TABLE OF CONTENTS Executive Summary 1. Company Background 1. Coca Cola Amatil Brief Activities in Australia 2. Company’s brief financials 3. Company’s Strategy & Growth Drivers 2. Company’s Key Accounting Policies 1. Foreign currency translations (AASB 1012) 2. Inventories (AASB 1019) 3. Revenue (AASB 1004) 4. Changes in Accounting Policies (AASB 1001) 3. Flexibility in the Selection of Company’s Key Accounting Policies 4. Accounting strategy 5. Quality of Disclosures 6. Questionable accounting figures 7. Possibility to UNDO Distortions in the Accounting Numbers 8. CCA’s financial press 9. Conclusion 10. References 11. Appendices 1. Appendix 3: Flexibility in the selection of company’s key …show more content…
Exchange rate gains or losses are brought to account in determining the net profit or loss in the period in which they arise, as are exchange gains or losses relating to cross currency swap transactions on monetary items. Exchange differences relating to hedges of specific transactions in respect of the cost of inventories or other assets, to the extent that they occur before the date of receipt, are deferred and included in the measurement of the transaction. Exchange differences relating to other hedge transactions are brought to account in determining the net profit or loss in the period in which they arise. Foreign controlled entities are considered self-sustaining. Assets and liabilities are translated by applying the rate ruling at balance date and revenue and expense items are translated at the average rate calculated for the period. Exchange rate differences are taken to the foreign currency translation reserve. 2.2 Inventories (AASB 1019) as a general principle, inventories are valued at the lower of cost (including fixed and variable factory overheads where applicable) and net realizable value. Cost is determined on the basis of first-in-first-out, average or standard, whichever is the most appropriate in each case. 2.3 Revenue (AASB 1004) Revenue is recognized to the extent that it is probable that economic benefits will flow to the Group, at the point where a right to consideration or
The government charged the Coca-Cola Company with marketing and selling a beverage that was injurious to health. They charged the company with producing a beverage that produced serious mental and motor deficits due to the use of synthetic caffeine. They also claimed that Coca-Cola was misbranded because its name implied that the product contained coca, yet it did not contain the whole coca leaf (because the cocaine was removed) and the name constituted a false and misleading design. The government hoped to prove that Coca-Cola caused cognitive, sensory and motor deficits and that Coca-Cola was adulterated because it’s caffeine content was an added
A great question arose in the 80’s as a constant innovation and aggressive behavior arose towards brand building. Pepsi, a brand that suffered two bankruptcies, pushed forwards towards their growth as the company by expanding their portfolio as a Food and Beverage Company. As it became a food and beverage company, Pepsi was able to become the Coca-Cola’s main competitor. Each company constantly competed and tried to outdo each other with their campaigns. While both brands competed with each other, Pepsi began to target Coca-Cola’s commercials causing Coca-Cola to respond with the same aggressive behavior creating the beginning of the Cola Wars. The Cola-Wars brought forth a great question that made one wonder if either Coke was better than Pepsi or if Pepsi was better than Coke? Based off the Cola Wars, the best soft drink producer is the Coca-Cola Company.
Recently there has been an ongoing battle between the US government and large soda companies. money is the sole purpose behind this battle. Soda companies want to sell their product by whatever means are necessary while the government wants to decrease the obesity rate in the country. Because the government intervined with this, the soda companies continued sales by advertising the sodas being good for you. Soda companies such as Pepsi released advertisements that used tactics to make Americans believe their product is healthy, good to buy and beneficial to the consumer.
FMCG business is typically characterised as high volume and low margin. Companies aim to create brand loyalty and trust towards their brand. Brands continuously evolve themselves in order to ensure that they are able to match changing needs in the market. Rebranding is one of the strategies which they employ for this purpose. It is done so as to create a new and differentiated image of the brand in the minds of consumers and other stakeholders.
The other threats are the water issues and the poor quality in many locations not just in the United States, but internationally as well. Water is the major ingredient used at Pepsi for their beverage products. This issues alone is causing the cost and the profit to affect the company.
