International Business Research

Results

Data was collected using different primary and secondary sources, and the results were recorded. 80% of workers in the company claimed that they were comfortable while working with the Coca–Cola Company, while the rest claimed that they did not enjoy the working conditions in the company. 76% of the interviewees claimed that the wages and salaries from the company were their primary sources of income. All the employees said they were receiving company insurance coverage, and some had been trained to administer first aid to casualties.

The manager claimed that the company’s relationship with the government is good and the company abides by the rules and regulations of society. The manager claimed that Coca-Cola Co. paid taxes to the local authorities. He also told us that the company recycles glass bottles which are returned to the company after use. The plastic bottles were also branded with the recycle logo. The manager, through the interview, informed that the company’s long-term goal is to increase the generation of revenues, create more job opportunities for locals, improve environmental conservation measures and campaigns. He also added that the company has been promoting local talents such as music and sports activities. However, the company has been having challenges recycling all its used bottles, frequently being accused of environmental pollution. The manager also admitted that the unavailability of cheap and reliable electric power is another challenge to the sustainable redevelopment of the company.

According to Macrotrends, the worldwide annual number of employees in the Coca-Cola Company has been increasing in the recent past. The table shows a relative increase in the number of employees from 2017 to 2022. The income taxes have also been rising over the past six years.

The company has introduced new technology in the production and training of the staff on how to use the technology. The record-keeping process has been changing with technology over the past few years. The sales and marketing team claimed that they had increased the number of online advertisements on various social media handles and through road shows. 95% of the customers said that the company’s products are the best quality available, while 5% claimed that the products are not different from other locally made soft drinks. They claimed that the company offers the best promotions to customers. The customers, especially those with diabetes, were also happy because of the introduction of Coke without sugar in the market. Retailers also claimed that the company provides free refrigerators for storing and preserving the company’s beverage products.

Discussion

International trade has created employment opportunities for the local communities in Kenya. The number of employees directly employed in the company has been increasing annually except in 2020 and 2021, many due to the effects of COVID-19 on the economy and the public health policy of social distancing in working environments (Mou, 2020). Other people have been employed indirectly through advertisements. Odukah (2016) shows that most employees in the company are always motivated by better working conditions, recognition of their performance, training, and personal development. The employees are able to get income that enables them to get basic needs and educate their children for a better sustainable economy.

The company also contributes to Kenya’s revenue by paying income taxes. The income tax has been increasing annually over the past six years. As part of its effort to create sustainability, the Coca–Cola Company has various goals such as paying taxes, creating jobs, and community investment (Brondoni, 2019). This company has brought foreign investment, expertise, and technology that is highly needed to stimulate development and economic growth in the country. The aspects of technology introduced range from record keeping to the production process and, finally the marketing of the products. The adopted modern techniques of production accelerate productivity and growth.

The beverage company has also been promoting good health care in the country. All the workers in the company have medical coverage. Medical insurance has been shown to influence people’s health-seeking behavior; hence, they can visit healthcare facilities whenever they are sick (Al-Hanawi et al., 2020). Over the recent years, the public health concern for the reduction of consumption of excessive sugar and its relation with obesity has affected the company as well (Gertner & Rifkin, 2018). Lacy-Nichols et al. (2020) illustrate how the Coca-Cola Company has changed its products to fit people with diabetes. This special reformulation contains beverages without sugar. Such changes in the reformulation are either driven by public health policies or government regulation, but they ensure citizens’ safety and increased beverage consumption. These and more actions by the company have promoted health in the country.

The company has conserved the environment by recycling and reusing its bottles. The empty glass bottles are returned to the company, where they are washed and reused for the packaging of beverages. Glass packaging can cause environmental pollution if not properly handled. Broken glass bottles may cause injuries to people. Glass bottles use many raw materials for production hence recycling them decreases the cost of production and consequent decrease in the cost of the beverages (Kovacec et al., 2019).

International businesses like Coca-Cola have the potential to provide developing countries like Kenya access to the international market. These countries increase their export and generate more foreign exchange. The country uses foreign exchange to buy and import goods and services which we cannot produce locally in the country (Baillie & McMahon, 1989). The good relationship between the company and the government has enabled further growth of international trade.

Despite the fact that the many benefits international companies bring to our country and society, they are also faced with challenges from within the business and externally. The company is in many countries, and each local authority has varying regulations. Therefore, the company has to adjust to the different authorities, which can be challenging. The company’s products do not compete favorably with those produced locally; hence this may hinder the growth of locally owned companies producing similar products. Gertner and Rifkin (2018) explain how the Coca-Cola Company was severely affected by the global obesity epidemic. The company was accused of contributing directly to obesity due to the high sugar content in the beverage products. Poor infrastructure, such as roads and unreliable electricity, are other challenges international businesses face in the country.

Conclusion

International trade, such as the Coca-Cola Company, plays a crucial role in creating sustainable development in a country like Kenya. This kind of trade has created employment opportunities with higher wages for the citizens of Kenya. These trades have also enabled developing countries to adopt modern technology in their production. The company has overcome domestic investors’ market failure and opened a channel for accessing the international market for trade. International businesses have been at the forefront of promoting health and conserving the environment in the countries where they are found and should be encouraged. The companies also contribute vast amounts of money to the income revenue in the form of income taxes.

Despite their many benefits to the people and the economy, international businesses experience several challenges. Some of the challenges are variant with the country, but others are universal. These challenges include poor leadership and infrastructure, diversity of regulations with different local authorities, and competition between local products and public health policies. The government should smoothen the process of establishment of international businesses in the country and create a favorable local working environment for the businesses.

References

Al-Hanawi, M. K., Mwale, M. L., & Kamninga, T. M. (2020). The Effects of Health Insurance on Health-Seeking Behaviour: Evidence from the Kingdom of Saudi Arabia. Risk management and healthcare policy, 13, 595–607. https://doi.org/10.2147/RMHP.S257381

Baillie, R. T., & McMahon, P. C. (1989). The foreign exchange market: Theory and econometric evidence. Cambridge University Press.

Brondoni, S. M. (2019). Shareowners, Stakeholders & the Global Oversize Economy. The Coca-Cola Company Case. Symphonya. Emerging Issues in Management, (1), 16–27. https://doi.org/10.4468/2019.1.02brondoni

Gertner, D., & Rifkin, L. (2018). Coca‐Cola and the fight against the global obesity epidemic. Thunderbird International Business Review, 60(2), 161-173. https://doi.org/10.1002/tie.21888

Lacy-Nichols, J., Scrinis, G., & Carey, R. (2020). The evolution of Coca-Cola Australia’s soft drink reformulation strategy 2003–2017: A thematic analysis of corporate documents. Food Policy, 90, 101793.https://doi.org/10.1016/j.foodpol.2019.101793

Mou, J. (2020, July). Research on the Impact of COVID19 on Global Economy. In IOP Conference Series: Earth and Environmental Science (Vol. 546, No. 3, p. 032043). IOP Publishing. https://doi.org/10.1088/1755-1315/546/3/032043

Odukah, M. E. (2016). Factors influencing staff motivation among employees: A Case study of equator bottlers (Coca Cola) Kenya. Journal of Human Resource and Sustainability Studies, 4(02), 68.http://dx.doi.org/10.4236/jhrss.2016.42008