“Enjoy Coca Cola!”

 In 2012, Coca Cola’ advertising expenses accounted for more than $3 billion. In order to increase the company’s sales and brand recognition, Coca-Cola expenses production cost on print, radio, Internets, and television advertising.

HOLD ON…

Who does not know about Coca-Cola? Since it is arguably one of the most recognizable brands of the 21^st Century, why does Coca-Cola still advertise?

Coca-Cola never failed to stay on top of mind awareness in the soft drinks industry because the company understands as part of the marketing tool, advertising is very important in an organizational structure. The firm also comprehends the fact that its typical commodities can easily be replaced by another brand’s similar product, such as Pepsi or Sprite.

With this idea imbedded in mind, there are few fundamental reasons that even the “Big Giant” needs to advertise:

1. To maintain “top of mind awareness.”
2. To secure the next generation of consumers.
3. Adapt to changing consumer behaviours.
4. To consolidate or possibly expand its market shares.
5. Continue to build consumer loyalty.

While the brand continues to vastly advertised in the mainstream media, a consumer will always remember the presence of coke whenever he or she attempts to reach for another brand’s soft drinks.

Reference:http://www.theawsc.com/2013/08/28/why-big-brands-like-coca-cola-still-need-to-advertise/

While the ideology of capitalism sweeps across the globe and dominates competitive markets by the end of the 19^th century, addressing to business ethics is no longer negligible.  Since humans are capable of abstract thoughts, our behaviours often blur the very fine line between what is right and wrong.  In other words, should a company strive in doing what is best for the profitability of the business even when the actions are consider unethical?

Nike, the world’s leading sportswear franchise is an example of a multination corporation that faced ethical dilemma.  Some of the controversial issues within the organization include the use of child labor in Nike’s Asian factories, minimum wage violations, and poor working conditions.  Although Nike might argue that some of these actions are necessary for its survival in the competitive business world, its brand image and sales have been affected negatively due to the unethical business behaviours that have been performed.  Upon realizing the potential harms to its shareholders, Nike should practice corporate social responsibility such as treating their employees fairly and ethically.  By doing this, Nike is essentially fulfilling its own principle, “Just Do It”.

Ultimately, if a business is able to establish a meaningful relationship with its shareholders, allowing them to recognize that they are being taken care of and that the company’s only motive is not profit, the corporation is likely more profitable in the long-term.

Sources:

http://www.businessinsider.com/how-nike-solved-its-sweatshop-problem-2013-5

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