Palliser analysis

International University Vietnam Bachelor of Commerce Program Assignment covering fire Page Question Companies internationalist for a variety of reasons and in a variety of ways. Discuss a major protrude that a guild will face while internationalisation and how it may manage this challenge. give examples from real companies to illustrate your points. Essay In the world, many companies want to internationalist to expand or find a potential market unless they must face many ripostes, such as red tape, wording and cross culture.This essay will analyze a major issue of lacking control in feel of products ND power of employees of Coca-cola when they internationalization and how the crockeds solved this paradox. According to Bartlett and Shoal model, Coca-Cola chooses global strategies because they need to push down the cost of production and it also becomes a reason why they internationalist. Additionally, Coca-cola entre into China because of three advantages of Dunning mo tive model. Firstly, Coca-Cola has their own pattern and strong spot image, so they keep compete with local companies easily (Lily et al 2013).In addition, Lily et al (2013) states that they also have location advantages of low labor cost, the significant home(prenominal) market and high economic growth of China. Finally, this internationalization advantages is that they have the parallelism with big food federation in China (Lily et al 2013). The problem of lacking control affect mostly to the Coca-cola when they can amend the quality and also manage the employees. Therefore, the plan to expand the market can be influenced and it also can decrease the reputation of the company.The main issue is that it can reduce the sale volumes, so the profit can be fall significantly because China s the potential market with large population. Coca-cola set ab by a decisions to become a FED company to solve the issue and they apply Pascal model and entry mode to entry in to China to under standably show each step they done cautiously which depend on the China situations. For the first step, they export their products to China and then, they sign a franchise contract with a Chinese bottling take time offner in 1979 when Chinese government apply tight regulations (Lily et al & Addax Consulting 2013).Secondly, Lily et al (2013) points out that in 1985, they invest money in a Chinese tauten to make this come a Joint venture firm and in 1993 they built their own subsidiary to become a FED firm when Chinese government had changed their policies to attract more FED. According to the Coca-Cola Company (n. D), the company causeed bottling operations in France, Guatemala, Honduras, Mexico, Belgium, Italy, Peru, Spain, Australia, Philippines and South Africa from 1920 to 1930. COMIC (n. D) claims that two bottling plants were establish in China and the bottles were imported from the plants in Philippines.Coca-Cola depends on these two models to improve their power n term of control quality of product and capacity of employees. From an exporter to become a Joint venture, they can control a part and then, they can control all when they building their own factories. They show clearly their wants for develop in the Chinas market.