Tuesday, August 13, 2019
Comprehensive Case Study Example | Topics and Well Written Essays - 2000 words
Comprehensive - Case Study Example The table shows the amount of cubic metres saved each quarter, the average amount of dollar that is saved per quarter together with the total amount saved for the whole year from the water usage reduction. The second value adder available for the company is the efficiency in capital structure. In 2012 the company saved $42M in interest expense as a result of low borrowing costs and ability to raise funds at low effective costs (Petretti 56-63). The total amount of money that was saved by the company from this value adder is further shown in detail by the respective table. The table shows the metrics saved in the 2010 through to 2013, the average amount of dollar that is saved per year together with the total amount saved on average for the whole year 2012 from the low cost borrowing. The last value adder for the Coca Cola Company is the electricity efficiency improvement, which focuses on how to improve the companyââ¬â¢s electricity usage efficiency. A look at the period (2010-2013) shows that the company is saving $ 2.74 for every kilowatt-hour per terabyte. This value adderââ¬â¢s metric was calculated using its financials of the years 2010 to 2014 as well as Atlantaââ¬â¢s commercial userââ¬â¢s electricity cost or price. The table shows the cost of electricity used by the company as well as the effect on shareholdersââ¬â¢ value. A thorough and extensive research conducted on the company also revealed some inherent risks that the company needs to address. The Coca Cola Company borrows funds and it is therefore subject to interest rate fluctuations and investment changes. These fluctuations pose a risk on the company and may therefore lead to sudden changes of the Coca Cola expenses. In addition, the company possesses marketing risks that can considerably impact its image. The company needs to address these threats for it to be successful in the future. The Coca Cola Company adopted water stewardship in 2012. This program has resulted to a
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