Coca Cola 2015 Annual Report Download - page 23

If we do not successfully manage our refranchising activities, our business and results of operations could be adversely affected.
As part of our strategic initiative to refocus on our core business of building brands and leading our system of bottling partners, we are accelerating our
refranchising activities in North America and have expanded our refranchising efforts to Company-owned or -controlled bottling operations in Europe, Africa
and China. Our refranchising activities require significant attention and effort on the part of, and therefore may become a distraction for, senior management.
In addition, in connection with refranchising transactions in North America, we recorded, and we expect will continue to record, noncash losses related to the
derecognition of intangible assets transferred or that will be transferred to bottling partners. There is no assurance that we will be able to complete
refranchising transactions on our expected timetable and on terms and conditions favorable to us; that our refranchising bottling or joint venture partners will
be efficient and aligned with our long-term vision for the Coca-Cola system; or that we will be able to maintain good relationships with the refranchised
bottling operations. If we are unable to complete contemplated refranchising transactions timely, on favorable terms and with partners who share our long-
term vision for the Coca-Cola system, our business and results of operations could be adversely affected.
If we are unable to successfully manage the possible negative consequences of our productivity initiatives, our business operations could be adversely
affected.
We believe that improved productivity is essential to achieving our long-term growth objectives and, therefore, a leading priority of our Company is to
design and implement the most effective and efficient business model possible. For information regarding our productivity initiatives, refer to the heading
"Operations Review — Other Operating Charges — Productivity and Reinvestment Program" set forth in Part II, "Item 7. Management's Discussion and
Analysis of Financial Condition and Results of Operations" of this report. Some of the actions we are taking in furtherance of our productivity initiatives may
become a distraction for our managers and employees and may disrupt our ongoing business operations; cause deterioration in employee morale which may
make it more difficult for us to retain or attract qualified managers and employees; disrupt or weaken the internal control structures of the affected business
operations; and give rise to negative publicity which could affect our corporate reputation. If we are unable to successfully manage the possible negative
consequences of these actions, our business operations could be adversely affected.
If we are unable to attract or retain a highly skilled workforce, our business could be negatively affected.
The success of our business depends on our ability to attract, train, develop and retain a highly skilled workforce. We may not be able to successfully
compete for and attract the high-quality and diverse employee talent we want and our future business needs may require. In addition, unexpected loss of
experienced and highly skilled associates due to insecurity resulting from our ongoing productivity initiatives, refranchising transactions and organizational
changes could deplete our institutional knowledge base and erode our competitiveness. Any of the foregoing could have a negative impact on our business.
Global or regional catastrophic events could impact our operations and financial results.
Because of our global presence and worldwide operations, our business can be affected by large-scale terrorist acts, especially those directed against the
United States or other major industrialized countries; the outbreak or escalation of armed hostilities; major natural disasters; or widespread outbreaks of
infectious diseases. Such events could impair our ability to manage our business around the world, could disrupt our supply of raw materials and ingredients,
and could impact production, transportation and delivery of concentrates, syrups and finished products. In addition, such events could cause disruption of
regional or global economic activity, which can affect consumers' purchasing power in the affected areas and, therefore, reduce demand for our products.
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Not applicable.
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