Strategic Management Issues of Coca-

Cola Company
INTRODUCTION
A global perspective is a matter of survival for businesses. Strategic
management is the process of specifying an organization's objectives,
eveloping policies an plans to achieve these objectives, an
allocating resources so as to implement the plans. !he Coca Cola
Company "Coca-Cola# is a leaing manufacturer, istributor an
mar$eter of %on-alcoholic beverage concentrates an syrups, in the
&orl. !he company o&ns or licenses more than '(( brans, incluing
iet an light beverages, &aters, juice an juice rin$s, teas, co)ees,
an energy an sports rin$s. !he company operates in more than *((
countries. Coca-Cola +nterprises is the &orl's largest mar$eter,
proucer an istributor of Coca-Cola proucts. It operates in ', -.S.
states an Canaa, an is the e.clusive Coca-Cola bottler for all of
/elgium, continental 0rance, 1reat /ritain, 2u.embourg, Monaco an
the %etherlans. Coca-Cola is the non alcoholic bottle beverages.
ORIGIN OF THE REPORT
3e are luc$y to say that our honorable course teacher M. Muzahiul
Islam 2ecturer, 4epartment of Management Stuies, 0aculty of
/usiness Aministration an Management, assigne us a report on
5Strategic Management Issues of Multinational Companies
(MNCs): A Case Study on Coca-Cola Company. !his report is
prepare on the basis of seconary ata.
OBJECTIVES OF THE STUDY
+very successful stuy shoul have speci6e an &ell-e6ne
objectives. A careful statement of the objective helps in preparing a
&ell-ecorate report facilitating others to ta$e ecision on it. !he
speci6c objectives of the stuy are to have $no&lege about-
!o $no& about the strategic management issues of multinational
companies
!o $no& about the strategies of the multinational companies
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Strategic Management Issues of Coca-
Cola Company
!o characterize the challenges of international strategic
management
!o $no& about the international strategic management process
!o ientify an characterize the levels the international
management strategies
!o $no& about the Coca-Cola Company8s strategies
management process.
SCOPE OF THE STUDY
!his stuy has focuse upon the Management Issues those are
follo&e by the Coca-Cola Company for capturing the global
mar$et. !hrough our report &e try to 6n out the global
challenges of International Strategic Management to assess the
basic strategies, escribe the international strategic
management process of Coca-Cola Company. 3e hope this stuy
&ill help to &hom, &ho &ant to $no& more clearly about strategic
management, its issues as &ell as the $ey factors &hich a)ect
the process of Internationalization for a company.
Data and Methodology
3e e.amine seconary ata of &hich relate to the Strategic
Management Issues at the global base Mar$et. 4ata are collecte on
various issues from annual report of Coca-Cola Company "*((9-*((:#.
In our report &e analysis the monthly, ;uarterly, half-yearly ne&s
<evie& of this company. /ase upon this ata &e li$e to analysis the
+conomic <evie&, Statistical Strategic conition of the Coca-Cola
Company. /oth the o=cial an regional &ebsite helps us to 6n out
more relate to the issues &ith the global mar$et. 0orm those huge
ata &e ta$e the necessary an use them for the analysis. >ur
analysis ata are clearly represente in our main part of the report
through relevant chart, graph &ith proper escription.
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Strategic Management Issues of Coca-
Cola Company
LIMITTIONS OF THE REPORT
As a stuent of faculty of /usiness Aministration an Management,
?
th
semester, this is our 6rst initiative for ma$ing a report on 5Strategic
Management Issues of Multinational Companies "M%Cs#@ A Case Stuy
on Coca-ColaA. 3e &ere really unable to collect enough information
from ue to their o=cial restrictions. Many things &ere so con6ential
that &e &ere not entitle to access there. /esie this &e have face
the follo&ing hinrances in preparing this report@
2ac$ of $no&lege an e.perience
Short of time
2ac$ of computer facilities
2ac$ of su=cient privileges
2ac$ of communication facilities
De!n"t"on o# St$ateg"% Manage&ent
Strategic management is the process of specifying an organization's
objectives, eveloping policies an plans to achieve these objectives,
an allocating resources so as to implement the plans. It is the highest
level of managerial activity, usually performe by the company's Chief
+.ecutive >=cer "C+># an e.ecutive team. It provies overall
irection to the &hole enterprise.
International strategic management is a comprehensive an ongoing
management planning process aime at formulating an
implementing strategies that enable a 6rm to complete e)ectively
internationally. !he process of eveloping a particular international
strategy is often referre to as strategic planning. Strategic
Management is the stuy of function an responsibilities of senior
management.
