Challenges Globalization Presents to International Business

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No one can deny that today’s world presents unique challenges for the present and future workforce. Politicians, professors, and business professionals all have different opinions on whether globalization is good or bad. In this activity, you will solidify your understanding of globalization and how globalization affects international businesses. For this discussion, identify an organization in your city, state, or country that promotes globalization.
For this discussion activity, respond to the following prompts.
–  Provide a clear and specific explanation of some of the global actions advocated by the institution that you have identified.
–  Describe how this institution facilitates international trade. Is there e-commerce? Are actual goods transferred?
–  Based on your review, explain what the biggest challenges could be to this institution operating globally.
In response to your colleagues:
–  Compare or contrast specific details of your institution to theirs; i.e. if your institution had a technology focus, you might highlight that and compare it to your colleagues’ focus.
–  When reviewing your colleagues’ post, think of the globalization barriers. Are there items you can link to?
–  Do the institutions that help manage globalization (IMF, WTO, etc.) affect this firm?
Colleagues 1:
Globalization is nothing new. It has been going on for centuries. Before the time of electronic and airplanes, travelers set sail to travel afar in search and to purchase salt, spices, and gold to be sold in their country. Within the past few decades, there has been an increase in cross-border sells and trade. This evolution has increased economic development and financial opportunities overseas. “Through globalization, companies can gain a competitive advantage from lowering operating cost and access to new raw material and additional markets (Investopedia, n.d.). Coca-Cola is one of the largest beverage company in the world. They operate in over 200 countries, has over 84,000 suppliers and 70 percent of the revenue generated are from overseas
Provide a clear and specific explanation of some of the global actions advocated by the institution that you have identified.
Coca-Cola was created in Atlanta, Georgia in 1886 by John Pemberton. Since then, they have continued to produce a high-quality beverage that is being enjoyed by customers around the world. Every second there is about 19,400 Cokes are being consumed (125 years of sharing happiness, 2011). In 1900, this is when Coca-Cola, began its journey to globalization success. Initially, they started out with plants in Cuba and Panama, which prove to be successful. Next, they opened up more plants in Hawaii, Puerto Rico, and the Philippines. For the next several decades, Coca-Cola had established international relationships and plants around the world, and after the Cold War, Coca-Cola has developed as a real global leader and world dominance.  Making the Coca-Cola the second-mostly widely understood term in the world (125 years of sharing happiness, 2011). “Coca-Cola’s American iconic logo, brand recognition, convenient packaging, and consistent product manufacturing became the foundation for the company’s plan to expand globally (Globalization and the Coca-Cola Company, 2013).”
Describe how this institution facilitates international trade. Is there e-commerce? Are actual goods transferred?
Coca-Cola facilitates international trade by varying its revenue growth strategies. They increase their revenue and profit growth by aligning different approach dependent on the surrounding market. They did not have a one size fit all when it came to different countries, and they shift their focus to the values and needs of that area. In new markets they focus on increasing volume, keeping their drinks reasonably priced and strengthen their foundation. In evolving markets, they held stability between quantity and price. And lastly, in existing/developed markets, they offered more premium packaging and relied more heavily on a price/mix. They have a strategy of cost leadership, where the objective is to become the lowest-cost producer in the industry. They utilize the internet to increase business automation and expand its distribution of branded merchandise, to provide its customers with fast and reliable service. Another way they are using the e-commerce platform is letting customers order personalized glass bottles on Coca-Cola online (Moye, 2010).
Based on your review, explain what the biggest challenges could be to this institution operating globally.
Entering into a foreign market is like learning how to ride a bicycle, you don’t forget the basics, but the type of bike by different or the gadgets on the bike is something you have never seen before, so learning how to tweak on the foundation you already have can be difficult.  Foreign countries have different laws, economies, business strategies and cultural differences which can all hinder the success of an organization. The most significant challenge I see for Coca-Cola is keeping up with this new generation. Coca-Cola is a classic with a traditional look and taste. In the United States, Coca-Cola is not denominating the cola brand, Pepsi has surpassed them.  I feel there should be a change in marketing to keep up with the younger population (Banuti-Gomez, 2012).
References:
125 years of sharing happiness. (2011). [PDF] The Coca-Cola Company, pp.1-26. Available at: http://www.coca-colacompany.com/content/dam/journey/us/en/private/fileassets/pdf/2011/05/Coca-Cola_125_years_booklet.pdf
(Links to an external site.)
Links to an external site.
Banuti-Gomez, M. (2012). COCA-COLA: International Business Strategy for Globalization. 3rd ed. [PDF] London: William G. Rohrer College of Business, Rowan University, pp.1-15. Available at: http://www.abrmr.com/myfile/conference_proceedings/Con_Pro_12310/18.pdf
Globalization and the Coca-Cola Company. (2013). [PDF] The Saylor Foundation, pp.1-4. Available at: https://www.saylor.org/site/wp-content/uploads/2013/02/BUS208-2.5.6-Globalization-and-The-Coca-Cola-Company-FINAL.pdf
(Links to an external site.)
Links to an external site.
.
Investopedia Staff (n.d.). Globalization. [online] Investopedia. Available at: https://www.investopedia.com/terms/g/globalization.asp
(Links to an external site.)
Links to an external site.
Moye, J. (2015). Special Delivery: Inside the ‘Share a Coke’ e-Commerce Operation. Retrieved from http://www.coca-colacompany.com/stories/special-delivery-inside-the-share-a-coke-e-commerce-operation
Colleagues 2:
One of the organizations in my area that promotes globalization is a paper and pulp company called Resolute Forest Products. Although this division produces paper and pulp the corporation has other divisions in the United States and Canada. “Resolute Forest Products is a global leader in the forest products industry with a diverse range of products, including market pulp, tissue, wood products, newsprint and specialty papers, which are marketed in close to 70 countries” (Resolute Forest Products, 2018).
The division in my area sells products to Great Britain and Canada and purchases some products from Canada that go into a final product that is sold in the United States. Although this division does not deal in lumber many of their Canadian divisions do and I see large shipments being delivered in and around my city for new residential construction projects.
One of the biggest challenges that I would see is the cost of freight. In dealing with multiple currencies and tax laws it would be hard and expensive to keep a tight rein on freight costs. Another challenge would be the customs issues that would arise when shipping lumber, paper, or pulp. Customs has strict rules that govern this industry and they can be costly to maintain.
ReferencesResolute Forest Products. (2018). About Us. Retrieved from Resolute Forest Products: http://www.resolutefp.com/About_Us/

