In recent years, Coca-Cola has engaged itself in international strategies that have allowed it to dominate in the global market. Campaigns such as "Taste the Feeling" have attracted consumers specifically the youth and this has contributed to the expansion of the firm's operations (Taylor, 2015). This company continues to introduce more product lines such as the minute maid and its corporate social responsibility has always been appropriate. Some of the variables that affect the operation of Coca-Cola in the international market are described below.
Employment Laws
This is an economic variable that continues to impact the operation of Coca-Cola. Laws such as Fair Labor Standards Act (FLSA) and Occupational Safety Health Act (OSHA) must be observed in several countries such as the United States of America and European nations (Jacobson & Brownell, 2000). The company must adhere to these laws to avoid penalties from the government , which has forced Coca-Cola to be more attentive to the working standards of its employees. Employment laws have impacted the development of the company in that the cost of productivity has been high. FLSA protects the rights of workers , and the company is forced to spend more capital on its production process (Jacobson & Brownell, 2000). OSHA is an employment law that has also forced the company to improve its working environment for protecting the health and safety of employees (Jacobson & Brownell, 2000).
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Customs, Norms and Values
In recent years, Coca-Cola has managed to develop marketing campaigns that have brought consumers together (Taylor, 2000). These campaigns target consumers from all cultural backgrounds across the globe (Taylor, 2015). Customers in the global market tend to have different customs, norms , and values. As a result, this company has been forced to develop a marketing campaign that targets these factors (Taylor, 2015). Reaching out to diverse cultures has made Coca-Cola a leading company in the beverage industry. An example of a cross-cultural marketing strategy that was used effectively was in 2013 when a group of actors were used to describe the beauty of America in more than 7 languages (Taylor, 2015). The message was convincing in those languages , which made the products of this company more appealing. Use of different languages allowed the message of the company to target people with different customs and values. In 2008, Coca-Cola managed to break through the South Korean market using social media due to the fact that the youth in the country are addicted to blogs (Taylor, 2015). Such strategies have allowed the company to continue dominating in the global market.
Tax Laws
This is a factor that affects the global operations of most companies. Operating in any country requires a business firm to adhere to all laws of the government particularly the tax laws. These are some of the requirements that tend to control the expansion of a company (Jacobson & Brownell, 2000). In the United States of America, Coca-Cola is required to follow tax laws concerning food products (Jacobson & Brownell, 2000). These tax laws favor the expansion of the company since they are not strict (Jacobson & Brownell, 2000 ).
New Energy Sources
This is a variable that has impacted the operation of Coca-Cola in that the company has been required to guarantee energy efficiency in its operations. As a result, the company has engaged in various activities that guarantee climate protection through the exploitation of new energy sources (Fearnside, 2004). Coca-Cola continues to focus on energy sources th at have fewer carbon emissions and this has improved the company’s efforts to protect the environment (Fearnside, 2004). Through the use of advanced technology, Coca-Cola has managed to use energy sources that allow a reduction of the gas that is emitted to the atmosphere (Fearnside, 2004 ) .
Use of energy sources with less gas emission has ensured that the company applies environmentally friendly sources in its operations (Fearnside, 2004). Th is effort of the company to protect the environment has made its p roducts more appealing to consumers. In North America, th e strategy has allowed Coca-Cola to create more employment opportunities due to the use of Alternative Fuel Vehicles (AFVs) (Fearnside, 2004). These vehicles require more labor in the transportation of the energy source.
Legal Requirement
Operating in the global market requires companies to comply with the requirements of the new environments (Wheelen & Hunger, 2011). In some countries, Coca-Cola has found it difficult to break into the market due to the requirement to follow many laws. Failure to follow such laws in some countries such as Cuba and North Korea can result in huge losses (Levitt, 2010). This has affected the efforts of the company to dominate in the global market.
Important Issues
Some of the issues that must be addressed by the company to guarantee its continued expansion in the global market include the use of new energy sources, detailed research on the culture of different environments and employment laws. Addressing such issues can allow Coca-Cola to expand its operations in new environments. Use of effective strategies can also allow the firm to continue its global dominance.
Recommendation s
The company can use strategies such as value chains and identification of shifts in key departments. Such strategies can allow the Coca-Cola to minimize its cost of production .
Continue with the exploration of new energy sources that can allow the company to continue having an advantage compared to other firms in the global market.
Carry out d etailed research concerning the culture, norms , and values of different communities . Such research can aid the company in its campaigns since it can address such cultures and attract more consumers in the process.
I dentify countries with fair tax laws such as Italy, Norway , and Argentina and expand their operations in such nations (Jacobson & Brownell, 2000). Operating in such nations can allow the company to improve its products quality , which would attract more consumers.
Avoid operating in countries with strict legal requirements such as Cuba and North Korea. Operating in countries that have less legal requirements such as European nations can provide the benefit of avoiding risks. Some risks can impact the operation of a company and avoiding them is necessary.
Conclusion
Operating in the global market requires careful consideration of several variables such as the ones discussed in this paper. Coca-Cola has managed to dominate in the global market due to effective use of some of the variables. The recommendations provided can be used by the company to boost its operations and attract more consumers from the global market. This will ensure that Coca-Cola continues to dominate in the market and operate in more countries worldwide.
References
Fearnside, P. M. (2004). Greenhouse gas emissions from hydroelectric dams: controversies provide a springboard for rethinking a supposedly ‘clean’energy source. An editorial comment. Climatic Change , 66 (1-2), 1-8.
Jacobson, M. F., & Brownell, K. D. (2000). Small taxes on soft drinks and snack foods to promote health. American J ournal of P ublic H ealth , 90 (6), 854.
Levitt, T. (2010). The globalization of markets. Readings in I nternational B usiness: A D ecision Ap proach , 249 .
Taylor, M. (2015). Cultural variance as a challenge to global public relations: A case study of the Coca-Cola S care in Europe. Public Relations Review , 26 (3), 277-293.
Wheelen, T. L., & Hunger, J. D. (2011). Concepts in S trategic M anagement and B usiness P olicy . Pearson Education India.
