...Operations Strategy in a Global Environment Coca-Cola Coca-Cola is a global business that operates on a local scale in every community they do business. Coca-Cola sells more than 1.8 billion servings of their products each day. Coca Cola’s global strategy is huge and the company is considered an international phenomenon. Coca-Cola does business in over 200 countries. Ninety-four percent of the world’s population recognizes the brand. Coca-Cola produces more than 500 brands sold in over 20 million outlets worldwide. Coke was one of the four founding companies that established the Global Business Initiative on Human Rights back in 2009. They helped found this initiative as a way of ramping up respect for human rights across their business model as well as showing respect to their entire global supply chain. Coca Cola’s global strategy is obvious when you visit their web site. They have information describing their global strategy all over their site. Coca-Cola has adopted a transnational approach to their global strategy. The company operates hundreds if not thousands of global operations throughout the world. Coca Cola’s main headquarters is located in the United States and it is where they produce their syrup concentrates. Coke then sells their syrup concentrate to independent bottlers worldwide. The bottlers produce the final drinks by mixing the syrup with filtered water and sweeteners, carbonating them, and then putting them in cans and bottles. The bottlers are the ones...
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...Cultural Impact on Business: A Case Study on Coca Cola’s Cultural Issues in India admin August 20, 2012 Blog No comments Socio Cultural barriers faced by coca cola in India Coca – cola, the world’s largest selling soft drink company had established its strong presence in the world since 1886. Coca-Cola is the first international soft drink brand to enter the Indian market in the early 1970’s. Till 1977 Coca-Cola was the leading brand in India; later, due to FERA (Foreign Exchange Regulation Act), they left India and didn’t return till 1993. Coca-Cola had to face many issues regarding its quality, resource exploitation and market exploitation along with price-quality trade-offs. People all over India are challenging Coca-Cola for its abuse of water resource. Coca-Cola had affected both quality and quantity of ground water. Due to its waste extracts, Coca-Cola was criticized for polluting the nearby fresh water and ground water and soil; because of this issue, farmers are suffering from water scarcity. Despite all these social and cultural issues, customers are using Coca-Cola due to its strong brand reputation all over the world. This is because Indians are now using more soft drinks and the youngsters are more in this category. However, with many studies and policy changes, Coca-Cola will be able to establish its brand reputation and increase its market share in the near future. This report is prepared from an organizational point of view. The point here is to prepare a report...
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...Coca-Cola: International Business Strategy For Globalization Dr. Michael Ba Banutu-Gomez, Professor, Management and Entrepreneurship, William G. Rohrer College of Business Rowan University, Glassboro, NJ ABSTRACT The purpose of this research was to analyze the efficiency of global strategies. This paper identified six key strategies necessary for firms to be successful when expanding globally. These strategies include differentiation, marketing, distribution, collaborative strategies, labor and management strategies, and diversification. Within this analysis, we chose to focus on the Coca-Cola Company because they have proven successful in their international operations and are one of the most recognized brands in the world. We performed an in-depth review of how effectively or ineffectively Coca-Cola has used each of the six strategies. The paper focused on Coca-Cola's operations in the United States, China, Belarus, Peru, and Morocco. The author used electronic journals from the various countries to determine how effective Coca-Cola was in these countries. The paper revealed that Coca-Cola was very successful in implementing strategies regardless of the country. However, the author learned that CocaCola did not effectively utilize all of the strategies in each country. Key Words: Coca-Cola, International Business, Strategy, Globalization, International Marketing, Labor Relations, Distribution, Diversification, Management, Channels, Costs, Gains and Collaboration. INTRODUCTION...
