In the present times that the concept of globalization has increased in many places, it has resulted in many benefits such as the expansion of markets for various multinational organizations among other benefits. However, it has also come with challenges that firms that venture in such international markets have to overcome to realize their business goals and ambitions. This paper analyses the various factors that affect the coca-cola company based in Atlanta, Georgia and Saudi- Arabia as a foreign country that they operate in and how the factors affect management operational in the country.
In a comparison between the two nations that Coca-Cola operates in, it experiences the different business environment. For example, the macroeconomic conditions in the US differ with that of Saudi Arabia and hence in the US the company experiences a stronger macroeconomic condition such as stronger GDP, lower inflation rates, higher employment rates, and investment among others. It thus provides a favorable environment for business that the company can make more profit and operate its business without much challenge (O'Sullivan, 2010). The political environment is also stable in the US when compared to Saudi Arabia that determines the expansion of such multinational companies. The regulatory authorities for the two countries also differ with strict regulations in Saudi Arabia as opposed to the United States where the principles of capitalism determine the market decisions with less interference from the state. Market forces of demand and supply determine the market. Cultural aspects also differ in the two countries where in the US there is a democracy and freedom for all the people but in Saudi, Arabia religion shapes most of the cultural aspects and social aspects of life. In the US, people socialize freely while in Saudi Arabia there are restrictions, especially in gender issues.
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The factors would affect the management operations as it would require designing specific approaches on the different market and region to meet the business goal n and objectives (Heinecke, 2011). For example, it would entail different marketing approaches in the two countries. It would also require conforming to the government regulations that determine the business such as tax and licensing fees that have to be incorporated in the operations processes. In some cases, it would require a customized option in to meet the business goals.
References
Heinecke, P. (2011). Success Factors of Regional Strategies for Multinational Corporations: Appropriate Degrees of Management Autonomy and Product Adaptation . Berlin: Physica-Verlag.
O'Sullivan, K. (2010). Strategic Intellectual Capital Management in Multinational Organizations: Sustainability and Successful Implications . Hershey, PA: Business Science Reference.
