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Contemporary Developments in Business and Management (SIM 337) Name: Trnh Quang Minh (Rooy) Lecture : John Davison
Introduction SWOT Analysis: SWOT analysis stands for Strength, Weakness, Opportunities and Threat and it is used to identified the current situation of company and assume company future based on the current situation as well. Strength

Coca-cola has been considered as a part of American culture for long time ago, so one of the most important strengths of Coca-cola is brand recognition. Coca-cola brand image is shown

on items listing from souvenirs to clothing so that the Coca-cola can differentiate its product brands to other competitors. Moreover, another point for Coca-cola strength is that Coca-cola

is owning four of top five non-alcoholic beverage brands: comprising Coca-cola, Diet Coke, Sprite and Fanta. Therefore, it is proved that Coca-cola is prominent in having wide variety products in market comparing with other competitors. Thirdly, product line of Coca-cola have high market share in US market. According to Datamonitor (2011, June), Coca-cola market share in 2010 was 42% comparing to Pepsicos market share of 29.3%. Coca-cola also has the largest distribution system to produce products in global level. Finally, Coca-cola has 500 brands and 3,500 beverages being sold to customer in over 200 countries around the world. Moreover, there are 55 billion beverage servings used in globe per day and 1.7 billion of those servings are trademarks belonged to Coca-cola. Weakness:

Datamonior mentions that in 2010, smart water PET Bottles were recalled in North America because Coca-cola products could not reach the FDAs quality standard for bottled water. Moreover, in recent years, customer awareness for their health has been increasing day by day,
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therefore, they tend to eliminate soft drink such as Coca-cola which can cause obesity and diabetes for them. Opportunity:

Complementary food products tends to increase the drink consumption when drink and food products are bought together, therefore, the company will develop its brand awareness through complementary food products because that will let revenue and sale distribution increase as well. Under the pressure of customer awareness in term of their health, the company will invent new product with no sugar such as Diet Coke in order to create new market orientation for these customers. Threat:

Health issue is the challenge for Coca-cola soft drink to sell these products to customers. Health advocates suggests people to eliminate customers consumption of high fructose com syrup (HFCS), a kind of sugar containing in Coca-cola products. Moreover, the United State

Government has increased a lot of regulations related to carbonated drinks, and some public school systems as also prohibited soft drink sold on their campus as well. Besides, customer preference also tends to consume healthier products, therefore, the company revenue eventually decreases . Even though Coca-cola has some alternatives, especially Diet Coke, but that cannot change situation because the soft drink possesses 77% of Coca-colas sale. Another point is that water scarcity also has effect on Coca-cola company because Datamonitor predicts that the demand for purified water will increase by 56% comparing to what people are currently consuming, which leads the production costs in the future increase as well.

Five forces analysis: According to Investopedia, 5 forces analysis is model identifying and analyzing 5competive forces such as competition, potential of new entrants into industry, power of suppliers, power of customers, and threat of substitute products. 5 force analysis used to determine corporate strategy for companies in getting profitability and attractiveness.

POTENTIAL ENTRANTS: New entrants are not a strong competitive pressure for the soft drink industry. Coca-Cola and Pepsi Co dominate the industry with their strong brand name and great distribution channels. In addition, the soft-drink industry is fully saturated and growth is small. This makes it very difficult for new, unknown entrants to start competing against the existing firms.

Another barrier to entry is the high fixed costs for warehouses, trucks, and labour, and economies of scale. New entrants cannot compete in price without economies of scale. These high capital requirements and market saturation make it extremely difficult for companies to enter the soft drink industry therefore new entrants are not a strong competitive force. Capital requirements for producing, promoting, and establishing a new soft drink traditionally have been viewed as extremely high. According to industry experts, this makes the likelihood of potential entry by new players quite low, except perhaps in much localized situations that matter little to Coke or Pepsi. Yet, while this view may reflect conventional wisdom, some industry observers question whether a new time is coming, with 'new age' beverages selling to wellinformed and health-informed and health-conscious consumers. This issue was beginning to grab the attention of both Coke and Pepsi in the summer of 1992, when they both were not able to explain a drop in their June 1992 sales. SUBSTITUTES: Numerous beverages are available as substitutes for soft drinks. Citrus beverages and fruit juices are the more popular substitutes. Availability of shelf space in retail stores as well as advertising and promotion traditionally has had a significant effect on beverage purchasing behaviour. Overall total liquid consumption in the United States in 1991 included Coca-Cola's 10% share of all liquid consumption. For years the story in the non-alcoholic sector centred on the power struggle between Coke and Pepsi. But as the pop fight has topped out, the industry's giants have begun relying on new product flavours and looking to noncarbonated beverages for growth.

