Managerial economics and strategic analysis Essay

Managerial economics and strategic analysis - Essay ExampleHays (2004) estimates that about 70 % of the sales volume for the smart set comes from outside the United States and about 80% of the profits comes from non American countries. Coca cola Company is wherefore one of the Companies with most presence in the world, which is attributed to the fact that the haywire drink Coca weed is astray available globally and has become the worlds favorite soft drink (Hays, 2004).According to Dess (2012), the flourishing implementation of a Companys strategy requires effective strategic control. Control is in the phase angle of behavior and how information is used. In order 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 with(predicate) establishing corporate governance.Globally, the soft drink market is dominated by three Companie s the Coca Cola, Cadburys 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 isolated 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 fraternity 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 disclosed by the Managers is accurate and in doing so protect the owners from financial risks (Dess, 2012). The Company is also subject to external restrictive bodies that check for the quality of their product and control the standards of these products. These bodies ensu re that the consumer gets a product that fits their needs