organisational behaviour

Topics: New Zealand, Coca-Cola, The Coca-Cola Company Pages: 6 (1610 words) Published: April 3, 2014


School of Management

MGMT 202 Case Analysis Cover Sheet

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Management 202

Organisational Behaviour

Case Study

‘The Battle of Middle Earth: New Zealand’s Bid to save The Hobbit’

Due: 9th of January 4pm

Word Limit: 1500

In this case study of ‘’ The Battle for Middle Earth: New Zealand’s Bid to Save The Hobbit”, I will be making conclusions about the relationships that are evident between multinational corporations and nation states in our increasingly globalised world. The positive and negative effects of globalisation on the world today, particularly between Warner Bros and the nation state of New Zealand. To draw some conclusion on the relationship I will use Hofstede’s model and evidence from outsourced examples and the public perspective.

The relationship between multinational corporations and nation states is ever grow as globalization is continuing to grow as more multinational companies compete against each other for financial success. This competition forces corporations to target new markets to take advantage of to succeed. Globalisation can be defined as “the process by which businesses or other organizations develop international influence or start operating on an international scale” (Oxford) or “the widening, deepening and speeding up on worldwide interconnectedness in all aspects of contemporary life” (Held et al, 1999). A company such as Coca Cola Company has been very successful as a multinational company, which is now operating in over 200 countries and has over 84000 suppliers. Currently over 70% of Coca Cola’s business income is generated from non-US sources (Coca-Cola Company, 2012). Coca Cola has grown into a multi-million dollar business and has continued to grow. They have created new products under the Coca Cola company to target and cater for different types of target markets such as powerade for sports people and younger people, vitamin water and diet coke for health conscious and older consumer, fanta and sprite for soft drink fans. Coca Cola now tailored a product line to meet the needs of the younger consumer by offering flavored coke products such as cherry and vanilla coke. Coca Cola also used packaging differentiation to adapt its products to various market segments. Functional packaging has been used to make the product available in different sizes and forms such as glass, plastic bottles and aluminum cans as well as fountain drink dispensers. To promote Coca Cola commitment to environmental sustainability all there packaging materials are recyclable and are labeled accordingly.

The case study highlights issues that globalisation can cause on smaller nations that are under economically developed nations, we see this in the case study as Warner Bros held bargaining power over the government of New Zealand. The bargaining power held over New Zealand was the chance of the loss of the $670 million production of the Hobbit and also the future of the film industry in New Zealand. Warner Bros held the bargaining power over the New Zealand Government, as it could not afford to not agree to Warner Bros demands due to the effect it would have on New Zealand’s tourism and the growing film industry, which in turn affects the economy. The film of the Hobbit in New Zealand was in jeopardy as Warner Bros were going to film the...


References: Coca-Cola Company (2012). Wikinvest. December 11, 2012. Retrieved from:
http://www.wikinvest.com/stock/Coca-Cola_Company_(KO)
Oxford Dictionaries. Defining Globalisation. Retrieved from:
http://www.oxforddictionaries.com/definition/english/globalization
Statistics New Zealand. (2010). Tourism satellite account 2010. Retrieved from:
http://www.stats.govt.nz/browse_for_stats/industry_sectors/Tourism/TourismSatelliteAccount_MR10.aspx
TVNZ One News. (2010). Film producer says Hobbit deal ‘traffic’ October 27, 2010. Retrieved from:
http://tvnz.co.nz/national-news/film-producer-says-hobbit-deal-terrific-3856571/video

Jackson, P and Court, D. (2010) Review of the New Zealand Film Commission, p.67.
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