Substitute products are those competitors that are not in the soft drink industry. Such substitutes for Coca-Cola products are bottled water, sports drinks, coffee, and tea, juices etc. Bottled water and sports drinks are increasingly popular with the trend to be a more health conscious consumer. There are progressively more varieties in the water and sports drinks that appeal to different consumer's tastes, but also appear healthier than soft drinks.

In addition, coffee and tea are competitive substitutes because they provide caffeine. The consumers who purchase a lot of soft drinks may substitute coffee if they want to keep the caffeine and lose the sugar and carbonation.

Blended coffees are also becoming popular with the increasing number of Starbucks, Barista and CCD stores that offer many different flavours to appeal to all consumer markets. It is also cheap for consumers to switch to these substitutes making the threat of substitute products very strong (Datamonitor, 2005).

The growth rate has been recently criticized due to the market saturation of soft drinks. Datamonitor (2005) stated, Looking ahead, despite solid growth in consumption, the global soft drinks market is expected to slightly decelerate, reflecting stagnation of market prices. The change attributed to the other growing sectors of the non-alcoholic industry including tea & coffee is 11.8% and bottled water is 9.3%. Sports drinks and energy drinks are also expected to increase in growth as competitors start adopting new product lines.

Profitability in the soft drink industry will remain rather solid, but market saturation has caused analysts to suspect a slight deceleration of growth in the industry (2005). Because of this, soft drink leaders are establishing themselves in alternative markets such as the snack, confections, bottled water, and sports drinks industries.

In order for soft drink companies to continue to grow and increase profits they will need to diversify their product offerings. So in order to compete with the substitutes industry, coca-cola has diversified from just carbonated drink industry to other substitute and so have other brands like Pepsi, Dr pepper/Snapple.
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BARGANING POWER OF BUYERS: Individual consumers are the ultimate buyers of soft drinks. However, Coke and Pepsi's real 'buyers' have been local bottlers who are franchised -or are owned, especially in the case of Coke- to bottle the companies' products and to whom each company sells its patented syrups or concentrates. While Coke and Pepsi issue their franchise, these bottlers are in effect the 'conduit' through which these international cola brands get to local consumers Through the early 1980's, Coke's domestic bottlers were typically independent family businesses deriving from franchises issued early in the century. Pepsi had a collection of similar franchises, plus a few large franchisees that owned many locations. Until 1980, Coke and Pepsi were somewhat restricted in owning bottling facilities, which was viewed as a restraint of free trade. Jimmy Carter, a Coke fan, changed that by signing legislation to allow soft-drink companies to own bottling companies or territories, plus upholding the territorial integrity of soft-drink franchises, shortly before he left office. Also, the three most important channels for soft drinks are supermarkets, fountain sales, and vending. In 1987, supermarkets accounted for about 40% of total U.S. soft drink industry sales, fountain sales represented about 25%, and vending accounted for approximately 13%. Other retailers represent the remaining percentage. While both Coca-Cola and Pepsi distribute their bottled soft drinks through a network of bottling companies, Coca-Cola uses its own network of wholesalers for their fountain syrup distribution, and Pepsi distributes its fountain syrup through its bottlers. BARGANING POWER SUPPLIERS: The principal raw material used by the soft-drink industry in the United States is high fructose corn syrup, a form of sugar, which is available from numerous domestic sources. The principal raw material used by the soft-drink industry outside the United States is sucrose. It likewise is available from numerous sources. Another raw material increasingly used by the soft-drink industry is aspartame, a sweetening agent used in low-calorie soft-drink products. Until January 1993, aspartame was available from
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just one source -the NutraSweet Company, a subsidiary of the Monsanto Company- in the United States due to its patent, which expired at the end of 1992. Coke managers have long held 'power' over sugar suppliers. They view the recently expired aspartame patents as only enhancing their power relative to suppliers. Globalization: 1. What is globalization: According to Hamilton, L and Webster, P (2009), globalization comprises the creation of linkages or interconnections between countries. It is considered as a process in which barriers (Physical, political, economic, cultural) separating different regions of the worlds are limited or canceled in order to stimulate exchanges, in services, workforce, money and so on. According to The Coca-Cola Company, in 1984 the Foundation was established in USA considered as charitable organization. Globalization helps Foundation to support student

