For-profit organization

For-profit organization

Coca Cola Enterprise is one of the world’s biggest for-profit companies. It specializes in beverage and refreshments, and it is notably the biggest producer of the same. In this particular paper, the conflicting accounting principle will be accessed on the organization as well as analyzing of the financial reports for the last two financial years. The various departments in this institution will also be accessed and their strengths and weaknesses determined. It is also notable through the years this organization has experienced good returns for investments judging from their financial reports.

The company last two financial reports.

The net operation revenue for financial year 2009 was $30,990 million, the revenue increased in 2010 to a high of $35,119 million. When it comes to the gross profit realized, year 2009 the gross profit was $19,902 million which reflects a 64.2% gross profit margin. The following year the gross profit increased to $ 22,426 million, which accounted for 63.9% of the gross profit margin. It is notable that the success has been achieved due to good governance in this organization (Kent, 2011).

The accounting principles that are applied in this organization are usually defined by the finance department of the government. However, sometimes the managers of the organization see it fit to incorporate some financial principles that are not usually consistent with the set principles by the government. Such a move only happens in case the managers feel that following inconsistent principle would improve their method of operations. It his however notable that the organization is usually forced to continue using the government set principles since at times incorporating new principles influences the operation of the organizations.

Just like any other organization, Coca Cola is divided into different departments. They have a production department, accounting department, marketing department and the secretariat department. All these departments have assigned roles that they play in the success of this organization. The departments are interlinked so as to ensure that the communication network has no flaws. In turn, the channel of distribution is very successful and there exists minimal miscommunication. Also notable about the method of communication is that any information needed is transmitted in time.

Among the notable successful linking of the departments is the linking between the sales, marketing and production departments. The linking means that the sales department informs the production department of how much demand is needed. Then the production department is instrumental in ensuring that it promotes the selling of the produced products. Another notable interlinking is the linking of the secretariats and the finance department, where these two departments work in partnership in developing the financial reports like the ones shown above. However, the information from other departments is also important for computations of the annual reports. The interlinking and the assignment of roles for the strengths of this organization, the weaknesses that are in existences in this organization are usually brought about by change. Not all the workers in an organization are willing to embrace change and some find it hard to adjust to it (Weygandt, Kimmel & Kieso, 2010).

When such a scenario occurs, it is only fair to include the workers in formulation of change so that they can be knowledgeable of it, and also explain to them the necessity of having it. Another way to minimize change is by having the change being brought about gradually so that even the workers who find it hard to adjust can have time in doing it. In case such measures are not followed, there is likely to be changes in the performance of the workers, which may not be desirable to the organization (Harmon, 2000). It would therefore be wise for the company managers to ensure they follow the above mentioned ways of bringing in change.

The set out standards, both the government and international accounting bodies are well suit when it comes to reporting of financial reports. It is usually a requirement that the financial records should be such that they show a true and fair statement of affairs. Such can only be achieved by following the set principles, since they are agreed among the various parties.

References

Harmon, P. ( 2007). Business process change: a guide for business managers and BPM and six sigma professionals. Massachusetts: Morgan Kaufmann.

Kent, M. ( 2011). United States Securities and Exchange Commission. Annual Report Pursuant To Section 13 Or 15(D) Of The Securities Exchange Act Of 1934 , 57.

Weygandt, J.J., Kimmel, D. & Kieso, E. D. (2010). Accounting Principles. (9th Ed.). John Wiley and Sons.