International Business - Coca-Cola Company - Case Study Example

International Business Report: Coca Cola Company Name Professor’s Name Course Name and Code Institution Name Date Executive Summary The Coca Cola Company is a massive multinational with presence in multiple countries. The company’s biggest and most vital strength is derived from its strong brand which has been developed for more than 125 years of marketing efforts that are consistent and adaptive to the market environment. The company also enjoys economies of scale and has the most effective and efficient network of suppliers and distributors who significantly contribute to the company’s overall success. This International Business report analyzes The Coca Cola Company together with its internationalization strategies Into Canada and China. Table of Contents Executive Summary 2 Table of Contents 3 Introduction 4 Coke Background 5 External Analysis of the Coca-Cola Company 7 Inbound logistics (suppliers) 9 Operations 10 Outbound logistics 10 Marketing and sales 11 Support Activities 12 Procurement 12 Human Resource Management 12 Information Technology 13 Organization Infrastructure 14 External Analysis 15 Political and Regulatory Environment factors 15 Economic Environment 15 Social/Cultural Environment 16 Technological Factors 17 Competitor Analysis 17 Competition 17 Threat of new entrants 19 Threat of Substitutes 19 Supplier Bargaining Power 19 Buyer Bargaining Power 20 Globalization and Internationalization 20 Company Internationalization Process (Canada and China) 20 Challenges 21 Strategies used to Address Challenges 22 Corporate social responsibility 22 Conclusion 23 References 23 Introduction Coca Cola is ranked third best global best brand behind Apple and Google which are valued company partners; technologies from these companies are used by Coke to create connections and relationships with customers. The estimated Coke brand value is approximated at $81.6 billion this year up 3% from last year. This is said to be four times more than any other beverage across the world (Coca Cola 2014). The brand is prospectively growing through continuous evolution with respect to changing markets as well as through innovation to stay a head of trends. For instance, the introduction of Coca Cola Life, minority ownership stakes in Monster and Keurig Green Mountain, and the ZICO coconut water acquisition guarantees a bright future for the company. Coke Company is the world’s largest beverage producer. The company is also unendingly increasing its volume growth globally; for instance coca-colacompany.com reported that this year gained 1% global volume growth in the third quarter and 2% annually (Coca Cola 2014). The main company global volume and value share growth was gained in non alcoholic read to drink beverages. Accordingly, the sparkling beverage global volume grew by 1% year to date regardless of the dynamically challenging macroeconomic environment including poor and adverse weather conditions experienced in certain regions of the world coupled with competitive pressure largely impacted company marketing activities (Statista 2014). However, generally the company registered growth in volume and value in its core sparkling beverages which significantly attributed to the successful Share a Coke marketing promotional activities across different markets globally (Drummond, Ensor & Ashford 2010). The company is competitively positioned to gain further growth through the year. Coke Company has announced five key strategies aimed at restoring its growth momentum together with re-invigorating future or long-term sustainable growth. The company CEO for instance reiterated that the company has started seeing early signs of growth and thus there is need to increase the pace and scope of change as the company continues to encounter economic environment that is challenging (Signh, Jindal & Samim 2011). For this reason, the company aimed at strengthening its financial performance in the long run, align the company with its incentive plans in order to necessitate profit and revenue growth, increase productivity so that by 2019 the company should realize $3 billion in annualized savings (Coca Cola 2014). Accordingly, Coke Company is aimed at streamlining as well as simplifying the company, together with continuation of the re-franchising of its major company owned bottling territories in North America before the end of 2017 (Coca Cola 2014). Despite the fact that, these strategies will take long to implement, the company is confident that they will position it to unendingly deliver sustainable value to company shareholders as the company strive to accomplish its 2020 vision (Coca Cola 2014). Coke Background The roots of Coca Cola Company can be traced back to the American Civil War; wounded from the Civil War, Colonel John Pemberton became addicted to morphine something that triggered him to find an alternative. He formulated a prototype of Coca Cola recipe that was originally called coca wine (Statista 2014). In 1885, French Wine Coca nerve tonic was registered by Pemberton. However, in 1886, the French Wine Coca was prohibited by a legislation that was passed in Atlanta and Fulton County (Azevedo & Chaddad 2006). Due to this, Pemberton immediately responded by inventing Coca Cola which was a non-alcoholic French Wine Coca version (Drummond, Ensor & Ashford 2010). Coca Cola was first sold as a patented medicine at five cents at Jacob’s Pharmacy in Atlanta, Georgia. Three versions of Coca Cola were sold by 1888 by three different businesses. The Coca Cola Company which is the current corporation was established in 1892 (Coca Cola 2014). When Asa Griggs Candler bought the company from the Pembertons, his marketing techniques helped