ABSTRACT
The Coca-Cola Company and the electronics manufacturer Samsung are probably the most respected institutions in the spheres of influence in the world. Coca-Cola is the famous soft drinks manufacturer that has its popular brand the “Coca-Cola” drink in almost all parts of the world. Samsung on the other hand has its brand name on about forty percent of the electronics sold worldwide. It goes without saying that with such status and pride comes responsibility. These two companies have had their fair share of legal ramifications, political atrocities and ethical concerns raised against them. Corporate battles that run from within are fronted by the competition to demean great market forces such as these two and rob them of their hard-earned wealth. On the flip side however, the power and influence such companies command gives them an edge over their counterparts. Not only do they compete unfavourably, they have ways to outmanoeuvre legal and social battles. Their popularity always sees them through and at times they do not exactly sell quality but the brand.
The Coca-Cola Company is an American multinational that was in the year 1892 by entrepreneur Asa Candler who had just bought the formula for the Coca-Cola drink a few years earlier. From its first drink, the company grew slowly to the current status. As of December 2011, Coca-Cola had more than 500 brands all over the world. Its distribution chain includes over 200 countries and such explains the record 1.7 million servings a day the company sells. The company is undoubtedly a distinguished corporation. Samsung Group on the other hand is a Korean multinational conglomerate founded in 1938 by businessman Lee Byung-chull. As of December 2011, the company’s annual revenue was estimated to be about 250 billion US Dollars. The company brags of subsidiaries such as insurances and construction companies. Indeed, it cannot evade the status of an average fortune 500 company.
The two companies differ in a number of ways and this affects their leadership and their operation. Categorically, four major aspects can distinguish these two firms; social, political, legal and ethical factors.
SOCIAL
Socially, the Coca-Cola Company commands a larger scope. With its headquarters being in the world’s most influential nation, the company really gives its competition a run for their money. Often, the company flaunts out numerous endorsements, sponsorship and merger deals which are met with great enthusiasm around the globe. Samsung electronics often find popularity in the media industry as most people have television screens and mobile phones; both of which are gadgets that the company manufactures. Notable sponsorships include the Barclays Premier league where Chelsea football club are great beneficiaries. The two majorly embrace technology with social networks such as facebook and tweeter being their avenues to target clients.
Since Coca-cola is a beverages firm while Samsung is an electronic firm, the difference in how they reach out to the clients is clearly displayed in their adverts. Coca-Cola emphasises on the drink for refreshment and swag, often portraying some of its brands as having a sense of gist. Samsung on the other part emphasises class among its clients. Its brands are known to have a sense of finesse that brings about a great aesthetical value. Greatness is often the key cliché in their adverts. In essence, as coca-cola reaches out to clients with fairly affordable products, Samsung identifies with class
POLITICAL
The political presence of any corporation depends on the impact it has on the country’s economy. In this aspect, Samsung finds the scale tilted to its favour. Being situated in a country whose main export is electronics; South Korea, Samsung finds itself in a very strong political position in the nation. In fact, the company is responsible for sixty percent of the country’s electronic exports. This gives it a great edge in market shares compared to other electronics manufacturers in the region. Coca-Cola Company is situated in the United States of America among a host of other beverage companies. Despite its significant contribution in the beverage industry, its political holding is diminished by the fact that The United States is not a major beverages exporter.
ETHICAL
How a company conducts its businesses with the adherence of conventional corporate laws is important. Whereas both companies have had their fair share of corporate social responsibility, ethical concerns have been raised. For the Coca-Cola Company, these have been major. Being a beverage manufacturer, the quality of their drinks has always been put to the test. One time, the company was sued for having too much acid in the drink that apparently caused health problems among consumers. The company has also had its recycling plants criticised at times for there being non-soda particle in some of the bottled drinks. Samsung group has had its products questioned as well. Often, running legal battles with the electronic manufacturer Apple over imitation woes have done little to boost its image. Ethically, though on different fields, both companies have suffered considerable consumer bashing.
LEGAL
Legal teams from the Samsung and Coca-Cola Company have often found themselves preparing submissions and suit papers for presentation in court. Legal battles have often characterised huge corporations and no just fighting suits but suing other companies. Since its incorporation, Coca-Cola has had about 50 mergers with great beverage manufacturers. These have often led to the legal tussles that have led to the company losing major assets and clientele. Samsung has however laid off the courts for most of the time it has been in operation save for the famous Apple suit after the release of the latter’s iPad4. In the legal field, one would conclude that Samsung has remained majorly absent for intentionally strategic reasons; public image.
HOW THESE HAVE AFFECTED DECISION MAKING
Coca-Cola brands are based research and consumer demand. Some of the products have been developed as a result of consumer complaints about aspects such as sugar content, starch content and the level of acidity in the drinks. Such products include Coke Zero, Diet Coke and Coke Light. Legal ramifications and ethical concerns have continuously led to the refining of the Coca-Cola drink that is retailed to date. Public opinion forms the company’s major research point.
Samsung has displayed its consideration for market trends in brands such as Android phones; Galaxy series, Plasma television and a host of other household electronics such as refrigerators and electric cookers. In essence, the diversity in manufacturing displays a sense of the company’s efforts to reach the consumer at their point of need.
CONCLUSION
As companies such as Coca-Cola and Samsung continue to lead the way in manufacturing, numerous factors will always slow them down. Not only do legal, ethical, social and political forces influence them, they dictate the market environment for them. It is for this reason that the big and mighty will always play fair. Instead of pulling down on them however, a better practise would be to emulate their sense of diligence and professionalism.
