Is Coca Cola the Perfect Business? Essay

A. One of the most strategic skills to learn in managerial economic science is the ability to identify a great backing. Discuss at least quad traits of a skinny backing.Based on the article about Coca-Cola, there ar five essential characteristics of a strain for it to be considered as a crack Business. First, it should be appealing to both(prenominal) untried and old alike. Second, it must birth a distinct characteristic which mintnot be easily imitated by others. Third, it must already made an impact to the nutriment market place because it has already earned a large luck of market sh ar. Fourth, profit margin and evaluate of restoration should be high. And Lastly, it must convey a competitive receipts or economic moat.Appealing to both young and old alike. The crossway that the club sells / offers bath be used or consumed by people of all ages. It must be enjoyed not only by selected markets preferably it should be enjoyed by all.Distinct characteristic which cannot be easily imitated by others. The crop that the company sells / offers must be ludicrous and exceptional. It must safeguard its deep ingredients. So that it cannot be easily imitated by others.Large portion of market sh atomic number 18. The product that the company sells / offers is used or consumed by a large portion of the market and must be preferred supra other companies who are in the equal line of trade.A substantially business must able to deploy a lot of incremental capital at an above average rate of return for a long time. If a business is able to do that, it will in effect be helping its shareholders entangled their money at a beneficial rate of return and saving them the pain in the ass of having to invest the extra divid closing curtains they would consider accepted if the company didnt reinvest in its operations.A durable competitive advantage or economic moat is what sets apart the good and great companies from the mediocre and downright malo dourous companies. A significant competitive advantage allows a company to earn better than average profits or maybe even excellent profits, and protects the companys profits from competitors that want to get a piece of the action. A strong notice, beingness the low-cost producer, patents, and having a near monopoly oer a certain market are some sources of competitive advantage.B. Identify and talking about at least cardinal companies that you regard as having the characteristics listed here.orchard apple tree accompany This popular company is the brain nates gadgets like iPod, iPad, iPhone, and MacBooks. Their products are user-friendly and can easily be used by people both young and old. Also, Apple always sees to it that their products offer unique features which get the peoples wants and needs enabling the people to patronize their products thus in return, earning a large portion of market share compared to other competitors.SM Investments stack This is composed group of companies Retail, Mall Operations, Property, and Banking & Finance. sell SM is the Philippines most dominant histrion in retail with 193 stores nationwide. Of these, 46 are SM Department Stores 37 are SM Supermarkets, 76 are SaveMore branches and 34 are SM Hypermarkets.MALL trading operations SM is the Philippines largest shopping mall developer and promoter with 46 malls nationwide. SM Prime to a fault owns 4 malls in chinawares second and third-tier cities, namely Xiamen, Jinjiang, Chengdu, and Suzhou. By the end of 2012, SM Prime will have a total of 46 malls in the Philippines and five in China with a combined GFA of 6.3 mn sqm.PROPERTY SMs property group is a fast emerging business with interests in residential, commercial, leisure and hotel development.SMDC is rapidly growing with 15 residential projects under its SM Residences and two projects under its M Place brand.BANKING & finance SMs depose internet is the largest in the Philippines with its 41% interest i n BDO Unibank and 20% interest in China Banking Corp. In 2Q 2012, BDO became the acress largest bank in terms of assets with 744 branches nationwide. Chinabank is the 8th largest with 307 branches nationwide.ABS-CBN is a major Philippine commercial television receiver profits owned and operated by the Filipino media conglomerate ABS-CBN Corporation, a publicly traded company. It is the countrys leading television network with an advertising revenue amounted to 17.5 billion pesos for the pecuniary year 2011San Miguel Corporation is Southeast Asias largest publicly listed food, beverage and packaging company with over 17,000 employees in over ascorbic acid major facilities throughout the Asia-Pacific region. San Miguel carries many brand names in the Philippine food and beverage industry, including San Miguel Pale Pilsen, Ginebra San Miguel, Monterey, Magnolia, and Purefoods. San Miguel Beer is one of the largest interchange beers and among the top ten selling beer brands in the world. SMC manufacturing operations extend beyond its fireside market to Hong Kong, China, Indonesia, Vietnam, Thailand, Malaysia and Australia and its products are exported to 60 markets nearly the world.C. Suppose you bought gross stock in each of the quaternary companies identifies here. Three old age from now, how would you know if your analysis was correct? What would coax you that your analysis was wrong?Supposing I bought common stock in each of the four companies indentified above three years from now, I would know that my analyses were correct by manifestly looking back and evaluating if the company solace content the list of characteristics of a good business. I will be convince that my analyses were wrong if it will not suffice even just one of the characteristics listed for it to be considered as a good business.