HUTECH INSTITUTE OF INTERNATIONAL EDUCATION

INTERNATIONAL BUSINESS
BBNG3103

NAME: To Le Nha Lam Trinh Thi Hong Ngoc Vo Thi Y Ni

STUDENT ID: 201401052 201401065 201401096
CLASS: 20BOBA01
LECTURER: Nguyen Tien Thanh

Ho Chi Minh City, 2023

Word count: 3065

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 Table of Contents
I. Introduction..................................................................................................................................2

II. Body............................................................................................................................................3

1. Common cultures...................................................................................................................3

1.1. Language...........................................................................................................................4

1.2. Religion.............................................................................................................................5

1.3. Social.................................................................................................................................5

1.4. Aesthetics..........................................................................................................................6

2. The most important culture factors.....................................................................................6

3. Challenges...............................................................................................................................7

3.1. PEST analysis....................................................................................................................7

3.2. Avoid cultural bias............................................................................................................9

3.3. Avoid cultural stereotypes.................................................................................................9

III. Conclusion...............................................................................................................................10

References.....................................................................................................................................10

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I. Introduction

Dr. John Pemberton's syrup, another carbonated soft drink, was marketed in Jacobs drugstores in
Atlanta when The Coca-Cola Corporation was established in 1892. based on a legendary
beverage that has developed into one of the biggest businesses in the United States and is a
global brand. Asa Griggs Candler established the Coca-Cola Corporation in 1891, establishing its
headquarters in Atlanta and securing complete ownership of the company. The firm had
exceptional growth under Cander's direction, going from selling around 9,000 gallons in 2890 to
310,877 gallons in 1900. Coca-Cola was the only business permitted to sell packaged beverages
in 1978. In 1982, the corporation introduced a line of low-calorie, sugar-free soft drinks. 1990:
Dasani bottled water, sports drink, and children's juice. Nowadays, The Coca-Cola Corporation
is recognised as an American multinational company that produces non-alcoholic drinks and
syrups, sells them, and promotes them. More than 1.9 billion Coca-Cola beverages are consumed
daily in more than 200 countries because to the company's presence and global expansion. Since
its founding, Coca-Cola has been present and active in more than 200 nations. Coca-cola is one
of several beverages that make up 3.1% of the world's total beverage output. Other beverage
businesses, including Pepsi, Red Bull, Danone, and Nestle, compete for the same demographic of
consumers and might be considered competitors of the Coca-Cola Company. Coca-mission
Cola's is to encourage people to reach their full potential by giving them a wonderful place to
work. With a focus on building a more sustainable business and a better-shared future, Coca-
Cola develops products that people love, keeps them physically and psychologically well, and
improves the lives of individuals, groups of people, and the environment. The goal statement of
Coca-Cola is, "Refresh the World of Mind, Body, and Spirit, Inspire Moments of Optimism and
Happiness Through Our Brands and Actions, Create Value and Make a Difference." Coca-Cola
segments its market based on four variables: location, demographics, psychology, and behavior.
Coca-worldwide Cola's segmentation consists of four geographical divisions: Europe, the Middle
East, and Africa; Latin America; North America; and Asia Pacific. It attempts to advertise in
various geographies. Based on factors including age, employment, family life, race, religion,
generation, social class, and nationality, Coca-Cola has segmented its customer base
demographically. The marketing section for Coca-Cola frequently focuses on consumer
awareness, responses, and attitudes regarding the product (Sroychow, 2016). Coca-Cola has
grown to be a market leader in the beverage sector because it upholds its commitment and long-

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term consumer happiness and retention plan. Coca-Cola has been striving and succeeding to this
day thanks to its strategy since the 1800s for achieving objectives including foreign mergers, a
sizable market share, snack manufacturing, and overall success.

II. Body

1. Common cultures

This is regarded as a crucial component of the international company management process since
international business culture is so crucial. Cultural ties between nations are crucial for
businesses to be able to communicate and engage in discourse. Multinational corporations
frequently operate in diverse cultural contexts and are distinguished by cultural and linguistic
cultures. Paying attention to cultural differences encourages nations to have a large proportion of
the active investment market, provides chances for doing business internationally, and fosters a
positive reputation internationally. When cultural misunderstanding endangers certain human
values, the situation or occurrence is said to be "culturally risky" (Cavusgil et al., 2008).
International business may be significantly impacted by culture, which also affects the majority
of client attitudes and purchasing decisions as well as successful cross-cultural management of
human resources and corporate processes. will provide the company with a significant
advantage.