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Strategic Management Issues of Coca-
Cola Company
F"'e E((ent"al Pa$t( o# St$ateg"% Manage&ent
Goal)(ett"ng
1oal-setting enables a 6rm to articulate its vision@ ientify &hat nees
to be accomplishe, e6ne short-an long-term objectives, an relate
them to &hat the organization nees to o.
naly("(
Analysis guies to collect an consier information so that a 6rm
unerstans the situation. Assess e.ternal environments an internal
situations to ientify the strengths an &ea$ness of the organization
an the opportunities an threats face to reach the goals.
St$ategy Fo$&*lat"on
!o etermine a strategy, the 6rm reCects prioritize, evelop options,
an ma$e ecisions. <evie& the results of the analysis, ientify the
issues that a 6rm implementing partners nee to aress, an
prioritize them in terms of their urgency an magnitue. -se these
results to esign alternative strategies an plans that aress the $ey
strategic issues.
St$ategy I&+le&entat"on
!o implement the strategy, assemble the necessary resources an
apply them. Dut the chosen plans into practice, marshal the resources
an commitments necessary for moving ahea, tap e.isting capacity
anEor buil ne& capacity, an see$ to achieve results.
St$ategy Mon"to$"ng
Monitoring allo&s chec$ing the progress to&ar achieving the 6rm8s
goals an assessing &hether any changes in the environment
necessitate alternatives to the 6rm8s strategy. Moify plans an
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Strategic Management Issues of Coca-
Cola Company
actions to ajust to the impact of changing in the operating
environment.
SIGNIFICNCE OF STRTEGIC MNGEMENT
Strategic management integrates the $no&lege an e.perience
gaine in various functional areas.
It helps to unerstan an ma$e sense of comple. interaction in
various areas of management.
It helps in unerstaning ho& policies are formulate an in creating
appreciation of comple.ities of environment that the senior
management faces in policy formulation.
Managers nee to begin by gaining an unerstaning of the business
environment an to in control.
!hey shoul $no& to manage an unerstan information technology,
&hich is changing the face of business.
As public an common investors o&n an more companies managers
nee to ac;uire s$ills to ma.imize shareholer value.
!o haveEta$e a strategic perspective, managers shoul foresee the
future an trac$ changes in customer e.pectation. Intuitive, logic
reasoning is re;uire for proper ecision-ma$ing.
As corporate are becoming more integrate &ith the public life,
corporate governance is becoming important &hich manager may
have to practice.
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9
!o the shape the 0uture
of business
+)ective strategic iea
Mangers an employer
are innovative an
creative
It8s ecentralize the
Management
Its helps to increase the
prouctivity
!o Ma$es iscipline
!o ma$e control
!o ma$es for&ar s
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Strategic Management Issues of Coca-
Cola Company
I((*e( "n St$ateg"% Manage&ent De%"("on Ma,"ng
3hile ma$ing a ecision the company might have i)erent
people at i)erent perios of time.
4ecision re;uires jugmentsF personal relate factors are
important in ecision-ma$ing. Gence ecision ma y i)ers as
person change.
4ecisions are not ta$en iniviually, but often there is a tas$ in
ecisions &hich coul be Iniviual Hs 1roup ecision ma$ing.
!here &ill be a i)erence bet&een the iniviual an group
ecision-ma$ing.
>n &hat Criteria a company shoul ma$e its ecision, for
evaluation of the e=ciency I e)ectiveness of the ecision
ma$ing process, a company has to set its objectives &hich serves
as main bench mar$.
B Major Criteria in ecision Ma$ing are---
a. !he concept of Ma.imization.
b. !he concept of satisfying.
c. !he concept of instrumentalism.
/ase on the concept chosen the strategic ecisions &ill i)er.
1enerally ecision-ma$ing process is logical an there &ill be
rationality in ecision-ma$ing.
3hen it comes to Strategic ecision ma$ing point of vie& there
&oul be proper evaluation I then e.ercising a choice from
various available alternative resources, &hich leas to attain the
objectives in a best possible &ay.
Creativity in ecision-ma$ing is re;uire &hen there is a
complete situation I the 4ecision ta$en must be original I
i)erent.
!here coul be variability in ecision-ma$ing base on the
situation I Circumstances.
International strategic management results in the evelopment of
various international strategies, &hich are comprehensive frame&or$s
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Strategic Management Issues of Coca-
Cola Company
for achieving a 6rm8s funamentals goals. Conceptually, there are
many similarities bet&een eveloping a strategy for competing in a
single country an eveloping one for competing in multiple counties.
