Coca-Cola: Analysis of Business Issues and Strategic Resolutions

This report provides a comprehensive analysis of Coca-Cola's global business operations, focusing on key issues and strategic resolutions. It explores the impact of globalization, product differentiation, and technological advancements on the company's performance. The report examines sustainability concerns, including environmental, economic, and social aspects, and discusses the influence of third-world development on Coca-Cola's strategies. Furthermore, it delves into the ethical codes of Auckland Transport, emphasizing safety, data protection, information accuracy, and diversity. The report highlights how Coca-Cola addresses challenges and leverages opportunities in a competitive global market, while also considering ethical and sustainable practices.

Understanding of Business
Issues
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Table of Contents
INTRODUCTION...........................................................................................................................3
Task 1.....................................................................................................................................3
1.1 Nature and background...................................................................................................3
1.2 Select any three and discuss the impact..........................................................................4
Task 2...............................................................................................................................................9
a.) Code of ethic of Auckland transport.................................................................................9
b.) Rational code of ethics: -.................................................................................................10
REFERENCES..............................................................................................................................13
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INTRODUCTION
A multinational corporation has facilities and other assets in at least one country other
than its home country (Smarandescu and Shimp, 2015). For growth and opportunities many
companies expand their business in different countries which help them in gaining competitive
advantage. The present research is based on Coca cola which is operating its business in all over
the world. This report will lay emphasis on various business issuers and measures of their
effective resolution. Also various impacts on the business firm will be discussed in the report.
Task 1
1.1 Nature and background
At present time Coca cola is known as one of the most well known company in all over
the world. The company has earned maximum growth, capitalising on the rapidly expanding
beverage industry in the world( Coca-Cola. 2018). With its push for global market shares, Coca
cola now started operating in more than 200 countries with more than 85000 suppliers. For the
cited organisation to be successful is not always easy. There are many countries such as Cuba,
North Korea and Iraq. But the use of effective global marketing strategies it accomplish success
regularly.
Coca cola Company founded in 1886 by pharmacist John Stith Pemberton in Atlanta
Georgia. In 1960 company acquired minute maid. Company introduce vary products range diet
coke, caffeine free, zero sugar and cherry (Allen, 2015). Coca cola was the globally third most
valuable brand in 2015. In 1885, Pemberton registered the French wine coca nerve tonic. Coca
cola initially sold for five cents as a patent medicine. In initial stage of coca cola cured many
diseases like morphine addiction, nerve disorder, and headache.
Coca cola is the most best-selling and huge selling cold drinks in history. Coca cola was
Patented in 1887. In 1893 it was being sold in every states and territory in United States. Coca
cola have introduced various product for instance sprite, Fanta, diet coke, minute maid and
powerade. The global nature of coca cola system have the highest standard and processes and
ensuring consistent (The Coca-Cola company. 2018). Production safety and quality assurance is
the main theme of the company.
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1.2 Select any three and discuss the impact
Impact of globalisation
The globalisation plays a very crucial and effective role in the execution of the business
operations of the Coca Cola. The globalisation will help the Coca Cola to have the better
handling of the different business operation that will be taken in carrying out business in an
effective manner (Taylor, 2014). It assist the company to capture the data about the taste
preference of user on worldwide level and develop the innovative products or services to keep
them attached with the brand. It aids the company to gains a productivity and profitability and
meet the expectation level of its stakeholders in an effective way. While entering in emerging
market to enhanced competition from domestic player with global competitors such as Pepsi
company.
1.) Product differentiation:
Product differentiation is one of the key factor that supported Coca cola globalisation.
The organisation can easily meet the needs of customers of individual markets. For
instance, the firm has tailor all its product line through offering powerade and flavoured
coke products to younger customers (Boyjoo, et al., 2017). . Furthermore, Coca cola has
a wide range of juice brands and water which help company in gaining competitive
advantages. But it is essential for the firm to be innovative with new health and wellness
angles with its brands (Dawson, 2017).
2.) Technology
Technology advanced helped company to globalise faster in 20th century. The
transportation of product was become more cost effective with the development of bigger and
faster semi-truck and trains. Therefore, company can easily manufacture and ship the products
quicker and farther to market. With the use of new technology, it become easy for the firm to
advertise its product in all over the world. It has make visible appearance on Facebook, Twitter
and other social networking sites (Sharp, 2016). Along with this it also introduced greener
bottles and packaging for producing their product with the use of less petroleum.
Competition :
There is change in economic factor which is result of globalisation. Due to the
globalisation the future development of the world is shaped. Through increase in competition it
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become easier to capture large number of market. For example, a bottling plat which is built by
the firm. It uses mechanic which are automated robotic as it is introduced by Coca cola.