the company into achieving its global market dominance in the beverage and soft drinks industry. The Coca Cola Company trademark was registered in 1944 in the US (Coca Cola 2014). Coca Cola Company produces concentrate that is then sold to its licensed Coca Cola bottlers across the world. These bottlers are responsible for producing finished products from the concentrate by mixing it with filtered and/or carbonated water and sweeteners. Consequently, the bottlers then distribute and sell finished company products to retail stores and vending machines (Azevedo & Chaddad 2006). The concentrate is also sold for soda fountains particularly to major food services distributors and restaurants. Other cola drinks produced under the Coke brand name include Diet Coke, Caffeine-Free Coca Cola, Coca-Cola Cherry, Coca-Cola Vanilla, Diet Coke Caffeine-Free together with other flavors including lime, coffee, and lemon (Drummond, Ensor & Ashford 2010). The company has its operations in more than 200 countries across the world using more than three thousand brands to market and sell its products and serving more than 1.8 billion company beverage servings daily. Coca Cola Company is continually innovative and introducing new products in order to meet the increasingly customer trends and needs as well as help in addressing com petition in different markets (Evans & Wurster 2000). Coke Company also has diversified its products by producing soft drinks including water and juices (Baker & Hart 2008). The general growth strategy for the company is growing its business through both acquisitions and organic growth (Ghemawat et al., 2001). For instance, over the recent past the company is increasingly investing in major emerging markets while also making acquisitions in already developed markets to increase its competitiveness in the soft drinks industry. Re-franchising together with re-organizing the bottling operations is also another significant corporate activities aspect (Coca Cola 2014). External Analysis of the Coca-Cola Company Coca-Cola as a company has got limited opportunities in its business but however, it should also continue to not only pursue but also exploit its numerous brands which have become successful. Owing its large income, the company also has a good opportunity of not only advertising its products which are less popular but also of ensuring these beverages are put on the market. Selling of such products on the same level that the company does with their major products could indeed prove to be very beneficial to the organization. Due to the success and power of the company, it is also able to buy out its competition and this can well be achieved through brand recognition which is a significant factor that has affected the competitive position of the Coca-Cola Company (Coca Cola 2014). Coca-Cola’s Culture and Entry Strategy Given the fact that Coca-Cola as a company is well recognized in almost 90 per cent of the world population, it will be very easier for it to enter into new markets because its products are well known and popular among different cultures and societies in the world. The company should therefore aim at ensuring that its brand name becomes even more known to an extent of achieving the 100 per cent mark. Despite the fact that this is actually an opportunity that most of the organizations in the world can only dream of, the Coca-Cola Company is in a better position of achieving this accomplishment through ensuring that the gap between the company and its competitors continues to be widened. Culture and the Entry Strategy of the Coca-Cola Company Culture, which refers to a collective “programming of the mind” that distinguishes the members of a particular human group from the other, has greatly aided the Coca-Cola Company in its endeavor to expand or penetrate into new markets across the world. Being a global company, the comprehension of different cultures of people in different nations has indeed been the major principle of the Coca-Cola Company as it strives in unknown markets located in different parts of the world. The success of the Coca-Cola Company has therefore heavily been dependent on its ability to well the different cultural elements like for instance ethnicity, history, income, politics, social history, culture, ethnicity, religion and the ethnicity of different people in different countries, (Drummond, Ensor & Ashford 2010). The proper comprehension of the different cultural elements as they exist in different nations or countries in the world is beneficial for the Coca-Cola Company because it has enabled it to quickly penetrate numerous markets in the world. Comprehension of different cultures in different countries has enabled the Coca-Cola Company to develop effective localization strategies which have proved to be beneficial for it especially when entering new global markets. Indeed, Coca-Cola as a company has indeed delegated its major decision making processes to individual markets based on the culture in such countries while also ensuring that its global brand strategy is well maintained through the use of collaborative practices. The company has been effective in tackling the emerging markets due to good comprehension of the different cultural backgrounds. Primary Activities This is mainly aimed at analyzing Coca Cola Value Chain. As already established above, the company markets more than 3000 products in more than 200 global geographic locations (Statista 2014). Due to this fact, it is imperative for the company to have exceptional value system for its operations. Coca Cola Company value chain analysis is analyzed using Porter’s value chain analysis model. Inbound logistics (suppliers) The company’s major and notable suppliers include Jones