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96-619: The Coca-Cola Company is an American multinational corporation founded in 1892. It manufactures, sells and markets soft drinks including Coca-Cola , other non-alcoholic beverage concentrates and syrups, and alcoholic beverages. Its stock is listed on the New York Stock Exchange and is a component of the DJIA and the S&;P 500 and S&P 100 indexes. Coca-Cola was developed in 1886 by pharmacist John Stith Pemberton . At

192-507: A class action racial discrimination lawsuit and promised to change the way it manages, promotes, and treats minority employees in the US. In 2003, protesters at Coca-Cola's annual meeting claimed that black people remained underrepresented in top management at the company, were paid less than white employees, and fired more often. In 2004, Luke Visconti, a co-founder of DiversityInc, which rates companies on their diversity efforts, said: "Because of

288-571: A 40% stake in Chi Ltd on January 30, 2016. The Coca-Cola Company acquired the remaining 60% stake in Chi Ltd on January 30, 2019. In 2017, the Coca-Cola Company acquired Mexican sparkling water brand Topo Chico . On August 31, 2018, it agreed to acquire Costa Coffee from Whitbread for £3.9bn. The acquisition closed on January 3, 2019. During August 2018, the Coca-Cola Company acquired Moxie for an undisclosed amount. On August 14, 2018,

384-766: A basis in a national ethos , being ultimate without a specific nationhood, and that this lack of an ethos appears in their ways of operating as they enter into contracts with countries that have low human rights or environmental standards . In the world economy facilitated by multinational corporations, capital will increasingly be able to play workers, communities, and nations off against one another as they demand tax, regulation and wage concessions while threatening to move. In other words, increased mobility of multinational corporations benefits capital while workers and communities lose. Some negative outcomes generated by multinational corporations include increased inequality , unemployment , and wage stagnation . Raymond Vernon presents

480-413: A can size. The magazine Forbes has labeled Coca-Cola as the world's most polluting brand. The company's global chief executive stated that "Coca-Cola has no plans to reduce its use of plastic bottles" and opposes bottle bill legislation, as consumers prefer the plastic bottles that "reseal and are lightweight". They also contribute to plastic waste producing up to three million tons of plastic packaging

576-508: A corporation invests in a country in which it is not domiciled, it is called foreign direct investment (FDI). Countries may place restrictions on direct investment; for example, China has historically required partnerships with local firms or special approval for certain types of investments by foreigners, although some of these restrictions were eased in 2019. Similarly, the United States Committee on Foreign Investment in

672-510: A diet version. In 1995, Coca-Cola had 32% of the market share of soda sales in Peru while Inca Kola had 32.9%. Since that year, however, the market share for Inca Kola has increased due to some fast food chains including it in their menus. Bembos , a Peruvian fast-food chain, switched from serving Coca-Cola to Inca Kola in 1995. Due to popular demand, McDonald's also began to serve Inca Kola at its locations in Peru in 1995, before Coca-Cola owned

768-425: A foreign company, and therefore not deserving of their money. During 2004, Corporación José R. Lindley S.A. started talks to buy out Embotelladora Latinoamericana S.A. , a bottling business that had been bottling Inca Kola since 1973. They complained that the price of Inca Kola concentrate had increased sixfold since the merger with Coca-Cola. Consequently, they cancelled their contract to bottle Inca Kola in 2000. As

864-429: A free market system where there is little government interference. As a result, international wealth is maximized with free exchange of goods and services. To many economic liberals, multinational corporations are the vanguard of the liberal order. They are the embodiment par excellence of the liberal ideal of an interdependent world economy. They have taken the integration of national economies beyond trade and money to

960-587: A grandson of the founder and chairman of Corporación José R. Lindley S.A., became chairman of the joint venture between Coke and Inca Kola. Coca-Cola became the sole owner of the Inca Kola trademark everywhere outside Peru whereas inside Peru a joint-venture agreement was forged. To date, Ecuador and the United States (mostly New York and the rest of the Northeast) are two of the countries where Inca Kola

1056-576: A history museum, with locations in Las Vegas, Nevada , and Lake Buena Vista, Florida . The Coca-Cola Company also produces a number of other soft drinks including Fanta (introduced circa 1941), Sprite and Lilt , which was discontinued after 50 years and renamed Fanta Pineapple & Grapefruit. Fanta's origins date back to World War II during a trade embargo against Germany on cola syrup, making it impossible to sell Coca-Cola in Germany. Max Keith ,

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1152-462: A lemon-lime soft drink, another of the company's bestsellers and its response to 7 Up . Tab was Coca-Cola's first attempt to develop a diet soft drink, using saccharin as a sugar substitute . Introduced in 1963, the product was sold until fall 2020, although its sales had dwindled since the introduction of Diet Coke . Coca-Cola South Africa also released Valpre Bottled "still" and "sparkling" water. Multinational corporation Most of

