Coca Cola in Africa Essay

1. Why is Coca-Cola so interested in Africa, which is typically regarded as part of the base of the orbicular 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 gross domestic harvest greater than that of Chine. Coca-Cola has 29% of the market sh be 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 bridle-path by street campaigns, to reach the towns and villages. This will suffice in improving it marketing and disseminations 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 qualification such large scale commitments to Africa?Yes there are drawbacks. on that point are still many areas in Africa where the government and physical infrastructure is not stable. With Coca-Colainvesting large amounts of money in Africa, the instability could prove roiled 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 damaging refrigeration. Coca-Cola needs to find a way to create sustainable manufacturing that will not pillage natural resources.Why go to AfricaCoca-Cola was founded in 1892, but began melody 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 the largest private sector employer in Africa. $12 billion was allocated towards expression distribution centers and plants in Africa. Sales in the United States are declining due to the public concern over su gar. Sales in Europe and Japan are flat, while markets in China and India offer up strong completion for Coca-Cola. Africas middle class population is growing at a energise rate, so the disposable income is increasing. This creates an opportunity for Coca-Cola to tap into growth opportunities (Natalia Cheverri 2012). How does it work?Although there are areas in Africa lacking infrastructure, Coca-Cola operates in every country. Coca-Cola utilized a franchising manufacturing mock up that works perfectly for operating in Africa. Coca-Cola partnered with local licensed bottling groups to help create the product. Coca-Cola manufactures the syrup concentrate and sells to the bottlers. The bottlers add filtered water, carbonation, and sweetener to make the final product.With this model, Coca-Cola is manduction the wealth with local investors/community members. This creates sustainable business and improves community buy-in with Coca-Colas existence in Africa (Maritz Jaco 2010). Because partnerships are formed with local bottlers and local members of the community, there is a vested interest by the locals to keep Coca-Colas business successful. Through these partnerships, Coca-Cola is able to help build the socio-economic system in different towns.DistributionCoca-Cola was having difficulty distributing product to different area of Africa with no roads. In 1999, local bottlers came up with the idea to cover off the beaten path areas by any means necessary. This include distribution by bicycle, pushcart, hand-carry and even donkey-cart. This distribution method is called manual distribution and has been adopted by many organizations all over the world (Maritz Jaco 2010). Manual distribution method was even adopted by an innovative non-profit named Colalife. This organization distributes medicine all over the continent of Africa. SummaryCoca-Cola took a gamble in making the decision to enter Africa. This gamble has paid off, because Coca-Cola is now one of the large st organizations in Africa and sees growth profits.ReferencesMaritz, 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), apply 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