While conducting commercial operations overseas, cultural aspects significantly affect how
people and firms behave, which has an impact on their success. Color, art, and music are
examples of physical cultural aspects having objective dimensions. Other intangible cultural
factors include (attitudes, norms, and religion). Nevertheless, communication, social structure,
language, and religion are the main intercultural variables.

1.1. Language

Language is a key determinant for survival and development for Coca-Cola, a global company
with operations in more than 200 countries. Language may be seen as a mirror of culture. Basic
communication and the socialisation of values and norms both depend on it. Business language
fluency is crucial and a huge benefit in international companies. Language may be understood in
two ways: verbally and nonverbally. Coca-Cola teaches managers in each region, in several
markets across more than 200 nations, so that regional managers will be taught and understood.

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This is done with an understanding of the value of business culture and language. know the
cultures they will be managing. Because various cultures have varied body language patterns and
because businesses need to be able to interpret non-verbal cues, Coca-Cola uses non-verbal
training as one of its methods. Coca-Cola is concentrating and paying attention. In this method,
not only can the training of managers in each region also draw in human resources in those
regions, Coca-Cola firms may successfully navigate language hurdles in the global business
process. Employers who are familiar with the local language and culture will be hired by area
managers. The manager can learn about a new culture and receive instruction in the fundamental
skills required for management and business from those workers. The term "Coca-Cola" was first
introduced to the Chinese market by Coca-Cola in 1920. In China, these names are transcribed as
"Kekou-Kela," which means "tadpole" in Chinese. The linguistic barrier that prevents Coca-Cola
from entering the Chinese market is this (Nhật, 2019).

1.2. Religion

The role of religion in culture cannot be overstated. Religion is a strong influence in many
nations, influencing people's perceptions, thoughts, beliefs, and even consumption patterns.
Every brand must thus research the religion practised in the nation of advertising. There are
currently four main faiths in the world: Buddhism, Hinduism, Islam, and Christianity. Religious
differences must be taken into consideration by most firms when conducting international
commerce since religion has a wide range of effects on customer behavior, corporate operations,
and societal structures. The Coca-Cola firm has the benefit of developing the image of Santa
Claus, a beloved figure during the Christmas season because Christianity makes up a sizable
portion of the population in the United States. Saint Nicholas, a Christian person, is the source of
Santa Claus' origin and image. The Coca-Cola Corporation created Santa Claus, and over time,
his likeness has changed as a result of numerous portrayals of popular culture. Western
authorities (Desk, 2022). Due to the tremendous advantage and monopoly of Santa's image in
regard to Religion, Christmas consumption of Coca-Cola products will be quite high in nations
with significant Christian populations. Because religion is a strong force that has the capacity to
shape perception, it is important to understand religion in order to use it for advertising.

1.3. Social

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The term "social structure" refers to the fundamental social arrangement of a society, the social
structure that will affect and influence commercial decisions, including the selection of locations
for manufacturing, negotiations, and marketing. a company's target market. In a cultural setting,
gender roles refer to taught social behaviors and attitudes associated with male or female roles.
The way that gender roles are treated in each culture has an effect on behaviors and attitudes,
including attire choice, operational preferences, and decision-making authority. The coca-cola
market in Vietnam is difficult to understand because of the cultural differences between the
North and the South, but Coca-Cola has distributed products that aren't complete and cater to the
preferences of two distinct regions, such as the South's preference for sweets and the Southern
region. While the North like salt, Coca-light Cola's flavor is more popular there. Pepsi is
preferred over Coca-Cola in the South because of its high sweetness preference, however, Coca-
Cola has suggested appropriate goods based on an examination of gender preferences. In order to
meet the demand for sugar-free Coca-Cola Lite products for dieters, Coca-Cola has introduced a
product called water that is ideal for ladies who want to restrict their intake of sugar in order to
maintain a beautiful figure. Several ladies adore Coca-Cola Lite since it is reduced in calories, is
delicious, and makes it simple to regulate sugar absorption. Coca-Cola Zero, in comparison, uses
twice as much sugar in production to help satisfy sweet cravings, but men can drink it since only
27% of the sugar is absorbed.

