Businesses, whether it is performed domestically or internationally, would be operated among the context of a society. ‘Culture is simply defined as the collection of values, beliefs, behaviours, customs and attitudes that differentiate one society from another’ (Griffin & Pustay 2003, p.85). Culture is an important aspect to consider when an organisation decides to perform its business internationally. Culture plays a dominant role in society and different cultural perspectives may provide diverse business opportunities.
Multinational companies need to be aware of the significance of culture and its impact on the company as organizations may only be successful if it learns and understands the norms, beliefs, values and traditions of the respective customs. Organizations aiming to expand its markets further should recognize that the foreign business traditions and customs differ very much from their own. Hence, understanding the cultural variations is a crucial part of the business success, as the operations of the business lies within the boundaries of a society and its culture (Tayeb 2000).
3.1 Company and History
The Coca-Cola Corporation is one of the most famous icons in the beverage industry worldwide. The company is the largest manufacturer, distributor and marketer of soft drinks in the world. Coca-Cola Corporation offers nearly 400 brands in over 200 countries, besides its main brand image, the Coca-Cola (also known as Coke) beverage (www.coca-cola.com).
Coca Cola drink was invented by Doctor John Stith Pemberton in May 1884, a pharmacist from Atlanta, Georgia. Pemberton named his invention as Coca-Cola, since the ingredients used for the formula included the stimulant coca leaves from South America and was flavored using kola nuts, a source of caffeine. Pemberton was slowly promoting the drink and it was becoming well-known throughout the Atlanta region. However, in 1887, Pemberton decided to sell his formula to Asa Griggs Candler, who incorporated his company as Coca-Cola Corporation in 1888. In the same year later, Pemberton sold and revealed his beverage formula to three other businessmen, namely J.C Mayfield, A.O.Murphey and E.H.Bloodworth. Many versions of Coca-Cola were in the market during that time, but the Coca-Cola Corporation under the management of Candler dominated the market (Bellis 2007).
The drink started to gain massive popularity during the World War II, when Coca-Cola Corporation began to provide soft drinks for soldiers of the United States Army. The popularity of the drink among the American soldiers created an enormous promotion campaign all over the United States. Gradually, the smaller rivalry companies were bought by the Coca Cola Corporation and the company started to expand its business overseas (Bellis 2007).
3.2 Brand Recognition
Today the flagship Coca-Cola Classic (now without cocaine) is the world’s most popular soft drink and along with other Coke products is available in over 200 countries.1.1 billion servings of Coca-Cola beverages are served every single day. More importantly, the beverage which defined the carbonated cola category continues to maintain strong brand recognition everywhere. The trademark coke bottle or red can with the Coca-Cola wave device, whether written in Hindi, Chinese, or Hebrew, is everywhere and is universally recognized by nearly everyone, whether literate or not, in places where the cross of the Christian church has not even been seen.2 Truly, Coca-Cola is an American business success story.
3.3 List of countries that Coca Cola Ventured into:
North America| * United states * Estados unidos| * Canada| Latin America| * Argentine * Bolivia * Brasil / brazil * Chile * Colombia| * Costa Rica * Dominican republic * Ecuador * El Salvador| Europe| * Austria /osterreich * Belgium /belgique * Belgium / belgie * Bulgaria...