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Coca Cola and Business Cycles

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I need help with the following questions:

- How would you deal with the uncertainty in macroeconomic forecasts?
- How do business cycles affect the performances of Coca Cola?
- What could Coca Cola do to mitigate any undesirable effects of business cycles?

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The response addresses the queries posted in 950 words with references.

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//In this response, we will discuss how to deal with the uncertainty of macroeconomics forecasts for reliable and accurate decision making in the future. This will be explained with the help of various methods involving trend projection, exponential smoothing and econometric method, etc. We will also study the affects of the business cycle on Coca Cola's performance with the help of various phases like recession, depression, recovery and prosperity. It will help us know the company's prospects in critical times and various innovative strategies to serve its customers in the best manner.//

Uncertainty in Macroeconomic Forecasts

The uncertainty in macroeconomic forecasts involves risk and opportunity. Management focuses on several problems, including cost and demand of goods and services of the company. The company forecasts when they have to introduce any new product, pricing products and hiring new people. Forecasting involves predicting at regional, national and international level and macroeconomic predictions involve business investment, home building, consumer spending, exports, imports and government spending and purchasing (Hirschey, 2008).

There are various techniques that can be applied to deal with uncertainty, such as trend analysis and projection, qualitative analysis, exponential smoothing and econometric method. These methods help management make reliable, accurate decisions and avoid bias in implementation (Hirschey, 2008).

Affects of Business Cycle on Performance of Coca Cola

The business cycle refers to an economic fluctuation that ...

Solution provided by:
  • MBA (IP), International Center for Internationa Business
  • BBA, University of Rajasthan
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