Sustainability:
Environmental (related to environment or our planet): - As a part of the packaging
the main goal of Coca-Cola company is to remove the loss of raw material, energy and water at
the time of manufacturing process (Albert, et al., 2014). Further as a part of concern for the
environment the firm has taken step to recycles material which is uses to produce bottles of coke
and another beverage. For example, coca cola company focused on water program in order to
support healthy watersheds and sustainable program.
Economic (financial, profit, money related): Coca cola company is operating in
different countries and because of its local nature it is at unique position in order to contribute
the economic vitality. Its global business has provided many job opportunities (Faria, et al.,
2017). Along with this, it contributed to economy success of each community through hiring
local people, paying for raw materials to supplier etc.
Social (related to society or people): Sustainability has not only positively impacted the profit
of the firm but also put effect on its corporation image. Coca cola provided at least 1% of its
annual income for charitable causes every year (Powell and Gard, 2015). The figure provided
below shows the patter of distribution of this fund in 2013.
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Figure 1Coca cola social responsibility
(Sources: Dudovskiy, 2017 )
From the above provided figure is clearly shows that there are different types of CRS
program which are initiated by Coca cola company. educating and empowering workers, labour
and human rights, health and safety issues, water consumption, other health initiatives.
There are many sustainability issues which is faced by Coca cola company such as
environmental friendly products, water saving, sustainable recycling and packaging (Serôdio, et
al., 2018). The cited beverage firm will look further the reducing its carbon footprints and
permission of the green house gases that will help in meeting the operational capacity of the
business organisation.
Third world development: Please explain it with an example and reference
1.) Economies of scale: One of the positive impact of third world development on Coca
cola company. In developing nations India, china etc. population is limited and in
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third world countries Unites states there is high number of populations. Hence it
makes easier to accomplish success in developed countries because of high number of
production it become difficult to accomplish in others (Farshid, et al., 2015).
Figure 2: Soft drink market share
(Source: Bailey., 2014)
2.) Laws and Legislation: One of another advantage is related to relaxed in HR laws
which are strict in Europe Due to new policies and strategies multination company
provided relaxation human resources laws (Dekhil, et al., 2017). For example, due to
relaxation in laws it become easy for company to easily terminate and hire
employees. It made easier to hire employees who charges low cost for working in
their firm
3.) Enhance revenue for potential customers: In third world development middle class
people are spending much as compare to higher class people (Bryman and Bell,
2013). Therefore, Coca cola can earn lots of from middle class people as because they
purchase product. Coca cola net income fell to $1.37 billion and in the second quarter
is was $3.45 billion.
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The major issue that is been faced by the third world is the water crisis that is to
be taken in the effective thought process by the organisation. The Coca cola has to
look after its effective measures to make its business processes more cost effective
and ecological that will help the firm to meet the operational demands of the
organisation (Gertner and Rifkin, 2018). As water is the integral part of the
manufacturing process of the business of Coca cola, the business firm will look after
the better measures to preserve the scarce resource. It will not only help in gaining the
firm a better cost efficiency by cost cutting the transportation of water but also help in
maintain the environmental concern of the organisation in a effective manner. Apart
from this, the brand or the company will look after the better establishment of the
CSR in the third worlds countries (Vos, et al., 2018). The cited beverage firm will
see through the reduction in its environmental emission of green house gases, water
pollution and extraction, and other form of pollution. Besides this, Coca cola will also
look after the better handling of the different operations which will help in generation
of jobs in this country (Iwamuro, et al., 2014). The third world countries have the
maximum number of population which makes the proper opportunity for the
company to have the work force which will ultimately improve the economic
condition of the country. This will increase in the economy of the nation and revenue
generation of the firm (Sharp, 2016). Besides this it gives the better growth and
development of the firm. This will help in effective rise in the operational capacity of
firm and have a competitive advantage in the market over its rivals. Besides this, it
will help the firm to build a better relationship with the local customers and
employee's.
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Task 2
a.) Code of ethic of Auckland transport
Safety and security: Safety of employees as well as customers is important or Auckland
transport. The firm ensure that within the firm that employees become familiar of culture of
safety with continuous improvements. In the organisation when safe and healthy environment is
created then it will become easy for employees to work with dedication and fulfil their
responsibility (Bakan, 2016). Along with this Auckland transport ensure that that all the services
are carried out with the standard of the from safety management system it help in improving
work safety performance.
Data protection: Auckland transport ensure that all the information provided by
customers are kept confidential. Policy is implemented within the organisation related to keeping
all the information safe and secure of the employees as well as customers. Along with this
personal information and firm information such as different strategies and actions must be lawful
and only for business purpose (Faria, et al., 2017). Due to contract and per company policy all
the employees need to kept information of Auckland transport confidential and cannot be
disclose in front of external people.
3.) Complete and appropriate information: For the successful business accuracy and
reliability are essential elements. It is because they help in keeping record of all the information.
Auckland transport keep complete and appropriate information regarding business revenue and
expenses which help in protecting credibility and reputation of the firm with fulfilling all the
legal obligations (Sacks, et al., 2018). In the organisation it is completely prohibited to keep
record of false information for firm benefits. It has systematic cycle of records which is
periodically recorded and used all the information for legal use.
