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Case Study of a Tnc: Coca Cola
Case study – Coca Cola a transnational corporation Transnational corporations (TNC’S) are large companies that operate in more than one country. The head quarters are usually in an MEDC. They have a large number of factories operating around the world. TNC’s use cheap labour especially in LEDC’s such as Asia as an alternative to paying the expensive costs of labour in their own country.
Coca Cola Coca Cola is the number one manufacturer of soft drinks in the world. Their headquarters is situated in Atlanta Georgia, USA. It is probably the best known brand symbol in the world.They sell nearly 400 different products in more than 200 different countries. 70% of its sales are generated outside of North America. Production is based on the franchise system Advantages of being a TNC .
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Have a strong bargaining position and can negotiate favorable conditions for entry into countries. . Governments offer incentives to encourage TNC’s to locate there. . Labour costs are lower in LEDC’s.
. Often the raw material is sourced in the LEDC’s BUT this does not apply to Coca Cola. . Coca Cola don’t always own their factories, they subcontract out to pre-existing bottling companies to save more money. TNC’s want to have access to high earning large populations such as India, by manufacturing their goods close to their intended market they can save on transportation costs.
Positive effects that TNC’s have on the host country . Creates jobs both directly and indirectly in the host country. . Many of the bottling firms are local companies so all the profit stays in the host country. .
TNC’s offer training and education. . Many TNC’s to improve their image get involved with schemes to help the poor. Coca Cola runs some community schemes in Africa and South East Asia. One of Coke’s microfinance startup schemes provide 4000 Vietnamese women with the merchandise, training and basic equipment to begin selling Coca Cola.
. TNC’s attract other TNC’s to the host country. . Coca Cola has invested $1. 5 billion in the Russian Economy, this includes training, the construction of manufacturing plants and improvements to infrastructure. Negative effects that TNC’s have on the host country .
Low paid, semi skilled or unskilled production takes place in LEDC’s. Management, design and marketing take place in MEDC’s. . If the TNC experiences problems, the newest oversea branch plants are the first to be closed. Some people think that companies like Coca Cola are adding to the water stress of the area because the water should be used for agriculture.
. TNC’s are very powerful; if they are not happy with the economic conditions within the host country they will pull out leaving people unemployed. . Environmental regulations are often less strict in LEDC’s: some TNC’s take advantage of this. .
Profits are returned to the shareholders, very little of the money remains in the host countries. . Working conditions in some factories are harsh: long hours for very little pay.Employees get very few benefits and there are unlikely to be any unions. Coca Cola hierarchy Coca Cola manufactures their drink concentrate in America.
The marketing of its products is also completed in America. Bottlers buy the concentrate from the Coca Cola Company. They then mix it with water and sweeteners then they bottle the finished product. Each bottling company has exclusive rights to a region of the world. Coca Cola owns shares in some of the companies but not all of them, some are independent. Bottlers are in charge of distributing the products to the retailers.
Retailers sell the bottled products to the public to buy.
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TNC case study: Coca Cola
Spatial organisation.
Raw materials from China, Canada, US, c.Africa. Manufactured in SE Asia + central America. HQ in Atlanta, R+D centres in Atlanta, Mexico City, India. Sold in 200+ countries.
Coca-Cola is a franchise that grants permission to individual licensing then to carry out commercial activity under their brand e.g. recipe tweaked for a country where there is sugar tax- Coca-Cola System. Focuses on the importance of integration of markets and innovation of technology e.g. changed marketing in 2000 due to backlash on health and effects of chemicals in Coca Cola. Began to promote as a lifestyle brand via coke-zero and diet coke. Owns other brands e.g. Fanta, Sprite, Minute Maid.
Influence of Coca-Cola
Belief Coca-Cola established the red/white colour scheme of Santa- reflects of how much , influence TNCs have. 94% of world’s population recognise the Coca-Cola logo.
In 2011, Mexico consumed 172l/capita of Coca-Cola (over 100l increase since 1991, before formation of NAFTA), more than any other country. Directly coincides to the fact 9mn people in Mexico suffer from diabetes. NAFTA has helped Coca-Cola establish in Mexico via free trade.
