Coca-Cola Company Internationalization - Research Proposal Example

Coca-Cola Company Internationalization Research Plan Name: Course: Tutor: Institution: Date: Table of Contents Table of Contents 2 1.0 Introduction 3 2.0 Reasons for Selecting Coca-Cola 3 3.0 Problem Statement 3 4.0 Research Objectives 4 5.0 Research Questions 4 6.0 Internationalization Approach 4 6.1 Stages Model Theory 4 6.2 FDI and electic paradigm 5 7.0 Internationalization Challenges 5 8.0 Recommendations 6 9.0 Conclusion 7 References 8 Appendices 9 Appendix 1: Coca Cola Regional Sales 9 Appendix 2: Coca-Cola Forecasted Regional Sales 10 1.0 Introduction Globalization and internationalization has emerged as a key organizational approach for increasing returns on investments as well as create value for the shareholders Due to the gains and merits of globalization, a majority of organisations have ventures onto this global market, with a mixed basket of gains and challenges. This research plan adopts the case study of Coca-cola as its internationalization strategy examples 2.0 Reasons for Selecting Coca-Cola The organization serves as an ideal example for the evaluation of business internationalization approaches, strategies as well as challenges due to its wide scope internationalization The venture has over the decades developed and expanded to incorporate and establish its market base in over 200 countries across the globe Therefore, the wide organizational expansion base implies that it has for a long time and across generations ventured in the global internationalization strategies This research plan concludes that the experiences and trans-generational gains and challenges by Coca-cola serve as an ideal research evaluation focus. 3.0 Problem Statement In defining the problem statement, the research plan will use the study developed by Rugman and Hodgetts (2001, p.334). In the study the authors evaluated the nature and circumstances through which modern organisations internalize into the emerging foreign markets. In its review, he study revealed the emerging increased globalization challenges ranging from market conditions, infrastructural requirements to governments regulations. Based on this study, the research plan establishes that despite the high end gains of globalizations, organisations encounter challenges and thus need to employ strategic internationalization approaches to guarantee success Unfortunately minimal literature exists on the challenges and benchmarks for overcoming them, therefore necessitating the need for the research evaluating Coca-Cola as an ideal internationalization success benchmark. 4.0 Research Objectives The overall research objective will be based on establishing an internationalization success benchmark, through which prospective internationalizing organisations can benchmark their capabilities and challenges. In particular, the research study will focus on: Internationalization methods and alternatives Emerging internationalization challenges Best approaches to overcoming the internationalization challenges Organizational competitiveness offering increased success rates over the internationalization challenges 5.0 Research Questions Based on the above listed research objectives, the research will specifically focus on evaluating and providing answers to the following questions 1. What are the available viable internationalization alternatives? 2. What are the common internationalization challenges? 3. How has Coca-Cola overcome these challenges to establish its global Presence? 6.0 Internationalization Approach This research section will focus on establishing and evaluating the internationalization theories applied by Coca-Cola Company in its expansion strategy 6.1 Stages Model Theory A preliminary evaluation of the organizational expansion and internationalization strategy demonstrates its use of the stages model of internationalization. Melin (1992, p.99) discussed the stages model of internationalization as a two layered theory namely the product lifecycle as well as the Uppsala internationalization models. An evaluation by Rugman and Hodgetts (2001, p.334) on internationalization on Coca-Colas expansion strategy case study, established that the organization applies the product lifecycle internationalization model. In this case, once its brand was popular and well established in the USA, the organization sequentially to other Latin America nations. Statistics of this expansion venture are given An additional study by Liu (2001, p.14) demonstrated how the organizational expansion strategy defied the Uppsala internationalization approach that relies on psychic factors as a determinant for expansion into new markets. An in-depth evaluation of the study demonstrates how Coca-cola defied the cultural, regional or regulatory similarity rules in its expansion. 6.2 FDI and electic paradigm A review by Wooster (2006, p.179) on the organizational internationalization set up illustrates its application of the OLI internationalization model. The study evidences this argument with the organisations ownership of manufacturing and distribution facilities in China. An additional organizational evaluation by Yeung and Mok (2006, p.91) argued that low labour costs and high raw materials availability were key among the organizational motivating factors for Investment in foreign markets and the use of FDI approach. The research seeks to apply the arguments and statistical analysis data offered by the two studies to establish the merits and demerits of adopting the OLI and FDI approach as an internationalization strategy. 