Strategic Management and Financial Analysis in the Context of Epidemic -- A Case Study of Coca-Cola Company
These authors contributed equally.
- DOI
- 10.2991/assehr.k.211209.392How to use a DOI?
- Keywords
- COVID-19; Financial Statement Analysis; Qualitative Analysis; Corporate Strategy; Coca-Cola
- Abstract
The subject of this article is to analyze the financial statement and corporate strategy of Coca-Cola (referred to as KO) Company during the COVID 19 epidemic. The two main analysis methods are quantitative and qualitative analysis. The quantitative analysis uses ratios and Dupont to analyze Coca-Cola’s ratio, looking at the impact of the epidemic on KO from the perspective of growth, profitability, liquidity, efficiency, and solvency. The qualitative analysis uses the SWOT and Porter five forces analysis method from the traditional accounting perspective to initially analyze the internal and external environment of Coca-Cola and uses the Balanced Score Card (BSC) from the management accounting perspective to interpret the advantages and disadvantages of the corporate strategy. The quantitative analysis results show that due to the epidemic’s impact, KO’s ability to repay debt and efficiency of using financial resources has been improved under the condition of the decline of KO’s growth and profitability. But its finances and goodwill may suffer as a result of KO’s acquisition problems. Qualitative analysis results show that KO’s business processes are highly systematic, and strategic costs are reduced. In addition, the main risks of KO lie in the threat from competitors and the lack of innovation ability. Under the influence of the epidemic, its key profit indicators and debt ratio showed a negative trend. It failed to reach its financial target due to its special risk avoidance strategy of debt ratio. But it has excelled at attracting and retaining customers. This paper provides guidance and reference for future scholars to study KO’s management and financial performance during the epidemic.
- Copyright
- © 2021 The Authors. Published by Atlantis Press International B.V.
- Open Access
- This is an open access article under the CC BY-NC license.
Cite this article
TY - CONF AU - Hongshan Geng AU - Nanyi Jiang AU - Qianwen Liang PY - 2021 DA - 2021/12/15 TI - Strategic Management and Financial Analysis in the Context of Epidemic -- A Case Study of Coca-Cola Company BT - Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021) PB - Atlantis Press SP - 2396 EP - 2404 SN - 2352-5428 UR - https://doi.org/10.2991/assehr.k.211209.392 DO - 10.2991/assehr.k.211209.392 ID - Geng2021 ER -