PART A – Coca Cola and Soda Industry- 500
Read the following articles:
https://www.nytimes.com/2015/10/04/upshot/soda-industry-struggles-as-consumer-tastes-change.html?_r=0
http://fortune.com/2016/03/29/soda-sales-drop-11th-year/
https://www.bloomberg.com/news/articles/2014-07-31/coca-cola-sales-decline-health-concerns-spur-relaunch
- What are the reasons that soda sales are declining in the US?
2. At the time of the article on Bloomberg.com about Coca Cola.
A.What percentage of the Coca-Cola company’s worldwide sales are soda?
B.What percentage of the company’s US sales are soda?
3. A decline in soda sales hurts the sales and profits of Coca Cola Company. What is the Coca Cola company doing about this? Describe THREE different strategic moves that the company has taken.
A.
B.
C.
4.Perform a basic 5-forces analysis of competition on the US Soda industry:
A. Who are the RIVALS that compete in the soda industry?
B.Who are the POTENTIAL NEW ENTRANTS in the soda industry?
C.What are the SUBSTITUTES for soda?
D.Who are the BUYERS in the soda industry?
E.Who are the SUPPLIERS in the soda industry?
5. What is drivingchange in the soda industry? What do you think the future of the soda industry looks like?
6.What doyou think the Coca Cola company should do about changing beverage tastes and survive and thrive as a company?
7.Look on page 138 of Coca Cola’s 2015annual report here:
For the entire (consolidated) company in 2015:
A. What was the total net revenues in 2015?
B.What was the income before income taxes in 2015?
C.Calculate what was the income percentage as a % of sales in 2015?
Of the consolidated company’s total net revenues in 2015, calculate:
D.what percentagecame from Eurasia & Africa?
E.what percentagecame North America?
F.what percentagecame Latin America?
G.what percentagecame Asia Pacific?
PART D – Lunch Business at Restaurants-(250)
Read the two Wall Street Journal articles here from May 2017. (originally from Wall Street Journal, but links below are free)
Going out for lunch is a dying tradition
Fast food chains and upscale restaurants want to bring you lunch
- What are the reasons that lunch is becoming a less profitable for restaurants?
2. Do you think these trends will change soon, or will remain in place for the future?
3. What are restaurants doing about this?
4. Imagine that you are giving consulting advice to an owner of a restaurant in a city on a crowded street in the middle of a city, who has a stable dinner business, declining lunch business, and pays high rent.
Describe 2 or 3 recommendations you have about what they could do to adapt to this situation.
1.
2.
3.