1248-643: A long-term strategic partnership that includes marketing and distribution alliance, and product line swap. In 2015, the company took a minority stake ownership in the cold pressed juice manufacturer, Suja Life LLC. In December 2016, it bought many of the former SABMiller 's Coca-Cola operations. The Coca-Cola Company owns a 68.3% stake in Coca-Cola Bottlers Africa. Coca-Cola Bottlers Africa's headquarters located in Port Elizabeth South Africa. The Coca-Cola Company acquired

1344-490: A million troops to help, and by February 1991, Iraqi forces were expelled from Kuwait. Due to the oil boycott from Kuwait and Iran, oil prices rose and quickly recovered. Saudi Arabia once again led OPEC, and thanks to assistance in defending Kuwait, new relations emerged between the USA and OPEC. Operation "Desert Storm" brought mutual dependence among the main oil producers. OPEC continued to influence global oil prices but recognized

1440-709: A ninguna ). By the mid-1940s, Inca Kola was a market leader in Lima due to an aggressive advertising campaign. Appealing to the Peruvian nationalism that was prevalent among the population, the company positioned Inca Kola as a traditional Peruvian drink, using national and indigenous iconography and images. This advertising campaign was very successful, and bottling volume expanded greatly. Inca Kola reached levels of 38% market penetration by 1970, eclipsing all other carbonated drinks in Peru and firmly establishing itself as "Peru's Drink" ( La Bebida del Perú ). A common logo in

1536-478: A publicly traded company. Its stock is listed on the New York Stock Exchange under the ticker symbol "KO". One share of stock purchased in 1919 for $ 40, with all dividends reinvested, would have been worth $ 9.8 million in 2012, a 10.7% annual increase adjusted for inflation. A predecessor bank of SunTrust received $ 100,000 for underwriting Coca-Cola's 1919 public offering; the bank sold that stock for over $ 2 billion in 2012. In 1987, Coca-Cola once again became one of

1632-754: A result of the refranchising and bottler consolidations, multi-national/large-scale bottlers and three U.S.-based bottlers now dominate the manufacturing and distribution of the company's products except the territories managed by BIG bottlers. Multi-national/large-scale bottlers Bottlers headquartered and operated in the U.S. Company-owned bottling operation is now managed under BIG, which covers operations in Bangladesh, Cambodia, India, Malaysia, Myanmar, Nepal, Oman, Philippines, Singapore, and Sri Lanka as well as eastern African operation by Coca-Cola Beverages Africa in Port Elizabeth, South Africa. In 2021,

1728-673: A series of entertainment takeovers, namely Merv Griffin Enterprises and Embassy Communications in the mid-1980s, forming the Entertainment Business Sector, which would later merge with Tri-Star Pictures to start out Columbia Pictures Entertainment, with CPE holding a stake in the company. Coca-Cola sold Columbia to Sony for $ 3 billion in 1989. In 1986, Coke sold off two assets, namely Presto Products and Winker-Flexible Products to an investment group led by E.O. Gaylord for $ 38 million. The company acquired

1824-495: A year including over 110 billion plastic bottles. In 2018, Coca-Cola pledged to use 50% recycled materials in its packaging and to recycle the equivalent of 100% of its packaging by 2030. That same year, the company started to sell reusable bottles in Brazil, which customers could return to the point of sale for a discount of subsequent purchases. The initiative was expanded to several other South American countries by 2022. In 2019,

1920-546: Is available in parts of South America, North America and Europe, and while it has not enjoyed major success outside Peru, it can be found in Latin American specialty shops worldwide. Inca Kola is sold in bottles and cans and has an Inca motif. In 1910, in Rímac , one of Lima 's oldest and most traditional neighborhoods, an immigrant English family began a small bottling company under their family name, Lindley. In 1928,

2016-422: Is bottled by the Coca-Cola Company. During the time that the two giants were negotiating, various smaller companies began to emerge in Peru, selling drinks that competed both with Coca-Cola ( Peru Cola , Cola Nacional , Inti Cola , Kola Real , etc.) and Inca Kola ( Isaac Kola , Triple Kola , Concordia , Oro etc.). Their main selling point was that Inca Kola was no longer a Peruvian company, having sold out to

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2112-410: Is often handled through international arbitration . The actions of multinational corporations are strongly supported by economic liberalism and free market system in a globalized international society. According to the economic realist view, individuals act in rational ways to maximize their self-interest and therefore, when individuals act rationally, markets are created and they function best in

2208-462: Is sometimes categorized as a champagne cola . The Coca-Cola Company owns the Inca Kola trademark everywhere but in Peru. In Peru, the Inca Kola trademark is owned by Corporación Inca Kola Perú S.A. , which since 1999 is a joint venture between The Coca-Cola Company and the Lindley family, former sole owners of Corporación Inca Kola Perú S.A. and Corporación Lindley S.A. Inca Kola

