FDI Strategy of Coca Cola in Myanmar

Later on, Frank Robinson suggested the actual Coca Cola trademark. In April 1891, Asa Chandler, a pharmacist and a businessman purchased Pemberton’s recipe and turned Coca Cola into the internationally recognized brand it is today. In 1892, the company grew by ten times as a result of merchandising. Currently, the company operates beyond Georgia and the United States and has nearly 400 brands in over 200 countries (Ford, W. et al., 2007: 2).Currently, this multinational company does not operate in Myanmar, but is planning to venture into this market soonest possible. This event is after the U.S government lifted a ban on investing in Myanmar, in May, 2012.Foreign Direct Investment involves investing money in a company incorporated in another company. There are several advantages that Myanmar will gain, when Coca Cola Company establishes its operations there. First of all, employees of Myanmar will get exposure to globally valued skills. Once established, Coca Cola Company will have to train its employees, hence an improvement in the country’s human resources. Second, Myanmar will have a chance to be integrated into the global economy. Coca Cola Company is a corporation that has its operations in many nations across different continents. Its investment in Myanmar will expose this country to the world economy due to possible access to a wide market all over the word. Additionally, Coca Cola Company will bring along with it advanced technology and processes. This will lead to increased competition in the domestic market, hence posing a great challenge to other companies to improve their products and processes.These factors lead to improved quality of processes and products in a certain industry. Moreover, Coca Cola Company can use its foreign expertise in upgrading the existing technical processes. This country will also strengthen technical assistance on crucial regulatory issues such astaxation, due to adaptation of home country measures to support Myanmar.