Case Study: Globalization

CASE STUDY: GLOBALIZATION
DIPLOMA IN BUSINESS MANAGEMENT

AB101
INTERNATIONAL BUSINESS
PBS3233
NAME: FATIN IZZATI BINTI SAPRUDDIN

ID NUMBER: PTM180722054/BGJ180210281
SECTION: AB6.59
NAME OF LECTURER: PUAN RAHILA BINTI ABU BAKAR
1
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Table of Content
1.0 DEFINE GLOBALIZATION.........................................................................................................3
2.0 HOW HAS THE GLOBALIZATION OF MARKETS BENEFITED COCA-COLA?..............4
3.0 DISCUSS ANY TWO FACTORS THAT INFLUENCE THE DECISION AND POLICY OF
COCA-COLA?..........................................................................................................................................6
REFERENCES..........................................................................................................................................8
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1.0 DEFINE GLOBALIZATION
Globalization is the process of increased political, social, and economic
interaction and integration among people, organizations, and governments. The concept
of globalization has been very vital for the Coca-Cola Company as it has enabled the
expansion of their business in various countries around the world.
Globalization is the spread of products, technology, information, and jobs across
national borders and cultures. In economic terms, it describes an interdependence of
nations around the globe fostered through free trade (CAROL M. KOPP, 2020).
Globalization has created new jobs and economic growth through the cross-border flow
of goods, capital, and labor. On the other hand, this growth and job creation is not
distributed evenly across industries or countries. Specific industries in certain countries,
such as textile manufacturing in the U.S. or corn farming in Mexico, have suffered
severe disruption or outright collapse as a result of increased international competition.
Globalization means the speedup of movements and exchanges (of human
beings, goods, and services, capital, technologies or cultural practices) all over the
planet. One of the effects of globalization is that it promotes and increases interactions
between different regions and populations around the globe.
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2.0 HOW HAS THE GLOBALIZATION OF MARKETS BENEFITED COCA-COLA?
As a result of globalization, the company operates in over 200 countries around
the globe serving millions of customers. Stakeholder is defined as a person, a group or
an organization with a direct or indirect interest in a company and that can be affected
by the company’s decisions or policies (Ebert & Griffin, 2017). The major stakeholders
of Coca-Cola include customers, employees, suppliers, and community – which are all
impacted by globalization in both negative and positive ways.
Globalization has played a significant role among the customers of Coca-Cola by
ensuring that the company’s products are always available at the right time and most
convenient places (Katerina & Aneta, 2014). This is due to the fact as a result of
globalization the company has been able to open several branches around the world to
ensure that their customers get access to their most favorite company product
irrespective of their physical location.
Globalization has also led to increased competition, which is associated with
reduced prices for customers as several companies aim to gain competitive advantage.
Globalization has enhanced interconnection between the company, which has enabled
the customers to have a say on how the product should be designed according to their
tastes and preferences. It has also led to the integration of technology, which has
enabled the customers to search the web for more details about the Coca-Cola
4
products thus has enhanced their decision-making process (Milovanović Barac,
Andjelković, 2009).
Coca- Cola, like many successful global companies, focuses on those regions
with the greatest potential for growth. Coke started branching out internationally in the
1920s but really began its global expansion in the 1980s. This is when Coke
implemented its strategic plan to gain entry into untapped, previously hostile, or
undeveloped environments. Let's look at Coke's gradual geographical expansion, then
we will address what strategies Coke implements when it wants to capitalize on a new
market.
The globalization make Coca-Cola started with widening its production, primarily
bottling facilities, in friendly areas like Guam and Europe. As people became more
familiar with Coke's products, the company decided to expand to Australia, Austria, Italy,
Norway, and South Africa. These were the areas that had good relationships with the
United States, which meant implementing trade, transportation, and communications
networks went a lot smoother (Beth Loy,2017).
5
3.0 DISCUSS ANY TWO FACTORS THAT INFLUENCE THE DECISION AND POLICY
OF COCA-COLA?
First factor that influence the decision and policy of Coca-Cola is social. Since
the 90s, the pursuit for a healthier lifestyle has become more prominent within most
households. The health concerns towards obesity fueled by sugar and carbonated
drinks has been one of the most important social change that has directly affected
Coca-Cola. It shows that the amount of soft drinks consumption in the US has steadily
declined during the past 20 years, with sports drinks and especially bottled water
experiencing an increase during the same period. Other additional factors that greatly
impact Coca-Cola are demographic changes, changing family values and family
patterns, media perception of the brand and health and welfare of target customer.
Second factor that influence the decision and policy of Coca-Cola is
Technological. The machinery belonging to Coca-Cola is essential in the production of
their products. So, it is clear that efficient and productive a machine is vital for the
success of the company. New machinery will always be designed with the idea of better
quality products with high quantitates. The factories in Britain will contain the best
machineries to ensure that their products are delivered in mass. Constant changes
product requirements can force companies to alter their machinery also.
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Other technological needs include promotion of their products. Coca-Cola and
most other companies are now using social media to help run a cheaper and possibly
more effective advertisements but also to connect with their customers. A notable
advertisement was their name campaign, this proved to be very successful, and
customers would line up to take photos of bottles with their name on it. However, this
campaign may have not been as successful without the use of social media, websites
such as twitter and Facebook helped encourage the sales of the company as it was
trending during that period.
7
REFERENCES
https://www.investopedia.com/terms/g/globalization.asp
https://youmatter.world/en/definition/definitions-globalization-definition-benefits-
effects-examples/
https://www.ukessays.com/essays/business-strategy/coca-cola-external-internal-
9988.php#:~:text=The%20following%20are%20key%20factors,in%20domestic
%20or%20foreign%20authorities.
8
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CASE STUDY: GLOBALIZATION

DIPLOMA IN BUSINESS MANAGEMENT

NAME: FATIN IZZATI BINTI SAPRUDDIN

NAME OF LECTURER: PUAN RAHILA BINTI ABU BAKAR

Globalization is the process of increased political, social, and economic

expansion of their business in various countries around the world.

Globalization is the spread of products, technology, information, and jobs across

national borders and cultures. In economic terms, it describes an interdependence of

distributed evenly across industries or countries. Specific industries in certain countries,

severe disruption or outright collapse as a result of increased international competition.

Globalization means the speedup of movements and exchanges (of human

between different regions and populations around the globe.

As a result of globalization, the company operates in over 200 countries around

the globe serving millions of customers. Stakeholder is defined as a person, a group or

impacted by globalization in both negative and positive ways.

Globalization has played a significant role among the customers of Coca-Cola by

irrespective of their physical location.

Globalization has also led to increased competition, which is associated with

undeveloped environments. Let's look at Coke's gradual geographical expansion, then

United States, which meant implementing trade, transportation, and communications

networks went a lot smoother (Beth Loy,2017).

Second factor that influence the decision and policy of Coca-Cola is

Technological. The machinery belonging to Coca-Cola is essential in the production of

product requirements can force companies to alter their machinery also.

trending during that period.

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