Management of Financial Resources and Performance - Coca-Cola - Case Study Example

MANAGEMENT OF FINANCIAL RESOURCES AND PERFORMANCE By The of the The of the School The City and State where it is located The Date Task: I Coca-Cola is the company of focus. The company has far and wide base of stakeholders who aid in effective management of operations. This stakeholders range from consumers, bottlers, customers, nonprofit organizations, partners, suppliers all couple of other people having interest in the company business. The company has established critical essence of addressing the differing desires of the company stakeholders concurrently. At some point, some of the stakeholders have huge control on the decision- making process of the company while some stakeholders offer supplementary aids on the company (Tham & Vélez-Pareja, 2003, Pp 456). Partners of the company offer technical and financial support to the company continuously.Financially the largest beverage company raised close to $5 billion through the biggest bond offering ever in attempts to refinance the overgrown debt after noting that the borrowing costs fell to a record low. The company issued $500 million segments on the fixed and floating rate model securities that were due in 2006 (Reeve, Warren, & Duchac, 2012, Pp3485). In that case, two of the $1.25 billion sections were to mature in 2018 and another one in 2020 while $1.5 billion had a period of ten year bond. The transaction of the Atlanta based company come duly after the company had recorded a 5.9 percent elevation in the third quarter profit of close $2.45 billion. On similar model, the CEO of the company plans to increase the prices of the beverage and attract additional consumers of the drink. The company had focused to earn close to $200 billion in the bottlers sections from global revenue on reaching 2020 thus doubling the amount earned in 2010. The company exhibits extensive worldwide footprints, stable and strong or robust free cash flows and very healthy credit metrics (Tham & Vélez-Pareja, 2003, Pp 446). The financial proceeds in the end of 2010 exceeded the $4.5 billion offering made on November the same year and were applied ion the repayment of the financial offering. The proceeds could also incorporate in the repayment of the $1.25 billion which is the 0.75 percent portion bonds that was due in Nov. 15 2010 (Schofield & Bowler, 2011, Pp434). The company also anticipates the maturation of the $1 billion floaters and underlying $900 million which is the 3.625 percent notes both were to mature in March the same year (Friedlob, 2002, Pp675). The company well-defined system of management referred to as Ceres (Clark, 1857, Pp234). This group entails of the national coalition of the investors, public interest groups and environment organizations which works with the company to create sustainable management for the company (Reeve, Warren, & Duchac, 2012, Pp3423). In 2012, the company conducted a host of various members , some associates from the company, other notable stakeholders which included the UCI environmental accountability, world resource institute, missionary oblates of Mary Immaculate Walden assets management and a representative of alliance for the a healthier generation which created comments concurrently. Ceres held a meeting distilling the perceptions of the shareholders on regards to what was undertaken in the sustainable initiatives and process of reporting which the shareholder desired an improvement (Clark, 1857, Pp234). The company subsequently implemented the suggestions and recommendations on the report availed. The stakeholder and Ceres hold regular interchanging talks that delve into variety of issues inherent to the management. At one meeting, issues regarding the disclosure involved of critical revelations of suppliers, improvement of the disclosure on efforts associating with nutrition and energy balance of the Coca-Cola beverages. There was also Clarification of the company policies, vision and the corresponding issues on the strategy thus amplifying the rates of the agricultural sustainability. Ceres also derived concerns on the context and corresponding strategy that influence main external trends that had impact in the company management. Ceres Has also evaluated the capability of the supplier programand fundamental sustainability efforts. Critical prominent placement for the topics inherenton reports significantly elevated disclosure issues efforts (Friedlob, 2002, Pp656). Distinctive approach on sustainable agriculture and third party global challenges in combination with strategic initiatives to eradicate environmental risks as indicated in the annual reports. The company comprehends the essence of engaging the stakeholders on the emergent issues of running the company and thus undertakes consistent review of the relevant reports (Reeve, Warren, & Duchac, 2012, Pp3423). The company incorporates the continued internal and external stakeholders engagement thus determining the relevant areas of reporting and thus entailing essential explanations and concurrent clarification. In 2013, the European business unit became part of the