Free «Soda Pop Organics, Inc.» Essay Sample

Report Objective

The main purpose of the current paper is to analyze the Soda Pop Organics’ financial statements and its current financial position, including the company’s mission, background, and outlook relative to the company’s financial health.

Soda Pop Organics’ Background, Mission, and Product Lines

It should be stated that the Soda Pop Organics is a rapidly developing company that started to produce its soft drinks in 2001. In addition, the beverage market can be considered as an example of oligopoly since there are several large companies that control over 85% of the market. These companies include the Coca-Cola, PepsiCo, Dr Pepper Snapple, and others. However, according to the conducted analysis, the market share of the leaders, as well as market’s monopolization rate decreased, which allowed for better growth opportunities for small-scale companies like the Mojo. In addition, due to the recovering of the U.S. economy and related increase in average income, the beverage market will also develop. Additionally, the number of customers who prefer health-based products is increasing, as well. Thus, the Soda Pop Organics has many opportunities to become a successful producer of heath-based beverages; however, on the other hand, it is threatened by the market’s monopolization by well-known companies.

Since the beginning of the company’s beverage production, its financial condition, sales, as well as profitability significantly improved. The company produces the healthy, plant-based, soft drink products.  Thus, its marketing segment includes all-aged consumers who want to consume the natural-ingredient products.

The company’s main competitive advantage is the mentioned natural-based soft drinks. As it has been previously stated, the company’s products are healthy and plant-based, which is a great advantage of the company’s products, especially in light of that most other beverages produced by the Coca-Cola or PepsiCo contain preservatives and other artificial additives. Thus, the company’s strategic thrust can be based on the development of new products for new markets, taking into account that the company produces only four types of beverages. Moreover, the Soda Pop Organics’s strategic objectives should be set based on increasing the current market share, as well as its sales. The company’s competitive advantages include the product’s natural components, organic ingredients, and exotic and explosive taste. To conclude, the company is able to become a very successful producer of healthy beverages.

The company’s mission is to offer healthy, plant-based, soft drink products from sustainable farming activities based only on the most wholesome ingredients. Thus, the company is focused on producing ecological and high-quality beverages with an aim of promoting a healthy lifestyle. Such mission is quite interesting due to the negative image of the beverages produced by Coca-Cola, for example. In fact, it is noteworthy that the company is included in the industry of natural and organic-ingredient soft drinks. According to the company’s management point of view, the customers want to see only natural ingredients in beverages. However, at the same time, many customers do not take into account the naturalness of the beverage’s ingredients while being focused on its taste. That is why the company should make its beverages not only ecologically clean but also tasty. The company offers three product lines, including soft drinks, flavored water, and organic tea lines.

Soda Pop Organics’ Outlook and Future Investments

The company is focused on delivering, investing, and branding their products in major markets across the world by 2025. The company’s research and development practices are focused on bottling and access to Organics’ products. The company expects to invest in 25 new bottling and distribution centers both domestically and internationally by 2025. Also, the Organics has invested in developing countires and small village farming activities. The company will have approximately 150 international farms that grow organic fruits, organic sugar, and organic tea. The company plans to invest about $2.5 million per year in an international branding trademark operation. It also plans to extend its business by using a branding strategy as a key success factor.

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The company will equalize its shareholders’ equity with its assets until the end of 2016 fiscal year. According to the company’s projections, its total assets will increase from $2.8 billion in 2013 to approximately $4.25 billion in 2017.

Summary of the Company’s Revenue, Assets, Liabilities, and Shareholders’ Equity

According to the Soda Pop Organics’ 2013 annual report, the company’s net operating revenues were $43.8 billion in 2013. It means that the company’s stakeholders may expect an increase in its income and dividends due to enhancing the company’s activity. In addition, the company received $7.8 billion of net income in 2013. It means that it is recovering after the difficult times of economic crisis. As it is known, assets and liabilities are the objects of accounting. Assets are resources controlled by the enterprise, as a result of past events, using of which will lead to economic benefits in the future.

The Soda Pop Organics’ total assets were $78.9 billion in 2013 fiscal year. It indicates a rise in the company’s ability to extend its business activity. Thus, the company’s stakeholders may expect the business to grow. Total assets include current and non-current assets. As it is known, the company’s current assets are used during a single operating cycle.  Non-current assets are such assets, which are used during more than one operational cycle and transfer their value to the value of finished products in parts. They include fixed assets, property, plant and equipment, intangible assets, etc. The company’s current assets are 34% of its total assets. 

Assets can be considered as directions of using the enterprise’s financial resources. These directions should be effective since without the effectiveness of using financial resources the company can become bankrupt. As it is known, liabilities are sources of forming the financial resources. Liabilities are the company’s obligations arisen as a result of past events, repayment of which will lead to decreasing of the company’s financial resources and economic benefits. The company’s liabilities were approximately $50 billion in 2013 fiscal year. It is about 63% of the company’s total assets.