2304-494: Is the main source of energy for producing high fructose corn syrup. The environmental impact of corn production can be attributed to three primary effects of field emissions, irrigation and grain decay. Coca-Cola has also been under fire for depleting water sources through their high water usages. Local villagers have testified that Coca-Cola's entry in Kaladera Rajasthan intensified lower water sources. Documents from

2400-401: Is then sold to various bottlers throughout the world who hold exclusive territories. In July 1886, pharmacist John Stith Pemberton from Columbus, Georgia invented the original Coca-Cola drink, which was advertised as helpful in the relief of headache, to be placed on sale primarily in drugstores as a medicinal beverage. Pemberton had made many mixing experiments and reached his goal during

2496-865: Is usually a large corporation incorporated in one country that produces or sells goods or services in various countries. Two common characteristics shared by MNCs are their large size and centrally controlled worldwide activities. MNCs may gain from their global presence in a variety of ways. First of all, MNCs can benefit from the economy of scale by spreading R&D expenditures and advertising costs over their global sales, pooling global purchasing power over suppliers, and utilizing their technological and managerial experience globally with minimal additional costs. Furthermore, MNCs can use their global presence to take advantage of underpriced labor services available in certain developing countries and gain access to special R&D capabilities residing in advanced foreign countries. The problem of moral and legal constraints upon

2592-848: The Dutch East India Company (VOC) founded in 1602. In addition to carrying on trade between Great Britain and its colonies, the British East India Company became a quasi-government in its own right, with local government officials and its own army in India. Other examples include the Swedish Africa Company founded in 1649 and the Hudson's Bay Company founded in 1670. These early corporations engaged in international trade and exploration and set up trading posts. The Dutch government took over

2688-670: The 19th century, such as the Rio Tinto company founded in 1873, which started with the purchase of sulfur and copper mines from the Spanish government. Rio Tinto, now based in London and Melbourne , Australia, has made many acquisitions and expanded globally to mine aluminum , iron ore , copper , uranium , and diamonds . European mines in South Africa began opening in the late 19th century, producing gold and other minerals for

2784-655: The 30 stocks which makes up the Dow Jones Industrial Average , which is commonly referenced as a proxy for stock market performance; it had previously been a Dow stock from 1932 to 1935. Coca-Cola has paid a dividend since 1920 and, as of 2019, had increased it each year for 57 years straight. The 10 largest shareholder of Coca-Cola in July 2024 were: The following are key management as of March 2023 (excluding VP positions and regional leaders): The following are all directors as of March 2023: In general,

2880-527: The Coca-Cola Company and its subsidiaries only produce syrup concentrate, as well as sourcing beverage base including coffee beans, tea leaf, juices, etc., which is then sold to various bottlers throughout the world who hold a local Coca-Cola franchise . Coca-Cola bottlers, who hold territorially exclusive contracts with the company, produce the finished product in packages from the concentrate and beverage base, in combination with filtered water and sweeteners. The bottlers then sell, distribute, and merchandise

2976-609: The Coca-Cola Company announced a minority interest in Body Armor. On September 19, 2018, the Coca-Cola Company acquired Organic & Raw Trading Co. Pty Ltd the manufacturer of MOJO Kombucha in Willunga, Australia. According to the Coca-Cola Company's 2005 annual report , it had sold beverage products in more than 200 countries that year. The 2005 report further states that of the approximately 50 billion beverage servings of all types consumed worldwide, daily, beverages bearing

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3072-478: The Coca-Cola Company offers more than 500 brands in over 200 countries. In September 2020, the company announced that it would cut more than half of its brands, as a result of the economic effects caused by the COVID-19 pandemic . Coca-Cola bought Columbia Pictures in 1982, owing to the low monetary value of the studio. The film company was the first and only studio ever owned by Coca-Cola. During its ownership of

3168-501: The Coca-Cola Company.' Within two hours of the end of that meeting, every ticket to the dinner was sold. Throughout 2012, Coca-Cola contributed $ 1,700,500 to a $ 46 million political campaign known as "The Coalition Against The Costly Food Labeling Proposition, sponsored by Farmers and Food Producers". This organization was set up to oppose a citizen's initiative, known as Proposition 37, demanding mandatory labeling of foods containing genetically modified ingredients. In 2012, Coca-Cola

3264-721: The Coca-Cola product to retail stores , vending machines, restaurants, and food service distributors. Outside the United States, these bottlers also control the fountain business. Since the 1980s, the company has actively encouraged the consolidation of bottlers, with the company often owning a share of these "anchor bottlers." In January 2006, the company formed the Bottling Investments Group (BIG), by bringing company-owned bottling operations together to strategically invest in select bottling operations, temporarily taking them under Coca-Cola ownership, and utilizing

3360-551: The English language. Senior officials, although mostly still Swedish, all learned English and all major internal documents were in English, the lingua franca of multinational corporations. After the war, the number of businesses having at least one foreign country operation rose drastically from a few thousand to 78,411 in 2007. Meanwhile, 74% of parent companies are located in economically advanced countries. Developing and former communist countries such as China, India, and Brazil are

