Challenges Faced by Coca-Cola in Africa

This document discusses the challenges faced by Coca-Cola in expanding its business in Africa, including low disposable income, poor infrastructure, and environmental concerns. It explores how the company overcame these challenges and captured a large market share. The document also highlights the importance of marketing campaigns and strategies in building customer trust.

INTERNATIONAL
BUSINESS ACROSS
BORDERS

TABLE OF CONTENT
WEEK 2...........................................................................................................................................2
Question 2.2.................................................................................................................................2
WEEK 3...........................................................................................................................................3
Question 3.3.................................................................................................................................3
WEEK 4...........................................................................................................................................3
Question 4.3.................................................................................................................................3
WEEK 5..........................................................................................................................................4
Question 5.3.................................................................................................................................4
WEEK 6...........................................................................................................................................5
Question 6.2.................................................................................................................................5
REFERENCES................................................................................................................................7

WEEK 2
Question 2.2
There are various challenges i.e. low disposable income of the people in the Africa
country that causes it serves it’s product only in 39 countries. Africa is considered as poorest
country in the world because numerous countries of the Africa has low GDP rate in the world
that cause Coca-Cola unable to expand it’s business in various African countries. Apart from this
there has poor infrastructure, war and poverty which inhibits supplying and marketing of the
Coca-Cola product that is major challenge for the organization. Due to lack of distribution
unable to access various regions of Africa by company (D’angelo and Kofman, 2017). In
addition, Coca-Cola have to defence itself from criticism such as there are various Africans who
accuse that it will lead depletion fresh water and promotes expensive. In addition, Africans
considers that it impacts environment sue to harmful refrigeration as result climate will change.
in Addition, few Africans claims that it can hurt local competitors of Africa who hawk beverage.
These are the major challenges which are faced by company. To build trust of the customer
conducts marketing campaign in small streets by the company but it have to face economic
issues. Diet challenge also face by company because people thinks soft drinks are the main
source4 of epidemic and obesity that causes it directly impacts people health negatively. Another
challenge is Pepsi because it has good market share in the Africa country and has good brand
image as well. Just because of this, company have to give more efforts in their strategy and
product to win competition and trust of the people on the product as compared Pepsi. Bottle
challenge is also faced by organization because it exports it’s beverage products in the bottle
which creates pollution and release alkalis in the beverage product as result gets negative impact
on the people health. Due to the waste pollution government imposes some rules for the beverage
industries. So, organization have to change container of the product to comply with policies.
Sugar Tax is also another challenge in the South Africa which is faced by organization. Due to
high taxes impacts on the sale because additional taxes raise price of the beverage product. it
causes buying behaviour of the customer decreses as result faces loss volume sales by Coca-Cola
company in South Africa. These are the major challenges that creates hardship for the company
to conduct its business in the Africa country but later on, it overcomes all the issues and
challenges through its strategies and captures large market share on it’s products (De Wee,
2019).
1

WEEK 3
Question 3.3
According to the case, it is very essential to release the container from the customs as
salmon will be rotten and the market price of the product will be zero (Yan and et al., 2019).
Company can incur huge loss and also negatively impact the goodwill of the company. company
is not able to fulfil its promise to its customers in Haiti. Company has to pay 200 Euros to
customs to release the container and sell the salmon fish to other market and recover the expense
rapidly. Being a non-perishable product company it has to bear the high expenditure in order to
reduce the future loss and also maintain its goodwill in the market and earn more profit margins
to grow and attain core competency effectively. In accumulated interest on the one month hold
of container this also reduces the efficiency of the business as the cash flow of the business will
be affected. This will impact the financial position to grow. Regulations and law of Norway is
very strict and it there is no chance for the company to bribe their officials to release the
container which is ethical dilemma for both employees and customers of the company (Strange
and Zucchella, 2017). By paying more is better option for the company at the initial as it can
help the company to generate more income in one month by exporting containers in the market
company also can use instalment methods to pay the changes in the customs to release the
container immediately by this the burden of expenditure will be reduced and also will not impact
the financial performance of the export company. There is a increase in the demand of fish
salmon in both Azerbaijan and Haiti as it helps to protect the hearth diseases and many other
diseases. This fish is also used to increase the immune system of the population and protect them
from epidemic diseases effectively. Norwegian company has opportunity to increase its brand
value in market and increase their sales to generate more profit margins effectively. This also
helps the business to analyse all the factors which is reducing the efficiency and formulate
effective social network and strategies to reduce all the threats and risk present in the business
environment effectively (Lundan, 2018).

WEEK 4
Question 4.3
It is a strong allegation by the national press and there should also be strong evidence to
support the entire allegation which charged on the company. As all the allegation and fake
rumours are impacting the brand image of the chemical industry and its sales. It is very essential
for company to analyse all the issues in the Indian market and inspect all the manufacturing units
in order to find the truth (McGaughey, Kumaraswamy and Liesch, 2016). If there is any
environmental disaster in the country the government officials would has already sized the
operations of MNE in the market and also ban the use of its products. Product sampling will need
to done to examine the impact of chemicals on the environment and health of workers in the
factors and residents living near those factories. PR also has to conduct a press conference
addressing all the facts and truth about the allegations with effective communication to the
audience as this helps to improve the goodwill of the company in the market. Due to allegation
shares of the company were reduced which also impacted the working capital to operate business
and production if Indian market effectively. it is very essential for company to develop effective
disaster management strategy to exit the issue as soon as possible. This also helps the public to
gain trust on the preparation of company and also calm down to ensure the demand of the
affected families are fulfilled. PR will appoint research team in the market which will collect all
the factors related the allegations and ensure the true and fair information which also helps
maintain the company’s value effectively. Company is now also liable to provide all the reports
and tests to government officials due to allegations according to health and safety act in the
chemical industries (Andersson, Cuervo-Cazurra and Nielsen, 2020). Company also has to
provide all the information about the product procurement and manufacturing process with all
the ingredients which can helps them to increase the efficiency of research and come to
conclusion effectively. PR of the company also has to develop effective risk management and
crisis management strategies to deal with all the negative rumours in the market and retain
employees and workers to increase the performance after end of the investigation. The
production capacity of the company will be affected and PR officer is required to file a case on
the national press for disrupting the operation of company and PR also have to demand for
compensation for all the loss company has faced while the investigation was going on.

