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COCA COLA Strategy for Globalization
COCA COLA Strategy for Globalization
COCA COLA Strategy for Globalization
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Challenges in the last 10 years have been a direct result of the decline in sugary beverages. Thus, the sales of carbonated drinks has declined for the last 10 years and the industry has struggled as consumers began to make healthier choices (DeCarlo, 2016). Moreover, consumers reduced their soda consumption and leaned more towards juices, waters, and other options such as protein drinks (DeCarlo, 2016).
Other challenges has been Coca-Cola’s footprint worldwide. Notably, in 2005, Coca-Cola was selling and operating in 16 countries from Bahrain to Zimbabwe (DeCarlo, 2016). However, by 2015, Coke had closed operations in six countries, but had gained operations in nine other countries (DeCarlo, 2016).
Equally, when leadership was asked to identify the greatest challenges in the market, they replied:
Implementing
Unfortunately, all corporations face issues at the corporate level and Coca-Cola is no different. In fact, Ukrainian prosecutors have launched a criminal investigation into the online publication by Coca-Cola of a map that showed Crimea as a part of Russia (Polityuk, 2016). In 2014, Russia annexed the peninsula from Ukraine, which lead to the imposition of economic sanctions on Russia (Ukraine, 2016). Unbeknowst to Coca-Cola, the map was changed by their advertising company without their approval (Polityuk, 2016).
Next, the Coca-Cola Company has been in negotiations with the Chicago Teamsters local 727. Luckily, an agreement was made on a fair three-year contract for 319 production and warehouse workers (Petty, 2015). Notably, this agreement will transfer Local 727 members into a new health and welfare plan previously available to Coca-Cola management. Additionally, employees will receive annual wage increases and employer-matched 401(K) retirement benefit contributions under the terms of the agreement, which will be retroactive to May 1, 2015 (Petty,
Most of us think about the Coca-Cola Company in a positive light because it continues to bring us what is arguably the tastiest soft drink around. One would expect that a company that describes itself on its website as “a company that exists to benefit and refresh everyone it touches” and has been so successful for years would have a corporate culture and code of ethics that matches this image. However, a closer look at the Coca-Cola Company, its corporate culture and allegations of corruption paint a less than rosy picture of the soft drink leader. A Coca-Cola employee named Matthew Whitley made a splash when he was fired on March 26, 2003 and then sued the Coca-Cola company a couple of months later for the large sum of forty five million on the grounds that he had been fired in retaliation for raising concerns about accounting fraud and other misconduct. He was fired just five days after sending his allegations to the company's top lawyer. When Coke balked, Whitley turned for relief to a new legislation: the Sarbanes-Oxley Act of 2002. He filed for whistle-blower protection under the act’s section 806 provisions and initiated federal investigations into the Coca-Cola Company.
The soft drink industry in the United States is a highly profitably, but competitive market. In 2000 alone, consumers on average drank 53 gallons of soft drinks per person a year. There are three major companies that hold the majority of sales in the carbonated soft drink industry in the United States. They are the Coca Cola Company with 44.1% market share, followed by The Pepsi-Cola Company with 31.4% market share, and Dr. Pepper/Seven Up, Inc. with 14.7% market share. Each company respectively has numerous brands that it sales. These top brands account for almost 73% of soft drink sales in the United States. Dr. Pepper/Seven Up, Inc. owns two of the top ten brands sold. Colas are the dominant flavor in the U.S carbonated soft drink industry; however, popularity for flavored soft drinks has grown in recent years. The changing demographics of the U.S population have been an important factor in the growing popularity of these flavored soft drinks. The possible impact of this factor will be addressed later in the case.
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
Also, to save and recycle the usage of water. To defuse further boycotts or demonstrations against their products, they need to set up specific funds to have people cultivated on certain awareness, help fund agricultural products and set up seminars in schools to make people aware of certain information they need to know. The furor will definitely subside in long-term if Coca-Cola doesn’t talk to the people but the best way is to face the situation directly by giving a statement to the
Coca-Cola is the most famous and “consumed soda in the whole world”, making this one of the most powerful corporations in the world. (The New York Times, n.d.). Since late 1930’s unions have been formed with a main purpose to improved wages, hours, working conditions and benefits for its members. Two different entities have been created ever since such as the Services Employees International Union (SEIU) and the American Federation of labor and Congress of Industrial Organization (AFL-CIO) constituting of about “56 national and international labor unions in the United States” (American’s Unions, n.d.). SEIU has been fighting for the rights and fair society throughout the years, supporting unions in other countries with
The CSD (carbonated soft drink) industry is one that is very competitive. A few firms dominate this industry, most notably Coca Cola and Pepsi Cola. This is due to substantial barriers to entry. Cadbury-Schweppes, producer of products such as 7up and Dr. Pepper is the third leading company in this industry. Due to the dominance of Coca Cola and Pepsi, Cadbury-Schweppes faces the daunting task of having to fight for market share and survive in this fiercely competitive industry. Using economic analysis for support, Cadbury-Schweppes will need to use its strengths in the non-cola categories to compete in this CSD industry.
