Coca-Cola: Globalization, Business Strategies, and Border Management

This report examines Coca-Cola's globalization strategies and their impact on its business. It discusses globalization's influence on modern businesses, focusing on Coca-Cola as a case study. The report highlights Coca-Cola's global marketing strategies, product differentiation, and technological advancements that have contributed to its global success. It explores the company's history, including its early expansion and strategic decisions, such as introducing Diet Coke. The analysis covers outsourcing and offshoring, the challenges faced, and the opportunities gained by Coca-Cola in the global market. The report also touches on the competitive landscape and how Coca-Cola maintains its edge through economies of scale and adaptation to local markets. The document is available on Desklib, a platform providing study tools and resources for students.

Managing Across Borders
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Contents
Executive Summary:........................................................................................................................3
Introduction:....................................................................................................................................4
Main body: Topic 1: Globalization and its impacts on today’s business........................................6
Conclusion:....................................................................................................................................12
References:....................................................................................................................................13
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Executive Summary:
In the research, a discussion will be carried out on the concept of globalization and the ways it
impacts today’s business. The company selected for this report is Coca-Cola which is a global
powerhouse. The strategies it has adopted and other concepts. Globalization is basically a trend
of uplifting the communication between the people of the companies on a worldwide scale due to
the progression of transport, technology, communication and other factors. When it comes to
economic globalization it incorporates the economic resources of data, technology, and capital of
goods and services.
Globalization is said as an expansion of the social relations with the world-space which has been
defining the world space into the terms of the historically variable ways that are to be
experienced and understood in the social ways. The economic independence of the national
economies throughout the world with a quick increase in the moments of the cross-border drive
of goods and services are increasing. The globalization of business is a step to increase its
economic capacity and influence over the market.
Coca-Cola is one of the most known brands all over the world and it has been constantly
intensifying the beverage industry and continuing to rank as one of the largest company for
beverages in the world. There are many steps of globalization that Coca-Cola has taken to grow
over a century. Global marketing strategies have been used by the company to expand its roots
all over the world. Outsourcing and offshoring contribute to globalization by utilizing the case
study of Coca-Cola the challenges, opportunities, and problems that were faced by the company
will be discussed.
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Introduction:
Globalization is a process where the organizations try to develop their influences on the
international level. In the project, a discussion will be laid on the process of globalization and the
impacts that it makes on the organization. The ways in which outsourcing and offshoring can
affect the business will be learned and the contribution of globalization on the aspects of
business will be discussed. The company selected for the report is Coca-Cola and the challenges
that it has faced and the opportunities it has gained will be learned. The strategies that Coca-Cola
had adopted to increase the efficiency and compete with other brands globally will be discussed.
The organization has been continuing to advance the growth on the quick expansion of beverage
industry.
Coca-Cola has been operating in over 200 countries and has been dealing with over 84, 00
suppliers. The company has been truly remaining committed to its goals and providing the
highest quality of products and services. The company has been keeping its entire recipes secret
so that the taste of their products remains same and they can ensure quality customers.
Globalisation has been representing the global integration of the international trade, investment,
and cultures. There are many policies that are developed by the government for taking their
companies to a global level so that the economy can be enhanced.
Globalisation is a wide concept that takes the companies from their local dealers to generate a
higher share of the market so that the profits can be enhanced. In the task, all the aspects of
business in the world of globalization will be discussed. Coca-Cola has been expanding its
networks globally and has currently been operating around 450 brands. The system of Coca-Cola
has been fruitfully applied to its formula of success at the global markets. There are various
challenges that the company had to face for getting their business in all over the markets which
will be discussed and the ways in which they overcame the backdrops and losses will be also
deliberated in the research below.
The concepts of outsourcing and offshoring will be determined in the context of this market in
Australia and other major countries. In the task various recommendations have also been
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provided for the Coca-Cola to come up with the chief challenges of globalization, there are
various ways to prevent the organization from impacts of globalization or mold the features of
the organization so that it can perform as a global competitor.
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Main body: Topic 1: Globalization and its impacts on today’s business.
