Topic > Coca-Cola Brand Analysis - 2172

1. IntroductionCoca-Cola is the largest beverage company in the world, producing over 500 non-alcoholic products, with sales in more than 200 countries. As a result, Coca-Cola derives 80% of its revenue outside of the United States (Strategy+Business, 2011). Coca-Cola achieves this through its global network of owned or controlled bottling and distribution operations, as well as through independent bottling partners, distributors, wholesalers, and retailers (Coca-Cola, 2013). With approximately 1.9 billion Coca-Cola beverages consumed every day worldwide, Coca-Cola's brand and image are not only critical to its continued success, but are central to its global competitive strategy. While damage to any organization's image or brand is devastating, it is particularly so for companies that trade internationally (Werther and Chandler, 2005). Consequently, the organization must be acutely aware of the characteristics and ever-changing nature of the international environment in which it operates. This report analyzes the political, economic, ethical and cultural context in which Coca-Cola operates as it seeks to expand further into emerging markets.2. ResultsOrganizations take part in international business for a variety of reasons ranging from increasing sales, reducing risks to acquiring resources. While organizations can employ many strategies when entering foreign markets, they need to understand more than simply adapting their operations to the local environment. To be successful, organizations must understand social science aspects, such as political, economic, anthropological, social, and psychological, of their operating environment (Daniels et al., 2006). 2.1 Political organizations like Coca-Cola must operate in many different… middle of paper… nIt is easy to see why the Coca-Cola Corporation is so successful. In addition to having an instantly recognizable brand image globally, Coca-Cola's success comes from the way it conducts business internationally, and as a result, more than 80% of its revenue comes from outside the United States . In the early 2000s, when Coca-Cola's revenue from its developed markets began to flatten Coca-Cola's Early entry into major developing markets such as India and China was a key decision that led Coca-Cola to rank today as the third best company in the world. However, more recently, it is Coca-Cola's “glocal” approach to emerging markets, coupled with a very comprehensive corporate social responsibility program, that is fueling Coca-Cola's current success. Although very aware of its international environment, Coca-Cola's track record is not perfect and like many others it makes mistakes from time to time.