Coca Cola - TNC

Question 1

Coca Cola Basic Facts

Answer 1

1.9 million products consumed per day
$31 billion in revenue per year
One of the most recognisable brands due to global marketing strategies such as brand awareness and keeping the same strategy.

Question 2

How has Coca Cola grown?

Answer 2

Global marketing strategies such as brand awareness and trademarking makes it one of the most recognised brand so commonly bought globally.

Expansionary investment into geographically new markets and use of worldwide acquisitions of local firms.

Question 3

Coca Cola outsourcing example

Answer 3

Often outsources work such as bottle factories to existing firms in the area rather than building a new factory.

Question 4

Benefits of Coca Cola - Social

Answer 4

5by20 scheme to empower 5 million female entrepreneurs by 2020.
Coca Cola foundation provides grants to companies around the world.
Creates large employment opportunities both directly and indirectly in related industries.

Question 5

Benefits of Coca Cola - Economic

Answer 5

Franchising and outsourcing means small bottle firms in LICs enjoy profits.
Investment in new markets drives economic growth - $2 billion in India since 2011.

Question 6

Benefits of Coca Cola - Environmental

Answer 6

Marketing network raises awareness of recycling.
Initiates sustainable agriculture schemes.
Replenishes water it uses by funding local projects.

Question 7

Negatives of Coca Cola - Social

Answer 7

Harsh working conditions in bottling plants.
Workers encouraged to abandon trade unions.
Millions spent to counter links to obesity - £5 million on European Hydration Institution.

Question 8

Negatives of Coca Cola - Economic

Answer 8

Long hours and low pay in bottling plants.
Majority of profits leave the host country to return to the USA.
Top-down decision making leaves small firms vulnerable to closure.

Question 9

Negatives of Coca Cola - Environmental

Answer 9

Exhaustion of water supplies - in 2012 Coca Cola used more than 25% of the worlds population.
Water pollution - Kerela, India, 2004

Question 10

What did Coca Cola do in Uraba, Columbia?

Answer 10

Owned a factory there despite on going civil war and location controlled by paramilitary.
Plant owners colluded with paramilitary to force workers to leave trade unions.