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NORTH SOUTH UNIVRESITY SBE, Department of Marketing and International Business

INTERNATIONAL BUSINESS CouRS e Co D e: INB372 SUMMER 2020 MIDTERM ASSIGNMENT (To BE ATTENDED BY ALL STUDENTS)

NAME: S OURAV NAG ID:1821407630

SERIAL no.: 37

Faculty: Mahtab Muntazeri (Mbt)

Sec: 10

D ATE : 09.08.2020

TOTAL MARKS - 100

M ARKS OBTAINED:

(THis SP ACE is fo R FACULTY ’s usAG e. Do not WRite HeRE .

Introduction: Coca-Cola is a beverage company. It is the largest beverage company in the world. CocaCola doing its business in more than 200 countries. Coca Cola starts their journey on January 29, 1892, Atlanta, Georgia, United States by Asa Griggs Candler. The formula was invented by John Stith Pemberton who was a chemist. In 1988 Asa Griggs Candler purchased Coca-Cola for US$1,750. Coca-Cola formula is one of the top-secret of the worlds. From 1892 to now 2020,128 years the demand for Coca-Cola increases day by day. In 2020 Coca-Cola is the 96th largest company according to Forbes. Coca-Cola continues its reputation since 1892. Coca-Cola maintains the test of Coca-Cola from the beginning. Coca Cola is a product based company they have more than 3500 products. Coca-Cola operates 200 plus countries in 5 operating regions The Coca-Cola Company entered the Japanese market in 1957. Japan is one of the largest counties of the world and Coca-Cola entered the market not only expending its business but also deploying Japan’s original products in other countries. Now Coca-Cola has a 22.4% market in the Japanese beverage industry and the number are increasing day by day.” As a bottling company that manufactures and sells Coca-Cola branded products, CCBJI produces and supplies approximately 90% of the Coca-Cola system's products in Japan to serve the needs of our customers and consumers spread widely across Tokyo, Osaka, Kyoto, and 35 additional prefectures” (Dragan, 2019) Coca-Cola also has an R&D sector in japan where they introduce new products. In Japan, Coca-Cola has four million vending machines those are the key selling point of Coca-Cola in japan.

Globalization of Market In one-word Globalization of market is to make the world to a single market. Coca-Cola is one of the top MNC of the world in terms of globalization of market Coca-Cola is an example to others. Coca-Cola follows One Brand marketing strategy which boosts the Coca-Cola promotion. Coca- Cola try to cover the big market like Japan, the population of Japan is the key point for Coca-Cola to entering the market. In japan coca cola customized their product in terms of Japanese choice and preferences. They bring a lot of new products every year in terms of Japanese people’s preference. For example, Coca-Cola japan introduces Georgia which is a coffee drink also they introduce Aquarius sports drinks for the Japanese people and it became very popular in Japan.

Globalization of Production In terms of production, Coca-Cola uses the advantage of manufacture product in Japan for Japanese people. For this reason, Coca-Cola get tax benefit not only that Coca-Cola use the advantage of factors of production. Factors of production are consisting of land, labor, capital in japan they have enough resource so that Coca-Cola production is more efficient and maintaining their quality they introduce a new product in the market. Coca-Cola achieve the advantage of cheap labor cost because of production in japan production cost also going down.

Political environment-

Japan is constitutional sovereignty.” The power of the Emperor is limited and is restricted mainly to ceremonial duties, though he acts as head of state on diplomatic occasions. ” (Gov.UK, 2019)They have a parliamentary system. They have powerful rules regulation and an independent judiciary. Japan has a stable political system. Japan government are sensitive about the business environment they always take initiative which is businessfriendly. Coca-Cola take advantage from the stability of political environment, coca cola pulse is awarded a gold level by the japan government for the health benefits of its special ingredients. Japan crime rate also low it is very important for any business.