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...SOCIO CULTURAL BARRIERS FACED BY COCA-COLA IN INDIA AND SOLUTIONS TO OVERCOME THE ISSUES CONTENTS 1. EXECUTIVE SUMMARY 3 2. TERMS OF REFERENCE 3 3. CURRENT SCENARIO 3 4. ANALYSIS OF THE SITUATION 4 4.1. STRENGTH 5 4.2. WEEKNESS 5 4.3. OPPORTUNITIES 5 4.4. THREATS 5 5. SOLUTIONS AND RECOMMENDATIONS 6 5.1. PUBLIC RELATIONS 6 5.2. ENHANCE RELATIONSHIP WITH GOVERNMENT 6 5.3. LAUNCH MARKETING CAMPAIGNS 7 5.4. LISTEN TO THE CUSTOMERS 7 5.5. MANAGING STYLE 7 5.6. PULL BACK PRICE- QUALITY TRADE –OFF PLANS 7 6. SUGGESTIONS 8 7. FORECASTS AND PREDICTIONS 9 8. CONCLUSION 9 9. REFERENCES 10 EXECUTIVE SUMMARY Coca – cola, the world’s largest selling soft drink company had established its strong presence in the world since 1886. Coca-Cola is the first international soft drink brand to enter the Indian market in the early 1970’s. Till 1977 Coca-Cola was the leading brand in India; later, due to FERA (Foreign Exchange Regulation Act), they left India and didn’t return till 1993. Coca-Cola had to face many issues regarding its quality, resource exploitation and market exploitation along with price-quality trade-offs. People all over India are challenging Coca-Cola for its abuse of water resource. Coca-Cola had affected both quality and quantity of ground water. Due to its waste extracts, Coca-Cola was criticized for polluting the nearby fresh water and ground water and soil; because of this issue, farmers...
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...Coca Cola Company Student’s Name Institutional Affiliation The limitless efforts by Coca-Cola Company to attain its goal of being the best beverage producing company in the world are vibrant. For this, several strategies have ministered its journey to globalization. Among the key strategies is the global marketing strategy where Coca-Cola aimed at questing the thirst of every individual in the world. Key commercial advertisements initiated on the media caught people’s eyes and hearts. The company has become an Olympic game sponsors, and this enhance the spread of its fame worldwide (Passport, 2013). Another strategy is that of product differentiation. The company ensures market opportunities procurement at every level. The efforts it makes to satisfy all customers by understanding their needs are paramount. The company warrants are serving all people despite their age and through observing their health by producing diet cokes. An individual’s economic status is not an impediment to obtaining a coke drink as it is available in various bottle sizes and shapes. The last key strategy espoused by this company is technology utilization. Technology has improved on transportation of the company’s products and there has been an invention of computerized machines thus mass production. Communication improved, and this heightened the trading process. Global management and HR strategies in multinational companies (MNCs) varies greatly from that of local companies. The HR policies...
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...University of Phoenix MMPBL 560 Managing in a Cross-Cultural Environment November 9, 2009 Managing across cultures is no easy task for any organization regardless of its economies of scale or long standing reputation in the market; the challenges are many, including coping with the flux of change, managing diverse groups of employees, communicating, and negotiating agreements with host countries. This paper illustrates how Johnson and Johnson, Allstate, Starbucks, Bank of America, Coca-Cola, Shell, Whataburger, and Sony USA address their cultural diversity. Thus, the authors of this paper analyze, evaluate, and assess the various successful best practices of these organizations to help Riordan Manufacturing’s situation. Riordan Manufacturing’s decision to open a new production facility in China has created some challenges involving the scarcity of Chinese skilled employees. Whereas leadership attempts alternative solutions to synergize the company’s strategies to address the situation, Riordan recognizes that the integration of a diverse workforce has the potential to alter the company’s performance (University of Phoenix, 2009). Accordingly, in analyzing cultural synergy strategies to help mitigate undesirable outcomes takes extra consideration, yet it is a necessary task (Hodgetts, Luthans, Doh, 2005). When reviewing Johnson and Johnson, it is evident that the company struggled with managing diversity and cultural differences. However, Johnson and Johnson stepped...
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...SOCIO CULTURAL BARRIERS FACED BY COCA-COLA IN INDIA AND SOLUTIONS TO OVERCOME THE ISSUES CONTENTS 1. EXECUTIVE SUMMARY 3 2. TERMS OF REFERENCE 3 3. CURRENT SCENARIO 3 4. ANALYSIS OF THE SITUATION 4 4.1. STRENGTH 5 4.2. WEEKNESS 5 4.3. OPPORTUNITIES 5 4.4. THREATS 5 5. SOLUTIONS AND RECOMMENDATIONS 6 5.1. PUBLIC RELATIONS 6 5.2. ENHANCE RELATIONSHIP WITH GOVERNMENT 6 5.3. LAUNCH MARKETING CAMPAIGNS 7 5.4. LISTEN TO THE CUSTOMERS 7 5.5. MANAGING STYLE 7 5.6. PULL BACK PRICE- QUALITY TRADE –OFF PLANS 7 6. SUGGESTIONS 8 7. FORECASTS AND PREDICTIONS 9 8. CONCLUSION 9 9. REFERENCES 10 EXECUTIVE SUMMARY Coca – cola, the world’s largest selling soft drink company had established its strong presence in the world since 1886. Coca-Cola is the first international soft drink brand to enter the Indian market in the early 1970’s. Till 1977 Coca-Cola was the leading brand in India; later, due to FERA (Foreign Exchange Regulation Act), they left India and didn’t return till 1993. Coca-Cola had to face many issues regarding its quality, resource exploitation and market exploitation along with price-quality trade-offs. People all over India are challenging Coca-Cola for its abuse of water resource. Coca-Cola had affected both quality and quantity of ground water. Due to its waste extracts, Coca-Cola was criticized for polluting the nearby fresh water and ground water and soil; because of...