Globalization assists the organizations to make their work more futuristic and start its branches
all over the world. Globalization provides competitive advantage from diminishing the operating
costs and accessing the raw materials from the additional markets. Multinational Corporation
like Coca-Cola can get help in manufacturing and sell the products all over the world. The power
and status of Coca-Cola were augmented in the year 1988 at the time when three of the
worldwide independent surveys that were steered by Landor and associates which inveterate that
Coca-Cola is the best known and the most famous trademark in the whole world. More of the
common assessments of the loyalty of consumers to the Coca-Cola came in 1985 (Malepati,
2015).
The first ever change in the secret formula of Coca-Cola was made in 1985 at the time of
announcing a new flavor for the Americans. The new flavors eventually didn’t succeed much
due to the deep feelings and attachments that consumers got with the company and its old taste.
The global strategy of the company at the time of 1980’s kept on bringing the clients on each
continent with a variety of refreshing products. A new history was created by Coca-Cola in 1982
when they introduced Diet Coke, which was the first ever expansion of the trademark, this
became the next most profitable soft drink ever after the Coca-Cola itself. Diet-Coke then
became one of the top low-calorie soft drink all over the globe (Powell and Gard, 205).
Globalisation in Coca-Cola started in the early of 1990’s when the bottling plants were basically
started in Cuba and Panama when the US military started to take over the different regions which
were causing to a higher increase in the demand of Coca-Cola. The plants were termed as vastly
successful as the shipping charges were diminished. The rates of Coca-Cola were low at the
initial stage with the expansion of new plants over Hawaii, Puerto Rico, and the Philippines
which assisted in launching the investment of Coca-Cola in the foreign markets for expansions in
future and generating other opportunities. At the time of 1926 had started to establish great
foreign relationships all over the globe with the assistance of its greater and fresh strategies of
global operations. Coca-Cola kept on continuing its path to success and production at a larger
scale for the further decades (Wrigley and Lowe, 2014).
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The local branches of Australia with the local partnership to produce and then furtherly distribute
the trademark of Coca-Cola throughout the entire globe. There are different strategies utilized by
Coca-Cola to assist their quick growth and extension throughout the whole world. The three of
the strategies of Coca-Cola are global marketing strategies, product differentiation, and
technology. The first strategy used by Coca-Cola is of global marketing that has been playing a
crucial role in the fruitful globalisation of Coca-Cola, the most popular advertising slogans of the
company and the catchy lines played an equal role in success of the company and connecting the
customer’s feelings with their products and services (Armstrong, et. al, 2015).
The most admired slogans of Coca-Cola are “Drink Coca-Cola”, “Good ‘till the last drop”,
“Enjoy” and so on which influenced the customers. Many catchy songs were presented along
with the slogans of Coca-Cola so that they can make the clients get attached to their brand
quickly and the most admired advertisement song of Coca-Cola was “I want to buy the world a
coke’ that was produced by Billy Davis in the year 1971, this commercial was marked as one of
the most famous commercials all over the globe. There are many efforts taken by Coca-Cola to
mark-up advertisement as they became the first beverage company to be a sponsor of Olympic
Games in 1982 held in Amsterdam. Coca-Cola kept on sponsoring many events such as Major
League Baseball (MLB), The Federation Internationale de Football Association (FIFA), National
Hockey League (NHL), National Football Association (NFL), National Basketball Association
(NBA), NASCAR, and also Cricket World Cup (Gorodnichenko, et. al, 2017).
The second strategy was of product differentiation which assisted Coca-Cola to support the
features and vision of globalization in the ability of the company to alter products and then meet
the demands and desires of the market. Coca-Cola has been very much successful to alter their
line of products and services as per the demands and desires of the younger customers by
providing them with the PowerAde and other flavored products of coke. Some of the products
include Cherry Coke and Vanilla Coke. The company has been meeting all kinds of demands of
the market whether to the products of younger people or the older health conscious individuals
by developing Diet coke for them. Coca-Cola has also invested much of their time and money
for understanding and then further researching the diverse segments of the market based on age,
sex, taste, income and other factors of the individuals. Coca-Cola also studied the backgrounds
and cultures of individuals before investing in a new plant in a new country (Sheth, 2017).
