Coca cola Enterprises Essay Example | Topics and Well Written Essays - 3000 words

Coca cola Enterprises - Essay Example In order to establish itself an enhanced space in the market, the company engages in social responsibilities. Coca Cola acts as a global employer and is ranked within the top 10 organisations (The Coca Cola Company, 2012). Products/services and geographic scope The company has launched some customised strategies while entering into international expansion plans. When entering into a new market, it tends to focus on business volumes. It invests in brand promotion through the use of visual and print media. Such brand promotional activities have helped the company to develop as well as to enhance its distribution. The distribution network is entrusted with the responsibility of the distribution of beverages to different corners of the targeted countries (The Coca Cola Company, 2010:23). In terms of expansion policies, Coca Cola is focusing on the creation of outsourced manufacturing, bottling and distribution that will work to cater for the local needs. The company engages in innovation in the realm of products, packaging, equipment and other activities designed to gain further penetration into both established and foreign markets. The invention of recyclable packaging through the use of plants helps to cement the company’s sustainable image. In Europe, Coca Cola focuses on enhancing its packaging activities. The family and economised plans serve the needs of all types of consumers. The company has formed ties with various sporting events, with a view to creating brand awareness and enhancing the loyalty of consumers. It has also diversified its business by entering into the production of juice and energy drinks (Bodden, 2008). Competitors Coca Cola’s main competitor within the soft drinks industry is PepsiCo; a firm that poses a serious threat to the company. Moreover, some local brands also provide some kind of competition for Coca Cola. Any kind of competition is healthy for a market, as it benefits the consumers (Porter, 1998). In spite of Coca C ola enjoying the major proportion of the market, it does not have the capability to exploit the market conditions, mainly because the substitute drinks companies have significant power. Some other competitors include RC Cola, Kola Real and Inca Kola (Bell, 2003). PEST analysis Political analysis: the company belongs to the non-alcoholic beverages group and falls under the Food and Drug administration. Coca Cola Company takes all the necessary steps in order to analyse whether the introduction of new ingredients will meet the required standards, and asks for advanced approval from the FDA. Coca Cola Company also abides by the rules set by the FDA on plastic bottled products. The company follows differentiated accounting policies which show a significant role in the reported results. According to the jurisdiction of various countries, the company is subject to income tax policies. It is also subject to import and excise taxes where outsourcing units are absent. Economic factors: befor e entering into a new market, the company always analyses the economic factors of the country in question. When a country experiences economic growth, the purchasing power of its population increases, enabling the company to market its products. Coca Cola currently uses 63 other currencies in addition to the US dollar. Fluctuating foreign currencies can impact revenue generation. The fluctuation of exchange rates affects the export of the products globally. The company uses the derivative financial instruction

Compare and cotrast the accounting conceptual framework and the Essay

Compare and cotrast the accounting conceptual framework and the accounting regulatory framework in the Uk - Essay Example The accounting conceptual framework in the UK One of the elements of the accounting conceptual framework, as applicable in the United Kingdom, relates to goal of financial statements that is to offer information on â€Å"financial position, performance and changes in financial position† of an enterprise (Rolfe 2006, p. 123). The subject information must however be significant to the entity’s stakeholders. Three documents, financial statements meet the objectives. Cashbook reports an entity’s financial position, income statement reports financial performance and cash flow statement reports and entity’s change in financial position. Basic assumptions in accounting are another set of factors that form elements of accounting framework. The framework identifies two assumptions: the going concern, an assumption that an entity will exist until unforeseeable future and upon which accounts are prepared, and accruals basis, a requirements that value in transactions are realized as soon as the transactions occur and not money on the transactions are received of remitted. Another element of the accounting framework relates to property of financial information and the framework identifies â€Å"understandability, relevance, reliability, and comparability† (Rolfe 2006, p. 124). These properties require that financial information be simple enough for users to understand, identify with users’ needs, be consistent, and offer a basis for comparison with the entity’s longitudinal information of comparison with other entity’s information (Rolfe 2006, p. 123, 124). The accounting conceptual framework also lists composition of financial statements. The balance sheet discloses an entity’s financial positions and items’ balances that contribute to the position. Assets, capital, and liabilities constitute the balance sheet. The income statement that discloses an entity’s sources of revenues and expenditure is another element of financial statements and shows an organization’s financial performance in a period. Statement of shareholders’ equity that illustrates changes in capital, and disclosures that concerns these statements is other components of financial statements (Rolfe 2006, p. 125, 126). Recognition and measurement are other aspects of the framework and required numerical disclosure of value of items and narratives that describe the numerical values (Weil 2012, p. 22; Spiceland, Sepe and Nelson 2013, p. 19). Treatment of capital and management of capital items are other aspects of the conceptual framework. The United Kingdom adopts financial approach to treatment of capital, an approach that recognize profit or loss on capital based on the difference between value of a capital at the end of an accounting period and the corresponding value at the beginning of an accounting period (Bellandi 2012, p. 271). The conceptual framework serves multiple purposes in accounting . It helps the accounting board in its role of reviewing current financial reporting standards and in formulating the standards for future applications. The accounting fram