Blog post 2 / Milestone 3

A Study into the Coca-cola Corporation’s Economic Growth in Foreign and Domestic Markets

Intro

Coca-Cola is a soft drink and beverage producer located in the United States. However Coca-Cola maintains shares of business all across the globe and in many foreign markets. With this variety of markets one has to take into consideration all aspects of the financial and fiscal policies. insert an aggressive Market as the United States with no shortage of competitors in the beverage industry, one must be able to know the latest changes in fiscal policy as put into the system by the federal reserve. The Federal Reserve is the Central Bank of the United States that is in charge of printing all money that is currently in circulation, They also destroy money that is needed to be taken out of circulation, and install policies of fiscal and Financial ruling 2 better help the free-market do its job. By studying the most up-to-date fiscal policies and potential changes business owners and firms are able to plan accordingly for what would otherwise be very sudden upheavals in the status quo of the market.The Federal Reserve has an unprecedented amount of power over the economy in the United States enacting such laws as raising interest rates by rates as high as .25% (JeffCoxCNBCcom, 2022), When handling a topic like fiscal policy and how you respond to that got to remember that at the bottom line fiscal policy determines exactly how profitable your firm will be so knowledge and planning is vital to staying on top of the game.

Potential Risks

When entering a market as a significantly large firm you face a heavy risk of not being able to en-trance the consumer. Making sure that you're able to reach your consumers and get yourself into their home is a major part of the process when it comes to maintaining a successful firm by studying fiscal and economic policy and reviewing how they've changed over the years and to predict what might be coming next can literally save or sink your business. In the domestic Market of the United States Coca-Cola is a major player in the soft drink industry with 282.86 billion dollars in 2022 (2022). However Coca-Cola also has many interests in foreign markets all across the world with heavy focus on Europe and South America in the last couple of decades since population growth has been exponential. With all these new markets and tons of new lawmakers and party divisions all across the globe fiscal policy is not the same in any two places. The Federal Reserve holds a tremendous amount of power when it comes to what Coca-Cola is able to do in a market because with their ability to literally create cash at will they can flood the market with near worthless currency and destroy the market or they can put policies in place that will benefit your firm.

Open Market

Some Coca-Cola operates most of its business out of the United States. We force them to operate into an open market which means free competition amongst all of your peers. Coca-Cola is a major competitor in the market but it does have its competitors, the Pepsi-Cola Corporation is a longtime rival of Coca-Cola's dating back to the early nineteen hundreds with them both being Titans of the soda industry competition has often been Fierce over business interest. Coca-Cola excels in the open market though because it was able to segment the market into very digestible chunks of marketing potential. With Worldwide interest Coca-Cola has made a major push to diversify the front of the company so by having an open image the Federal Reserve is more willing to be lenient with brackets and pressures that other firms may face. With open-market considerations Coca-Cola has to fight for relevance against so many other competitors that it simply has begun to just purchase them into a conglomerate of corporations that help elevate its presence in the market so that it has more working capital going into the system. With an estimated 38.7 billion in Revenue going into the market having less restrictive brackets for economic issues faced by the corporation might be more in favor with the Federal Reserve. Since the Federal Reserve has the ability to shape the policies that will allow Coca-Cola to continue to operate in an amalgamation of corporate entities and by this they are able to sustain sufficient capital.

Economic Scares

With the freedom of an open-market you face the risk of losing it all in a matter of moments due to a misplaced decimal point. With the options of An open-market comes with volatility but that volatility can be exploited to the good of the firm that is placed within its Market. Inflation is also a major risk you need to take into account when setting up a home Market because when the economy starts to get a little bit dodgy people are way less likely to buy once compared to needs so your firm can potentially take a pretty big hit. If your firm is not able to quickly adapt to any major shifts in the Home Market caused by fiscal policy then you're going to be unable to remain a contender. Market segmentation is also very important because by knowing who you're trying to sell to you can create better personalized programs to work for them so by having a good idea of the consumer base alongside how the Home Market is currently functioning gives you a full picture of the purchasing power of a market.

The Importance of The Dollar

Coca-Cola is a mostly North American business doing a lot of business out of the United States but with key business interests in Africa, South America, and the Middle East. With such a varied portfolio the importance of knowing what the currency is of the area that you're operating it is vital. So with large corporations like Coca-Cola there Revenue may be far different in each market and the exchange rate may be far different too so where sales may excel in one area they may be significantly lower in another continent. With such a varied Market abroad and domestic Coca-Cola its priority is to make sure that they are reaching the highest return-on-investment wherever they have set up in the part of the world that they're at. By not taking care and analyzing most aspects of the market the year entering into you can do in your company by going in with half-cocked ideas and not enough backing evidence for investors.

Latin America and Cola

Latin America has had a long-standing relationship with the Coca plant and as well the Coca-Cola Corporation.Ever since 1886 when Coca-Cola's original inventor first introduced the soft drink down in Latin America it became a hit with 39 developing a market segmentation is alone in Latin (Miriamd.garzon, 2016) there is a high risk involved if you're not staying on your toes when it comes to the up-to-date policies and workings of the banking systems in these countries that you operate in. However despite line America being a major point of competition for the Coca-Cola Corporation, In a market with 39 separate segments and countries that you will have to operate in the exchange rates can get a little bit wonky and with the ongoing economic risks faced with in he's a little country sometimes there central banks have to make tough decisions and do counterintuitive policy-making. Latin America has a very bad issue with inflation and exchange rates so by entering this Market you need to accept the volatility of the market And going understanding that with this Market comes significant risk until the firm since the currency is never in a stable position in fiscal policy is constantly changing and updating to reflect this in a desperate attempt to restore order.

African Advancements

Another Major Market the Cookeville is trying to break into in the last couple of decades has been Africa. With 54 individual countries open for business Coca-Cola has no small choice in the matter of how to go about selling their products. Certain nations in Africa suffer from the issues faced in Latin America with high inflation rates and a relatively low standard of living, but their fiscal policies ARE designed to be able to help big developed and businesses and corporations come into the continent. A lot of fiscal policy in Africa is designed around trying to bring an outside business into the economy so that the country's GDP will be boosted and it will look good in the world forum. Just one example: Chad has the fiscal policy of allowing foreign investors that come in but Chad is able to oversee the development of everything that occurs on these job sites, and this has been great for their GDP. It has boosted it through the roof and allows a significant amount of capital to flow freely. By setting sanctions Chad is able to retain economic independence but is also able to promote business operations in their country.

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Works cited

1. Miriamd.garzon. (2016, November 10). Central Banks in Latin America at a crossroads: BBVA. NEWS BBVA. Retrieved April 24, 2022, from https://www.bbva.com/en/central-banks-latin-america-crossroads/

2. Coca-Cola segmentation, targeting and positioning. Edrawsoft. (n.d.). Retrieved April 24, 2022, from https://www.edrawmind.com/article/coca-cola-segmentation-targeting-and-positioning.html#:~:text=The%20primary%20target%20of%20Coca-Cola%20is%20younger%20customers,variants%20target%20those%20customers%20that%20are%20health%20conscious.

3. What were Ko's earnings last quarter? WallStreetZen. (2022, April 23). Retrieved April 24, 2022, from https://www.wallstreetzen.com/stocks/us/nyse/ko/earnings