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Challenges Globalization Presents to International Business

Our academic experts are ready and waiting to assist with any writing project you may have. From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs.

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ORDER NOW DISCOUNT CODE >>>> WELCOME40

No one can deny that today’s world presents unique challenges for the present and future workforce. Politicians, professors, and business professionals all have different opinions on whether globalization is good or bad. In this activity, you will solidify your understanding of globalization and how globalization affects international businesses. For this discussion, identify an organization in your city, state, or country that promotes globalization.
For this discussion activity, respond to the following prompts.
–  Provide a clear and specific explanation of some of the global actions advocated by the institution that you have identified.
–  Describe how this institution facilitates international trade. Is there e-commerce? Are actual goods transferred?
–  Based on your review, explain what the biggest challenges could be to this institution operating globally.
In response to your colleagues:
–  Compare or contrast specific details of your institution to theirs; i.e. if your institution had a technology focus, you might highlight that and compare it to your colleagues’ focus.
–  When reviewing your colleagues’ post, think of the globalization barriers. Are there items you can link to?
–  Do the institutions that help manage globalization (IMF, WTO, etc.) affect this firm?
Colleagues 1:
Globalization is nothing new. It has been going on for centuries. Before the time of electronic and airplanes, travelers set sail to travel afar in search and to purchase salt, spices, and gold to be sold in their country. Within the past few decades, there has been an increase in cross-border sells and trade. This evolution has increased economic development and financial opportunities overseas. “Through globalization, companies can gain a competitive advantage from lowering operating cost and access to new raw material and additional markets (Investopedia, n.d.). Coca-Cola is one of the largest beverage company in the world. They operate in over 200 countries, has over 84,000 suppliers and 70 percent of the revenue generated are from overseas
Provide a clear and specific explanation of some of the global actions advocated by the institution that you have identified.
Coca-Cola was created in Atlanta, Georgia in 1886 by John Pemberton. Since then, they have continued to produce a high-quality beverage that is being enjoyed by customers around the world. Every second there is about 19,400 Cokes are being consumed (125 years of sharing happiness, 2011). In 1900, this is when Coca-Cola, began its journey to globalization success. Initially, they started out with plants in Cuba and Panama, which prove to be successful. Next, they opened up more plants in Hawaii, Puerto Rico, and the Philippines. For the next several decades, Coca-Cola had established international relationships and plants around the world, and after the Cold War, Coca-Cola has developed as a real global leader and world dominance.  Making the Coca-Cola the second-mostly widely understood term in the world (125 years of sharing happiness, 2011). “Coca-Cola’s American iconic logo, brand recognition, convenient packaging, and consistent product manufacturing became the foundation for the company’s plan to expand globally (Globalization and the Coca-Cola Company, 2013).”
Describe how this institution facilitates international trade. Is there e-commerce? Are actual goods transferred?
Coca-Cola facilitates international trade by varying its revenue growth strategies. They increase their revenue and profit growth by aligning different approach dependent on the surrounding market. They did not have a one size fit all when it came to different countries, and they shift their focus to the values and needs of that area. In new markets they focus on increasing volume, keeping their drinks reasonably priced and strengthen their foundation. In evolving markets, they held stability between quantity and price. And lastly, in existing/developed markets, they offered more premium packaging and relied more heavily on a price/mix. They have a strategy of cost leadership, where the objective is to become the lowest-cost producer in the industry. They utilize the internet to increase business automation and expand its distribution of branded merchandise, to provide its customers with fast and reliable service. Another way they are using the e-commerce platform is letting customers order personalized glass bottles on Coca-Cola online (Moye, 2010).
