Table of contents

Introduction 1. Coca-Cola In Great Britain 2. Coca-Cola In India References

Introduction

Global business consists of operations which are developed and are carried out through national borders for satisfaction of the purposes of individuals, companies and organizations. These transactions are carried in various forms which are often interconnected. International business is conducted through import and export operations and foreign direct investments (FDI). FDI is carried out in various forms, including fully owned subsidiaries and joint ventures. Additional kinds of the international business are licensing, a franchise, and joint ventures. As definition specifies, and as for any kinds of domestic business, the satisfaction "remains a key principle of global business. Besides it, because of different transactional factors of environment, to various restrictions, and frequent conflicts as a result of various laws, cultures and societies are obstacles in international business. Main principles of business are still applied, but their application, complexity and intensity differ. For conducting business in other countries, firms should be ready to include the international factors in their thinking and planning. Coca-Cola established in 1886 operates in more than in 200 countries and markets more than 450 brands and 2800 beverages. These products include the sparkling and aerated drinks, such as water, juice and juice drinks, tea, coffee, sports drinks and energy drinks. (Our company, 2011) Cola Company is situated with its headquarters in Atlanta, the State of Georgia. As of June, 2008, the companys operational structure consisted of Africa, Eurasia, European Union, Latin America, northern part of Pacific ocean and Bottling Investments, in addition to the corporate. The very first foremost challenge for the global enterprise consists in working out of the international approach, and then to execute it. Managers and those, on the decision posts often face difficulty to change their thought pattern and not considered to be good to work in international a paradigm. There are various approached and measures of International business worldwide, but only few of them have really accepted good the international approach. Though the situation improves more and more professionals and the trained graduates take on managerial posts. Nevertheless, global management of business require additional ordinary managements, foresight and talents. (Our company, 2011)

1. Coca-Cola In Great Britain Even Coca-Cola, the worlds largest beverage company should consider about the macro environment and its opportunities and threats in UK market, which is considered to have largest share in European countries. They too should analyze their political, economic, social the cultural

environment and legal factors to catch up the market share in quickly changing world. In transboundary business, we walk in various cultural environments, characterized unfamiliar languages and unique systems of values, belief and behavior. We face clients and business partners which show various a way of life, a norm of behavior and consumption. These distinctions influence all aspects in international business and plays an important role in company activity. Political, economic, social, technological, legal factors play an important role for carrying out of the operations in the different countries. (Bartels, 1998) Soft drinks non alcoholic beverages comes in food category of FDA. (Food and Drug administration of UK government), the government plays its role manufacture of these products from the point of view of rules and regulations. There are the potential penalties established by the government of the UK concerning the companies if they don't correspond to legislation standards. Some of factors which can lead to actual results of Coca-Cola company can essentially differ from the expected results described in the direct statement of the company: - Frequent changes in laws and statutory acts, including changes in standards of accounting, taxation requirement (including tax rate changes, new taxation laws and reconsidered tax laws interpretations), and also the environmental protection legislation in national or foreign jurisdiction. - Changes in nonalcoholic business environment. They include, without restrictions, a competitive product both in terms of price pressure and their abilities to maintain a share of sales in the world market as result of actions of competitors. - Political conditions, especially in the international markets, including civil disorders, the governmental changes and restrictions on possibility of transfer of the capital through borders. - Ability to get in the developing and coming up markets which also depends from economic and political conditions, and it is how much good they are capable to get or create strategic alliances with local business for bottling and to bring necessary improvements of an infrastructure in, networks of distribution, equipment and technology sales. (Hofstede, 1980) Threat that company Coca-Cola faced recently in connection with changes in political factors was war against Iraq which had made the USA and Great Britain very unpopular in the countries of the Middle East, and also in other Muslim countries. Because Coca-Cola is known as very American company, it had huge influence on sales of its production. Last year the British economy was doing strong and almost in each part was growth and success. However, all has changed. The majority of economists freely define recession as two quarters of contraction, or negative rates of increase of gross national product. In 2008 , UK witnessed a global economic crisis which offered a number of important indicators of economic recession all over the world. The high prices for oil that led as the high prices for the foodstuffs (in connection with dependence of manufacture of the foodstuffs on oil, and also use of food cultures products, such as ethanol and a biodiesel engine alternatively to oil) and the global inflation, essential credit crisis, leading to bankruptcy of large and organized investment banks, and also commercial banks in the various countries worldwide, thereby increasing unemployment growth, and possibility of global recession. As inflation grows all above and above capacity the consumer buying also is one of key threats in industry. Coca Cola in UK passed through under same recession as consumer focus was shifted to other priorities and government imposed higher taxes on sale of beverages. Between a Pepsi and Coca-Cola there is always a rivalry that makes industry very slowly moving and the management should react constantly to changing attitudes and the requirement of the consumers or face a loses in market share in the conditions of a competition. Besides, consumers can easily be switched to other drinks with small expenses or a consequence. It is said that growth Coca-Cola will be slow in Great Britain because of an economic crisis, but drink company plans to remain the leader in the market of drinks. The company doesn't hope to reduce the prices though consumers trend is growing downwards. The company announced, though we will feel influence we will win the market. Soft drinks sales has been high in the countries outside of Great Britain According to polls of Standard and Poor's Industry surveys, "for the large soft drink companies, economic situation had shown improvement in many large international markets, such as Japan, Brazil and Germany." These