In both cases, the 6rm8s strategic planners must ans&er the same
funamental ;uestionsJ
3hat proucts anEor services oes the 6rm inten to sellK
3here an ho& &ill to ma$e those proucts or servicesK
3here an ho& &ill it sell themK
3here an ho& &ill it ac;uire the necessary resourcesK
Go& oes it e.pect to outperform its competitorsK

/ut eveloping an international strategy is far more comple. than
eveloping a omestic one. /ecause managers eveloping a strategy
for a omestic 6rm must eal &ith one national government, one
currency, one accounting system, one political an legal system an
usually a single language an a comparatively homogeneous culture.
/ut managers responsible for eveloping a strategy for an
international 6rm must unerstan an eal &ith multiple
governments, multiple currencies, multiple political an legal system,
an variety of language an cultures.
Va$"o*( Role( o# St$ateg"% Manage&ent
Senior management plays n important role in Strategic Management.
Role o# Boa$d o# D"$e%to$(- /oar of 4irectors is the supreme
Authority in a company. !hey are the o&nersE shareholersE leners.
!hey are the ones &ho irect an responsible for the governance of
the company. !he Company act an other la&s blin them an their
actions I they sometimes o get involve in operational issues.
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Strategic Management Issues of Coca-
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Drofessionals on the /.>.4 help to get ne& ieas, perspectives an
provie guiance. !hey are the lin$ bet&een the company an the
environment.
Role o# C.E.O- Chief +.ecutive >=cer is the most important
Strategist an responsible for all aspects from
formulationsEImplementation to revie& of Strategic Management. Ge is
the leaer, motivator I /uiler &ho forms a lin$ bet&een company
an the boar of irectors an responsible for managing the e.ternal
environment an its relationship.
Role o# Ent$e+$ene*$- !hey are inepenent in thought an action
an they set E start up a ne& business. A Company can promote the
entrepreneurial spirit an this can be internal attitue of an
organization. !hey provie a sense of irection an are active in
implementation.
Role o# Sen"o$ Manage&ent- !hey are ans&erable to /.>. 4irectors
an !he C.+.> as they &oul loo$ after Strategic Management a
responsible of certain areas E parts of terms.
Role o# SBU / Le'el E0e%*t"'e(- !hey Co-orinate &ith other S/-8s
I &ith Senior Management. !hey are more focuse on their prouct E
burners line.
!hey are more on the implementation role.
Role o# Co$+o$ate Plann"ng Sta1- It provies aministrative
support tools an techni;ues an is a Co-orinate function.
Role o# Con(*ltant- >ften Consultants may be hire for a speci6e
ne& business or +.pertise even to get an unbiase opinion on the
business I the Strategy.
Role o# M"ddle Le'el Manage$(- !hey form an important lin$ in
strategizing I Implementation. !hey are not actively involve in
formulation of Strategies an they are evelope to be the future
management.
COMPNY OVERVIE2
!he Coca-Cola Company "Coca-Cola# is a leaing manufacturer,
istributor an mar$eter of %on-alcoholic beverage concentrates an
syrups, in the &orl. !he company o&ns or licenses more than '((
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Strategic Management Issues of Coca-
Cola Company
brans, incluing iet an light beverages, &aters, juice an juice
rin$s, teas, co)ees, an energy an sports rin$s. !he company
operates in more than *(( countries. Appro.imately ?'M of its
proucts are sol outsie of the -S. !he company is hea;uartere in
Atlanta, 1eorgia an employs ?7,((( people as of September
*((,.!he company recore revenues of N*',(LL million uring the
6scal year ene 4ecember *((,, an increase of '.BM over *((9. !he
increase in revenue &as primarily ue to increase in sales of -nit
cases of company8s proucts from appro.imately *(., billion unit
cases of the company8s Droucts in *((9 to appro.imately *7.' billion
unit cases in *((,, the increase in the Drice an DrouctEgeographic
mi. also booste the revenue gro&th. !he company-&ie gallon sales
an unit case volume both gre& 'M in *((, &hen compare to *((9.
!he operating pro6t of the company &as N,,B(L million uring 6scal
year *((,, an increase of B.?M over *((9. !he net pro6t &as N9,(L(
million in 6scal year *((,, an increase of '.BM over *((9.
HISTORY OF COC)COL
Coca-Cola &as 6rst introuce by Oohn Smyth Demberton, a
pharmacist, in the year 7LL, in Atlanta, 1eorgia &hen he invente
caramel-colore syrup in a three-legge brass $ettle in his bac$yar.
Ge 6rst 5istributeA the prouct by carrying it in a jug o&n the street
to Oacob8s Dharmacy an customers bought the rin$ for 6ve cents at
the soa fountain. Carbonate &ater &as teame &ith the ne& syrup,
&hether by accient or other&ise, proucing a rin$ that &as
proclaime 5elicious an refreshingA, a theme that continues to echo
toay &herever Coca-Cola is enjoye.
