International Business

Introduction at International Business

Involve any business transaction between parties

Include such activities as buying & selling raw material, inputs or finished product across boaders

Difference between international business and domestic business?

At least one party have to adjust legal, economic, and cultural system; convert its currency into the other party’s currency.

Coca-Cola Company Description & BackgroundFounded in 1886 in US

Operate >200 countries except Cuba, Sudan, Iran, Burma, North Korea.

Partnership >300 bottling and canning company worldwide.

Coca-Cola Company Business Environment

To elaborate demographic, cultural, political, social, environmental, technological, economical & legal environment where Coca-Cola Company function.

Micro environmentAffect company’s ability to services its market, decision making process & performance.

Can be controlled by organization.

Include consumer, distributer, supplier & competitor.

Macro environmentAffect organization’s plan & strategic.

Very constantly, out of organization control and no predictability.

Include political, economic, technological, social, environment & legal changes factor.

Political factors:

Non-alcoholic beverages falls in the FDA (food and drugs administration)

government has power to set standard law requirement.

Economical factors:

National and world economy impact as well as inflation and recession.

Pakistan where is the unemployment rate is very much high, employs1800 people, involved $130 million.

Social factors

lifestyle, population growth rate and carrier attitudes affect nonalcoholic industry.

Increase in awareness among consumer and modern life style.

consumer’s needs and began to produce diet coke, like beverage, juice and sport drinks.

Healthier beverage, juice and

sport drinks

Technology factors

Introduction of plastic bottles and cans

have increased the sales of coca cola.

Ardagh glass is the latest technological

achievement by Coke Company.

Ardagh glass technologic (Friendly environment product

Environmental factors

Now company has considerate three objectives:-

Recycle the water

Reduce the water consumption level

Refill the water in communities

advance recycling programs company decides through education they can prevent Littre.

Coca-Cola polyethylene terephthalate bottles

Entry mode of Coca-Cola

wholly foreign owned enterprises

Such Malaysia , China , Brazil , Italy , Japan , Korea.

In 1990s, entry to largest chinese market.

Achieve the product localization cost reduction

Maintain control over its core competencies.

Alliances

“marketing partner” with the Lenovo

High tech image to match the interest

express

Hundred of stores and thousands of dealers

Lenovo use the lager channel system

Joint venture

Swire Group, Kerry Group and COFCO

The implementation of the beverage

production , sales

Building the marketing channel

Get the localization license

Culturei. Logo

In MalaysiaThe original bright red and white color scheme logo

is the global unified visual identity of Coca-Cola.

In ChinaCoca-Cola Chinese logo design

adopts a white on red.

Traditional color festival that reflects the

happiness, good luck, celebration and

spiritual activities and materials of the

Chinese people.

可Ke: means permission, can, may.( “co”)

口Kou: means mouth( “ca”)

可Ke: means permission, can, may ( “co”)

乐le: means happiness( “la”)

When they are combined, the formed word usually has more

defined meanings:

(Kekou) = tasty, good to eat, palatable.

(Kele) = be happy.

ii. Packaging

In China

There are three main aspects that Coca-Cola integrates Chinese culture with packaging.

Stars that Chinese young people like

Chinese traditional culture

Significant events for Chinese people

Stars that Chinese young people like

Chinese traditional culture

Significant events for Chinese people

In Malaysia

Coca-Cola’s localization on the packaging design is based on the local festival.

multi-ethnic society practising multi-cultureless and multi-religion.

packaging for Chinese New Year, Aidil Fitri, Deepavali etc.

iii. Advertising

In China

People desire for Auspicious, jollification and family psychologically.

Focusing on the expression of the philosophy of family first and harmony. Moreover “Dragon”, “paper-cut”, “shadowgraph”

In Malaysia

television media, newspaper, magazine

and internet media.

Malaysia culture and lifestyle to be

advertisement title to showing Coca-Cola

have good relationship with Malaysian.

Coca-Cola Building Illumination in

Malaysia

Malaysia will be the first country outside the United States to screen a special Coca-Cola video on such a large scale.

world's largest full-colour LED wall screen on the Putra World Trade Centre's Menara Dato' Onn.

iv. Labeling Languages

Ethics

a) Ingredient on the package

b) Safety of product

avoid the accident happen

labelling the expired date, precaution,

information of products

approve by government

standard volume of caffeine

c) Consumer Toll-free line

hotline and email address

Malaysia Consumer Hotline in the

bottles is 1-800-88-2653

www.coke.com.my

Corporate Social Responsibility

(CSR)

CSR in China

Coca-Cola company help cleaning Yangtze river

It is longest polluted river in Asia

Coca-Cola with WWF (world wildlife Fund)

CSR in Malaysia

Donate 1.53 million CSR

Active healthy living & community recycle program

Olympic council Malaysia received RM765 000

‘Move Malaysia program’

University Putra Malaysia

Establish a campus recycling programmer

Recommendation

Reward system

Effective Technique to changing micro

environment

Financial =increase salary

nonfinancial=increase position level

“A lot of companies have chosen to

downsize, and maybe that was the right

thing for them. We chose a different path.

Our belief was that if we kept putting great

products in front of customers, they would

continue to open their wallets.”

Steve Jobs

The End