Fin 415 Coca-Cola Risk Management
Coca-Cola Risk Management Plan Proposal
Fin/415
Coca-Cola Risk Management Plan Proposal
The final project for team B focuses on a risk management plan for the Coca-Cola Company. The Coca-Cola Company took shape in 1886 and remains an international leader in beverage manufacturing and distribution with the company’s background beginning this plan proposal. Risk identification plays a major role in Coke’s continued success with an explanation of the importance of correct identification as well as a list of risks facing the company continuing this summary. A discussion follows regarding the importance of accurate and balanced methods of risks measurement and continues into risk management techniques that include auditing and hedging. This proposal continues with an emphasis on the benefits of a good risk management plan contributing to the stability and long-term success for Coke. Insurance aspects continue this plan with consideration of employee insurance plans and reinsuring with insurance. Recommendations with regard to hedging through futures and forward contracts as well as insurance products conclude this plan proposal.
Background Information
The origin of Coca-Cola dates back to 1886, when a pharmacist in Atlanta named John Pemberton took his curiosity to create a drink by using a caramel colored liquid and mixing it with carbonated water. After creating the drink, he had customers of Jacob’s Pharmacy taste it with a unanimous agreement that this drink would become something special. Pemberton’s bookkeeper, Frank Robinson, penned the name Coca-Cola, writing the logo in his script handwriting, the same logo used today (The Coca-Cola Company, 2011). Asa Chandler bought the rights to Coca-Cola using his business background to elevate the success of Coca-Cola over the years to follow. By 1895, Chandler stated that this drink had reached every state in the United States. Coca-Cola’s success grew throughout the years when Robert Woodruff bought the rights
Fin/415
Coca-Cola Risk Management Plan Proposal
The final project for team B focuses on a risk management plan for the Coca-Cola Company. The Coca-Cola Company took shape in 1886 and remains an international leader in beverage manufacturing and distribution with the company’s background beginning this plan proposal. Risk identification plays a major role in Coke’s continued success with an explanation of the importance of correct identification as well as a list of risks facing the company continuing this summary. A discussion follows regarding the importance of accurate and balanced methods of risks measurement and continues into risk management techniques that include auditing and hedging. This proposal continues with an emphasis on the benefits of a good risk management plan contributing to the stability and long-term success for Coke. Insurance aspects continue this plan with consideration of employee insurance plans and reinsuring with insurance. Recommendations with regard to hedging through futures and forward contracts as well as insurance products conclude this plan proposal.
Background Information
The origin of Coca-Cola dates back to 1886, when a pharmacist in Atlanta named John Pemberton took his curiosity to create a drink by using a caramel colored liquid and mixing it with carbonated water. After creating the drink, he had customers of Jacob’s Pharmacy taste it with a unanimous agreement that this drink would become something special. Pemberton’s bookkeeper, Frank Robinson, penned the name Coca-Cola, writing the logo in his script handwriting, the same logo used today (The Coca-Cola Company, 2011). Asa Chandler bought the rights to Coca-Cola using his business background to elevate the success of Coca-Cola over the years to follow. By 1895, Chandler stated that this drink had reached every state in the United States. Coca-Cola’s success grew throughout the years when Robert Woodruff bought the rights
References: Charette, R. N. 1990-1991. The Risks with Risk Identification. Retrieved on June 2, 2011 from www.itmpi.org/assets/base/images/.../robertcharette/RISK_ID.pdf Coca Cola. 2009. Retrieved on June 1, 2011 from www.the coca- colacompany.com/ investors/pdfs/10-k_2009/04_Coca-Cola_Item1A-1B.pdf Coca-Cola. (2011). The Coca-Cola 's Bottling Association. Retrieved June 5, 2011from http://www.ccbanet.com/front/aboutus.html Financing Strategy. 2011. Coca-Cola Hellenic Bottling Company S.A. Retrieved on June 5, 2011 from http://www.coca-colahellenic.com/investorrelations/Debtholders/Financingstrategy/ Kennon, J. 2011. Risk Management: 6 Warning Signs a Company May Be Headed for Trouble. Retrieved on June 5, 2011 from Ross, M.E. (2005). It seemed like a good idea at the time . MSNBC. Retrieved June 5, 2011from http://www.msnbc.msn.com/id/7209828/ns/us_news/t/it-seemed-good-idea-time/ The Coca Cola Company. (2011). Heritage Timeline. Retrieved June 5, 2011from http://heritage.coca-cola.com/