International Business: Benefits and Drawbacks for Coca-Cola

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RESEARCH PROJECT

TABLE OF CONTENTS
Chapter 1: Introduction................................................................................................................................1
1.1 Aims...................................................................................................................................................1
1.2 Objectives..........................................................................................................................................1
1.3 Rationale............................................................................................................................................1
1.4 Significance of the research...............................................................................................................2
1.5 Research Questions............................................................................................................................3
Chapter 2: Literature Review.......................................................................................................................4
2.1 Introduction........................................................................................................................................4
2.2 Body...................................................................................................................................................4
2.3 Conclusion.........................................................................................................................................6
Chapter 5: Conclusion, Recommendation and reflection............................................................................7
5.1 Conclusion.........................................................................................................................................7
5.2 Recommendation...............................................................................................................................7
5.3 Reflection...........................................................................................................................................8
References..................................................................................................................................................10

Chapter 1: Introduction
1.1 Aims
The research aim is to have understanding on the benefits and drawbacks of the global business
environment in context with Coca-Cola.
1.2 Objectives
The research objectives are generally more than one and it is created to have in detail examination for
the researcher. The objectives are as follows:-
 To analyze the meaning of global business environment
 To understand the benefits of going global for Coca-Cola
 To examine the reasons for organizations going global
 To determine the limitations that the organizations like Coca-Cola faces in going global
 To understand that businesses at international level drive success or not
1.3 Rationale
The research rationale gives the topic importance that the researcher has taken for having understanding
on it. Before understanding on the global business environment it is important to understand the
globalization and globalism. Global competition characterized through networks of international
linkages that combine countries, people and institutions in the interdependent global economy. In
contrast, globalization means to enhance or reduce the globalism degree. It targets on the forces, speed
and the dynamism of the changes. While globalism is at the core generate to explain nothing more than
word which is shown through the networks of connections that extent various continental distances. It
has attempted to analyze all the connections of the modernize world and to reflect the patterns that
underlie it (Hamilton and Webster, 2018). It is important to understand the major difference between
globalization & globalism. Globalism means underlying the general network while globalization means
shrinkage of distance on big scale dynamics.
Now to have understanding on global business environment in which the three mentioned words shows
the reality of the international trade nature. It is evolving in the fundamental manner as the outcome of
several forces sharpening the characteristic and global commerce dynamics. The importance of global
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business environment is because as it includes both internal and external environment for the businesses
participating in it. The international trade benefits all the participating parties. With high level of global
trade have stronger economies, fast growth and effective living standard as well (Lasserre, 2017). The
organization that are involved majorly in exporting activities gets the good benefits as they are getting
good returns from the domestic market. The research has shown that the firm also giving importance for
the international expansion as they are able to use their installed capacity, relatively gets more profits,
includes less business risks, increases productivity, improvements in technology and product
obsolescence in domestic market.
The export business importance can also be seen from different angles like international collaboration,
helps in managing good political relations and international business brings various countries closer. To
conclude it is now definite that export contribution in business to the national exchequer, national
economy, manages international, political relations and economic culture in several countries (Andrews
et.al. 2018). Countries are also coming closer on terms of international business.
1.4 Significance of the research
The research of the topic also gives importance to the stakeholders, organizations, academics and
researcher. The stakeholder in the person who has interest might be impacted as the outcome of what the
organization does. The stakeholder analysis is the approach use to determine and examine the
significance of groups of individual, key individual or institutions that might importantly impact the
success of project, business or activity. Individual and organizations might have the interest in the
international business if it impacts in some manner i.e. positive or negative. They have significant
something at the stake as the outcome of few aspects of international business. The content of the
shareholders is expanding still. The stakeholder’s theory will have significant role in future global
business. International business includes more stakeholders in contrast with the domestic business.
Many organizations did not know that stakeholders involve competitors also and the next thing is that
organizations have to change the business objectives under the stakeholder theory (Noe et.al. 2017).
Therefore, especially in case of international businesses the stakeholder theory has to be taken in
considerations importantly to show their positive involvement in business operations.
The research significance is on the organizations also that are thinking to go global or already have
presence in global business environment. The organizations going global although has many advantages
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but along with that it also have challenges and limitations through several factors present in external
environment. The factors such as political, economical, social, technological, legal and environmental
majorly influence the international trade business working across boundaries. Globalization brings
business opportunities that also increase growth, profits, resources and other expansion also. The
challenges to the business are legal restrictions, technology barriers, and large investment in business
that high business risk also (Camillus, 2016).
In context with researcher, the research has great significance as it supports in offering good information
about the topic that can help in the future to get the sustainable growth in the business if the researcher
conducts some business on international trade. The researcher can also carry out the similar study in
future and will get deep knowledge about the global business environment. In context with academics,
the research offers more information on the topic taken that can effectively result into researching more
on the topic related to global business environment. Academic studies on the topic give the ideas to the
researcher for the future as well.
1.5 Research Questions
The questions of the research are the initial step in the project of the research. It means taking the idea
on what topic to be included in the research to be conducted. The research question is prepared to give
the in-detail examination of research. The research questions are mentioned below:-
 What do you understand by the term global business environment?
