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international business practice

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Denationalization means the action of shifting a government run firm into a private sector firm.
In order to achieve this transition, the government must either sell or redistribute the previously
government run firm in a manner that is equitable to citizens. In other words it is privatization of
firms, means shifting from public sector organization to private hands.
After a thorough research the real product which is selected is Coca cola. The Coca-Cola
Company is an American multinational liquid refreshment corporation and manufacturer, retailer
and marketer of nonalcoholic drink concentrates and syrups, which is having headquarter
in Atlanta, Georgia. The corporation is best recognized for its leading product Coca-Cola, which
was developed in 1886 by pharmacist John Stith Pemberton at Columbus, Georgia. The Coca-
Cola plan and marque was bought in 1889 by Asa Griggs Candler (December 30, 1851 - March
12, 1929), who amalgamated The Coca-Cola Business in 1892. The company functions
a franchised circulation system dating from 1889 where The Coca-Cola Company only creates
syrup concentrate which is then vended to various bottlers all over the world who hold a high-
class territory. The Coca-Cola Company has possession of its anchor bottler in North
America, which was Coca-Cola Refreshments. Coca cola is a product of denationalization
because of certain aspects discussed.
Marketing cost is the cost which is incurred in advertising and promoting the product in the
market. Marketing costs are lower of nationalized products because government oriented firms
does not focus much on advertising and promoting the product. The main function of marketing
is to create awareness about the product & its services to the customers in order to boost sales,
and it is generally followed when there are many firms in the industry producing similar products
or substitutes. For example McDonalds, KFC, Subway, Dominos, and Pizza hut, all these fast
food restaurants chains are producing similar kinds of products. In this case need for marketing

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do arises, in order to keep an edge over competition. With this, new market opportunities are
created for the product and have got recognition domestically as well as internationally because
of which people who were not even aware of the product now started using the product.
The nationalization of coca cola has helped in creating income all year round, as increased
marketing lead to increased awareness about the product and its uses, increased awareness will
lead to increased demand, increased demand means increased sales, and increased sales will
finally lead to increased income which will generate higher profits to the firm. This also benefits
local market, as government is no more involved in any kind of matters or dealings of the
company only private players are whole and sole owners of the company. All the profits and
earnings are owned by private players only. With this, the product also came into an existence
and people came to know about the actual worth and use of the product. Because of the increased
demand and increased sales, the company was able to reach at break-even point means no profit
no loss because of which the cost of production has decreased and hence the cost of product has
also decreased, which means cheaper product for customers.
The local technology has better production input as well as output. By using the foreign
technology, huge cost is incurred which includes cost to purchase the machinery, cost to provide
training and skills to workers to operate the machines, cost of repair due to damage or occurrence
of fault in machinery, cost of delay in production, power supplies required to run heavy
machines. Following the local technology neither requires any cost of purchase of machine nor
any cost of providing training and skills to employees. So, following local technology is
considered as cheaper than using foreign technology.

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The product denationalization has changed jobs and wages domestically and internationally.
With the help of various marketing strategies adopted like advertising, product given as free
sample for promotion, direct selling and so on has led to increase in demand for the product as
people came to know about the products and services which were offered, with the increase in
demand there is also need to produce product in huge quantity which in turn has created more
jobs and employment, moreover wages offered are also increased compared to prior
denationalization in order to boost the morale of employees.
The denationalization of coca cola has affected the environment domestically and internationally
in a positive manner. According to the concept of corporate social responsibility, efforts are laid
onto the betterment of stakeholders of company which includes employees, suppliers, customers,
owners, board of directors, debtors, creditors, etc. In order to protect interest of all these
stakeholder, there is a need to create healthy environment within the organization as well as
outside the organization. Within the organization healthy environment can be created by
providing employees with favorable facilities to work, clean and dust free workstations, flexi
timings, organizing recreational activities, rest rooms, lunch rooms, creche facility, etc. Outside
the organization healthy environment can be created by opening charitable dispensaries and
hospitals, conducting women oriented programs for poor women, opening educational
institutions for poor students, maintaining healthy relations with competitors, suppliers,
customers and government.
Denationalization of supply chain is better for the global economy because the government
always tries to create monopoly in the market which means selling low cost goods at very high
prices, also no focus is on promoting the product. Economically speaking, it is good when we
have more competition in the industry. When there is more opposition we get superior quality

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