Impacts of Coca-Cola on host countries
Social: Training and education programmes e.g. surpassed global commitment to enable empowerment of 5mn female entrepreneurs by 2020. Coca-Cola foundation awards grants to companies globally. Massive employment opportunities directly and indirectly.
Economic: Franchise operations therefore local bottlers profit from sale. Investment in new plants→ expanding markets e.g. $90mn R+D centres in Shanghai (multiplier effect). Studies show that for every job in Coca-Cola in a local area, 10 extra jobs are created in the area.
Environmental: Initiates sustainable agriculture schemes (e.g. rainwater harvesting system for tea supplies in China). Uses marketing networks to raise awareness of recycling and distribution network for disaster relief.
Social: Harsh working conditions, worker encouraged to abandon unions in LICs. Millions spent on countering links to obesity e.g. £5mn in European Hydration Institute.
Economic: Long hours and little pay, majority of profits returned to US shareholders, vulnerability to effects of top-down decision making in Atlanta.
Environmental: exhaustion of local water supplies (used more water than 1/4 of world’s population in 2012), water pollution in Coca-Cola products. → Water scarcity in areas of Chiapas, Mexico e.g. Many residents drink Coca-Cola instead as easier to find and just as cheap→ increase by 30% in mortality rates from diabetes between 2013 and 2016→ conflict between TNC and locals and wildcat strikes.
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A brief over view of Coca Cola as a TNC and some of it's major faults. A possible Case study for A2 Human Geography.
- The economy and global superpowers Case studies TNC's
- Created by: Olivia 22
- Created on: 31-03-14 11:22
- Afterward closed 7 plants causing a loss of 2,000 jobs in the area.
- Coke had received 10m Euro's for investing in the region.
- Their investment from German government had come from German tax payer money yet the company failed to stay for the 10 years contracted.
- Instead of recyclable aluminium, coke manufactured tin cans.
- Bon Aqa is tap water and not mineral water.
- Forcably wants to take the market for bottled water.
- Producing bottled water in 70 factories
- Caused local water shortages.
- Large factory in Rajistan - desert region suffering from drought.
- Pesticide residue has been found in bottles and whilst indian government has forced coke to test daily - toxic residues cannot be filtered.
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Case Study of a TNC: Coca Cola . About. Coca-Cola is a carbonated soft drink sold in the stores, restaurants, and vending machines of more than 200 countries. It is the number one manufacturer of soft drinks in the world. Their headquarters is situated in Atlanta Georgia, USA. It is probably the best known brand symbol in the world.
A TNC Coca Cola case study for the AQA Unit 3 exam (A Level)Hope this revision video helps with your case study notes!It covers pros and cons of Coca Cola as...
Coca-Cola now has 20 main brands that generate over US$45 billion a year in revenue and sales in nearly 200 countries. See map of world which takes you through Coca Cola as a TNC, the spatial organisation, headquarters, research and development, production and evaluation of the social and economic of this TNC.
Case study - Coca Cola a transnational corporation Transnational corporations (TNC'S) are large companies that operate in more than one country. The head quarters are usually in an MEDC. They have a large number of factories operating around the world. TNC's use cheap labour especially in LEDC's such as Asia as an alternative to paying the expensive costs of labour in their own country.
Donated over $1,000,000 to support the revival of Nemam Lake, a 1000 acre lake. these are all claims made by coca cola and its hard to prove at the movement due to lack of data due to time constraints. AQA A-Level Geography TNC Case Study for Paper 2 global systems and governance. Learn with flashcards, games, and more — for free.
CASE STUDY - Tesco: Tesco is a major UK-based retailer, and used to be found within the UK only. ... example Coca Cola in India. The Mehdiganj plant are at the ... groundwater and releasing pollutants above limits set by the government. www.pmt.education. CASE STUDY - Apple: Apple is a huge TNC that operates in many countries around the world ...
The Coca-Cola recipe was formulated at the Eagle Drug and Chemical Company, by John Pemberton and was originally coca wine called Pemberton's French Wine Coca. In 1886, when the county passed legislation which prohibited the alcoholic version, Pemberton responded by developing Coca-Cola, a non-alcoholic version. After 70 years of success with ...
