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Part 3 - Financial Analysis

Nearly every problem or issue confronting an organization has a financial or
budgetary impact. For instance, staff turnover has not only a direct cost on
recruitment expenses, training costs, and productivity, but also an indirect
cost related to the loss of organizational learning. In Part 3:

 Detail the financial implications to the organization related to your

problem or issue What are the organizations current financial
capabilities? What are some of the financial strengths and
weaknesses?
 Explain the additional costs that may arise if the problem or issue is
not resolved effectively.
 Discuss any ethical issues that are associated with the financial
implications and identified problem.

The complete instructions for Parts 1, 2, 3, and 4 of the Final Paper can be
found in Week 5 Final Paper page.
The Part 3 – Financial Analysis paper

 Must be two to three double-spaced pages in length (not including

title and references pages) and formatted according to APA style as
outlined in the Writing Center’s APA StyleLinks to an external
site. resource.
 Must include a separate title page with the following:
o Title of paper
o Student’s name
o Course name and number
o Instructor’s name
o Date submitted
 For further assistance with the formatting and the title page, refer
to APA Formatting for Microsoft WordLinks to an external site..
 Must utilize academic voice. See the Academic VoiceLinks to an
external site. resource for additional guidance.
 Must include an introduction and conclusion paragraph. Your
introduction paragraph needs to end with a clear thesis statement
that indicates the purpose of your paper.
o For assistance on writing Introductions & ConclusionsLinks
to an external site. as well as Writing a Thesis
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StatementLinks to an external site., refer to the Writing

Center resources.
 Must use at least two scholarly sources in addition to the course
text.
o The Scholarly, Peer Reviewed, and Other Credible
SourcesLinks to an external site. table offers additional
guidance on appropriate source types. If you have
questions about whether a specific source is appropriate
for this assignment, please contact your instructor. Your
instructor has the final say about the appropriateness of a
specific source for a particular assignment.
 Must document any information used from sources in APA style as
outlined in the Writing Center’s Citing Within Your PaperLinks to an
external site. guide.
 Must include a separate references page that is formatted
according to APA style as outlined in the Writing Center. See
the Formatting Your References ListLinks to an external
site. resource in the Writing Center for specifications.
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MGT490 Week 3 Assignment

Name

University of Arizona Global Campus

MGT 490 Strategic Human Resources Planning

Bobbie Pippin

January 23, 2023

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Financial Analysis

Introduction

Understanding financial data is becoming increasingly important in today's business

climate. Companies need to understand how their investments and operations affect the

bottom line and ensure they can anticipate potential issues before they become a problem. The

financial analysis examines financial data to assess performance, identify problems, and make

informed decisions. Financial analysis can involve examining a company's financial

statements, studying economic trends, evaluating risk factors, and assessing the financial

health of an organization. This information allows companies to make better investment

decisions and ensure long-term success. With the right tools and knowledge, financial

analysis can help businesses gain valuable insights into their finances and operations. This

paper will discuss the basics of financial analysis, its importance, and tips for successful

analysis.

Coca-Cola is a global powerhouse with a long history of success. The company has a

strong financial position, with a large market share and significant profits. However, the

company needs some help in its business, including declining sales in key markets and intense

competition from rivals. The financial implications to Coca-Cola related to these issues are

myriad. The company's current financial capabilities are strong, with a healthy balance sheet
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and cash reserves. However, the company's bottom line has been impacted by declining sales

in key markets and increased competitive pressures (Furey & Friedman, 2012). This has led to

a decrease in profits, meaning that the company must find other ways to improve its financial

strength. Coca-Cola's financial strengths include its strong brand recognition, which allows it

to charge a premium for its products and maintain pricing power in the face of competition.

Furthermore, its diversified product portfolio ensures that the company can tap into different

markets, enabling it to generate revenue from multiple sources. Additionally, the company has

developed a wide network of distribution channels, further enhancing its market presence.