3456-574: The Inca Kola brand (at the time, the only place in the world where Coca-Cola agreed to such an arrangement). Lindley underwent corporate restructuring in 1997. The expansion resulted in a debt load that took a heavy toll, and Lindley lost almost $ 5 million in 1999. The company, looking for outside help, turned to the Coca-Cola Co., which acquired half of Inca Kola Perú and one-fifth of Corporación José R. Lindley S.A. for an undisclosed sum believed to have been about $ 200 million. Johnny Lindley Taboada,

3552-813: The Indian cola brand Thums Up in 1993, and the American soda company Barq's in 1995. In 1999, Coca-Cola purchased 50% of the shares of Inca Kola for $ 200 million, subsequently taking control of overseas marketing and production for the brand. In 2001, it acquired the Odwalla brand of fruit juices, smoothies, and bars for $ 181 million. It announced Odwalla's discontinuation in 2020. In 2007, it acquired Fuze Beverage from founder Lance Collins and Castanea Partners for an estimated $ 250 million. The company's 2009 bid to buy Chinese juice maker Huiyuan Juice Group ended when China rejected its $ 2.4 billion bid, on

3648-575: The International Energy Agency (IEA), enabling states to coordinate policy, gather data, and monitor global oil reserves. In the 1970s, OPEC gradually nationalized the Seven Sisters. The Kingdom of Saudi Arabia, as the only largest world oil producer, could leverage this. However, Saudi Arabia opted for the correct approach and maintained consistent oil prices throughout the 1970s. In 1979, the "second oil shock" came from

3744-511: The Netherlands has become a popular choice, as its company laws have fewer requirements for meetings, compensation, and audit committees, and Great Britain had advantages due to laws on withholding dividends and a double-taxation treaty with the United States. Corporations can legally engage in tax avoidance through their choice of jurisdiction but must be careful to avoid illegal tax evasion . Corporations that are broadly active across

3840-558: The OLI framework. The other theoretical dimension of the role of multinational corporations concerns the relationship between the globalization of economic engagement and the culture of national and local responses. This has a history of self-conscious cultural management going back at least to the 60s. For example: Ernest Dichter, architect, of Exxon's international campaign, writing in the Harvard Business Review in 1963,

3936-464: The Third World colonies. That changed dramatically after 1945 as investors turned to industrialized countries and invested in manufacturing (especially high-tech electronics, chemicals, drugs, and vehicles) as well as trade. Sweden's leading manufacturing concern was SKF , a leading maker of bearings for machinery. In order to expand its international business, it decided in 1966 it needed to use

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4032-636: The U.S. applies its corporate taxation "extraterritorially", which has motivated tax inversions to change the home state. By 2019, most OECD nations, with the notable exception of the U.S., had moved to territorial tax in which only revenue inside the border was taxed; however, these nations typically scrutinize foreign income with controlled foreign corporation (CFC) rules to avoid base erosion and profit shifting . In practice, even under an extraterritorial system, taxes may be deferred until remittance, with possible repatriation tax holidays , and subject to foreign tax credits . Countries generally cannot tax

4128-541: The United States sanctions against Iran ; European companies faced with the possibility of losing access to the U.S. market by trading with Iran. International investment agreements also facilitate direct investment between two countries, such as the North American Free Trade Agreement and most favored nation status. Raymond Vernon reported in 1977 that of the largest multinationals focused on manufacturing, 250 were headquartered in

4224-506: The United States scrutinizes foreign investments. In addition, corporations may be prohibited from various business transactions by international sanctions or domestic laws. For example, Chinese domestic corporations or citizens have limitations on their ability to make foreign investments outside China, in part to reduce capital outflow . Countries can impose extraterritorial sanctions on foreign corporations even for doing business with other foreign corporations, which occurred in 2019 with

4320-614: The United States as the largest consumer and guarantor of the existing oil security order. Since the Iraq War, OPEC has had only a minor influence on oil prices, but it has expanded to 11 members, accounting for about 40 percent of total global oil production, although this is a decline from nearly 50 percent in 1974. Oil has practically become a common commodity, leading to much more volatile prices. Most OPEC members are wealthy, and most remain dependent on oil revenues, which has serious consequences, such as when OPEC members were pressured by

4416-461: The United States from 2010. The USA became the leading oil producer, creating tension with OPEC. In 2014, Saudi Arabia increased production to push new American producers out of the market, leading to lower prices. OPEC then reduced production in 2016 to raise prices, further worsening relations with the United States. By 2012, only 7% of the world's known oil reserves were in countries that allowed private international companies free rein; 65% were in

4512-629: The United States, 115 in Western Europe, 70 in Japan, and 20 in the rest of the world. The multinationals in banking numbered 20 headquartered in the United States, 13 in Europe, nine in Japan and three in Canada. Today multinationals can select from a variety of jurisdictions for various subsidiaries, but the ultimate parent company can select a single legal domicile ; The Economist suggests that

