Challenges in the Global Business Environment Essay - 1

Challenges in the Global Business Environment - Essay Example zation has false links with labor malpractices such as child labor, discrimination in providing health care to its staff, sweatshops and in addition, it is facing stiff competition from other organizations such as Pepsi (Starbard 2008 pg78). Competitors like Pepsi are introducing alternative beverages such as energy drinks, mineral water, fruit juice, and Gatorade. This has challenged coca-cola to diversify its products by introducing brands such as minute maid, mineral water, sprite among others. The coca cola business is truly global and consumers recognize its main brands globally. The organization has structured itself in such a way that reflects a global view. This is achieved by decentralization of operation and setting up of production plants in over 200 countries in the world. In 2001, Coca Cola Company restructured its business geographically in different operating stations all over the world. In this process, the organization renamed these centers and rebranded them. North America station changed to include; Puerto Rico, which was initially stationed in Latin America. Eurasia was changed to reflect Eurasia, Middle East, and Europe. Africa and Middle East also changed their name to coca cola Africa. The company essentially produces concentrate and syrup and sells them to bottling companies all over the world. The bottling and canning companies have the role of packaging and distributing final products. There is an agreement between the Coke Company and separate bottling companies on how to produce and sell coke products. The agreement authorizes the bottlers to produce and sell beverages bearing the trademark of Coke in identified countries and territories. Coke engage in business with three types of bottlers or contractors; bottling companies where the organization has invested in and has no controlling or management interest, bottling contractors where the organization has invested and has controlling intentions and finally bottling companies where

Corporate Repurchase Research Paper Example | Topics and Well Written Essays - 2000 words

Corporate Repurchase - Research Paper Example This is an indication of a growing business when people are buying business' stocks. The business growth benefits both, the owners, as well as the investors. In order to extend the stock fundraising, corporations repurchase their stocks. This process is commonly known as a 'corporate repurchase'. 'Repos', 'buybacks', 'reverse repos', 'or 'repurchase agreements' are also some terms implying the same process. (WiseGEEk, 2009) A repurchase agreement, also known as lending buyback occurs when all or some of the securities, comprising of bonds, stocks, or money markets; are sold by the corporation at a premium. The corporation agrees to buyback these securities later at a higher price. A repurchase agreement is very similar to a 'secured loan' in different ways as the securities are taken as collateral. Typically, the repayment takes place after a few months. This is the case of a short option loan. Long option loan, for which repayment can be prolonged up to two years, are not so common. (WiseGEEk, 2009) When corporations buy their own stocks from the general market or stockholders in a systematic fashion, it is called a corporate buyback. In order to cut down the costs of the repurchase agreement, the corporations can combine it with a corporate repurchase program. ... This is a possibility when there are two differing ideas. (WiseGEEk, 2009) A corporate repurchase program can strategically explain that a company thinks of its stock in the market as undervalued. When the companies offer a buyback plan, they are actually cutting down the amount of outstanding stocks, as corporate heads are allowed to buy stocks from stockholders. Thus, the stock price goes up. (WiseGEEk, 2009) A corporate repurchase may also be undertaken for other reasons. It can be used to offset the costs that are incurred when companies offer a compensation package to the workers. It may also be used to strengthen internal control. A company's stock earnings weaken when it is offering stock options or provides for a 401K. Stocks are brought back into the control of the company when a buyback occurs. The worth of stocks also increases for the existing stockholders. (WiseGEEk, 2009) A corporate repurchase can be carried out in several ways. For instance, existing stockholders can be consulted. An offer is made to them to purchase the stocks at a premium. Investors do not get much time to accomplish it. Another way of repurchasing stocks is by acquiring stocks on the market. This process takes a long time. Corporate repurchase is indeed a very effective way that enables businesses to purchase the company back from stockholders. If 100% of the company's stocks are bought back, the corporation may become private and abandon the public trade method. (WiseGEEk, 2009) Buybacks are a way of administrating the buyers' market. The process limits the stocks for investors. Supply and demand of stocks is controlled when a company engages in a buyback. A buyers' market is transformed into a seller's market as the