The Coca-Cola Corporation is a soft drink company based in Atlanta, Georgia, that was established in 1892. The Coca-Cola Company has evolved to become the biggest coffee company since its foundation. It today has over 3,500 beverages and 500 brands in its inventory (DeMello et al., 2018). The Coca-Cola Business is also the most identifiable brand in the world, with the iconic red and white organization company logo in Spenserians Script, a fashionable handwriting style in the 1880s. Coca-Cola is the global second most well-known word, after “okay,” according to studies (Gartner & Rifkin, 2017). This research is going to analyze Coca-Cola company in Kenya and Describe its business model, how it operates with laws and culture, and later explain the differences between working in America and Kenya.
Coca-Cola Business Model in Kenya and how it Works
Coca-Cola began operations in Kenya in 1948 with a quarter-acre production unit in Nairobi, the country’s capital. The popularity of the company’s products among Kenyans prompted management to construct a second production line in Mombasa, Kenya’s coastal metropolis. Since then, the company has expanded through joint ventures and franchises with key partners. Coca-Cola is currently the country’s most successful non-alcoholic beverage manufacturer. Coca-Cola offers a diverse selection of beverages in Kenya, including Coca-Cola, Fanta, Sprite, and Stoney soft drinks, as well as Dasani drinking water. During celebrations, Kenyans generally prefer soft drinks. Over 42 million people live in the country, with teenagers accounting for 70% of the population (Yönet & Yirmibeşoğlu, 2018). Since most young people in Kenya enjoy celebrating, they end up using the company’s products in huge numbers; this is a potential market for the company’s products.
Kenya’s pricing mechanism resembles an oligopoly, with a small number of dominant businesses. Apart from Coca-Dasani, Cola’s two other products dominate the bottled water industry. Kernighan and Aquamist are the market leaders, with a large market share of more than 60%. The Company is one of the big companies that provide the government with high income in Kenya. Despite facing competition from some emerging companies it has tried to maintain its position by ensuring that it produces high-quality products. This ability to provide high-quality products has maintained its position of being among the top beverage-providing company in Kenya.
Ways in Which Coca-Cola Company Operate With Laws and Culture within Kenya
The company ensures that it adheres to the rules and regulations of the country. It pays tax to the relevant authority although the tax charges are quite high. The company produces goods that have been authorized by the Kenya Bureau of Standards (KEBS) hence not conflicting with the law of the country at any level (Resta, 2019). Furthermore, Coca-Cola is working hard to foster a culture of inclusion that is rooted in our company’s mission to refresh the world and make a difference. It acts with a positive mindset, thinks big about what is possible, and believes in lifelong learning to better the company and workers. The company appreciates how their employee works, therefore, focusing on four essential behaviors: inquisitive, motivated, collaborative, and agile.
The company’s culture is indeed one of the reasons it has survived for over 130 years. Coca-Cola Kenya is an equivalent chance employer that does not victimize contrary to any worker or job interviewee. This is due to discrimination based on ethnicity, color, gender, age, national origin, religion, gender identity, gender identification and/or expression, veteran status, handicap, or any other federal, state, or municipal racial minority. When collecting confidential info as part of the interview process application or offer of employment, the company follows industry standards and best practices, as well as applicable privacy regulations.
Despite this, the culture of an organization is one of the most difficult aspects of reform management in the company, as it includes both formal and informal operational components. The company’s conceptualization has also been harmed. So, in addition to on tenders, the firm has focused on corporate culture. Corporate culture has emerged as a critical factor in determining the success of transformation attempts at Coca-Cola Limited in Kenya. The company’s strategic change management methods are harmed by a lack of acceptance of how the plan should be implemented and a disdain for day-to-day company requirements.
Differences between Working in Coca-Cola Company in America and Kenya
Many differences arise when comparing the working of America Coca-Cola Company and that of Kenya. In Kenya, the company experiences many challenges during its operation since it is among the third-world countries which are developing. The high level of taxes imposed on the company in Kenya to increase the county’s revenue makes the company lag behind in terms of growth and development. America is a well-developed country hence the taxation is less thus giving the company the chance to grow and develop significantly (Woo et al., 2017). Transportation of the company’s product in Kenya is poor due to poor infrastructure for example roads. Many roads are dry weather roads hence making it difficult for the company to reach its company in remote areas. In America, roads are well tarmacked hence their products reach many of their customer’s countrywide hence increasing their sales.
In addition, there is better developed technology in America compared to Kenya. This makes it easier for the company to produce more beverages thus increasing their sales volume which increases their profits margin. Poor technology in Kenya only allows the production of fewer goods which makes their profit margin less (Budak & Sarvari, 2021). High Illiteracy levels in Kenya enhance poor working skills which reduced the number of sales in the company. Sometimes this leads to the company incurring losses hence making it lag economically. High-skilled personnel in America enable the company to make huge profits thus improving well economically. The market in America is global, unlike Kenya which is just within its boundaries. America can sell its products to many countries internationally hence not only benefiting from revenue but also foreign income. Kenya sells its coca-cola products internally hence enjoying only revenue thus making the company develop slowly.
For the past three decades, Coca-Cola has been a huge success in Kenya’s soft drink sector. The corporation has also expanded into new marketplaces, such as bottled rainwater, beneath the Dasani variety. Nonetheless, because new companies are entering the market, the multinational soft drink behemoth’s supremacy is going to be challenged. Foreign and local investors are among the new arrivals. As a result, Coca-Cola will need to make some strategic changes to compete effectively. Additionally, it is also evident that The Kenya Coca-Cola Company is facing challenges compared to America. Kenya should seek support from developed countries to help reduce the challenges that it is facing. It is clear that if Kenya fills the business gap that it is facing, the company can grow and reach a point of selling its products universally.
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