1. Running head: WEEK FIVE - GLOBAL EXPANSION FACTORS 1
Global Expansion Factors: Coca-Cola
Matthew Hallowell
ORG/581
May 2ND
, 2016
William Gillis
Matthew,
Simply put – this is SUPERB work! Your well written and well researched work demonstrates
that you have mastered the course concepts. Aside from a couple of suggestions that I made
for your consideration the only issue that needed to be addressed was that you used only two
peer-reviewed journals instead of the required four. That issue aside this is excellent work!
Word Count – 2,468 Plagiarism Index – OK (1%) APA - OK Writing Standards – OK
You earned 15.75 out of a possible 16 points

2. WEEK FIVE - GLOBAL EXPANNSIION FACTORS 2
Global Expansion Factors: Coca-Cola
To open, Coca-Cola is already an international company that has operations, locations,
and markets in which they serve in over two hundred countries around the world. As a company,
Coca-Cola has continued to spur growth and development around the world through their 2020
Vision, “We must get ready for tomorrow today”. Through this vision, the company has tried to
create a roadmap for furthering brand recognition with customers around the globe, along with
promoting their new “One Brand” strategy. A business concept that is built to showcase Coca-
Cola’s core brand products tying in the classic red design with new product packaging that
connects original Coke products like Coca-Cola, Diet Coke, Coca-Cola Light, Coke Zero, and
Coca-Cola Life, to help further brand awareness among consumers around the world.
Ability to Obtain New Financial Sources
When Coca-Cola decides to enter a new market, research begins within that market or
region first, and as part of that data, the company will identify potential local business partners
and financial institutions useful to help setup, or even fund new operations. The company must
establish working relationships in the region, and convert product pricing into the local currency
for consumers to understanding product pricing or value savings offered. Also, by opening a new
operating location in a new market or region will allow the company to pursue local investors to
help fund the start ups needed in the area to make Coke products available for consumer
purchase. (Kribikova, P., 2016)
Competitors
Coca-Cola can take two different approaches regarding competitors. One, the company
can fund a research project to identify all potential competitors within the new market or region.
Once determined, they can research their business process, products, pricing, brands, and their

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success among local consumers. Coca-Cola then must consider: what is working, what is not
working, are all customer demands met, if not, why, what are they, and how Coca-Cola can
satisfy those wants to capture more sales and maximize profits in the new market or region.
Two, if applicable, Coca-Cola can fund a different type of research project to analyze
how other competitors have entered this new market or region in the past. This project will only
work if there is already an established finished beverage soft drink competitor rivaling Coke that
has successfully entered this new market or region internationally. The company can then
research: how this competitor entered the market, identified other local competitors, acquired
funding, handled product pricing, developed marketing campaigns and appealed to new
consumer groups with very different values than those in the US. (Coca-Cola Brands, 2016)
Product Life Cycle
First with the introduction phase, Coca-Cola will need to create brand awareness in the
new market or region among consumers, competitors, business partners, suppliers, and investors.
For Coke to bring its products to a new market, product branding is essential, to develop product
quality, something that makes it stand out from other similar products in the new area.
Next, the company must determine appropriate product pricing that can be set in two
ways. One, a lower price can be set to initially capture more sales and gain new market share
quickly. Or two, fair to high pricing set in comparison to other similar products offered by local
competitors that would allow Coke to recover all initial costs spent in bringing their products to
this new market or region internationally. (Jones, G. R., 2013)
Once product pricing is selected, Coca-Cola must consider how they will approach initial
distribution within the new market or region. As an example, and to test consumers, Coke can

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work with local grocery stores to carry their core soft drink products on a small quantity basis to
test consumer reactions on taste, quality, quantity, portion, and price.
During the growth stage, Coke will continue to expand brand awareness and capture
more market share by being competitive with a strict control on product distribution to match
consumer demand changes in the market or region. Also, to continue to further brand awareness,
Coca-Cola can slowly begin to add on to the core products consumers can purchase in the new
market or region internationally. (Coca-Cola Brands, 2016)
During the maturity stage, Coke must enhance the value consumers have in buying Coca-
Cola products over their local competition. Different sales or the release of manufacture coupons
actually saving customers money when buying Coke products is a good program. This value
creation will help influence customers with that choice to buy Coke products over any other local
competing brand or products.
Lastly, with the decline stage, Coca-Cola will have several different business options to
help keep consumer demand for Coke products high over any other local soft drink product in
the new market or region internationally. This phase requires new, more targeted, marketing,
advertising campaigns designed to reach different, or more consumer groups than they have thus
far. The company can continue to offer additional brands in the new market or region that would
allow the company to compete in different areas within the finished beverage market like
offering: bottled water, health drinks, sports drinks, or other kinds of soda not yet offered for
consumer purchase. (Kribikova, P., 2016)
New Needs of a Customer
Entering a new market or international region could bring about a lot of change in trying
to understand and appeal to new customer groups or audiences not considered, or experienced