4r. Demberton8s partner an boo$-$eeper, 0ran$ M. <obinson,
suggeste the name an penne 5Coca-ColaA in the uni;ue Co&ing
script that is famous &orl&ie even toay. Ge suggeste that 5the
t&o Cs &oul loo$ &ell in avertising.A !he 6rst ne&spaper a for
Coca-Cola soon appeare in Te Atlanta !ournal, inviting thirsty
citizens to try 5the ne& an popular soa fountain rin$.A Gan-
painte oil cloth signs reaing 5Coca-ColaA appeare on store a&nings,
&ith the suggestions 54rin$A ae to inform passersby that the ne&
beverage &as for soa fountain refreshment.
/y the year 7LL,, sales of Coca-Cola average nine rin$s per ay.
!he 6rst year, 4r. Demberton sol *9 gallons of syrup, shippe in
bright re &ooen $egs. <e has been a istinctive color associate
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Strategic Management Issues of Coca-
Cola Company
&ith the soft rin$ ever since. 0or his e)orts, 4r. Demberton grosse
N9( an spent N?B.:, on avertising.
4r. Demberton never realize the potential of the beverage he create.
Ge graually sol portions of his business to various partners an, just
prior to his eath in 7LLL, sol his remaining interest in Coca-Cola to
Asa 1. Canler, an entrepreneur from Atlanta.
/y the year 7L:7, Mr. Canler proceee to buy aitional rights an
ac;uire complete o&nership an control of the Coca-Cola business.
3ithin four years, his merchanising Cair ha helpe e.pan
consumption of Coca-Cola to every state an territory after &hich he
li;uiate his pharmaceutical business an focuse his full attention
on the soft rin$. 3ith his brother, Oohn S. Canler, Oohn Demberton8s
former partner 0ran$ <obinson an t&o other associates, Mr. Canler
forme a 1eorgia corporation name the Coca-Cola Company. !he
traemar$ 5Coca-Cola,A use in the mar$etplace since 7LL,, &as
registere in the -nite States Datent >=ce on Oanuary B7, 7L:B.
!he business continue to gro&, an in 7L:', the 6rst syrup
manufacturing plant outsie Atlanta &as opene in 4allas, !e.as.
>thers &ere opene in Chicago, Illinois, an 2os Angeles, California,
the follo&ing year. In 7L:9, three years after !he Coca-Cola Company8s
incorporation, Mr. Canler announce in his annual report to share
o&ners that 5Coca-Cola is no& run$ in every state an territory in the
-nite States.A
As eman for Coca-Cola increase, the Company ;uic$ly outgre& its
facilities. A ne& builing erecte in 7L:L &as the 6rst hea;uarters
builing evote e.clusively to the prouction of syrup an the
management of the business. In the year 7:7:, the Coca-Cola
Company &as sol to a group of investors for N*9 million. <obert 3.
3ooru) became the Dresient of the Company in the year 7:*B an
his more than si.ty years of leaership too$ the business to
unsurpasse heights of commercial success, ma$ing Coca-Cola one of
the most recognize an value brans aroun the &orl.
HISTORY OF BOTTLING
Coca-Cola originate as a soa fountain beverage in 7LL, selling for
6ve cents a glass. +arly gro&th &as impressive, but it &as only &hen a
strong bottling system evelope that Coca-Cola became the &orl-
famous bran it is toay.
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Strategic Management Issues of Coca-
Cola Company
Yea$ 3456- &ode(t (ta$t #o$ a 7old "dea
In 7L:' the Coca-Cola Company is in a cany store in Hic$sburg,
Mississippi, bris$ sales of the ne& fountain beverage calle Coca-Cola
impresse the store's o&ner, Ooseph A. /ieenharn. Ge began bottling
Coca-Cola to sell, using a common glass bottle calle a Gutchinson.
/ieenharn sent a case to Asa 1riggs Canler, &ho o&ne the
Company. Canler than$e him but too$ no action. >ne of his nephe&s
alreay ha urge that Coca-Cola be bottle, but Canler focuse on
fountain sales.
In *7
st
century the Coca-Cola bottling system gre& up &ith roots
eeply plante in local communities. !his heritage serves the
Company &ell toay as consumers see$ brans that honor local
ientity an the istinctiveness of local mar$ets. As &as true a century
ago, strong locally base relationships bet&een Coca-Cola bottlers,
customers an communities are the founation on &hich the entire
business gro&s.
>ur mission eclares our purpose as a company. It serves as the
stanar against &hich &e &eigh our actions an ecisions. It is the
founation of our Manifesto.
!o refresh the &orl in boy, min an spirit
!o inspire moments of optimism through our brans an our
actions
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1916
Birth of the
contour bottle
1920s and 30s
International
expansion
1950s Packaging
innoations
VISION OF COC)COL COMPNY
VISION OF COC)COL COMPNY
Strategic Management Issues of Coca-
Cola Company
!o create value an ma$e a i)erence every&here &e engage.
