logo

International Operation of Coca-Cola Company : Assignment

   

Added on  2020-01-23

11 Pages2550 Words77 Views
1AN OPERATIONAL PROBLEM FACED BY INTERNATIONAL FIRM An operational problem faced by international firm A29722NameCourseCollegeDate

AN OPERATIONAL PROBLEM FACED BY INTERNATIONAL FIRM2Executive Summary This report focuses on the international operation of the Coca-Cola Company. The first part ofthe report deals with the operational issues faced by the Coca-Cola Company in India. Theseissues involve the competition, price wars and issues such as negative publicity. The other part ofthe report involves the recommendations on strategies which the company should formulate tosucceed in the Indian consumer market. The company has the objective of gaining trust from thepopulation and the government. They also need to produce high products and at low prices. Table of ContentsExecutive Summary.....................................................................................................................................2Introduction.................................................................................................................................................2Terms of Reference.....................................................................................................................................3The Situation...............................................................................................................................................3Analysis of the Situation..............................................................................................................................4SWOT Analysis of Coca-Cola Company....................................................................................................5Strategies and solutions which can be implemented....................................................................................7Conclusion...................................................................................................................................................9Bibliography..............................................................................................................................................10

AN OPERATIONAL PROBLEM FACED BY INTERNATIONAL FIRM3Introduction The Coca-Cola Company is considered one of the most valued brands globally dealing with non-alcoholic beverages. It was established in the United States back in 1886 and has its operation inmore than 200 countries currently. It has managed to form partnerships with various bottling andcanning companies globally. The company has faced various changes in its businessenvironment in the recent years. The consumers of the beverages have become more healthconscious, and this has led to the development of new products to address the consumer needs.These new products involve diet coke and coca cola zero. The company has managed to getbottling businesses in various nations such as South Korea which has eased its entry into theretail market. This has allowed the company to enter markets in countries like Japan, Malaysia,and China. The Coca-Cola Company in the 1970s was the first beverage brand to establish itsmarket in India. The company was the leading beverage brand in India in 1977 but left thecountry due to Foreign Exchange Regulation Act and had to return in 1993. The company hasfaced various problems in its operations such as quality, exploitation of resources and market andothers such as price-quality trade-offs (SWAMINATHAN 2001). For example, the company has beenchallenged by the India population for its abuse of the water resource. The company has beenaccused of negatively affecting the quality and quantity of the groundwater because of the wasteproducts. It has also been accused of polluting the fresh and ground water and the soil in thenearby area. It has been a problem for farmers due to the deterioration of the quality of soil andwater scarcity. Despite all the challenges the strong company brand still persuades the customersto use its products. It can be seen that the Indian population is adopting the consumption of softdrinks, especially the young population. It can be seen that with research and changes in itspolicies, the company with being able to improve and establish its brand in Indian marketthereby enhancing its reputation and the market share ( Lothar 2008).

AN OPERATIONAL PROBLEM FACED BY INTERNATIONAL FIRM4Terms of ReferenceAs a business consultant, we have focused on the Coca-Cola Company in Indian Markets. Wehave conducted surveys, and the company and the products offered. The Objective was to helpthe company establish its brand reputation. The company would have a place to favorablycompete with the competitors, have a better market and product segmentation together withbetter sales techniques. The SituationCoca-Cola Company has faced stiff competition from other refreshment companies in Indianproducing soft drinks. Due to the globalization strategy by the Indian government, it has beeneasier for international companies to establish in the Indian market. The concept of globalizationhas helped reduce trade barriers and minimized the risks to businesses. Despite globalization,many international companies have issues establishing their market in India especially due tolack of proper knowledge on market forces and the culture of the population. The Coca-ColaCompany has had issues about their reputation, brand, and the corporate social responsibility. The current country situation has been made favorable for international companies to carry outtheir operations. The Coca-Cola Company is the leading seller of soft drinks in the world, andthey have direct opportunities to gain market in India. Despite the social issues hindering itsoperations, there is a good market, especially from the young Indian population. The companyshould give a lot of thoughts in its culture policies since it is a determining factor in theconsumer behavior and purchasing patterns. A country like India is so skeptical on the issue ofthe culture. According to Geert Hofsted cultural dimension and applying it to the Indianpopulation, it is easier to conclude that there is less uncertainty avoidance in India andindividuals are not accommodative of sudden changes. The uncertainty avoidance index in India

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Unethical Business Practices
|7
|1099
|366

Ethics and Sustainability in Coca Cola Company: Effects on Local Communities and Consumers in Australia
|5
|1907
|262

PepsiCo vs Coca Cola in the Indian Market
|3
|715
|244

Business Ethics Assignment - Coca Cola
|33
|10109
|96

Managing and Leading People: Coca Cola Company
|2
|1195
|2

Challenges Faced by Coca-Cola in Africa
|8
|2545
|94