scholarships and other education programs and initiatives, HIV/AIDS prevention as well as awareness programs in Africa and Latin America and so on. Therefore, Coca-cola company bring not only its popular and famous image in term of product and service, but also emotional and heart-to-heart picture to people in all over the all in general and customer of Coca-cola in particular. However, globalization also affects badly to Cocacola company itself. Globalization helps the company sell its carbonated drink in more than 200 countries and become popular in the world. However, The globalization of the Coca-Cola Company has created hatred and distain throughout the world. Many countries have tried to ban (Barlow, 2003; Zinn, 2002) the use of Coca-Cola products, claiming that Coca- Cola is threatening public health, aggressively pursuing youth in schools as potential new customers and to encouraging students to understand themselves principally as consumers rather than citizens. (Barlow, 2003; Zinn, 2002) The CocaCola Company faces accusations of privatizing water supplies in Chiapas, Mexico, undermining workers rights in Central and South America by threatening union

organizers with death, using sweatshop child labor and failing to provide adequate healthcare benefits to workers with AIDS in South Africa. (Barlow, 2003; Zinn, 2002)

Competitive `Environment Q1: Measure of industry concentration of CR3 is measured by taking the total share of 3 largest companies in industry sales. For example, A, B and C are 3 largest firms in their field, so the calculation for CR3 is CR3 = Market share of A + Market share of B + Market share of C. Measure of industry concentration of CR5 is measured by taking the total share of 5 largest companies in industry sales. For example, A, B, C, D and E are 5 largest firms in their field, so the calculation for CR5 is CR5 = Market share of A + Market share of B + Market share of C + Market share of D + Market share of E. None of them is appropriate for Cocacola situation as well because in beverage market in worldwide, there are 3 largest firms in market share which are Pepsi (31%) and Coca-cola is (43%) and Dr.P/7 Up (15%), therefore, the measure of industry concentration of CR 2 is CR 2 = Market share of Pepsi + Market share of Coca cola +Market share of Dr.P/7 = 31% + 43%+15% = 89%. Q2: According to Dwivedi, D.N, oligopoly is considered as an industry where there are few