!o create consumer proucts, services an communications, customer
service an bottling system strategies, processes an tools in orer to
create competitive avantage an eliver superior value toF
Consumers as a superior beverage e.perience
Consumers as an opportunity to gro& pro6ts through the use of
6nishe rin$s
/ottlers as an opportunity to gro& pro6ts in volumes
/ottlers as a traemar$ enhancement an positive economic value
ae
Suppliers as an opportunity to ma$e reasonable pro6ts &hen
creating real value-ae in an environment of system-&ie team
&or$, Ce.ible business system an continuous improvement
Inian society in the form of a contribution to economic an social
evelopment.
<efresh the 3orl... In boy, min, an spirit
Inspire Moments of >ptimism... !hrough our brans an our actions
Create Halue an Ma$e a 4i)erence... +very&here &e engage.
>ur vision guies every aspect of our business by escribing &hat &e
nee to accomplish in orer to continue achieving sustainable gro&th.
Peo+le@ /eing a great place to &or$ &here people are inspire to be
the best they can be.
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MISSION OF COC)COL COMPNY
MISSION OF COC)COL COMPNY
VISION FOR SUSTINBLE GRO2TH
VISION FOR SUSTINBLE GRO2TH
Strategic Management Issues of Coca-
Cola Company
Po$t#ol"o@ /ringing to the &orl a portfolio of ;uality beverage brans
that anticipate an satisfy people's esires an nees.
Pa$tne$(@ %urturing a &inning net&or$ of customers an suppliers,
together &e create mutual, enuring value.
Planet@ /eing a responsible citizen that ma$es a i)erence by helping
buil an support sustainable communities.
P$o!t@ Ma.imizing long-term return to shareo&ners &hile being
minful of our overall responsibilities.
Coca-Cola Company follo&s i)erent ;uality stanar for i)erent
countries across the globe. Coca-Cola Company has a long-staning
commitment to protecting the consumers &hose trust an con6ence
in its proucts is the beroc$ of its success. In orer to ensure that
consumers stay informe about the global ;uality of all Coca-Cola
proucts sol in 3orl, Coca-Cola proucts carry a ;uality assurance
seal on them. !he P>ne Quality 3orl&ie8 assurance seal appears on
the entire range of Coca-Cola Company8s beverages.
CURRENT ORGNI8TIONL ORGNOGRM
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7B
9ULITY POLICY
9ULITY POLICY
CEO
CEO
+HDE
Dresient
/ottling
InvestE
Supply
Chain
C0> an
+HD
+HDE
Dresien
t MR!
Strategy
Dresien
t
SHD I
1eneral
Counsel
SHD I
4irector
Guman
<esource
s
SHD I
4irector
Dublic A)airsE
Communicati
on
Dresient
of African
1roup
Dresient
+uropean
-nion
Mar$et
Dresient of
+urasia
1roup
Dresient
2atin
America
1roup
Dresient of
Daci6c 1roup
Strategic Management Issues of Coca-
Cola Company
BRNDS OF COC)COL
Coca-Cola SeroT has been one of the most successful
prouct launch hes in Coca-Cola8s history. In *((?, Coca
Cola8s sol nearly '9( million cases globally. Dut into
perspective, that's roughly the same size as Coca Cola8s
total business in the Dhilippines, one of our top 79
mar$ets. As of September *((L, Coca-Cola Sero is
available in more than 7(( countries.
Ene$gy D$"n,(
0or those &ith a high-intensity
approach to life, Coca Cola8s brans
of +nergy 4rin$s contain ingreients
such as ginseng e.tract, guarana
e.tract, an ca)eine an / vitamins.
J*"%e(:J*"%e D$"n,(
3e bring innovation to the gooness
of juice in Coca Cola8s more than *(
juice an juice rin$ brans, o)ering
both aults an chilren nutritious,
refreshing an Cavorful beverages
So#t D$"n,(
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Strategic Management Issues of Coca-
Cola Company
Coca Cola8s ozens of soft rin$ brans provie Cavor an refreshment
in a variety of choices. 0rom the original Coca-Cola to most recent
introuctions, soft rin$s from !he Coca-Cola Company are both icons
an innovators in the beverage inustry.
S+o$t( D$"n,(
Carbohyrates, Cuis, an electrolytes
team together in Coca Cola8s Sports
4rin$s, proviing rapi hyration an
terri6c taste for 6tness-see$ers at any
level
Tea and Co1ee
/ottle an canne teas an co)ees
provie consumers' favorite
rin$s in convenient ta$e-
any&here pac$aging, satisfying
both traitional tea rin$ers an
toay's gro&ing co)ee culture.