4608-766: The VOC in 1799, and during the 19th century, other governments increasingly took over private companies, most notably in British India. During the process of decolonization , the European colonial charter companies were disbanded, with the final colonial corporation, the Mozambique Company , dissolving in 1972. Mining of gold, silver, copper, and oil was a major activity early on and remains so today. International mining companies became prominent in Britain in

4704-507: The West to the post-colonial South and invest either in foreign expenditures or ostentatious economic development projects. After 1974, most of the money from OPEC members ceased as payments for goods and services or investments in Western industry. In February 1974, the first Washington Energy Conference was convened. The most significant contribution of this conference was the establishment of

4800-469: The behavior of multinational corporations, given that they are effectively "stateless" actors, is one of several urgent global socioeconomic problems that has emerged during the late twentieth century. Potentially, the best concept for analyzing society's governance limitations over modern corporations is the concept of "stateless corporations". Coined at least as early as 1991 in Business Week ,

4896-468: The chairman and CEO of Coca-Cola, and Mayor Ivan Allen summoned key Atlanta business leaders to the Commerce Club's eighteenth-floor dining room, where Austin told them flatly, 'It is embarrassing for Coca-Cola to be located in a city that refuses to honor its Nobel Prize winner. We are an international business. The Coca-Cola Company does not need Atlanta. You all need to decide whether Atlanta needs

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4992-742: The collapse of the Shah's regime in Iran. Iran became a regional power due to oil money and American weapons. The Shah eventually abdicated and fled the country. This prompted a strike by thousands of Iranian oil workers, significantly reducing oil production in Iran. Saudi Arabia tried to cope with the crisis by increasing production, but oil prices still soared, leading to the "second oil shock." Saudi Arabia significantly reduced oil production, losing most of its revenues. In 1986, Riyadh changed course, and oil production in Saudi Arabia sharply increased, flooding

5088-654: The companies. This occurred in 1960. Prior to the 1973 oil crisis , the Seven Sisters controlled around 85 percent of the world's petroleum reserves . In the 1970s, most countries with large reserves nationalized their reserves that had been owned by major oil companies. Since then, industry dominance has shifted to the OPEC cartel and state-owned oil and gas companies, such as Saudi Aramco , Gazprom (Russia), China National Petroleum Corporation , National Iranian Oil Company , PDVSA (Venezuela), Petrobras (Brazil), and Petronas (Malaysia). A unilateral increase in oil prices

5184-585: The company announced its intention to list Coca-Cola Beverages Africa as a publicly traded company. However, in June 2022 it announced that it was delaying this plan, pending an evaluation of macroeconomic conditions. After Martin Luther King Jr. won the 1964 Nobel Peace Prize , plans for an interracial celebratory dinner in still- segregated Atlanta were not initially well supported by the city's business elite until Coca-Cola intervened. J. Paul Austin ,

5280-443: The company was formally chartered in Peru as Corporación José R. Lindley S.A. , whereupon Joseph R. Lindley became its first General Manager. By the early 1930s, the company had a line of ten flavors of soda including Orange Squash, Lemon Squash, Champagne Kola, and Cola Rosada. In 1935, on the occasion of the 400th anniversary of Lima's founding, Lindley introduced what was to become its most noted product, Inca Kola, whose flavor

5376-559: The company's Swedish branch marked the first to fully transition to recyclable bottles by 2020. Coca-Cola using high fructose corn syrup has a lower sustainability compared to producing sugary drinks with sugar cane. High fructose corn syrup is carbon intensive due to the substantial amounts of fossil fuels required to power heavy machinery. Turning corn into high fructose corn syrup is an energy intensive process requiring large amounts of carbon to be expended especially during corn growth. Burning fossil fuels releases CO 2 and CH 4 which

5472-510: The conception was theoretically clarified in 1993: that an empirical strategy for defining a stateless corporation is with analytical tools at the intersection between demographic analysis and transportation research. This intersection is known as logistics management , and it describes the importance of rapidly increasing global mobility of resources. In a long history of analysis of multinational corporations, we are some quarter-century into an era of stateless corporations—corporations that meet

5568-415: The course equated with being less "arrogant" and "oppressive." Coca-Cola advertising has "been among the most prolific in marketing history," with a notable and major impact on popular culture and society. The company in recent years has spent approximately an annual $ 4 billion globally to promote its drinks to the public; and spent approximately $ 4.24 billion on advertising in fiscal year 2019, most of which

5664-643: The creation of a "world customer". The idea of a global corporate village entailed the management and reconstitution of parochial attachments to one's nation. It involved not a denial of the naturalness of national attachments, but an internationalization of the way a nation defines itself. "Multinational enterprise" (MNE) is the term used by international economist and similarly defined with the multinational corporation (MNC) as an enterprise that controls and manages production establishments, known as plants located in at least two countries. The multinational enterprise (MNE) will engage in foreign direct investment (FDI) as

