In recent years, The Coca-Cola Company (KO) is facing decreased global demand for its soft drinks due to customer health concerns about the sugary drinks. It has responded to decreased demand with a variety of ways, including cost cutting measures.(Trivia: Coke sells Coca-Cola in every country in the world except for Cuba and North Korea.)

In January 2015, Mike Esterl of the Wall Street Journal reported that Coke is using zero-based budgeting throughout its organization. In addition, Coke is standardizing operations across its business units. It expects to complete the cost-cutting by 2019.

Required:

You are the Accounting Manager coordinating the budgeting process.

You need to compose a Business Memo to management responsible for preparing budgets for their own departments at The Coca-Cola Company.

Use the information from the discussion draft you posted, your classmates posts, and the comments received from classmates.

Your memo must include the following information (see the rubric for specific grading instructions):

Note: You are not simply responding to the questions, but weaving the information from the Week 12 Discussion Draft posts into a memo that speaks to the role listed above.

What is zero-based budgeting?

Why might Coca-Cola want to use zero-based budgeting?

Do you expect that managers at Coca-Cola would embrace zero-based budgeting? Why or why not?

Why would standardizing operations across business units help with cost-cutting?