. This drink is produced by The Coca-Cola
Company. Coke is one of the best known and most extensive brands of sales. Its
main rival is Pepsi. Coca-Cola was first introduced on May 8, 1886 by John
Styth Pemberton, a pharmacist from Atlanta, Georgia, USA. It was he who first
mixed the caramel syrup which became known as Coca-Cola. Frank M. Robinson,
John's friend and accountant, suggests Coca-Cola's name because it believes
that two C letters will stand out for advertising. Later, he created the name
with oblique letters flowing, Spencer, and was born the most famous logo in the
world.
Dr. Pemberton
sells his creations at the price of 5 cents per glass in his pharmacy and
promotes his products by dividing thousands of redeemable coupons to taste one
free drink. That year he spent US $ 46 on advertising costs. In 1892, Pemberton
sold Coca-Cola's copyright to Asa G. Chandler who later founded the Coca-Cola
company in 1892.
Chandler is
skilled in creating consumer attention by making various souvenir items with
Coca-Cola logo. These objects are then subdivided into important sustainable
sales locations. Innovative advertising styles, such as colorful designs for
buses, decorative glass chandeliers, and a series of souvenirs such as fans,
calendars and jams are used to popularize Coca-Cola's name and drive sales.
Risk Analysis and Solution
1.
Health
issues
Consumers are getting smarter in choosing a product. They are currently very concerned about health. Carbonated beverages are one of the healthiest, less healthful beverages. Therefore there is a risk to CocaCola's company, as many consumers are starting to leave carbonated beverages.
Consumers are getting smarter in choosing a product. They are currently very concerned about health. Carbonated beverages are one of the healthiest, less healthful beverages. Therefore there is a risk to CocaCola's company, as many consumers are starting to leave carbonated beverages.
So far CocaCola
only focus on the business of soft drinks. As health risks arise, CocaCola must
try to innovate to make new, healthier variations of the drink. Or open a new
business branch.
2.
In
some countries like India banning the sale of coca-cola
A company can not stand on its own. It needs government support also to make a company become successful and smoothly in running business activities. Coca-Cola was blocked by the Indian government's policy of banning the sale of Coca-Cola products in the country because in 2004, farmers in India protested against the Coke Bottling plant in India that caused the well water to dry.
A company can not stand on its own. It needs government support also to make a company become successful and smoothly in running business activities. Coca-Cola was blocked by the Indian government's policy of banning the sale of Coca-Cola products in the country because in 2004, farmers in India protested against the Coke Bottling plant in India that caused the well water to dry.
CocaCola as a large
company should have good CSR. Given this problem, CocaCola must improve the
quality of CSR. CocaCola's existence can improve the people's welfare.
3.
The
high price of raw materials
The high price of raw materials is a risk faced by companies as big as CocaCola. Because this company requires a lot of raw materials for the production process.
The high price of raw materials is a risk faced by companies as big as CocaCola. Because this company requires a lot of raw materials for the production process.
Because the
price of raw materials is expensive, CocaCola must have good management in
conducting its business activities, so that the finished product can reach the
consumers and can benefit the company even though the price of raw materials is
high enough.
4.
Difficulties
managing all subsidiaries worldwide
Because CocaCola is a very large company, there are many complex risks Coca Cola may face. Company management system should be good, so that the risk can be minimized.
Because CocaCola is a very large company, there are many complex risks Coca Cola may face. Company management system should be good, so that the risk can be minimized.
5.
Risk
of exchange rate
More than three quarters of a profit and 71% of its growth is obtained outside the United States. Therefore, the company is very sensitive to the strength of the dollar.So when the exchange rate is benefit the company, CocaCola must utilize this moment to get the maximum profit.
More than three quarters of a profit and 71% of its growth is obtained outside the United States. Therefore, the company is very sensitive to the strength of the dollar.So when the exchange rate is benefit the company, CocaCola must utilize this moment to get the maximum profit.
6.
Risk
of competitors
This risk is a risk faced by all companies in business.
To keep the existance of CocaCola, this company must be more innovative and must make a good branding. The goals is to make CocaCola tay superior despite having a competitor.
I just want to share some information that might help you. Please enjoy my blog! Subscribe my youtube channel www.youtube.com/c/feliciamonika13 and follow my instagram account www.instagram.com/feliciamonika
This risk is a risk faced by all companies in business.
To keep the existance of CocaCola, this company must be more innovative and must make a good branding. The goals is to make CocaCola tay superior despite having a competitor.
I just want to share some information that might help you. Please enjoy my blog! Subscribe my youtube channel www.youtube.com/c/feliciamonika13 and follow my instagram account www.instagram.com/feliciamonika
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