External/Internal Factors Paper (Coke)
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.
Globalization
In a literal sense, one can simply define globalization as international integration; to take a product or service across oceans and cross cultures. The Coca-Cola brand has been built up for over a century and is recognized in over 300 countries. Nearly all corporate executives wish to take their product global. Essentially, well planned and well managed globalization creates name recognition and generates revenue.
Becoming a small fish in a gigantic pond creates a new series of problems. There is no such thing as a local problem in a global market. A problem overseas can spread like wild fire scaring stock holder and investors around the world.
In 1999 Coca-Cola experienced the flip side of globalization. The soft drink giant was hi...
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Company. Retrieved March 5, 208, from http://www.thecoca-colacompany.com/ourcompany/ar/leadershipmessages.html
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Globalization is defined as the process of interaction and integration among the people, governments, and companies and among different nations. This process has effects on culture, environment, political system, trade system or economic system, human physical well-being, human’s development etc.
Globalization is the shift toward a more integrated and interdependent world economy (Hill, 2005). Globalization has several different areas including the
I would define globalization as the action of interacting and merging between different countries throughout the world. In Mary Pat Fisher`s Living Religions, Professor Manfred Steger defines globalization as “the expansion and intensification of social relations and consciousness across world-time and world-space” (Fisher 18). Globalization has its positive effects. It allows different countries to communicate and discover new cultures. However, globalization has had negative impacts, especially on indigenous societies.
Coca cola has always dominated the markets outside United States unlike Pepsi’s internationalization strategy that took too long. Therefore, the long-term brand of Coca cola and better pricing strategies would help in competing with Pepsi. Unlike, Pepsi, Coca cola had targeted entering into partnership and alliances with local distributors and firms. This helps to develop strong relationship within the domestic firms to reduce the domestic barriers and thus, enhance the company’s competitiveness (Thabet, 2015). Lastly, the Asian markets consist of related and supporting industries to the soft drink industry that helps the companies in gaining a strong competitive position in the markets. Based on the competitive advantage of nation’s model, Coca cola has more home based advantages to develop a competitive advantage in relation to other countries on a global
CASE 1-3: Coke and Pepsi Learn To Compete in India The political environment in India proved critical in that their government was unfavorable to foreign investors. They prohibited the import of soft drinks since they felt it could be gotten anywhere. They also prohibited the foreign brand name and wanted the name Lehar Pepsi and Coca-Cola India, an indigenous name. These effects couldn’t have be anticipated prior to entering the market because the trade policies, rules and regulations of India were difficult and unpredictable.
Globalization is the tendency of businesses, technologies, or philosophies to spread throughout the world or the process of making it all happen. The global economy is known as a globularity every now and then. The advantages and disadvantages of globalization have been heavily examined and all of them vary. People who favor it say that it helps developing nations catch up to industrialized nations very quickly through increased employment and technological advances. On the opposite side people say that It makes nations sovereignty weak and allows the rich to ship domestic jobs overseas where labor is much cheaper. The quick spreading of McDonalds restaurants all over the world is a perfect example of globalization. The fact that they adapt their to suit local taste is an example of globalization. Mcdonalds has turned into the symbol of American social force and the embodiment of the Americanization of whatever is left of the planet. The message of globalized Mcdonalds is "If you consume like us, you are set to be like us." When actually by consuming like Americans individuals far and wide are just being enlivened to look increasingly like American's as to corpulence. However yet, Mcdonald's, for example numerous American organizations, have persuaded themselves that notwithstanding its blemishes, American society is unrivaled and in this manner its impact is just gainful to other, "lesser"
With the advent of the Internet, decreased shipping costs, and the removal of trade barriers, the world market has shrunk in such a way that everyone can be a player. While many businesses thrive solely on serving a small local area, a globalized company has the benefits of increased customer markets, gross production, and brand awareness. Take for example Coca-Cola; this multi-national corporation offers products in countries all over the world, operates in over 200 of those countries with the help of its franchisees, and is the most well-known beverage companies. It is interesting to note however, that as positive as globalization may seem, there are many negative ramifications and a large population of detractors to this movement. While increased product availability is good for profits, if a local market is inundated with imported products, locally grown or manufactured items may be squeezed out, to the detriment of the local economy. Although it is cost effective to have your product produced in another country with low wages, you are essentially taking away jobs from the people of your own country, negatively impacting your national economy. However, if you manufacture your products in a country with higher wages, you must increase your products’ prices which may be harmful to your profits. While maximizing your companies profits is always of great importance, it is essential that you weigh the pros and cons of globalization and its effects on not only your company, but the areas in which you wish to spread.
The Coca-Cola Company was founded in 1892. Since its inception, the organization has seen a steady increase in its market share over the years, and to this day has operations in over 200 countries worldwide. To achieve such success in its competitive market, Coca-Cola has employed sound strategies that have helped it become among the leaders in its industry. The Coca-Cola Company utilizes Market Based Management (MBM) techniques as well as Value Driven Management (VDM) techniques within the organization and in its market to help the firm sustain its stronghold of the market.
Coca-cola is the world’s biggest beverage company that manufacturers, retails, and markets nonalcoholic beverages. The company is headquartered at Atlanta, Georgia. The company was famed for its beverage Coca-cola which was invented in 1986. Coca-cola Company operates a franchise that distributes its products throughout the world. Its distribution chains and established territories have seen the company remain the most competitive beverage company in the world. At one point, Coca-cola was a monopoly in the world beverage market. However, there are various challenges that the company faces as it strives to maintain its exploits in the beverage industry. One of the challenges that are OD related is the accusations of worker intimidation throughout the world. The company has also been accused of seeking to stifle the operations of trade unions in the world. These issues are grave and have far reaching effects on Coca-Cola’s Organization Development. This essay examines this OD related problem and provides recommendations to this issue using the models and diagnostic instruments developed in previous O.D sessions.
Globalization encourages worldwide business. Globalization is an efficient process by which all the nations of world will commonly try to set regular universal standards & regulations (both created & recommended) which will encourage business around different nations. Business around nations or elements crosswise over different fringes is called universal business.
The definition of globalization is, “Globalization is the connection of different parts of the world. Globalization results in the expansion of international cultural, economic, and political activities. As people, ideas, knowledge, and goods move more easily around the globe, the experiences of people around the world become more
Globalization is the connection of different parts of the world. Globalization results in the expansion of international, cultural, economic, and political activities. As people, ideas, knowledge, and goods move easily around the globe, the experiences of people around the world become more similar. (“Definition of Globalization“, n.d., ¶ 1)
Globalization is nothing but interaction, integration exchanging of views and other aspects of culture. It is very important to spread any matter from one part to the other part. If you observe the modern world we could easily say it is modernized or in other words globalized. Globalization is helping us to see different cultures, social activities and cultural division around us.
Globalization is a very complex phenomenon, basically it means the relationship and connection between countries are getting closer, and they have more contact, politically and economically. Globalization has influenced the world in many different ways, like culture, economy and politics.
Globalisation is a very complex term with various definitions, in business terms, “globalization describes the increasingly global nature of markets, the tendency for transnational businesses to configure their business activities on a worldwide basis, and to co-ordinate and integrate their strategies and operations across national boundaries” (Stonehouse, Campbell, Hamill and Purdie, 2004, p. 5).