Introduction
For a business to succeed, considerable research is required to be able to bring the right service that the customers expect from the company. This intensive research must be something that provides the performance of the company to a higher and wider level. It must create a huge impact not only to customers but also to the employees working for the business. Thus, a certain technology is needed to enhance performance and work efficiency of the whole industry. Just like in dealing with customer support, satisfaction is the main matter The accounting department plays an essential part on the market and the only path for employers to get to each with their performances is an better technology in providing to them proper knowledge management and create the necessity to allow them to rely on the machine so the industry attains an increase in profit and creation. This work also suggests the talk and examination on the company's management of financial condition and the operation's end result. The purpose of this newspaper is to know the effects of knowledge management to the Coca Cola Company to their accounting system.
Methodology
The methods used to recognize and locate options are online research, reviews and journals. These resources are reliable because the technology described this newspaper can be commonly learned from online resources. Knowledge management is also very important to the Coca Cola Company, the key reason why several studies have been completely done regarding this problem and thus reviews and publications were already open to publish their studies.
The procedures to be used in examining the sources is by data examination derived from reports that are extracted from this accounting office of the Coca Cola Company. The criteria in analyzing the info will be very basic. If the info shows that significant increase is obtained and reliable change was detected from the accounting databases, then it is therefore safe to state that knowledge management has effective in enhancing the accounting system of the Coca Cola Company. However, if no significant change has been detected from the obtained data then it means that the approach has not been effective in the improvement process.
Analysis and Discussion
The problem of this analysis revolves around the problem of the effects that knowledge management brings to the accounting system of the Coca Cola Company. In the later part of the paper, a conversation on the data management helps us understand more of the issues it might bring if this technology will never be incorporated into the system of the company. This paper is important because it provides employers and business owners to broaden their understanding when it comes to managing their employees. That it generally does not only indicate the mere knowledge of what they need to do for the company but it's more about providing them with the correct technology and help them enhance skills and become more of a secured asset to the company than a responsibility.
The opportunity of the review boundaries to the explanations on knowledge management and its contribution to the Coca Cola Company. It discusses also about the inner and external examination of the knowledge management as well concerning their substitute strategies including the software of intranet to their system. The intranet system is the use of latest technology in to the company that employees are helped not only in honing their skills and become a productive worker of the company but also helped the company improve better communication among bottling companions and the company itself.
A brief qualifications of the company is discussed to learn the importance that the knowledge management has helped them. The results of the review will be applied in understanding more the advantages that the use of the technology in the knowledge management of the company and which should also profit the accounting system of the company.
By the finish of the study, one must have the ability to learn the features of knowledge management, about the Coca Cola Company and exactly how its accounting system works once the technology for knowledge management is applied.
About the Coca Cola Company
Since in 1894, the Coca Cola Company (2006) 's been around for business selling something called soda pop fountain beverage. It really is one of the world's top makers of soft drink, that they sell at an average of 1. 3 billion portions per day. In addition, it has one of the world's top systems in their widespread distribution. Perhaps one of the most admired firms for having credited as proficient on the production, distribution and marketing. The business has an impressive start; however, the development is merely whenever a system for a bottling was made. The technology has boosted the business in tremendous ways. The product packaging had a positive final result, improving the quality and the efficiency of the product. The company's objective is to produce a difference by creating value upon a standardized device to draw out joy and smile on every customer's face. Its target is to provide sustainability.
The Coca Cola was developed by pharmacists known as Doctor John Pemberton in Alaska, Georgia. He developed the solution in a brass kettle while he was in his back garden. The name was presented with by his bookkeeper Frank Robinson. Its labor and birth was initiated by Mr. Robinson when he scripted the emblem that has now become famous today. Another pharmacist from Atlanta, Asa Candler then bought the solution from Dr. Pemberton. It was credited to Candler's aggressive marketing procedure that the Coca Cola has become popular in America. One significant factor that has contributed with their success was advertisements and even as yet the business has flourished due to the advent of technology being applied to their system (Bellis, 1997).
What is Knowledge Management?
