Custom «International Business Strategies» Essay Paper Sample

International Business Strategies

The Coca Cola brand has been the leading brand in the world for the last 10 years in a row. This is no mean feat for any company worldwide to achieve. The secret behind the triumph of the coca cola company is not as a result of luck or even massive spending on advertising; it is as a consequence of vigilant and systematic attack that every company the world over should emulate (Lindgreen, Hingley & Vanhamme, 2009, p. 54).

Interbrand ranked Coca Cola no.1 again in its 100 best brand list in 2011. The success of the Coca Cola can be mainly attributed to its branding approaches. Since the company’s inception in 1886, the brand has grown immensely to become a worldwide brand recognizable in any corner on of the globe. Their brand strategies continually raise consumer interest creating a niche for the brand and keeping it highly competitive. The Coca Cola brand has paid a lot of attention on brand reinvention so as to keep its customers satisfied. It is undoubtedly the leading brand in the industry and all over the world.

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Branding strategies

Consumer sophistication

Its branding approaches center on the changing market certainties and customer sophistication that requires constant brand redesigning. In the 80s when the brand was still extremely young, the company’s key strategy was to make the brand acceptable, affordable and available. At this time, their main aim was to establish the brand that can be easily identifiable and evaluated by consumers. The company has now adjusted its branding approaches to meet growing customer needs. The Coca Cola brand now seeks to offer value for the consumers’ money and product differentiation to meet the diverse consumer needs.

Evaluating consumer response

The Coca Cola Company constantly carries out surveys to evaluate the reception of its new products in the market. They also carry out surveys to see if its old products still satisfy consumer needs.

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Attaining Strategic harmony

Almost all worldwide renowned brands have extensive sales and revenues. However, Coca Cola has created a niche by keeping the best human capital and investing substantially in employee and customer relations. This has made it possible for the company not only to achieve tactical consensus and position at all organizational levels, but also to elicit upbeat feelings in consumers. This also allows the company to maintain a sustainable sales level.

Growing Brand Loyalty

Any leading brand in the world must also have brand loyalty. When the consumers demands are satisfied, and the company delivers all it s promises, then consumers become attached to the brand. Brand loyalty is also boosted by the vigilant campaigns and advertisement strategies carried out by the company. This allows the company to increase its number of customer at the same time meeting its consumer’s needs.

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Coca Cola has built a recognizable brand name and logo all over the globe. On the other hand, this is not the only cause it its success. It has also come up with a winning product mix strategy that has enabled the brand to grow immensely. I has hence distinguished itself from its competitors in the market and gained vast success all over the world.

Brand development

Brand development requires the firm to go through a product development cycle which is evaluated by the level of sales at each stage.

Brand Development Curve

Product development is the first stage of brand development. At this level, the firm prepares to introduce its new product to the market hence there are no sales.

Introduction Stage

At this level, sales will be remarkably low as consumers are not yet fully aware of the product. Advertising costs are unusually high, and the firm also has to incur additional distribution costs. A good number of firms will incur losses at this stage due to the high costs and the low sales levels.

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The goal of the firm at this level is to develop primary demand for its commodity. At this stage, the product may not be differentiated from other products in the market. The prices used by firms at this stage exceedingly strong. Some firms may use low prices so as to attract consumers. On the other hand, other firms may be forced to use high prices due to e high costs of production and distribution. Distribution at this stage may be scattered as the firm may not have fully developed a distribution plan. His may also be due to the low demand at this initial stage.

Growth Stage

This stage s characterized by an enormous growth of sales and revenues. At this level, sale increase at an increasing rate (Allen, 1994, p. 10). The consumers are now aware of the commodity and what it has to offer. The firm has also increased its level of distribution, and the brand is now recognizable to many more people in the market. Competition is high at this level of brand development. The firm may also have added additional features to its brand. If the demand is high enough, then the brand may retain its high price from the introductory stage. The main aim of the firm at this level is to obtain increased sales and consumer preference.

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Maturity Stage

This is the most profitable stage for any brand. Sales continue to increase though at a decreasing rate (Allen, 1994, p. 12). The prices may decrease due to decreased competition in the market. There is immense brand awareness, and the firm focuses its attention of encouraging consumers to switch from its competitors. The company may give incentives to its distributors so as to steer clear of losing shelf life for its commodities.

