Introduction
The chosen company for this project will be Coca-Cola Company. John S. Pemberton, a pharmacist from Atlanta, brought this soda drink to the public for the first time in 1886. Bookkeeper of the Pemberton Chemical Company and inventor of the phrase Coca-Cola, Frank Robinson, published the first iteration of the phrase. Pemberton initially advertised his drink as a cure for most common diseases, based on cocaine from the coca leaf and caffeine-rich extracts of the kola nut. In 1903, Cocaine was later taken out of the mixture. When Candler regained control of the company in 1891, and in 1892, he incorporated it again (Ciafone, 2019). The use of cocaine, however, has proved to be of no use.
Coca-Cola’s biggest international sales are in Japan, Brazil, China, India and Mexico. However, according to Ciafone (2019), Coca-Cola is banned in Cuba and North Korea due to divisive politics. It is safe to assume that neither North Korea nor Cuba will ever allow any American goods to enter their markets. Coca-Cola is widely distributed and sold outside of the United States, Europe, and Asia, with the notable exception of Cuba and North Korea. This firm has widespread recognition due to its numerous successful goods and the almost 4,000 beverage alternatives it provides through 500 different brands (Chua et al., 2020). Coca-Cola’s global TV advertising campaign has reached audiences throughout the globe.
The Push for Globalization
Globalization has played a vital role in eliminating cultural diversity and language barriers in today’s increasingly interconnected world. Globalization entails the capacity of a company to sell its products in many other countries and have many other branches worldwide (Lane, 2019). It helps employees and customers from different backgrounds and cultures to work, trade and communicate more effectively inside a company. A corporation in American Samoa, for instance, might send a representative and a staff to the country or countries of its choice if it wished to expand internationally (WordPress.com, 2019). They might get their company running by completing all the necessary tasks at that site, and then hire and train locals to fill the open positions. The ability to converse with one’s own people in their own tongue is a distinct advantage of hiring local workers.
Since globalization benefits both businesses and the general public, it is becoming increasingly frequent. The United States, for instance, can now sell more of its goods throughout the world because of the opportunities presented by globalization. As a result of globalization, there is now a greater capacity for instantaneous communication between governments and other international bodies (WordPress.com, 2019). Using it has reduced the gap in communication between nations. Some businesses are more successful on a global scale than others because they provide products that are in high demand everywhere. For instance, the Coca-Cola Company has reached the highest level of globalization possible. Globalization may also refers to the international flow of money, products, services, and technology to meet the varied needs of people of diverse nature. The Coca-Cola firms have expanded globally, and their goods are now recognized globally thanks to extensive television and online campaigns through advertisements.
Consumption Patterns Worldwide
People’s consumption habits may be defined as the ways in which they seek for, choose, and use goods and services that meet their various requirements. Daily technological advancements lead to daily enhancements in worldwide communication. Through the internet, people all around the world are experiencing new cultures and seeing the same advertising and news stories (Igi-global.com, 2019). Consumers are curious in the foods and drinks of different cultures and are open to trying new items, especially those promoted on the internet and in the media (Igi-global.com, 2019). It is because of this that individuals from all over the world have a love for related foods. Consumption habits seem to be converging over the world for this same reason.
Coca-Cola benefits greatly from this advancement in technology that is being witnessed. They have a business plan that allows for rapid growth, allowing them to easily expand into other areas after successful national campaigns (Chua et al., 2020). A firm that is looking to expand abroad would benefit from having their product tasted and advertised to individuals all around the world. Through separate operating agreements, the firm may use already bottling facilities and their staff to quickly start producing its products with just minor adjustments.
Coca-Cola’s capacity to rapidly adjust the distribution of its brands to meet the needs of its customers is a strength for the company both at both domestically and internationally. The first step in creating a Coke involves using highly filtered water that has undergone a reverse osmosis procedure. Daily production of this water serves as a foundation for the various products offered by the independent bottlers. That water can be bottled on the existing bottling lines all around the world with the addition of a few flavor-enhancing minerals or vitamins. Dasani is one product developed in response to the declining soda market (Chua et al., 2020). From Dasani to AHA, Coke’s water portfolio offers something for everyone. The firm manufactures dozens of different water products, including Smart water flavored water and AHA flavored sparkling drinks.
Issues of Doing Business Abroad
Despite being known globally, Coca-Cola soda is also known to contain caffeine. People get sick from drinking too much soda, soft drinks, and other sugary beverages. The company’s leadership has to address this problem, as it reflects poorly on the company’s reputation and brand. Patients admitted to the hospital for treatment of diabetes, hypertension, or another illness are often told to cut back on sugary drinks and processed foods rich in salt. There is a common misconception that the substances used to manufacture sodas are unsafe for humans. The company leaders should devise strategies to improve the nutritional value of their beverages in response to this scenario.
There are many concerns and problems at various businesses globally. However, there is always a remedy for every issue that companies face. As for the case of Coca-Cola Company, management should devise ways to tackle their challenges by finding a method to make the drink healthier. Despite the company offering other healthier options, such as Diet Coke, it is unlikely that most people would give up the original beverage even if they knew it was bad for their health (Coca-Cola Beverages and Products, (n.d)). Individual’s addiction to soda guarantees that they will consume at least one can on a daily basis. However, this is a disadvantage of this product because it makes individuals sick. As a result, it is obligatory upon the leadership of this company to reduce sugar content and develop other strategies for making the beverage healthier.
Conclusion
In conclusion, it is has been evidenced that Coca-Cola’s greatest strengths are its enduring brand recognition and innovative marketing campaigns. That is how they expect to increase their sales and, by extension, their customers’ loyalty. The global shift toward healthier beverage options is a challenge for the corporation. Additionally, the company’s efforts to promote its staple products as a wholesome option has failed. However, their capacity to rapidly adopt newer technologies to meet their customer needs has made them acquire a competitive advantage over other companies.
References
Chua, J. Y., Kee, D. M. H., Alhamlan, H. A., Lim, P. Y., Lim, Q. Y., Lim, X. Y., & Singh, N. (2020). Challenges and solutions: A case study of Coca-Cola Company. Journal of the Community Development in Asia (JCDA), 3(2), 43-54. Web.
Ciafone, A. (2019). Counter-cola: a multinational history of the global corporation. University of California Press.
Coca-Cola Beverages and Products. (n.d). Web.
Igi-global.com. (2019). Consumption Patterns. Web.
Lane, H. W., & Maznevski, M. L. (2019). International management behavior: Global and sustainable leadership. Cambridge University Press. Web.
Wordpress.com. (2019). Globalization. Web.
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