The Coca-Cola Company uses an EVA approach to performance measure what it calls economic profit. Go to Coca-Cola's website (http://us.coca-cola.com) and view the 2007 Annual Report on Form 10-K ( http://www.coca-colacompany.com/investors/2007-annual-report-on-form-10-k). Discuss the level of detail provided by the company on their financial position. Review how the auditors report on the companies internal controls. What is your assessment of Coke's ROI, financial disclosures, internal controls, and the impact of economic profits?
Marketing Plan Pro software will be used to complete this assignment. Complete these sections under 'Tasks' in the Marketing Plan Pro software:
Cash is King:
The purpose of this section is to convey the information from the Cash Flow Statement and the Balance Sheet as they translate the firm's marketing efforts into financial results. This is another critically important section in that these financial statements help understand the cash requirements as well as the accumulation of assets and liabilities. For instance, if the firm requires cash to help manage expenses while waiting for customers to pay, the firm will need to rely on other sources of funds. The firm might wait for three months between turning a customer's invoice in to cash. The expense budget and sales forecast are the keys to creating these financial statements.
The purpose of this section is to provide the major points of the financial plan. The software includes this section so the firm can provide highlights for those who do not want to read all of the details of the specific financial sections.
Coca-Cola Company is one of the leading non-alcoholic beverage company operating across the globe. The company uses an EVA approach to measure its performance. The following section will review the 2007 Annual Report on Form 10-K and will explain the level of financial details provided, auditors report on internal control and an assessment Coke's ROI, financial disclosures, internal controls and the impact of economic profits.
Coca-Cola Company's 2007 Annual Report on Form 10-K has provided an adequate detail about the financial position of the company. The financial statements have been prepared in conformity with the accounting principles and it also includes certain amounts that are estimated by the internal auditors and management of the company (The Coca-Cola Company, 2007). The management of the company is responsible for establishing the internal control over the financial reporting. The internal control mainly comprising of the internal audits and management reviews provide rational assertion regarding the reliability of financial reporting and preparation of the consolidated financial statements. The auditors have reported that the company has maintained an effective internal control on the financial reporting, which is based on the criteria of Internal Control/Integrated Framework issued by the Committee of Sponsoring Organizations of the Tread way Commission (The COSO criteria). It is also reviewed that the internal control may not be able to detract misstatements due to inherent limitations (Financial Statements and Supplementary Data, 2007). Coke invested in a lot of acquisitions and mergers, whose returns were as good as expected. The company did not face any losses due to any of these investments. The internal control has been effectively managing the financial reporting and this has also positively impacted the economic profits in $millions in terms of goodwill, trademarks and franchise rights.
Wal-Mart Stores, Inc. is a multi-national retail chain that runs departmental stores all across the world. While developing a marketing plan for ...
The solution provides an analysis of the Coca-Cola 2007 annual report and a sample WalMart marketing plan.