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Transcription of this question: 4.Coca-Cola in TajikistanCoca-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 wherethe mountainous roads are in very poor condition. As a sole trader and franchisee she employsfive 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 appropriatesources Of finance as well as a business plan. As part Of the franchise contract, Elena and the Otherdistribution centre owners do not pay a fee to Coca-Cola. However, in return Coca-Cola must be theonly drink they buy and sell. Elena knows it is very restrictive.Coca-Cola believes that distribution centres are successful because they are owned and operatedby local entrepreneurs who understand the local culture. For Coca-Cola, the distribution centremodel has led to increased consumption Of their products as well as improving local economiesby 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.Before entering the Tajikistan market, Coca-Cola had considered using a short distributionchannel, from a central storage facility (depot) in the capital city, Dushanbe, direct to the retailers.However, they decided to implement a system Of distribution centres for their distribution.(a)(b)(c)(d)Identify two features of a sole trader.Comment on two appropriate sources Of finance which Elena Rudaki mighthave used to set up her distribution centre.Examine two problems that Other entrepreneurs in Elena Rudaki’s town mayface if they start up a new business.Discuss the effectiveness of the different types of distribution channels forCoca-Cola in Tajikistan.[2 marks][6 marks][5 marks][7 marks]

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