7.0 Internationalization Challenges This research section will focus on evaluating the challenges and barriers that Coca-Cola has faced in its internationalization endeavour over the decades. The aim of evaluating these challenges is to form an evaluation sheet for consecutive organisations seeking internationalization success Ferrell, Fraedrich and Ferrell (2012, p.460) argued that the Coca-Cola Company has faced increased health implications campaign. In this case, the study cited the brands anti consumption campaigns in Australia and other parts of Europe. In this regard, the study established that the campaigns associating the organizational brands with Asian market campaigns on the increased health complications such as obesity damaged its reputation as well as revenues and sales in Australia and Europe. The research intends to apply the study as an indication of how external stakeholders and activist groups can implicate and deter an organisations internationalization strategy success. In addition, the research will apply a study developed by Maynard (2001, p.21) on the Coca-Cola brand challenges in supply chain management. The report aired the nature of resources exploitation as well as poor working conditions for the organisations and is supply chain partners. In this case, the study pointed out low wages and poor working conditions under the organizational manufacturing sweat shops as key among the challenges. Further, the research preliminary evaluation establishes state capitalism as an additional challenge to the organizational internationalization strategy. In this case, the emergence of state capitalism in the Asian markets like China, Taiwan and Russia led to increased market entry barriers and regulatory bureaucracy. As such, this as Screpanti (2001, p.248) argued led to increased operational as well as initial market venture costs. Therefore, this research argues that Coca-Cola as one among the internationalizing brands at the time, faced market entry barriers as well as increasing operational costs at reduced gross profit margins. 8.0 Recommendations Based on the established Coca-Cola Company internationalization strategy and the subsequent experienced challenges, the research develops a series of recommendations through which subsequent organizations seeking to venture in the international markets. In the case and wake of increased organizational brands anti campaigns on the basis of their health implications, the Coca-Cola Company applied the corporate social responsibility approach. In this case, the organization developed a series of its societal oriented programs to overcome the established negative reputation. Based on a descriptive analysis and instances evaluation of the respective organizational CSR programs, the research develops a recommendation for increased CR programs use in internationalizing organisations. An additional recommendation developed by the research is on the need for product differentiation (Hill, 2014). An evaluation of the Coca-Cola company reveals is continued product differentiation and diversification approach in the market. In this case, the organization developed market specific products such as Coke diet as well as Coke Vanilla flavour. The development of these products such as Coke diet sought to capture the markets with health complications as well as the youths. The argument that such diversification has served as the organizational key competitive edge, leads this research into establishing that in order to establish successful organizational internationalization strategies, ventures should consider diversifying their products base. CSR programs An additional organizational internationalization strategy recommended by this research is to establish joint ventures. The research discusses on the nature, legal requirements and the sub sequential cultural and social merits by the approach The research recommends on the nature and approach through which organisations and establishes the joint ventures as well as evaluating the nature and approaches through which such alliances can be reinforced and executed (Hill, 2014). The recommendation is based on an approach to increase the overall internationalization strategy success for the Coca-Cola Company. 9.0 Conclusion In summary, the research will focus on evaluating The extent to which the developed research objectives are achieved ad satisfactorily addressed The nature as well as the respective answered developed in regard to the established research study questions. The specific internationalization strategies adopted by Coca-Cola. Offer an analysis of each and the respective demerits as well as appropriate situations in which each of the approaches is applied in the market Evaluate the experienced Coca-Cola Company internationalization challenges experiencing the nature and form of the experienced challenges. Establish the key Coca-Cola Company competitive strategies that implicate and enhanced it overcome the encountered challenges in the internationalization process The key theme of the research is to add onto the existing literature on the nature and processes of internationalization in an economy. As such, the research conclusion will develop and offer the strategic key take away notes that respective organisations can adopt and use in a bid to internationalize their operations In summary, the research conclusion will restate the research objective and offer a summary of how the established research deliverables have been delivered on by the study. Finally, the study will offer recommendations for future research studies on the topic to enhance and develop on the developed literature. References Ferrell, O. C., Fraedrich, J., & Ferrell, L., 2012, Business ethics: Ethical decision making and cases, recording for the Blind & Dyslexic, Princeton, NJ Hill, C., 2014, International Business: Competing in a Global Marketplace 10th edition, McGraw Hill Education, USA. Liu, H., 2001, Foreign direct investment and strategic alliances in Europe, Internat. Business Press, Binghamton, NY. Maynard, M.L. 2001, "Policing transnational commerce: Global awareness in the margins of morality", Journal of Business Ethics, vol. 30, no. 1, pp. 17-27. Melin, L. 1992, "Internationalization as A Strategy Process", Strategic Management Journal (1986-1998), vol. 13, pp. 99. Rugman, A., & Hodgetts, R., 2001, “The end of global strategy”. European Management Journal, vol. 19, no. 4, pp. 333-343. Screpanti, E., 2001, The fundamental institutions of capitalism, Routledge, London. Wooster, R.B. 2006, "US companies in transition economies: wealth effects from expansion between 1987 and 1999", Journal of International Business Studies, vol. 37, no. 2, pp. 179. Yeung, G. & Mok, V. 2006, "Regional Monopoly and Interregional and Intraregional Competition: The Parallel Trade in Coca-Cola between Shanghai and Hangzhou in China", Economic Geography, vol. 82, no. 1, pp. 89-109. Appendices Appendix 1: Coca Cola Regional Sales Appendix 2: Coca-Cola Forecasted Regional Sales Read More