2ate$
Smooth an essential, our 3aters an
3ater /everages o)er hyration in
its purest form.

Othe$ D$"n,(
So much more than soft rin$s, Coca
Cola8s brans also inclue mil$
proucts, soup, an more so you
can choose a Coca Cola Company
prouct anytime, any&here for
nutrition, refreshment or other
nees.
CONSUMER CHOICE T GLNCE
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Strategic Management Issues of Coca-
Cola Company
Fa%to$( a1e%t"ng the (t$ateg"% &anage&ent "((*e(
0actors a)ecting the strategic management issues of omestic an
international operations of Coca-Cola Company.
Ta7le 3- Fa%to$( a1e%t"ng the (t$ateg"% &anage&ent "((*e(
2anguage +nglish use as a
secon language
-se the local language re;uire in
many situations
Culture <elatively
homogenous
Quite iverse, both bet&een
countries an &ithin countries
Dolitics -nstable >ften volatile an of ecisive
importance
+conomy -nerevelope 3ie variations among countries an
among regions &ithin countries
1overnmental
interference
<easonably
preictable
>ften e.tensive an subject to rapi
change
2abor S$ille labors are
not available
S$ille labors often scarce, re;uiring
training or reesign of prouction
methos
0inancing Moerately
evelope 6nancial
mar$ets
>ften poorly evelope 6nancial
mar$etsF capital Co&s subject to
government control
Mar$et
research
4ata collect is not
very easy
Sometimes ata i=cult an
e.pensive to collect
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7,
!i"ca #o""on
drink$
%anta Basicall& Preferred b&
!adies and 'ids$
(aa)a also !adies and
'ids
*prite not clearl&
defines$
'inle& *oda (ostl& those +ho
consu"e li,uor
Strategic Management Issues of Coca-
Cola Company
Avertising Meia are available
&ith some
restrictions
Meia limiteF many restrictionsF lo&
literacy rates rule out print meia in
some countries
Money Must change from one currency to
another
!ransportation
s
It is not evelope >ften ae;uate
Control Al&ays a problem A &orse problem
2abor
relations
Collective
bargaining, layo) of
&or$ers
2ayo) of &or$ers often not possibleF
may have manatory &or$er
participation in managementF &or$ers
may see$ change through political
process rather than collective
bargaining
0igure@ 0actors a)ecting the strategic management issues
!here are some factors &hich a)ect strategic of Coca-Cola Company in
case of international operation. 2anguage is one of the main
consierations &hen it oes business omestically, they generally
omestic language. /ut &hen it oes business outsie the country it
Page
7?
2angua
ge
Culture Dolitics +conom
y
1overnme
nt
2abor
0inancin
g
Mar$et Money Control Avertising Contrac
ts
!ransportation an
Communication
2abor <elations
0actors A)ecting International
Strategic Management
0actors A)ecting International
Strategic Management
Strategic Management Issues of Coca-
Cola Company
follo&s Dolycentric policy that is it use i)erent language in i)erent
countries. Sie by sie culture is relatively homogeneous in omestic
operation an ;uite iverse, both bet&een countries an &ithin
countries. Dolitical stability an policy also be consiere by the Coca-
Cola Company. Control function is one by centrally in case of
omestically but &hen it goes beyon outsie, it must &or$ a tightrope
bet&een over centralizing an losing control to much ecentralizing.
2abor is another consieration because their s$ills an collective
bargaining that is labor relation i)er from country to country.
Avertising in omestic country is very easy because omestic
cultures are $no&n to them. /ut in case of international operation it
faces many problems for avertising such as shortage of meia, huge
avertising cost an so forth. Go&ever economy is relatively uniform in
omestic8s country but outsies, it faces &ie variation among
countries an among region &ithin country. In case of Coco-Cola
Company the mar$et research ata is easy to collect but &hen it goes
to foreign sometimes face i=cult an e.pensive to collect ata. At
last &e see that government interference in case of omestically, it is
minimal an reasonably preictable but in international operation it is
often e.pensive an subject to rapi change.
St$ateg"% lte$nat"'e( o# M*lt"nat"onal Co&+an"e(
Multinationals corporations typically aopt one of four strategic
alternatives in their attempt to balance the three goals of global
e=ciencies, multinational Ce.ibility, an &orl&ie learning. !here
four strategies are as follo&sJ
"ome #eplication Strategy
In this strategy, a 6rm utilizes the core competency or 6rm-speci6c
avantage it evelope at home as its main competitive &eapon in the
foreign mar$ets that it enters. !hat is, it ta$es &hat it oes
e.ceptionally &ell in its home mar$et an attempts to uplicate it in
foreign mar$ets.