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...Socio Cultural Barriers Faced by Coca-Cola in India and Solutions to Overcome the Issues SOCIO CULTURAL BARRIERS FACED BY COCA-COLA IN INDIA AND SOLUTIONS TO OVERCOME THE ISSUES CONTENTS 1. EXECUTIVE SUMMARY 3 2. TERMS OF REFERENCE 3 3. CURRENT SCENARIO 3 4. ANALYSIS OF THE SITUATION 4 4.1. STRENGTH 5 4.2. WEEKNESS 5 4.3. OPPORTUNITIES 5 4.4. THREATS 5 5. SOLUTIONS AND RECOMMENDATIONS 6 5.1. PUBLIC RELATIONS 6 5.2. ENHANCE RELATIONSHIP WITH GOVERNMENT 6 5.3. LAUNCH MARKETING CAMPAIGNS 7 5.4. LISTEN TO THE CUSTOMERS 7 5.5. MANAGING STYLE 7 5.6. PULL BACK PRICE- QUALITY TRADE –OFF PLANS 7 6. SUGGESTIONS 8 7. FORECASTS AND PREDICTIONS 9 8. CONCLUSION 9 9. REFERENCES 10 EXECUTIVE SUMMARY Coca – cola, the world’s largest selling soft drink company had established its strong presence in the world since 1886. Coca-Cola is the first international soft drink brand to enter the Indian market in the early 1970’s. Till 1977 Coca-Cola was the leading brand in India; later, due to FERA (Foreign Exchange Regulation Act), they left India and didn’t return till 1993. Coca-Cola had to face many issues regarding its quality, resource exploitation and market exploitation along with price-quality trade-offs. People all over India are challenging Coca-Cola for its abuse of water resource. Coca-Cola had affected both quality and quantity of ground water. Due to its waste extracts, Coca-Cola was criticized for...
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...International Trade & Academic Research Conference (ITARC ), 7 – 8th November, 2012, London.UK. COCA-COLA: International Business Strategy for Globalization Michael Ba Banutu-Gomez William G. Rohrer College of Business, Rowan University, USA Key Words International Differentiation Strategy, Global Strategy, International Marketing Strategy, Culture in International Marketing Strategy, Coca-Cola Strategy, International Distribution Strategy, Choosing Distributors and Channels, The Challenge of Distribution, Hidden Costs And Gains In Distribution, International Collaborative Strategy, International Labor Relations and Management Strategy, and International Diversification Strategy. Abstract The purpose of this research was to analysis the efficiency of global strategies. This paper identified six key strategies necessary for firms to be successful when expanding globally. These strategies include differentiation, marketing, distribution, collaborative strategies, labor and management strategies, and diversification. Within this analysis, we chose to focus on the Coca-Cola Company because they have proven successful in their international operations and are one of the most recognized brands in the world. We performed an in-depth review of how effectively or ineffectively Coca-Cola has used each of the six strategies. The paper focused on Coca-Cola's operations in the United States, China, Belarus, Peru, and Morocco. The author used electronic journals from...
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...Grass Roots Company: The Coca-Cola Company A company typically grows to become an international entity by first successfully competing in the domestic market. Once successful it can venture into the global market. However, before the company begins to compete in the international market, they must first conduct research on the laws, culture, and customs associated with the area being considered. It is very important to do this if the company wishes to be successful. Failure to do this research can be detrimental to the success of the business. It would most likely lead to a waste of company funds. A company must determine if their current Human Resources (HR) practices can be used overseas or if they need to be altered. The company must at least ask themselves the following questions: Will the cultural differences have an effect on the company’s current HR practices? If so, how will they change their HR practices to address the different culture? Is it feasible to expand the business in this particular location or is it better to find a different country or location that has similar beliefs and cultures? Other aspects to consider are the compatibility of its strategy, the availability of experienced local talent, available local resources, and the effectiveness of multicultural employee relationships in regards to productivity. They must determine if the company’s current strategic plan will work in the new location? A company must realize that their strategy may work in...
