Evaluate an article from a Company as your are its CFO
What is your opinion of the company’s situation as an investor or creditor?
The current situation of the Coca-Cola organization has affected the entire processes that take place both internally and externally in the firm. In accordance to the current statistics, obtained from the international business bureau, total number of sales in relation to the Coca-Cola firm has drastically reduced. The competition from other firms is becoming intense hence threatening the ready market for the soft drink firm (Heyes 2012). In accordance to most of the current journals concerning the Coca-Cola Company, the number of the investors has reduced. This is basing on the fact that most of the customers have deflected from purchasing products hence making the firm less competitive. The current numbers of the investors willing and capable of purchasing shares from the Coca-Cola organization has dropped.
What about the situation is of concern to you?
The situation is of concern to me because I am one of the loyal customers that purchase soft drinks from the distributors of the drinks. For this reason, I want to know if the rumor is true so that I might stop purchasing the drink for health purposes. The ethical responsibility of the firm to me is informing the public the truth about the component used in the manufacture of the soft drinks. It also my concern since lack of investors in the firm will contribute to the poor development of the firm.
The key aspect that has lead to the reduction in the number of the investors is the increase in the spread of the rumor that the soft drink manufactured by the Coca-Cola firm has chemical components that result to cancer. According to most of the current news delivered by the Coca-Cola firm, there is research that indicates various people that have died from cancer (Heyes 2012). The scientific research also indicates that most of the people that have died from cancer have been loyal customers purchasing ready soft drinks from the Coca-Cola distributors. This has raised alarms on the firms and the products that are used in the manufacture of the soft drinks.
What ethical responsibilities does the company have towards you as a creditor or investor?
The issue concerning the chemical compounds in the soft drinks manufactured by the Coca-Cola firm has affected the nature of the investors willing to contribute to the development of the firm. Since various customers have reduced in consumption of the soft drinks because of health related issues, it is a threat to the future of the firm. Since there are rumors concerning the health impact of the soft drink manufactured by the firm, several investors fear buying shares. Other investors have completely deflected from purchasing of the shares and turned into other more competitive firms such as Pepsi (Heyes 2012). Although the rumor is not scientifically proven, it has reduced the number of sales the firm makes in allegations that most of the people might suffer from diseases related to the chemicals. The refusal of revealing the components used in the manufacture of the soft drinks even make the situation worse.
In accordance to the chemical situation facing the Coca-Cola firm, it is vital for the company to take initiative to inform the public about the correct information concerning the chemical compounds in the drinks. Information the public about the correct chemical compounds in the drinks will reduce the spread of false rumors concerning the drink. This will ensure that the numbers of the customers that lack the truth about the drink are reduced. The Coca-Cola organization will also be rectifying its image and brand hence reinforcing the hypercompetitive state of the firm.
Works cited
Heyes, J. D. Cancer-causing chemical levels in Coke sold abroad remain excessive, U.S. group says. Accessed on 29th July, 2012. Retrieved from: http://www.naturalnews.com/036321_Coca-Cola_cancer_chemicals.html#ixzz22FJQMqx7