hundreds of stakeholders enjoined to the dialogues topics on nutrition and other entailed physical activity. Appendix1: coca-cola manufacturing plant The enjoined activities on the Europe include the underlying EU platform for essential action and close physical activity.EU health platform is a platform that avails a forum for the expansion of the European –level organizations that are willing to commit in the action of providing trends in the management of the dietary and associated issues activities (Reeve, Warren, & Duchac, 2012, Pp3425). The membership of the forum bases on range from food companies to essence of consumer protection NGO. Coca-Cola Europe engaged with related EU platform through the Union of European soft drinks group association. Another stakeholder is the International Sport and Culture Association (ISCA) which is global forum open to organizations who work within the sports field. The membership of the association includes 130 organizations, entailing NGOs and stakeholders from the private and public sectors. This group also has another section of 40 million individuals from 65 member countries. Coca-Cola has been behind the support of games and is therefore believed to have a conjoined interests with ISCA and thus sought a collaborative association. Via the Coca-Colainitiative foundation, the company had availed support to ISCA in ambitions and plans to promote the physical activity in Europe. Under such initiatives the company elevates political agenda in the locality thus aspiring close to 100 million Europeans to move intensively by 2020 (Friedlob, 2002, Pp670). The Ensemble Prévenonsl’Obésité Des Enfants or (EPODE) is another stakeholder member of Coca-Cola. This is a network that entails a large capacity; coordinated approach that facilitates the execution effectiveness and sustainable strategies is addressing the several challenges. EPODE constitutes mainly of three components: private and public partnerships, political commitments, community related actions and associated evaluation. The multi-tasking nature is championed through EPODE has earlier indicated very positive results in prevention of interlinkedchildhood obesity in such countries like France and Belgium (Schofield & Bowler, 2011, Pp434). The EPODE methodology is being implemented in various countries world over in virtually three continents which includes approximately 20 million people. Coca-Cola has been a founding member of the group since creation in 2011. Coca-Cola values the pride it derives from the promotion of the eradication of the obesity and some of the related illness or risks it exposes the society. The Coca-Cola foundation offered an award of $1.07 million in support of EPODE project which would concurrently elevate the outcome of the obesity prevention programs with the intention of compounding the number of children and adolescent reached by the plan come 2016 (Hood & Lee, 2011, Pp132). Task II: Barclay’s audit The selected company is Barclay bank which is listed in the FTSE and its current audit position highlights the bar of the international performance. Barclays in a major financial service provider organization based in the United Kingdom (UK) and is indisputably the leader in the provision of the coordinated multinational and global services with regards to the financial sector. The current financial position of the firm indicates a decreasing trend the issues concerning the profit margin as indicated in the financial flow 121, 907 (2012), 149, 673 (2011), 131,400 (2010) in million euro pounds. The company is proud of having close to 80,000 employees in virtually 70 countries worldwide. The company aspires to be customer –oriented and innovative with a mission of delivering extensive and high quality products and concurrent services thus contributing positively to the raising of the living standards of the communities and societies that consumes it services. Mr. mark Carawan commenced his job as the director of the Barclays internal audit unit in 2004 and since supervised numerous initiatives designed in aid the organization achieve the mission. Appendix1: FTSE listing of Barclay bank The department has been effectual in the determination of the significant roles of mitigating risks under the involvement of the proper communication, highlighted and amplified communication, and consistencies methodologies and amplified awareness model. Barclays has subdivided their baking services to various sections including clusters, Barclay capital, international , private clients Barclay card, global investors, primary business units and UK banking . Every section has its own audit leader in the segment supervising operations of the respective unit. Caravan’s managerial adept has created a platform for escalated communication and thus constant communication uplifts extensive interlinking of the various sections of the department thus compounding efficiency of the organization. The extensive audit function counters Barclays structure and therefore individual business clustered model is excellently applied in the auditing of the financial standing of the firm. The firm enjoys close to 