5760-487: The current largest and most influential companies are publicly traded multinational corporations, including Forbes Global 2000 companies. The history of multinational corporations began with the history of colonialism . The first multi-national corporations were founded to set up colonial "factories" or port cities. The two main examples were the British East India Company founded in 1600 and

5856-762: The debate from a neo-liberal perspective in Storm over the Multinationals (1977). Inca Kola Inca Kola (also known as "Golden Kola" in international advertising) is a soft drink that was created in Peru in 1935 by British immigrant Joseph Robinson Lindley. The soda has a sweet, fruity flavor that somewhat resembles its main ingredient, lemon verbena (not to be confused with lemongrass , both of which can be known as hierbaluisa in Spanish). Americans compare its flavor to bubblegum or cream soda , and it

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5952-665: The drink with the limited budget that he had, and succeeded. American businessman Asa Griggs Candler purchased the Coca-Cola formula and brand, forming the Coca-Cola Company in Atlanta in 1892. By 1895, Coca-Cola was being sold nationwide. In 1919, the company was sold to Ernest Woodruff 's Trust Company of Georgia, after which it was soon reincorporated under the Delaware General Corporation Law that same year. Coca-Cola's first ad read "Coca Cola. Delicious! Refreshing! Exhilarating! Invigorating!" Candler

6048-481: The firm makes direct investments in host country plants for equity ownership and managerial control to avoid some transaction costs . Sanjaya Lall in 1974 proposed a spectrum of scholarly analysis of multinational corporations, from the political right to the left. He put the business school how-to-do-it writers at the extreme right, followed by the liberal laissez-faire economists, and the neoliberals (they remain right of center but do allow for occasional mistakes of

6144-478: The government's water ministry reveal water levels remained stable from 1995 until 2000, when the Coca-Cola was first operational. Water levels then dropped by almost ten meters during the next five years. Other communities in India that are located around Coca-Cola's bottling plants are experiencing water shortages as well as environmental damage taking heavy tolls on harvests as well as drying up wells. In November 2000, Coca-Cola agreed to pay $ 192.5 million to settle

6240-610: The grounds the resulting company would be a virtual monopoly. Nationalism was also thought to be a reason for aborting the deal. In 2011, it acquired the remaining stake in Honest Tea , having bought a 40% stake in 2008 for $ 43 million. In 2013, it finalized its purchase of ZICO , a coconut water company. In August 2014, it acquired a 16.7% (currently 19.36% due to stock buy backs) stake in Monster Beverage for $ 2.15 billion with an option to increase it to 25%, as part of

6336-416: The hands of state-owned companies that operated in one country and sold oil to multinationals such as BP, Shell, ExxonMobil and Chevron. Down through the 1930s, about 80% of the international investments by multinational corporations were concentrated in the primary sector, especially mining (especially oil) and agriculture (rubber, tobacco, sugar, palm oil , coffee, cocoa, and tropical fruits). Most went to

6432-663: The head of Coca-Cola's German office during the war, decided to create a new product for the German market, made only from products available in Germany at the time, which they named Fanta. The drink proved to be a hit, and when Coke took over again after the war, it adopted the Fanta brand as well. Fanta was originally an orange-flavored soft drink that can come in plastic bottles or cans. It has become available in many different flavors now such as grape, peach, grapefruit, apple, pineapple, and strawberry. In 1961, Coca-Cola introduced Sprite,

6528-576: The international oil market. Iran was unable to sell any of its oil. In August 1953, the then-prime minister was overthrown by a pro-American dictatorship led by the Shah, and in October 1954, the Iranian industry was denationalized. Worldwide oil consumption increased rapidly between 1949 and 1970, a period known as the 'golden age of oil'. This increase in consumption was caused not only by the growth of production by multinational oil companies but also by

6624-415: The internationalization of production. For the first time in history, production, marketing, and investment are being organized on a global scale rather than in terms of isolated national economies. International business is also a specialist field of academic research. Economic theories of the multinational corporation include internalization theory and the eclectic paradigm . The latter is also known as

6720-460: The largest recipients. However, 70% of foreign direct investment went into developed countries in the form of stocks and cash flows. The rise in the number of multinational companies could be due to a stable political environment that encourages cooperation, advances in technology that enable management of faraway regions, and favorable organizational development that encourages business expansion into other countries. A multinational corporation (MNC)

6816-521: The late 1970s and early 1980s featured the slogan "Made of National Flavor!" ( ¡De Sabor Nacional! ), later changed to "The taste of Peru" ( El Sabor del Perú ). On January 22, 2009, Inca Kola partnered with D'Onofrio , an iconic Peruvian ice cream brand owned by Nestlé , to launch an Inca Kola flavored ice pop. In the United States, Inca Kola is manufactured by the Coca-Cola company and sold in supermarkets in 2-liter (68 U.S. fl oz) bottles, cans, and individual bottles. It also sells

