coca cola

    Cards (19)

    • coca cola is...
      the number 1 manufacturer of soft drinks in the world
    • where is their HQ?
      Atlanta Georgia USA
    • what do coca cola do?
      sell nerly 400 different products in more than 200 countries
    • when was coca cola founded?
      1886
    • how many does coca cola employ?
      70,000
    • what marketing strategy do they use?
      one brand
    • how many TV commercials?
      10
    • advantages of being a TNC
      • strong bargaining position & can negotiate favourable conditions for entry into countries
      • governments offer incentives to encourage TNCs to locate there.
      • labour costs are lower in LEDCs.
      • subcontract out to pre-existing bottling companies to save money
    • positive effects on host countries
      • creates jobs
      • many bottling firms are local so all profit stays in host countries
      • offer training & education
      • attract other TNCS
    • negative effects on host countries
      • low paid, semi-skilled or un-skilled production takes place here.
      • adding to water stress of area as it should be used for agriculture.
      • can easily pull out leaving people unemployed.
      • take advantage of less strict environmental regulations.
      • profits returned to shareholders
      • working conditions harsh - long hours with little pay & no benefits
    • hierarchy
      • manufacture drink concentrate in America aswell as do the marketing.
      • bottlers buy the concentrate then mix it with water & sweeteners then they bottle it.
      • bottlers are in charge of distributing products to retailers
    • growth of coca cola
      • first sold in a pharmacy in Atlanta in 1886.
      • grew rapidly as it moved to other countries -> globalisation.
      • had 2 bottlers in 1900 and by 1920 they had 1000.
      • expansion overseas in 1928 during olympic games when they were presented with the US team.
    • spatial organisation
      • employ 70,000
      • don't always own their factories - subcontract them with others to save money.
      • manufacture drink concentrate in America - bottlers buy it.
      • want access to high earning, large populations so they manufacture their goods close - save money on transport
    • social benefits on coca cola
      • offers training & education to those who have received little.
      • joined forces with celebrities & national events to spread importance of recycling for sustainable futures.
      • run community schemes in LEDCs, e.g., 'the empowering 5 million women entrepreneurs by 2020'.
    • economic benefits of coca cola
      • invested $1.5 billion in Russian economy, including construction of manufacturing plants & improving infrastrucute.
      • many bottling firms are local companies so all profit stays in host countries.
      • create many jobs in LEDC's - e.g., $200 million bottling plants in Burma creating 22,000 jobs.
    • environmental benefits of coca cola
      • coca cola Africa foundation is providing at least 2 million across Africa with safe water & they also fund projects to improve sanitation & Hygiene.
      • 85% products in recyclable bottles & cans.
    • social impacts from coca cola
      • working conditions harsh & without air con in tropical countries.
      • workers have poor pay & don't receive benefits - $10 a day.
      • In Northern india, coke has lowered the water table leaving the area dry so farmers have to shut farms.
    • economic impacts from coca cola
      • LEDCs rely too much on them & they could just leave suddenly creating unemployment.
      • profits return to shareholders, very little remains in host countries - economic leakage.
      • LEDC workers work long hours for very little pay.
    • environmental impacts from coca cola
      • depletion of local ground water due to utilisation of natural water resources by the company pose serious threat to many communities.
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