...Coca-Cola’s globalization and its main strategies by Olga Skuratovska Management 502 (MGT502) Professor Claudia J.Ford October 15, 2014 Olga Skuratovska Skuratovska1 Professor Claudia J.Ford Management 502 (MGT502) October 15, 2014 Introduction For my business case study research paper I chose the Coca-Cola Company. I went through a lot of information about the company, I learned the company’s history and analyzed their main strategies that made Coca-Cola one of the most successful and recognized beverage company in the world. “The Coca-Cola Company, founded in 1886, is the world leading manufacturer, marketer and distributor of non-alcoholic beverage concentrates and syrups. It currently operates in over 200 countries worldwide and is most famous for the innovative soft drink, ‘Coca-Cola’, but can now boast in the region of 230 different brands (www.coca-cola.com). Its headquarters are in Atlanta, Georgia. Its subsidiaries employ nearly 30,000 people around the world. 70% of the company volume and 80% of the company profit come from outside the United States. It is one of the most visible companies in the world. Their Coca-Cola product is now available all over the world and has resulted in the drink becoming the world’s...
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...Coca – Cola’s history in brief: Coca-Cola is a carbonated soft drink sold in stores, restaurants, and vending machines in more than 200 countries. It is produced by The Coca-Cola Company of Atlanta, Georgia. Coca-Cola Enterprises, established in 1986, is a young company by the standards of the Coca-Cola system. Yet each of its franchises has a strong heritage in the traditions of Coca-Cola that is the foundation for this company. The Coca-Cola company traces it’s beginning to 1886, when an Atlanta pharmacist, Dr. John Pemberton, began to produce Coca-Cola syrup for sale in fountain drinks. However the bottling business began in 1899 when two Chattanooga businessmen, Benjamin F. Thomas and Joseph B. White head, secured the exclusive rights to bottle and sell Coca-Cola for most of the United States from The Coca-Cola Company. The Coca-Cola bottling system continued to operate as independent, local businesses until the early 1980s when bottling franchises began to consolidate. In 1986, The Coca-Cola Company merged some of its company-owned operations with two large ownership groups that were for sale, the John T.Lupton franchises and BCI Holding Corporation's bottling holdings, to form Coca-Cola Enterprises Inc. The Company offered its stock to the public on November 21, 1986, at a split-adjusted price of $5.50 a share. On an annual basis, total unit case sales were 880,000 in 1986. In December 1991, a merger between Coca-Cola Enterprises and the Johnston...
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...impacted on by environmental factors. Organizations and firms involved in trading will experience that their marketing decisions are influenced by environmental factors domestically as well as internationally. This environmental paper will therefore, Focus on the Coco-Cola company as an organization whose domestic and global marketing decisions, are affected by environmental factors. In this paper specific areas such as the high level of domestic and global environmental factors that may impact the organization’s marketing decisions and the impact of technology also on the marketing decisions will be addressed. The paper concludes with the final section which will analyze the importance of social responsibility and ethics as related to Coco-Cola’s marketing offerings. A quick check on Coca-Cola’s website on an attractive home page, the slogan Welcome to the World of Coca-Cola greets a visitor. As an organization which has demonstrated its ability and capacity to trade successfully its products on the global market, the company has been able to satisfy its consumers on the domestic market while its global appeal has been soaring, thus making the coca-cola product the clear leader in the beverage industry. Some of the high level domestic and global environmental factors which could possibly impact on Coca-Cola’s marketing decisions are; economic influences, globalization, political climate, regulatory requirements, demographic environment, and direct competition. Some of these factors...
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...Globalization and the Coca-Cola Company Introduction Today, Coca-Cola is one of most well-known brands in the world. This company has continued to gain momentum and growth, capitalizing on the rapidly expanding beverage industry and ranking as the largest beverage company in the world. With its push for global market share, Coca-Cola now operates in over 200 countries with over 84,000 suppliers. Currently, over 70% of Coca Cola’s business income is generated from non-US sources (Coca-Cola Company, 2012). In over a century, Coca-Cola has grown the company into a multi-million dollar business. However, the road to success has not always been easy for Coca-Cola. Many countries have banned the use of Coca-Cola products, claiming that these products are “threatening public health” and “encouraging obesity.” Many labor practice suits have been filed against the mega beverage company with accusations of “child labor sweatshops” and “discrimination in providing health care benefits to workers.” In addition, the beverage industry has been flooded with competitors introducing new soft drink products, such as Pepsi, along with soft drink alternatives, such as Gatorade, bottled water, fruit juice, and energy drinks. Coca-Cola has faced the challenge by introducing new beverage brands including Sprite, Fanta, Minute Maid, Simply Orange, Fresca, Vitamin Water, Smart Water, Odwalla, and Powerade. In light of the obstacles Coca-Cola has overcome, the company has remained true to its commitment...
