The company sells over 400 brands in over 312 countries
or territories.
90 billion servings of Coke’s products are consumed
each day
A transnational company is
one that operates in more
than one country across the
world.
http://www.flickr.com/photos/lynns/110140674/
Apart from operating in more than one country,
transnationals also have a number of other characteristics…
Well known brands
Headquarters mostly in
MEDC countries.
Atlanta, Georgia, USA
Huge Profits
$24 billion dollars
Large employers
71,000 people
worldwide
http://www.flickr.com/photo_zoom.gne?id=286819826&size=o
The term globalisation is contested, a
general definition is…
An increase in the flow of goods, services,
Basically
thenational
World
is in
people,
capital across
borders
order to create
a more integrated and
shrinking.
interdependent world economy.
http://en.wikipedia.org/wiki/Globalization
Improved transport means that
people and goods can be moved
around the world more quickly.
Distance between places hasn’t
changed, but the time needed to
cover those distances has.
http://www.flickr.com/photos/danoots/165294639/
Improvement in technology, such
as the internet, has meant that
capital (money) can be transferred
instantly between locations. People
can also use telephones and the
internet to communicate more
easily in ‘real time’.
http://www.flickr.com/photos/ldandersen/301812211/
Improvements in technology have
also lead to the development of a
mass media, television, radio and
internet, far off places now seem
much closer… we can even see
them in real time.
http://www.flickr.com/photos/skooal/322346446/
These factors have lead to
increased interdependence
between places… they also seem
much closer than they did.
http://www.flickr.com/photos/anjan58/1281306048/
http://www.flickr.com/photos/blipfish/124908486/
Bottled in 200 countries
across the world.
http://www.flickr.com/photos/jamesonroper/400400410/
Manufacturing your product
in the country you sell it has
a number of advantages.
http://www.flickr.com/photos/33924575@N00/677513608/
Labour costs may be lower in
some countries, especially
LEDC countries.
Low labour costs = higher
profits.
http://www.flickr.com/photos/thomasvr/2178131895/
Manufacturing your product in
the country it is sold reduces
transport costs.
Less transport = higher profits.
http://www.flickr.com/photos/jungkumseok/2175023880/
Legalisation on working
conditions, workers’ rights, health
and safety, and the environment
may be less strict in some
countries.
Relaxed legalisation = lower
overheads= more profit.
http://www.flickr.com/photos/22385378@N02/2171255668/
Some countries may try to
encourage multinationals to invest
in their country by offering lower
tax rates and financial incentives.
More favourable taxation = lower
overheads= more profits.
http://www.flickr.com/photos/dukeofism/2137719782/
It widens your market.
More consumers= more
profit.
/
http://www.flickr.com/photos/perverted_introvert/2197021334
The status of your brand is
raised.
More status = more
consumers = more profit
http://www.flickr.com/photos/gunnarfreyr/2196432220/
Producing your product in a
country and adapting to the
local market makes it seem
more ‘local’.
More local = more consumers
= more profit
http://www.flickr.com/photos/liemtran/2184656873/
Does Coke show corporate
responsibility?