Economic Condition Japan has a highly developed free-market economy. Now Japan’s economy is more stable compare to last some decades. Japan economy is growing up day by day. Japan has the world’s second-largest economy and Japan is a member of G-7. Now Japan GDP, GNP, PPP is growing up because Japanese people are very much hard-working. Japan PPP is the fourth largest in the world. From a very long time, multinational companies are attracted to japan for the market size, purchasing power and growth potentiality. Japan has a huge population and most of them are financially good condition. Coca-Cola enters in japan for their huge market and it opens the door of opportunity towards Coca-Cola. In Japan, their government take a lot of projects so that they can grow faster for this reason peoples purchasing power are increase. ”Prime Minister Shinzo Abe’s efforts to rejuvenate the Japanese economy, dubbed Abenomics, are beginning to bear fruit even if progress has been hesitant and uneve” (Hedrick-Wong, 2019)

Coca-Cola build their own factory in

Japan and it is also expending whole over japan and it creates a lot of job opportunity towards Japanese people

Legal environment-

Japan has a moderate risk. the risk is low because they have a transparent tax system so Coca-Cola can do business comfortably. But in terms of cost, they have a high tax rate compare with other East Asian countries Coca-Cola have to pay more tax. The commercial law of japan is very strong there is no evidence biased against foreign companies it helps Coca-Cola to compete with other beverage companies. Japanese corporate law supports inward-facing investment. This means that they are far more likely to support FDI that uses mergers or acquisitions with pre-existing Japanese

Cultural environment“Buddhism and Shintoism are the two major religions in Japan” (Japan-guide.com, 2020). In Japan, 80% of people are belongings to Shinto religion. Shinto is a religion that is full of culture. Japanese culture is very much influenced by their history. Japanese drinking culture is very much unique. The most well-known drink at the heart of Japanese drinking culture is Nihonshu it is a traditional drink of Japan. One of the challenging things in japan is their culture because japan has a very rich culture. Japanese people are very much sensitive. ”Japan’s unique culture has been shaped by trends and forces from within and outside the country” (AsiaLink Business, 2020) The business culture of Japan is one of the biggest obstacles for any foreign company who wants to establish their business in the Japanese market. The reason behind this is because Japanese people are very much discipline they highly value the punctuality. They discourage companies from investing in their market Mainly Japanese people always want best quality product and they are very much health conscious. Coca-Cola has to keep in mind every time when they introduce a new product in the market. Coca-Cola introduces product basis of Japanese culture, tradition and history. Japanese people are health conscious by their tradition, for this reason, Coca-Cola has to keep in mind and they produce product maintaining the standard. Conclusion

Japan is one of the biggest economies also there are a big market as a foreign company Coca-Cola has to face a lot of obstacle in there but proper market plan helps Coca-Cola to grow their business in Japan. Coca-Cola is one of the oldest company of history and they maintain their product quality from that time Coca-Cola have one-fourth market share in japan beverage industry so it is clear that Coca-Cola has a lot of opportunity in further. Japanese people are also potential. “The concept of the “Coca-Cola System” itself is the same as other countries. What is unique about Japan is the people that work in that system. They understand their local markets; they understand each city and community. Another great element of Japan is their “passion for high quality.” They also bring a “passion for innovation.” Some of the products developed in Japan are now brands sold worldwide.” (Japan External Trade Organization (JETRO)., 2014). Those things are most important for business and Coca-Cola also work on it and the Coca-Cola research and development team in Japan also advance. If we consider cultural, legal, economic conditions Coca-Cola has a good position but there are many scopes of improvement.

Bibliography AsiaLink Business. (2020). Japanese business culture and etiquette. Retrieved from AsiaLink Business: https://asialinkbusiness.com.au/japan/conducting-business-in-japan/japanesebusiness-culture-and-etiquette?doNothing=1 Dragan, C. (2019, march 26). Message from the President of Coca-Cola Bottlers Japan. Retrieved from COCA-COLA BOTTLERS JAPAN INC: https://en.ccbji.co.jp/corporate/message/ Gov.UK. (2019, july 17). Guidance Overseas Business Risk - Japan. Retrieved from Gov.uk: https://www.gov.uk/government/publications/overseas-business-risk-japan/overseasbusiness-risk-japan Hedrick-Wong, Y. (2019, April 10). Japan's Richest 2019: Why Country's Zombie Economy Is Finally Staggering Back To Life. Retrieved from Forbes: https://www.forbes.com/sites/yuwahedrickwong/2019/04/10/japans-richest-2019-pmabes-aim-is-true/#3db95a8077a6 Japan External Trade Organization (JETRO). (2014). Success Story - Voices of foreign company executives in Japan. Retrieved from nanopdf.com: https://nanopdf.com/download/schneider-electric-japan-inc-mr-philippe-bouchet_pdf Japan-guide.com. (2020). Japan-guide.com. Retrieved August 9, 2020, from Japan-guide.com: https://www.japan-guide.com/e/e629.html...