How Globalization can Drive Business Success: Case Study, Coca-Cola

How Globalization can Drive Business Success: Case Study, Coca-Cola

Globalization is one of the recent revolutions that has brought about drastic changes to businesses and has prepared them to compete successfully and thrive. This is because it had removed any trade restrictions that existed before, presented new opportunities, lowers barriers by reducing tariffs, increased investments as well as resource accessibility such as raw materials and labor. When these opportunities are utilized in the form of improved productivity, product differentiation as well as quality, any firm can be a reckoning force in the global market place regardless of the size of the firm. Organizations such as Microsoft, IBM, Philips, and Intel now outsource specialists from other parts of the world. Alliances among petroleum manufacture (For example BP-Mobil, NUPI-Chevron Texaco), automakers (e.g., GM-Ford- DaimlerChrysler, Ford-Mazda, and GM-Honda) and airlines such as star are some of the changes driven by globalization. It is no secret that Coca-Cola is not only one of the most admired trademark but also well-known in the world. This is due to their ever-expanding global presence.  Since its inception in 1886, the company has grown from its small beginnings in Atlanta Georgia to being the world’s cherished brand.  The company have had massive success due to globalization and managed to transition in Europe smoothly. The same could be said for Africa.

And for this reason, this research will take particular interest and use Coca-Cola as an example for the aim of the study. As much as globalization is not a new term, its impact on businesses have not been given much focus, and that is this research seeks to gather new information that will not only be beneficial to other future research but also its companies. The knowledge acquired from this study will be added to already existing information. The primary objective of this exposition is to study advances prior knowledge and provide practical and trustworthy information on globalization and business by investigating the impacts of globalization on firms.  Secondly, Coca-Cola as a powerhouse in globalization will be examined to evaluate the success they have experienced due to globalization.

To accomplish these objectives, the following research question will be addressed:

How does globalization impact companies?

How have Coca-Cola as a company benefited from globalization?

All these questions will be answered through an analysis of the theoretical framework, understanding the literature review as well as an analysis of data collected through different research methods. From this, the results obtained will be used to give recommendations to the HR department and the company as a whole. This thesis consists of four chapters that are, literature review, theory, methodology and result, and analysis. The first two chapters help understand the theoretical background of the research while the third chapter is the practical part and it is where data is collected. Mixed research methods were adopted for the research. In the last chapter, the data collected is analyzed and conclusions made. By gaining insights into these topics, the study hopes to have them available in today fast paced business atmosphere.

Secondary data on these topics were found from internet based sources such as journals, paper, and books. Furthermore, previous surveys, studies, and researches were used. Primary data was gained through qualitative and quantitative research methods.

Once the study was done, the conclusions on the research were made, research questions were answered, and practical recommendations were given. As a result of this thesis paper, the impacts of globalization on firms were discovered.


Literature Review

A compelling thesis cannot be achieved without critically studying existing literature, theoretical frameworks, and particular studies. A literature review is a significant prerequisite for planning as well as the execution of research. Additionally, it assists in the formulation of a hypothesis, identification of research gaps and formulation of frameworks for additional investigation. It is also helpful in understanding the theories behind globalization and its benefits to companies.

This literature review concentrates on how globalization can impact the success of a company, and once the research questions are fully answered, it can be used in future research. In accordance with Targa, globalization is the idea of abandoning and doing away with national enterprise and perceiving the entire world as a single market, and this causes the borders among countries to disappear. As such, companies expand their operations without being limited to any region. Globalization entails more than just production processes such as raw materials and advanced technology, but also a universal language and starts for consumers. From the study, it was discovered that even though a company`s performance is enhanced by a high number of market opportunities that are evoked by globalization, it also hampers growth due to increased competition. Additionally, globalization drives more collaboration in international markets among organizations — for instance, co-marketing alliances. The collaborations consequently enable a firm to enhance its global effectiveness.

In a study conducted to get the views of companies in the US- Canadian free trade agreement, by Joyal and Julien, 44% of the respondents said it was beneficial to companies. They believed that it increases access to new markets, lower cost of materials and labor.

Furthermore, globalization strengthens brand name and value, and it increases consumer base.

Also, the company benefits from foreign direct investment. When companies globalize, they enjoy economies of scale.

Global markets offer new untouched markets; hence the company experiences growth, and investment opportunities. Sales and profits are the main driving factor.  From these countries, cheaper labor, raw materials are accessed. For instance, most companies expand to China because it is famous for its cheap labor.  All those resources that can be not be found in the home country, can be outsourced from other international countries.

