FRANCE'S ECONOMIC ENVIRONMENT.   Term Paper ID:24363 Click to get this paper

Essay Subject: Examines nation's potential for export of Minute Maid orange juice by Coca-Cola.... More...

5 Pages / 1125 Words 5 sources, 8 Citations, TURABIAN Format $20.00 Return to List of Papers

Paper Abstract: Examines nation's potential for export of Minute Maid orange juice by Coca-Cola. Paper Introduction: Introduction Coca-Cola is one of the largest beverage companies in the world, and is best known for its flagship beverages which carry the Coca-Cola (or Coke) brand. However, the company manufactures beverages which are not carbonated or cola-based, and these include Minute Maid products of frozen and refrigerated orange juice. The company has a strong market presence in the United States, and this research considers some of the factors which the company would need to take into account if it were to decide to export Minute Maid products to France. The economic and investment climate of the destination country is important to exporters because this climate determines how successful the product will be in the destination country. France has a culture which is similar to the United States, a workforce which increasing Text of the Paper: The entire text of the paper is shown below. However, the text is somewhat scrambled. We want to give you as much information as we possibly can about our papers and essays, but we cannot give them away for free. In the text below you will find that while disordered, many of the phrases are essentially intact. From this text you will be able to get a solid sense of the writing style, the concepts addressed, and the sources used in the research paper. Convenience stores carry a variedselection of both food and non-food items, but generate a much smallerpercentage of sales ($3.6 billion in 1994).[5] Foreign Investment The French government is actively striving to attract foreigninvestment as a source of new jobs. The three mainentry points for air freight are the Paris airports of Orly and Charles deGaul, and Lyon's Satolas airport. In 1994, fresh, frozen and/or dried fruits were theleading American agricultural export to the French market in terms ofvalue, accounting for 14 percent of total agricultural exports to France.[7] The French market for food products is mature, sophisticated andserved by suppliers from around the world. [4]"French National Railways," Railway Age, May 1996, 88. In atrend which is favorable toward the Minute Maid project, Frenchagricultural imports are moving toward consumer-ready foodstuffs and awayfrom bulk commodities. "Battle for Baguette Supremacy." Financial Times, March 4, 1996, 1 .__________. France isthe eighth-largest trading partner of the United States worldwide and thethird-largest in Europe (after the United Kingdom and Germany).[1] Population The population of France is estimated at 58 million as of 1996 with ahigh level (11 percent) of unemployment. [3] A weak dollar works to the benefit of American goods since it results inprices which are low relative to French goods; such a weakening wouldincrease the prospects of orange juice selling well. [2]Richard L. France has 12 major maritime ports, manyof which are equipped for container ships, and the state-owned French railsystem is one of the most comprehensive and technologically advanced in theworld.[4] The French highway system is also excellent and has become anincreasingly important part of Europe's overall transportation network;France currently invests more funds in its highway and road network thanany other European country. The government of Jacques Chirac hascommitted to making inroads in reducing the 3.3 million unemployed workersin France through increased spending on job creation measures, includingretraining and employer subsidies, to be funded in part by raising thevalue-added tax (VAT) to 2 .4 percent.[2] An increase in this tax does nothelp Coca-Cola market Minute Maid, but the reduction in unemployed workersincreases the number of consumers who are able to purchase the product. "Juppe Under Fire as Jobless Rate Climbs." Financial Times, September 28, 1996, 2."French National Railways." Railway Age, May 1996, 88."French Trade Surplus Rises." Wall Street Journal, September 3 , 1996, A7.Holman, Richard L. BibliographyBuchan, David. Holman, "Unemployment Grows in France," Wall StreetJournal, September 3 , 1996, A14. Summary Coca-Cola has effectively demonstrated through its current operationsthat it is fully capable of understanding the fundamentals of internationalmarketing as it successfully sells its products throughout the world.However, the company has emphasized its cola and carbonated beverages, andmay encounter a different level of resistance when it markets its MinuteMaid products. In France, supermarkets are essentiallysmall versions of hypermarkets; they carry between 35 and 45 fooditems, and between 5 and 15 nonfood items. "Unemployment Grows in France." Wall Street Journal, September 3 , 1996, A14. The Frenchtransportation infrastructure is among the most sophisticated in the world,benefiting from technological advances such as the Train à Grande Vitesse(TGV) and from significant investment by the government. [8]Ibid. Inaddition, there is a significant privatization program underway which iscreating a variety of new investment opportunities in business sectors thatwere previously state-controlled.[6] International Trade Statistics French imports of American food & agricultural products during 1994were valued at $881 million, a 9.2 percent decrease compared to 1993. Most processedproducts entering the European Union and France are subject to additionalimport charges based on the percentage of sugar, milk fat, milk protein andstarch in the product; this would not be a significant factor for orangejuice.[8] This situation is expected to change over the next severalyears as these fees are converted to fixed tariff equivalents and reducedunder the Uruguay Round Agreement of the General Agreement on Tariffs andTrade (GATT). France has thetransportation infrastructure to support the distribution of goods such asthis, and the distribution channels to effectively market the product. Consumer spending has not returnedto the levels it was at prior to the recession, but the French economy isconsidered to be in a recovery mode. Introduction Coca-Cola is one of the largest beverage companies in the world, andis best known for its flagship beverages which carry the Coca-Cola (orCoke) brand. Understanding thisenvironment is, therefore, critical to the Minute Maid project. Transportation Transportation is always an important consideration for vendors, andthe transportation of foodstuffs requires a more sophisticated system thanother types of products because of the issue of perishability. Hypermarkets are large retail outletswhich carry a wide variety of products at discounted prices; typicalhypermarkets carry more than 3 , food items and between 3 and 5 non-food items at competitive prices. Economic Statistics and Activity American exports to France grew by nine percent annually between 1987and 1993, while American imports increased by approximately six percentannually during the same time. These stores are located in suburbsand cover more than 22, square feet. Inaddition, while a large percentage of French workers are currentlyunemployed, the government is taking steps to improve this situation,making the climate even more attractive for a project such as this. In 1995, the government inaugurated thelongest spanned bridge in the world, Le Pont de Normandie, linking Le Havrewith Honfleur over the Seine. Coca-Cola should contact the Office of Agricultural Affairsfor current information regarding this issue since the levels of tariffsdirectly affects the price of goods in France. By examining these and factors suchas the transportation infrastructure of the country, it is possible forCoca-Cola to determine the success of its Minute Maid export strategy. In 1994, supermarketsgenerated $61 billion in sales. Channels of Distribution Small- and medium-sized family-owned firms, which traditionallyaccounted for a majority of French wholesale and retail trade, are rapidlylosing market share to hypermarkets. The economic and investment climate of the destination country isimportant to exporters because this climate determines how successful theproduct will be in the destination country. American products are perceivedas being of high quality, and Coca-Cola already has a strong presence inthe nation. The government recently announced itsintention to eliminate restrictions on investments by non-European Unioninvestors in order to improve the current investment environment. However, the company manufactures beverages which are notcarbonated or cola-based, and these include Minute Maid products of frozenand refrigerated orange juice. Trade Restrictions To export consumer-ready food products to France, an American companyshould consider market access restrictions and food laws. The company has a strong market presence inthe United States, and this research considers some of the factors whichthe company would need to take into account if it were to decide to exportMinute Maid products to France. These products appeal to a different market segment than do thecarbonated products, and Coca-Cola is likely to encounter some resistancenot only to the import of these products in general, but also to thepresence of an American product on French food shelves. [7]"French Trade Surplus," A7. France has a culture which issimilar to the United States, a workforce which increasingly works outsidethe home, and there are already supermarkets and so-called hypermarketswhich can serve as outlets for the product. [6]David Buchan, "Juppe Under Fire as Jobless Rate Climbs," FinancialTimes, September 28, 1996, 2. American merchandise exports increasedslightly in 1994 to $13.6 billion, imports of French merchandise increasedto $16.8 billion, resulting in a trade deficit of more than $3 billion. In fact, American items are considered to be of highquality, which puts the product in a good position. [3]"French Trade Surplus," A7. Economic and Investment Climate The economic and investment climate of the destination country has astrong influence over the success of an export venture. In 1994, hypermarkets generatedmore than 66 billion in sales. France has recentlyexperienced some civil unrest as citizens protest the rise of supermarkets,for example, which might contribute to difficulties for a company exportingAmerican food to French supermarkets. However, France has a strong trading relationship with the UnitedStates, and this relationship includes the highly successful area of foodsand foodstuffs. [5]David Buchan, "Battle for Baguette Supremacy," Financial Times,March 4, 1996, 1 . ----------------------- [1]"French Trade Surplus Rises," Wall Street Journal, September 3 ,1996, A7. If this paper is not what you are looking for, you can search again: Search for: or Click here to request an essay written just for you.