222 auditor services with teams dispersed in various countries. Singapore, Madrid, Hong Kong, Geneva, New York, San Francisco and Johannesburg are the cities with various distributions of the auditors worldwide. The firm reinstated three format model for communication of the audit issue which commences from the delivery of the report to Carawan, who delivers the same report to the CEO subsequently the report is delivered to the board chairman and interlinked board committee chairman. With the plans to expand the model of communication all the channels are kept open and the three distinct organs converge monthly. The sessions provided exclusive times for the highlighting of the emergent issues of the firms thus exposing any inherent risks to the company. The company has board of governance that entails mainly professionals in collected from the audit structure and reports their consolidated findings to Carawan who is obliged to convey the message to the audit board committee and the corresponding risk analysis team for accuracy and controls. The notable risk regions observed this committee include issues regarding credit , liquidity, market , legal, regulatory , reputation , brand , market strategic change , operational and associated non-financial risks , finance, technology, strategic planning and budgeting (Tham & Vélez-Pareja, 2003, Pp 445) . The overall forum is presided over by the quality assurance director. The board of governance has the underlying responsibility of formulation of the certain audits jobs and ascertaining of assurance to the board (Clark, 1857, Pp234) . The audit team concurrently has the sole role of compiling and reviewing the group with reference to the Board Governance standards (Tham & Vélez-Pareja, 2003, Pp 456). The bank has intensively sought models for management of risks and provided sufficient controls on significant areas that elicit critical regards. The extensively exposed board leadership has captured, measured, monitored, reported and controlled the notable market risks. The exposure of the eminent conditions avail the essential effectiveness desired in management control and regulation, risk regulation and the availed system control (Baker, 2010, Pp574). The vitality of this reveals that apart from engaging on the silo behavior and examination of numerous portions vertically in each business entity, the essence would expose the newly and uniquely needed typical policies that determine the direction of the firm. According to Carawan, irrespective of the location or region of base of the Barclay branch , the company practices specialized set of standards models for insight into each sectional unit. The process of standardizing the mode of auditing internationally exposes challenges to the company management. The company has a especial set of group internal audit operating committee that has representation from the group internal audit business unit. The actual representative in each location has the role of ensuring frictionless operation of the IA team. The various representatives notes the essence of undertaking the reporting process , headcount , salaries , premises and relevance of compliance with the stated environmental subsequent safety procedures in each country. This committee is presided over by the Barclays internal audit COO. Another notable forum is the executive committee which comprises of the heads found in each audit of the business units. The group is entitled with gathering and assessment of the information and other outcomes of the IA decisions with regards to efficacy of the outlined policies, methodologies, procedures and availed toolkits. The panel proposes the relevant adjustment to be undertaken to make the noted decision work effectively. For instance, the committee offers a model for analysis of and availing of recommendations regarding the third party suppliers and the committee is presided over by Carawan. All the elaborated committee avail their findings to the Board for ratification process. The board comprises of mainly of four members from GIA who are typically senior executives. Caravan deliver the outcome of the Board to the Group Boards audit Committee commonly referred to as BAC for the critical decisions on the changes especially on the GIA’s operation policies and other mandates. Business planning and current strategy in the firm entails perpetual advancement process in performance is notably the center and the main motivating cornerstones for caravan and his team. Under his first year term as the leader of director , he noted several main regions for improvement which notably included the extensive and outlined assessment of the audit work intensively (Albrecht, Stice & Stice, 2011, Pp45). The gauging and re-assessment of the work provided the essential analysis of the main targeted areas for alteration and subsequent improvement of the methodologies applied in the undertaking of the entire audit process. Frequent scrutiny of the mode of data analysis also exposes touchy and delicate issues with regards to the process of implementing new methodologies of the managerial operation. Out of the continual scrutiny