BUSMOD 1 - SLP Globalization and Global Strategic Planning Essay

BUSMOD 1 - SLP Globalization and Global Strategic Planning - Essay Example From the Interbrand’s best global brand 2011, Coca Cola has been selected as the world’s most valuable brand. This paper will analyze the Coca Cola Company in the context of globalization and global strategic planning. Globalization and International Operations of Coke Cola Globalization refers to the process through which national economies and cultures are integrated into an international economy so as to enhance international trade, direct foreign investment, migration, and technology sharing. As Mishkin (2008) opines, globalization greatly contributes to effective and rapid circulation of ideas, languages, and cultural ideologies (p.134). With intent to enhance foreign investment and cross-border trade for international business expansion, nations have liberalized cross border trade regulations. Hence, the emergence of globalization brought significant changes in Coke Cola’s international operations and strategic planning as the company had obtained free acce ss to global economies. This process allowed the company to enter highly developing market segments like India, which is currently one of the potential markets of the firm. The Coca Cola gives increased emphasis on human resources management because effective employee participation is essential for the company to ensure global integration of its business operations (The Coca-Cola Company). Nowadays, the company is introducing diverse product lines (for instance, 7.5 ounce mini can) to its markets in order to effectively defend stiff market competition. Recently, the company has formulated a series of corporate and social responsibility programs so as to promote a sustainable growth (Coca Cola Sabco). Marketing Entry Strategy of Coca Cola According to Arnold (2003), while analyzing overseas operations of the Coke, it is obvious that the company practices a global localization or glocalization strategy when considering entry into a foreign market. The localization strategy involves tw o distinct techniques. Under the first method, a multinational corporation adapts its marketing mix in a way that suites its product lines with the foreign market conditions where it entered. In contrast, the second approach involves the development of new-market specific sources. Although the second method is most direct and easy to implement, it involves higher costs and is a slower approach than adaptation. It seems that the Coke practices the both product adaptation and specification approaches. For instance, the company adopted the adaptation strategy while it entered India whereas the Coke dealt with a number of locally oriented brands as part of its market entry in Japan. Similarly, the organization extensively makes use of media as part of product positioning and territory expansion. It is clear that globalization enhanced the development of telecommunications media and which in turn fastened the spread of global mass culture. The higher development of global media as a resu lt of globalization has greatly assisted the Coke to promote its products across regions where it recently entered. In Indian market operation, the Coke Cola has hired several famous film stars like Aishwarya Rai and Vivek Oberoi to endorse its products as part of its