Often the treatment received by these multinational corporations in the foreign land is similar to that of the host country.
In order to find new markets and resources, companies expand their business operations in the potential markets of the third world countries. However, for sustaining in the new markets, they are often compelled to formulate a new set of strategies that is completely different from that of their home countries. In the course of their operations in foreign market, multinational companies face various impediments in the form of alien culture, varied buyers’ taste & preferences, different political, legal and economic conditions. To sail through these menaces, the foreign companies often undergo mergers with their national counterparts as the latter is more equipped in dealing with local issues.
This paper will attempt to analyse the behaviour patterns of multinational companies in the light of different strategies implemented by them in different countries. For this purpose, Pepsi and Coca-Cola have been selected as they are respected names in the world of MNCs. A brief introduction will be given in the beginning of the project which will attempt to analyse its objectives and organisational structures. It will be followed by a discussion on their global business and internal analysis which will not only help to identify their basic nature but will also provide an overall idea of their situation in the world market.
The rapid change in lifestyle has suddenly made the beverage industry one of the most profitable in the global market. The two undisputable rulers are PepsiCo and Coca-Cola especially in the ‘cola soft drinks’ section.
PepsiCo is a celebrated brand in the international beverage industry. Formed in 1890s by Celeb Bradham, its main objective was to develop digestive syrup that would be delicious as well. Though it has
Globalization has been instrumental in accelerating international trade and business. Technological and communication development has been a natural consequence of globalization that has…
The author states that the war between Pepsi and Coke goes beyond consumers’ choices on which brand to consume between those produced by Coke or Pepsi. This baffle extends to investor whose main objective is to find value for their investment by maximizing on the returns of their investments and wealth.
It operates mostly in the United Kingdom, North America (USA and Canada), and Mexico. PepsiCo is committed to sustainable growth, which is described as Performance with Purpose; it is focused on producing healthy financial returns as well as giving back to the community the company serves.
Bargaining power of Buyer The bargaining power of the buyer is high since the switching cost associated with such products is very high. Hence differentiation is the main strategy to be followed by the company so that they can keep the buyer loyal to themselves due to taste, specificities and reputation.
The industry has seen many ups and downs through ages and arrived at the maturity stage. For last four years till 2006 Coco Cola Company had been facing problems in the market that might be cyclical. The company is trying hard to retain the leadership position they had for ages.
The paper analyses the situation to uncover key considerations and then further establishes corporate and marketing objective and suggests a plan for achieving goals.
2) The Coca-Cola Company 2009 Second Quarter and Year-to-Date Results (2009)Retrieved 7 December,2009 31
The process of distribution of Coca Cola’s products from the bottling plants to the ultimate consumer consists of a very long supply chain. The main constituents of this supply chain are bottlers, transporters, distributors and retailers.
The vision of the company has been to increase return of the shareholders, while being watchful of its overall accountabilities. Coca-Cola also attempts at introducing a collection of beverage brands that anticipates and fulfills the needs and
to stay ahead of the pack due to its dedicated staff especially those in the advertising and marketing department who have developed very innovative methods to sell their products.
Coca cola has made huge strides in the international market and has come up with products to suit
s Pepsi and Coca Cola, it also presents definite challenges because the Millennials in both China and India, who are citizens that were born after 1990, have been exposed to global forces to a larger extent than any generation before them. This means that they wholeheartedly
In author’s opinion, the company is not basing its pricing on the cost-plus basis. It is mainly dependent on customer loyalty and the fact that it has managed to maintain the high level of competition for a longer time than its competitors. It sets the higher prices with the knowledge that it produces one of the best qualities in the market.
2 pages (500 words)Assignment
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