Ib Coca Cola

Exporting Gives us instant market access into a new market making us able to maximize revenue in a short amount of time. A disadvantage of exporting is the tariffs that foreign government pose on imports which drive the cost up. And in some instances being viewed as an outsider is a disadvantage.

Exporting, licensing, and using trading companies are preferred modes of international market entry for firms with a(n) ____ structure.

2. What options are available to you? How does each of these options serve your personal interests, those of investors and those of employees?

Dunnings Eclectic Paradigm model best describes what had attracted Tesco’s internalisation entering the American and Japanese markets. The Eclectic Paradigm consists of three factors that explains where, how and why the internationalization of a firm entering a new market. Ownership, location and internalization are the three dynamics which makes up the OLI (Dunning, 2001).ownership advantages can be either asset-based or transaction-based, in relation to Tesco the ownership advantage in which the firm had acquired was the lean supply

Answer: d. With licencing, a company provides technological know-how to a licensee in the foreign country. Although quality control can be a factor in the licensing contract, the licensee, not the licensor, would have the actual control over product and service quality. Distractors: a) An exporting strategy would result in increased cost savings from economies of scale by producing the product at a single location. b) An advantage of a strategic alliance is that it strengthens the competitiveness in a foreign market by allowing the parties to focus on what they do best. c) An advantage of an exporting as an entry strategy in a foreign market is that is has the lowest degree of risk. Establishing a subsidiary in the foreign country has a high degree of risk.

Basically, there are different ways to enter into the foreign market such as exporting (Firms products

One of the risk MNCs faced is the financial risk involved with a foreign exchange market, specifically transaction exposure. The MNC is exposed to this risk when they have to make payments or receive payments in another country’s domination currency (Doupnik and Perera, 2015). The currency transaction can create uncertainty with respect to the cash flow associated with the fluctuation of the exchange rate. For example if the MNCs made a sale today in Greece for 100 euro. Then when they receive payment three months later, the foreign exchange rate has decrease in value, and as a result of the fluctuation in foreign currency exchange rate the company has a loss when it convert back to its’ home currency and thus has exposed to the transaction risk.

Peng (2014) notes that the direct-export model provides numerous benefits for the business. First, exporting opens opportunities for economies of scale to increase. Mules (2014) states that by increasing the number of products produced, the cost of producing an individual item decreases. In other words, as the business increases production to meet the demand of a larger client-base, their cost per item decreases. Exporting provides a rapid increase in the economy of scale of the organization’s operations (Peng,

However, while the OLI paradigm centers around a single expansion decision, the Uppsala model views internationalisation as a gradual process with an incremental increase of knowledge of the target region and subsequent commitments in that region. Hence, internationalisation occurs faster in the OLI paradigm. Another difference between the two models is their respective focuses. The OLI paradigm focuses more inward, on the attributes of the expanding company, comprising ownership, location, and internalisation advantages and argues that companies need to combine these to minimise risk and succeed with FDI. On the other hand, the Uppsala model concentrates on the actual process of internationalisation, stating that companies should begin with low risk commitments - such as exports - to acquire knowledge of the target country and then increase their commitment based on the gathered knowledge. With higher commitment, more knowledge can be gained to be used for further commitment (Peng & Meyer

Eclectic paradigm is a theory that provides a three-thiered framework for a company to follow when determining if it is beneficial to pursue direct foreign investment , the eclectic paradigm is assumed that institutions will avoid transactions in the open market when internal transactions carry lower costs in order for a direct investment in a foreign country to be successful.

Third, exporting SMEs would be well advised to observe hire and involve locals within your organization at the earliest opportunity when crafting their export strategy. Exporting allows managers to exercise operation control but does not provide them the option to exercise as much marketing control. An exporter usually resides far from the end consumer and often enlists various intermediaries to manage marketing activities. For example, direct selling is often used when SMEs begin to export. Direct selling involves sales representatives, distributors, or retailers who are located outside the exporter's home country. Direct exports are goods and services that are sold to an independent party outside of the exporter’s home country.

Historically, many companies and corporations have received recognition for their growth and success over time. However, although praised, discoveries of controversial issues lead consumers to question various companies’ ethics and operations. Coca-Cola, or simple coke, has existed for over a century, originating in Atlanta, Georgia in 1892, and eventually expanding and providing drinks internationally. Today, the company produces concentrate, which then sells to Coke licensed bottlers internationally; and ultimately ending up sold to retail stores and vending machines for consumers to purchase. Along with the regular “coke”, the company has also been able to produce other cola branded drinks including water, energy drinks and coffee. The

Assess the vulnerabilities of the quality and quantity of water sources for each of our bottling plants and implement a locally relevant water resource sustainability program by the end of 2012.

Therefore, the company will have to study the markets that they would be interested in exporting to, which are, Portugal, Denmark and Switzerland. The firm will have to decide which country will provide a better return on investment and meet their needs and create intelligent strategies in order for the investment to be worth it. Hence, if the firm doesn’t become more active in the international business, they will miscue the opportunity of growing as a company overall and won’t become more profitable (Cuccioli et al., 2007). The firm will be considering having a subsidiary, joint venture, indirectly or directly exporting and will be focusing on the European market since they have a mature market (Cuccioli et al., 2007).

H There is now a consensus of opinion that the propensity of an enterprise to iNTRoDucTtoN engage in international production-that financed by foreign direct investmentThe Underlying rests on three main determinants: first, the