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before. Coke to become acquainted with the cliental of the new market or region internationally
should open a business location within the local community. This will allow the company to be
able to hire local employees who are more knowledgeable on the market or region, and can break
down customer demands into wants and needs, so Coke can better understand their new base.
The company should also consider holding customer focus groups at their new location in the
market or region, which gets employees and different levels of management exposure and time
with the local public to fully understand and relate to their new consumers, their wants, needs,
and demands. (Daft, R. L., 2016)
Regulations
Regulations are going to depend on two areas; one would be any rules or regulations that
would apply to a US company doing business internationally. This area may include, but will not
be limited to, world trade taxes, import or export taxes, and the compliance of a safe, controlled
trade route from the US into the new market or region. This concern is part of the US’s
antiterrorism movement, demanding companies have tighter control over their trade lines and
shipping regulations to comply with any US international trade laws.
The second area of regulation would be in the new market or region in which the
company is trying to do business. Coca-Cola will need to allocate funds for local laws and
regulations research and correlation with internal operations to ensure the business is in
compliance. These same regulations would apply to a company’s location within a new market
or international region as the laws of the land will apply. (Kribikova, P., 2016)
Sustainable Development
Sustainable development is a leading cause Coca-Cola champions, especially in the area
of water use and water conservation by market or region. This is accomplished through research

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and development into a market or regions water usage as a whole. How is water being used in
total, what other companies in the area use water for production or manufacturing, where does
the water that is used come from in the area, and is any being returned to its natural source? By
researching and analyzing all these pieces, Coca-Cola can develop a water usage map for the
market or region to determine how and where water use can be more efficient.
Changing & Shifting Demographics
Coca-Cola entering a new market or international region will cause a shift or change in
customer demographics used for the development of marketing and advertising campaigns.
These demographics include age, gender, income, interests, buying trends, consumer behavior,
and location on the market or region, to name a few. These demographics allow Coke to break
customers down into target audience groups for specialized, specific, marketing and advertising
campaigns. (Jones, G. R., 2013)
Social Consciousness
Social consciousness or also known as social awareness is the shared knowledge of
community problems, and this will vary by market, region, or even country, and are almost never
the same. Coca-Cola will need to research the social issues that are affecting the society within
their new market or region, develop a social reform or awareness program that helps to indentify
and address them in the area while working toward the best solution. The solution may involve
company-hosted events to raise money or spread awareness of these social issues within a
community. Coca-Cola already champions many social campaigns in many different countries
around the world and is leading the cause for water conservation across the globe.
Demographics

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Demographics is known simply as the study of a market, region, country, or community,
based on classifying factors among different consumers like gender, age, race, education level,
employment, income, or even economic status. These factors provide companies like Coca-Cola
the opportunity to learn more about a market, region, country, or community’s characteristics to
group consumers into target audiences for marketing and advertising purposes. Coca-Cola, using
these types of demographics and classifications, can ensure they are appealing to every possible
target group among consumers. (Jones, G. R., 2013)
External & Internal Environment
External and internal environments provide different events that can affect negative or
positive business operations or performance. Companies like Coca-Cola must be aware of not
only internal environments that can affect day-to-day business operations but also external
environments.
External environments are events that happen outside an organization, but may have a
negative impact on business or operations. The external environment is based on the conditions
of the new market, region, or country, Coke is considering, and may include government policies
and regulations, competition, economy, political issues, or the soft drink industry. The company
has minimal to zero control over an external environment. (Daft, R. L., 2016)
Internal environments include the different working departments and events that happen
inside an organization that will also have an effect on business or operations. Internal
environments include Coke’s finances, management changes, the company’s core culture,
morale, or employee relationships. Coca-Cola has more control over their internal environment
to make changes that improve business or operations then they do over external environments.
(Boundless. "Business Stakeholders: Internal and External.")

