Beneficial Properties
Some of the beneficial properties of globalization for Coca Cola have been:
Increased Market Share
Today, Coca Cola is known as an international brand, but their success has been due to globalization and their success in different markets (Collins). Globalization has helped Coca Cola to expand their business beyond the American borders and enter new countries over the years. Due to globalization, Coca Cola has been able to reach different markets all over the world. By entering new countries, Coca Cola has been able to reach new customers and increase their global market share. Stakeholders that benefit from increased market share of Coca Cola are shareholders of the company. As the market share of the company increases, stakeholder’s equity is increased.
Global Brand
Coca Cola is one of the biggest and most easily recognized brand names in the world (Collins). Globalization has also helped in making Coca Cola a global brand name, as people are aware of the brand name in different parts of the world. The stakeholders that benefit from Coca Cola being a global brand are company shareholders and customers. The shareholders are able to view the brand become popular in different parts of the world and it enhances their confidence in their investment. The customers can easily trust the brand as they either know about it or are informed by someone of its global prestige. The end result of Coca Cola being a global brand is that sales are boosted whenever Coca Cola enters a new market.
Infusion
Globalization has clearly helped Coca Cola to infuse foreign capital, employment, technology and development in different markets in the world (Collins). Employment, technology, foreign capital and development in some of the poorest countries in the world have only been possible as companies such as Coca Cola have been allowed to invest and expand to new countries under globalization. Infusion of investment helps the local public as they get employment from Coca Cola, foreign capital helps in building operational infrastructure and business relationships, technology boosts products and service to customers, development helps the local economy. Overall, Coca Cola’s investment in new countries has helped several countries grow as the company brings with opportunities to grow for the people.
Harmful Properties
Some of the harmful properties of globalization on Coca Cola have been:
Health Issues
One of the biggest concerns that are related to Coca Cola has been the health related issues that has been related with its consumption. Coca Cola has been identified as one of the causes of people getting obese and having bad teeth. Sugar or corn syrup is an important ingredient of the drink and consumption of every bottle of coke leads to intake of high amounts of calories and probable obesity. Other major problems related to the consumption of Coca Cola are poor metabolism and diabetes (WMNLife). The stakeholder that is most affected by the health issues related to consumption of Coca Cola are the customers. Customers are threatened with several health issues, in case they consume Coca Cola frequently or in large quantities. Globalization has helped Coca Cola to spread these health issues to every country they are selling their product.
Jobs lost Outsourcing
Another major harm from the globalization of Coca Cola has been the loss of jobs in America. Over the years, as Coca Cola has expanded they have shifted several jobs to other countries, where they can find cheaper labour. Also, expansion of the business has helped to create more jobs and advancement opportunities for other countries that for the United States of America. The loss of jobs has been felt in the home country of Coca Cola -- the United States of America. The stakeholders that are affected by globalization of Coca Cola have been American workers, American economy and Coca Cola’s reputation in America. Americans are watching Coca Cola employ labour from other countries and the loss of American jobs to foreign shores and closure of American suppliers of Coca Cola has affected the American economy (Elmore).
Lawsuits
Net Calculus
After analysing the situation and understanding the contribution of Coca Cola in terms of the sheer size of its investment, employment opportunities, satisfaction of customer needs, and tax revenue for national governments. It is important to understand that Coca Cola has a positive effect on the society as it generates employment in different countries, has helped several countries with business and investment opportunities, and has a major role to play in the economy of poor countries. Therefore, Coca Cola is beneficial for the stakeholders involved in its production, sale and distribution and recycling. The company supports the economy of several countries, even though it has several negative impacts on the health of consumers and can lead to water pollution. Many countries are able to create sustainable jobs and supporting industries that benefits both Coca Cola and local individuals and businesses.
The harms of globalization of Coca Cola can be controlled as humans can reduce the amount of Coca Cola consumed and it would not have the same impact as a regular dose of Coca Cola can have on a human body. Also, water wasted in making a litre of Coca Cola can be recycled through technological innovations and reused for drinking and other purposes. Simply put, the role of Coca Cola is very important as it a humongous brand and without its presence in a country several jobs, industry, supporting industries is depleted. Coca Cola is clearly a devil created by globalization, as the society is dependent on its role and the company enjoys the privilege of being one of the rare companies that has a negative impact on the environment and the consumer, but its existence in the society is essential for sustainable growth.
