...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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...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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...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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...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 spends on marketing in various economies affects many...
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...U06a1 – Integrated Global Marketing Case Study The Coca-Cola Company Terry D. Copeland Capella University MBA 6012 June 28, 2013 Company Selection and Overview The Coca-Cola Company (Coca-Cola) was first established in 1886 by Dr. John Pemberton in Atlanta, Georgia. Initially distributed at Jacobs’ Pharmacy for five cents a glass, the fledgling company sold just nine glasses of Coca-Cola a day for the first year (Coca-Cola, 2013). By 1891, Atlanta businessman Asa Candler, a prolific salesman, acquired the rights to the business for $2300; and as the company’s first president, his vision to transform Coca-Cola from an invention into a national brand was set in motion. He immediately recognized the potential of the new company and began to implement the marketing strategy that propelled Coca-Cola to its current standing as the world’s leading manufacturer in the beverage industry producing over 500 brands in over 200 countries with an estimated 1.8 billion servings consumed per day all over the world (Coca-Cola, 2013). Candler initially gave away coupons for complimentary first tastes, and outfitted distributing pharmacies with clocks, urns, calendars, and apothecary scales bearing the same red and white Coca-Cola script brand that remains as the world’s number one brand to this day (Coca-Cola, 2013). People saw the Coca-Cola brand everywhere, and by 1895, Candler had built syrup plants in Chicago, Dallas...
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...Environmental Factors One mission of the Coca-Cola Company is to refresh the world. In order to refresh the world, Coca-Cola has to reach the world and distribute the refreshments throughout the world. The Coca-Cola Company has done just that since its establishment in 1886. Since establishing themselves in the beverage market, Coca-Cola has earned more than $15 billion in revenue, employed more than 150,000 employees, and has products in over 200 countries. Coca-Cola has had to research the global and domestic markets to ensure a need for their product. With the research, comes compliance in all regulations when distributing or creating the product in global and domestic areas. Companies have their own procedures in place to guide employees through the ever-changing needs of consumers. These procedures provide an example to the employees regarding the conduct of the employees as business is conducted within global and domestic markets. The procedures also help in the decision-making of company executives as they explore expanding business in the global market. The Coca-Cola Company is a perfect example of a company using both domestic and international marketing. Marketing’s importance in the business world increases day by day. For Coca-Cola to market at a domestic level, they must promote their local products to local consumers in local markets and satisfy the needs of the local consumers. For Coca-Cola to market at a global level, they must promote multinational...
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...Fit The Coca-Cola Co. The biggest multinational beverage company Coca-Cola was born in 1892 by Asa Griggs Candler in Georgia. Today The Coca-Cola company is selling more than 400 brands in 200 countries and 94% of the world population knows or heard about the Coca-Cola company by their product Coca-Cola, Coke, Cola or Coca etc., possibly it is the most recognized carbonated beverage company in the world (Sivny 2007). According to Journal of American Business review, what makes the Coca-Cola Company successful in the global food industry is their strong global strategy that based on four powerful strategic foundations: labor and management strategy, collaborative, marketing and differentiation strategy (2013). When companies start to operate internationally they have to decide how to staff their facilities by choosing from three frameworks that covers international employment: ethnocentric, polycentric and geocentric staffing approaches. One of the key to success of the Coca-Cola Company is implementing the geocentric approach to their staffing strategy, which is choosing the best mixture of home, host-country and third party managers to manage the operation. According to Statista, statistic shows that the number of employees of the Coca-Cola company worldwide is 130.6 thousand in 2013 (2013). One of the Coca-Cola’s mission towards their employees is to create a better working place, and inspire their employees with the best working environment (Coca-Cola.co.uk...
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...New Launch Marketing Plan III Executive Summary Coca-Cola continues to be an industry leader in offering and reinventing some of its core drink products in new global markets. The company currently has captured over 50% of the soft drink market and seeks to obtain 55% or better in the next three years. With the introduction of its latest product, millions of new customers can be reached. The New Product Launch Marketing Team is prepared to introduce the “Snatch a Pack” in both the domestic and global markets; with a great push on its Coca-Cola International India’s market. An emphasis is placed on Coca-Cola International India because it is one of the most populous countries in the world and is receptive to international trade. The product is cost-effective, easy to use, and very flexible. Launching the product, “Snatch a Pack” will help the company expand its customer base while increasing revenues by an estimated $2.5 billion. An integrated communication marketing plan will be developed to ensure that market segmentations are identified and communication channels are established. Pricing strategies for the Snatch a Pack will be defined and distribution plans established. An integrated communications marketing plan will be designed, three year objectives defined, and a description of the milestones to be implemented presented for the new product lunch. In addition Coca-Cola New Product Launch Team will create a budget to Market the “Snatch a Pack” and establish an evaluation...