companies involve, therefore, those few companies depend not only on their own policies but each other. Those firms in oligopoly can utilize both low and high price strategy to maximize their profit. According to Economic Discusstion (2012), Coca-cocla is in oligopoly market with Pepsi because both of them possess most of the US market share in soft drink industry, that also reassures that on the list of top beverage company position, Coca-cola co takes a lead, the runners is Pepsi co. Moreover, the products Coca-cola and Pepsi are selling is homogeneous products, so they can easily change the price to be compatible with kinked demand curve, that is the reason why both of firms are always on the top selling on their products. For instance, according to Christ, G (2011), in 2010 Coke sold 1.59 billion cases for 17% of market share. Diet coke sold 926.9 million cases for 9.9 percent of market share, and Pepsi sold 891.5 million cases for 9.5 % of market share; and they are on the top of sale from top 10 list of beverage industry.
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Chris, G (2011) mentions that Cocacola and Pepsy both use low and high price strategy as repeated action at the same time to keep the market share from the assaulting of new competitors and maximize the profit. For instance, according to Singh, P and Delhi, N (2012) when summer comes, this is the time for Coca and Pepsi increase the price of 600 ml PET bottles because summer is the time for top sales, possessing about 30-40 percent of their annual sales. Cocacola and Pepsy have also signed cartel contract in order to let the new potential competitors not enter to the abundant beverage market of them. For example, Coke and PepsiCo have proposed franchisee agreements with their existing bottles manufacture in certain area and own an amount of percent of bottling companies. Therefore, new rivals fall uneasy task for purchasing bottles from manufactures readily to distribute for them. Q3: Threat of new entrant According to The Coca-Cola Company, Coca-cola owns more than 500 beverage brands inclusive of over 3,500 beverages ranging from full, reduced, and no-calorie sparkling beverages to energy drinks, teas, fruit drinks, water and so on. Moreover, there are different sizes in various products in order to be compatible with customer demand. For instance, in US Cocacola produced the 8-ounce, 100-calorie aluminum cans of Coca-cola, Cherry Coke and Sprite in 2007 or Coca-cola mini cans in 2009. Therefore, the product differentiation is high in Cocacola leading the threat of new entrant is very low because it is difficult challenge for new entrants to enter the market with an amount of different product to attract customers. Brand identification of Coca-cola is very high because it possesses the most market share of beverage drink market. Facebook more than 57 likes Financial Q1 Bronfenbrenner and Holzman (1963, p.599) defies Inflation is a condition of generalized excess demand, in which too much money chases too few goods, therefore, inflation affects everybody and it poses a threat to the economic stability of a nation.
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Inflation has large impact for Coca-Cola business on beverage market because inflation causes the increase of material cost and supplies cost, and leads to different consequences as well. For instance, when price of aluminum increases because its suppliers have abundant firms want to do business with them, Coca-cola must eventually pay high cost for suppliers for maintaining the suppliers. Therefore, in order to compensate for the extra cost and get profit, the firm

consequently increases the price all kind of products as well. However, in some situations that when customers must pay for higher price to consume Coca-cola drinks, they eventually spend less money for another substitute they want to enjoy. As a consequence, they must reduce expense for Coca-cola products to meet their demands with another products, that will cause the lower revenue of Cocacola as well. Eventually, the company must lay off the employees or reduce their salary to cover for the loss of profit. Therefore, it can be said that inflation is the factor for success or failure of the company and it cannot be avoidable in market. Exchange rate also influence to Coca-Cola business in America because it bring not only advantage in international competiveness for the firm, but drawbacks as well. For instance, assuming that the Coca-cola company in US produces an amount of concentrate which is 1 million dollar, and then sells to licensed Coca-cola bottlers in UK with the price after exchanging (1 dollar = 0.7 (0.75 euroo)pound in 20 January, 2013) that is 700,000 pound. If the exchange rate of dollar increase 10% comparing with dollar (1 dollar = 0.63 pound), Cocacola obviously gets profit of 70,000 pound, however, Cocacola products is consumed less in UK market because the price of the products is more expensive than real value when translated back to UK currency. Therefore, it can be said that exchange rate changes happens accidentally and has effect on Cocacola business which is why the company should choose the right time with the right partner to do business. Q2: Financial and economic crisis effect, effect on company According to Investopedia, economic crisis is considered as a circumstance when the value of assets and financial firms decreased rapidly. Economy In Crisis (2012) mentions that economic has effects on USA remarkably. Firstly, inflation is turning to job-destroy deflation that is unable to employ all US people wanting job at that time. Secondly, interest rates are as low as it was at post-World War 2 leading to lack of investment. Thirdly, Federal debt as a percent of

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GDP will soon hit levels last experienced immediately after World War II (121 percent of GDP in 1941). Financial and economic crisis have large effect on Coca-cola company. Firstly, because

unemployment rate is high in America when economic crisis occurred, people would not spend money for unnecessary products like Coca-cola soft drink for their essential standard, but focus on food to live. Secondly, interest rate in USA was down, American people tried to invest all money to bank for the purpose of getting more profit as much, which leads their spending on products such as Coca-cola to decrease as consequence. Q3 International Deposit Interest Rates Exchange explains that Interest Rate refers to a specified amount of money paid by institutions on the use of cash deposits over a period of time. The Interest Rate also consists of the amount of money a borrower will pay a lender for the use of their funds over a period of time. Hamilton, L and Webster (2009) explains that when interest rate increase, cost of borrowing to business also increases, which depress the demand of products and services.

