Overview Of Coca Cola Company USA Commerce Essay


The Coca-Cola Company is an American multinational beverage corporation and manufacturer, retailer and marketer of non-alcoholic beverage concentrates and syrups. The company is best known for its flagship product Coca-Cola, invented in 1886 by pharmacist John Stith Pemberton in Columbus, Georgia. The Coca-Cola formula and brand was bought in 1889 by Asa Candler who incorporated The Coca-Cola Company in 1892. Besides its namesake Coca-Cola beverage, Coca-Cola currently offers more than 500 brands in over 200 countries or territories and serves over 1.7 billion servings each day.

The company operates a franchised distribution system dating from 1889 where The Coca-Cola Company only produces syrup concentrate which is then sold to various bottlers throughout the world who hold an exclusive territory. The Coca-Cola Company owns its anchor bottler in North America, Coca-Cola Refreshments.

The Coca-Cola Company is headquartered in Atlanta, Georgia, United States. Its stock is listed on the NYSE and is part of DJIA, S&P 500 Index, the Russell 1000 Index and the Russell 1000 Growth Stock Index. Its current chairman and chief executive is Muhtar Kent.

Critical External Relationship:

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Critical external relationship means the interest of the external parties regarding the activities of the company. Following are the critical external parties related to Coca-Cola Company:

Health Safety Organizations

Since studies indicate "soda and sweetened drinks are the main source of calories in [the] American diet", most nutritionists advise that Coca-Cola and other soft drinks can be harmful if consumed excessively, particularly to young children whose soft drink consumption competes with, rather than complements, a balanced diet. Studies have shown that regular soft drink users have a lower intake of calcium, magnesium, ascorbic acid, riboflavin, and vitamin A. The drink has also aroused criticism for its use of caffeine, which can cause physical dependence.

Environmental Issues

Where the widespread production of Coca-Cola takes place, it is feared that the water used to produce Coke may contain unhealthy levels of pesticides and other harmful chemicals. It has also been alleged that due to the amount of water required to produce Coca-Cola, aquifers are drying up and forcing farmers to relocate. Environmental degradation in the form of depletion of the local ground water table due to the utilization of natural water resources by the company poses a serious threat to many communities. Packaging used in Coca-Cola's products has a significant environmental impact but the company strongly opposes attempts to introduce mechanisms such as container deposit legislation.

Corporate Governance

Corporate Responsibility

Corporate responsibility is managed through the Public Policy and Corporate Reputation Council, a cross-functional group of senior managers from their Company and bottling partners. The Council identifies risks and opportunities faced by their business and communities and recommends strategies to address these challenges.

Ethics & Compliance

The core of the ethics and compliance program at The Coca-Cola Company is their Code of Business Conduct. The Code guides their business conduct, requiring honesty and integrity in all matters. All of their associates and directors are required to read and understand the Code and follow its precepts in the workplace and larger community.


Human Resource DepartmentOrganization Structure of Coca-cola U.S.A.:

Board of Directors

Audit Committee

Social Responsibility Committee

Group Strategy & Business Development Director

Chief Executive Committee

Group Commercial Director

General Counsel & Company secretary

Shareholder Department

Chief Financial Officer

Investor Relation Director

Group Director Supply Chain Services

Group Human Resources Director

Chief Information Officer

Group Public Affairs & Communications Director

Region Director 4

Region Director 3

Region Director 2

Region Director 1

African Zone

European Zone 2

Russian Zone

European Zone 1

Director Office of the Managing Director


Accounting Policies & Business Operations

Coca-Cola is guided by their established standards of corporate governance and ethics. They review their systems to ensure that they have achieved international best practices in terms of transparency and accountability. As a multinational company Coca-Cola consolidates its accounting statements with its subsidiaries in the act of producing, marketing and allowance of nonalcoholic potions, originally products of the coca cola company.

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While preparing the consolidated financial statement the accounts of the company and its majority possessed subsidiary is added. All intra-group accounts and transaction are removed.

It recognizes all the assets and liabilities and revenues earned and expenses incurred during the reported period.

The business operates according to the laws regarding competition, product safety and advertising and labeling, container deposits, recycling the protection of the environment and employment and labor practices. In U.S.A. activities regarding product and sales must follow the Food Drug and Cosmetic Act, the Federal Trade Commission Act, The Lanham Act, State Consumer Protection Laws, The Occupational Safety, Health Act and environmental issues.



Distinguish between charitable & profit making organization

At present there are many types of organizations. Import-Export, Merchandise, Production, Distribution are types of profit making organizations. On the other hand there are some organizations who work for the welfare and prosperity of the society, are non-profit organizations. The main distinguish between them are:




Profit Making



Giving service to the society

Earning profit by buying and selling goods or producing


Social welfare oriented

Profit oriented; by purchase, sale, merchandise etc.


Assets are not recognized as capital

Assets are recognized as capital

Profit Distribution

Charitable money is used for social welfare

Profit made by the org. is distributed among the owners


Wealth maximization

Profit maximization

VAT & Tax

Do not pay VAT or Tax

Must have to pay VAT & Tax


International Olympic Committee

Coca-Cola Company


IOC & Coca-Cola affected by London

As a Worldwide Partner of the Olympic Movement, we will meet or exceed all LOCOG's sustainability standards, in addition to any legal obligations. We are working in partnership with the London Organizing Committee of the Olympic and Paralympic Games (LOCOG) to deliver our shared ambition of making London 2012 truly sustainable.

All activities related to London 2012 are being managed according to a new British Standard for a sustainable event management. We are committed to achieving the International Standard for Sustainable Event Management, when this standard is published in 2012. As part of this process, we have created this policy document to set out our commitment to being a responsible sponsor of London 2012.