WEEK 5
Question 5.3
Free movement permits workers to migrate from one country to another country for
private gain. European union has imposed rules for the free movement workers such as limited
ground public policy, public security and have rights to accept offering of employment.
Immigration of people one to other country leads development in the country and improves
immigrant’s livelihood. The immigrant’s movement must allows for the certain period of time in
other countries because they help company to improve turnover of workers at the workplace. in
addition, most of the company in the Argentina gets change to recruit large number of workers at
low prices as result easy to achieve economic benefits (Heindlmaier and Blauberger, 2017). It
helps local workers as well because immigrants can do work in a country for the certain period
that causes, they do not have to compromise with low salary structure. While production
companies i.e. oil and gas production companies gets workers on low price for the certain period
as result can generate high revenue in the company. Free movement of the labour creates
opportunities for them and makes labour or workers market highly flexible. In addition, country
gets change to improve GDP scale of the country through the free immigrant’s movement. It
leads fluctuation in the wages as well because company gets workers on low wage so it can
influence demand of the product in the people. Argentina is the main hub of oil and gas
production industries whereas generates high energy. That’s why Argentina is known as a net
energy exporter. There is needed to free movement of the workers just for the certain time or
peak time so that can generate high energy. If country permits immigrants to stay for the long
time then it can possible, impacts on local workers negatively (Rahman and Praseetha, 2016).
The reason behind is that immigrants are ready to work on the low wages because they are new
in the foreign country and wants to improve their living status. As resultant, local workers have
to work on the low wages which leads demotivation and poverty in the country. So, immigrants
must allow for the certain period of time in country so that everyone gets profit from each side.
WEEK 6
Question 6.2
According to the case IMF officer has to choose which areas are not effective for the
country to accept the loan. International monetary fund is the international organisation which
provides funds to different industries and sectors in the county which helps to increase the

sustainable development of nation and also increases opportunities for citizens to have high
standard of living. In order o increase the productivity of any country it is very essential to have
strong export trades and fewer imports. This will increase the balance of trade and also increase
the monetary value of the country to improve the financial position in the global market
effectively. Country in which IMF official is going has ineffective exports which is also
increasing their imports and reducing the revenue generation opportunities of the country to
grow and develop. IMF official has to analyse the all industries efficiency to fulfil the demand of
the nation (Reuber and et al., 2018). As it is very essential for manufacturing units to be effective
in order to produce products in large bulk and which are also demanded in other countries. This
helps to increase the export of the nation and provide better revenue generation. There are many
factors which support in the development of the nation GDP as education helps to increase the
skills and knowledge of population to engage in productive activities and support economic
growth of the nation effectively. There are many factors which also helps nation to develop
effective market for global economies to invest effectively. IMF official has to advice nation not
to cut nay area as it is very important for officials to have proper income as it helps to increase
their motivation to provide effective leadership and improve and develop their region effectively.
Nation has to invest in education of citizens which increases the opportunity to produce more
potential leaders to influence population of country to increase their productivity in return of
high returns and many lucrative schemes. This will also increase the human resource
outsourcing of the nation and innovate effective products and services to increase the export.
Government also has to increase the export subsidies for businesses in the nation which helps to
increase their encouragement and indulge in export of products and services and discouraging
import to increase revenue of nation effectively (Cantwell, 2017).

REFERENCES
Books and Journal
Andersson, U., Cuervo-Cazurra, A. and Nielsen, B.B., 2020. Explaining interaction effects
within and across levels of analysis. In Research Methods in International Business (pp.
331-349). Palgrave Macmillan, Cham.
Cantwell, J., 2017. Innovation and international business. Industry and Innovation. 24(1). pp.41-
60.
D’angelo, A. and Kofman, E., 2017. UK: large-scale European migration and the challenge to
EU free movement. In South-North migration of EU citizens in times of crisis (pp. 175-
192). Springer, Cham.
De Wee, C.J., 2019. Investigating the brand perception of a South African university ensuing a
corporate re-branding strategy (Doctoral dissertation, North-West University).
Heindlmaier, A. and Blauberger, M., 2017. Enter at your own risk: free movement of EU citizens
in practice. West European Politics. 40(6). pp.1198-1217.
Lundan, S.M., 2018. From the editor: Engaging international business scholars with public
policy issues.
McGaughey, S.L., Kumaraswamy, A. and Liesch, P.W., 2016. Institutions, entrepreneurship and
co-evolution in international business.
Rahman, S. and Praseetha, P.K., 2016. Analysis of water purification efficiency of graphene sand
nanocomposite. In International Journal of Engineering Research in Africa (Vol. 24,
pp. 17-25). Trans Tech Publications Ltd.
Reuber, A.R and et al., 2018. International entrepreneurship: The pursuit of entrepreneurial
opportunities across national borders.
Strange, R. and Zucchella, A., 2017. Industry 4.0, global value chains and international
business. Multinational Business Review.
Yan, Z and et al., 2019. Chemical evolution of elliptical galaxies with a variable IMF--A
publicly available code. arXiv preprint arXiv:1907.10614.