The selected three MNC’s are Coca- Cola, McDonald’s and Nokia
Coca –Cola
Set up way back in 1886, Coca-Cola is now a household name in most countries of the world. Through sheer innovative zeal, brilliant promotional strategies and aggressive marketing, Coca-Cola has made its presence felt in more than 200 countries of the world. With around 400 brands to choose from, Coca-Cola has endeared itself to the masses of the universe, in whichever continent, or country, it may be. With the active support of local bottlers and consumers, it “exists to benefit and refresh everyone it touches.” (Coca Cola Now). Its core business of origin is the United States of America and it operates in well over 200 countries of the world. Besides Japan, Coca-Cola is consumed in many countries like Brazil, China, Eastern Europe, India, Pakistan, Russia, Southern Eurasia and Turkey.” (Isdell).
The main reasons or advantages for entering the markets of other countries is to create a world brand image for Coca-Cola and when anybody in the world wished to consume a soft drink, it should be Coca-Cola. It is also with a view to build up “the world’s largest and most powerful beverage distribution network.” (Isdell).
The yearly sales and assets figures are as follows:
(Isdell and Fayard).
We shall first analyze the Sales figures of Coca Cola as disclosed by their fiscal statements. It is seen that the first years growth was nearly 12 % on sales, in the second year this has been 8% on sales, in the third year, this is just 4% and finally in 2005 it has registered 6% on sales. This it could be said that the sales performance of Coca Cola has not been consistent, since it is an average of just 7.5% over the years under consideration. This could primarily be due to competitor activities, and the fact that in certain countries, Coca Cola has been considered as a health hazard and thus actively discouraged. Both Pepsi and other colas are offering strong competition against Coca Cola and also, its other brands are not as popular as the flagship brand. Coming to assets, it is seen that its assets have registered 9% in the first year, 12% in the second year, 15% in the third year and -6 % in the fourth year
This although its asset growth has been encouraging, it has faced reverses in last year under review. Yet Coca Cola has maintained average asset growth rate of around 7% which is not distressing, considering that worldwide market, especially in US had shrunk due to recession and other economic factors.
McDonald’s Chain
Set up in 1955, McDonald’s food chain now has more than 30,000 local restaurants, catering to the needs of around 52 Million people in 100 countries of the world. (About McDonald’s).
The main advantage of entering into franchising agreements with people in other countries of the world is to promote the McDonald’s food culture around the globe.
Its core business country of origin is the United States of America. Besides the US, it also operates in Europe, Asia-Pacific, Middle-East and Africa (APMEA); also Canada and Latin American countries. (Ernst and Young).
The yearly sales and assets figures are as follows:
(Ernst and Young).
We shall next analyze the Sales figures of McDonald’s Food Chain as disclosed by their fiscal statements. It is seen that the first years growth was nearly 3 % on sales, in the second year this has been 11% on sales, in the third year, this is 11% and finally in 2005 it has registered 7% on sales. This it could be said that the sales performance of McDonald’s has not been inconsistent, since it is an average of just 8% over the years under consideration. This has been achieved despite tough global competition and active legal propaganda that McDonald products are a major cause of obesity among young people. Coming to assets, it is seen that its assets have registered 7% in the first year, 7% in the second year, 8% in the third year and 8 % in the fourth year. Thus, as far as McDonald’s asset and sales growth are concerned, as evident from its audited balance sheet it is quite consistent at around 8% over the period under investigation.
Nokia
This is a Finnish company that is reputed to be the world leader in mobile technology and is the harnessing force in creating harmonious integration between internet and communication business solutions.
The main reason why it wishes to enter into global markets is because communication has no barriers or boundaries and cannot be restricted to a region or sphere of human activity. It permeates and transcends all constraints.
“We create new services and products that stem from the local needs of consumers and local expertise, yet also benefiting from global economies of scale.” (What We Do. Nokia Connecting People).
Its core business country of origin is Finland and it has worldwide business interests
The yearly sales and assets figures are as follows:
(Nokia Group 2003-2007, IFRS, p.56).
We shall first analyze the Sales figures of Nokia as disclosed by their audited fiscal statements. It is seen that the growth rate have been –o.54%, 16%, 20% and 24% in the four years under review. Thus its average sales growth has been around 15% which is on a high growth track?
Coming to assets, it is seen that its assets have registered -5% in the first year, -2% in the second year, 1% in the third year and 66% in the fourth year. Thus, as far as Nokia’s asset growth is concerned, it is around 30% (not accounting for negative growth between years 2003-2005)
Works Cited
About McDonald’s. McDonald’s Corporation. 2009. Web.
Coca Cola Now. The Coca Cola Heritage Company: Heritage Timeline. 2008. Web.
Ernst., and Young, L L P. McDonald’s Corporation: 2007 Annual Report. Web.
Isdell, E Neville. Leadership Message: Building Our Capabilities. The Coca Cola Company. 2008. Web.
Isdell, E Neville. Leadership Message: Rekindling Growth in sparkling Beverages. The Coca Cola Company. 2008. Web.
Isdell, E Neville., and Fayard, Gary P. United States Securities and Exchange Commission. The Coca Cola Company. 2006. Web.
Nokia Group 2003-2007, IFRS. 2007. Web.
What We Do. Nokia Connecting People. 2009. Web.