markets will continue to play an important role in success and stable growth for the majority of soft drinks. The social changes are influencing attitudes and a way of life of Britons. (Robertson, 1999) Many citizens of Great Britain practice a healthy way of life. It has affected sale of soft drinks, that many switched to bottled water and a diet coke instead of beer and other alcoholic drinks. Besides, time management also increased and makes about 43 % of all households. Necessity of bottled water is becoming more convenient and healthy products and gaining momentum in average day to day life. Possible substitutes which constantly put pressure upon coke include tea, coffee, juice, milk and hot chocolate. (Perry, 1999) Consumers at the age from 37 to 55 have started paying more and more attention to food products and becoming health cautious. There is a big population an age range known as baby boomers. As many are reaching in advanced age of life, they are becoming more cautious about their health and calorie consumption Coca Cola is considered to be contain high calories. It will continue to influence soft drinks sale at the cost of increased demand for whole healthy drinks. Increase of awareness among consumers, experts of public health services and official bodies about the potential problems of health connected with obesity caused by Cola represents a considerable problem for the Coca Cola industry. This major hindrance in growth of Cola has been anticipated by the company. The company recognized that obesity represents a challenge for public health services. Their adherence of consumers begins with wide product line of the company which includes a wide choice of a diet and easy drinks, juice and juice drinks, sports drinks and bottled water. The company has realized in next 20 years sale of Cola drinks would go down substantially so suitable measures are to be adopted for introducing better substitute of Cola and continuous research is in progress in this direction. As there are signs of that "soda and the sweetened drinks are the basic source of calories in the Britons diet", the majority of dieticians advise that Coca-Cola and other soft drinks can be harmful, if it is drink excessively, especially for small children, soft drink consumption competes with, instead of supplements, the balanced diet. Coke contains a lot of sugar and continuous use Coca-Cola can cause problems with health. Being addicted to Coca-Cola also is public health services problem because the Coca-Cola use daily influences body in some years as it contains caffeine contents. (Our company, 2011) Often critics of Coca-Cola on the basis of its ostensibly toxic level of acidity have appeared unreasonable to researchers. The drink has also has caused criticism for its use of caffeine, in connection with possibility of physical dependence. There is also some concern in connection with use a high corn syrup of fructose in manufacture Coca-Cola. Since 1985 in Great Britain, CocaCola has been made with high fructose a corn syrup, instead of glucose sugar or fructose, for decrease in costs. In India there is the large contradiction, concerning pesticides and other harmful chemical substances in production bottles, including Coca-Cola. 2. Coca-Cola In India Listen on this post, the Pharmacist in 1886, manufacture a syrup that if to mix with aerated waste will make a delightful drink which later became known as Coca-Cola through the management of Asa Candler. Coca-Cola Company is well-known for its cola drink in India. Coca-Cola return in Indian market was seen in 1993 after a gap of 16 years. In August, 2006 company Coca-Cola declared that their products pass test, using the European standards and didn't break any laws in India. Nevertheless, Coca-Cola was found, containing pesticides, in 24 times above, than the European standard on the Indian laboratory that Coca-Cola discredit (Burnett and Welford, 2007). Coca-Cola has many factories of bottling which are situated in different places in India sharing considerable quantity of water of local farmers which they need for cultivation and especially during seasonal droughts. The purpose of this qualitative research is to find, through the secondary data analysis , the mutual relations between Coca-Cola leadership in the Indian market and consequences of its offense on

