Globalization is the greater contact and integration of individuals, organizations,

and governments on political, social, and economic levels. Through

globalization we spread our business, culture and technology in the world.
Through globalization world has changed into a global village in which there
are no boundaries in between countries. Globalization reduces the barriers
which were the hurdles in the path of growing business. Through globalization
we can easily transport anything in the world and it provides us easiness in the
flow of any type of information. Globalization provides us the path to interact
with any person in any region of the world. It has resulted in a major growth in
internal trade, idea interchange, and cultural variety. Several well-known
corporations have used globalization to develop their operations in other
regions. Now through globalization every business is able to operate on an
international scale.
Main objectives of globalization are to trade, capital and investment
movements, to grab the market in the whole world, to make an organization
profitable and to achieve growth and sustainability in the international market.
Globalization envision that there are no boundaries in the world that can stop
someone to sell or purchase goods in the whole world or to interact with
someone and to exchange their cultural values.

Globalization impacts on the industry structure as there are many challenges

and obstacles to go at international scale.
When Pepsi and Coke entered into the international markets both faced
obstacles in their international operations. Obstacles were antitrust regulations,
price controls, advertisement restrictions, foreign exchange controls, and lack of
infrastructure over there, cultural differences, political instability and local
competition. . When Coke purchased the majority of Cadbury Schweppes'
international CSD business in 1999, regulators in Europe, Mexico, and
Australia prohibited the deal from taking place. In Germany, a 2003 bottle
return law (later rescinded) caused many merchants to discontinue offering
Coke and Pepsi products; for Coke, this interruption resulted in an 11 percent
year-over-year sales loss. In Colombia, Marxist rebels assassinated a local
Coke executive in 2003, while union activists accused the company of
conspiring with right-wing death squads. Low-cost upstarts like Peru's Kola-
Real have undermined market share or pricing power for larger enterprises in
various Latin American nations. In 2003, for example, these "B-brands"
accounted for 30% of CSD market in Brazil, up from around 3% in the early
1990s.
In globalization an organization must have restructure itself according to the
finance that are going to be occur in that particular country like Coke's vending
machine network in Japan a high-margin channel that once accounted for more
than half of the company's Japanese sales.
Stakeholders of the company are very important because they all affected
directly or indirectly by the company’s decision or policies. Through
globalization stakeholders of the company impacted both in positive and as well
in negative ways. Customers are the foundation of the company and it is very
essential for the company to ensure the customer’s expectations. Globalization
has played a very significant role among the customers of both Coke and Pepsi
by ensuring that the company's products are constantly available at the most
opportune times and locations. In globalization both Coke and Pepsi offered
huge funds for marketing and for shelf space. To maintain the smooth functions
both companies employed a large staff who work with bottlers through which
they can support sales. They also bargained directly with their bottlers' primary
suppliers (particularly sweetener and packaging makers) to ensure consistent
supply, timely delivery, and reasonable rates. While in the competition at
international level both companies lowered their prices to catch the market
especially in hard times of the economy. Globalization gives companies an
opportunity to adapt technology but it takes time and money. In the start
companies feel difficulty to find the new talent. Globalization led the company
towards integration of technology through which customers are able to say
about the product, their taste and preferences. It leads the employees to learn the
culture values of different other countries and through which they get exposure.
There is a drawback of globalization that companies has to outsource cheap
labor but in this the labor is unqualified and did not get experienced workforce
which is directly impacts the performance of the company.