International businesscoca cola Essay Example | Topics and Well Written Essays - 1500 words

International businesscoca cola - Essay Example During economic recession, specific tariffs afford the local producers protection from foreign competition. The tax does not consider the value of the imported products but is based on the specific quantity of the imported products such as the volume or weight of the imported product (Carbaugh 2011). Specific tariffs affect the competitiveness of any company importing raw materials abroad. The tariffs will increase the prices of the products that are manufactured through use of raw materials that have been charged specific tariffs. For instance, if Coca Cola sets up operations in Myanmar and decides to import raw materials from other countries, the costs of production per unit will be high due to the specific tariffs that have been charged on the imported raw materials. Specific tariffs will be used by developing countries like Myanmar in order to protect the infant beverage industry from international competition from established players like Coca Cola and Pepsi. In addition, the My anmar government will also benefit through increased tax revenues by charging Coca Cola specific tariffs for the imported raw materials. Unfortunately, the domestic consumers will incur suffering due to higher prices for the Coca Cola brands. Generally, in the short term, the higher prices of products due to specific tariffs on raw materials will reduce the consumption by the customers, but the government will benefit from the increased revenues. On the other hand, free trade benefits the global economy through increased competition that leads to reduction in consumer prices and a variety of innovative products in the market (Tallman 2010). Question two: Coca Cola is a beverage manufacturing multinational company that was established in 1886. The company is headquartered in Atlanta, USA, and has operations in more than 200 countries. The brand portfolio includes more than 450 brands that are consumed to close to 1.5 billion people daily across the globe. The company has attained a 9 0 percent customer loyalty, and about 45 percent of the global beverage market share due to quality and innovative brands. The mission of Coca Cola is to refresh the world, create value to customers and inspire moments of happiness and optimism among the customers. The vision of the company is to provide a great working environment for the employees, provide quality brands to customers, act responsibly to the communities and maximise the long term returns to the investors. Coca Cola has operated in most of the countries in Southeast Asia except North Korea, Cuba and Myanmar. Due to the recent easing of the trade embargos by the European Union and United States on Myanmar, Coca cola can now enter the market after six decades. The European Union and the United States have allowed the US Corporations and citizens to invest in Myanmar after the ruling junta turned in to a democratically elected government thus paving way for civil authority in the country. Coca Cola international busine ss strategy is to operate a local business model in every target country; thus, Coca Cola has the opportunity of entering Myanmar. The company can sell bottled water, juices and sodas that are considered important in Myanmar. 2. Competitive position 2.1 Competitive position Coca Cola has attained a global leadership position in the soft drinks industry. The company has more than 400 brands and serves almost over 1.5 million customers daily. Coca