In Association With Anglia Ruskin Business Essays

the parent company for Coca-Cola. The headquarters of this entity are located in North America. It is important to note that CCE holds the position of being the largest global seller, manufacturer, and distributor of Coca-Cola products (Antenna, n.d.).

Furthermore, according to a fiscal study for the second quarter of 2006, CCE is reported as the largest bottler of non-alcoholic beverages in the world, with a net income of $229 million or 71 cents per diluted portion (Anonymous, n.d.).

Political Analysis for Coca-Cola Enterprise

Political analysis refers to government policies and interventions in the economy (Oxford, 2007).

Coca-Cola, a well-liked fizzy drink, is categorized as a non-alcoholic beverage and falls under the authority of the Food and Drug Administration (FDA). The FDA operates within the United States Department of Health and Human Services and has the task of enforcing different laws. In 2008, the FDA sent a warning letter to the Coca-Cola Company regarding deceptive nutrition claims. This emphasizes how crucial it is for government regulations to oversee product manufacturing and penalize companies that do not meet requirements.

The text discusses the impact of political and economic conditions on international markets, specifically focusing on how these factors affect the Coca-Cola Company. These conditions include civil unrest, government charges, limitations on abilities, and changes in laws and regulations like accounting standards, tax requirements, and environmental laws. Additionally, the company relies on its ability to enter development and emerging markets to maintain sales. In 2005, Coca-Cola's sales experienced a growth of around 11 percent in regions such as North Asia, Eurasia, and Middle Asia. The economic analysis for Coca-Cola considers factors such as interest rates, tax changes, economic growth, inflation rate,

and exchange rates. As of 2010 statistics showed that the United States had the largest economy worldwide with advanced technological capabilities; it also boasted a per capita GDP of $46,900.

According to Rex (2001), economic experts broadly consider a contraction or negative GDP growth as a recession. In such times of low interest rates and economic stability, Coca-Cola has the opportunity to borrow money from the bank and invest in various products, technology, or property.

When conducting research for new products, the Coca-Cola Company will decrease the prices of its merchandise. This strategy aims to entice more individuals to transition to Coca-Cola by offering affordable items. The social analysis for Coca-Cola Enterprise involves analyzing the demographic and cultural elements of the external macro environment. Alterations in societal trends can affect the demand for Coca-Cola's products and determine customers' access and inclination to make purchases (Oxford, 2007). Ultimately, these factors impact customer demand and potential market size.

Many American citizens aged 37 to 55 are adopting healthier lifestyles and becoming increasingly concerned about the nutritional content of the food and drinks they consume due to their concerns about their overall health. This trend will have an impact on the non-alcoholic beverage industry as it will increase the demand for healthier drinks.

Technological Analysis for Coca-Cola Enterprise Technology factors play a crucial role in reducing costs, improving quality by lowering the minimum efficient production level, and promoting innovation, which in turn influences outsourcing decisions (Oxford, 2007). These factors are of utmost importance for Coca-Cola companies to effectively implement their advertising, marketing, and promotional plans.

They enhance the attractiveness of specific products, such as tins and plastic bottles, resulting in increased sales for

Coca-Cola. These items are easier to transport and can be discarded after use, which helps promote the product.

The Worldwide Outlook

At Coca-Cola Company, every individual contributes to their distinctive competitive advantages that differentiate them in the market (Caree, n.d.). They support and aid in establishing Coca-Cola Company's well-known brands globally across various industries (Caree, n.d.).

Coca-Cola Company has been engaged in numerous international activities. On November 16, 2010, Coca-Cola India introduced "Nestea". Coca-Cola India declared that "Nestea" is a globally successful ready-to-drink iced tea in the country. To clarify, Nestea is an ice tea brand produced by Nestle and distributed by Nestle company's beverage division in the United States (Mahalo, 2010).

Incidentally, Nestea is a trade name licensed from Beverage Partners Worldwide (BPW) (Shilpa, 2010). The 50:50 joint ventures leverage the merchandise manufactured by Nestle and the selling efforts of Coca-Cola (Shilpa, 2010). In India, Nestea will be bottled in a factory in Andhra Pradesh (Shilpa, 2010). When Coca-Cola India joint ventures with Nestle, they prioritize the quality of the merchandise and their future, according to Mr.

According to Ricardo Fort, Vice President Marketing at Coca-Cola India, the company's goal is to provide a beverage for every lifestyle and occasion, while also promoting long-term, sustainable business growth (IIFL, 2010). They are constantly striving to improve the quality of their product portfolio (IILF, 2010). However, as Nestea expands its brand globally through joint ventures and international trade, it may encounter challenges related to brand recognition and reputation, which are crucial in the international market.

Cause a trade name is the individuality of a specific merchandise, service or concern. Concept of the trade name is the personality that identifies a merchandise, service

or company and how to identify constituencies. The Coca-cola logo is an illustration of widely-recognized hallmark stand foring a planetary trade name. When Coca-Cola Company acquired Nestle in India, the trade name was well-known in the state.

