Macroeconomic

Macroeconomic

Introduction

I have chosen the Coca Cola company for my report to help me answer and meet the expectations of the question. Coca-cola is an American multinational company, it deals with the manufacturing, retailing and marketing of the nonalcoholic beverages and syrups (Duffie, at el 2016). The company has thrived in the market for a long time and helping her clients to have access to their products that are affordable in countries that they are conducting their sales. The company is an equal employer who has employed many people all over the world, and it has covered the market well through their products and meeting her clients’ needs. The company has contributed a lot towards the economy of countries that it is operating.

Growth of the industry

Coca-cola has been having a continuous trend of growth that has helped its developments and spreading of their business all over the world. In 2019, the company made a huge sale of their products through a huge stoke in that they had a stoke lagged selling and the purchases at 500 that helped have the dividend as an incentive through the ownership (Coutinho, at el 2016). Through the shift of focus that they had on old school soda to venture into a variety of products such as water, flavoured water and flavoured cola helped the company to acquire more acquisitions in the segments such as coffee. When they established the shift of focus into a variety of production, the company was able to increase its revenues by 5% in a year that was worthy $18.69 billion. The gross profit increased by 3.2%, making it $11.5 billion. The net income that is involved to shareholders has raised over the financial years by 16%, making it $4.89 billion. Through this growth, the company is able to conduct other functions that are not related to the core function of the business of the company. The company has a revenue counted to $45 billion with $8.6 billion net income. Coca-cola has served in the market for one hundred and twenty-four years, and it has been able to employ about ninety-two thousand eight hundred employees. The company has a wide variety of products that is three thousand five hundred beverages with five hundred brands. Through these products, the company is able to cover a wide range that will help them have a number of clients. The company is a multinational; thus, it has a good number in every country that it is operating their business.

Macroeconomic indicators or policy and its importance and impact

The company should monitor unemployment indicator in the countries that it’s operating. This indictor has been a long problem that many countries have been unable to solve towards youths, especially in countries that are in Africa (Iossa, at el 2015). The indicator can be solved by having more job opportunities for youths since they have the energy and vigour to make production faster and have more sales. The position of the company is important to have the grip of the population that has been suffering over the decades.

The firm will have to monitor taxes as they are imposed in the company. The company operates in many countries, and each country has its own government policies on how they collect taxes and revenues from the public (Baumol, at el 2015). The company will have to make a keen observation so that they would be able to know how they are going to venture into the market in certain countries. Through comprehension of the tax policies and the way, the governments have enacted their way of imposing fines it will help the firm have clear strategies on how to invest in every country that they have narrowed down in operation since high tax rates will lead to high pricing and thus the sale will be low to a common people in countries.

The company will have to be keen on operation cost that supports industry and the revenues. The company should ensure they have a proper expenditure on how they will operate in the market since if they have a high operating cost it will force them to increase the prices of their products and it will affect their returns in the sales. The operation cost should be at well standard so that finally it would not affect the prices of the commodities that the company is dealing in (Leishman,2015). Also, the company should look at the current trends in the market; this will help them to maintain their clients over their products without defecting to other places. Current trends will help them have the best way of having products that will have a wide view and increase their sales since they already have large numbers of customers.

Recent Trends

The graph below shows the unemployment rates over the year.

Unemployment has been a trend in recent years in the market; this has resulted in the economy is poor; thus, the market gets affected negatively. The development of the indicator the firm should look at how they will help citizens of the countries that they are operating their business to have a proper mechanism of reducing the impact in the economy.

Conclusion

Generally, the firm is looking forward to improving in the market, have a wide view of its products so that they will be able to tame the production of the revenues. The organization has helped earlier to solve unemployment problems that have been a setback to many countries. The trend is not expected to continue some countries since the company is expanding and opening new business opportunities. Through the course Learned how the company would affect economic indicators and have a view of having the responsibility of having to improve the services.

Reference

Allione, G., & Stein, R. M. (2016). Mass attrition: An analysis of drop out from principles of microeconomics MOOC. The Journal of Economic Education, 47(2), 174-186.Retrieved from: https://onlinelibrary.wiley.com/doi/abs/10.1111/jpet.12114

Baumol, W. J., & Blinder, A. S. (2015). Microeconomics: Principles and policy. Nelson Education. Retrieved from: https://www.gccaz.edu/sites/default/files/imce/Academic_Departments/Social_Sciences/Syllabus_Fall_2019/ecn212_15596-s._radisich.pdf

Coutinho, E. F., Rego, P. A., Gomes, D. G., & de Souza, J. N. (2016). Physics and microeconomics-based metrics for evaluating cloud computing elasticity. Journal of Network and Computer Applications, 63, 159-172.Retrieved from: https://www.sciencedirect.com/science/article/pii/S1084804516000369

Duffie, D., & Fréchette, G. (2016). The American Economic Journal: Microeconomics (AEJ Micro) was launched by the American Economic Association in July 2007. The mission statement for the journal is: AEJ Micro will publish papers focusing on. Notes, 378(43), 34.Retrieved from: https://search.proquest.com/openview/dfb9cafe38928d06e13d9dbbd2e093a6/1?pq-origsite=gscholar&cbl=42182

Iossa, E., & Martimort, D. (2015). The simple microeconomics of public‐private partnerships. Journal of Public Economic Theory, 17(1), 4-48.Retrieved from: https://search.proquest.com/openview/dfb9cafe38928d06e13d9dbbd2e093a6/1?pq-origsite=gscholar&cbl=42182

Leishman, C. (2015). Housing supply and suppliers: are the microeconomics of housing developers important?. Housing Studies, 30(4), 580-600.Retrieved from: https://www.tandfonline.com/doi/abs/10.1080/02673037.2015.1021767