Credit Crunch

In: Business and Management

Submitted By rawgeder
Words 761
Pages 4
The Coca-Cola Company focuses on the non-alcoholic beverage market, producing a range of drinks around the world. It is the world’s leading manufacturer, marketer and distributor of non-alcoholic beverages, primarily carbonated soft drinks. The company is active in more than 200 countries (Mintel, 2005), with the help of directly controlled subsidiaries, partnerships and franchising, thus making it a truly global company. The company sells over six million beverages every day (Coca-Cola, 2005).

The financial situation of Coca-Cola can be commented by looking at the company’s annual reports. For the year ended December 2004, the company generated revenues of $21,962 million, an increase of 4.4% on the previous year (Coca-Cola, 2005). The distribution of this revenue under the five business units is: North America 30.1%; Africa 3.9%; Asia 24%; Eurasia 31.2% and Middle East 9.7% (Datamonitor, 2005). The company’s leading brands are Coca-Cola, Diet Coke, Sprite and Fanta.

In today’s environment, markets are global, and the resources to serve those markets must also be global. Gone are the days when automation products designed and manufactured for the United States could be sold worldwide with any reasonable success. The companies that are able to design globally for narrow local requirements will generate growth and success—at the expense of those that do not, or cannot.

Today, customers in different parts of the world don’t want generic products, but rather, products that meet their specific needs. With Internet access, most customers now browse the Web not just for pricing and delivery, but also for products and services that meet their unique, often local requirements.

When designing and manufacturing products for the global environment, concentrating design services in just one location was previously considered effective, bringing economies of scale.…...

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