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...The Marketing Review, 2003, 3, 289-309 www.themarketingreview.com Demetris Vrontis1 and Iain Sharp2 Manchester Metropolitan University Business School and Legal and General The Strategic Positioning of Coca-Cola in their Global Marketing Operation Examines how Coca-Cola has strategically positioned it self within the world’s soft drinks market. Given that they operate in over 200 countries, they are faced with a clear choice of whether to standardise their product offerings globally and reap the potential benefits of economies of scale, adapt their offerings to a particular market (which may facilitate increased market specific penetration), or adopt an integrated approach utilising both approaches simultaneously (Vrontis’ AdaptStand approach). There has been much literature written regarding the external and often uncontrollable factors which may impact upon a firms positioning strategy; this paper looks at these externalities and the internal controllables in order to derive a ‘best fit’ strategic and tactical approach. Moreover, this paper looks at the strategic international positioning of Coca-Cola by utilising a number of models. Keywords: Coca-Cola, global, international, strategy, positioning, adaptation, standardisation, AdaptStand, AdaptStandation, international, marketing, Introduction If we consider business to be akin to war, then perhaps there is no better starting point than the writings of Sun Tzu [circa 400-320 B.C.]. ‘The Art of ...
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...I. Introduction Coca-Cola and Pepsi have been competitors for over a century, but their fiercest competition has risen out of the fight to gain an advantage in the carbonated soft drink (CSD) industry, specifically in the United States. In the beginning, the competition yielded benefits for both firms. They were constantly trying to keep up with the other, which proved to be a mutually beneficial relationship. However, following the end of the millennium, US CSD consumption began to decline. By 2009, Americans were consuming CSDs at the lowest rates since 1989. During this decline, Coca-Cola struggled operationally and Pepsi attempted forays into new products and new markets. Forging ahead into the 21st century, both Coca-Cola and Pepsi faced the problems of sustaining growth and profitability in a declining CSD market and the challenges associated with non-CSD products. The ever-famous Coca-Cola formula was created by John Pemberton in 1886 and was marketing as a “potion for mental and physical disorders.” It was acquired in 1891 by Asa Candler and with marketing help, grew enough to grant a bottling franchise in 1899. Candler thought the company would perform better in fountains than bottles. Candler sold the company to investors in 1919, the same year Coca-Cola went public. Robert Woodruff took the reigns as CEO in 1923. He not only oversaw the pioneering of many technical innovations that would become critical to the CSD industry, but he also introduced the “lifestyle”...
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...Royce Echarry Assignment 3 The Coca Cola Company is a global business that operates on a local scale, in every community where the company do business. There able to create a global reach with local focus because of the strength of Coca Cola System which comprises company and more than 250 bottling partners. The Coca Cola is not a single entity from legal or managerial perspective and the company does not own or control all of our bottling partners, while many view the company as simply Coca Cola the system operates through multiple local channels. The company manufactures and sells concentrates beverages bases and syrups to bottling operations, owns the brands and it’s responsible for consumers brand marketing initiative. A transnational corporation is any enterprise that undertakes foreign direct investment owns or controls income gathering assets in more than one country, produces goods or services outside its country of origin or engages in international production. For example Coca-Cola Company is a transnational corporation because they have proven successful in their international operations and are one of the most recognized brands in the world. Coca-Cola has used each of the six strategies. Coca-Cola Company was very successful in implementing strategies regardless of the country. The company has 6 keys of strategies necessary for firms to be successful when expanding globally. Differentiation strategy is defined as a marketing technique used by a manufacturer to...