When interest rates in America changes, it affect strongly on Coca-cola firm borrowing in USA because of the fact that Coca-cola always frequently take out long-term debt for infrastructure, advertisement and other different project as well. Therefore, the higher the interest rate are, the more cost the company will take from debt so that businesses of Coca-cola cannot commit the funds to projects plans as well. Moreover, Coca-cola firm also has short-term load to cover for shortfall in small expenses, so higher the interest rate, the more money the company must pay back to lenders as well. Interest rate also affects on business strategy of Cocacola firm in USA. Assuming that Cocacola is planning to construct a entertainment building for children with total capital 10 million USA, and the profit this construction can bring to Coca-cola is 5% per year better than 4% interest if capital is put to bank. However, the interest rate of USD increase as 6% in 2013, therefore, it makes the company consider on return on investment and put the capital for the construction instead of carrying it out.

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Finally, interest rate also affect investment to Coca-cola so that when the company sells the stock publicly to increase capital, share price is bounded to companys stock, however, the interest rate suddenly increases more than the dividend from share for investors, interesting level and demand of investors for Coca-cola share is down and they eventually have tendency to put the money to banks because guarantees for higher interest rate makes investors attractive and secure instead of investing on share with lower interest. It can be assured that interest rate affects on every business plans of Coca-cola Company, so the company should consider and analyze projects with the best strategy in finance to avoid barriers coming from interest rate. Ecological 1. How might global warming and climate change impact on your organization or industry According to Maslin, M (2007), global warming happens because of the massive increase in greenhouse gases such as carbon dioxide that we are creating in atmosphere from trashes, contaminated emission from companies and so on makes the world become hotter and hotter. Global warming and climate change have effects on the Coca-cola Company in good and bad sides. In aspect of good sides, when climate is becoming warmer, temperature is also high in summer in USA and other countries, soft drink eventually becomes main consumption for customers to fresh themselves before the hotness. Therefore, bottled water products in Cocacola can make profit from that and leads the sale of the company to soar rapidly. In aspect of bad sides, Hamilton, L and Webster, P(2009) explain that global warming and climate change caused by green-house gas from anthropogenic sources is carbon dioxin (CO2), and Coca-cola and other companies must be responsible 40% for this emission which will contaminate the water as well. Therefore, it is easy for company to create unqualified products from polluted water unless the company must pay an amount of money for testing water quality and follow the governmental policies of green-house emission concerns in order to create qualified products to customers. Moreover, when green-house emission happens, an amount of people get diseases related to respiration or they become more suspicious about Coca-cola drinks which can be made from contaminated water as well.
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It can be concluded that global warming and climate change has influential impact for business of Cocacola in both positive and negative sides. Therefore, the company should take advantage for good sides such as increasing quantity of products in summers to maximize profits or limiting CO2 emissions and following the policies for green house emission to protect customer vitality and create their beliefs and loyalty. 2. Kyoto protocol (1997) According to United Nations Framework Convention on Climate Change, Kyoto Protocol is considered as an international agreement linked to the United Nations Framework Convention on Climate Change. According to Global Climate Change Research Area (1997), it proposed 5 key provisions to protect environment. Firstly, Kyoto Protocol has purpose to cut enormous greenhouse gas emissions from USA, Croatia, Australia, Iceland and so on at least 5% from year 2008 to 2012. Secondly, USA suggested that all countries having high percentage of emission may set voluntary reduction targets rather than voluntarily agreeing to binding limits. Thirdly, Kyoto Protocol will be carried out for signature in March 1998 and March 1999 to create force for 55 Parties to the Convention, comprising parties that reduced at least 55 percent of CO2 emission in 1990. Fourthly, the next meeting of the treaty parties will choose the most appropriate to deal with non-compliance. Finally, Kyoto Protocol supports several kinds of flexibility to achieve reductions, but the specific factors about scope, principle and implementation have not been defined. Kyoto protocol provisions have impact for Cocacola Company in USA because those provision helps the company know the voluntary reduction target at least 5% for green-house gas emissions from 2008 to 2012. Moreover, Cocacola company must implement those provision seriously under the control of USA so that if the company cannot follow provisions, it will be pubnished by American Government Policies. However, flexibilities made from Kyoto Protocol details of scope, principle and implementation is not defied, so it is difficult for Coca-cola firm complete it on the right track.