It is realized that every framework developed by the corporation commenced as a thought in the thoughts of the employees. It then produced into a patterned examination of data which resulted to the production of ideas. Thus, the Coca Cola Company acquired flourished into a multinational firm because of the tacit understanding of the employees. The knowledge management of Coca Cola has a deep relationship with collaboration. It partake the type of not simply a system but an enormous network where in fact the people within the business can talk to the company network based in another country. This nature can help assess knowledge professionals about how much information must the company need to further their endeavors of excellence and client satisfaction. In performing their strategy, knowledge management is very useful since it serves as a pattern or guide where certain areas are marked as they deemed fit, or areas are being highlighted which they observed that needs for even more improvement. It also serves as a solid pivotal point where company seeks examination or gathers information to further increase the Coca Cola System (Hauschild, 2001). Some analysts states that instead of spending additional time on technology, it is more essential to research more on knowledge content by learning on culture and company of the company. However, regarding to expert knowledge managers, knowledge management would depend on the progress of it such as intranets, video recording conferencing, web casting and much more (David, 2001).
Tacit knowledge among employees has helped the business create inventions in their products. All it requires is to exhaust ideas and knowledge within the place of work. However, in order that this knowledge may be properly prepared and placed into concepts, a good inter-personal romantic relationship is essential that the tacit knowledge may be well placed into conception. And the output of which would quite definitely rely upon the needs of the employees which means that the decisions are for them to make on what technology to work with.
It requires a very aggressive strategy for a corporation to prosper. Thus, it is vital to study what to the details before decisions are made. For example, in adding a commissary in a new area, a supplementary care and effort to research is very essential. Things that we need to find out about the area are a crucial part in this approach. The market must be surveyed too by inquiring the 5 time plan of the federal government agency. In this way, the investment will be secured. The system at the Coca Cola Company has been honed for years and years and it's really been deeply rooted from community structured level, which makes it a very good social concern. Their system has effectively dished up the wide and different arrays of tastes that have catered not only in the local business. The strategy applied by the business is based from value chains and push models. These tools have helped the business improve and guide them in their efforts to fixed future business reverses. And it is unquestionably very effective as the globe has been through a recession; the Coca Cola Company has stood still but still braving its way towards success and perfection.
Internal Analysis of Knowledge Management
According to knowledge management director, it is strongly suggested to use credit on every reviews being put under the business. And this should not be overlooked, but instead be registered on the business data source for future research or as a guide to help create a system to boost and at exactly the same time would attend to the needs of the clients. Despite some legal criticisms about the product's effect to the growing obese inhabitants, it have sustained to positively responded to the call for a wholesome drink by encouraging and healthy well being and an active lifestyle (Business Week, 2007).
The company is quite delicate to culture and reputation both of the company and customer because of their pursuit of providing brighter and better technology to the general public consumer. They make it a point to handle rumors and embrace feedbacks and criticisms in their interest to create quality products. In addition they think that feedbacks are manufactured to meet up with the needs and needs of the customers (Data monitor, 2007). Another area that your company didn't address is the necessity to put importance on accounts written as business reviews. If indeed they continue not to take credit on the diagnosis of the general public, its failure may cause great injury to its distribution and marketing.
Although this multinational company has been successful for centuries and the buildings and functions they've developed have been examined over time, they still flawed in one thing and that is on the issue on decentralization. Because of this factor, the company has encountered trouble on the problem of interior management. As a result, conditions at a local level will never be thoroughly adapted. It'll definitely have an impact on the strong relationship between the company and the clients. Thus, impedes the introduction of a further secured market in the neighborhood landscapes (McKay, 1999).
The Accounting System of the Coca Cola Company
There are three types of bottling associations at Coca Cola: bottlers that the company has no possession interest; bottlers that the business has a handling possession interest; bottlers that the business has non-controlling possession interest. Bottling associates are authorized to produce and package products, however, being able to manufacture generally is effective in the business's part in acquiring controlling fascination with a bottling operation. Being able to own the controlling interest can help the company compensate for the local resources and give attention to the bottler's deal and marketing programs. By getting the controlling interest, the business helps in the improvement of the information system. This is when the accounting system and the necessity for such technology arise. The intranet system within the knowledge management courses very well the info system necessary for accounting (The Coca Cola Company, 2006).