1.4. Aesthetics

The efficacy of advertising is greatly influenced by whether or not the form is appealing.
Cultural preferences and aesthetics are crucial consideration for companies. International
advertising managers also face challenges due to varied cultures, habits, customs, and practices
between nations. The famous items, art forms, music, and architecture that a company utilises
might be considered the objective part of the culture, albeit most civilizations have different
aesthetic tastes. Similar to aesthetics, colors and symbols have many connotations. In addition,
colors serve as brand-identity emblems and are connected to certain manufacturers' products.
Coca-Cola has developed and launched the campaign in the Vietnamese market. Coca-Cola
employs the imagery of a swallow to indicate spring in order to usher in the holiday season in
Vietnam. Swallows arrive, spring comes, and pleasure comes. Vietnamese culture is reflected in
Coca-Tet Cola's products as a celebration of reunion, good fortune, and pleasure (Giang, 2022).

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Also, Coca-Cola depicts social standards about the generational divide between the young and
the old as well as the absence of intimate ties and changes in lifestyle. To bridge the generational
gap, Coca-Cola developed the animated commercial "Year of the Tiger".

2. The most important culture factors

The management of the global firm is required by the Coca-Cola Company culture to engage
stakeholders in both official and informal talks. Stakeholders frequently gather and converse
about the production and use of products. For instance, it is rumored that The Coca-Cola
Corporation is engaging in negotiations with suppliers of bottling equipment in methods that are
most likely to result in prosperous business for both parties. The culture of The Coca-Cola
Corporation acknowledges the need to guard against global warming brought on by unchecked
stressed production techniques within the organisation. Due to the possibility that they may
become a victim of unregulated manufacturing techniques, the company's culture understands the
necessity to safeguard the safety of its clients. By avoiding the discharge of dangerous elements
into the atmosphere during mass production and the creation of bottles used for packaging, the
firm works to preserve the environment from pollution. The collaborative spirit of The Coca-
Cola Corporation has resulted in the company's environmental push to recycle old cans across
the United States. After working with recycling businesses to develop a recycling program using
cutting-edge technology to make Coca-Cola widely used worldwide in America, the decision to
recycle old cans was made.

A strong company culture is a crucial prerequisite for the creation of a business strategy.
Corporate culture has a particular personality and draws attention to the traits of the company as
well as the development of shared values among all stakeholders. The corporate culture of The
Coca-Cola Company is crucial for creating strategies that set it apart from other businesses and
for fending off rivals. The corporate culture of the Coca-Cola Corporation, for instance,
emphasises the natural setting where the organization's strategy is based. Coca-corporate Cola's
culture is equally emotional since it takes into account the well-being of all stakeholders and the
environment in which the business works. While culture requires an easily understood
vocabulary to record and communicate the tale, in modern business, corporate strategies are only
the headline of the company's story. For instance, Coca-Cola has made sure that all stakeholders
are aware of the company's goal, vision, core values, and expectations of them. The use of all

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available techniques to accomplish a shared objective for the organisation is ensured by
stakeholders speaking the same language. The desire, engagement, and execution of a company's
plan are defined and measured by its corporate culture, which is a crucial tool for strategy
implementation. After developing the company plan, the strategy must be actively and
effectively implemented.

3. Challenges

3.1. PEST analysis

A model for examining external influences is known as the PEST model, in which "P" (for
politics) stands for the political environment, "E" (for economics), and "S" (for society). and "T"
stands for technology. PEST analysis refers to a framework of macro-environmental elements
that significantly affect an enterprise's strategic management. Each firm in particular and the
economy as a whole are directly impacted by these four forces. These outside variables affect
businesses objectively. Thus, companies like Coca-Cola must research and evaluate them in
order to design plans and policies that are appropriate for their growth.