Diversity and inclusion: Auckland transport always focus on managing diverse workforce
which helps in providing innovative ideas for accomplishing success. Along with this, healthy
working environment of the firm help in enhancing productivity and profitability of the firm.
Auckland company has implemented policy to promote equality at the workplace and respect for
all the employees whether they belong to different religious, nations, race etc (Austin and
Gaither, 2016). All these policies are implemented in all activities such as training, recruiting,
promotion, appraisal etc. Along with this firm also celebrate diversity at the work place and
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avoid any kind of discrimination. In the organisation each and every employee is empowered in
order to raise their issues. Thus, it can be stated that firm respect their employees and human
rights.
b.) Rational code of ethics: -
1.) Improve business relationship: The codes of ethics are important in order to make
managerial decisions with the assist of preparing a structure at the executive level. Along with
this, code of ethics also provides help in order to formulate the levels of interaction with the
external and internal stakeholder (Farshid, et al., 2015). This assist in developing an
understanding related to the boundaries in which company need to carry out day to day activities.
Codes of ethics which are effectively followed help in preserving the reputation of the firm.
However, breach of ethic is mostly conducted by employees.
2.) Hold management accountable: While carrying out business at international level it
is important to conduct code of ethics. The ethical code of business has separate level among
regions and nations. People who are involved in the business have knowledge related to business
cultures which are significant in the market (Masulis, et al., 2017). It leads to support the
growth of the firm. Director or upper level of management role and responsibility is to focus on
code of conduct. Henceforth all the employees who are involved in business activities maintain
all the ethical codes which are adopted by the firm as because it leads to create specific image in
the mind of customers.
3.) Build image in market: In order to build reputation firm, need to put lots of efforts.
Along with this to enhance market share with positive reputation help company in gaining
competitive advantage. From the starting Auckland transport focus on creating a positive
reputation in the market through satisfying customers (Powell and Gard, 2015). Along with this,
firm also shows their ethical codes in their websites. It supports in making sure that all their
activities are aligned with their codes and prepare positive image in the mind of customers and
employees. It also helps in creating customer loyalty and creating effective image in market.
4.) Internal focus: in order to accomplish goals of the firm code of ethics play
significant role. It becomes easy for the firm to meet the target of the firm when all employees
and stakeholders follow ethics. Along with this it supports firm in encouraging social changes
through the help of creating awareness by advertising and marketing. Auckland transport
company emphasis on providing equal opportunities to employee (Berglund and Helander,
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2015). Along with this diverse culture people are provided training and development facility.
Furthermore, it focusses on keeping quality of the product and try to enhance satisfaction level of
customers. They also ensure that nor production or manufacturing process can harm the
environment
c.) Application of the code to common dilemmas:
At the time when firm face any type of difficulty while selecting a solution between two
or more choices and both the alternative are essential then it is called ethical dilemma
(Ransbotham, 2015). In other words, for firm when it became tough to choose between
alternatives and make decision between good and bad then such type of situation is known as
ethical dilemmas.
Green environment: In sustainability main points which can be discussed are such as
dilemmas which are can be experienced by the firm. Among all of this one of it product
development which can be accomplished with the help of innovation. They can focus on
adopting changes which take place in current time for sustaining products manufactured by them.
There are some external factors which can affect the it such as market share, inflation,
competition etc. Auckland transport company is focusing on providing products and services
which are eco-friendly and expensive (Dertwinkel-Kalt, 2016). Their products are different from
competition and of high quality which can easily grab attention of customers. Along with this, in
order to expand business profit, play significant role but social responsibility is also considered
as one of the essential factor that help in expansion of the business. Therefore, it can be stated
that Auckland transport company is delivering eco-friendly goods and services which help in
reducing power consumption, recycled wastage and minimise carbon dioxide (Shivarajan, et al.,
2015).
Selection and recruitment process: At the time of selecting and recruiting candidates
company can face dilemmas. For instance, hiring of skilled candidates, recruitment,
performance, health and safety etc which are implemented by Auckland transport human
resources department (Flynn and Okuonzi, 2016). In order to maximise profit firm, focus on
hiring skilled employees. The firm do not make any type of discrimination while carrying out
selection process. Along with this, all the issues which can be faced by employees are effectively
deal by human resources department within the firm
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Personal friendship: - In a firm personal relationship also put an individual in ethical
dilemma. All employees function into different position in the organization. Conflicts of interest
is the close the home hobby of the employees is does not collaborate the company. In the
organization to break the rules and regulation is create the problem and the organization is
harmful. In the company knows the employee who is break the rules and regulation is create the
problems the specific person (Berglund and Helander, 2015). In this situation the particular
employees attentive the regarding senior management. The company impact the honesty of the
person if they not aware to high level management.
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