6912-474: The laws and regulations of both their domicile and the additional jurisdictions where they are engaged in business. In some cases, the jurisdiction can help to avoid burdensome laws, but regulatory statutes often target the "enterprise" with statutory language around "control". As of 1992 , the United States and most OECD countries have the donot legal authority to tax a domiciled parent corporation on its worldwide revenue, including subsidiaries. As of 2019 ,

7008-479: The leadership and resources of the company. Also, the company has accelerated refranchising both company-owned bottlers and independent bottling partners to consolidate their operations and move away from the capital-intensive and low-margin business of bottling, with maintaining minor share ownership of these consolidated bottlers and secure the right to nominate directors and/or executives through shareholders agreement and/or capital and business alliance agreement. As

7104-494: The market with cheap oil. This caused a worldwide drop in oil prices, hence the "third oil shock" or "counter-shock." However, this shock represented something much bigger—the end of OPEC's dominance and its control over oil prices. Iraqi President Saddam Hussein decided to attack Kuwait. The invasion sparked a crisis in the Middle East, prompting Saudi Arabia to request assistance from the United States. The United States sent

7200-543: The marketplace such as externalities). Moving to the left side of the line are nationalists, who prioritize national interests over corporate profits, then the "dependencia" school in Latin America that focuses on the evils of imperialism, and on the far left the Marxists. The range is so broad that scholarly consensus is hard to discern. Anti-corporate advocates criticize multinational corporations for being without

7296-432: The month of May, but the new product was as yet unnamed and uncarbonated. Pemberton's bookkeeper, Frank Mason Robinson , is credited with naming the product and creating its logo. Robinson chose the name Coca-Cola because of its two main ingredients (coca leaves and kola nuts) and because it is an alliteration. John Pemberton had taken a break and left Robinson to make, promote, and sell Coca-Cola on his own. Robinson promoted

7392-560: The price collapse in 1998–1999. The United States still maintains close relations with Saudi Arabia. In 2003, U.S. forces invaded Iraq with the aim of removing the dictatorship and gaining access to Iraqi oil reserves, giving the United States greater strategic importance from 2000 to 2008. During this period, there was a constant shortage of oil, but its consumption continued to rise, maintaining high prices and leading to concerns about "peak oil". From 2005 to 2012, there were advances in oil and gas extraction, leading to increased production in

7488-611: The realities of the needs of source materials on a worldwide basis and to produce and customize products for individual countries. One of the first multinational business organizations, the East India Company , was established in 1601. After the East India Company came the Dutch East India Company , founded on March 20, 1603, which would become the largest company in the world for nearly 200 years. The main characteristics of multinational companies are: When

7584-400: The settlement decree, Coca-Cola was forced to put in management practices that have put the company in the top 10 for diversity." In March 2012, 16 workers of color sued Coca-Cola, claiming they had to work in a "cesspool of racial discrimination." In February 2021, recordings of an employee training course were leaked on social media. The course instructed employees to "be less white", which

7680-501: The strong influence of the United States on the global oil market. In 1959, companies lowered the price of oil due to a surplus in the market. This reduction dealt a significant blow to the finances of producers. Saudi oil minister Abdullah Tariki and Venezuela’s Juan Perez Alfonso entered into a secret agreement (the Mahdi Pact), promising that if the price of oil was lowered a second time, they would take collective action against

7776-505: The studio, Columbia released many popular films including Ghostbusters , Stripes , The Karate Kid , and some others. However, two years after the critical and commercial failure of the 1987 film Ishtar , Columbia was spun-off and then sold to Tokyo -based Sony in 1989. Coca-Cola operates a soft drink themed tourist attraction in Atlanta, Georgia; the World of Coca-Cola is a multi-storied exhibition. It features flavor sampling and

7872-475: The time it was introduced, the product contained cocaine from coca leaves and caffeine from kola nuts which together acted as a stimulant . The coca and the kola are the source of the product name, and led to Coca-Cola's promotion as a "healthy tonic". Pemberton had been severely wounded in the American Civil War , and had become addicted to the pain medication morphine . At the time, cocaine

7968-494: The trademarks owned by or licensed to Coca-Cola account for more than 1.3 billion. Of these, beverages bearing the trademark "Coca-Cola" or "Coke" accounted for approximately 55% of the company's total gallon sales. In 2010, it was announced that Coca-Cola had become the first brand to top £1 billion in annual UK grocery sales. In 2017, Coca-Cola sales were down 11% from the year before due to consumer tastes shifting away from sugary drinks. Since 1919, Coca-Cola has been

8064-496: The world market, jobs for locals, and business and profits for companies. Cecil Rhodes (1853–1902) was one of the few businessmen in the era who became Prime Minister (of South Africa 1890–1896). His mining enterprises included the British South Africa Company and De Beers . The latter company practically controlled the global diamond market from its base in southern Africa. In 1945, the United States

