Fin 415 Coca-Cola Risk Management - 2525 Words

Coca-Cola Risk Management Plan Proposal Fin/415 Coca-Cola Risk Management Plan Proposal The final project for team B focuses on a risk management plan for the Coca-Cola Company. The Coca-Cola Company took shape in 1886 and remains an international leader in beverage manufacturing and distribution with the company’s background beginning this plan proposal. Risk identification plays a major role in Coke’s continued success with an explanation of the importance of correct identification as well as a list of risks facing the company continuing this summary. A discussion follows regarding the importance of accurate and balanced methods of risks measurement and continues into risk management techniques that include auditing and hedging.†¦show more content†¦6). Other risk factors identified include obesity concerns primarily in the United States, which may reduce the demand for some products. Water scarcity and poor quality could negatively affect Coca-Cola’s system production cost and capacity as well as fluctuations in foreign currency exchange and interest rate effects on financial results as further risk factors. Increased competition and the relationship between bottling partners such as financial conditions possibly deteriorating could affect financial results forming other risk factors. An increase in the cost of energy affecting profitability and changes in laws and regulations relating to packaging could increase cost reducing demand for product. Unfavorable economic and political conditions, litigation or legal proceedings exposing significant liabilities, weather conditions, changes in the regulatory environment, and changes in accounting standards and taxation requirements, and global and regional catastrophic events cont inue as possible risk factors capable of affecting operations (Coca-Cola, 2009). Considering these identified risks supports Coca-Cola in future decisions involving risk measurement. Risk Measurement Techniques As regulated by the Securities and Exchange Commission, Coke maintains an independent auditor to evaluate all accounts and oversee the earnings and financial reports. Risk measurementShow MoreRelatedRisk Management Plan Proposal986 Words   |  4 PagesRisk Management Plan Proposal FIN/415 Background of organization Pepsi Co is a global food and beverage leader with net revenues of more than $65 billion (Pepsico.com, 2012). Pepsi Co began its life in the summer of 1893. In 1893 Caleb Bradham invented â€Å"Brad’s Drink† or Pepsi Cola as it is called today (Pepsistore.com, 2012). By 1898 Caleb Bradham bought a trade name of â€Å"Pep Cola† from a competitor who had gone out of business. On December 24, 1902 the PepsiRead MoreDamodaran Book on Investment Valuation, 2nd Edition398423 Words   |  1594 Pagesinto the final version. Chapter 1: Introduction to Valuation Chapter 2: Approaches to Valuation Chapter 3: Understanding Financial Statements Chapter 4: The Basics of Risk Chapter 5: Option Pricing Theory and Models Chapter 6: Market Efficiency: Theory and Models Chapter 7: Riskless Rates and Risk Premiums Chapter 8: Estimating Risk Parameters and Costs of Financing Chapter 9: Measuring Earnings Chapter 10: From Earnings to Cash Flows Chapter 11: Estimating Growth Chapter 12: Closure in Valuation:Read MoreFinancial Ratio Analysis11306 Words   |  46 Pagesand development of product lines resulted in Pfizer moving to Manhatten in 1868 to support its rapid growth; the headquarters remained there for nearly a century. In 1880 Pfizer created citric acid and quickly becomes the leading product as Coca-Cola and Pepsi-Cola gain popularity and demand more of it. This marks another turning point in growth for Pfizer as citric acid launches this company into another market. 1899 marks the 50th anniversary of Pfizer Inc producing high-quality products in anRead MoreManagement Course: Mba−10 General Management215330 Words   |  862 PagesManagement Course: MBA−10 General Management California College for Health Sciences MBA Program McGraw-Hill/Irwin abc McGraw−Hill Primis ISBN: 0−390−58539−4 Text: Effective Behavior in Organizations, Seventh Edition Cohen Harvard Business Review Finance Articles The Power of Management Capital Feigenbaum−Feigenbaum International Management, Sixth Edition Hodgetts−Luthans−Doh Contemporary Management, Fourth Edition Jones−George Driving Shareholder Value Morin−Jarrell Leadership