Coca-Cola - Case study of a TNC

Question 1

Who are Coca-Cola?

Answer 1

• American company who produces and markets non-alcoholic beverages.
• Set up in 1886.

Question 2

The size and Scale of Coca-Cola’s operation:

Answer 2

• 1.9 billion products consumed globally.
• Brand value of $79.21 billion
• Generate $45 billion per year.
• Employ 700,000 worldwide.

Question 3

Coca-cola’s spatial organisation:

Answer 3

• All drink syrups produced in USA.
• Have bottling franchises across the world, who have exclusive contract to bottle and sell products.
• Have 900 bottling and manufacturing plants.
• Coca-Cola owns % share in these companies.
• In USA do not have bottlers they do all and sell directly to wholesalers.

Question 4

Linkages/ integration with other products?

Answer 4

• Own multiple coke brands such as Diet Coke.
• Own 500 separate brands with 4000 products on offer.
• Horizontally integrated to own drinks brands such as Fanta, sprite, Smartwater etc.
• Over 21 of these generate $1 billion + annually.

Question 5

Coca-cola sales and marketing?

Answer 5

• 15.4% of Coca-cola products sold in the USA - 154 litres per capita.
• 30 year advertising is reasons Santa now wears red.
• Mexico consume most at 728 cans per capita.
• India + China consume 50 cans per capita between them. Currently trying to expand.

Question 6

Benefits Coca-cola brings to host countries?

Answer 6

1. Coca-cola foundation awards grants to companies across the world with focus on social and environmental sustainability.
2. Provide massive employment opportunities in LICs.
3. Franchises means lots of profits stay in the local economy.
4. Large investment into LICs drives economic opportunities.

Question 7

Negatives Coca-cola brings to host countries?

Answer 7

1. Huge links to obesity with over-consumption.
2. Large percentage of the profits are still returned to the USA depending on their share in the bottler.
3. Huge water consumption which exhausts and pollutes local supplies.