its marketing efforts and what problems face the company in conducting the international business in different territories. The review of the literature and the secondary data collected will define influence of Coca-Cola marketing errors and to recommend the international plan of marketing relations for the foreign markets especially in India and neighboring countries. In this article, I will try to answer following questions: 1. What type of relationship marketing strategy is necessary to repeat business model in the international market? 2. What there will be the best course of actions when the international business deviate value of the company? 3. What to be the best marketing strategy for mutual relations between two different cultures? What was the Problem Coca-Cola and its main competitor, Pepsi Co saturated the UK, USA and Europe markets. CocaCola found out in India there will be a good market for the production because of the big population and cheap labor for their bottling factories. The international markets, as a rule, differs from the local market that demands other marketing strategy and is stronger than efforts of building of relationship. For Coca-Cola there were difficulties to handle protests around its bottling factories by nearby breweries who consumed a similar quantity of water and give equivalent a waste. Protestors targeted Coca-Cola fully owned plants, but the licensed factories had no same difficulties. Requirements of the market is long-term relations between the buyer and the seller for growth maintenance. Baxter, S. (2007 used the term: One-to-marketing, for the description of the theory of marketing of relations because of the owner of business taking into account marketing for individuals. Clients are loyal to sellers with high quality of a product if they equate the price of a product with its cost. The theory of marketing relationship rotates round three aspects. The first aspect is financial stimulus in which the client obtains reward or discounts in exchange for their repeated business. The second aspect is social communications between the company and the client. The third aspect is structural interactions. Importance of relationship marketing is strong communication between the company and clients in which results obtained are long-term relations that allows the owner of business to the plan, the action and to give products wanted and repeated by loyal clients. Coca-Cola target clients who will win from the products in exchange for favorable and repeated buying. Coca-Cola started bottling plants factories in India to strengthen its relations with the Indian customers in exchange for their loyalty. Nevertheless, Coca-Cola was abusing which had seriously affected its relations with the Indian consumers. A problem in that was, Coca-Cola in Indian plants consume water when it is a scarce resource, pollute underground waters and dump of dangerous substances, as lead and cadmium, while bottled drink contained pesticides . The Indian states had forbidden Coca-Cola sale in government bodies and pollution council of Kerala closed bottling factory after long protests of inhabitants. Coca-Cola recognized their infringement of the safety standards, without accepting toxicity test at one of their burial place. Research revealed that Coca-Cola Company were in difficult problems in India and was not considered similarly to the local enterprises. Coca-Cola lacks and offenses had been documented and also are confirmed, which obliges the company to take measures according to the international norms and business ethics. Values Coca-Cola demand a management that is: courage that the form the best future and integrity should be real. Coca-Cola Company faced situations in India which obviously contradict with its mission and values. Such situations demand the management right to recognize them, responsibly to operate for correction of offenses and to establish measures on a non-admission of its repetition. Research will make a number of recommendations for achievement of the above-stated requirement and the recommendation which Coca-Cola either pay for elimination of damages or to restore a damage done in India. The Regular customer won't suffer infringements, and won't forgive for errors of sellers though they are made with good intentions. The study reveals that conducting business on foreign land is no doubt difficult task for international organizations but can bring large profits if business is conducted by them with ethics and morals of business. (Zikmund, 2003) An objective of this research is to reveal major factors of management for creation of the strong

international plan of relationship marketing in foreign markets. Coca-Cola followed a principle, let the buyer be vigilant which is an opposite principle of relationship marketing in which the seller tries long-term relations with the client. Indian clients are consuming drinks containing harmful substances, without knowledge of such pollution. Coca-Cola had chosen not to do standard tests and when tests were conducted, the results haven't been published for clients. Coca-Cola started with its distribution model in India with the big success but damaged its brand name, and lost many clients to local competitors. Coca-Cola should carry out it is well structured managements of mutual relationship with clients to polish the brand and to operate ethically just as it does in the USA and Europe. The relationship management efforts should be adjusted with the Indian culture and the address the political and religious distinctions in area. (Jansen, 1985)

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