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...INTRUCTION With modern international marketing being more prosperous , the majority of firms are eager to globalize their productions in order to be more competitive ,therefore, advertisement design is increasingly significant for business.Advertising is a favorable representation of product to make consumers, customers and general public acquainting of the product. It enables the potential buyers, general public and end users to be aware and familiar with the brands, their goods and services.(Hassam ,2004),so the firms will have a superb reputation. When the companies put an emphasis on advertising and globalizing merchandises, one of the primary projects which cooperations must implement is to improve the advertising to their productions.However, international advertising entails dissemination of a commercial message to target audiences in more than one country, target audiences differ from country to country in terms of how they perceive or interpret symbols or stimuli, respond to humor or emotional appeals, as well as in levels of literacy and languages spoken. How the advertising function is organized also varies.Therefore,companies decentralize their budgets and placed in the hands of local subsidiaries, resulting in greater use of local advertising agencies.(Susan P. Douglas and C. Samuel Craig New York University).As the result of local advertising agencies, the advertising strategies are different for the multiple cultures and diverse religious believe to some extent...
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...Environmental Factors Paper Invented in 1886 by Dr. John S. Pemberton, an Atlanta pharmacist, Coca-Cola went on to become the world’s #1 selling sparkling beverage. Frank Robinson, who was Dr. Pemberton’s partner and bookkeeper, named the new beverage and designed the distinctive lettering which is still in use ("Coca-Cola History", n.d.). In 1916, it was decided there was a need to develop a bottle to set Coca-Cola beverages apart from imitators, and so the unique contoured bottle was born ("Coca-Cola History", n.d.). The distinctive lettering and unique bottle combined to form a highly recognizable and often used trademark. Fast forward 127 years, over 3,500 Coca-Cola products are available in over 200 countries ("Our Company", 2014), meaning the Coca-Cola Company is successful at considering the various effects and influences pertaining to global and domestic marketing. * Global Economic Interdependence, Trade Practices and Agreements * In many cases, foreign countries and their economies rely on each other more than ever. Some countries have an abundance of natural resources or raw building materials, while others focus on agriculture as the main source of their gross domestic product. This simple fact affects supply and demand for both types of countries. Country A needs oil and Country B supplies them with it. Country B needs produce items and Country A supplies them with it. Coca-Cola beverages are by no means necessary to human life or industry, but the money the company...
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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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...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 to as Coke. It was first offered as a fountain beverage by mixing Coca Cola syrup and carbonated water. It is sold in stores, restaurants and vending machines in over 200 different countries. The Company is one that has been around for over 100 years. Coke is a drink that spans all ages, colours, races, and countries. They have on occasion, introduced other cola drinks under the...
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...Transcript of Coca-Cola photo credit Nasa / Goddard Space Flight Center / Reto Stöckli PRESENTATION OUTLINE COCA-COLA HERITAGE TIMELINE 1886 -2013 How might Coca-Cola have responded differently when this situation first occured, specially in terms of responsibility to negative perceptions among Indians of Coke and other MNCs? If Coca-Cola wants to obtain more of India's soft drink market, what change does it need to take? Companies like Coca-Cola and PepsiCo in demonstrating their commitment to working with different countries and r especting the cultural and natural environments of those societies. WONG KIM MAY ESHA CHOWDHURY KHO XIAN WEI 3.1% of all beverages consumed around the world are Coca-Cola products. DO YOU KNOW? Coke make so many different beverages that if you drank one per day, it would take up 9 years to try them all. Coca-cola's $35.1 billion in revenue makes it the 84th largest economy in the world, just ahead of Costa Rica. The Coca-cola brand is worth an estimated $74 billion : more than Budweiser, Pepsi, Starbucks and Redbull combined. If every drop of Coke ever produced were put in 8-ounce bottles and laid end-to-end, they would reach the moon and back over 2000 times. DO YOU KNOW The red & white Coca-cola logo is recognized by 94% of the World's population. There are 33 non-alcoholic brands that generate over $1 billion in revenue. Coca-cola owns a whopping 15 of them. Around the world, the average person...
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