Financial analysis research paper Example | Topics and Well Written Essays - 2000 words

Financial analysis - Research Paper Example In the execution and development of any business, the financial planning aspect is given utmost importance. The reason for giving so much worth to this element is because of its magnitude and intensity. Positive calculations and feasibility of organizational processes on the financial basis indicate business to flourish in the future (Chandra 24). The strategic dimensional examination by the organization is carried out by financial and accounting analysts. The time frame involved in business mounting and expected returns are highlighted by the financial forecasters. The rationale of revealing this information is to escort organization why they should or should not opt for the business commotion (Chandra 31). The purpose of this paper is to elucidate about the financial analysis of Coca Cola. Core steps of the financial planning and analysis along with categories of financial planning are depicted too. The paper enlightens that to what extent financially Coca Cola stands and what are its strengths and weaknesses. The paper also notifies the positioning of Coca-Cola's biggest competitor; Pepsi Cola's financial condition. Coca Cola- Company Introduction Cola-Cola is the largest beverage brand in the world. The operational activities of the organization are widespread in more than 200 countries. With more than 500 brands and 90,000 employees, Coca-Cola holds promising place in the beverage industry and is considered as the market leader. The company has divided its operational activities into six groups- Europe, North America, Latin America, Pacific, Eurasia and Africa and Bottling investments. The financial positioning of the company throughout the years has been remained promising. Pepsi Cola International is the biggest competitor of Coca Cola and retains prominent position in the industry too. The business endeavours of Coca Cola are far more than Pepsi, and financial analysis of the previous years indicate Coca Cola's lead in the industry (Clarkson 18). Financ ial Analysis and Planning- Core Steps The business environment assessment is the preliminary segment in the financial planning commotion. In this segment, it is determined either the market atmosphere is competitive enough to execute business activity or not. Alongside the economic conditions of the region are determined. Moreover, the legislations or laws passed in favour and against the respective business ventures are scrutinized by the financial analysts. Their role remains to monitor market inclination, approximate the chances of implementation and make precise decision about the viability of market. After business environment assessment segment, business vision and objectives confirmation is determined. Fundamentally the dissection of organizational goals and objectives is detected. Concise understanding about business preference and tendency to operate is scanned by the financial analysts (Chandra 40). The summarization of all the costs attached in the performance of business is illustrated in the financial plan. Business activity has to bear certain risks too which are emphasized in the financial reporting final charge sheet. The financial plan ultimate verdict is presented to the decision making body of the firm so that they would asses either it is possible to opt for the business option or not. The steps elaborated needs to be followed in the same direction, because inter-dependency is attached with each other. The termination, escape or mingling up