Coca-Cola is a world class company dealing with carbonated different soft drinks. The company has branches all over the world having its head quarters in Atlanta Georgia. It produces numerous concentrates that are sold to worldwide licensed Coca-Cola companies. The companies’ production and distribution model uses a franchising approach. It is world wide spread apart from North Korea and Cuba. Due to its high success rate, Coca-Cola has never revealed its trade secret in the formula ingredients used in its processing. Their mission is to develop value while making an effective difference, to make the world refreshed and most of all to inspire happiness and optimism moments. Their vision is in efforts to achieve quality growth are, to be a fast moving and effective organization, bring the best beverage quality to the world, also maximizing the shareholders returns, also to help build communities sustainably.
The set out mission concerning the commercial governance should be possibly grouped into; either value formation and value safeguarding. In the creation of value, much emphasis is on investor value formation and development during the advancement of strategies that are long lasting and futuristic in efforts of ensuring permanent operational routine which is sustainable. Protection of value emphasizes mostly on the companies accountability and how the company is normally monitored to ensure that investors and stakeholders interests are preserved and well handled. Coca-Cola and other public companies have to ensure financial reports of the companies are filed and certified by senior company’s chief executive directors. The documentation acts as a very important information source to participants of capital markets. They also help in the avoidance and curbing of financial manipulation and fraud. A company’s success lies on many factors among them being credible information of the finances from capital markets (Scholes, 2011). The Coca-Cola company ownership entails shareholders who normally have return preference and also aspects of risk. Investment financial return interests are obtained from dividends from appreciation of stock price and profits of the company. Knowledge management in a company greatly helps it in its success and being a world class organization. Nowadays, Coca-Cola is the best example for working knowledge in trade secrets; however, it is virtually impossible to completely prevent competition from rival companies and imitations of the product in these times of innovations, technological advancement and reverse engineering (Davenport, 2000 pg.16).
In general Coca-cola is committed to a strong set of principles with regards to their corporate governance structure. This board is selected by the shareholders and they are responsible for overseeing the overall well being of the entire organization and to ensure its sustainability in the long run. This specific corporate board selects the management team who will be responsible for overseeing the day to day operations of the business and come up with strategic and also the operational goals of the firm. In addition all the corporate governance structure as well as their selection is done as per the corporate governance guidelines set for such companies. In addition their corporate governance structures are also reviewed from time to time in order to ensure that the best international standard is maintained by them at all times. As such their corporate social responsibility is also maintained as per the corporate reputation council and through the public policy where senior managers come together to discuss various issues. They are also responsible for identifying any risks as well as opportunities which are yet to be explored by them and how they can expand the company and its operations in general. The council may also suggest any necessary strategies or challenges which they may face.
Strategies of corporate governance used in world class companies such as Coca-Cola entails the sharing of power and laid out relationships between stakeholders and company, its board, management and shareholders. It gives the structure that helps in determining goals of the apparent organization or company and also on how it will monitor routine performance. With a system of corporate governance that is very effective and efficient, a great deal of confidence will be given to enhance a favorable market economy. Financial markets are the foundations of the corporate governance; inappropriate corporate governance tends to badly spoil the potential of a company. This is the reason as to why most organizations normally apply the efficient resource use to lower the overall capital cost enabling the establishment and creation of financial stability and economic growth.
Value creation in corporate governance should be analyzed in relation to factors of human capital. This can be by the leverage impact of returns achieved by eliminating the equity return of the appropriate deal level. Value protection is also very important for it is the reason behind a company’s success for example in Coca-Cola its trade secret. Simply, trade secrets can be defined as the delicate information with paramount economic value reason being it is oblivious to the competitors and therefore a secret. For over a century, Coca-Cola has been able to keep and protect its trade secret, however this is unfortunate because people never recognizes the information, technology and processes used to maintain it until the secret is compromised. Coca-Cola Company has been known to use strategies of value creation which has catapulted it to a globally recognized international standard. Market mechanisms by nature solely are not capable of fully controlling and monitoring business and needed corporate governance was really important in streamlining the market mechanisms. It is believed that being lenient and avoiding some of the regulatory laws, more economic growth is achieved because investors are attracted to come in and do business.
The company uses capital markets and free enterprise efficient systems which further necessitates corporate governance effective functioning and upholding of ethics in business. The company’s stakeholders are given opportunities and incentives as reward for exemplary performance and also punished when there are cases of poor execution. Cooperate accountability is practiced in organizations especially the global enterprises and companies such as Coca-Cola. A lot of pressure and scrutiny is given to such companies by the regulators, lawmakers, stakeholders and entire investment fraternity. The investment analysis incorporates aspects such as environment, governance and including the society’s factors (Rezaee, 2008 pg. 19). In efforts to achieve cooperate governance; the main goal involves the development of power balance in all stakeholders and shareholders. This should enhance and establish the value of the stakeholder and preserve the delicate stakeholder’s interests. Value addition and protection take reforms in corporate government and requires the following gatekeepers; financial advisors and legal counsels that are competent and objective oriented, also a board and auditors that are competent and independent. The coca cola company and it worldwide recognized products are on an optimal whereby many other companies tend to benchmark themselves with the market leaders.
Conclusion
Coca-Cola Company has achieved major success over all beverage companies by being the world’s largest having more than five hundred selling brands. Coca-Cola is the brand in particular that is most valued worldwide. Value creation and subsequent value protection of the company have led to its international standards being a pace setter in the corporate market. Coca-Cola brand uses strategies that are ensure value protection in all its products and value creating that also helps in sophistication and product enhancement making it a globally recognized company of beverage processing.
References:
Rezaee, Z. (2008). Corporate governance and ethics. Hoboken, N.J: Wiley.
Johnson, G., Whittington, R., & Scholes, K. (2011). Exploring strategy. Harlow [etc.: Prentice Hall.
Davenport, T. H., & Prusak, L. (2000). Working knowledge: How organizations manage what they know. Boston, Mass: Harvard Business School Press.
Website
http://www.coca-colacompany.com
