Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)

Strategic Management and Financial Analysis in the Context of Epidemic -- A Case Study of Coca-Cola Company

Authors
Hongshan Geng1, , Nanyi Jiang2, , Qianwen Liang3, *,
1Business School, University of New South Wealth, Sydney, 2052, Australia
2Henley Business School, University of Reading, Reading, RG6 6AH, UK
3Kings Business School, Kings College London, London, WC2R 2LS, UK

These authors contributed equally.

*Corresponding author. Email: k20058592@kcl.ac.uk
Corresponding Author
Qianwen Liang
Available Online 15 December 2021.
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.

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Volume Title
Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)
Series
Advances in Economics, Business and Management Research
Publication Date
15 December 2021
ISBN
978-94-6239-483-4
ISSN
2352-5428
DOI
10.2991/assehr.k.211209.392How to use a DOI?
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  -