Economic and political environment of Coco-cola

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INTRODUCTION

Globalization refers to the worldwide fact of technological, economic, political and cultural exchanges, brought about by modern communication, transportation and legal infrastructure as well as the political choice of countries to open cross-border links in international trade and finance. Globalization has produced tremendous effects on the statistics of international businesses whether it is food industry or it is clothing industry, car industry or financial institutions, global integration between businesses, government and societies is deepening. The business environment has undergone quick change during the past two decades the graphical effects of technological advancement and innovations have changed the style of businesses across the globe. The changes are been observed not only in the technological sector but also in the environmental field, most particularly in financial environment.(URL1). As there is a wide differences in the political environment and economies in different region therefore multinational companies are  affective while integrating internationally. In the same manner while competing internationally each companies will be affected by various environmental factor due to change in environment. Thus entering into international market a company has to do planning to deal effectively with political and economical environment factors. Now before we go head  with what a multinational corporation have to do to  solve these issues. It will be valuable to define multinational corporation.

“A multinational or transnational enterprise is an enterprise that engages in foreign direct investments and owns and controls value adding activities in more than one country”.(Dunning,1993 P.3)

The model of multinational organization was developed during the 1930s. A grouping of economic, political and social factors forced firms to distribution their operations in response to national market differences. The highly significant element in global economy is the companies growth in terms of size, organization difficulty and the regional differences. To handle these issues multinational organization has to plan there strategies well. The production network is developed through highly influenced interrelated issues.(Dicken,2007)  

The addition of globalization means globalism, complex connectivity, cultural and economic globalization , marketing or strategy term, corporate globalization, spread of capitalism and market oriented economic system.  The managers has to be aware of the wider picture of  these problems before emerging into the new market as there is a vast difference in the global environment and local environment . These multinational corporation has to deal with these factors involves in globalization.

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An organization has to design their route inorder to achieve their business goal. In an organization managers  has to consider many factors such as internal  factors which includes resources, office technology, previous model,  wages and finance, respectively the external factors such as competitors background their technological factors, range of social, economical and government regulations. While designing the international expansion model an organization has to consider all these factors.

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The topic for these essay is Coco Cola carbonated brands to examine the political and economical factors in which it carries out its operations and strategies in United kingdom.  We will also be carrying out its pest and porters five forces analysis through the essay.

 Coco Cola was invented by doctor John Pemberton pharmacist from Atlanta, Georgia In May 1886. John Pemberton mix the coco cola formula in three brass kettle in his backyard. The suggestion of the name was given John Pemberton's book keeper Frank Robinson.          (Url2)

(the selling van used during the initial ...

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