Multi-domestic Strategy
It is the secon alternative available to international 6rm. A multi-
omestic corporation vie&s itself as a collection of relatively
inepenent operating subsiiaries, each of &hich focuses on a
speci6c omestic mar$et.
$lo%al Strategy
It is the thir alternative available for international 6rms. A global
corporations vie&s the &orl as a single mar$etplace an has as its
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7L
Strategic Management Issues of Coca-
Cola Company
primary goal the creation of stanarize goos an services that &ill
aress the nees of customers &orl&ie.
Transnational Strategy
!he transnational corporation attempts to combine the bene6ts of
global scale e=ciencies &ith the bene6ts of local responsiveness.
St$ateg"e( #o$ Co%a Cola Co&+any
!hese four strategy are sho&n in the follo&ing 6gureJ
0rom these four strategies Coca-Cola Company follo& the Multi-
omestic strategies. !hey prouce their proucts inepenently in
i)erent countries. All countries prouct are not same. !hey prouce
their proucts by follo&ing i)erent strategy for i)erent countries,
base on the internal an e.ternal environment of the country. Coca-
Cola Company evelope their strategy by consiering the nature of
the people of i)erent county8s people, culture, status an so many
other relate factors. /ehin the reasons of follo&ing of this strategy
may be that, i)erent countries economies of scale for prouction,
istribution, an mar$eting are lo&, sie by sie cost of coorination
bet&een the parent corporation an its various foreign subsiiaries is
high. /ecause each subsiiary in a multi-omestic corporation must be
responsive to the local mar$et, the parent company usually elegates
consierable po&er an authority to managers of its subsiiaries in
various host countries.
Le'el( o# St$ateg"e( #ollo;ed 7y Co%a)Cola Co&+any
Page
7:
Gome
<eplication
Strategy
Gome
<eplication
Strategy
Multi-omestic
Strategy
U
Multi-omestic
Strategy
U
!ransnational
Strategy
!ransnational
Strategy
1lobal Strategy
1lobal Strategy
Strategic Management Issues of Coca-
Cola Company
!here are three levels of strategies follo&e by Coca-Cola Company.
!his may be state as the follo&ingJ
0igure@ 2evels of Strategies
Co$+o$ate Le'el St$ategy
Corporate level strategy attempts to e6ne the omain of business the
6rm intens to operate. Corporate level strategy funamentally is
concerne &ith the selection of businesses in &hich the company
shoul compete an &ith the evelopment an coorination of that
portfolio of businesses. A 6rm might aopt any of three forms of
corporate strategy@
A single business strategy
<elate iversi6cation strategy an
-nrelate iversi6cation strategy.
Coca-Cola Company follo&s relate iversi6cation strategy that is calls
for the 6rm to operate in several i)erent but funamentally relate
businesses. +ach of its operations lin$e to the others Coca-Cola
characters, the Coca-Cola logo, an a theme of &holesomeness an a
reputation for proviing high ;uality family proucts. Coca-Cola
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*(
Strategic Management Issues of Coca-
Cola Company
Company follo&s this strategy because it has several avantages. At
&rst' the 6rm epens less on a single proucts so it is less vulnerable
to competitive or economic threats. Secondly, relate iversi6cation
may prouce economies of scale for a 6rm. Tirdly' relate
iversi6cation may allo& a 6rm to use technology or e.pertise
evelope in one mar$et to enter a secon mar$et more cheaply an
easily. Corporate level strategies of Coca-Cola Company is follo&ingJ
0igure@ Corporate Strategy of Coca-Cola Company
B*("ne(( Un"t Le'el St$ategy
A strategic business unit may be a ivision, prouct line, or other pro6t
center that can be planne inepenently from the other business
units of the 6rm. Corporate strategy eals &ith the overall &here as
business strategy focuses on speci6c business, subsiiaries or
operating units &ithin the 6rm. /usiness see$s to ans&er the ;uestion
5ho& shoul &e compete in each mar$et &e have chosen to enterKA
!he 6rms evelop uni;ue business strategy for each of its strategic
business units, or it may pursue the same business strategy for all of
them. !he three basic business strategy are i)erentiation, overall
cost leaership an focus. Coca-Cola Company uses the i)erentiation
strategy e)ectively.
F*n%t"onal Le'el St$ategy
!he functional strategies attempts to ans&er to ;uestion 5Go& &e
manage the functionKA !he functional level of the organization is the
level of the operating ivisions an epartments. !he strategic issues
Page
*7
Co$+o$ate Le'el St$ategy
o# Co%a)Cola Co&+any
Co$+o$ate Le'el St$ategy
o# Co%a)Cola Co&+any
Mar$eting
Strategies
Mar$eting
Strategies
<I4 Strategies
<I4 Strategies
System
Strategie
s
System
Strategie
s
<e&ar
System
Strategies
<e&ar
System
Strategies
0inancial
Strategies
0inancial
Strategies
Strategic Management Issues of Coca-
Cola Company
at the functional level are relate to business processes an the value
chain. 0unctional level strategies in mar$eting, 6nance, operations,
human resources, an <I4 involve the evelopment an coorination
of resources through &hich business unit level strategies can be
e.ecute e=ciently an e)ectively.
