You are the international manager of a U.S business that has just developed a revolutionary new personal computer than can perform the same functions as existing PC’s but costs only half as much to manufacture. Several patents protect the unique design of this computer. Your CEO has asked you to formulate a recommendation for how to expand into Western Europe. Your options are a) To export from the United States; b) To license a European firm to manufacture and market the computer in Europe;
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Scott Morrow MGT 531 Case #1 1/31/08 Coca-Cola’s New Vending Machine Statement of Problem Coca Cola‚ the world’s largest beverage company‚ has been under a tremendous amount of media scrutiny lately. Word got out that Coke is testing a new vending machine technology that changes price based on weather conditions. It charges a higher price during warmer temperatures and a lower price during colder times. Coke wants to increase its vending machine business with higher margins‚ but isn’t
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The Coca Cola and Pepsi War 1. Why is the soft drink industry so profitable? * The soft drink industry remains profitable because of the market share based on Porters Five Forces. * Coke has protected its recipe for over a hundred years as a trade secret‚ and has gone to great lengths to prevent others from learning its cola formula. The company even left a billion-person market (India) to avoid revealing this information. As a result of extended histories and successful advertising
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liters in 2008 indicating growth. • As of 2003‚ the Coca Cola brand (regular and diet) was the leader in the Brazilian soft drink market with 35.6% market share. Second closest was Guarana Antartica with 7.9% market share followed by Fanta with 7.1% market share. • Coca Cola is the leader in Brazilian market holding 50.1% market share‚ AmBev with 17.2% market share is at 2nd position and others-Tubainas accounting for the rest (Dec’ 2003). • The cola flavor accounted for 45% of the Brazilian soft drink
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2. Establishing a Selling Price for the product Based on the market research of a new product and also the market condition‚ the selling price is established. The desired profit margin is subtracted from the target selling price to determine the target cost. If the target cost is below the company’s current cost‚ the company may decide to introduce the product and functional cost analysis may attempt to reduce cost to an acceptable level. If the target cost is above the current cost‚ functional
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Coca-Cola Dividend Policy The definition of dividend is as follows: A dividend is the distribution or sharing of parts of profits to a company ’s shareholders. Now the question is why do companies pay dividends to it s shareholders? Because it’s the shareholders that are the real owners of the corporation and one would not own a piece of anything unless it would make money for them. So in turn a company wants to pay dividends to keep the shareholders happy and show that they are being profitable
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he Coca-Cola Company has been very consistent with their pricing strategy over the many years they have been in business. Because they have a strong competitor‚ they have to keep their prices in line to compete. The ultimate goal of the company is to maximize shareholder value. The will often reduce the price of their products when entering new markets. They do this to raise brand awareness and face the competition. Once they are established‚ they move the prices back up to position themselves as
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Case Study IS COCA-COLA THE PERFECT BUSINESS? A. One of the most important skills to learn in managerial economics is the ability to identify a good business. Discuss at least four characteristics of a good business. Based on the article about Coca-Cola‚ there are five essential characteristics of a business for it to be considered as a “Good Business”. First‚ it should be appealing to both young and old alike. Second‚ it must have a distinct characteristic which cannot be easily imitated
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The post-liberalization period in India saw the re-entry of Coca-cola. But Pepsi had already gained an edge by creatively entering the market in the 1980’s in advance of liberalization by way of a joint venture. It allowed Pepsi to gain precious early experience with the Indian market and also served as an introduction of the Pepsi brand to the Indian consumer such that it was well-poised to reap the benefits when liberalization came. Though Coke benefited from Pepsi creating demand and developing
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Coca Cola Channel Marketing Analysis After mentioned about what‚ where and who is done in Coca Cola’s channel marketing structure. In this part‚ we will mainly talk about how is it exactly done with their channel members. As we already know about the Coca Cola company‚ they are a well know worldwide company‚ therefore‚ they supplied different procedures in different cultures. Like we already talked above‚ Coca Cola “wholesales” its syrup concentrate (product) to franchises who carbonate and bottle
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