TNC : COLA

• Background of Coca-Cola

  • number 1 soft drink manufacturer with products found in every country
  • sell over 400 products , 70% of sales generated outside North America
  • 139,600 associates worldwide - 50% based outside of USA
• economic impacts

  • As a Tnc , they directly and indirectly create employment in host country = positive multipler effect due to tax revenue and further investment
  • invested over $1.5 billion in Russian economy to provide training , construction and improvements to infrastructure
  • YET in LICS workers get minimal pay , profits returned to shareholders with little remaining in host country e.g Puerto Rico
  • ALSO can outsource to a different area with short notice - causing unemployment , less economic growth
• social impacts

  • 2004 - benefitted from child labour in El Salvador , involved 5,000-30,000 kids. Hired as 'helpers' , didn't get worker protections
  • RESPONSE : child workers removed , child labour dropped by 70% in sugar cane industry
  • involved in 179 major human right violations - 9 murders
  • Feb 2010 - lawsuit launched , 8 plaintiffs against Coca with charges of rape , murder and torture
• environmental impacts

  • environmental regulations are less strict in LICS which is taken advantage of
  • 2004 - Kerala in India shut down $16 million Cola plant due to decline in quantity + quality of water provided to locals
  • In Plachimada - Cola plantations were responsible for water shortages , polluting soil and groundwater , destroyed local farms
  • Used 900,000 litres of water a year , problems began in 1999 after their arrival
  • Cola says they've replenished 100% of water used in finished beverages since 2015
• Coca-Cola opened a new 90 million USD new research and development centre in Shanghai in March 2009
• Coca-cola's headquaters in Midtown Atlanta, Georgia
• flagship market

  North America , with 320 million consumers
• example of glocalisation

  Chinese New Year advert in China - took inspiration from Chinese folk art and pushed importance of family
• when did overseas expansion take place?

  in 1923 and 1928 when Coca Cola was introduced to the Olympic games with the US team
• Coca Cola don't always own their factories - subcontract them with other companies to save money
• employs 70,000 people
• postive social impacts

  • offers training and education
  • joined forces with celebrities to spread importance of recycling for sustainable future
  • run community schemes in LIC e.g 'empowering 5 million women entrepreneurs by 2020'
• positive economic impacts

  • created jobs in LIC e.g $200 million bottling plant in Burma = 22,000 jobs
• positive environmental impacts

  • Coca Cola Africa Foundation provides 2 million people across Africa with safe water by 2015 - fund projects to improve sanitation and hygiene
  • 85% products are in recyclable bottles and cans