Coca-Cola faces some weaknesses as well. Its reliance on carbonated drinks means it

is exposed to changing consumer tastes and preferences, which could lead to lower sales if

customers shift away from carbonated drinks. Furthermore, Coca-Cola is vulnerable to

external factors, such as economic downturns or changes in government regulations which

could impact the demand for its products (Dauvergne & Lister, 2012). Additionally, its lack of

control over the production process leaves it exposed to cost volatility, which could lead to

lower profits. The company's current financial situation means that it can weather these

challenges and continue to grow. However, it will need to be mindful of its expenses and

invest wisely to maintain its position at the top of the beverage industry's top.

The Coca-Cola Company faces several financial challenges that could harm its bottom

line. The company has been struggling to grow its revenue and profit recently and has been

forced to take on a significant amount of debt (Banutu-Gomez, 2012). In addition, the

company is now facing additional costs that could further strain its finances. First, the

company is facing rising costs for raw materials. The cost of sugar, one of the main
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ingredients in Coca-Cola's products, has risen sharply in recent months (Frazelle, 2016). This

is likely to continue to put pressure on the company's margins. Second, the company is also

facing higher costs for marketing and advertising. With competition from other companies

intensifying, Coca-Cola needs to spend more money to keep its products visible. This

increased spending will eat into the company's profits. Third, Coca-Cola is also facing

increasing interest payments on its debt. As the company's debt load grows, so will its interest

payments each year (Wang, 2022). This will further reduce the company's profits. Fourth, the

company faces potential regulatory hurdles in some key markets. For example, soda taxes

have been proposed in several cities and states in recent years. If these taxes are enacted, they

would reduce demand for Coca-Cola's products and hurt the company's bottom line.

All these additional costs would harm the Coca-Cola Company's bottom line and

could lead to further financial difficulties. There are several additional costs that Coca-Cola

Company may face if the current issue needs to be resolved effectively. These costs could

result to:

 Decreased sales and profit margins

 Lost market share to competitors

 Damage to the Coca-Cola brand and reputation

 Increased costs associated with marketing and advertising campaigns to repair

damage to the brand

 Legal fees associated with any potential litigation

A few ethical issues are associated with the financial implications and identified

problems in the Coca-cola company. The first issue is that of child labor. The company has
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been reported to use child labor in some bottling plants (Le et al., 2017). This unethical

practice exploits children who are often forced to work in difficult and dangerous conditions.

The second issue is water shortages. Coca-cola has been accused of causing water shortages

in communities where it operates due to its high water usage. This is a serious ethical concern

as it can lead to dehydration and other health problems for people in these areas. The third

issue is environmental pollution. Coca-cola has been criticized for its environmental impact,

specifically the pollution caused by its bottling plants. This is an important ethical concern as

it can cause serious harm to the environment and the people who live near these plants.

Finally, Coca-cola has been accused of engaging in unethical marketing practices, such as

targeting children with its products. This is a serious ethical concern as it can lead to

unhealthy dietary habits and obesity in children.

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References

Banutu-Gomez, M. B. (2012). Coca-Cola: International business strategy for globalization.

The Business & Management Review, 3(1), 155.

Dauvergne, P., & Lister, J. (2012). Big brand sustainability: Governance prospects and

environmental limits. Global Environmental Change, 22(1), 36-45.

Frazelle, E. H. (2016). World-class warehousing and material handling. McGraw-Hill

Education.

Furey, T., & Friedman, L. (2012). Channel Advantage, The. Routledge.

Le, A., Jiang, J., Sandor, M., Stashick, M., & Zhang, L. (2017). Business Ethics: The Coca-

Cola Company. Jove's Bodega, 1(1), 35-45.

Wang, Z. (2022, December). A Comparative Study of Chinese and American Capital Market

Environment. In 2022 4th International Conference on Economic Management and

Cultural Industry (ICEMCI 2022) (pp. 1031-1045). Atlantis Press.