According to Aswathappa (2008), choosing a trade name can negatively impact goodwill, regardless of local goodwill. Therefore, companies should carefully consider the desired product image in both local and foreign markets. Nestea has a stronger reputation in more economically developed countries compared to less developed ones. It is important to mention that these reputations are susceptible to change. Additionally, legal and cultural factors may necessitate altering the trade name used for selling a product due to cultural differences.

To start, understanding cultural norms in other countries is crucial. In China, the concept of "guan xi" holds significant value, while Indian culture has a strict social hierarchy. Hence, effectively marketing Nestea to both Chinese and global consumers necessitates designing packaging and images that cater to their cultural preferences.

Moreover, Coca-Cola Company is a widely recognized brand globally. However, to sustain growth and achieve success in the industry, they must develop strategies based on their current performance. They also aim to expand the presence of their soft drinks in each country and ensure success in every market.

The Coca-Cola Company, the top soft drink marketer globally, offers a range of products to cater to different consumer needs. When there is a demand, the company uses Adsoff's Product-Market Matrix to determine how to meet it. Let's now delve into what Adsoff Matrix Product involves.

The Adsoff Product/Market Matrix is a tool that businesses can use to determine their product and market growth strategy, as well as

the efforts required for growth depending on whether they are marketing new or existing products in new or existing markets (Rabidbi, 2008). There are four main categories available: market penetration, market development, product development, and business diversification (Rabidbi, 2008).

Market Penetration

This category focuses on selling existing products into existing markets. The aim is to increase income by promoting the product without making any changes to it. Additionally, there is no acquisition of new customers or buyers involved (Marketing Teacher, 2010). The goal here is to achieve a higher market share in current markets while establishing dominance in growing markets.

The Coca-Cola Company is currently facing competition in the market for Diet Coke. Since its introduction in 1982, Diet Coke has been a highly successful product for the company, selling millions of units each year (Anonymous, n.d.). Throughout this time, Coca-Cola has continuously adjusted various aspects of the marketing mix for Diet Coke to keep up with changing customer trends and preferences.
Market Development
Market development involves selling existing products in new markets. This means that the product remains unchanged but is marketed to different locations (Marketing Teacher, 2010).

The merchandise is being exported to a new part as part of market development (Marketing Teacher, 2010). Coca-Cola has two types of soft drinks, Coca Cola Vanilla and Fanta Icy Lemon, under market development. Coca Cola Vanilla successfully launched in America, especially in Great Britain, as it is a new vanilla flavored version of the Coca-Cola Company (Anonymous, n.d.). Before doing so, Coca Cola conducted taste tests and designed the visual identity of the Diet Coke Brand. They made sure to incorporate elements of the Coca Cola brand while also distinguishing it

so that consumers would view it as an alternative to regular Coke.

Fanta Icy Lemon is a refreshing new drink created by Coca-Cola as a result of customer feedback received through the company's Careline telephone service (Anonymous, n.d.). Before its launch in 2001, this product underwent taste tests (Anonymous, n.d.).

Merchandise Development

In merchandise development, new products are introduced to existing markets by obtaining fresh expertise and crafting modified goods. The objective is to appeal to the current market (Marketing Teacher, 2010). Recently, The Coca-Cola Company released a new product called Coca Cola Share Size 1.5l Bottle. Research indicates that there is a growing number of households with 1-2 people. Therefore, Coca Cola concluded that creating a smaller version of their 2-litre family-sized bottle would be attractive to these specific consumer groups (Anonymous, n.d.).

When introducing new brands like Diet Coke, Coca-Cola did not need to modify the actual product. Instead, they only needed to make adjustments to different aspects of the marketing mix. Moreover, Coca-Cola has diversified their selection of soft drinks in the market by incorporating vanilla, lime, cherry, and diet options.

Diversification is the act of introducing new products into new markets, and it can be categorized into two types: related and unrelated (Marketing Teacher, 2010). Related diversification pertains to entering a market or industry that is already familiar to us, while unrelated diversification involves venturing into a market or industry without any prior experience (Marketing Teacher, 2010). Both Winnie the Pooh Roo Juice and Powerade serve as examples of new products being introduced in unfamiliar markets. Winnie the Pooh Roo Juice specifically targets parents with children aged 2-5 years old by offering a juice

drink packaged in an appealing and vibrant manner (Anonymous, n.d.).

According to an anonymous source, the creators of the brand Powerade, Coca-Cola, used characters from Winnie the Pooh to appeal to a wide audience of children and their parents. The development of their energy drink was in response to the increasing demand in the sports drink market. Extensive research was conducted to identify potential competitors prior to the creation and release of the drink.

New Venture According to Porter's Five Forces tool, it is a powerful yet simple tool that aids in comprehending the power dynamics within a specific business situation. It also assists in conducting a structural analysis of the soft drink industry, specifically focusing on Coca-Cola, to assess competitors' strengths and weaknesses and determine the market's competitive structure. Currently, Coca-Cola Company is engaging in discussions with potential partners to explore these opportunities and enhance their business model in other countries. The company aims to replicate its success and gain broader recognition globally. Brunei serves as an ideal choice for the Coca-Cola Company since there are only a limited number of soft drink industries operating within the country.

