What should Coke do with CCE moving forward ?

Expert Solution

With CCE moving forward Coke should focus on retaining it. CCE or Coca-Cola Enterprises is a bottling entity and retaining it will create several advantages and benefits for Coke. First of all Coke will be able to save significant amount of money staggered over several years in future. Secondly Coke will get a greater dominion over its domestic market in North America if it absorbs CCE’s North American unit. So on one hand Coke will be able to increase profitability as cost reduces. On the other hand it will be able to turn around its sales in North America which has been facing a decline. CCE will also stand to gain as it will be able to focus on the European territories and hence will be able to rationalize its operations going forward.

jeff jeffy answered 2 years ago

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