WORKING CAPITAL AND FINANCIAL ENVIRONMWENT(pepsi-cola and coca cola)
: EXPLAIN THE FUNCTIONS OF INTERMEDIARIES AND FINANCIAL REGULATORY BODIES WITHIN THE COMPANY (PEPSI-COLA AND COCA COLA
Firstly , let me discuss the functions of intermediaries Intermediaries helped in the business of Pepsi Cola and Pepsi Cola . The will help reduce cost of doing business and they will also increase revenues of said companies . This observation is confirmed by . Allen G (1999 ) in discussing Place ‘ when the author said , Costs are associated with an exchange and can be reduced by reducing the number of transactions (exchanges . Marketing intermediaries increase efficiency in [banner_entry_middle]
making products available to target markets . Through contacts experience , specialization , and scale of operation , intermediaries usually offer the organization more than it can achieve on its own
In addition there other functions performed by said intermediaries . Thus , Allen , G (1999 ) continued saying Intermediaries smooth the flows of products to buyers by performing the key functions of informing , promoting , and physical possession (including negotiation , title , payment , risk taking and financing . A producer will use an intermediary when it believes that the intermediary can perform the function (s ) more economically and efficiently than it can . The information function involves gathering and distributing marketing research and intelligence about the environment for planning purposes . Scanner technology provides a great amount of information The promotion function involves developing and spreading persuasive communications about an offer . The physical possession function consists of the transporting and storing of products . This activity involves the negotiations for reaching an agreement on price and other terms . The title is the actual transfer of ownership from one organization or person to another . The payment involves buyers paying their bills . The risk taking function assumes the risk of carrying the product and receiving payment . The financing function involves acquiring and using funds to cover costs
Now let me discuss the function of financial regulatory bodies within the companies . Financial regulatory bodies are of course not intermediaries . Instead they regulate the business of the companies they are usually government agencies like the US Securities and Exchange Commission . To regulate means to have the companies need to comply with certain government rules for the legal and normal functioning of the companies . One best example of a regulatory function is the prohibition for companies to connive for purposes of monopoly . Monopoly is an economic situation where the only one company controls the industry and there prices could also be controlled and thereby prohibiting competition among companies
As an example , Preliminary Country – Uganda (2005 ) quoted the following , According to unconfirmed reports , the two biggest soft drink producers , franchises of big international companies Pepsi Cola and Coca-Cola , are alleged to have bought into the leading water bottling companies . According to the reports , Pepsi bought into NC Beverages , bottlers of Highland brand mineral water and Rwenzori Beverages Companies makers of Rwenzori Brand is alleged to have gone to Coca Cola . However , the two companies deny the allegations . Instead the companies state that they have joint distribution arrangements Products from the water and soft drinks companies… [banner_entry_footer]
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