Comprehensive Case – Case Study Example

Download full paperFile format: .doc, available for editing

In 2012 the company saved 0.58million cubic metres of water by the help of this program (Bodden 75-9). This value adder’s cubic metres were computed from the financials that were from the four quarters in 2012. The total amount of money that was saved by the company is shown by the calculations in the table below. The table shows the amount of cubic metres saved each quarter, the average amount of dollar that is saved per quarter together with the total amount saved for the whole year from the water usage reduction. The second value adder available for the company is the efficiency in capital structure.

In 2012 the company saved $42M in interest expense as a result of low borrowing costs and ability to raise funds at low effective costs (Petretti 56-63). The total amount of money that was saved by the company from this value adder is further shown in detail by the respective table. The table shows the metrics saved in the 2010 through to 2013, the average amount of dollar that is saved per year together with the total amount saved on average for the whole year 2012 from the low cost borrowing. The last value adder for the Coca Cola Company is the electricity efficiency improvement, which focuses on how to improve the company’s electricity usage efficiency.

A look at the period (2010-2013) shows that the company is saving $ 2.74 for every kilowatt-hour per terabyte. This value adder’s metric was calculated using its financials of the years 2010 to 2014 as well as Atlanta’s commercial user’s electricity cost or price. The table shows the cost of electricity used by the company as well as the effect on shareholders’ value. A thorough and extensive research conducted on the company also revealed some inherent risks that the company needs to address.

The Coca Cola Company borrows funds and it is therefore subject to interest rate fluctuations and investment changes. These fluctuations pose a risk on the company and may therefore lead to sudden changes of the Coca Cola expenses. In addition, the company possesses marketing risks that can considerably impact its image. The company needs to address these threats for it to be successful in the future. First Value Driver: Water Reduction The Coca Cola Company adopted water stewardship in 2012.

This program has resulted to a considerable reduction in the cubic metres of water usage. The company’s total water consumption in the year 2012 was 8.82million cubic metres. It reduced from 9.4million cubic metres in the year 2011.

Works cited

Albrecht, W S, Earl K. Stice, and James D. Stice. Financial Accounting. Mason, OH: Thomson/South-Western, 2007. Print.

Bodden, Valerie. The Story of Coca-Cola. Mankato, MN: Creative Education, 2009. Print.

Fernando, A C. Business Ethics and Corporate Governance. Delhi: Dorling Kindersley (India), licensees of Pearson Education in South Asia, 2010. Print.

Petretti, Allan. Petrettis Coca-Cola Collectibles Price Guide: The Encyclopedia of Coca-Cola Collectibles. Cincinnati: F+W Media, 2011. Internet resource.

Reuvid, Jonathan. Managing Business Risk: A Practical Guide to Protecting Your Business. London: Kogan Page, 2013. Print.

Cohen, Nevin. Green Business: An A-to-Z Guide. Los Angeles: Sage Publications, 2011. Print.

Download full paperFile format: .doc, available for editing
Contact Us