Many of our Papers can be Downloaded From This Site!

PLEASE READ THIS, IT IS IMPORTANT!

Office hours are Monday through Friday, from 9 am to 5 pm (PST). You may place orders for custom research over the phone during office hours. E-mail requests can be made to our graduate and undergraduate department any time, and will be reviewed during office hours. You may also contact customer service any time through e-mail, and we will review your message during business hours. A great many papers can be downloaded right from this site, but not all of them. If you would like to know if a particular paper is downloadable, just look in the description for: "Available for Internet Download: Y" or "Available for Internet Download: N" If you wish to purchase a paper which is NOT available for immediate download, you will need to make other shipping arrangements. Also, please be aware that these orders are processed Monday through Friday from 9 am to 5 pm (PST). If you place your order after 4:45pm on Friday, it will not be processed until the following Monday morning. We charge $8 per page for all of our pre-written reports, plus shipping (and tax for California residents). However, the highest cost of any ONE report is $136, or 17 pages. Please, take a moment. Make sure you have chosen the report you want or need BEFORE you complete your order. If you are not sure, allow us to help you. We do not offer refunds or exchanges, so it is important for you to let us answer your questions during office hours. Reports which are e-mailed or downloaded are in Microsoft Word format. We are making more reports available for e-mail delivery faster than we can update our listings. Please call to check on the status of particular reports. There are many other shipping options which are listed on the Checkout page.