Coca Cola Case Study Flashcards
Where is Coca Cola’s HQ?
Atlanta, Georgia. USA.
What percentage of their sales occur outside of the North America?
70%
How large is the company and to what extent on a global scale?
It has 139,600 associates around the world, with 50 percent of them outside the U.S.
What are their positive social influences?
Coca Cola offer training and education.
Coca Cola runs some community schemes in Africa and South East Asia.
One of Coke’s microfinance start up schemes provide 4000 Vietnamese women with the merchandise, training and basic equipment to begin selling Coca Cola.
What are their negative social influences?
Environmental regulations are often less strict in LEDC’s.
Working conditions in some factories are harsh. Employees get very few benefits and there are unlikely to be any unions.
Depletion of the local ground water table due to the utilisation of natural water resources by the company poses a serious threat to many communities. In March 2004, local officials in Kerala, India shut down a $16 million Coke bottling plant blamed for a drastic decline in both quantity and quality of water available to local farmers and villagers.
What are their positive economic influences?
Creates jobs both directly and indirectly in the host country.
Many of the bottling firms are local companies so all the profit stays in the host country.
Coca Cola has invested $1.5 billion in the Russian Economy; this includes training, the construction of manufacturing plants and improvements to infrastructure.
What are their negative economic influences?
In some LEDCS they work long hours for very little pay.
Profits are returned to the shareholders, very little of the money remains in the host countries.
TNCs are very powerful; if they are not happy with the economic conditions within the host country they will pull out leaving people unemployed.
