Coca-Cola Portfolio power point presentation minimum 25 slides APA format with applicable references and notes with slide. Please do not use oversized font unless it's needed.

Unit VIII Portfolio PowerPoint Presentation For your final submission, you are to create a presentation on the Multinational Corporation you have been following throughout this course. Your Unit VIII Portfolio submission should contain the following criteria: 1. Diversification 2. Investment 3. Management 4. Exchange rates 5. Currency forecast These criteria then needs to be broken up into the following sub-components, for which you are to develop your presentation: 1. Diversification: Analyze and explain the steps taken by the organization to diversify their assets and integrate themselves into the growing global economy. 2. Investment: Determine how the organization borrowed and financed debt and equity within foreign and domestic markets. Discuss the impact upon their overall investments. 3. Management: Examine how the organization managed their assets and liabilities and how this affected their profitability and growth. 4. Exchange rates: Evaluate the effect of real exchange rates and the risk thereof, on the profitability of the organization, including the use of purchasing power parity. 5. Currency forecast: Discuss the effects of foreign currency swaps upon the organization and how this influenced their business decision making. You should create a PowerPoint Presentation on the Multinational Corporation you chose within the first couple units. The presentation should be a minimum of 25 slides and contain all the necessary information. Any charts, graphs, or pictures should be appropriately cited using APA style writing. Information about accessing the Blackboard Grading Rubric for this assignment is provided below. Running head: AN ANALYSIS OF THE COCA-COLA COMPANY An Analysis of the Coca-Cola Company Student's Name Institutional Affiliation 1 AN ANALYSIS OF THE COCA-COLA COMPANY 2 The Coca-Cola Company According to Madura (2011), a multinational corporation is one that is able to make over 20% of its profits from investments undertaken other than in its home country. The nature of multinational firms is such that they are managed from their country of origin, but tend to diversify their operations to other nations. Owing to the effective management structure that they possess; these companies can expand their operations to foreign countries through the supply of their goods and services. Ideally, the Coca-Cola Company meets all the characteristics of a multinational corporation because it is a well-recognized brand that is headquartered in Atlanta, Georgia. The company also boasts of very high profits that total to about 24 billion dollars and is a large employer with over 71,000 employees worldwide. One of the primary objectives of the Coca-Cola Company is the maximization of shareholder wealth by creating maximum profits for the enterprise. Of fundamental importance to the Coca-Cola Company is the need to carry out international business. In effect, the managers of the company undertake investment and financial decisions intended to maximize the value of the firm. Even though the company initially dealt with the export of its products to foreign markets, over time, they came to realize the additional overseas opportunities that lie in markets other than the United States. They eventually came up with subsidiaries in these markets, which have contributed to more than half of their sales in these foreign markets. Ideally, Coca-cola distributes its products in more than 160 countries and utilizes more than 40 currencies in trade (Madura, 2011). In fact, over 60% of the company's annual operating income is earned through the operations the corporation does outside the United States. AN ANALYSIS OF THE COCA-COLA COMPANY 3 Brief History of the Organization The Coca-Cola Company initially started off as a soda fountain in 1886 and would trade for about five cents a glass. Even though its early growth was impressive, it was only after the firm adopted a bottling strategy that the famous brand it is today. Specifically, the company started in 1894 with one candy store located in Vicksburg, Mississippi. Being a startup, the level of sales that it made at the time impressed the owner, Joseph A. Biedenharn, who started to bottle the beverage for sale, using a commonly available type of glass referred to as Hutchinson. In 1899, two young attorneys approached Candler, one of the owners of the company as they believed that they would make a business out of it (The Coca-Cola Company, 2017). After their meeting, the two attorneys, Joseph and Thomas attained exclusive rights to bottle the beverage in most parts of the United States while specifically excluding Vicksburg for one dollar. As the business progressed, another partner, also a lawyer, joined the management team and the three of them sought to market the product through territorial divisions that targeted local entrepreneurs (The Coca Cola Company, 2017). Their efforts were made easier by the advent of the bottling technology, making their quality and efficiency even better. As a result, the company had about 400 bottling plants by 1909 with most of them being family owned businesses, and some of them remained open during the hot weather season when the demand for the drink was high (The Coca-Cola Company, 2017). In 1916, most bottlers were worried about the design of the straight sided Coca-Cola bottle as they argued that it could easily be confused by imitators. They then sought for unique ideas from various glass bottlers, and one design from the Root Glass Company won the deal in 1915, and its design was adopted in 1916 (The Coca-Cola Company, 2017). The contour bottle shaped approved by the company has since become one of the few packages granted trademark AN ANALYSIS OF THE COCA-COLA COMPANY 4 status by the United States patent office, and this feature makes it one of the most recognizable in the world. By the beginning of 1920, more than 1,000 Coca-Cola bottlers were operating in the United States, and by the end of 1920, bottle sales superseded fountain sales. The Company's Internationalization Process Under the leadership of the company's long-term leader, Robert Woodruff, Coca-Cola initiated efforts to establish bottling operations outside the United States. As a result, various bottling plants have been set up in Guatemala, France, Honduras, Belgium, Mexico, Peru, Italy, Spain, South Africa, and Australia. By the onset of the World War II, Coca-cola was already being bottled in about 44 countries. During the war, 64 bottling plants were established throughout the world to supply the war troops (The Coca-Cola Company, 2017). Most of these wartime facilities were later converted to civilian use after the war, causing the spontaneous growth of the company and improving the company's growth throughout the world. Role of Globalization in the Organization's Growth The effects of globalization