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...Business and Marketing Strategy Q1: Assessment of environmental issues affecting Coca Cola Provide a detailed assessment of the environmental issues affecting Coca Cola global business and marketing strategy. Given guidance in terms of opportunities or threats they may pose for the company in the future. Lo; illustrate how marketing decisions are affected by various forces in the external business environment “WATER is to Coca-Cola as clean energy is to BP.” So declares Jeff Seabright, Coca-Cola's manager of environmental affairs, when asked about the firm's new global water strategy. The fizzy-drinks maker unveiled that strategy as part of its annual environmental report, released this week. “We need to manage this issue or it will manage us,” says Mr Seabright. At first sight, the analogy with oil may seem odd, but it is not so far-fetched. Big Oil has long been the target of activists clamouring for action on global warming. BP stole a march on its oily brethren by accepting that climate change is a real problem, making smallish investments in clean energy, and grandly proclaiming itself “beyond petroleum”. Coca-Cola has also been targeted by activists, but over the issue of water rather than energy. The firm has been hit hardest in India. First, experts from Delhi's Centre for Science and Environment, a green think-tank, tested various soft drinks and determined that they contained high levels of pesticide. It turned out that Coca-Cola was not the cause of the problem...
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...Cola Wars Tonya Hall October 1, 2012 Executive Summary Coca-Cola Company is a leading manufacturer, distributor, and marketer of non-alcoholic drinks in the United States and all over the world. It is a multinational company that has market presence in almost all countries of the world. The company has also diversified from its initial soft drinks to manufacture fruit juices and other non-soda beverages. Its objective has been to maintain its global leadership in the supply of beverages and other non-soda beverages through maintaining high quality production methods that ensure that the name and products remain a household brand. Coca-Cola Company I. Current Situation The Coca-Cola Company is an American multinational beverage corporation and manufacturer, retailer and marketer of non-alcoholic beverage concentrates and syrups. It is one of the most recognized soft drink brands in the world. The company is best known for its flagship product Coca-Cola, invented in 1886 by pharmacist John S. Pemberton in Columbus, Georgia. The Coca-Cola formula and brand was bought in 1889 by Asa Candler who incorporated the Coca-Cola Company in 1892 (“Coca-cola management”, 2012). Asa Candler heavily promoted his product through the distribution of coupons for complimentary glasses of Coca-Cola and the distribution of souvenirs depicting the company trademark. Within three years of incorporation, Asa Candler announced that the beverage was being consumed in every state and territory...
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...Everything Related to the Coca-Cola Company Everything Related to the Coca-Cola Company Founded in 1886 in Atlanta, Coca-Cola Company is the world’s leading manufacturer, marketer and distributor of nonalcoholic beverage concentrates and syrups, used to produce more than 230 beverage brands. It is also the world’s most inclusive brand and company. It has already ventured regionally out of Atlanta to other states of United States since the late 19th century and its signature contour bottle was first manufactured in the early 20th century to distinguish themselves and assuring the genuine Coca-Cola. Though the company grew rapidly and roared into some European countries during the 1900s, its presence worldwide grew swiftly only after World War II. Year after year, the company has been discovering new foreign markets to bring higher profits as to fulfill its ultimate obligation to provide consistently attractive returns to the owners of the company and to enlarge its customer base in order to achieve economics of scale. Due to strong competition with Pepsi-Cola, Coca-Cola wants to reduce its dependence on United States market, which is their similar domestic market, as to reduce its risk and increase its global market share by going international. Presently, the company has already reached six billion consumers in nearly two hundred countries. Coca-Cola Company has been very successful in international marketing effort. Aggressive advertising...
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...Coca Cola’s International Strategy Table of Contents Introduction …………………………………………………………………………...…. 3 Coca-Cola’s International Strategy ..............................................................……….……. 4 Effective branding…….............................................................................................…….. 4 Quality Production ………...…...……………………………………………...………… 6 Good marketing Strategy……………………………………………………...…..………6 Global availability………………………………………………………………..………..7 Consistent innovation………………………………………………………………...……7 Communication across cultures…………………………………………………...………8 Assessing the environment………………………………………………………..………9 Interdependence Social Responsibility and Ethics……………………..……….……….11 Conclusion ………………………………………………………………….…….….….10 Bibliography…………………………………………………………………..................10 Introduction Managers of multinational organisations need to be able to manage businesses internationally. One needs to possess knowledge and skills beyond those of usual business expertise to be in a position to manage at the international level. For instance, managers in multinational firms are required to understand the various regulations in the countries in which the organisation operates. They also need to understand the values and customs, as well as the laws in the various societies in different countries. The ability to execute transactions in various nations is also essential...
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