The paper "Analysis of a Multinational Enterprise: the Coca-Cola Company" is a great example of a business case study. Multinational enterprises (MNEs) are companies that operate in many countries. Such companies have to deal with the challenges and opportunities that abound in the different environments in which they carry out their activities. MNEs also have to use their knowledge regarding international business to capitalise on the opportunities that arise so that they can reach many markets. To achieve this, they have to develop strategies that enable them to satisfy the needs of customers in different regions.
They also have to deal with the challenges that are associated with doing business on a global scale. More importantly, they have to deal with any issues that might arise in relation to their operations. For instance, they have to deal with ethics issues regarding their operations, employment and labour relations, and environmental impacts. Against this background, this essay will discuss the Coca-Cola Company (Coca-Cola) as one of the leading MNEs. The essay will touch on the company’ s history and its international business strategy and the achievements that it has made.
As well, a review of the challenges that Coca-Cola faces will be made, followed by a discussion of recommendations on how the company can deal with these challenges. History of the Coca-Cola Company The Coca-Cola Company is one of the MNEs that have long histories, having been started in 1886 (Gong 2013, p. 47). Headquartered in Atlanta, the company is the world’ s biggest beverage firm conducting business in over 200 nations with a collection of not less than 3,500 products (National Round Table on the Environment and the Economy (NRTEE) 2012, p.
55; Ferrell, Fraedrich & Ferrell 2013, p. 454). The portfolio of Coca-Cola’ s products includes carbonated drinks, juices, bottled waters, coffees, teas, energy drinks and soft drinks (Ferrell, Fraedrich & Ferrell 2013, p. 454). The first Coca-Cola drink was founded by John Pemberton, who then sold it to the Atlanta-based Jacob’ s Pharmacy as a patent medicine. During the period between 1886 and 1892, Asa G Candler obtained the right to the Coca-Cola business and became its first president (Gong 2013, p. 47). During the initial years, the focus of the Coca-Cola Company was on expanding the share of the market in the United States.
However, after the Second World War, the company started to appreciate the opportunity in selling its products to other countries across the world (Ferrell, Fraedrich & Ferrell 2013, p. 454). Details of the expansion across other countries and some key events in the company’ s history are outlined in the table below. Period Presence Key events 1886 to 1892 Atlanta John Pemberton formulated Coca-Cola. The product is then sold to Jacob’ s Pharmacy as a patent medicine. Later, Asa G.
Candler buys the business and becomes its first president. 1893 to 1904 The United States Joseph Biedenham becomes the first to package Coca-Cola in bottles. Later, three businesspeople in Tennessee obtain exclusive rights to package Coca-Cola and establish the Coca-Cola bottling system. 1905-1918 8 nations The unique contour bottle of Coca-Cola is approved. The company then enters Canada, Cuba, Panama, France, Puerto Rico and other countries. 1919 to 1940 53 nations Asa Candler sells the company to the Woodruff family. Robert Woodruff becomes president of the company and leads expansion. The company supports the Amsterdam Olympics in 1928. 1941 to 1959 120 nations During the Second World war, the company grows rapidly and is introduced to many countries for the first time. 1960 to 1981 163 nations Coco-Cola company expands with product varieties such as Sprite.
The company enters China in 1978. 1982 to 1989 165 nations The firm launches New Coke and Diet Coke into the international market. 1990 to 1999 Approximately 200 nations The firm expands through the acquisition of brands such as Cadbury Schweppes and India’ s Limca. 2000 to present Over 200 countries Coca-Cola is one of the brands that have the widest presence globally and epitomises the globalisation of MNEs. Source: Adapted from Gong (2013, p.
47) Coca-Cola Company’ s international business strategy and achievements As noted above, Coca-Cola has a global presence; in addition, it operates one of the most successful productions and distribution strategies globally. According to Shenkar, Luo and Chi (2015, p. 2), by having a wide array of products and sales in more than 200 nations, Coca-Cola is matched by only a few companies in terms of the visibility of its products. In addition, its flagship product Coca-Cola (Coke) and the unique contour bottle in which it is packaged have become an embodiment of a global brand.
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