This intranet strategy will help improve the romance of the bottlers as a result of network created between them. Knowledge management will provide them with facts and factors how greatly serve client satisfaction. The bottlers are they key source from which knowledge management can acquire data because the bottlers know the community very much and they're considered as the basic unit of the whole Coca Cola System (1999). They believe in winning jointly because this is actually the only way to achieve their goals and missions and whose romance is aiming for a long-term destination. This strategy can help them endure a long lasting relationship aiming for the goal and standards of perfection. Finally, the continuing future of Coca Cola's success is placed on enhancing their it. As a newly appointed knowledge management it is strongly suggested that the necessity for an "intranet" system within the company must be executed. This will help make a difference in reaching to the needs of the most basic customer level which is the main and basis of the business. Failure to exhaust and solve to the area would bring the complete company to jeopardy (Schmidt, 2001).
The consolidated financial record of the business shows the importance of applying the technology to the accounting system. These financial statements are equipped with concepts of accounting which can be accepted in america, requiring quotes, judgments and assumptions. The generally accepted accounting rules in the United States provides option to entities to assess utilizing their own financial devices at good value in determining net income. Because the company has chosen not to make use of the choice, only investments and liabilities are measured at good value if other accounting instruction requires too (The Coca Cola Company, 2006).
According to the similar total annual record of the Coca Cola Company (2006), the company makes assumptions and judgments in how much reasonable value to declare. In cases like this, the intranet system can be very much helpful since it will bridge or route bottling associates with the management as well as the bottling lovers to the employees making the diagnosis. The intranet system within the knowledge management is a tool guiding employees to make the right assumptions and judgments. Without the correct knowledge or conformity of certain accounting principles, the financial statement of the business might not possibly be accepted as fair.
It has been said that conclusions and suggestions submitted to insurance policy makers keep significant changes to the city. It could then provide them with the hint of what the city really needs and their interest is obviously their utmost matter. Same with huge companies that requires great responsibility in providing good services with their clients. Research can be an important task in improving financial assets and product performances. Furthermore, to learn how the employees work and think as a team is also very important and this is when knowledge management comes into the world.
Financial Condition Analysis
According to Jain (2004), a business expert, in 1995 the Coca-Cola Companies experienced their first annual revenue since 1991. Their earnings was 3. 03 million compared to a lack of 12. 11 million in 1994. Their three years of loss totaled over 151. 37 million using their greatest in 1993 at 105. 2 million.
Coca-Cola's sales volume level increased for the next consecutive 12 months with an 8% increase over 1994 totaling 176. 19 million. Their stock price practically doubled over the prior yr with a shutting selling price of 3. 25 in 1994 and a final selling price of 6. 43 in 1995. The earnings
per show for 1995 were 0. 01 per common share compared to a net lack of 0. 36 in 1994. The wages per share got a net reduction since 1991.
Throughout 1995 Coca-Cola also embarked after and sustained various programs to cut costs and increase revenues. The company succeeded, by decreasing their operating expenses by 4% in 1995. Operating income was two times 1994's at 45. 64 million and a 6. 81 million decrease was achieved in Selling, General and Administrative expenditures.
Importantly, Coca-Cola was able to decrease their long-term debts by 13. 62 million throughout 1995. They still have high interest repayments but will continue steadily to pay back their debt in the future. Their debt-to-assets ratio shows they are increasing relying on borrowed cash to finance
their investment funds. Their debt-to-equity proportion reveals that they have a high credit debt balance in their capital framework.
The company's liquidity is in a well balanced position. Their current proportion is currently roughly 1. 0 which is the recommended rate. Their quick ratio is approximately 0. 6 Coca-Cola is a good position to meet their short term obligations.
Conclusions and Recommendations
Through 1995, the business developed a multi-year initiative, Project Maximum, that pursues superior customer responsiveness, quality and efficiency totally. The company is focused on flexibility, consistency, quality and costs. Its activity is to boost the responsiveness of the customers' needs, while producing the best quality products at the lowest cost.
Through the advance Electronic Data Interchange (EDI) systems which are put in place in to the company's information system, the employees can easily usage of the operational information, such as consumer information, sales, and promotions. This enhances the employees' knowledge and increases their responsiveness to the clients.
The company's Billing and Accounts Receivable quality initiative enhances the quality of their invoicing and collection process that may subsequently improve client satisfaction and reducing operating expenses (Jain, 2004).