● Politics: Coca-Cola is the most well-known beverage brand in the world, having outlets
and methods of distribution in several nations. Coca-Cola is required to abide by the rules
and regulations established by the government of the destination nation while entering
that nation. This will have an impact on how the product is manufactured before being
distributed in that nation. The items that Coca-Cola provides will be directly impacted by
changes in the legislation of nations regarding tax rates and amended taxes. Although
Coca-Cola is a well-known beverage brand worldwide, new brands and competitors will
eventually enter each area, forcing Coca-Cola to share it with them.
● Economics: The international economy will continue to reach significant growth
milestones between 2010 and 2020. Due to the low-interest rates on company loans,
Coca-Cola is able to efficiently cycle its capital. These low-interest loans can be used by
this company to buy new equipment and technologies. The cost and time of producing
completed goods are reduced as a result of advances in science and technology. Now,
corporations may offer new goods at cheap pricing, satisfying consumer demand for
Coca-Cola products while simultaneously reducing the expense of product research.

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 ● Social: Coca-headquarters Cola's in the United States, and sales of this brand are greatly
influenced by the amount of product consumption in this nation. As a result, many
Americans live healthy lives and avoid carbonated soft beverages. This has had a
significant impact on this market giant's business tactics. Yet after promptly launching its
range of sugar-free Coca-Cola beverages on the market, it appears that this is not as
significant. This product targets the market of consumers who enjoy soft drinks but are
on a diet and trying to keep in shape.
● Technology: The outcomes that Coca-Cola has attained have been significantly affected
by technological considerations. Coca-Cola switched from utilising glass bottles to tin
cans and plastic bottles thanks to modern technologies. Tin cans and plastic bottles have a
definite positive impact on sales. Consumers will favor these designs since they are
highly practical, can be transported, used when traveling, and can be thrown away after
usage. The advancement and speeding up of the Coca-Cola product manufacturing line is
made possible by the development of more and more contemporary technology. Thus,
this company has introduced a variety of high-quality goods at reasonable rates to the
market.

Coca-Cola progressively defends its position by effectively studying the macroenvironment via
the PEST model in addition to examining internal issues through the SWOT model. As a result,
the potentials are used more efficiently, transforming obstacles into possibilities for competition.
Unquestionably, Coca-Cola always makes rivals leery.

3.2. Avoid cultural bias

Prevent cultural bias is a type of bias that stems from the idea that one's own culture is superior
to that of another cultural group. This bias tends to favor the viewer's point of view because it is
supported by correct values and contradicts other ideas (Mahar, 2013). The thinking of an
international business should be free from any cultural prejudices, and it should cultivate cultural
awareness to respect cultural variety. To better serve their customers, Coca-Cola firms frequently
localize their campaigns and plans. Coca-Cola has offices in each market, and these offices are
connected. Coca-Cola Vietnam markets its products and reaches people quickly by establishing
connections with partners, suppliers, grocery stores, street sellers, and movie theaters the
quickest period.

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3.3. Avoid cultural stereotypes
Prevent cultural stereotypes because when all members of a group are categorized with the same
traits, generalizations become stereotypes. International enterprises should acquire business
knowledge through cross-cultural training (Mahar, 2013). Coca-Cola used gendered stereotypes
in their advertising in 2016, frequently using women to represent waitresses to suggest that
women frequently work in the catering business. This is regarded as a pattern that was influenced
by American society, and the Vietnamese Coca-Cola market places a strong emphasis on
marketing Tet products using Vietnamese culture. For the Vietnamese market, Tet color is
connected with family reunion, thus Coca-Cola has advertised the product by stimulating the
reunion of children far from home with a "carriage of love." This is a strong play on the customs
of Vietnamese people. Coca-Cola has increased the market share of its goods through advertising
strategies that are focused on the habits and behaviors of the Vietnamese population.

III. Conclusion

In conclusion, a very prosperous and expanding beverage firm is The Coca-Cola Company.
Nowadays, The Coca-Cola Company is recognised as an American multinational company that
produces non-alcoholic drinks and syrups, sells them, and promotes them. For businesses like
Coca-Cola to prosper, Vietnam has to strengthen its economic, legal, and business facilitation
environments. The whole spectrum of essential services for businesses must be offered, together
with improved management practices, investments, procedures, and reliable financial systems.

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