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Truth and Power at the Coca Cola Company - Case Study Example

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This paper "Truth and Power at the Coca Cola Company" discusses Coca-Cola’s international business strategy and performance. Coca-Cola’s approach to internationalization is at the core of its global success.  The company has expanded into virtually every national market…
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Truth and Power at the Coca Cola Company
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Download file to see previous pages Needless to say, while some corporations have successfully implemented these recommendations and have substantially expanded their markets and financial returns as a result, others have not. This research looks at one of the corporations which have successfully reaped the rewards of globalization: Coca-Cola. Drawing on international business theory, the study engages in a critical analysis of Coca-Cola’s external and internal environments for the purposes of shedding light on its corporate strategy and uncovering the determinants of its success. The analyses, which utilize Porter’s Five Forces, SWOT and PEST, indicates that Coca Cola’s success is a direct outcome of an internationalisation strategy which is deeply considerate of the particularities and peculiarities of the various national markets within which it operates.

Multinational corporations are popularly regarded as the primary beneficiaries of globalization. In his defense and justification of this claim, Wartick and Wood (2006) highlight the immediate correlation between the removal of barriers to international trade and foreign direct investment and the growth and expansion of the global activities of multinational companies. While not disputing this claim, the fact is that multinational companies are not simply the primary beneficiaries of globalization but the purveyors of globalization. In other words, globalization was spearheaded by globally-minded, expansionist corporations such as Coca-Cola. Indeed, as Wartick and Wood (2006) argue, corporations such as Coca-Cola, McDonald’s, Phillip Morris, Nestle, and several others globalized business through international expansion via mergers, acquisitions, and franchises, prior to the inception of globalization. The implication here is that Coca-Cola, among others, played a seminal role in the globalization of the international economy and, indeed, designed and pursued global business strategies prior to the passage and subsequent enforcement of WTO rules.  ...Download file to see next pagesRead More
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