Lang LaSalle, Spherion, Ogilvy, IBM, Prudential, IMI, Cornelius, and Mather (Drummond, Ensor & Ashford 2010). These companies are responsible for providing Coca Cola Company with a wide range of materials including machinery, ingredients, and packaging (Baker & Hart 2008). The company has set standards that suppliers must adhere to in to ensure it receives materials in satisfactory condition. Such standards include: Compliance with laws and regulations (Coca Cola 2014) Compliance with laws and standards Freedom of association and collective bargaining Health and safety (Ghemawat et al., 2001) Environment In assessing their suppliers Coca Cola Company also use third parties who interviews them with employers as well as contract workers (Azevedo & Chaddad 2006). Accordingly, if suppliers have issues with the set guiding principles, they are given an opportunity to take corrective measures and if they don’t comply, Coca Cola Company has the right to cancel and/or terminate contracts with these suppliers. Operations The company core operations comprise of company owned concentrate and syrup production (Hill, Jones & Schilling 2014). Major environmental impacts to the company’s business are experienced along the value chain, for instance; bottling operations, networks of distribution, marketing and sales activities. Successful management of these activities is vastly challenging given the fact that they are outside company core operations (Azevedo & Chaddad 2006). However, the company continually address these by working hand in hand with the company partners in order to significant reduce the impact across all levels of manufacturing process (Ghemawat et al., 2001). This is usually achieved by increasing their knowledge with regard to the holistic environmental effect of the company business through the entire products’ life cycle starting from procurement of ingredients, production, marketing, delivery, sales and post-consumer recycling (Coca Cola 2014). Outbound logistics These are activities required for the company to get its finished products to the final consumers and they include; order fulfillment, warehouse, transportation, together with distribution management (Baker & Hart 2008). The global largest distribution system is owned by Coca Cola Company. The company has more than 800 plants that it either operates or lease across the world (Statista 2014). The 3000 beverage products that the company market are accessed by consumers in more than 200 countries in the world. Accordingly, some of the distribution units that the company use to reach customers include grocery stores like Sobeys, fast food restaurants like McDonald’s and vending machines (Drummond, Ensor & Ashford 2010). The company is also has more than 300 bottling partners including family owned operations and publicly traded companies (Statista 2014). The implementation of the Coca Cola System has enabled the company to cohesively work with its partners to come up with strategies that are essential in meeting customer needs. For example, Coca Cola Plant in Indonesia use boats to transport and distribute company products across hundreds of islands. Accordingly, in Africa, the company bottlers deliver products to home based stores and family-run kiosks. Marketing and sales Among all company products, Coca Cola only markets four worlds top sales drink brands (Azevedo & Chaddad 2006). The beverage industry is still relatively small, the company directly competes with two companies (Signh, Jindal & Samim 2011). Due to these, creativity is considered a vital and critical company’s marketing strategy (Baker & Hart 2008). Accordingly, the company has a singular goal of deepening and/or increasing customer brand recognition and connection. For this reason, company products are constantly reinvented. Accordingly, the used marketing strategy is designed in a manner that it is directly linked to customers; advertising, point of sale, and final consumption of products (Coca Cola 2014). Some of the strategies that the company has used include developing products and brands, changing packaging designs as well as designing new advertising campaigns (Ghemawat et al., 2001). Support Activities Procurement This process is manly associated with purchasing the necessary production resources, inputs and/or raw materials (Azevedo & Chaddad 2006). Coca Cola’s purchasing function comprises of specific procedures including billing system, supplier and vendor management, and raw material management system (Drummond, Ensor & Ashford 2010). The purchasing function regardless of being a support activity, it has the ability of enhancing cost position as compared to the company competitors. Enterprise Buyer Professional (EBP) is the main system that Coca cola use for its procurement functions. EBP is a web-based system that help the company to computerize/automate its indirect procurement processes (Coca Cola 2014). The system is vitally important in providing dynamic indirect goods procurement together with the management of all supply chain activities; the system has transformed paper-based procurement process into an online system (Baker & Hart 2008). By using EBP, Coca Cola has reaped benefits including capturing procurement data in a centralized data center which helps the company as a source for managing risk and identifying opportunities (Ghemawat et al., 2001). Secondly, it saves time while improving accuracy (Drummond, Ensor & Ashford 2010). Furthermore, supplier base can easily be rationalized and simplified thus ensuring consistency and well as competitive pricing (Signh, Jindal & Samim 2011). Human Resource Management This department is responsible for recruiting, training, payroll, compensation, employee relations and