during the 1970s and 80s played an important part in the growth of Coca-Cola Company. One such change that was as a result of globalization was the technological advancements that made it possible for various companies to expand their operations. As technology facilitated a global economy, retailers that traded in Coca-Cola came together and created international mega-chains. Global customers required a new approach, meaning that the various small and medium-sized companies came together to serve international clients. A key goal of management was to facilitate consolidations among the bottlers, so that these bottling leaders would take over the global retail market. AN ANALYSIS OF THE COCA-COLA COMPANY 5 In the 1990's globalization led to open political and economic markets as governments opened their borders to international trade and foreign investments. As a result of these economic and political changes, huge markets that had been initially closed or underdeveloped became accessible. After the fall of the Berlin wall, the company undertook massive plant investment of plants in Eastern Europe, and at the end of that century, an approximate of about $1.5 billion was used for the development of new bottling facilities in Africa. Globalization also meant that mass media became an influential aspect of marketing for companies that sought to garner an international following. In effect, the Coca-Cola Company came up with a unique advertising strategy in the 70's and 80's that presented it as a simple life pleasure that was not only distinct, but globally acceptable. Through these advertisements, Coke was able to win a global following. Foreign Transactions In their quest to globalize and expand to other international markets, the Coca-Cola has made various transactions with various foreign exchange markets. A recent announcement by the company is that it has entered into a binding agreement to purchase an initial minority equity shareholding in the Chi Ltd. Company located in Nigeria (Team, 2016). The aim of this transaction is to create a strategic relationship with the Chi Company, which is a leading juice and dairy company in Nigeria. The initial investment that Coca Cola has made in Chi Ltd is just 40% even though the company seeks to increase its equity in the future to about 100% depending on whether they will be allowed to do so. Diversification AN ANALYSIS OF THE COCA-COLA COMPANY 6 Chirani and Effatdoost (2013) describe diversification is a process through which companies seek to maximize their profits and sales by coming up with new products for new markets. Through diversification, companies can reduce the risk due to them and maximize their returns by investing in areas that would cause a different reaction. The importance of diversification is that it helps to reduce the volatility of the company's portfolio over time (Team, 2016). Considering the change in consumer tastes and preferences, the Coca-Cola Company should consider diversifying to health drinks other than carbonated beverages. Investment Investment is the act through which companies set aside a part of their money or capital to venture into a new business line to obtain additional profits. Investments guarantee companies extra returns that could be used for future use or be plowed back into the business to enable it to expand. The operations of Coca-Cola Company inform the need to invest in another line of business other than in the manufacture and distribution of carbonated soft drinks. Management A company's management is tasked with the responsibility of creating an organized system and integrating the processes of an organization to ensure high efficiency. In effect, management is a term used to describe a group of people that are charged with the responsibility to design the structure of an organization, as well as foster interaction in various company aspects. The role of management is to carry out strategic planning functions (Cieliska, 2007). Of key importance to management is the need to ensure that they participate in various aspects of the designing process by creating an organization architecture and structure. They are also meant to identify parts of the organization that add value and ensure that the entire plant functions AN ANALYSIS OF THE COCA-COLA COMPANY 7 together for effectiveness and efficiency. In contemporary firms, organizational design is constantly changing. As a result, it is the responsibility of management to ensure that they create dynamic designs with an ability to withstand various challenges and technological changes for the purpose of gaining a competitive advantage. Exchange Rates Exchange rate refers to the price of a currency as compared to another currency. The effects of exchange rates on a business are felt either through appreciation or devaluation. A devalued exchange rate makes exports are cheaper than imports and firms undertaking export trade benefit. However, businesses involved in the import of raw materials face higher importation costs. Ideally, appreciation makes exports expensive, consequently, reducing the competitiveness of companies dealing in the export trade. Being that the Coca-Cola is a global business, it is bound to be affected by fluctuations in the foreign exchange rate of various countries, which affects its general profit levels. Currency Forecasting Currency forecasting refers to the analysis of interest rates and the ability to evaluate their consequent effect on business decision making. Currency forecasts are useful for making various business decisions, especially those that involve entry into new markets where there are limited natural hedges. For this purpose, therefore, companies can assess the long term and short term economic expenditures as well as requirements for funding and short-term investments. The global nature of the Coca-Cola Company implies that it is continually venturing into new and emerging markets. In this case, therefore, forecasting is imperative to determine the AN ANALYSIS OF THE COCA-COLA COMPANY initial investment level that the company may require, as well as, the possible financial challenges that the company could face in the exploitation of these markets. 8 AN ANALYSIS OF THE COCA-COLA COMPANY 9 References Cieliska K., 2007. The basic roles of manager in business organization. Annual. AR Pozn. 385, Economics 6: 3-12 Chirani, E., & Effatdoost, M. (2013). Diversification strategy, a way toward the competitive advantage. Kuwait Chapter of the Arabian Journal of Business and Management Review, 3(1), 23. Madura, J. (2011). International financial management. New York: Cengage Learning. Team, T. (2016). How Coca Cola Is Continuing Its Portfolio Diversification Strategy. Forbes. Retrieved from: https://www.forbes.com/sites/greatspeculations/2016/02/25/how-cocacola-is-continuing-its-portfolio-diversification-strategy/#18f63d6c2adf The Coca Cola Company (2017). The history of bottling. Retrieved from: http://www.cocacolacompany.com/our-company/history-of-bottling