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Legal Q1.Health and Safety laws affect organization Longman Dictionary of Contemporary English mentions that Health and safety at Work Act is a set of laws made in the UK in 1974 in order to protect people at work and make sure that they do not have to work in dangerous conditions, without the proper clothing or safety equipment etc. According to The Coca-Cola Company, Coca-cola company follows the Health and Safety laws of USA through creating The Coca-Cola Safety Management System or TCCSMS. This safety management system recognizes and reduces the risks in operation and controls it effective to create safety to visitors and workers as well. However, in order to implement Health and Safety law, the company needs to pay a quite bit expense to provide safe machinery and premises as well as protective devices for employees. Some costs are also added for training employees how to use machinery and premises safely, maintaining machinery and premises, and especially paying compensation for employee and visitors injuries as well. In another the aspect, the result for implementing Health and Safety will eventually leads the company to achieve good records that will make breakthrough in its reputation. Based on that, the company can create the beliefs for current workers working in Coca-cola and attracting recruitment for good worker as well. It is concluded that Health and Safety laws has impact on Coca-cola because it makes the company waste money in order to put these laws into operation, however, based on this implementation, the company can get benefits such as creating beliefs to workers or reputations for company as well. Q2. Bribery and corruption can have damaging effects on international trade. What are some of the national and international laws that are most relevant in this area. According to The Coca-Cola Company, it applies Code of Business Conduct and Anti-Bribery Policy to provide leading on how to approach business fairly, ethically and legally. For example, the company conducts anti-bribery audits to increase the overall awareness, detect prospect misconduct and control compliance with anti-corruption laws and Coca-cola policy. Moreover, after becoming signatory of United Nations Global Compact, the company follows the laws of
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UNGC and cooperates with other firms and nongovernmental organizations to combat against corruption. Coca-cola Company mentions that, the company also became signatory of World Economic Forum Partnering Against Corruption Initiative (PACI) and it has been following the principles and policy of PACI in order to fight against the corruption.

Social-cultural environment Q1. Choose one of the social cuture According to Publish your article, social-cutural environment is considered as a collection of
social factors affecting a business and includes social traditions, values and beliefs, level of literacy and education, the ethical standards and state of society, the extent of social stratification, conflict and cohesiveness, and so forth.

According to Neusner (2009), most of American people are religious and they considered God is the most believable majesty is their life. Therefore, even though what happens in their life, they eventually pray and request Gods salvation as well. Most of American people are Christian and they often go to church every week for praying and sometimes organize baptism events for their children as well. Forbes, B. D and Mahan, J. H( 2005), Coca-Cola Company considers its business as a religious duty through let religious influence be entered to customer lives. For instance, Coca-cola brought to customers its religious and orthodox image of Santa Claus in 1931 through displaying a fat, beaded, attractive old character decorated up in Coca-cola Red. It became the most influential symbol for life intention of America soldiers in World War 2, and represented for the most sacred time after wars. Therefore, Coca-coca becomes the most popular soft drink for all Christian people in American, that is reason why Coca-cola is always on the top sale and has the number one position on beverage market in USA. Forbes, B. D and Mahan, J.H (2005) also mentions that there are some skeptic ideas justifying that Cocacola is not a religion but a products that are effectively advertised, marketed and distributed to customers. However, at the fact that advertising is becoming the new religion of
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modern capitalist society, and fetish becomes important point for Coca-cola to influence customers spirit through symbol of coca-cola design. In the aspect of organization inside, it is easy to employee and managers to work and sympathize together when all of them have the same religion that is Christian, therefore, even though what problems happens, arguments and quarrels are always eliminated to have good solution as God teaching. Finally, it can be concluded that there is no right and wrong aspects of Coca-Cola to customers and employees because it uses the right strategy at the right place and culture. Even though Coca-cola makes the blind faith in God through its products, it brings the best quality and service to customers with happiness when drinking Coca-cola.

