Tuesday, March 30, 2010
An important part of a companies business plan is their investor relations. Companies want to keep the media, public's, investors, and employees informed of all the companies financial information. This is very important relationship that should be taken seriously. Coca-Cola company does a great job at keeping everyone informed. If you go to investors page there are many different links for someones knowledge. There are links to the multiple countries factories and of the annual report as a whole. Coke has an annual report that it puts out each year. First, they start out by stating what their plans are for the future. Coke is calling it 2020 Vision. It is more of a marketing strategy. To show the public's, investors and employees how Coke Brand is changing with the times.
Coke then goes on to talk about the actual numbers and the new products that were launched in 2009. It also continues to discuss what changes they are making to make there brand more environmentally friendly. Coke also describes in each different page, about the factories that are in different countries. It talks about what they are doing and then has tables for different elements. It is more of a marketing ploy to show anyone who is interested in what is happening financially within the company.
In the complete Annual report document, the letter to the CEO is one of the first things that is available to read. This is extremely important document because it is one of the only times a year a shareholder will hear from the person that is in charge. In Coke's case it is Michael Kent, Chairman of the Board of Directors and Chief Executive Officer. Here he is talking about how entering 2009, one of the wrost economic years, Coke wanted to focuz on what they could control. According to the CEO, Coke "worked to ensure that we came out of this crisis in an even stronger position by communicating with our consumers and retail customers; investing in innovation; and enhancing our distribution, sales and production capabilities around the world." He continues to target the investors interest by noting the amounts of profit that was made in 2009 and what they plan to do in the upcoming years. I think that by shareholders and investors reading this it will give them confidence in Coke. It will insure that they are making the right choice by choosing to invest in Coca-Cola.
On the website they have multiple press releases available to the public about the company. The news release that was written for the annual report was published on February 9, 2010. This is a way for the general public to understand what is happening with in the company. They are using plan terms that describe the profits and how Coca Cola is changing. It also has a chart to show the financial highlights and notes about the news release to explain certain statistically numbers. There are two quotes that are said by the CEO. The first one is talking about the past year and how they ended it on a high note. The next quote is a paragraph adn it is explaining what tey hope to achieve before 2020. It is a way for the everyone to have faith within the company, that big things are going to happen in the future.
The news releases, CEO letters, and annual reports are to show the shareholders that the company is not trying to hid anything that is happening. They want to get all the information out so that everyone knows what is going on with the company. Also, what they plan to do for the future. Coke does a great job at Investor Relations and it shows that they do care about their consumers.