Download - Coca Cola - Introduction to MNC
![Page 1: Coca Cola - Introduction to MNC](https://reader035.vdocuments.net/reader035/viewer/2022062307/55493eecb4c905054d8b4ecb/html5/thumbnails/1.jpg)
Know and understand how globalisation both helps and hinders development with reference to one case study
from an LEDC or NIC.
![Page 2: Coca Cola - Introduction to MNC](https://reader035.vdocuments.net/reader035/viewer/2022062307/55493eecb4c905054d8b4ecb/html5/thumbnails/2.jpg)
![Page 3: Coca Cola - Introduction to MNC](https://reader035.vdocuments.net/reader035/viewer/2022062307/55493eecb4c905054d8b4ecb/html5/thumbnails/3.jpg)
The company sells over 400 brands in over 312 countries or territories.
90 billion servings of Coke’s products are consumed each day
![Page 4: Coca Cola - Introduction to MNC](https://reader035.vdocuments.net/reader035/viewer/2022062307/55493eecb4c905054d8b4ecb/html5/thumbnails/4.jpg)
A multinational company is
one that operates in
more than one country across
the world.
http://www.flickr.com/photos/lynns/110140674/
![Page 5: Coca Cola - Introduction to MNC](https://reader035.vdocuments.net/reader035/viewer/2022062307/55493eecb4c905054d8b4ecb/html5/thumbnails/5.jpg)
Apart from operating in more than one country, multinationals also have a number of other characteristics…
Well-known brands
Huge ProfitsLarge employers
http://www.flickr.com/photo_zoom.gne?id=286819826&size=o
Headquarters mostly in MEDC countries.
Atlanta, Georgia, USA
$24 billion dollars 71,000 people worldwide
![Page 6: Coca Cola - Introduction to MNC](https://reader035.vdocuments.net/reader035/viewer/2022062307/55493eecb4c905054d8b4ecb/html5/thumbnails/6.jpg)
![Page 7: Coca Cola - Introduction to MNC](https://reader035.vdocuments.net/reader035/viewer/2022062307/55493eecb4c905054d8b4ecb/html5/thumbnails/7.jpg)
![Page 8: Coca Cola - Introduction to MNC](https://reader035.vdocuments.net/reader035/viewer/2022062307/55493eecb4c905054d8b4ecb/html5/thumbnails/8.jpg)
An increase in the flow of goods, services, people, capital across national borders in
order to create a more integrated and interdependent world economy.
http://en.wikipedia.org/wiki/Globalization
The term globalisation is contested, a general definition is…
Basically the World is shrinking.
![Page 9: Coca Cola - Introduction to MNC](https://reader035.vdocuments.net/reader035/viewer/2022062307/55493eecb4c905054d8b4ecb/html5/thumbnails/9.jpg)
![Page 10: Coca Cola - Introduction to MNC](https://reader035.vdocuments.net/reader035/viewer/2022062307/55493eecb4c905054d8b4ecb/html5/thumbnails/10.jpg)
Improved transport means that people and goods can be moved around the world more quickly. Distance between
places hasn’t changed, but the time needed to cover those distances has.
http://www.flickr.com/photos/danoots/165294639/
![Page 11: Coca Cola - Introduction to MNC](https://reader035.vdocuments.net/reader035/viewer/2022062307/55493eecb4c905054d8b4ecb/html5/thumbnails/11.jpg)
Improvement in technology, such as the internet, has meant
that capital (money) can be transferred instantly between
locations. People can also use telephones and the internet to communicate more easily in
‘real time’.
http://www.flickr.com/photos/ldandersen/301812211/
![Page 12: Coca Cola - Introduction to MNC](https://reader035.vdocuments.net/reader035/viewer/2022062307/55493eecb4c905054d8b4ecb/html5/thumbnails/12.jpg)
Improvements in technology have also lead to the
development of a mass media, television, radio and internet, far off places now seem much closer… we can even see them
in real time.
http://www.flickr.com/photos/skooal/322346446/
![Page 13: Coca Cola - Introduction to MNC](https://reader035.vdocuments.net/reader035/viewer/2022062307/55493eecb4c905054d8b4ecb/html5/thumbnails/13.jpg)
These factors have lead to increased interdependence between places… they also seem much closer than they
did.