Decline Stage

This may happen due to changing consumer tastes, market saturation or the product may become obsolete. However, if the company has achieved brand loyalty, the sales may continue to increase. This is he case for Coca Cola. At his stage, the firm may continue to operate and look for different product and marketing mixes to beat its competitors. The firm may also count its losses and close up shop.

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Coca cola is currently at the maturity stage. Therefore, at the moment there is a leading brand loyalty for the brand (Lindgreen, Hingley & Vanhamme, 2009, p. 90). Also, The Coca Cola Company is constantly giving incentives to its distributors. Coca Colas profits have also been on the rise though at a decreasing rate.

Assignment A2 a: International Treasury Management

In due course, all banking and treasury actions are local. What classifies international treasury management is the inextricable connection connecting foreign exchange and domestic cash management. Superiority in international treasury management is the most favorable link of domestic activities for international corporate gain

In international treasury management, all payments are settled in the country of currency notwithstanding the mode of payment, trade credit, location of payee or payer accounts or even the instrument of payment (Austen & Reyniers, 1986, p. 122).

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In most cases language and culture form, are formidable barriers in international treasury management since the managers from different countries have to be in constant communication.

In international treasury management, there are a number of accounts which are slightly different from the ordinary local accounts.

Checking account

This account is opened in the country of the currency. The denomination used in this account is the local currency. Entries to this account are made through the host country’s money transfer systems.

Savings accounts

These interest bearing accounts are operated using the local currency. Like the checking account, entries to this account are made through the host country’s money transfer systems. In some cases, there may be transaction or balance restrictions made by the customs department regulations.

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Balance Accounts (ZBA)

Any entries to this account are also made through the host country’s money transfer systems. Transaction entries to preserve the zero balance originate from a different account in the bank. They may be automatic or manually effected depending on the banks regulations.

Multicurrency accounts

Their accounts are denominated with legal tender other than the local currency. However, the accounts are retained by the host country.

Systems followed in developed markets


France is the residence of almost 40 of the world’s 500 largest companies. It is e fifth largest economy in the world and is the location of the biggest airline holding company, insurance company, cosmetic company and many more. All these characteristics make it a favorable destination for many investors.











Investors in the country have options such as American Depository Receipts (ADR) AND Exchange-Traded Funds (ETFs).

Risks of investing in France

France is the second principal economy in Europe and the fifth in the world. Investing money in France is, therefore, a somewhat safe bet. However, due to the European Union sovereign debt predicament and financial ties to other members of the EU, investing in France may be riskier than expected.

Because  of the size of the economy, France is responsible for a large percentage of the bailouts necessitated by the sovereign debt predicament. This is as a result of the European Union structure.

France has a number of socialistic tendencies, which may prohibit, upstanding business competition.

Benefits of investing in France include:

France has one of the most developed securities market in the world (Peng, 2011, p. 134). This makes it less geopolitically risky to invest in the country as compared to other emerging frontier markets.

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The large companies in the country have more expected long-term revenues ability.

How to Invest in France

Exchange-traded funds (ETFs) present investors with an easy way to put together a spread French exposure into their portfolios. Because of its presence in many industries, ETFs are considered as less risky by many investors. They can also be traded at any time of the day like stock. However, investors who seek more direct exposure may use American Depository Receipts (ADRs).


It is the biggest economy in Europe and the fourth principal economy in the world. Because of the high level of industrialization, Germany is the 2nd largest exporter in the world. 37 of the world’s top 500 listed companies are found here. Its leading companies can be found in the DAX 30 Index, analogous to the Industrial Average in the United States.

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Similar to France, the European sovereign debt predicament, makes it riskier to invest in Germany. It also puts a lot of pressure on Germany due to the percentage of bailout expected.

Germany's labor force is both highly driven and educated. This is shown by strike days per 1000 inhabitants and higher education percentages (Peng, 2011, p. 134). The country's unified tax code also makes it a favorable investor destination.

Workforce & Taxes - Germany's labor force is both highly driven and educated. This is shown by strike days per 1000 inhabitants and higher education percentages. The country's unified tax codes also make it a favorable investor destination.Treasury management system followed by banks in the UAE

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