Coca-Cola in Tajikistan Coca-Cola uses two types of distribution channels globally: a short channel of delivering small orders to thousands of retail outlets directly a long channel through intermediaries such as distribution centres. In 2009, Elena Rudaki started up her Coca-Cola distribution centre in a town in Tajikistan where the mountainous roads are in very poor condition. As a sole trader and franchisee, she employs five people, who use carts pulled by horses to distribute bottles of Coca-Cola to nearby villages. Before she opened her distribution centre, Coca-Cola checked that she had access to appropriate sources of finance as well as a business plan. As part of the franchise contract, Elena and the other distribution centre owners do not pay a fee to Coca-Cola. However, in return Coca-Cola must be the only drink they buy and sell. Elena knows it is very restrictive. Coca-Cola believes that distribution centres are successful because they are owned and operated by local entrepreneurs who understand the local culture. For Coca-Cola, the distribution centre model has led to increased consumption of their products as well as improving local economies by encouraging business start-ups and creating jobs. Many distribution centre owners are women, like Elena, who used her profits to buy a new house and pay for her daughter’s education. Identify two features of a sole trader. [2] 2. Identify and explain the elements of a business plan for Elena’s business? [6] 3. Analyze the decision of Elena to continue her business as a sole trader rather than a partnership. [7]
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Answer:
2. Coca-Cola checked that she had access to appropriate sources of finance as well as a business plan.
3. Coca-Cola believes that distribution centres are successful because they are owned and operated by local entrepreneurs who understand the local culture. For Coca-Cola, the distribution centre model has led to increased consumption of their products as well as improving local economies by encouraging business start-ups and creating jobs.
1. She employs five people, who use carts pulled by horses to distribute bottles of Coca-Cola to nearby villages.
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Answer:
Coca-Cola distribution center model has led to increase consumption of their products and services as well improving local economics by encouraging business starts ups and creating jobs...
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