What issues are likely to arise in a developing country when a global giant like Coca-Cola begins operations there? What kinds of advantages does such an expansion bring to the globalizing organization?

International markets bus 402 | Business & Finance homework help

When a global giant like Coca-Cola begins operations in a developing country, there are likely to be various issues that arise due to the complex nature of doing business in such markets. For example, local regulations may differ from those in more established countries which could result in additional costs/delays when trying to meet compliance requirements.

Furthermore, cultural/linguistic barriers can also hinder expansion efforts as it may be difficult for global companies to communicate their message with potential consumers without tailoring content accordingly. In addition, competition may also prove tough if rival firms have already secured market share & brand loyalty through years of operation within that particular region.

On the other hand, expanding into new markets carries with it numerous benefits for organizations such as increased revenues & access to wider talent pools etc.; thus allowing them to tap into opportunities that would otherwise not be available elsewhere. Moreover, these types of expansions can also lead to greater awareness – particularly from an international perspective – resulting in higher demand & improved perception over time.

Therefore it is clear that there are both advantages and challenges associated with any kind of globalization activity – however experienced management teams coupled with appropriate strategies can help minimize potential risks while still reaping the rewards going forward.