Multinational Companies

Topics: Coca-Cola, Corporation, Multinational companies Pages: 3 (735 words) Published: February 28, 2012
Multinational Companies
Multinational Companies
Karen Mooney-Crouch
Grantham University

Abstract

Multinational corporations are businesses that operate in more than one county. The typical multinational corporation normally functions with a headquarters that is based in one country, while other facilities are based in locations around the world. This model often allows the company to take advantage of benefits of incorporating in a given locality, while being able to produce goods and services in areas where the cost of production is lower. The purpose of this paper is to highlight two companies that are multinational and explain the differences and similarities of operations. I have selected Coca-Cola and Proctor and Gamble for this paper.

Multinational Companies
I have selected Coca-Cola and Proctor and Gamble for my two multinational companies to express cultural nuances and operations for stockholders. Multinational corporations are businesses that operate in more than one county. Coca Cola was first introduced in 1886 and has been in business for 125 years. Coca Cola’s home of origin is the United States. The company’s headquarters is in Atlanta, Georgia. Coca-Cola the carbonated drink can be found in more than 200 countries. The actual production and distribution of Coca-Cola follows a franchising model. The Coca-Cola Company only produces a syrup concentrate, which it sells to bottlers throughout the world, who hold Coca-Cola franchises for one or more geographical areas. The bottlers produce the final drink by mixing the syrup with filtered water and sweeteners, and then carbonate it before putting it in cans and bottles, which the bottlers then sell and distribute to retail stores, vending machines, restaurants and food service distributors. Independent bottlers are allowed to sweeten the drink according to the local taste. The website is very user friendly and there is a link offered to change countries to where the product is...
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