COCACOLA-TNC - Free download as (.rtf), PDF File (.pdf), Text File (.txt) or read online for free. Small Case on Coca Cola standardization
TNC case study - Coca Cola. Coca Cola facts: Click the card to flip 👆. - Owns 25.9% market share in soft drink beverages. - 1.9 billion products are consumed everyday. - 94% of the world's population recognise the product. - Generates $45 billion a year in almost 200 countries. - 2015 rated worlds most valuable brand.
Coca Cola- TNC Case Study. Flashcards. Learn. Test. Match. Flashcards. Learn. Test. Match. Created by. ljb99. Terms in this set (16) employees. 146,200 (50% outside US) total sales revenue 2016. ... - In 2017 Greenpeace published a report criticising Coca-Cola's use of single-use plastic bottles (3500 every second) ...
TNC - Coca-Cola Background. Coca-Cola is a carbonated beverage company famous for its drinks such as Fanta, Dr Pepper and of course Coca-Cola itself. In 2013 the drink was consumed in over 200 countries, purchased from shops, restaurants and vending machines.
Case Study of a TNC - The Coca Cola Company Case Study of a TNC: Coca Cola. About Coca-Cola is a carbonated soft drink sold in the stores, restaurants, and vending machines of more than 200 countries. It is the number one manufacturer of soft drinks in the world. Their headquarters is situated in Atlanta Georgia, USA.
Belief Coca-Cola established the red/white colour scheme of Santa- reflects of how much , influence TNCs have. 94% of world's population recognise the Coca-Cola logo. In 2011, Mexico consumed 172l/capita of Coca-Cola (over 100l increase since 1991, before formation of NAFTA), more than any other country.
Study Case Study of a TNC: The Coca-Cola Company with flashcards, multiple choice questions, and games. Master concepts like How many Coke products are consumed per day worldwide?, For how many years have shareholders had consecutive rises in dividends? and more.
14 terms. Economic sustainability VS Environmental Sustainability. 21 terms. Sustainable Tourism - Myth or Reality. 2 terms. IKEA BAMBOO. Coca-Cola TNC - case study study guide by Devon_Magness-Jarvis includes 2 questions covering vocabulary, terms and more. Quizlet flashcards, activities and games help you improve your grades.
Joe Blakey Case Study of a TNC: About • Coca-Cola is a carbonated soft drink sold in the stores, restaurants, and vending machines of more than 200 countries. • It is the number one manufacturer of soft drinks in the world. • Their headquarters is situated in Atlanta Georgia, USA. It is probably the best known brand symbol in the world. • They sell nearly 400 different products.
Coca Cola is the number one manufacturer of soft drinks in the world. Their headquarters is situated in Atlanta Georgia, USA. It is probably the best known brand symbol in the world. They sell nearly 400 different products in more than 200 different countries. 70% of its sales are generated outside of North America.
TNC case study for A Level AQA Geography Global Systems and Global Governance. 100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached. ... Summary Globalisation TNC Case Study Coca Cola (A Level Geography AQA) Module; Unit 1 GEOG1 - Physical and Human Geography;
Coca Cola - TNC Case Study. STUDY. Flashcards. Learn. Write. Spell. Test. PLAY. Match. Gravity. Created by. Cparke567 PLUS. Terms in this set (6) What are some key facts about Coca Cola? - 1.9 billion products made and are consumed globally - Shareholders have received 53 years of consecutive dividend increases
TNC's - Coca Cola. Germany 2006 Fifa World Cup, (Have supported Fifa for past 30 years.) Afterward closed 7 plants causing a loss of 2,000 jobs in the area. Coke had received 10m Euro's for investing in the region. Their investment from German government had come from German tax payer money yet the company failed to stay for the 10 years ...
Study with Quizlet and memorize flashcards containing terms like in what year was cola voted the most valuable & successful brand, cola has created a ..., cola HQ? and more. ... coca cola tnc case study. Flashcards; Learn; Test; Match; Get a hint. in what year was cola voted the most valuable & successful brand.
View CASE STUDE OF A TNC 2.docx from SCIENCE AP PHysics at Cranbrook Schools. CASE STUDE OF A TNC- COCA COLA ORIGIN AND HISTORY coca cola started in 1886, when pharmacist John Pemberton created a
Coca Cola Case Study TNC. How much have CC invested in India since 2011? Click the card to flip 👆. US$2bn.