 What are the major benefits of global business environment to the organizations like Coca-Cola?
 What are the main challenges of global business environment that are faced by the organizations
like Coca-Cola?
 What are the main success drivers for the businesses that are traded internationally?
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Chapter 2: Literature Review
2.1 Introduction
A literature review is the paper which is scholarly that involves present knowledge encompassing
substantive findings along with contribution of theoretical and methodological for the specific topic.
These are basically the secondary sources and do not document new or actual work of experiment. It
also reflects the trends, historical information and gaps in research and it is just not limited to gathering
of summaries of printed materials that are in relation to study topic. It needs data organizing, analyzing
and synthesizing. The topic on benefits and limitation of global business environment on business will
be covered basically in the body.
2.2 Body
Benefits of global business environment in business
According to Colander, (2017), international business includes several benefits to the organizations. The
foremost benefit is new revenue potential as the organizations get the large customers base access. If the
organization services and products are quite successful in the domestic market but it had come to the
saturated level, the organizations can enjoy the benefits of increased revenue in the international level.
Globalizing for the organization is exactly the shot of life for getting high revenue to the organizations.
The next benefit is the ability to help more individual. The organization has the potential to serve good
to the customers to improve their life. When the organization considers the business objectives, it can
help high number of people in finding the answer for the questions or limitations the organization helps
in solving.
Tan and Macneill, (2015) stated, it gives greater access to the talent to the organization. The firms will
get more competent candidates with having unique capabilities and mindset. Further, organization hires
the talented staff which they do not find in their home country that gives competitive benefits from other
organizations that are not global yet. New culture learning is also a benefit to the business. Generating
information for the new place can support the organizations to remain all rounder. Getting understanding
on the people perspectives who does not belong to their country creates new relation with customers and
supports the organizations to work more conveniently with domestic customers and partners in business
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as well. On this concern, organization has to hire cultural consultant that supports in developing the
content of marketing that considers the culture and linguistics as well.
According to Picciotto and Mayne, (2016), exposure to foreign investment opportunities is very much
valuable to the organizations as businesses can develop their brand value. Further investment
opportunities knowledge is also gathered and how it can be supportive to the organization as well. The
organization reputation is also enhanced as the business goes successfully global. In this organization
offers their products to the completely new population and they can easily enjoy the prestige of naming
them as international organization. Through this organization can mean the prospects and get capable
partners in business to show their international presence. The last benefit comes is diversifying the
organization markets. It is effective when the organizations only have one or two areas and the
mentioned areas if get destroyed due to any natural calamity. In that case, if organizations are diversified
globally so that the business gets the stable income even if domestic business is slow.
Limitations of global business environment in business
Peng, (2016) stated, although global businesses has mainly advantages but with that it also faces the
major challenges or limitations that are to be overcome by the business to rule in international market.
The foremost limitation is of foreign rules and regulations. The reason is that international business is
not of short period as each country has its own employment laws and taxes along with trademark and
business registration and further the legal forms are to be filled in foreign language and manner only
although intermediaries are to be hired for the same. The next limitation comes is of handling logistics
as it becomes very complicated when the business adopts global expansion. The query related is to
efficiently handle the communication and manage shipping of goods among sites (Mamic, 2017). The
next consideration is that not each country has good infrastructure and resources and it might not be best
to take predictions for the things to be operated in newer country.
According to Neelankavil, (2015), monitoring currency fluctuations can also have big impact on the
business success. If home country currency is weaker it will allow the organization to provide
competitive prices in other places that means it is basically the stronger currency that is poor for
overseas business. It might force the organization to drop the price so that some sales can be made. The
next limitation is mitigating the risk of credit as in other country it is not generally possible to recoup the
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outstanding debts from the customers. It is called as credit risk and the solution might be determining the
credit rating of newer prospects.
The last limitations are conducting market research. Based on the organization business there might be
chances to rebrand organization and rethink goods for best outcomes. This can essentially include
expensive research to introduce what the locals in newer country react to effective and to have
understanding on entirely different culture needs (Davies, 2016). But there are several ways of
researching a foreign market on budget and innovative thinking can support to place the down cost.
Finally, there are advantages and limitations of business expansion and international growth is not an
exception. With proper planning and plotting, the businesses can move to the next level and take benefit
of entire world opportunities.
2.3 Conclusion
As literature review gives the theoretical framework, it had given main idea about the topic undertaken
in the study. The research had concluded that there are various benefits such as enhancement in profits,
growth, expansion, productivity, efficiency, new talented employee, new relationship with customers.
The discussion on the limitations had been reflected that government laws of host country, logistics
issues, language barriers, currency fluctuations, credit risk and conducting market research. Maximum
of the advantages and limitations had been covered but there are many more limitations like foreign
politics, time zone coordination as well.
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Chapter 3: Methodology
3.1 Research Methods and techniques.
Researcher of the project can e use secondary method of research for collecting qualitative data.
