Enterprise Risk Management Project

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Coca-Cola Bottling Company Consolidated was formed 116 years ago in Greensboro North Carolina. Here they started to begin to produce and deliver an ironic brand there. It was all started by J.B. Harrison where he started selling the bottles. In 1955 they started to make 10,12, and 26 ounce family size and king sized bottles. In 1982 they first introduced the idea of Diet Coke. Also, in 2002 they celebrated their 100 year of business. Currently, the company’s corporate offices are located here in Charlotte.

Coca-Cola Bottling Company Consolidated is integrated into its parent company Coca-Cola by production, marketing, and distributing non-alcoholic Coca-Cola products, as well as Snapple, Dr. Pepper, and Monster Energy. CCBCC buys the concentrated syrup used to make the soda from Coca-Cola, who then bottles and distributes the finished product to the end consumer. (Annual Report)

The company currently outright owns six different distribution centers as well as seven production centers with three combination facilities. They also leases a few of its facilities including seven distribution centers and two combination distribution/production facilities. The total operating square footage is 5,531,000, with 2,448,000 of that footage being owned by the company. 3,083,000 square feet are leased by CCBCC. Predominantly, the production and distribution facilities are located in the midwest, as well as a few locations along the East coast and in New England. (Form 10-K)

The Coca-Cola Bottling Company Consolidated has had a consistent CEO since 1994 named J. Frank Harrison III, which aids the company in having solid long-term goals that they are dedicated to. Mr. Harrison states that his and CCBCC’s overarching purpose is to, “”Honor God in All We Do.”” (Annual Report)

Since the end of fiscal year 2017, CCBCC’s employee number had reached a total of 16,500 workers. The company currently has 14,500 full-time employees with 2,000 employees only working part-time. Just four years earlier, the company only had 6,500 total workers working for the company. (Form 10-K)

Locally, there is a competitive business that can threaten Coca-Cola Bottling Company Consolidated’s profitability and overall wellbeing. Pepsi Bottling Ventures is located in Harrisburg, NC which bottles and sells all non-alcoholic Pepsi beverages. Dr. Pepper is produced, bottled, and sold by both major bottling companies in the Charlotte area, so for Dr. Pepper, the two companies are in direct competition. (About PBV)

The location of CCBCC also exposes the company to hazard risks. There are some homes behind the facility as well as a large wooded area which are susceptible to fire risk, that could potentially threaten the wellbeing of the facility as well as the company at large. In addition to that, there are two large reservoirs directly to the West of the facility that could potentially be susceptible to flooding. National Tank Service is also located directly behind the facility which could expose CCBCC to hazard risk from fire, as well as the potential for groundwater contamination. (CCBCC Map) National Tank Service repairs and cleans out large fuel tankers, which creates more hazardous waste which has the potential to contaminate the ground, disrupting the clean water supply. (National Tank Services)

Some current risk factors that Coca-Cola Bottling Company Consolidated faces is the potential for failure to successfully integrate recently acquired companies, (CCR & United) as well as their distribution channels, manufacturing, facilities, and employees into existing operations at CCBCC. In 2013, prior to the acquisitions, CCBCC had employed 6700 employees and 20.6 million customers. But in 2017, after the acquisition of the two companies, the employee number drastically rose to 16,500 employees serving 65 million customers. The risk no longer comes from the actual acquisition of the companies, but rather the integration of the two companies into CCBCC. The specific areas of the company that could be exposed to risk is during the integration process is culture, IT systems, production, distribution, as well as internal financial reporting. (Form 10-K)

Coca-Cola Bottling Company Consolidated “”uses various insurance structures to manage its workers’ compensation, auto liability, medical and other insurable risks. These structures consist of retentions, deductibles, limits and a diverse group of insurers that serve to strategically transfer and mitigate the financial impact of losses. The Company uses commercial insurance for claims as a risk reduction strategy to minimize catastrophic losses.”” (Form 10-K) Their profit objective is stated that their goal is to, “”generate long-term profitable growth for our shareholders.”” (Annual Report) In order to achieve their profit objective, the company uses several different financial institutions for commodity derivative instruments to minimize the concentration of credit risk. The company’s objective for continuity of operations comes by highly valuing the company and employees honesty and integrity, as well as working to maintain and improve on that integrity. In order for Coca-Cola Bottling Company Consolidated to make stable earnings quarter to quarter, their objective is to consistently earn a profit, while working to minimize losses over all operation aspects. The company’s growth objective is the “”ability to achieve both top-line volume and revenue growth in a challenging macro-economic environment, we remain keenly focused on improving our overall profitability and reducing our debt. We continue to invest strategically for all our stakeholders – teammates, customers, consumers, communities and shareowners – with a focus on long-term growth.”” (Form 10-K) CCBCC also strives to meet all local and federal laws and regulations, and requires all of its executives and employees to follow the same strict guidelines. In the event that new regulations are required to be followed, it is senior managements job to notify all workers of the change as well as coordinate how employees should change their behaviors to conform with the laws. In addition, Coca-Cola Bottling Company Consolidated’s societal concern objective is to meet the physical, spiritual, and emotional needs of residents in the local community. This can be achieved by assisting nonprofits and ministries by providing resources that enable them to serve the diverse needs of others. (Form 10-K)

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Enterprise Risk Management Project. (2020, Jan 08). Retrieved from https://papersowl.com/examples/enterprise-risk-management-project/

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