Comprehensive Analysis Outline
Region Analysis: Coca cola’s research team would like to add a global business venture in South Africa by offering and introducing a new line of juice products. South Africa offers low labor costs and an excellent infrastructure. Coca cola will benefit from introducing juice products in South Africa due to the vast cost reductions. South Africa production costs are considerably lower than South East Asia because of exceptional water and power rates. South Africa offers an excellent base to export products internationally. The South African economy has slipped into a slight recession this year behind three years of unassuming economic growth from “2.1 percent in 1987, to and increase of 3.3 percent in 1988, and back to 2.1 percent in 1989.” (Rep. of South Africa). This economic hold up has been due to the economic guiding principles set forth by the government, intending to counteract instability of payments and inflationary demands. South Africa continues to show strength in the market for American imports, and a steady pace in Coca Cola sales. The South African economy must be strong in order to overcome post apartheid challenges in South Africa. The country has stability in the banking and finance sector, which makes financing options available to strengthen the economy. There is noteworthy evidence that the broader African region, which includes 14 countries, is making significant progress toward increased development. Since the end of the Apartheid era, the region has focused on economic and social reconciliation, and the potential within the region is proving positive for the nations of the region and its people. Economic conditions suggest that the region continues to grow through attracting international business and capital; however, the growth has slowed considerably within the past five years. Some of the key economic indicators for the region include: •
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