Coca-Cola Company Case Study

It can be confirmed from the graph above, to show when the price of the product Coca-Cola was previously at P, the quantity before was at Q. later as the price rises to P1, the quantity demanded reduces to Q1. This shows the insightful of the indirectly proportional relation between price and demand of the product. Therefore, it can be incidental that Coca-Cola is an elastic product because the elasticity of demand results is more than 1. The key determinants of demand elasticity for Coca-Cola Company are the availability of substitutes. This is high in Coca-Cola, the pass of time, the compassion of the middle-income group consumers to price amendments and the discernment of the income of the population being spent on consumable goods. This

In the case study of the Coca-Cola Company, a key part of its operational expenses is positioned in by the manufacturing, production and bottling operations. The scrutiny of the accounting report of the Coca-Cola company in print in the year 2014 advocates that the international business of an American origin beverage company has a total cost of USD 2.1 billion which is roughly 11% of the total operating revenues of the beverage company. The operating income of the company is premeditated by deducting from the manufacturing cost or the Cost of Goods Sold and other related operating expenses from the total sales produced at the time. It can be additionally contingent that the carbonated beverage revenues and expenses are mainly subjugated by the Coca-Cola flagship product, whereas the other brands and products of the company operate as mid-level products with impartial profits and losses in the diverse period of operations. The operating periphery of the company is around 11% which is still not incredibly elevated as per the industrial necessities of the food and beverages industry. This advocates that the operational expenses, including the production, manufacturing, bottling and distribution expenditures of the company are high. These expenses combined with the huge amounts of expenses prepared into the marketing and promotional departments of the company have additionally motivated the scale of expenses acquired by the Coca-Cola Company in producing, distributing and marketing its products beneath different brands. The manufacturing and promotion of soft drinks is an extremely cutthroat business. The manufacturing and production methods have to be incessantly enhanced and the superiority conformance and superiority evaluation techniques have to be advanced and checkered at numerous periods of time and in addition make sure that the maximum superiority standards can be upheld