Managerial economics and strategic analysis Essay

Managerial economics and strategic analysis - Essay ExampleHays (2004) estimates that about 70 % of the sales the great unwashed for the guild comes from outside the United States and about 80% of the profits comes from non American countries. Coca cola Company is therefore one of the Companies with most presence in the world, which is attributed to the fact that the soft drink Coca Cola is widely available globally and has become the worlds favorite soft drink (Hays, 2004). agree to Dess (2012), the successful implementation of a Companys strategy requires effective strategic ascendancy. Control is in the form of behavior and how information is used. In nine to cater for the interests of the two key players in a Company, that is the shareholders and the managers, a Company must ensure that these interests are aligned (Dess, 2012). This can be achieved through establishing collective governance.Globally, the soft drink market is dominated by three Companies the Coca Cola, Cadbur ys Schweppes and Pepsi Cola Companies. Coca Cola laid claim to about 47% of the global market with Pepsi Cola following at 21 % and Schweppes at 8%.In aligning the interests of the Company shareholders and managers, Coca Cola separated the Company separated its ownership from its control. This was made possible through the employment of managers to run the Company on behalf of the owners. The company employs the use of incentives intended for its managers to facilitate the achievement of the Companys goals.The control of governance mechanisms has been successfully achieved through the use of external auditors who check the Company books regularly to ensure that the financial information discover by the Managers is accurate and in doing so protect the owners from financial risks (Dess, 2012). The Company is also subject to external regulatory bodies that check for the quality of their product and control the standards of these products. These bodies ensure that the consumer gets a product that fits their needs