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coca cola
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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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