8. WEEK FIVE - GLOBAL EXPANNSIION FACTORS 8
Psychological Needs of Current Employees
Coca-Cola being a large, historic company has already faced the issue of having to
understand the psychological needs of employees to ensure motivation and performance remain
high and managers can cultivate real talent to stay competitive. Coke already has employee
rewards and recognition programs that work to empower employees and spur motivation for
improved organizational performance. (Coca-Cola Brands, 2016)
If Coke opens a working location in the new market, region, or industry, current
managers and senior employees should relocate to the new area to help with new employee
training programs. These efforts will help to refine the employee rewards and recognition
program Coca-Cola customizes to drive motivation, and innovation among all employees.
Cultural Differences of Employees in the New Country
As part of the company’s initial market or region research, Coke must learn the culture
variations that exist in the new market, region, or country they are considering. All current Coca-
Cola employees require training on the basic ins and outs of this new culture and the slight
variations that may occur between co-workers for not understanding cultural differences or
diversity. (Daft, R. L., 2016)
The company should create events where employees of various cultures can meet and
mingle, either at the new location, Coca-Cola headquarters, or offsite, to build collaboration and
teamwork among employees of different backgrounds, diversity, and culture to instill a common
understanding among all company employees going forward.
Three Potential Risks
One: Coca-Cola is going to face a major risk by expanding operations into a new market,
region, or country in which they do not currently reside. All operations have to be setup from

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scratch based on research that Coke conducted in the new market, region, or country. A plan
developed with a systematic process on how the company is going to prepare for this change,
and implement the change to mitigate the potential for risk.
Two: Coca-Cola may not be able to develop the key business partnerships they need to
ensure they have enough funds or resources to bring their core products to a new market, region,
or country. This development will also be a part of the research Coke conducts on the new
market, region, or country to help secure partnerships and investors to bring its core products to a
new market, region, or country successfully. (Coca-Cola Brands, 2016)
Three: Coca-Cola may enter a new market, region, or country that does not have
adequate supplies of natural water sources and thus must create water conservation programs for
the new area. This issue would follow what Coke has done in the US by looking at water usage
and conservation by region or city and see where or how it can be improved. Also, the company
can share its conservation technologies on being able to filter and return one hundred percent of
all water that is used in production back to the natural resource used.
(Mahoney, J. T., & Pandian, J.R., 1992)
In closing, Coca-Cola is already a leading example of how a company can gain
international market share successfully, and operate in over two hundred countries around the
world. The company has created a company culture that is rich with diversity, but also works to
connect all Coke employees together by a common bond regardless of which location or country
they work. Lastly, Coke is pioneering water conservation efforts for not only the soft drink
finished beverage industry, but also understanding water usage by market, city, region, or
country, analyzing how more water can be conserved, filtered, and returned to its natural
resource or environment.

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References
Boundless. "Business Stakeholders: Internal and External." Boundless Accounting. Boundless,
2015 Retrieved from https://www.boundless.com/accounting/textbooks/boundless-
accounting-textbook/introduction-to-accounting-1/overview-of-key-elements-of-the-
business-19/business-stakeholders-internal-and-external-117-6595/
Creating an effective organizational structure. (2014). Times 100 Case Studies, 1-4.
Coca-Cola Brands. (2016).
Retrieved from: http://www.coca-colacompany.com/brands/the-coca-cola-company/
Coca-Cola Company. (2016) Our Company; Mission, Vision, & Values.
Retrieved from http://www.coca-colacompany.com/our-company/mission-vision-values/
Coca-Cola Stakeholders. (2016).
Retrieved from: http://coca-cola-remodel.tripod.com/id27.html
Daft, R. L. (2016). Organization Theory & Design (12th ed.). Boston, MA: Cengage Learning.
Jones, G. R. (2013). Organizational Theory, Design, and Change (7th ed.). [University of
Phoenix]. Retrieved from
https://phoenix.vitalsource.com/#/books/9781323257234/cfi/6/6!/4/2/46@0:0

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Kribikova, P. (2016). ORGANIZATIONAL STRUCTURE AND PERFORMANCE. Aktual'Ni
Problemy Ekonomiky = Actual Problems in Economics, (175), 109-118. Retrieved from
http://search.proquest.com/docview/1762414059?accountid=458
Mahoney, J. T., & Pandian, J.R. (1992). The Resource-Based View within the Conversation of
Strategic Management. Strategic Management Journal, 13(5), 363-380.