Q2: Increase of urbanization According to Long (1998), urbanization is considered as the process by which large numbers of people become permanently concentrated in relatively small areas, forming cities. Natural increase of urbanization can happens if natural population growth in the cities ans higher than in the rural area. According to U.S. Environmental Protection Agency, the total part of land in USA that will be improved and decorated into cities and it is considered to increase from 5.2 percent to 9.2 percent before year 2035 because of urbanization in its country. Rural people migrate to cities because they want to change his life and settle down with better job or they are desired by modernization of metropolitan life. Therefore, Coca-cola can take advantage to recruit an amount of workforce with small salary but satisfy them because they are received fully welfares they want to have when migrating to cities such as salary better than rural area, good workplace, protective assurance in working, reward, training (education) and so on, that makes they feel their dream come true. Eventually, they will work for Coca-cola harder than urban or current employees so that they leads the productivity increases so much. Moreover, when people migrates to cities in American, they obviously have jobs with better payment and welfare so that their standard of life is in higher level comparing to their previous life, therefore, they can consume basic needs like
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food and drink as well; therefore, Coca-cola can sell an amount of products to this new customer target as well to increase the revenue. However, disadvantage of migration also exists for Coca-cola Company because the company must expense remarkably an amount of money and time to training from beginning for rural people before they are applied to work. Moreover, control an amount of employee having experience in work becomes difficult tasks for managers, therefore, it is reasonable if managers put managers into right workplace to make them maximize their work as well. It can be concluded that urbanization affects Coca-cola on 2 sides which are positive and negative ways, but the company itself should maximize the good ways and minimize the bad ways to lead the company to have high sale on beverage market. Q3: Demographic changes According to Smithsonian (2010), the United States is also expected to grow somewhat older. The portion of the population in 2010 at least 65 years old13 percentis expected to reach about 20 percent by 2050. However, even as the baby boomers age, the population of working and young people is also expected to keep rising, in contrast to most other advanced nations because Americas relatively high fertility rate 50%. Between 2000 and 2050, census data suggest, the U.S. 15-to-64 age group is expected to grow 42 percent. the United States is likely to have more than 350 million people under 65 with the next 4 decades. Migration is becoming the main force in US life because it is estimated that 2 million people a year will move from poorer to developed countries, and half of those mostly is educated, skilled migrants will move to America in the next 40 years to settle down. Those demographic changes have remarkable effects on Coca-cola business. Firstly, when baby boomer age will increase 20% by 2050 from 13% in 2010, they will tend to be more worried their health and longevity so they will not consume beverage drink of Coca-cola containing unsuitable components for their health as well. However, 42% growth of US 15 to 64 group

leading to have more than 350 million people under 65 age in the next 4 decades creates an impact for Cocacola sale because the company can take advantage to sell out an amount of products serving for young and working people who have high demand for beverage drink.
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Finally, the increase of migration not only helps the company have new target customers to sell products, but the company can recruit skilled and educated people from them because in 2000, US was home of 12.5 million skilled immigrants, and large American Companies are increasingly lead by people with roots in foreign countries, including 15 of the Fortune 100 CEOs in 2007.

