Coca Cola's Global Business Strategy - Research Paper Example

The company was established in 1886 and the flagship brand spread all over the world. The company runs its business in the areas of manufacturing, retailing and marketing soft drinks, beverages and non-alcoholic syrups across the world. The company sells around 500 brands in 200 countries across the world catering to 1.7 billion customers per day. A total of 1,46,200 employees have been engaged by the Coca Cola Company all over the world in order to run its business of manufacturing, retailing and selling of soft drinks, beverages and syrups in different countries.

The company earned revenues of slightly over 48 billion dollars with an operating income of close to 11 billion dollars in 2012. The business of Coca Cola is largely supported by the supply chain and logistics management of the company. The drinks and beverages manufactured by the company in its factories are distributed to the wholesalers and retailers, franchisees of the company, etc. The franchisees, agents and retailers sell the products of Coca Cola in the regional markets all over the world.

Some of the renowned brands of Coca Cola include the Coca Cola, Fanta, Sprite, Valpre, etc (THE COCA-COLA COMPANY 1). In order to deal with the areas of risk in the supply chain, the company adopts global business strategies to distribute its products in several countries. Research Methodology The research methodology adopted for this study on the company background of Coca Cola Company and its supply chain strategies to distribute its products in the international boundaries have been explained as follows.

This is a secondary research conducted with the use of existing data. The data and required information on the company and its strategies to distribute the products in the international boundaries in an efficient manner have been collected from electronic sources, company’s official website and from the books on logistic management of the company. The data collected from the company is reliable and have been qualitatively analyzed to determine how the company addresses the areas of risk and achieves efficient distribution of its products in order to meet the international demand of its products.

Analysis and findings In order to deal with the risks of supply chain that includes agency cost, delay in delivery of the products due to intermediate players, conflicting interest with the distributors, Coca Cola Company undertakes global business strategy to distribute its products internationally in order to meet the global demand. The company operates a franchisee based distribution network throughout the world. The franchisees undertake contracts and agreements with the Coca Cola Company for retailing of the drinks, beverages and syrups manufactured by the company (Stock and Lambert 45).

The franchisees are given the responsibility for distribution and sale of the products for the particular region. The supply chain interruptions, malicious tampering of products, transportation delays are the areas of risk for the company. In order to address the areas of risk, the company adopted the global strategy of replacing existing logistics with an