Addressing Harmful Situations
Health Issues
Too much consumption of Coca Cola by an individual can easily cause health issues such as diabetes, low metabolism, obesity, tooth decay, etc. The only way to overcome this issue is to have Coca Cola rarely or less frequently. By avoiding the consumption, an individual will ensure that their health is maintained and they remain free of basic diseases related to Coke consumption. On an interpersonal level, reducing the consumption levels is a logical solution as the individual controls health related consequences. Also, people should be educated through different media forms about excessive consumption of Coca Cola. Children should be explained through school programs about reducing the consumption of Coca Cola and social media should be used for making people better aware. Well informed customers would choose to reduce their consumption and would prefer healthier drinks to quench their thirst.
Environmental Issues
There is no way for Coca Cola to prepare their product without using fresh water and water wastage. Also, since the extraction of water is significantly highly it is understandable that the company ends up reducing the usable or drinkable water near their factories. Coca Cola should not be allowed to set up production factories in locations where water resources are scarce. Also, factories need to be set up in locations where water resources are in abundance and population is comparatively low. It is important that Coca Cola needs to find other means to use the water used in the production process and the water contaminated can be recycled and cleaned for repeat and other uses. Coca Cola needs to invest in water cleansing technology and ensure they reduce their water pollution levels.
Overcoming Uneven Distribution of Benefits
Some of the benefits such as employment generated from the globalization of Coca Cola are unevenly distributed. As the company has grown they have developed factories and employees in other countries, but over time they have also shifted several jobs from American to other countries with cheaper labour. This uneven distribution of employment causes Coca Cola negative reputation as Americans think that their jobs are being taken away to other countries and supporting industries such as bottling end up closing their shop. These issues cannot be addressed at once, as Coca Cola has the right to take advantage of globalization as ship jobs to cheaper labour markets. But, Coca Cola can ensure that the company would remain true to its roots and ensure that its headquarters and a significant number of leadership and management jobs would be retained in the United States of America. This action will give assurances to an American public that Coca Cola remain a prevalent employer in its home country.
Developing Calculus
Benefits
Increased Market Share. For calculating increase in market share of Coca Cola, it is important calculate the increase in share of the global soft drink market after entering a new market. For example: before entering Country X, Coca Cola’s market share was 12 percent of the global soft drink sales in year Y. After entering the Country X, the market share increased to 15 percent in year Y+1.
Global Brand. Calculation of global brand can be done by survey or interviewing customers in different countries. By taking account of small samples, Coca Cola can understand the awareness levels of their customer base.
Infusion. Infusion of investment, employment, technology and development is simple to calculate as the numerical contribution of the company to the economy, jobs, and technical know-how can be used as a factor.
Harms
Health Issues. A sample can be taken of Coca Cola drinkers and it can be divided into regular drinkers and occasional drinkers. The difference in the health of regular drinkers and occasional drinkers can work as a metric for understanding the risks of drinking Coca Cola regularly.
Outsourcing. The number of jobs lost over a period of time from America to other countries where Coca Cola has invested is a metric for calculating the number of jobs outsourced by Coca Cola.
Lawsuits and Negative Publicity. Lawsuits can be calculated by calculating the number of times Coca Cola has been sued by individuals and companies. The best way to calculate negative publicity is through events and scenarios that ridicule a company’s name.
Conclusion
Globalization has helped Coca Cola to expand beyond their American shores and enter new markets all over the world. The benefits of globalization for Coca Cola have been their increased market share, global brand name, and infusion of investment, technology, employment, etc. Along with the benefits, there are several harms that are caused by the globalization of Coca Cola such as outsourcing of jobs from American markets, lawsuits and negative reputation and health issue such as obesity, diabetes, and low metabolism.
These negative impacts can be reduced through education programs and teaching consumers to reduce their intake. Environment related issues such as water pollution, water contamination and water wastage can be overcome by Coca Cola investing in reusing the water from their factories, and building factories in locations with ample amount of water resources and limited population. The harms and benefits of globalization on Coca Cola can be calculated in numerical terms in most cases as most of them are quantitative indicators of the scenario.
Works Cited
Collins., Mike. The Pros And Cons Of Globalization. Forbes. Forbes.com. 6 May 2015. Web. 29 June 2016.
Elmore., Bartow. How Coca-Cola built a sugary empire, by outsourcing as much as possible. Fortune. Fortune.com. 25 November 2014. Web. 29 June 2016.
Right to Water and Sanitation. Case against Coca-Cola Kerala State: India. Right to Water and Sanitation. righttowater.info. n.d. Web. 29 June 2016.
WMNLife. “5 Reasons Why Coke Is Bad For Your Health”. WMNLife. wmnlife.com. n.d. Web. 29 June 2016.