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...Coca-Cola marketing channel strategy study in China Chapter Coca-Cola Company's development in China Section the basic situation of Coca-Cola Company 1. Coca-Cola and the company's produce Coca-Cola, the world's one hundred years the popularity of the wonderful liquid is from the United States in 1886 in Atlanta, Georgia pharmacist John Dr. Peng Bodun (John S. Pemberton) in the backyard at home, will Carbonated water and sugar and other ingredients mixed in a triangle pot in the invention. "Coca-Cola" is the English name was Pemberton's assistant and partner in accountant named Robinson. Robinson is a classical calligrapher, he considered that 'the two capital C character will look great', so he had to personally write cursive scripts using Spencer's 'Coca-Cola'. 'coca' is the son of refined spices cocoa leaves, 'cola' is the fruit of the cocoa component removed. "Coca-Cola" trademark has not changed over the past century. In 1892, businessman Hom Chandler in 2300 U.S. dollars to buy all the secrets of Coca-Cola franchise, and the creation of Coca-Cola Company. Under his leadership, less than three years Bianba Coca-Cola extended to across the country. In 1899, Benjamin Franklin Thomas andղķʿ??̘ Whitehead signed with the Candler regional development in the United States most of the bottling business contracts. Since then its development momentum will be unstoppable in 1904 developed into a 120 bottling...
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...GLOBALIZATION The world today has been described as a ‘global village’, this stems from Marshall Mc Luhan’s concept that ‘the globe has been contracted into a village by electric technology and the instantaneous movement of information from every quarter to every point at the same time’. A closer examination of globalization will indicate that indeed the barriers of space, time and borders which once existed have now disappeared or are disappearing. Globalization has been described as the rapid increase in cross-border economic, social, technological exchange under conditions of capitalism, which also, influences all spheres of our life: culture, business, trade, politics, environment and even our mentality. It connects different countries and makes their interaction easier. The globalization of the world economy is reflected in many ways. The General Agreement on Tariffs and Trade (GATT) simulates free trade between countries which allows firms to trade more easily and move around the world. A result of this increased mobility is the increasingly large scope of money and capital markets and general regulations on Foreign Direct Investment (FDI). Globalization implies that there are forces that are global, objective and universal which restrict not only diversity, but also the scope for national governments’ policy formulations. An example of this, are the conditions of the IMF loan to the British Labour government in 1976 which led to a greater role for the private...
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...Coca-Cola Case Study Factors Affecting Management Christopher H. Thompson Texas A&M University Central Texas Instructor: Dr. David Geigle G BK 444.115 – International Business Texas A&M University-Central Texas Summer 2014 Absract There have been and/or are plenty of factors, both internal and external impact the planning function for management within an organization. Regardless of size, age, revenue, product, or service, planning is the most fundamental and important component for management. By no means is the Coca-Cola Company an exception. Arguably, Coca-Cola is the most recognized, most popular, as well as the biggest-selling soft drink in history. Synonymous for Coke, the company produced nearly 550 million servings in 2007 selling other brands such as Sprite, Dasani, Bacardi, Fanta, Minute Maid, and Powerade generating a net operating revenue of $28.9 million. (Isdell, 2007). This paper will examine 4 major internal and external factors that impact managerial planning; globalization, technology, diversity, and ethics. In addition, will explain how managers can use delegation to manage the impact that these factors have on the four functions of management. Brief History It all started back on a regular afternoon, in the year 1886 in Atlanta, Georgia, when a pharmacist named John Pemberton, by curiosity decided to stir up a fragrant, caramel-colored liquid (syrup) and was combined with carbonated water. This drink, named Coca-Cola, was...