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At global level, Coca-Cola proved to be a significant trademark by its fruitful strategies to get
expanded. Coca-Cola also altered their packaging style which again plays a crucial role in its
marketing strategies by adopting the cultures and other marketing segments of the place they are
operating in, for making their products available to the different norms and segments of market
functional packaging was utilized. The Coca-Cola Company has been considering different sizes
and shapes of glass and the plastic bottles that make sure the stacking of the vending machines.
The company has been using the recyclable material for their products which goes on with their
commitment to environmental sustainability (Spring, 2014).
The other strategy that Coca-Cola used for globalization was of technology where the advances
and advancement of technology have been contributed to the ability to globalize of Coca-Cola
quickly throughout the 20th century. With the constant advancement of technology provided with
more efficiency in the transportation of products and it became a lot of cost-effective in the
sector of manufacturing with the development of new and more efficient machines. With the
help of technology, Coca-Cola got to know about the trends in the market and analyze the new
areas before its expansion which resulted in lower risk and higher profits. The advancement of
technology made the availability of data and resource more effectually (Reeve and Gostin, 205).
The warehouses of Coca-Cola were able to track the level of productivity and track the number
of products that are shipped so that they can produce only the required number of products which
will be stopping the wastage of products and services. The costs of many of the Coca-Cola
products were slashed with the assistance of computerization that has been manufacturing the
equipment at larger speed. Globalisation has also been affecting today’s business with the
increased competition which is caused by the more number of companies entering the foreign
markets and flowing the investments of the countries. The clients have become more selective
about their products and services due to a larger number of availability in products such as
quality of products, their price and the services (Li, et. al, 2018).
As Coca-Cola has been selling over various continents over the globe their business can obtain
the economies of the larger scale of manufacturing which makes it highly competitive. Many of
the modern products and services can be accessed anywhere which assists the today’s business to
gain the profits of low-cost labor and the other charges of the sources. The increased manages
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and the ventures are providing assistance in getting access to the larger markets that have been
associating with the benefits of cost. There are certain steps and techniques to be followed by the
International managers for staying ahead of the game such as knowing their competition which
looks a lot simple but is a complex process to know about the future ideas of the competition.
The International managers should have knowledge about their customers and realize the
demands of the customers and fulfill the demands that they are having so that they can get highly
attracted to the company (Deal, 2018).
The International managers should know about the new target markets so that they can expand
their business into the new market. The International managers should also have decent
knowledge about the market promotions as Coca-Cola has best of its products and services
which is again vital for them. Data is another vital feature to which Coca-Cola should have great
access and the International managers also need to have proper access to the data about their
competitors and having knowledge about the strategies that they need to access for their future
globalization process. Outsourcing is a term that has been a huge part of the business circuit and
as globalization has been getting more and more relevant to the business process of Coca-Cola.
Globalization has been becoming a universal language and in many of the aspects of business, it
has paved different ways for the strategic techniques like the offshore outsourcing which can
prove as one of the most useful product for Coca-Cola in terms of globalization (Karnani, 2014).
With most of the offshore outsourcing which is offered at the global market one of the largest
contributions that have been done on the outsourcing in the today's generation, it is about the
aptitude to connect the nation with the development. Coca-Cola has linked many of the countries
and has been reducing the probabilities of war within different countries. Globalization has made
the offshore outsourcing possible in the turn and not it has been assisting in the mobility of
globalization. Outsourcing can basically be defined as a term of contracting with a third service
provider for the management and achievement of a certain amount of work (Wevers and
Verhoef, 2017).
The Coca-Cola company will be outsourcing definite jobs to the third parties which have been
located in the diverse spaces for getting their job completed and will also be very much cost
effective. For Coca-Cola offshoring is referred to the relocation of the activities within the
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organization which is wholly owned by Coca-Cola and further provided in other countries.
