Multinational Corp Finance 21EW3
5-2 Milestone Two: Economic Environments and Risk Mitigation
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Multinational Corp Finance 21EW3 5-2 Milestone Two: Economic Environments and Risk Mitigation Hi i am looking for assistance. I have attached the 1st milestone which is referenced in the assignmen
Running Head: MULTINATIONAL CORPORATION REPORT 0 The Coca-Cola Multinational Corporation Report Company Overview Coca-Cola Company was founded in 1892. Since then, it is involved in producing and selling syrup beverages. Coca-Cola produces other citrus beverages and soft drinks. These products are availed in more than 200 countries. The headquarters of the Company is in Atlanta. Coca-Cola was originated by John Pemberton, an Atlanta pharmacist in his Company, which dealt with chemicals. John Pemberton touted the drink for many ailments mixing it with cocaine. The cocaine was later removed in 1903, and the local soda fountains were advertised, and thus the drink became successful. In 1891, Asa Griggs secured the Coca-Cola business’s complete ownership for $2,300, and some property rights were exchanged (Brondoni, 2019). Coca-Cola Company was incorporated in 1892 and given a patent in the following year. Coca-Cola would later expand, following it to be the only cold beverage to be sold in China. New markets for the Coca-Cola Company opened up in the early 1990s. In 1992, Coca-Cola made its first bottle that was recycled from plastic. This was a major innovation of the Company at that time. Coca-Cola continued to sell its beverages to more than 120 countries worldwide. Economic Environments and Market Conditions Coca-Cola owns a stockholder’s equity of 25.764 Billion dollars, and this is one of its latest 10-K in 2015 December. 1.76 billion dollars is from stock, $14.016 billion was from a capital surplus (Kessler & Türp, 2020). Coca-Cola ensured 4,323 billion outstanding shares, and 54 million shares were converted. As of August 2016, Coca-Cola had an approximated capitalization of 187.791 billion dollars. Since the 2008 financial crisis, Coca-Cola Company augmented its leverage through bonds and very low rates of 1.4 to 3.25 percent, which brought the Company to $48 billion outstanding bonds. The Company’s Enterprise Value grew by 7.6 percent because of a rise in net debt to 38.413 billion dollars. Effects of Global Credit Crisis on the Coca-Cola Company The global credit crisis caused a slow down to the expansion of all companies. Since Coca-Cola was a fast-moving consumer goods company, it was impacted less by the crisis. This crisis caused a consumer to reset in the West, specifically (Neeley & Çekin, 2017). The change in consumption habits impacted mostly the durable goods sector. The Company’s goal to double revenue by 2020 was affected by the global credit crisis (Ling, 2017). Ethical and Legal Considerations A strong ethical environment leads to the tremendous performance of any company. Coca-Cola Company is always dedicated to maximizing the shareholder’s value without forgetting its responsibility in ensuring that the environment is conserved by packing their brand drinks in bottles that can be recycled after use. Ethical standards are formulated to ensure that other stakeholders’ interest is protected (Avdeev, Nassiripour & Wong, 2019). Coca-Cola Company tried to safeguard and protect their ethical and legal standards during the 2008 Great Recession. However, it was accused of soil and water pollution and violation of human rights to some extent. It was also blamed for discriminating against employees in terms of promotion, performance evaluation, and payment. The Impact of Coca-Cola’s Ethical and Legal Decisions Internal Stakeholders The internal stakeholders include the shareholders, employees, and managers. Any declaration of the Company’s financial position has enhanced the operations and formulation of performance strategies. The employees have also been rewarded directly, which has led to the Company’s success (Avdeev, Nassiripour & Wong, 2019). The Company has come up with ways of maximizing profits, and this has paid the business owners. External Stakeholders Customers, suppliers, and the government are impacted by the Company’s ethical and legal decisions. The decision of the Company to provide drinks has met the needs of customers. Timely payments to suppliers have brought a strong relationship with the Coca-Cola Company (Avdeev, Nassiripour & Wong, 2019). Compliance with government regulations has made the business environment friendly. Conclusion The Coca-Cola Company is among the companies which have seen success in their operations. It has survived even through the worst economic times and emerged a winner. Its relationship with stakeholders, including compliance by law, has improved since its establishment. References Avdeev, V., Nassiripour, S., & Wong, H. (2019). Case Study: Ethical Considerations of an Accounting Professional. Journal of Leadership, Accountability and Ethics, 16(2). Brondoni, S. M. (2019). Shareowners, Stakeholders & the Global Oversize Economy. The Coca-Cola Company Case. Symphony. Emerging Issues in Management, (1), 16-27. Kessler, P., & Türp, J. C. (2020). Influence of Coca-Cola on orthodontic materials. A systematic review. Swiss Dental Journal, 130(12), 983-993. Ling, X. (2017). Customer Relationship Management: Case study Coca-Cola Company. Neeley, T., & Çekin, E. (2017). Global Leadership in a Dynamic and Evolving Region: [email protected] The Coca-Cola Company (A).