http://www.flickr.com/photos/anjan58/1281306048/
![Page 14: Coca Cola - Introduction to MNC](https://reader035.vdocuments.net/reader035/viewer/2022062307/55493eecb4c905054d8b4ecb/html5/thumbnails/14.jpg)
![Page 16: Coca Cola - Introduction to MNC](https://reader035.vdocuments.net/reader035/viewer/2022062307/55493eecb4c905054d8b4ecb/html5/thumbnails/16.jpg)
Bottled in 200 countries across the world.
http://www.flickr.com/photos/jamesonroper/400400410/
![Page 17: Coca Cola - Introduction to MNC](https://reader035.vdocuments.net/reader035/viewer/2022062307/55493eecb4c905054d8b4ecb/html5/thumbnails/17.jpg)
http://www.flickr.com/photos/33924575@N00/677513608/
Manufacturing your product in
the country you sell it has a
number of advantages.
![Page 18: Coca Cola - Introduction to MNC](https://reader035.vdocuments.net/reader035/viewer/2022062307/55493eecb4c905054d8b4ecb/html5/thumbnails/18.jpg)
Labour costs may be lower in some countries, especially LEDC countries.
Low labour costs = higher profits.
http://www.flickr.com/photos/thomasvr/2178131895/
![Page 19: Coca Cola - Introduction to MNC](https://reader035.vdocuments.net/reader035/viewer/2022062307/55493eecb4c905054d8b4ecb/html5/thumbnails/19.jpg)
Manufacturing your product in the country it is sold reduces transport
costs.
Less transport = higher profits.
http://www.flickr.com/photos/jungkumseok/2175023880/
![Page 20: Coca Cola - Introduction to MNC](https://reader035.vdocuments.net/reader035/viewer/2022062307/55493eecb4c905054d8b4ecb/html5/thumbnails/20.jpg)
Legalisation on working conditions, workers’ rights, health and safety, and the environment may be less strict in
some countries.
Relaxed legalisation = lower overheads= more profit.
http://www.flickr.com/photos/22385378@N02/2171255668/
![Page 21: Coca Cola - Introduction to MNC](https://reader035.vdocuments.net/reader035/viewer/2022062307/55493eecb4c905054d8b4ecb/html5/thumbnails/21.jpg)
Some countries may try to encourage multinationals to invest in their country by offering lower tax rates and financial
incentives.
More favourable taxation = lower overheads= more profits.
http://www.flickr.com/photos/dukeofism/2137719782/
![Page 22: Coca Cola - Introduction to MNC](https://reader035.vdocuments.net/reader035/viewer/2022062307/55493eecb4c905054d8b4ecb/html5/thumbnails/22.jpg)
Coca-Cola employs people.
Coca-Cola locates in an area
http://www.flickr.com/photos/ikayama/784139355/
Generates income for local suppliers
Employees have greater income.Generates income for local businesses
Employees pay taxes
Increased tax revenues can be spent on the local community.
Process of the positive multiplier effect.
And so on…
And so on…
![Page 23: Coca Cola - Introduction to MNC](https://reader035.vdocuments.net/reader035/viewer/2022062307/55493eecb4c905054d8b4ecb/html5/thumbnails/23.jpg)
It widens your market.
More consumers= more profit.
http://www.flickr.com/photos/perverted_introvert/
2197021334/
![Page 24: Coca Cola - Introduction to MNC](https://reader035.vdocuments.net/reader035/viewer/2022062307/55493eecb4c905054d8b4ecb/html5/thumbnails/24.jpg)
The status of your brand is raised.
More status = more consumers = more profit
http://www.flickr.com/photos/gunnarfreyr/2196432220/
![Page 25: Coca Cola - Introduction to MNC](https://reader035.vdocuments.net/reader035/viewer/2022062307/55493eecb4c905054d8b4ecb/html5/thumbnails/25.jpg)
Producing your product in a country and
adapting to the local market makes it seem
more ‘local’.
More local = more consumers = more
profit.
http://www.flickr.com/photos/liemtran/2184656873/
![Page 26: Coca Cola - Introduction to MNC](https://reader035.vdocuments.net/reader035/viewer/2022062307/55493eecb4c905054d8b4ecb/html5/thumbnails/26.jpg)