New markets will only be addressed

Business performance is only enhanced

Firms can outsource and find new customers globally. For example, electronics and automobiles. Globalization of production, as well as operations, benefits firms in terms of economies of scale and scope. Reach out and serve new untapped markets

The introduction of free trade agreements (FTAs) and the World Trade Organization (WTO). These organizations enable firms to expand globally with lower costs with extra benefits such as the removal of tariffs. They have contributed to the removal of market restrictions. This reallocation of factors of production has enabled countries to reduce costs.  This free trade environment provides such as economies of scales, specialization and differentiation benefits.

For efficiency seeking investment, it lowers production since it lowers production hence low wages and low-cost production.

However, globalization is a doubled edged sword, and it can result in the success or failure of a business. For example, an international team with diverse culture are more creative, innovation and original than homogenous teams. At the same time, it can also lead to frustration and clash of cultures. Furthermore, the global alliance can transform an organization into the market leader or come with a share of learning challenges.  Therefore, human resource is the main crucial success factor for companies. A globally successful organization like Coca Cola fully comprehend the difference between organization culture and motivating their employees. Global innovation and collaboration is not something that happens in isolation but rather a continuous process.

From Atlanta to Africa: Globalization of Coca-Cola

Coca-Cola is a perfect example of the circumstance as mentioned earlier of globalization. Since Coca-Cola was pioneered, it has spread globally. Their globalization process began in the 1970s to 80s, and it now operates in more than 200 countries worldwide. The organization has gain momentum growth by capitalizing on the world beverage market. With its push for global share, the company has more than 84,000 suppliers. Currently, the company’s revenue is generated from non-US countries, that is, 40 billion dollars of earnings are from globalization. Globally, almost 10,000 Coca-Cola products are consumed in a second. The more the company acts in international markets outside the home country, the more the company earns.


Based in Atlanta, Coca-Cola is a company that is notable for non- alcoholic beverages. Coca-Cola focuses on international regions with growth. As much as the company started branching out in the 1920s, the main global expansion was during the 1980s. This is where the organization implemented its strategic plan to gain entry into new untapped territories that were underdeveloped. In their global geographical expansion, the company started widening its production in areas such as Guam and Europe that bit friendly. As the popularity of the company continued, they expanded into Australia, Norway, South Africa, and Italy. These areas were additionally in good relations with United Sated; hence expansion went smoother. By 1929, it reached Africa. Historical events such as world war spearheaded the company`s expansion. The company later partnered with sporting events such as FIFA, Olympics and this helped broaden their fan base.

The company has had the following success in the market.

They have the highest market share hence the leader in the market

High technology when it comes to production

Diversified employees that is, Liberal movements of human resource



Have benefited from sponsor relations


The theoretical framework is never enough when understanding how some processes can be proved especially in the thesis. As such, research is a vital part of thesis development. Furthermore, the world is changing rapidly, and people have to keep up with new information. As such, various researches must be conducted to evaluate how globalization impacts businesses. This chapter entails research approaches, data collection and analytical techniques used. The study is the process of searching for facts. That is, it is a systematic and critical investigation of hypothetical propositions about presumed associations. Research is vital in the research process since it gives a pictorial image of the entire study as well as answering the research questions. Some difficulties foreseen are accessing study participants, studying and analyzing data collected

Mixed approach method will be used to achieve the objectives. The first method being a quantitative method which involves questionnaire surveys. The second method will be a qualitative method. This consists of in-depth interviews in the form of case studies.

These questionnaires seek to investigate whether globalization has enabled companies to access new markets for their goods and services.  The surveys will determine if companies have better access to external financing and if they can obtain cheaper products. Additionally, the questionnaires will pose questions pertaining to whether companies have witnessed new opportunities due to globalization. Also, the issue of flexibility in terms in terms of movement of employees across the borders. All these aim to gauge the rate of growth experienced by companies due to globalization. Case studies will be conducted on three different firms that global gurus to gain adequate knowledge. Firms will be chosen according to their relative success.

The survey questions will be developed from the literature review as well as the conceptual framework of the study. The Statistical Package for Social Science (SPSS) will be used too to analyses questionnaire data. Analysis of frequency, as well as cross-tabulation, will be used. The results from the questionnaires will be analyzed through contingency tables as well as appropriate statistical tests.


Frequency will be used to explain background data on companies that will be in the survey. It will be used to provide information on the company`s size, products employees as well as the structure of the company. The cross-tabulation which comprises of chi-square will be conducted between variables in the questionnaire.  All the excepted values should satisfy conditions for the chi-square tests.  The variables to be tested are the company’s net profit, assets, revenue with indicate success. Globalization is the independent globalization of the methodology in this study. However, it will not be measured directly using observable variables.

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