compliance, organizational development, and occupational health (Coca Cola 2014). The company takes full responsibility of all reward elements together with employee recognition to make sure that there is a complete, comprehensive pay package, benefits together with learning and development programs (Ghemawat et al., 2001). The Coca Cola University has programs designed to empower employees to unleash their full potential. The university is a virtual global university that represents a one-stop shop for capability building activities and learning across the company (Azevedo & Chaddad 2006). This university’s main objective is to equip people with knowledge and practical skills to succeed in the marketplace (Drummond, Ensor & Ashford 2010). Employees are at liberty to take classes in various business areas including franchise leadership, people leadership, customer leadership, and consumer marketing (Signh, Jindal & Samim 2011). Similarly, Coca Cola University undertakes best practice studies as well as provide consulting/coaching services with a singular objective of learning transfer between different sections of Coca Cola franchise system. Accordingly, the company values its employees’ health and well-being together with providing various market-competitive benefits programs that address the needs for employees’ benefits (Azevedo & Chaddad 2006). The company also assesses its employees’ benefits program given the changing market dynamics in order to ensure that employees get valued benefits which are provided with a wide range of options addressing individual and families issues for healthy lifestyle promotion (Ghemawat et al., 2001). Information Technology It is a key driver in all company value added activities; the rapid changing technology including automation and supply chain management is significantly important to the company ((Ghemawat et al., 2001)). IT at Coca Cola is used strategically for innovation, where the R&D employees are devoted to exploring new processes and products; here, technology is categorized in process development and product development. Similarly, technology is used to connect business parts with each other (Signh, Jindal & Samim 2011). It helps the company to focus on the key business indicators, understanding and aligning business processes and measuring them against customer’s perspective (Baker & Hart 2008). Organization Infrastructure Coca Cola’s organizational infrastructure include finance and accounting, quality management, legal services and IT services (Signh, Jindal & Samim 2011). The finance and accounting department has experts in financial accounting, company public disclosures together with reporting activities as well as acquisitions and mergers (Drummond, Ensor & Ashford 2010). The finance and accounting team help in maintaining operating records, preparing accounting and financial statement including balance sheets, income statements, and cash flow statements (Baker & Hart 2008). Coca Cola’s legal services department is responsible for reviewing, drafting and interpreting licensing and sales agreements including non-disclosure statements, license agreements and contracts (Statista 2014). The quality assurance on the other hand is tasked with ensuring quality and safety of the company’s beverages through The Coca Cola Quality System (TCCQS). This system is an integrated technique to manage environment, quality, health and safety. TCCQS is a global initiative that encompasses all business aspects (Coca Cola 2014). Coca Cola Company IT services range from application installation to designing computer networks together with information databases (Signh, Jindal & Samim 2011). Other services provides by the company IT group include database system design, data management, information system management (Drummond, Ensor & Ashford 2010). Coca Cola has invested heavily in a SAP-ERP system that is responsible for providing supply management, manufacturing management, financial management, material management, and human resource management. External Analysis Coca Cola Company operates in a global market and thus it essentially important to analyze the external factors that affect its global operations. The external analysis of the company will be analyzed using PEST analysis model. Political and Regulatory Environment factors Given the fact that Coca Cola products are categorized food products, the company is subjected to strict regulations (Signh, Jindal & Samim 2011). The negative impact of the company’s manufacturing plants on the environment is one issue that largely highlighted in many countries (Coca Cola 2014). Environmental protection laws are likely to affect the company’s production processes. Similarly, changes in governments, military takeovers, civil unrest together with other political disturbances in countries where that company operates automatically have the company’s operations in those countries (Drummond, Ensor & Ashford 2010). Accordingly, the company’s expansion efforts into new countries largely depend on the political conditions in that particular region. For example, the company for many years has abstained from Israel in order to protect the Arab market (Baker & Hart 2008). Economic Environment The company’s business is a continuous cycle offering different products. The following are economic variables that have the capacity of affecting Coca Cola Company operations (Azevedo & Chaddad 2006). Any economic downturn in a country within which the company operates will automatically have negative impact on the sales (Signh, Jindal & Samim 2011). Given the fact that Coke products are considered non-essential, an economic downturn will hugely affect the company (Drummond, Ensor & Ashford 2010). Inflation and labor prices are also