Globalisation has been providing a large number of opportunities not just for Coca-Cola but also
the other companies. Economic growth is the expansion of the products and the services that can
uplift the goods and services that have been produced by the economy over a specific period of
time. The biggest opportunity of globalization is that the products, services, medicines
knowledge will get available in the other companies and this kind of development will surely
reach the potential consumers (Boyjoo, et. al, 2017).
The common profits of extending into the markets that are developing are that it will be
including the new products that are having less labor cost, cheap natural resources, and other
benefits. They have been looking for the economies to a scale of mass manufactured goods that
are not just having sustainability but also at cheaper costs for the other labor inputs. There are as
many challenges also at the time of expanding the products at the global level. As globalization
is seen as the process of development there are certain challenges that Coca-Cola had to face at
the time of expanding their products and services across the border such as political instability
which was a major risk faced by the company that led to huge loss, for the success of company
stability at political level is very much crucial (Sheth, 2017).
The other challenges that were faced by Coca-Cola were of cultural differences as all countries
have their own culture and terms and they all react to the products and services in their own way.
The change in government policies is also a major challenge before Coca-Cola in the terms of
globalization. The differences in the tax system, exchange rates, bureaucracy, and investment
consideration also severely affected the processes of Coca-Cola. The hire wage and the
difference in currencies can also be a major challenge at the time of globalization (Armstrong, et.
al, 2015).
It can be recommended that Coca-Cola needs to focus on the potential segments of management
so that they can achieve all their desired goals and objectives and the trends that are affecting the
Coca-Cola Company at International level can be handled positively. At the time of operating at
the International level, it is crucial for Coca-Cola to put the customers at the utmost priority. As
the customers are having diverse ranges of choices they can easily shift to other competitive
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products for which Coca-Cola needs to set up their products and services at the same quality and
keeps the customers engaged in their particular advertisement and slogans.
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Conclusion:
In the above task a research has been conducted on the impacts of globalisation on the present
business from which it can be concluded that there are diverse challenges that are to be met by
the companies at the time of providing their services at the international level and managing their
services to reach the new segments and consumers of the market. From the research conducted
above it can be said that globalization has been influencing the competition at international level
as more number of companies are providing their services at new markets which generates a
greater choice for the clients that leads to superiorly high competition in the market.
The customers no longer stay loyal when they start getting higher choices of products and
services. The ways in which Coca-Cola has utilized its strategies to engage in the process of
globalization has been explained. The limitations of globalization are also discussed along with
the recommendations to come up with the limitation and challenges of expanding to a new
market. A learning on the ways in which outsourcing and offshoring has been contributing to
globalization has also been deliberated
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J.F., Jaroniec, M. and Liu, J., 2017. From waste Coca Cola® to activated carbons with
impressive capabilities for CO2 adsorption and supercapacitors. Carbon, 116, pp.490-
499.
 Deal, J., 2018. Brand Communication in a Large Consumer Goods Company: A Case of
The Coca-Cola Company.
 Gorodnichenko, Y., Kukharskyy, B. and Roland, G., 2017. Cultural Distance, Firm
Boundaries, and Global Sourcing.
 Karnani, A., 2014. Corporate social responsibility does not avert the tragedy of the
commons. Case study: Coca-Cola India. Economics, Management and Financial
Markets, 9(3), p.11.
 Li, S., Jiang, C., Wang, H., Cong, S. and Tan, M., 2018. Fluorescent nanoparticles
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biodistribution and digestion studies. Nanotoxicology, 12(1), pp.49-62.
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Andhra Pradesh.
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 Reeve, B. and Gostin, L.O., 2015. Creating the Conditions for People to Lead Healthy,
Fulfilling Lives: Law Reform to Prevent and Control NCDs.
 Sheth, J.N., 2017. Climate, Culture, and Consumption: Connecting the Dots. In The
Routledge Companion to Consumer Behavior (pp. 42-46). Routledge.
 Spring, J., 2014. Globalization and educational rights: An intercivilizational analysis.
Routledge.
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 Wevers, M. and Verhoef, J., 2017. Coca-Cola: An Icon of the American Way of Life. An
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