TECHNOLOGY 1. New technology is a source of opportunities and of threats and challenges in business. Illustrate this statement with example and illustration based on your chosen organization and industry. Food Safety and Inspection Service defined new technology as new or, new applications of, equipment, substances, methods, processes, or procedures affecting the slaughter of livestock and poultry or processing of meat, poultry, or egg products. According to Coca-Cola Company, Coca-cola Company has improved and experimented beverage process water recovery system in order to manufacture qualified water that satisfies or goes over the drinking water standards for utilizing in non-product operations such as bottle washing or clean-in-place. This technology brings a lot of opportunities for the company in business and economics. For instance, Coca-cola company in US can not only develop water utilization efficiency to 35%, but also support for economic increase opportunity and local communities. Moreover, this system also economizes 100 billion water liters annually if it is applied to all bottling plants. Along with opportunities, there are threats in setting up beverage process water recovery system. It is likely difficult to implement this system with investment in North America or Europe because of the existence of strict regulations and standards in those area. Moreover, the company must take the highest responsibility for customer health when implementing this water recovery system, therefore, it unintentionally creates pressure for Coca-Cola company to create this system completely perfect.

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2. In relation to your chosen organization, and industry sectors, explain what is meant by the following terms: e-business, e-commerce, b2b and b2c Investorworld proves that e-commerce is the buying and selling of products and services through electronic transaction on internet and so on. E-commerce is separated into 3 categories that are business to business(B2B), business to customer (B2C) and customer to customer(C2C). However, in Coca-cola firm, B2B and B2C is mostly used in the whole business transaction as well. B2B is a transaction happening between a firm and another firm without any third party such as consumer or so on. The Coca-cola firms entrepreneur is owning an amount of retailers and 300 bottling partners from international traded business to small, family owned operations; and is owning, leasing and implementing 500 plants all over the world in all over the world. Therefore, it is necessarily needed to implement B2B through internet to have strong relationship with partners, plants, wholesalers and retailers and have easy interaction about the price, the number of materials, finished products needed to be delivered and so on to them. B2C is a transaction happening between a firm and a consumer and B2C is opposite to B2B as well. Cocacola company is implementing 2 kind of search engines for B2C that are crawler based search engine such as Google and human powered directories such as Yahoo. Therefore, customer can search information and price of Coca-cola through Google, Yahoo and other website so that they can have an amount of links concerned to Cocacola in order to make online transaction or know exactly what kind of products they will buy. Moreover, Cocacola firm also created online advertisements through social network website such as Myspace, Facebook and Twitter to affect its image to social life of customers. Therefore, customer can easily suggest positive and negative ideas about Coca-cola products and service as well publicly to the firm in order to help Cocacola co improve its mistakes quickly and have new step-up improvement in the future. Coca-cola adopts different kinds of electronic internet transfers payment for B2B and B2C such as Visa, MasterCard, American Express, Discover, Paypal and so on through its encryption secure website in order to make customer feel convenient and happy for their payment as well.

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3. New materials affect Cocacola According to Coca-cola Company, in 2009 the company implements new material that is PlantBottle package, the first recyclable Pet plastic bottle made from plant. This new material creates an impact for Coca-cola company because PlantBottle is fully recyclable Pet (polyethylene terephthalate), the company use less fossil fuel for making these bottle, which is why Coca-colas dependence is reduced on non- renewable resources. Furthermore, PlantBottle package is considered to be friendly with environment, which creates unforgettable image for customers when using Coca-cola products, so the revenue will crease because existing of PlantBottle package. In 2007, Coca-cola company produced the Drink2Wear fashion made from recycle plastic bottles, and the main product is Drink2Wear T-shirts featured with slogan such as Make your Plastic Fantastic or Rehash Your Trash. In 2008, the company widened product ranges to comprise totes, loungewear, and caps. Those products have effect for the company by having sale of more than 1 million products, resulting in more than $15 million in retail sales. Furthermore, the company also saves the cost of 5 million PET bottles by reusing and diverting them from its waste stream. Finally, the higher the fashion sale, the more people know about coca-cola because Drink2Wear fashion indirectly advertise the Coca-cola to all people through Coca-cola logo attached on the clothes. Assuming that the company will implement new food product mixing with Coca-cola soft drink into market, which will specially have impact for Coca-cola company. Firstly, those new

products will attract an amount of customers who are curious and ready to try new food products from famous firm like Coca-cola. Moreover, creation of new food products will create

breakthrough in market and can lead the company to have competitive advantage when comparing with Pepsi and others in term of food and beverage.

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