other factors that would affect company operations. Contrastingly, countries with high income per capita, her citizens would have more cash to spend on beverage products which on the hand boost the company sales (Baker & Hart 2008). Social/Cultural Environment Coca Cola company over the years has had the ability to grow with the world adapting to changes and new trends that come to the market (Signh, Jindal & Samim 2011). However, it is important to note that the following social variables can impact the company in various different ways. Soft drink beverages are now being considered as unhealthy across the world and the global population is becoming health conscious (Azevedo & Chaddad 2006). This presents both threat and opportunity to the company. The sales of traditional brands are likely to decreased based on this view; however, the company can introduce new product lines that are considered health to boost its sales ((Ghemawat et al., 2001)). The company has also experienced opposition from social groups in some countries the main reason being environmental issue that comes with company production activities (Coca Cola 2014). The country’s social and cultural activities have massive effect on her citizens food habits something that would affect the portfolio that the company can introduce in that particular country (Drummond, Ensor & Ashford 2010). Technological Factors Coke Company use technology across its value chain including concentrate and syrup manufacturing, procurement, bottling, distribution and warehousing (Drummond, Ensor & Ashford 2010). The following technological variables are likely to impact Coca Cola Company operations. The company derives its strength from marketing and thus the introduction of new marketing and advertisement technologies will have immense impact of the company (Porter 2003). The company over its year operation has been apt in embracing new mediums including television, radio, and the internet (Coca Cola 2014). For the company to remain competitive it must embrace the internet by connecting with customers using different channels. New packaging technologies are vital in driving the company sales; for instance, rather than using the original glass bottle, the company products can also be packaged and made available in cans and plastic bottles for ease of transportation and storage (Drummond, Ensor & Ashford 2010). Beverages have to be cooled before consuming and thus consumption of the company’s products is limited to the locations that provide cold storage facilities (Signh, Jindal & Samim 2011). Competitor Analysis The Porter’s Five Forces Analysis model will be used in analyzing competitors (Drummond, Ensor & Ashford 2010). This analysis provides a clear analysis of the competitive environment within which the company operates (Ghemawat 2007). Competition Coca Cola main competitor is Pepsi Co; their rivalry is stiff due to the fact that they have operations in almost all soft drink markets globally (Statista 2014). Across the world, Coca Cola has higher sales as compared to Pepsi Co; however, Pepsi Co has dominant presence in the US market. Although there are other player in the market, none is as large as Coca Cola or Pepsi Co. The main point of rivalry is mainly experienced in introduction of new product lines of carbonated and non carbonated drinks and in increasing product portfolio (Ghemawat et al., 2001). Other competitors include Suntory Holdings Ltd, Nestle SA, Dr Pepper Snapple Group Inc, Danone Groupe, Red Bull GmbH, Kirin Holdings Ltd, and Asahi Group Holdings Ltd (Coca Cola 2014). Coca Cola has the following competitive advantages: Product innovation: the company is constantly innovative into new products; due to massive R&D activities that the company conducts Coca Cola recognizes consumer needs and wants and thus develop new products to meet these needs Size: the company has large distributors with ability to negotiate with big organizations to make exclusive supplies for a specified period of time. They have ability to commit to mass purchases that lower operational costs significantly Quality: the company produces high quality products which satisfy customer needs and are free from deficiencies. The Coca Cola Quality System is a global initiative that involves all business aspects. Brand Image: the established brand loyalty among a wide range of customers Global presence: Coke products are known globally which have largely contributed to the company’s overall success Distribution: the company has a superior distribution channel which enables the company to move products more efficiently to the customer. Health Choices: the company has differentiated its products branding them healthy choices to increase its competitiveness in the market Threat of new entrants There is very low threat of new entrants to this industry. This is attributed to factors such as: i. It will take decades for a new company to build their brands ii. Existing players have wide distribution channels globally and new entrants can not easily achieve this position (Baker & Hart 2008) iii. The initial investment required is high iv. Economies of scale (Statista 2014) Threat of Substitutes The soft drink industry is vulnerable to substitutes and thus there is high threat of substitutes (Palepu & Healy 2007). Some of the substitutes include juices, water, coffee and tea are readily available and at a cheaper cost. Other substitutes may include alcoholic drinks like beer (Baker & Hart 2008). Supplier Bargaining Power The power of suppliers to Coca Cola company is very low due to the following Some raw materials including water and sugar are standard and thus replacement of suppliers is easy (Azevedo & Chaddad 2006) Bottling equipments manufacturers can