Based on your review, explain what the biggest challenges could be to this institution operating globally.
Entering into a foreign market is like learning how to ride a bicycle, you don’t forget the basics, but the type of bike by different or the gadgets on the bike is something you have never seen before, so learning how to tweak on the foundation you already have can be difficult.  Foreign countries have different laws, economies, business strategies and cultural differences which can all hinder the success of an organization. The most significant challenge I see for Coca-Cola is keeping up with this new generation. Coca-Cola is a classic with a traditional look and taste. In the United States, Coca-Cola is not denominating the cola brand, Pepsi has surpassed them.  I feel there should be a change in marketing to keep up with the younger population (Banuti-Gomez, 2012).
References:
125 years of sharing happiness. (2011). [PDF] The Coca-Cola Company, pp.1-26. Available at: http://www.coca-colacompany.com/content/dam/journey/us/en/private/fileassets/pdf/2011/05/Coca-Cola_125_years_booklet.pdf
(Links to an external site.)
Links to an external site.
Banuti-Gomez, M. (2012). COCA-COLA: International Business Strategy for Globalization. 3rd ed. [PDF] London: William G. Rohrer College of Business, Rowan University, pp.1-15. Available at: http://www.abrmr.com/myfile/conference_proceedings/Con_Pro_12310/18.pdf
Globalization and the Coca-Cola Company. (2013). [PDF] The Saylor Foundation, pp.1-4. Available at: https://www.saylor.org/site/wp-content/uploads/2013/02/BUS208-2.5.6-Globalization-and-The-Coca-Cola-Company-FINAL.pdf
(Links to an external site.)
Links to an external site.
.
Investopedia Staff (n.d.). Globalization. [online] Investopedia. Available at: https://www.investopedia.com/terms/g/globalization.asp
(Links to an external site.)
Links to an external site.
Moye, J. (2015). Special Delivery: Inside the ‘Share a Coke’ e-Commerce Operation. Retrieved from http://www.coca-colacompany.com/stories/special-delivery-inside-the-share-a-coke-e-commerce-operation
Colleagues 2:
One of the organizations in my area that promotes globalization is a paper and pulp company called Resolute Forest Products. Although this division produces paper and pulp the corporation has other divisions in the United States and Canada. “Resolute Forest Products is a global leader in the forest products industry with a diverse range of products, including market pulp, tissue, wood products, newsprint and specialty papers, which are marketed in close to 70 countries” (Resolute Forest Products, 2018).
The division in my area sells products to Great Britain and Canada and purchases some products from Canada that go into a final product that is sold in the United States. Although this division does not deal in lumber many of their Canadian divisions do and I see large shipments being delivered in and around my city for new residential construction projects.
One of the biggest challenges that I would see is the cost of freight. In dealing with multiple currencies and tax laws it would be hard and expensive to keep a tight rein on freight costs. Another challenge would be the customs issues that would arise when shipping lumber, paper, or pulp. Customs has strict rules that govern this industry and they can be costly to maintain.
ReferencesResolute Forest Products. (2018). About Us. Retrieved from Resolute Forest Products: http://www.resolutefp.com/About_Us/

Our academic experts are ready and waiting to assist with any writing project you may have. From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs.

GET A 40% DISCOUNT ON YOU FIRST ORDER

ORDER NOW DISCOUNT CODE >>>> WELCOME40

 

 

Posted in Uncategorized