UNGC: Strategic Expansion of Businesses
Country’s Relationship/History to the Topic:
In 1886, Dr. John S. Pemberton and his partner Frank M. Robinson created a distinctive tasting soft drink that shortly became known as “Coca-Cola.” The new beverage quickly spread throughout Atlanta, Georgia, under the leadership of businessman Asa G. Chandler (“Coca-Cola History”). At the turn of the century, Coca-Cola started expanding throughout the country and globalizing to Latin American countries. The first abroad bottling companies were built in Cuba and Panama as the U.S. military expansion to these regions increased the demand for Coca-Cola branded drinks. Shortly after, Coca-Cola…show more content… However, the globalization of the Coca-Cola Company came with consequences. One of the most controversial issues have been the overuse of the water supply, especially in India, one of the main sources of water for Coca-Cola beverages. While Coca-Cola was forced out of the country in 1977, it has since then returned in 1993 and installed over fifty water pumping stations. These water-pumping stations have been polluting the clean water, harming the well-being of the Indian citizens (“Controversies”). In terms of tax inversion, the Coca Cola Company’s headquarters is still located in the U.S., abiding by all its corporate responsibilities, but its keeping its earnings offshore in places like Bermuda and the Cayman Islands that levy no corporate income tax (Gunther).
Solutions for the Topic:
One of the key components in achieving productive globalization for a business is to develop a sound entry strategy and operational design before launching its products in the competitive global market. This entails understanding the context of the new market and the consumer demand in order to ensure that the company makes at least a normal profit to not incur any losses in this new investment (“Our Solutions”). The reason why eBay struggled to expand in China was that it had failed to assess its main competitor, TaoBao, and its appeal to the consumers. Similarly in Japan, eBay failed to adjust its strategies