We have identified three key areas of focus:

Supporting LOCOG to deliver a zero waste Games

• All Coca-Cola packaged products sold at the Olympic Games will be in 100% recyclable PET packaging which will contain 25% recycled plastic.

• We are working with LOCOG to help enable visitors to the Games to recycle their empty packaging. Our vision is to 'close the loop' by ensuring all empty bottles can be recycled back into new bottles.

• In order to minimize the environmental impact of our supply chain, we are supporting our suppliers to create processes for minimizing waste and maximizing recycled content and reuse of materials. Moreover, we will use recycled materials wherever possible, from staff uniforms to building materials.

Carbon reduction and compensation:

We are committed to growing our business without increasing our carbon footprint.

At Games Time, we will map, measure and minimize the energy use and carbon emissions across every part of our Olympic Games program and are taking substantial measures to reduce greenhouse gas emissions from our activities.

For example for use at London 2012, we have already invested in a state-of-the-art low carbon warehousing and storage facility, have purchased a fleet of biogas vehicles to help deliver our drinks to the venues, and will ensure that all the coolers installed in Olympic venues are HFC free.

We will compensate for any unavoidable emissions, thus ensuring a carbon neutral presence at the London Games.

Promoting health and wellness

The Coca-Cola Company (TCCC) are strong supporters of London 2012's pledge to use the inspirational power of sport to get young people active, regardless of their physical ability, and to promote health and wellness across all aspects of life.

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At the London 2012 Olympic Games, we will offer a broad portfolio of drinks. Based on previous Games, we expect that three-quarters of the drinks consumed will be juice, water or low and no sugar variants of our much-loved brands. We are proud to include British water Schweppes Abbey Well as part of our offering. A well as being a headline sponsor of the Olympic Movement and sponsor of many other global and local sporting events, we also support grassroots physical activity.




Geographic Department - Grouping activities on the basis of territory. If an organization's customers are geographically dispersed, it can group jobs based on geography. For example, the organization structure of Coca-Cola has reflected the company's operation in two broad geographic areas - the North American sector and the international sector, which includes the Pacific Rim, the European Community, Northeast Europe, Africa and Latin America groups.

Regional Board-Regional boards are branch offices of a company's home office that markets, underwrites, and services the company's lines of business within a specified geographical area.

Production Department - Grouping activities by product line. Tasks can also be grouped according to a specific product or service, thus placing all activities related to the product or the service under one manager. Each major product area in the corporation is under the authority of a senior manager who is specialist in, and is responsible for, everything related to the product line.

Marketing and Sales Department- Marketing identifies prospects that will lead to the sale. Marketing is concern about client needs and satisfaction. Marketing department delivers the product to customers through sales.

Finance Department-Finance department of an organization that manages its money. The business functions of a finance department typically include planning, organizing, auditing, accounting for and controlling its company's finances. The finance department also usually produces the company's financial statements.

Personnel Department - This department will do the jobs of hiring and training and placing employees and for setting policies for personnel management and also payroll management.


Management Information System:

Management Information System (MIS) provides information that is needed to manage organizations efficiently and effectively. Management information systems involve three primary resources: people, technology, and information or decision making. Management information systems are distinct from other information systems in that they are used to analyze operational activities in the organization. The term, MIS is commonly used to refer to the group of information management methods tied to the automation or support of human decision making.

Following are the modules of MIS

The Nominal Ledger: It is known as the general ledger, is the main accounting record for a company's financial transactions. It is composed of a chart of accounts which are categorized as assets, liabilities, equity, revenue and expenses. The detailed financial transactions are recorded using a double-entry bookkeeping system, meaning that one of the accounts will be debited and another account related to the transaction will be credited.

Example: Purchase (Expense Item)

Building (Asset Item)

Non Current Assets: It is company's long-term investment, in the case that the full value will not be realized within the accounting year. Noncurrent assets are capitalized rather than expensed, meaning that the company allocates the cost of the asset over the number of years for which the asset will be in use, instead of allocating the entire cost to the accounting year in which the asset was purchased.

Account Receivables: Sales made but not paid-for by the customers (trade debtors). Accounts receivables are shown as current (short-term) assets in a balance sheet and are, in fact, unsecured promises by customers to pay in the future. This module ensures the amount owed by the customers and also calculates discount. An integrated MIS also ensures each transaction having effect on cash book, inventory records, fixed assets, job costing and sales order.

Account Payables: Money which a company owes to vendors for products and services purchased on credit. This item appears on the company's balance sheet as a current liability, since the expectation is that the liability will be fulfilled in less than a year. When accounts payable are paid off, it represents a negative cash flow for the company. It helps company to control and maintain cash outflows. Company can prepare ledger accounts, tax calculation and trial balance through this system.

Payroll: In a company, payroll is the sum of all financial records of salaries for an employee, wages, bonuses and deductions. Payroll refers to the amount paid to employees for services they provided during a certain period of time. In this module user is able to fix the limit of payroll. It maximizes the ability of the user and minimizes the workload and time.

Job Costing: Job costing involves the calculation of costs involved in a job done in discrete batches. These costs are recorded in ledger accounts throughout the life of the job or batch and are then summarized in the final trial balance before the preparing of the job cost or batch manufacturing statement.

Inventory: Inventory or Stocks are current assets held for sale, or for processing and subsequent re-sale.

Stocks should be valued at the lower of:

Cost (purchase price + the cost of any processing)

Net realizable value

Socks may consist of:

Goods that will be sold as they are: finished goods for a manufacturer, most stocks for a retailers

Work in progress: unfinished goods

Raw materials.