8160-573: The world without a concentration in one area have been called stateless or "transnational" (although "transnational corporation" is also used synonymously with "multinational corporation" ), but as of 1992, a corporation must be legally domiciled in a particular country and engage in other countries through foreign direct investment and the creation of foreign subsidiaries. Geographic diversification can be measured across various domains, including ownership and control, workforce, sales, and regulation and taxation. Multinational corporations may be subject to

8256-420: The world" pumping out 200,000 plastic bottles a minute. Problems also arose in places such as Samoa where Coca-Cola switched away from reusable glass bottles to one time use plastic bottles. Residents of Samoa have seen an increase in plastic pollution since this switch has been made. Alternatives to plastic such as aluminum have also been overlooked with Coca-Cola releasing a new plastic bottle slightly bigger than

8352-503: The worldwide revenue of a foreign subsidiary, and taxation is complicated by transfer pricing arrangements with parent corporations. For small corporations, registering a foreign subsidiary can be expensive and complex, involving fees, signatures, and forms; a professional employer organization (PEO) is sometimes advertised as a cheaper and simpler alternative, but not all jurisdictions have laws accepting these types of arrangements. Disputes between corporations in different nations

8448-417: Was based on Lemon Verbena ( Spanish : Verbena de Indias , Hierbaluisa or Cedrón ). He had experimented with various mixtures, other ingredients and levels of carbonation, until finally he came up with this combination of thirteen special plant-derived flavors. The company launched "Inca Kola" under the slogan "There is only one Inca Kola and it's like no other" ( Inca Kola sólo hay una y no se parece

8544-500: Was being promoted as a "cure" for opioid addiction, so he developed the beverage as a patent medicine in an effort to control his addiction. In 1889, the formula and brand were sold for $ 2,300 (roughly $ 71,000 in 2022) to Asa Griggs Candler , who incorporated the Coca-Cola Company in Atlanta , Georgia in 1892. The company has operated a franchised distribution system since 1889. The company largely produces syrup concentrate, which

8640-438: Was enabled by multinational corporations known as the 'Seven Sisters'. The "Seven Sisters" was a common term for the seven multinational companies that dominated the global petroleum industry from the mid-1940s to the mid-1970s. The nationalization of the Iranian oil industry in 1951 by Iranian Prime Minister Mohammad Mosaddegh and the subsequent boycott of Iranian oil by all companies had dramatic consequences for Iran and

8736-448: Was fully aware that the means to overcoming cultural resistance depended on an "understanding" of the countries in which a corporation operated. He observed that companies with "foresight to capitalize on international opportunities" must recognize that " cultural anthropology will be an important tool for competitive marketing". However, the projected outcome of this was not the assimilation of international firms into national cultures, but

8832-546: Was labeled as "the largest nonviolent transfer of wealth in human history." The OPEC sought immediate discussions regarding participation in national oil industries. Companies were not inclined to object as the price hike benefited both them and OPEC members. In 1980, the Seven Sisters were entirely displaced and replaced by national oil companies (NOCs). The rise in oil prices burdened developing countries with balance of payments deficits, leading to an energy crisis. OPEC members had to abandon their plan of redistributing wealth from

8928-886: Was listed as a partner of the (RED) campaign, together with other brands such as Nike , Girl , American Express , and Converse . The campaign's mission is to prevent the transmission of the HIV virus from mother to child by 2015 (the campaign's byline is "Fighting for an AIDS Free Generation"). Since the early 2000s, the criticisms over the use of Coca-Cola products as well as the company itself, escalated with concerns over health effects, environmental issues, animal testing , economic business practices and employee issues. The Coca-Cola Company has been faced with multiple lawsuits concerning these various criticisms. The Coca-Cola Company produces over 3 million tonnes of plastic packaging each year including 110 billion plastic bottles . The company has been referenced as "the worst plastic polluter in

9024-411: Was one of the first businessmen to use merchandising in his advertising strategy. As of 1948, Coca-Cola had claimed about 60% of its market share. By 1984, the Coca-Cola Company's market share decreased to 21.8% due to new competitors. Coca-Cola acquired Minute Maid in 1960 for an undisclosed amount. In 1982, it acquired the movie studio Columbia Pictures for $ 692 million. Coca-Cola then launched

9120-574: Was spent to advertise Coca-Cola. Coca-Cola advertises through direct marketing, web-based media, social media, text messaging, and sales promotions. The company also markets via mobile marketing in text messages, e.g. viral marketing campaigns. Fan engagement spans 86 million globally across social media channels: online interaction, and social, cultural, or sporting events. In the retail setting, direct store beverage delivery trucks (mobile advertising) as well as point of sale coolers and vending machines have bright red logo blazoned branding. As of 2020,

9216-513: Was the world's largest oil producer. However, their reserves were declining due to high demand. Therefore, the United States turned to foreign oil sources, which had a significant impact on the recovery of the West after World War II. Most of the world's oil was found in Latin America and the Middle East, particularly in the Arab states of the Persian Gulf. This increase in non-American production

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