Coca-Cola HBC has 36,362 employees among those 87% are highly engaged based on the latest statistics recorded on their website (Coca-Cola HBC 2016). The company has developed new set of corporate values two of which specifically designed to address the concerns observed during their latest employee survey including, work-life balance and providing more opportunities regarding “employee input into the business”. The company has tried to
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.
The authors informed that, the CEO of Pepsi Company came up with this plan right after two days of Coke Company announced their plan about opening a $14 million bottling plant, it can be understood that the CEO of Pepsi Company came up with this plan simply to compete against Coke Company and promote their brand in China more than the Coke Company. Moving to the facts from analysts, the authors informed that, “Neither company releases sales or profit figures for the country, but analysts say Coke has 52% of the carbonated soft drink market, vs Pepsi’s 32%. Coke also has the top soda brand, Sprite. But Pepsi-Cola is No. 2, while Coke’s flagship, Coca-Cola, is third” (Einhorn and Byrnes, 2009, p.70). According to the facts from analysts provided by the authors, Coke Company is on top after all.
Considering individuals are becoming more health conscious it would be beneficial for Coca Cola to continue producing even more healthy products. Producing healthier drinks could potentially get their products back in schools. Researching into cheaper materials as well as environmentally friendly alternatives to plastic would be another recommendation. The main concern for Coca Cola is water supply. Without water Coca Cola would not be able to stay in business. It is recommended for Coca Cola to reduce the amount of water it uses. They have already begun a goal to improve water use. “Our 2020 goal is aggressive and builds on the 21.4% water efficiency improvement we’ve made since 2004. We expect to increasingly assess not just the quantity of the water used to grow our product ingredients, but the impact of that use as well” (Improving,
As well as mounting political persecution of its products, like they are facing today. They must rely on past experiences to get through, but likely will need to start studying the new trends to stay relevant. Learning from Others Coca-Cola has been able to learn not just from their own blunders, but from other beverage companies they’ve acquired for either product expansion or for resources they have that could help them.
Coca - Cola : Claims, Values and Polices Coca-Cola is a well-known and cherished brand name. When people think of this name, memories tend to overflow in their heads. Why do you need to be a member? Because, not only does Coke taste great and refresh your own personal memories, it also fills you with memories of the Coca-Cola like "Always Coca-Cola", the antics of the Coke polar bears, and all of the different ads that have represented Coke over the years. Just about every ad you see, as a consumer, has tons of hidden meanings.
Although produced by main market players, soft carbonated drinks cost more than similar products from local and private label manufacturers, consumers are willing to pay an extra price for the name, particular taste, and image. Fierce competition in the CSD industry forces Coca-Cola and PepsiCo to expand into new and emerging markets which present high potential for the company’s development. However, some foreign markets proved to be highly competitive. Coca-Cola Company’s operations in China faced antitrust regulations, advertising restrictions, and foreign exchange controls. iii.
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 including Schweppes, Oasis, 5 alive, Kea Oar, Fanta, Lilt, Dr Pepper, Sprite and PowerAde. Despite this, Coca-Cola often struggles to maintain its market share over its main rival PepsiCo in some overseas markets, particularly Asian countries.
Look SDmart, Retrieved 05/16/07, from http://findarticles.com/p/articles/mi_m1365/is_1_31/ai_63974359/print. Coca-Cola: A Technological View, retrieved 5/18/07, from http://projects.olin.edu/ahs/HOT2004/PolarBears/content.htm. Coca-Cola Our Company- Around The World, retrieved 5/18/07 from http://www.coca-cola http://www.thecoca-colacompany.com/ourcompany/aroundworld.html Nutrition Business Journal. Penton Publishing. October/November 2005.