Assignment 3

BUS 604 Contemporary Management

Instructor: Dr. Salam Sami

Presented by: Karen Hanna (ID: 5020211039)

Fall 2022

Case Study: Coca-Cola's Effort to Refresh the Whole World:

4-8. Based on the description in the case, is Coca-Cola Company a domestic, international,
multinational, or transnational organization? Why?

An international firm import or exports its goods but makes no direct investments outside
its home country, whereas a domestic company operates within its own nation. In addition to
their home country, multinational corporations do have investments in other nations, but they do
not have consistent product offers across all of those nations. Their primary focus is on
customizing their goods and services for the various local markets. Corporate offices of
multinational corporations create the company's worldwide strategy, which places a strong
emphasis on sales volume, cost control, and operational effectiveness. Comparatively,
transnational corporations are more complex in nature, have interests abroad, and a central
corporate facility that delegated decision-making authority for R&D and marketing to the
respective foreign market management. Coca-Cola is headquartered in Atlanta, Georgia, and
offers about 3500 products while doing business in more than 200 countries across the world. As
a result, Coca-Cola is a transnational corporation with a corporate office, but local management
in the nations where it does business is responsible for marketing and R&D. For example,
Muhtar Kent is in charge of the corporation's marketing and R&D strategy in India.

4-9. How can an understanding of India’s culture help a Coca-Cola manager succeed
there?

For a manager to be successful in India, he or she must have a thorough awareness of the
local culture. This will allow the manager to cater the product and marketing message to the
demands of Indian consumers. Understanding Indian culture helped Muhtar Kent realize that
adaptability is essential for a company to be successful in the Indian market. As a result, the
business imaginatively customized its distribution to the demands of India's tiny merchants,
while coordinating locally relevant messaging with corporate wide marketing.

4-10. Besides the measures described, what else can Coca- Cola do to maintain ethical
conduct in the countries where it operates?

In addition to the measures mentioned, Coca-Cola can attend to the nation's health needs
to uphold an ethical behavior in the nations it operates in. The major problem with soda that is
taken into account in these markets is the health risks associated with the beverages, such as
obesity, acid content, etc. The corporation should invest in R&D to make its drinks healthier or
introduce new drinks that target that consumer niche.