Despite all the positive growth Coke has recorded and its prospects, the company faces the following fundamental market risks. Financial crisis that is looming in the world has hit very had in its parent U. S market. According to the 2007 Annual Report, Coca-Cola gallon sales to U. S were 37%, 43% in Mexico, Brazil, Japan and China and 20% to the rest of its world market (Business wire, 2007). With the financial crisis hardly affecting U. S, the sales revenue may be affected as the consumers’ disposable income shrink.
This may affects its earnings given it has high long term debt. Also its value of securities that are listed in stock markets may be eroded as many investors sell their shares or become apprehensive and not make buy move. This will result to capital loss which is already being experienced in NYSE. Increased competition mainly from growing companies who are offering beverages at lower prices also may affect the Coke’s sales especially in emerging economies in Africa and Asia.
Poor management in the bottlers company also increases operation risks. Bottlers’ operation are managed their owners, though there is management guideline form Coca-cola in some bottlers there may be lack of management efficiency, this results in loss of revenue as Coca-cola brands lose market to other competing brands. However, Coca-cola has the following strengths which can make it overcome all the above challenges. As we have seen, the company is well capitalized and thus it can easily finance its operations and support expansions.
The company’s greatest asset is employees.
Its large pool of competent employees will give it strong position. Coca-coal has a strong strategic management which makes effort to keep the company ahead in the arena (). Coca-cola has four of the strongest brands in the world. The strength of Coca-cola, Fanta, Sprite and others brands has given the company a huge competitive edge. Despite the price wars, the company’s brand enjoys high customer royalty that guarantees future company earning and growth.
Remember! This is just a sample.
You can get a custom paper by one of our expert writers.
Get your custom essay
Helping students since 2015
Essay Writing Service Features
Our Experience
No matter how complex your assignment is, we can find the right professional for your specific task. Contact Essay is an essay writing company that hires only the smartest minds to help you with your projects. Our expertise allows us to provide students with high-quality academic writing, editing & proofreading services.
Free Features
Free revision policy
$10Free bibliography & reference
$8Free title page
$8Free formatting
$8How Our Essay Writing Service Works
First, you will need to complete an order form. It's not difficult but, in case there is anything you find not to be clear, you may always call us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.
Complete the order form
Once we have all the information and instructions that we need, we select the most suitable writer for your assignment. While everything seems to be clear, the writer, who has complete knowledge of the subject, may need clarification from you. It is at that point that you would receive a call or email from us.
Writer’s assignment
As soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.
Completing the order and download