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