Case study: Global systems, Coca Cola

Question 1

What are the positive social impacts of Coca Cola?

Answer 1

• 5 by 20 scheme to get 5 million female entrepreneurs by 2020 in LDE
  > 6 million achieved

Question 2

what are the positive economic impacts of Coca Cola?

Answer 2

• by using a franchise to manufacture bottles, it allows those in the franchise plant to make a profit and invest in the local economy
  > directs investments
• investing in emerging markets
  > foreign direct investments
  > invested 2 billion in India since 2011

Question 3

what are the positive environmental impacts of Coca Cola?

Answer 3

• significant audience/marketing network
  > able to raise issues concerning environment/ recycling to a large amount of people
• rainwater harvesting in China to reduce water use
• has schemes to replenish the water used
• Coke has foundations which invests in environmental protection
• provides jobs for million around the world

Question 4

what are the negative social impacts of Coca Cola

Answer 4

• low pay and long working hours
  > in Columbia allegedly Coke was working with military groups to convince people to drop out of union memberships
• links between Coca Cola and obesity

Question 5

what are the negative economic impacts of Coca Cola?

Answer 5

• most of the money made abroad goes back to the headquarters not the regional headquarters/workers
  > not able to invest in the country
  > unequal flows of money
• franchises used is vulnerable to sudden closing due to top down approach
  > tata steel shutting plant down in Wales

Question 6

what are the negative environmental impact of Coca Cola?

Answer 6

• uses the same amount of water as 25% of the worlds population
• taking water from Kerala India
  > developing part of the world where water is a finite source
• water is often gathered from groundwater storage
  > may be polluted by pesticides due to run-off and leaching
  > 30x over the limit of pollutants in the EU

Question 7

What is the spatial organisation of Coca Cola?

Answer 7

• top down approach
  > headquarters in Atlanta Georgia
  > regional headquarters in other continents
• uses franchise system for bottling
  > often based in LIC

Question 8

What are the benefits of using franchises?

Answer 8

• removes company responsibility
  > any problems happening in the franchise not the fault of Coca Cola
  > problems such as employees not treating right/ working conditions, damage to environment,
• if a problem occurs it doesn’t damage the Coca Cola brand

Question 9

What is the value of Coca Cola?

Answer 9

• $32 billion in revenue in 2014
• brand value is $80 billion

Question 10

What is the market of Coca Cola?

Answer 10

• 40% of the market of soft drinks is by Coca Cola
• 94% of the world can recognise the logo
• 107.5 facebook followers

Question 11

How much Coke product is sold?

Answer 11

• 4,300 different products on sale
• 2.2 billion servings a day in 2024