Answer to Question #195986 in English for Hassan Ali

Question #195986

Analyze the following:

* Analyze how international expansion will add value to the company;

* Assess the company’s internal capability for international expansion;

* Suggest what market(s) it should enter and how;

* Suggest which International strategy you will use to market your product or service

* Identify possible challenges that may arise in the process of international expansion. Format of Report


What is required in the report:

1.Introduction (Company history and International operations)

2.Organizational predisposition

3.SWOT ANALYSIS on the basis of Michael Porter’s five forces model.

4.Corporate culture, Cultural Environment

5.Effect of culture on Strategic management

6.International political environment

7.Economic Integration

8. The effect of COVID 19 on IB (with respect to your chosen product)

9. Strategic Analysis on the basis of Porter’s Diamond Model (Theory of National Advantage).

10. International Strategy 11. Conclusion.

Expert's answer

Company's history may seem uninteresting to some individuals but it can sometimes play an important role in in building trust and respect. Every company has been shaped by moments of inspiration perseverance courage or luck hence important to know the company's history. Coca-Cola is an example of a international company, the company manufactures Coca-Cola drink which originated in 1886 by an Atlanta pharmacist, John S . Pemberton at his Pemberton chemical company. In 1899 the company signed its first agreement with an independent bottling company ,which was allowed to buy syrup and produce, bottle and distribute the drink. Its the world's leading soft drink maker operating in more than 200 countries.

The company faces challenges in today's market as result of driven changes and socioeconomic changes. Hence internal and external analysis is done to determine the capabilities of the company and understand the impact of environment. The huge advantage with Coca-Cola company is that the company is able to set their own prices with suppliers, switching cost are very low hence ability for the company to change their suppliers is easily done.

The Coca-Cola company has a strong brand identity ,largest distribution network, highest market share and various product line however have weakness like product recalls damaging brand image and brand failures. Coca-Cola have opportunities in new product penetration, potential for growth and their is increasing water consumption on globally this reflects increased sales. The company also face threats like increasing cost of raw material, reduced demand world wide to health concerns and purchasing power.

The Coca-Cola company is mission driven focused more in refreshing mind, inspiring and optimism and this makes them unique. The company aims to give back at least one percent of its annual for charitable causes annually. they also enable associates to participate in professional and personal growth opportunities through training and education community project. The change of culture adversely affects the company as the management is required to be flexible anytime it will change and this hinders strategic plans. The company has to to understand and adjust to the rules of culture as there is no way the company will do against the norms of the society.

The international political affects Coca-Cola company since it operates in different countries in the world which have different rules and regulations .The company has to follow to avoid breaking the law because of this they are constantly monitored by the governments and health authorities of different countries on ingredients used to manufacture the drink. The economic integration also affects the company either negatively or positively some countries at sometimes put trade barriers or restrictions on other countries from exporting or importing while some have established trade unions. In countries with the restrictions make the sales of the company reduce as they cannot trade with them freely ,high import duties charged on entry discourages them from selling their products.

Covid- 19 have adversely affected the company because of restrictions made to control the disease. A greater number of individual lost their jobs as result of the pandemic due to rules put to regulate the disease since the pandemic affects almost the whole world. The company as been recording losses and low sales since the outbreak pandemic came into the countries. Despite the challenges faced since the outbreak the management is taking necessary measures to cope with the situation.

Strategic analysis on the company shows the company has availability natural resources such as water channels and readily accessible by the company and the don't need to be developed or created but refined for usage. The company have capital resources which support their services available through equity capital and debt financial resources ,availability of skilled manpower who handle technology innovation to achieve economies of the scale, presence of support and related industries causes positive impact on the company to produce quality products.

Coca-Cola pursues an assumed global strategy ,allowing for differences in packing ,distribution, and media that are useful to a particular country. Thus the global strategy is localized through a specific geographical marketing plan. Acceptability, affordability and availability have contributed toward the success of the company .The company follows the local strategies and is able to deliver as per needs of local people in different parts of the world.

In the conclusion of above the company being the world's number one soft drinks they face challenges however, their management is strong and have skills to cope with the challenges. Their plans focuses on present and future, the company is more flexible and this enables them adopt easily with any changes that occurs. They produce quality products which meet customers needs at avoidable prices and readily accessible by the customers.

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