The business I have chosen to study is Coca Cola

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We seek to strengthen communities through our education sceme. Education because of its power to expand opportunities for individuals and to increase understanding between cultures. Coca Cola is obviously driven by it’s shareholders to make big profits and alot of there beliefs in some way or another eventually come back as profit. For instance caring for the environment will increase its public image so more people may buy Cola if they value the environment. In contrast an organisation who doesn’t care for the environment may get bad publicity and some people may refuse to buy that product or service.

In the early 20th century alot of companies, infact most if not all would of created a system to reach maximium production and not have spared a thought to the employees, community or environment. There is far greater emphasise on developing people and skills and other sentimental values such as the environment and equality. Quality is another point which so much focus is on these days, quality means what we can expect. If peoples expectation out weigh the product they have been given they may well never buy that product again. In contract if the product out weighs there expectation you can expect people to return again and again.

MAKING A PROFIT

The main objective of a business is usually to make a profit. This is because without a profit the business is resistricted to what It can/wants or in the worse cases die because of heavy debts which cannot be paid off. Without high profits a large business with shareholders will not be happy and confidence will be lowered, it cannot improve its technology to improve quality or quicker and more efficient production ect.

Of course if a company makes a loss in the short term it can get a loan but this can be very risky, if not done properly it may find itself in even greater debt also banks look at your profit potential carefully before giving it out. Here are Coca Colas profits and gains in 2002.All profits are in Millions $As we can see there profits are exremely healthy and in most areas we have a % increase in profits, this is a sign of a successful business.

The Coca-Cola Company in 2002 achieved worldwide unit case volume growth of 5 percent, nearly 950 million incremental unit cases. Excluding volume associated with the brands acquired during 2002, their growth rate was 4.5 percent. Cash from operations was a record $4.7 billion, a 15 percent increase over 2001. After investing activities, they generated $3.6 billion of cash flow in 2002, a 22 percent increase.

Reported earnings per share were $1.23 after a reduction of $0.54 resulting from accounting changes and several other items, including $0.11 per share impact from stock option expense. Throughout the year, they outpaced the rest of the industry in each of the major beverage categories in nearly every key global market. There results this past year were very encouraging, and were achieved in spite of a challenging global economic and political environment. However, one of the hallmarks of The Coca-Cola Company throughout its 117-year history is the belief that they can never be satisfied with there performance, and that they must always aspire to what we have yet to achieve.

In North America there focus was on innovation in 2002 produced the strongest unit case volume growth in more than three years: an increase of 6 percent versus 2 percent in 2001. The significant improvement in performance was led by excellent growth in brand Coca-Cola products and driven by a series of major product initiatives, including the highly successful launch of Vanilla Coke and diet Vanilla Coke in the same year, and the relaunch of Cherry Coke and diet Cherry Coke. Strong growth from Fanta also contributed to the solid performance. While Dasani continued its impressive performance as the fastest-growing packaged water in the industry ever, they also expanded their water offerings with strategic transactions involving Groupe Danone’s water brands, including Evian.

By executing there strategy of innovation through multiple distribution channels, they were able to achieved record volume and share of sales results for Minute Maid brands in North America. Growth in chilled juices was led by the expansion of Simply Orange not-from-concentrate orange juice, while the bottler-produced Minute Maid Refreshments line solidified its leadership in the rapidly growing and profitable juice-drink category. They built upon our leadership within the food service and hospitality segment by providing innovative products and service solutions that address specific customer needs.

The result was a pace of fountain volume growth in excess of industry traffic. Through events and promotions ranging from the Olympic Games to American Idol to Harry Potter they managed to strengthened connections between brands and the consumers. And, in the Coca-Cola tradition of supporting the communities they continued to emphasis on positive youth development with continued support of the Coca-Cola Scholars Foundation, Camp Coca-Cola, Reading Is Fundamental and a new physical activity program for youth, called “Step With It!”

In South America a strong platform for future competitiveness is taking shape throughout that area. In shrinking markets where there were significant declines in volume, such as Argentina, they increased the share of the nonalcoholic ready-to-drink beverages category by being sensitive and responsive to reduced consumer buying power. In the North Andean region (Peru, Bolivia and Ecuador), they ended 2002 significantly stronger, with volume growth up 7 percent. In spite of economic volatility in Brazil, the volume increased 3 percent in 2002.

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