MarkSoc – the Marketing society at FMS, Delhi took the first step in this series by organizing a session in association with Coca Cola on August 31, 2007. Mr Ravi Prakash, Director (Commercial Finance) and an FMS alumnus, assisted by Mr Jai Kumar, Finance Analyst, took an interactive session on ‘Value Chains – Basics of Beverage Industry’ .
The focus of the session was to illustrate to the students how the principles of Financial and Management Accounting and Corporate Finance are applied to real life situations in the beverages industry and how economic models are built around various products and packages. Mr. Ravi Prakash also dealt with new product economics and illustrated the kind of financial analysis that organizations perform before making investment decisions around new products.
In course of the discussion, he elaborated on the cost structure of a Coke bottle and the distribution of profits made by different players in the value chain. Thereafter, he dealt with launching of a new product by explaining the key factors like Initiative Risk, Success Ratios, Future Costs, Monte-Carlo Simulation, etc. The entire discussion was based on a case study approach. The valuable take away and enthusiastic response of the students made the session a great success.