It is clear that the risk factors associated with the Coca Cola Company are either external, or internal. External factors related to Coca Cola mostly depend on the decisions made by other beverage companies, but internal factors arise from the poor strategies, as well as actions, that Coca Cola company implements. Some of these factors include market rates, government regulations, credit, liquidity and cash flows (Adams, 2005). Market rate is the leading financial risk with regards to Coca Cola. The market changes depending on customer interests, demand, supply and new technology, as well. When these factors reduce, it becomes intricate for Coca Cola Company to acquire loans or credit. This might affect them financially. Government regulation is yet another vital financial risk for the Coca Cola Company. It is, however, an external risk. Governments frequently change existing tariffs, and this put new financial regulations in place. Some modifications are beneficial, but it might take a while before companies adapt to the changes. In addition, this creates a financial risk to Coca Cola (Adams, 2005). Techniques that Coca Cola has incorporated to overcome these factors include improving technology, imposing techniques of attracting customers and increasing their supplies (Adams, 2005).
The two-year pro-forma financial statement that this paper looked into suggests that the world is totally dollarized (Academic & Students Affairs, 2012). According to the statement, the world is turning into a free market economy with low inflation. The world is mainly anchored on the service industry, heavily weighted on commerce and tourism (Academic & Students Affairs, 2012). According to the pro-forma statement, the world today is founded mainly on a well-developed service sector, which accounts for roughly 80% of the worlds businesses. According to the statement, the output of products, in an