So, investing in the Coca-Cola Company would be a good choice. Research shows that Brunei has a strong economic system that combines foreign entrepreneurship, government regulation, social welfare measures, and village tradition (Theodora, 2010). Currently, the Brunei government is actively encouraging more foreign companies to invest in the country. They are offering special incentives to new businesses, including up to five years of tax-free profits for those that meet certain quality criteria (Travel Dojo, n.d.).

In 2008, the licensing section of Coca-Cola in Atlanta experienced growth. Additionally, licensing is a

proposed entry mode into Brunei.

Within the Coca-Cola Company, there are two types of licensing: "licensing in," which involves improving and enhancing their own products, and "licensing out," which involves providing merchandise other than non-alcoholic drinks (Frank, 2008).

Dickering Power of Suppliers

Supplier power is the counterpart of purchaser power. The more control and concentration the supplier has over the supply, the more influence it possesses in the market. It is crucial to understand the relationship between purchasers and sellers as it greatly impacts both parties.

Comparatively few providers can provide considerable cost savings and a reliable supply for purchasers. In the soft drink industry, such as the Coca-Cola Company, the bargaining power of a provider plays a crucial role. The company relies on suppliers for essential ingredients to produce non-alcoholic beverages and bottles. Also, the Coca-Cola Company can strategize about potential cost exchanges.

In Brunei, Coca-Cola may attract more new customers due to the unique cultural and spirit of the country. Different regions may have different cultures and spirits, which can influence consumer preferences. Additionally, the dicker power of customers refers to their ability to influence market prices.

The importance of scale and volume is evident in this transaction. When the Coca-Cola Company exists in Brunei, customers have the opportunity to purchase Coca-Cola in larger quantities at a lower cost compared to importing, resulting in significant advantages. If the Coca-Cola Company provides its products to numerous locations for various local governments in Brunei, they may offer a highly favorable deal. In Brunei, it is possible for the buyer to become a supplier due to the renowned reputation of the Coca-Cola brand.

Simply put, this is technically referred to as "backwards integrating".

In this case, Coca-Cola could create their own marketing website. In Brunei, where there are loyal consumers, Coca-Cola Company doesn't need to spend a lot of money on advertising to promote Coca-Cola. The sales of Coca-Cola will increase. Coca-Cola Company can solely focus on maintaining the quality and providing excellent service.

The Threat of New Competitors

The concept of the threat of new competitors refers to the combination of barriers to entry and the response from existing competitors (Swathen, 2010). Moreover, the power dynamic in Brunei is influenced by the ability of individuals to enter the market. Conversely, entry barriers arise when it is difficult or not economically feasible for a foreigner to replicate the incumbent's position (Porter, 1980b; Sanderson, 1998). Capital requirements represent one of these entry barriers.

The high capital costs associated with entering an industry can be a major obstacle for all but the largest companies. Additionally, there are exchanging costs that customers face when switching from one company's product to another. In order to overcome these barriers, new entrants may need to provide customers with a larger price reduction or better quality and service. However, this can result in lower profit margins for new entrants.

In Brunei, authorities have a special offer for new businesses: their taxes will be reduced. However, there is a concern about the availability of substitutes for certain products. The menace of substitutes refers to the presence of alternative products that consumers can buy instead of the industry's products. For example, the price of aluminum drinks tins is influenced by the price of glass bottles, steel tins, and plastic containers. In today's society, drinks are essential

for establishments like McDonald's and restaurants. In the soft drink industry, the major suppliers are quite similar, and the cost of switching is minimal. Therefore, Coca-Cola needs to consider the cost of switching in order to attract consumers. They can explore alternatives in Brunei to become a more preferred choice for consumers. It is important for them to maintain the quality and keep up with developments in new countries.

Competitive Competition

The purpose of competitive competition is to determine the extent to which the value created by an industry will be diminished through direct competition. In Brunei, there is only a small soft drink industry. Therefore, it is important to efficiently manage competitors in order to maximize profits. However, the market in Brunei is slow to grow.

Decision

As part of the decision-making process, international businesses need to conduct various studies in order to compare different states and countries. PEST analysis, Porter's Five Forces analysis, and the Adsoff Product/Market Matrix are all crucial tools for businesses.

Mentions List

1. Anonymous, n.d. , The Coca-Cola Company: Companies Histories,  Available at: ; lt ; hypertext transfer protocol: //www.answers.com/topic/the-coca-cola-company ; gt ;[ Accessed 1 November 2010 ]
2. Anonymous, n.d. , History of Coca- Cola: The male parents of the Coca-Cola Company,  Available at: hypertext transfer protocol: //www.angelfire.com/ca3/ETclanSETH114/cokehistory.html Accessed at: 1 November 2010
3. Anonymous, n.d. , Coca-Cola History: The Coca-Cola Company has the universe 's prima hallmark with respects to softdrink gross revenues Available

at: ; lt ; hypertext transfer protocol: //www.allsands.com/history/objects/cocacolahist_yqs_gn.htm ; gt ; [ Accessed 1 November 2010 ]