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...firms can use this model to better understand the industry context in which the firm operates. In this paper I will use the five force model, as a Coca-Cola Company Business Manager to understand the Cola industry and try and develop an edge over rival firms. We will discuss each of the models individually and develop an understanding of where Coca Cola stands. Threat of New Entrants: Penetrating the soft drink industry is hard because of the established name of Coca-Cola and the other following reasons: Brand Image: Coca Cola invests enormous amount of money in marketing and advertising which has led to customer loyalty all over the world. People might not recognize Bill Gates or Warren Buffett if they are on a television show, but even a child who cannot read will recognize Coca Cola on television. We ran into a similar situation in the class room when the professor recognized a can of Coca Cola without even looking at the name printed on it. This makes it next to impossible for a new entrant to get in the market and compete with Coca Cola. Advertising: As mentioned above Coca Cola spend enormous amount of money on marketing and advertising, in 2011 alone the company spent $3.3 billion which makes it exceptionally hard for a new competitor to compete and gain visibility in the market. Retail and Global Distribution: Coca Cola in combination with its bottling partners has an extraordinary global distribution network, with that the advantage of economies of scale creates a...
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...Coca-Cola Global Business and Marketing Strategy Introduction As domestic markets mature, it is becoming more and more fashionable for organisations to seek growth through opportunities in foreign countries. Faster communication, new technologies and improved transport links are making international markets more accessible and businesses pursuing a global position can experience an upsurge in brand awareness and cost effectiveness. Global marketing is a relatively new concept linked to these developments. In the main, it is concerned with decisions for integrating or standardizing marketing actions across a number of geographic markets. This does not rule out any customization of the marketing mix to individual countries but suggests that organisations should capitalize on similarities between markets to build competitive advantage. Compelling cases can be put forward for both a standardization or adaptation approach to international marketing practice. These arguments are keenly explored, drawing from examples of Coca-Cola's international marketing programme to elucidate key points. Background of Coca-Cola As the world's largest manufacturer and distributor of non-alcoholic beverages, Coca-Cola is certainly no stranger to global marketing. Established in the US, Coca-Cola initiated its global expansion in 1919 and now markets to more than 200 countries worldwide. It is one of the most recognizable brands on the planet and also owns a large portfolio of other soft drink brands...
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...International Marketing. Submitted by: Fredrick Malingu Student ID: 12500 Submission Date: 24-11-2014 Contents Introduction 2 Part 1: international marketing mix strategies: standardization and Adaptation 2 Second part: Internationalization process theory 3 Conclusion 3 Introduction Many companies operation internationally today with elimination of many trade barrier in many countries in the world. These firms need to come up with international marketing strategies that will enable them complete favourably in these new markets. International marketing strategies mean that international subsidiaries act and formulate marketing ways independently as if they were local companies with minimal coordination or supervision from the parent company. This aims at meeting the local consumer needs in the market but at the same time not lowering the international standards of a brand. This paper discusses the two main marketing strategies that international firms like Coca cola use. These are standardization and adaptation. In standardization, a multinational company uses a uniform approach to marketing her brand so as to minimize costs and promote a global corporate image. On the other hand adaptation means that a firm uses unique marketing dimension that are adaptable to fit each of her local markets (Mathew & Zander, 2007).This paper looks at how practical a brand like Coca cola has used adaptation and standardization in international...
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...Class Assignments 11/1/2015 Kavitha Balakrishnan I. Select firms by yourself and describe process of internationalization of selected firm using a relevant framework to explain. * What is Internationalization? * As the process of increasing involvement in international operation. * Internationalization envelops all activities that a company undertakes with regards to its relations with foreign markets. * Internationalization can take many forms, such as investing in a foreign country (foreign direct investment), forming partnerships with foreign companies, subcontracting foreign experts, taking part in international networks, and many more. * Why consider going international? * To increase overall customer base * To offset seasonal fluctuations in local markets * To minimize risk of losing market share to clients who themselves use internet to find goods\ services in overseas markets * To offset increasing costs of doing business at home * To gain prestige with customers at home * Why STARBUCKS? In a globalized world where every company has the opportunity to explore the world in search of other profitable markets, there are different challenges and opportunities faced. I would like to explain this by focusing on Starbucks, one of the world’s leading coffee chains. Starbucks has come a long way from a coffee bean retailer to one of the world’s most recognized coffee houses. All throughout the years...