also be easily replaced The company has higher bargaining power on all its inputs due to the fact that it enjoys economies of scale and places huge orders from suppliers (West, Ford & Ibrahim 2010). Buyer Bargaining Power There are two categories of buyers; the main Coca Cola buyers are the bottling units, other bottling units are owned by the company and hence the retail outlets are the second buyer category (Coca Cola 2014). Bottling partners have low bargaining power (Azevedo & Chaddad 2006) The retailers have moderate buyer bargaining power (Baker & Hart 2008). Globalization and Internationalization Company Internationalization Process (Canada and China) Canada China Culture Focus is on individuals Individual achievement is valued and is common There high levels of entrepreneurship Class system is embraced Christianity is the widely worshiped religion Culture Focus on groups rather than individuals Job switching is discouraged Lifetime employment is encouraged Caste system is embraced Confucianism is practiced Mode of Entry Franchising strategy Franchising is a special licensing form whereby the franchiser sells intangible property to the franchisee; however the franchisee must abide by the strict rules of how to operate the business (Signh, Jindal & Samim 2011). The franchiser often demand that the franchisee run the business on a continuous basis (Coca Cola 2014). The franchiser receives royalty payments which is an agreed percentage of the franchisee’s revenues (Drummond, Ensor & Ashford 2010). Coca Cola has successfully used this strategy to grow and expand globally. The company grants bottlers the license to sell its products; the concentrate and syrup (Baker & Hart 2008). Mode of Entry Joint venture Coca Cola forms partnership with local bottlers The company gains local market knowledge, culture, political system, language and business system Joint venture help the company to comply with chines corporate laws which are tight on soft drinks. The company will be able to satisfy the political consideration of the market. Local bottler will be empowered through joint venture to help further expansion of the business in the country. The cost and risks of expanding the business will be shared Challenges Some of the challenges that the company faces using franchising as its internationalization strategy include: Lack of control over quality (Azevedo & Chaddad 2006) Taking profits out of one country to another Franchisees are restricted on what to and what no to do (Drummond, Ensor & Ashford 2010) Possibility of conflicts between the franchisee for not following the agreement Strategies used to Address Challenges Coca Cola company use different strategies to address the above challenges as well as maintain its competitiveness in the marketplace (Hill & Jones 2011). These strategies include: i. Marketing and branding strategy: the company has developed a strong brand that continuously assure quality and generate loyalty. This strategy has made sure that the company franchisee’s make profits; for instance everyone involved in the value chain earns benefits (Coca Cola 2014). Accordingly, the company adopts innovative marketing activities that empower franchisees to equally benefit from the company operations. ii. Coca Cola’s global strategy: the company use local marketing functions in order to ensure that it achieves maximum distribution and marketing effectiveness (Azevedo & Chaddad 2006). This ensures that Coca Cola brand maintains a strong global position together with introducing indigenous elements in the marketing mix (Hagel & Brown 2001). This has the effect of harmonizing the product image with the local culture thus helping franchisees to achieve their business objectives while also allowing the company to accomplish its corporate objectives Corporate social responsibility Coca Cola Company has an excellent Corporate Social Responsibility strategy that compels the company to act responsibly in its operations (Lussier 2011). For instance, the global sustainability report 2013/2014 significantly explains how the company will work to ensure environmental sustainability; the report focuses on women, water and well being (Coca Cola 2014). Accordingly, the company recognizes that investing women and girls will ultimately drive the global economic growth and sustainable development (Drummond, Ensor & Ashford 2010). These social responsibility activities are aimed at positioning Coca Cola as an environmentally sound which on the other hand strategically positions the company in the industry. In the same line of thinking, the company continually challenges other multinationals to shape a better global future (Girma & Gong 2008; Signh, Jindal & Samim 2011). Other CSR activities of the company include sponsorship of sporting events, recycling used Coca Cola Bottles to help the Northern New England Businesses to thrive (Baker & Hart 2008). Conclusion The Coca Cola Company is world’s largest beverage company with its operations in over 200 countries across the globe. The above international business report has used Coca Cola Company to explain various aspects of internationalization. For instance, the report provides a preview of the company in terms of its major products. The company background is also vastly discussed highlighting major contributors to the company invention and its ultimate growth. The company internal analysis is also given discussing both primary and support activities. The external environment of Coca Cola is also analyzed using the PEST analysis model. The company competitors have also been analyzed using Porter Five Forces. And finally, the paper discusses Coca Cola Globalization and Internationalization. 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