Consolidated income statement
Midterm Exam #2As the current CEO of Coca-Cola, I will pursue the strategy of localization, and there are several reasons below.
First of all, because each country has its own culinary culture, Coca-Cola needs to adapt to a variety of culinary culture to increase their sales. Unlike products like cell phones or laptops which can become the best products as long as they are most advanced and practical, there is no best beverage because it’s really hard to identify. It means that Coca-Cola should try to meet the tastes around the world to increase their sales. Localization can meet market demand around the world by selling different product in different countries like the Georgia coffee in Japan and the Orange-based drink in China. It might increase the total cost of production, but I think the increase in revenue can cover that.
Second, Coca-Cola's former boss Woodruff had a famous saying: "Coca-Cola are carbonate 99.61%, syrup and water. If you do not advertise, it would have to drink it?" So we know that advertising has a significant impact on the sales of Coca-Cola. By localization, Coca-Cola can make different aids that meet different cultural characteristics around the world. They can invite movie stars around the world shooting ads to get consumers or package the products into different styles to attract the attention of consumers. On the contrary, global standardization can’t meet the preferences around the world which may let other competitors have the chance to establish their brand images in specific countries.
Third, localization let the branch companies have different corporate culture to meet the customs in different countries. I think it can improve the efficiency of the branch companies and make it easier to manage people in different countries. For example, Japanese companies have lifetime employment system which makes them efficient and united but the same system may not work well in the western countries. However, the disadvantage of
First of all, because each country has its own culinary culture, Coca-Cola needs to adapt to a variety of culinary culture to increase their sales. Unlike products like cell phones or laptops which can become the best products as long as they are most advanced and practical, there is no best beverage because it’s really hard to identify. It means that Coca-Cola should try to meet the tastes around the world to increase their sales. Localization can meet market demand around the world by selling different product in different countries like the Georgia coffee in Japan and the Orange-based drink in China. It might increase the total cost of production, but I think the increase in revenue can cover that.
Second, Coca-Cola's former boss Woodruff had a famous saying: "Coca-Cola are carbonate 99.61%, syrup and water. If you do not advertise, it would have to drink it?" So we know that advertising has a significant impact on the sales of Coca-Cola. By localization, Coca-Cola can make different aids that meet different cultural characteristics around the world. They can invite movie stars around the world shooting ads to get consumers or package the products into different styles to attract the attention of consumers. On the contrary, global standardization can’t meet the preferences around the world which may let other competitors have the chance to establish their brand images in specific countries.
Third, localization let the branch companies have different corporate culture to meet the customs in different countries. I think it can improve the efficiency of the branch companies and make it easier to manage people in different countries. For example, Japanese companies have lifetime employment system which makes them efficient and united but the same system may not work well in the western countries. However, the disadvantage of