Term Paper: Coca Cola Company in Foreign Markets

Sample Term Paper

Words 1,362

This term paper s on Coca Cola Company in foreign markets. It may well be that the company over the years grew too complacent about its ability to manage both its domestic facilities and its international ones because of its established success in these areas.

It may well be that the company over the years grew too complacent about its ability to manage both its domestic facilities and its international ones because of its established success in these areas. This complacency was reflected in (and also no doubt exacerbated by) a highly centralized and hierarchical management structure that made non-U.S. Coca Coca facilities very much the poor stepchildren of the company. This centralization of power, which had worked when the company was smaller and also when American corporations were more welcome overseas than they have been in the past decade, was no longer working nearly as well by the end of the 1990s.

During the 1990s, Coca Cola suffered in Asian and European markets, in large part because local authorities in those nations did not believe that the American company had the best interests of foreign consumers at heart – even in countries in which Coca Cola has its own facilities or in countries in which the company had bought previously local beverage companies. The perils of the company’s highly centralized and top-down management system were especially apparent during a contamination scare in Belgium in 1999. The Belgian government had recently faced a number of problems that made it eager to turn the spotlight on Coca Cola; and company officials, far removed both from the problem and from an understanding of local (Belgian) political dynamics tried to sweep the problem under the rug rather than addressing the issue forthrightly:

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