comes the outcome that most of the earlier modes applied in the auditing process have totally been converted to suit current reverberated standards suitable for the company especially with the trendy changes in the technology and other platforms for communication (Baker, 2010, Pp564). The company entailed various accounting techniques in actualizing the current solid foundation it bases on. The regards on deposits and properly aligned savings accounts suit the running of day to day operations of the company. The company also adopts the tactical efficacy of optimizing the working capital with the inclusion of the current pooling techniques and stringent liquidity management. Frequent upgrades are made continually after ascertainment of the much desired safety in them. New models of auditing include enterprise wide auditing to Barclays which means that auditing is undertaken across the organization with regards to the governance standards and associated key themes entailed. The company has step-wisely shifted from the former model of auditing which was refer to as high- altitude auditing which further indicates that the auditing personals no longer consider whether the management has the correct governance framework to conduct satisfactory controls. The new option audits involve conduction of substantial testing, sampling audit controls (Albrecht, Stice & Stice, 2011, Pp45). Task III: 123 LTD Company With regards to LTD Company which aspires to establish a manufacturing company in the provided regions, the selection of the region with the least cost incurred would be very vital in the management of all the operations of the company. Within the list of the provided most preferred regions USA provides the most rewarding region and prominent for the survival of the manufacturing company. Considering the USA environment provides the largest expected return from the provided list, the company stands to benefit greatly from the market. Running costs and expected returns are all continuous financial flow process whose difference provides the expected profit margin for the manufacturing entity. The consideration for the approval fee is typically limited since all the three counties have availed closely competing rates which are 22, 25 and 30 pounds respectively. On contrary, France royalty expenses and very tiny profit margin thus making it the least popular country out of the three listed countries. Switzerland takes the second position as the country with desirable environment under which the business can be conducted prosperously. country Running cost Expected cost Approval fee royalty Profit margin USA 210 700 22 Na 465 France 190 450 25 25 210 Switzerland 200 665 30 Na 430 Apart from the exposure in terms of cash flows and cost involved in the process, American market is also wide as compared to the rest of the of the countries listed. American market a rich top level earning class just like the rest of the highlighted countries but American market is considerably wide hence the anticipation on luring the luxury consuming class who are the main consumers of the luxury designs (Mizrahi, 2013, Pp342). Noting that the business has ten years involvement in clothing design industry , it hence has grasped the relevant manpower and sufficient funds to enable it crew successfully in the very competitive American market without much complications. While borrowing is quite risky especially with initiation of the company branch in another region, it would have to contemplated about in order to justify the relevance of borrowing the money of which if the outcome indicates negative results then the company would rather apply its savings in establishment of the manufacturing company in another country. Prefeasibility offers significant information regarding the new region of undertaking business (Mizrahi, 2013, Pp352). Contrarily, the outcome might be very disappointing as in some cases the new business environment might turn out not to be very impressive. Enjoined to the business success is the critical evaluation of the anticipated supply and demand prospects for the business. The managerial committee of the business has the free will to consider the income approach, market data approach or even cost approach in evaluating the success potential of the business entity (Mizrahi, 2013, Pp341). The data availed reveals mainly the cost process entailed in the evaluation of the market, but the essence of business lies with assessment of the relevant total evaluation of the categories associated with entire three business unit entailed in the selection of the business direction. Bibliography SCHOFIELD, N. C., & BOWLER, T. (2011). Trading the fixed income, inflation and credit markets: a relative value guide. Chichester, Wiley. BAKER, R. (2010). The trade lifecycle behind the scenes of the trading process. Hoboken, NJ, Wiley. http://www.contentreserve.com/TitleInfo.asp?ID={FEE81A7C-AF62-4FCD-AAD8-C58A57FD7620}&Format=410. (1857). The journal of jurisprudence. Edinburgh, T.T. Clark. LARO, H. D. (2005). Business Valuation and Taxes Procedure, Law, and Perspective. 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