Coca Cola in Africa

Topics: Africa, Case study, Continent Pages: 3 (680 words) Published: September 22, 2013


COCA-COLA IN AFRICA
THE DECISION

Table of Content

Integrative Cases Study – Page 3
Case Study Analyses – Page 4
References – Page 6

Integrative Case 1.1
Coca-Cola in Africa

1. Why is Coca-Cola so interested in Africa, which is typically regarded as part of the base of the global economic pyramid?

Coca-Cola is an organization that has been around since 1892. Coca-Cola is looking for new emerging growth markets and Africa has proven to be that. Combined, 12 of the African countries have a GDP greater than that of Chine. Coca-Cola has 29% of the market share in Africa.

2. What unique resources and capabilities does Coca-Cola have that will help it compete well in Africa?

Coca-Cola has the ability to conduct street by street campaigns, to reach the towns and villages. This will assist in improving it marketing and distributions to areas off the beaten path. The manual distribution centers will also assist to grow sales, by coaching and directing small bottlers and residents to own their sales and delivery.

3. What are the drawbacks of making such large scale commitments to Africa?

Yes there are drawbacks. There are still many areas in Africa where the government and physical infrastructure is not stable. With Coca-Cola investing large amounts of money in Africa, the instability could prove disruptive to Coca-Cola operations.

4. Do stakeholders in the United States and Africa who criticize Coca-Cola have a reasonable case against it?

Yes, it is a valid criticism that Coca-Cola is depleting fresh water, and encouraging environmental harmful refrigeration. Coca-Cola needs to find a way to create sustainable manufacturing that will not pillage natural resources.

Why go to Africa
Coca-Cola was founded in 1892, but began business in Africa in 1929. Despite the belief that Africa is unstable government, lacks infrastructure, and great conflict and turmoil, Coca-Cola decided to enter Africa and is...

References: Maritz, Jaco (2010), “Report: Doing Business in Africa, the Coca-Cola way” http://www.howwemadeitinafrica.com/doing-business-in-africa-the-coca-cola-way/2433/. Date accessed May 17, 2013.
Steakley, Lia (2013), “Using the Coca-Cola supplier network to distribute medicines in Africa,” http://scopeblog.stanford.edu/2013/04/26/using-the-coca-cola-supplier-network-to-distribute-medicines-in-africa/. Date accessed May 17, 2013
Cheverri, Natalia (2012) “Coca-Cola in Africa,” http://www.thepolisblog.org/2012/03/coca-cola-in-africa.html
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