The primary objective of this Research Analysis Project (RAP) is to satisfy the Oxford Brookes University BSc (Hons) in Applied Accounting. The project topic area chosen is Topic 5, `Effects of globalization of an organisation.'
The organisation chosen is The Coca-Cola Company, which currently operates worldwide in more than 200 countries and markets more than 500 brands and 3,300 beverage products. These products include a variety of sparkling beverages and still beverages, such as waters, juices and juice drinks, teas, coffees, sport drinks and energy drinks. The company has 4 of the world's top non-alcoholic sparkling beverages which are: Coca-Cola, Sprite, Diet Coke and Fanta. (The Coca-Cola Company, n.d)
Background of the organisation
Coca-Cola was first founded by a pharmacist named Dr. Stith Pemberton on May 8, 1886 in Atlanta, Georgia. Thinking that "two Cs would look nice in advertising", Frank M, Robinson, Dr. Pemberton's partner suggested the name and penned the famous trademark "Coca-Cola". During its first year sales, average sales were 9 cups per day. The potential of his drink was never realized and it was eventually bought by Asa G. Chandler. As a firm believer of advertising, it helped boosted syrup sales almost tenfold. In 1894, Vicksburg, Mississippi Joseph A. Biedenharn was the first to sell bottled Coca-Cola. In 1899, large scale bottling was made possible. Over the next 20 years, bottling plants grew to more than 1,000. Due to mass imitation in the early 1900s, it gave birth to a new unique contour bottle designed and trademarked by the Root Glass Company of Terre Havte, Indiana in 1916. In 1919, Ernest Woodruff and a group of investors purchased The Coca-Cola Company for $25 million. Mr. Woodruff was strict on product quality, highly trained service people were used to operate the soda fountains for consistency. Mr. Woodruff's greatest contribution of all was the vision of Coca-Cola as an international product. It has now become one of the world's most famous carbonated drinks. His vision of international potential of Coca-Cola is still implemented and refined by the company, its bottlers and its subsidiaries, building the business into an unparalleled global system providing a simple moment of pleasure. (The Coca-Cola Company, n.d)
1.1 Reasons for choosing the topic
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The reason for this topic to be chosen is because it shapes the way the world it is today, without globalization, technology advancement, communication networks, fast-food, culture of living, would differ to the most basic.
Besides that, I would like to understand the cultural and negative effects globalization has on the world. Globalization tends to make the world more advanced at the cost of the natural environment. It was also chosen as this topic is challenging as it requires me to carry out a detailed research on the organisation and its overall effect of globalization it has on the world.
Furthermore, it would be seen as a chance to use knowledge gained from P3 Business Analysis and P5 Advanced Performance Management and apply it to practice for a successful research project to be carried out.
1.2 Reasons for choosing the organisation
The organisation chosen is The Coca-Cola Company because it is a popular brand name known worldwide. The corporation is one of the pioneers of soda drinks which are now consumed worldwide by all different age groups.
Besides that, I would like to know how the organisation successfully evolved into a multinational corporation and how are they going to continue this in the future. It is also one of the favourite soft drink for all ages since it has the highest global market share as they ranked first according to researchers. (EuroMonitor International, n.d)
Another reason for choosing the Coca-Cola Company is that they are great in producing fresh and creative ideas for the soft drink market that no one has thought about. Such as the six-carton packaging, which became the industry's most powerful merchandising tool.
1.3 Project objectives and research questions
This project aims to achieve the following objectives:
To evaluate the effects of globalization the organisation has on the world. There could be positive and negative effects as a result of globalization. This could be due to the jobs it provides to people worldwide or due to the fact that people become obese if too much sugar is consumed.
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To assess the job opportunities created worldwide due to the globalization of The Coca-Cola Company. Without the globalization of the Coca-Cola Company, a lot of people will be without a job. The state of an individual influences the economy of the country. As an example, a well-developed country is said to be stable as its people have sufficient jobs.
To understand why did The Coca-Cola Company globalise to become one of the largest non-alcoholic beverage provider in the world. This could be due to the firm belief of the owner on the product.
How and why did The Coca-Cola Company globalise?
How did globalisation help The Coca-Cola Company to become the market leader in the beverage industry?
How did The Coca-Cola Company's globalisation efforts impact upon the organisation?
1.4 Overall research approach
All relevant information required would be collected for the research to be carried out. This includes the company's annual report, which has all financial and non-financial information of the organisation, The Coca-Cola Company. Such as the company's consolidated financial position and consolidated statement of comprehensive income. In addition, information about the company's effect on globalization was gathered from news reports, journals, and company announcements.
The second part of the project consists of analysing the effects of globalisation and how did the company globalised, using the SWOT analysis and Ohmae's five Cs that helped the Coca-Cola Company to become a multinational corporation. In part 3 of the project, Ohmae's five C is applied to assess the why the company globalised. Graphs and tables were also used to better elaborate the five Cs in detail. Besides that, an analysis of positive and negative effects of globalisation of the company is done using the SWOT analysis. Strengths and opportunities are classed under positive effects whereas weaknesses and threats would be the negative effects.
After concluding part 3 of the project, a conclusion and recommendation was drawn on the globalisation of The Coca-Cola Company. The conclusion determined whether project objectives and research question which were agreed in part 1 of the project were fulfilled. Based on findings, a recommendation is then drawn to improve the overall company performance, which is to exploit its strengths and opportunities and to mitigate its weaknesses and threats.