For gathering information regarding the selected topic, Literature review can be helpful in
achieving data by referring books and journals of different researcher, scholars and writers on
similar topics, these resources are available in internet, academic books and library (Bryman,
2017.). The information collected from books is basically in appearance of theories, framework
and facts, that can be used by the researcher of the project for synthesising with other data for
making effective decision for research finding and conclusion. Similarly, the researcher is also
supported by quantitative methods of data collection for achieving numerical and statistical data.
In most cases questionnaires and interview considering a sample of respondents are used for data
gathering.
In case of Secondary data collection, the data are being collected through journals and books
regarding benefits and drawbacks of a global business environment for effective analysis to
attain the findings. The information from secondary research will be supportive for the
researcher for collecting more accurate and accurate and reliable. For primary data, the
researcher designs a questionnaire having set of systematic and relevancy question for getting
vast amount of data. .
Data collection techniques: These are of two types: secondary and primary. Both the techniques
can be used by researcher of a project for collecting reliable and accurate data. Some of the
common tool used for primary data collection for collecting new and fresh data is by conducting
interview and developing questionnaire. In the current project, questionnaire can be used for
collecting data by survey on online and offline platform. On the one hand, in case of secondary
data collection, information and data for the research project is gathered by referring different
sources like articles, books and journals.
In the current project, the researcher has opted to select both the data collection techniques. As
through primary data collection, information collected are fresh and new regarding various
advantage and disadvantage of business in global market considering Coca-cola. And the
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researcher also has chosen to refer various books and journals written by different writers and
researcher on same or similar topic to get more information regarding The benefits and
drawbacks of a global business environment..
3.2 Research Instruments
In a research design, research instrument is considered as an important element as they are
effective in collecting various data and information for carrying out the research project
effectively. Without proper research data the collected cannot be put in hand. For the current
project, the researcher has chosen to use Gantt chart for reflecting various research activities
along with the time interval required for performing each activities. Gantt chart is a horizontal
bar chart that provides graphical illustration regarding schedule that support planning, tracking
and coordination between various project tasks.
Currently for the undertaken research project of understanding the benefits and drawbacks of a
global business environment considering Coca-cola, the researcher is liable for developing
suitable plan including various procedures and activities that will be effective in conducting the
overall research in appropriate way. The Gantt chart prepared will be effective in distributing and
allocating various research activities in diverse time intervals for completion of project in its
estimated time limit.
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Using Gantt charts to plan your project
One column represents two week.
Project activity
Oct
Oct
Nov
Nov
Dec
Dec
Jan
Jan
Feb
Feb
March
March
April
April
April
May
May
May
May
June
Planning my literature review
Conducting my literature search
Designing my study
Discussing proposed design with my supervisor
Writing my ethics application (if applicable)
Submitting my ethics application (if applicable)
Waiting for ethical approval (if applicable)
Making amendments to my study / paperwork
Approving Questionnaire with my supervisor
Submitting my Proposal
Photocopying my questionnaires
Getting training on MSExcel and Word
Pilot testing
Revising materials following a pilot
Organising my paperwork for participants into ‘packs’
Recruiting participants
Collecting my data
Transcribing my data
Inputting my data into MS Excel
Conducting my data analysis
Writing up specific sections of my report
Writing up my reflective log and personal development
plan and review
Giving a draft to someone to read
Typing up and labelling appendices
Redrafting my report
Submitting my final project
Other task(s) to be specified
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3.3 Sampling
Sampling technique can be considered as one of the significant element of a research project for
conducting survey, interview or to distribute questionnaire for data collection. The research of
the project is liable foremost to chose and decides the size of sample from the huge population
before conducting survey. The determination of Sample size is referred to act of fixing the
sample size of respondent from that of n number of observations. Sample size can be stated as
empirical characteristics which are effective in understanding and colleting opinion regarding the
chosen topic to understand the benefits and drawbacks of the global business environment in
context with Coca-Cola. Sampling techniques are of different types like random sampling,
cluster sampling etc. any of the type can be used by the researcher for collecting effective
amount of data and information to completion of the project aim and objectives.
For the current project, the researcher can utilised random sample technique with a motive to
collect more precise and reliable data for the current topic. The researcher randomly selects the
30 respondents those are stakeholders of Coca-cola and effectively distributes the designed
questionnaires. However, the researcher of the project is responsible to follow proper guidelines
and ethical principles for conducting research for data collection. The researcher while research
also aims that no personal questions are asked to the respondents that can hurt their values or
sentiments. And none of the respondents is forced to take part in the process or to answer
questions.
3.4 Ethical Issues
Ethics are referred as standards or norms for conduct which differentiate between wrong and
right. During the research project, the research faces various limitation and issues. The main
reason of the issues is because of the linked data confidentiality. Moreover, the researcher for the
undertaken study must keep all the data in lawful, ethical and secretive manner. The findings of
the project must be opened publically. Additionally, one more restrictions that can be seen in the
research project is limitation of time and resources while performing data collection using
questionnaire. And the information gathered from the respondents can also be biased involving
bigger cost to the researcher. Reliability and usefulness of the project may not be assured due to
financing constraints
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