NBC Day 1 Case 1 Oct 2024 PDF

Case Study 1: Globalization and Multinational Bottling Companies Case Study: In the late 1990s, WorldBottling Co., a multinational beverage corporation, embarked on a rapid expansion strategy to tap into emerging markets. The company’s goal was to extend its global footprint by opening bottling pl...

Case Study 1: Globalization and Multinational Bottling Companies Case Study: In the late 1990s, WorldBottling Co., a multinational beverage corporation, embarked on a rapid expansion strategy to tap into emerging markets. The company’s goal was to extend its global footprint by opening bottling plants in regions where demand for soft drinks was growing, particularly in Africa and Southeast Asia. By establishing new plants through greenfield investments, WorldBottling Co. was able to control its production processes, optimize costs, and access new consumer bases. WorldBottling Co. quickly became one of the largest employers in these regions, providing jobs to thousands of workers. However, as the company expanded, local economies began to experience both positive and negative effects. On the one hand, the presence of WorldBottling Co. contributed to economic development through infrastructure improvements and the transfer of advanced bottling technologies. On the other hand, local companies in the beverage industry struggled to compete with the global giant, leading to the closure of many smaller bottling operations. The local workforce, primarily made up of low-skilled labor, initially benefited from new job opportunities. However, these jobs were characterized by low wages and minimal worker protections. WorldBottling Co. faced criticism from local labor unions, who accused the company of exploiting workers and disregarding safety standards. As WorldBottling Co. grew, it also began automating parts of its production processes to improve efficiency, which led to layoffs and increased tensions between the company and the local workforce. By 2023, WorldBottling Co. had operations in over 50 countries, but it also faced mounting pressure from global labor unions like the International Union of Food, Agricultural, Hotel, Restaurant, Catering, Tobacco, and Allied Workers' Associations (IUF). These unions demanded that WorldBottling Co. improve its labor practices, increase wages, and adhere to global labor standards in all of its bottling plants. Questions: 1. What were the key factors that drove WorldBottling Co.’s globalization strategy in the late 1990s? 2. How did WorldBottling Co.'s greenfield investments affect local economies, both positively and negatively? 3. What challenges did local bottling companies face due to WorldBottling Co.’s expansion, and how did this impact the local beverage market? 4. How did automation in the bottling industry contribute to the labor tensions between WorldBottling Co. and its workers? 5. What role did global labor unions like the IUF play in addressing labor issues within WorldBottling Co., and what challenges remain?