On May 8, 1886, Dr. John Stith Pemberton, a local pharmacist in Atlanta, Georgia, created the syrup used to produce Coca-Cola. He introduced the syrup to the community at Jacob's Pharmacy, also located in Atlanta, Georgia. The syrup was sampled, well liked, and sold for five cents per glass as a soda fountain drink. Once combined with carbonated water the refreshing Coca-Cola beverage was born. First year sales averaged a mere nine drinks per day, a large leap from the averages of today. Frank M. Robinson, Dr. Pemberton's partner and bookkeeper, then named the invention, Coca-Cola, and designed the trademark that is so widely known today. Robinson thought the two Cs would look good together in advertising. Not realizing the impact the new drink would have on the market, Dr. Pemberton sold pieces of his business and in 1888, just before his death sold the remainder of his company to Asa G. Candler, an Atlanta businessperson.
[...] Meeting these targets would convince shareholders even though the company was showing a decline in sales in the first and second quarter, they would meet final projections and stock prices would in turn rise. The company denies this practice even though the company executive president was aware of this happening primarily in Japan (McDonald, 2007). In order for the company to avoid this ethical dilemma it should have a neutral third party evaluate the concentrate sales for former and future years and have them suggest ways to boost sales without the use of unethical practices. [...]
[...] The company is beginning this evolution of its drinks with the introduction of Coca-Cola Zero and the water and juice beverages it now produces. Another risk factor considered would include seasonality, as some of the companies most popular beverages are considered somewhat seasonal. The company also considers the weather a risk, hurricanes in Florida could reduce the orange juice concentrate used in some of its beverages. Other risk factors include water supply and quality, changes in the nonalcoholic beverages business environment, increased competition, not being able to expand, fluctuations in foreign currency exchange, and increases in interest rates. [...]
[...] The Coca-Cola Company started its global network with the Woodruff era and now operates in over 200 countries with almost 400 brands (The chronicle of Coca-Cola, 2008). Today Coca-Cola is an industry leader and is among the world's largest manufacturers, distributors and marketers of non-alcoholic beverage concentrates and syrups (Datamonitor, 2007). The company markets four of the five top nonalcoholic brands: Coca-Cola, Diet Coke, Fanta, and Sprite. The company also promotes a wide range of other beverages and brands such as waters, energy drinks, sports drinks, coffees, teas and juices. [...]
[...] The company needs to remain aware with the respect to the supply of raw materials for their products. While most of the raw materials are not presently considered available from limited suppliers, the company considers the chances of materials decreasing a risk. Favorable purchasing agreements need to be maintained for the company to remain competitive. Monitoring events such as natural disasters, power disruptions, and labor relations is also required, as these events could negatively affect the cost of the raw materials. [...]
[...] As long as the additional revenue from selling more units exceeds the additional cost of producing the product, the company will continue to produce and supply its products. A company is willing to produce more of a product the lower the cost of production. When operating in competitive markets companies use a market- based approach. When a company produces similar items produced by another company, it must accept the prices set by the market. Adopting target costing would be one way for Coca-Cola to achieve its goals. [...]
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