ASSESSMENT OF RECENT FINANCIAL PERFORMANCE OF COCA COLA
• Revenue: Coca Cola (2015) the gross profit margin of Coca Cola decreased to 60.5 percent in 2015 from 61.1 percent in 2014. The gross profit margin increased to 61.1 percent in 2014 from 60.7 percent in 2013.
• Operating Income: Coca Cola (2015) in 2015, foreign exchange rate Instabilities unfavorably impacted consolidated operating income by 12 percent. In 2014, foreign currency exchange rate Instabilities unfavorably impacted consolidated operating income by 6 percent (The Coca-Cola company, 2014).
• Earnings before interests and Tax: In 2014, the EBIT decreased by 14% mostly as a result of losses in other operating income incurred, in 2015 however, it increased by 3% (The Coca-Cola …show more content…
Coca-Cola is in the soda industry, where the main other contender is Pepsi. The competition is very high.
2) New Entrants: Risk of new participants is low. This is because of economies of scale, first mover point of interest, and access to channels of conveyance and relationship. In 2014, Coca-Cola sold 28.6 billion unit instances of item. This demonstrates Coca-Cola has unimaginably extensive economies of scale.
3) Bargaining Power of Buyers: The bargaining power of buyers is medium. There is high concentration and actual product differentiation is low (making price sensitivity high), which makes the bargaining power high. On the other hand, the volume that consumers buy is large, making the bargaining power low.
4) Bargaining Power of Suppliers: The bargaining power of suppliers to the soda industry are low. This is due to the fact that the suppliers are selling commodities, where substitutes are readily available, as well as heavy competition amongst firms.
5) Substitute Products: Substitute products in the soda industry is high. Other products that perform the same function include water, tea, coffee, hot chocolate, sports drinks, and energy drinks. The vast majority of these substitutes are priced close to
• Revenue: Coca Cola (2015) the gross profit margin of Coca Cola decreased to 60.5 percent in 2015 from 61.1 percent in 2014. The gross profit margin increased to 61.1 percent in 2014 from 60.7 percent in 2013.
• Operating Income: Coca Cola (2015) in 2015, foreign exchange rate Instabilities unfavorably impacted consolidated operating income by 12 percent. In 2014, foreign currency exchange rate Instabilities unfavorably impacted consolidated operating income by 6 percent (The Coca-Cola company, 2014).
• Earnings before interests and Tax: In 2014, the EBIT decreased by 14% mostly as a result of losses in other operating income incurred, in 2015 however, it increased by 3% (The Coca-Cola …show more content…
Coca-Cola is in the soda industry, where the main other contender is Pepsi. The competition is very high.
2) New Entrants: Risk of new participants is low. This is because of economies of scale, first mover point of interest, and access to channels of conveyance and relationship. In 2014, Coca-Cola sold 28.6 billion unit instances of item. This demonstrates Coca-Cola has unimaginably extensive economies of scale.
3) Bargaining Power of Buyers: The bargaining power of buyers is medium. There is high concentration and actual product differentiation is low (making price sensitivity high), which makes the bargaining power high. On the other hand, the volume that consumers buy is large, making the bargaining power low.
4) Bargaining Power of Suppliers: The bargaining power of suppliers to the soda industry are low. This is due to the fact that the suppliers are selling commodities, where substitutes are readily available, as well as heavy competition amongst firms.
5) Substitute Products: Substitute products in the soda industry is high. Other products that perform the same function include water, tea, coffee, hot chocolate, sports drinks, and energy drinks. The vast majority of these substitutes are priced close to