History "Coca-Cola enterprises Incorporated, employees 66,199 operates, 444 facilities, 47,235 vehicles, 1.9 million pieces of cold drink equipment and sold 3.8billion unit cases in 46 states in the united states, all 10 provinces of Canada and portions of Europe including Belgium, France, Great Britain, Luxembourg and the Netherlands" (Coca-Cola facts 99). An, Atlanta Pharmacist Dr. John Slyth Pemberton founded Coca-Cola on May 8, 1886. The carmel colored ingredients, Coca leaves and kola nuts. Later the drink was striped of narcotics. The drink was first designed as a drug that will help people feel better. Pemberton sold his new drink for 5 cents a glass. Some time later carbonated water was added to
Coca Cola is a beverage company, a major consumer of water resources, it uses 2.43 liters of water to produce just 1 liter of beverage which makes it prone to criticism and consumer boycotts so to protects its brand image and defend its vision statement, which said be a responsible citizen, and run its business smoothly it decided to start water program to maintain its operations in Vietnam and build a CSR reputation.
On May 8, 1886, Dr. John S Pemberton, a pharmacist in Atlanta, Georgia, USA mixed the syrup that became Coca-Cola'. His friend and bookkeeper, Frank M. Robinson, thinking that the two C's would look well in advertising', suggested the name Coca-Cola'. He wrote the words in his now familiar Spenserian script, and the world's most recognized trademark was born.
Coca Cola is a beverage that very common in Hong Kong, or even in the world. However, I do not obsess with it, indeed, I was allergic to Coca Cola. Before I did not know the reason, but now I think I can explain it by using theories about different types of learning in psychology.
Over the years, Coca Cola and Tropicana have been two major products used to campaign NASCAR sporting industry. The two products are produced by the two largest organizations in the United States of America. Coca Cola and Tropicana have been the top products used by NASCAR sporting industry in the marketing campaigns. Declining attendance at NASCAR races during the economic downturn had influenced intense discussion in the motorsport industry. Therefore, the company was engaged with two major industries in order to boost sports. Both Coca-Cola and PepsiCo organizations invested millions of dollars in the world marketing campaign through NASCAR industry in order to market the products. The two organizations are targeting the same markets in different ways. This paper will compare and contrast the way PepsiCo and Coca-Cola use NASCAR industry as a communication medium for advertising and promotions.
If I am going to spotlight a historic company with tons of great advertising to learn from, who is better than Coca-Cola? This classic brand started of reminding us to “Drink Coca-Cola” since 1886 and now recently encourages everyone around the world to “Open Happiness” every day. Even though their slogans are always changing as the years go by, one thing that has remained constant throughout the history of Coke is the innovative marketing and advertising campaigns that have launched and re-launched the brand. Coca-Cola advertising history is filled with famous campaigns that rank among the best in the world.
Coca-Cola currently has roughly 4.32 billion shares of its stock outstanding, with a share price as of this writing around $41.53 per share. This would put Coca-Cola 's market capitalization at roughly $178 billion. Taking cash and debt into consideration, Coca-Cola has a total value of almost $213 billion
“A Coke is a Coke, and no amount of money can get you a better Coke than the one the bum on the corner is drinking. All the Cokes are the same, and all the Cokes are good. Liz Taylor knows it, the President knows it, the bum knows it, and you know it."(Andy Warhol, 1975) Regardless of its corporate reputation, the organizational performance and its social responsibility of Coca-Cola makes it loved around the world. Ever since its creation in 1886 Coca-Cola has been a household brand known globally for generations of families. I have to mention, of all the cases researched this is my least favorite not only because of my childhood love for the product because the ethical issues in one way or another always manage to resolve themselves not before further tainting the reputation Coke worked so hard to obtain. Most times, whether an organization is innocent of an unethical act, it becomes secondary to the suspicion of the original act. Almost as if the court of public opinion has the power to ruin the reputation of an organization based on an unfounded accusation. In spite of my loyalty after having ready the case, I do believe Coca-Cola to be flawed. The contamination scare in Belgium is a great example of a public relations nightmare. The slightest hint of impurity should have pushed Coca Cola into crisis management mode but they were slow to react, citing it a minor issue (Ferrell, Fraedrich, & Ferrell, (2011). It was not until local officials
Coca-Cola is the world’s most largest manufacturer of beverages and food who sell more than $24 billion products only in the year 2006 in more than 200 countries. From year 1980-1997, under the president ship of Roberto Goizueta , company growth increases rapidly. Its market grew from 4.3 billion dollar to 180 billion dollar’s. But after his death in 1997, the company growth declined under 115 billion. It needs a big idea to transform its growth to upper level.
Firstly, I would like to express my appreciation towards your dedication for Coca-Cola for the past ten years. Coca-Cola is one of my favorite beverages and it can always remind me of the joy in my childhood. I am really surprised to hear that your company has suffered a sales decline during the past few years and been evolved in some reputation problems.