Is the Coca Cola Company a multinational enterprise? Which activity has the Coca Cola company conducted...

Is the Coca Cola Company a multinational enterprise? Which activity has the Coca Cola company conducted to support its transactions across national borders? Did it follow a step-wise internalization process in the past years?

Expert Solution

Answer) Coca-Cola is an Multinational Enterprise (MNE) as it has headquarter in Atlanta, Georgia and multiple local offices located in the more than 200 counties to manage the global operations.

Coca-Cola conducts it's transaction across national border and this is depicted by:

Operation in local scale: whereby local needs and aspiration is taken into consideration while marketing the product.
Integrate with local community: working on the model of citizen to expand their outreach and get more locals involved. For instance, Coca-Cola acting as sponsor for state level sporting events.
Value chain: value addition is performed at various nations, where the cost of input and production is the cheap.

In the era of globalization, Coca-Cola has established joint ventures to gain entry into Chinese market. This reflects the theory of internalization that has been incorporated by Coca-Cola to reach into new markets.

Rahul Sunny answered 4 months ago

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