Global Business Environment | Coca-Cola

GLOBAL BUSINESS ENVIRONMENT 0
GLOBAL BUSINESS
ENVIRONMENT
System04121
4/4/2020

GLOBAL BUSINESS ENVIRONMENT 1
Contents
Introduction................................................................................................................................2
3 reasons for Coca Cola’s globalization are the following........................................................2
Theme 2: political and economic system..................................................................................2
Political factors affecting the USA............................................................................................2
Africa, and many more emerged...............................................................................................3
Economic factors affecting the USA..........................................................................................3
Theme 3: culture that impact the company in USA...................................................................4
Hierarchy in the organization.............................................................................................4
Differences in negotiating styles........................................................................................4
Importance of culture.................................................................................................................5
Impact of Free trade...................................................................................................................6
Fears of Job Loss................................................................................................................6
Changes under the Trump Administration.........................................................................6
Coke Free trade..........................................................................................................................7
Impact of Protectionism.............................................................................................................8
Ethical issues..............................................................................................................................8
Inflated Earnings Related to Channel Stuffing..................................................................8
Recommendations:...................................................................................................................11
Conclusion................................................................................................................................11

GLOBAL BUSINESS ENVIRONMENT 2

GLOBAL BUSINESS ENVIRONMENT 3
Introduction
Coca Cola is the world's growing soda business that offering customers more than 500
products. It involves Fanta, Coca Cola Nil, PowerAde, and Minute Maid (The Coca-Cola
Group, 2010). Coca-Cola Cola is the world's leading business. The organization primarily
focuses on healthy society environmental conservation and strong economic growth
(Saphiere, 2011).
3 reasons for Coca Cola’s globalization are the following
Improvements in transportation - The rate of freight shipping between countries has declined
with the larger container ships. Scale reductions mean that prices can be that per element in
greater sizes. Improvements in transport often require goods and people to fly faster.
Freedoms of trade - Organizations such as the World Trade Organization (WTO) are
encouraging free trade among countries to help eliminate barriers between countries.
Labour availability and skills - Countries like India have lower labour costs and therefore
higher capacity rates (around a third those of UK). The reduced Labor costs and lower
regulatory limits in LEDCs could be used by Labor-intensifying sectors, including fashion
(Fahy, 2012).
Theme 2: political and economic system
Political factors affecting the USA
The United States is the world's second biggest nation. The President is the country's chief
and is chosen for a period of four years. Typically, US elections are seen as equal and open.