Essay on Alternative Performance Measures

Currently, Alternative Performance Measures have taken their way, especially in the communication sectors, impacting more than 30% of the biggest companies internationally. Alternative Performance Measures are current relevant issues that positively affect companies, either internal or external, depending on the size of the companies. In Switzerland and the United States of America, 25% of the most developed companies use Alternative Performance Measures to provide some additional technology, thus bridging the gaps between the management and investors. These measures have enabled the companies and other firms to think extensively concerning companies’ factors, both external and internal. The most important of this current issue in companies is that it ensures transparency (Chua et al.;2020). Since the companies have clear financial reports, their operational mechanisms can be easily determined even in the future. The main aim of this report is to have a definitive discussion on how Alternative Performance Measures have currently affected many companies’ operational performance, especially in gaining operating profits. According to the production statistics, Alternative Performance Measure has adjusted the average production of Coca-Cola Company, thus increasing its profits annually.

Alternative Performance Measures strategy mainly provides Coca -Cola company with definitive mechanisms to understand its adjusted profits, especially by opening more channels to tap more customers. Basing the 2016 annual report, its profit margins have gone higher drastically due to its adjusted operational performance. The ratios at which the company is working has been influenced by the Alternative Performance Measures, thus allowing the company to engage more effectively with current issues. In this current issue, the sales performance of Coco-Cola company has been relatively increased by 15%, thus adjusting profit earned per unit sale. Additionally, the performance of the Coco-Cola company has increased exceptionally, therefore pursuing companies’ strengths to perform better than before. The use of Alternative Performance Measures in the Coca-Cola industry has been helpful since it was introduced because it allows the company to operate at its maximum point. Additionally, this technology has allowed the company to perform locally and internationally, thus getting more profits. According to the CFA institute and technology arguments, many companies have adopted Alternative Performance measures internationally because it provides valuable information in the provision of additional financial statements.

Using Alternative Performance Measures, the Coco-Cola company can easily understand its weakness and strengthens since it can retrieve its financial statements at the end of the year. Consequently, Alternative Company Measure could help Coco-Cola achieve a better understanding of its production, promoting its long-term economic performance (Georgieva et al.;2017). Alternative Performance Measures will enable the Coco-Cola company to provide additional information, thus forecasting future cash flows and in turn. The application of Alternative performance Measures has become the most popular instrument of a company’s corporate communication, thus ensuring fair and transparent communication in the company’s value creation. In this report, there is a need to understand that APM is primarily used to improve most companies’ final results, such as adjusting profits margins and corresponding company’s production figures.

The adjustment and performance figures in the company projects adjustments of profits and essential industrial performance. Alternative Performance Measures provides coco cola company essential strategies for dealing with competitive firms such as Pepsi and other related drinks companies. Pepsi has recorded an approximate revenue of 245.7 billion dollars over the past fiscal year. With its strategies to ensure it achieves the best in staying on top of the competition, the company has a diverse range of beverages and snack offerings, diversifying its revenue. However, the company has been well handled by their competitor Coca-Cola, which has made them come up with new brands and campaigns that will enable their immense revenue growth. The Coca-Cola company revenue with an estimated figure of 457 billion US dollars. Which dictates the level of profitability of the company alongside their competitor in the financial market. The company’s revenue gives key insights from analysis of the economic figure’s trends and decision-making patterns. The decisions that will increase the company’s profits. This is done through continuous monitoring and maintenance of reliability in accounting periods compared between financial periods (Yun et al.;2020). The generation tax reports are done by Coca-Cola Company make use of the revenue reports, which is done to determine the organization’s taxable business profit. The company increased the amount of net revenue generated through digital marketing channels and increased the customer base by producing quality products. Basing the new technology of APM, most companies such as Coco-Cola and Pepsi have gained positive effects since they are adjusting their operational performance, thus getting high profits unlike before. This report provides a definitive discussion on how current issues such as alternative performance measures have impacted most companies’ basic operations, both local and international.

References

Chua, J. Y., Kee, D. M. H., Alhamlan, H. A., Lim, P. Y., Lim, Q. Y., Lim, X. Y., & Singh, (2020). Challenges and Solutions: A Case Study of Coca-Cola Company. Journal of the Community Development in Asia, 3(2), 43-54.

Chua, Ju Yun, Daisy Mui Hung Kee, Hadeel Ahmad Alhamlan, Pei Ying Lim, Qi You Lim, Xin Yin Lim, and Niharika Singh. “Challenges and Solutions: A Case Study of Coca-Cola Company.” Journal of the Community Development in Asia 3, no. 2 (2020): 43-54.

Gorgieva-Trajkovska, O., Bunjaku, F., & Georgieva Svrtinov, V. (2017). Ratio Analysis: A “Coca Cola Company” Case. International Journal” Knowledge”, Invited Scientific Papers”, Institute of Knowledge Management, Skopje, 18(1).