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...Globalization is defined as the spread of worldwide practices, relations, consciousness, and organization of social life. Globalization theory emerged as the result of real world concerns with the dramatic transformations of globalization as well as a reaction against the earlier perspective of modernization theory. Globalization can be analyzed culturally, economically, and politically. Some cultural theorists see globalization as producing homogeneity as a consequence of cultural imperialism while others see it as producing distinctive local forms. It is the process completed in the twentieth century by which the capitalist world-system spreads across the actual globe. Since that world-system has maintained some of its main features over several centuries, globalization does not constitute a new phenomenon. At the turn of the twenty-first century, the capitalist world economy is in crisis; therefore, according to the theory's leading proponent, the current "ideological celebration of so-called globalization is in reality the swan song of our historical system" (I. Wallerstein, 1998: 32). Globalization has impacted strongly on the Coco Cola Company which is one of the largest Multinational Cooperation around the world today. The Coca-Cola logo is one of the world’s most recognised trademarks and an indicator of the extent of Coca-Cola’s penetration into communities across the world. It was created in Atlanta, Georgia by Dr. John S. Pemberton and is simply often referred...
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...Running Head: COCA-COLA AND THE FOUR Coca-Cola and the Four Functions of Management Tiffany Woodward University of Phoenix Abstract: We will be explaining how internal and external factors affect the four functions of management in the Coca-Cola Company. We will be providing specific examples for internal and external factors that affect the company; the factors are as follows: globalization, technology, innovation, diversity, and ethics. Coca-Cola and the Four Functions of Management The Coca-Cola Company is one that we have loved and enjoyed for many years and more to come. The company was established in 1886 by Dr. John Pemberton in Atlanta, Georgia. Today the well-known soda is sold in over 200 countries and is consumed at the rate of more than one billion per day. The four functions of management are planning, organizing, leading, and controlling. Coca-Cola had to do all of these to become the successful, thriving company they are today. Globalization is an external factor that would affect these functions. “Through the late 1990s, under CEO Roberto Goizeta, Coca-Cola pursued a strategy that involved focusing resources on Coke’s megabrands, an unprecedented amount of standardization, and the official dissolution of the boundaries between the U.S. organization and the foreign operations”. (Ghemawat, 2011) Coca-Cola has to recognize how much business that they have around the world and adjust any strategy to keep being successful. In the last few years...
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...describing the market entry of two global consumer product companies, PepsiCo and Coca-Cola Corporation into a Big Emerging Market (BEM), India. It traces the history of the challenges encountered by these two companies in the developing country environment of India from the late 1980s to the present time. Emphasis is placed on lessons learned by the two companies as they adjust to competing in an unfamiliar and rapidly-changing environment. Key themes include: - The effects of the changing political scene resulting in the imposition of a non-standard domestication policy on foreign direct investors. - The need for foreign companies to adapt their marketing and competitive strategies to suit conditions in the Indian marketplace. - And the role of ‘globalization’ policies across the marketing mix variables, but particularly in the case of promotional strategies. Answers to Questions: Q1. The political environment in India has proven to be critical to company performance for both PepsiCo and Coca-Cola India. What specific aspects of the political environment have played key roles? Could these effects have been anticipated prior to market entry? If not, could developments in the political arena have been handled better by each company? A1. The political environment of India has had a very significant impact in the way foreign businesses operate in the country. Both companies benefited from the opening up of the market in the early 1990’s...
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...Excelsior College Coca-Cola M5A2 Aleksander Laskowski BUS 435 International Business Prof. Irwin Nathanson 09 June, 2013 Introduction Coca-Cola was founded in 1886 and has just celebrated its 127th anniversary. The Atlanta based multinational corporation is an American icon, employing 71,000 employees in 200 different nations. The company is a perfect example of success in capitalizing on foreign growth, with over 70 percent of case volume being in foreign markets. To reach the iconic status, Coca-Cola has gone through multiple organizational changes in strategy and in structure. Roberto Goizueta changing strategy from localization to globalization, and its benefits In 1981 when Roberto Goizueta became the CEO of Coca-Cola, he decided to change the strategy of the company from one focused on localization to a more standardized, global one. The strategy was changed in order to save on costs, which are considerably higher when using a localization plan, compared to a globalization approach. When a product becomes standardized, its production becomes much cheaper, rather than a customized item under a localization strategy. By cutting the cost Coca-Cola could aggressively price their products in international markets to gain market share, and increase consumption which was at low levels of 10-15 percent compared to that of the U.S. (Hill, 2013). Yet another benefit of a globalization approach is the centralization of decision making, which allows the firm to see...
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