0unctional units of an organization are involve in higher level
strategies by proviing input into the business unit level an corporate
level strategy, such as proviing information on resources an
capabilities on &hich the higher level strategies can be base. >nce
the higher-level strategy is evelope, the functional units translate it
into iscrete action-plans that each epartment or ivision must
accomplish for the strategy to succee.
E)COMMERCE OF COC)COL COMPNY
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**
Strategic Management Issues of Coca-
Cola Company
Good +o"nt( o# Co%a)Cola Co&+any
/ran Dromotion
Attractive proucts selection
2oo$ an feel L
Drovision of multimeia prouct, catalogue pages
Dersonal attention
Community relationships
2ea, +o"nt( o# Co%a)Cola Co&+any
Derformance an service@ that is not easy navigation, shopping
an purchasing, an prompt shipping an elivery.
4iscount pricing is not being o)ere.
De'elo+"ng Inte$nat"onal St$ateg"e(
4eveloping international strategies is not a one-imensional process..
Simply put, put strategy formulations eciing &hat to o an strategy
implementation is actually oing it. 0irms generally carry out
international strategic management in t&o broa strategies-
St$ategy Fo$&*lat"on
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*B
Strategic Management Issues of Coca-
Cola Company
In strategies formulation, a 6rm establishes its goals an strategic plan
that &ill lea to the achievement of their mission goals. In
international strategy formulation, managers evelop, re6ne, an
agree on &hich mar$ets of enter "or e.it# an ho& best to compete in
each.
St$ategy I&+le&entat"on
A 6rm evelops the tactics for achieving the formulate international
strategies is $no&n as strategy implementation. Strategy
implementation is usually achieve via the organization8s esign, the
&or$ of its employees, an its control systems an processes.
+very Multinational Companies are eveloping their international
strategies so that they can survive in the comple. business situation.
%o& the moern mar$et is fully globalize an as a result it8s really
i=cult for every multinational organization in the right trac$. In such
aspect the importance of strategy formulation an strategy
implementation playe an important role. Sie by sie there is some
important process &hich helps in international strategy formulation.
De'elo+"ng Inte$nat"onal St$ateg"e( "n (+e%t( o# Co%a)Cola
Co&+any
!CCQS is the Coca-Cola system8s brane ;uality management
system. It helps coorinate an guie our activities to ensure ;uality in
everything they o. 0or entering in to a ne& mar$et an be survive in
the mar$et it al&ays reay to cope &ith change. 4i)erent government
policy, economic conition, political situation, barrier an ban are
associate &ith i)erent mar$et.
Coca-Cola Company8s basic strategies are to evelop a mission
statement for entering a ne& mar$et epening on a fully Cege
mar$et survey. Ientifying e.ternal an internal environment strength,
&ea$ness, opportunity, an threats is the ne.t management
strategies. 4epening on the scope an opportunity the company &ill
go for&ar as &ell as try to resolve the &ea$ness an threats. After
entering into a ne& mar$et Coca-Cola Company try to achieve
strategic goals an guie its aily activities &ith proper observation.
2astly this company establishes a control frame&or$ for controlling the
managerial an organizational systems an process as &ell. !his
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Strategic Management Issues of Coca-
Cola Company
company believes that, for ta$ing a position in a ne& country is fully
epens on the goo formulation strategies an $eeping it. !o o
business outsie the local mar$et is epening on the ;uality control
of the prouct an ;uality ensures the customer perception an the
choice for consuming this proucts.
F"g*$e@ Quality Management System of Coca-Cola Company
!hrough this moel, &e see that the company is 6rst ta$e the response
of customers an consumers through mar$et survey. !hen the
management accumulates the best ;uality resources for ma$ing their
proucts. !his process inclues-
S$ille employee involvement for prouction an ;uality control
Gigh ;uality materials for prouction
-p to ate technology for ;uality control
+)ective methos an ne&ly evelope strategies
!hey &ill follo& some se;uential steps in eveloping the international
strategy formulation. !hose steps help the Coca-Cola Company to
enter an establish their business in multinational base. !hey are
follo&ing multi-omestic strategies for their prouce prouct as &ell
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Strategic Management Issues of Coca-
Cola Company
as their mar$eting system. !he analysis of i)erent levels of strategic
formulating of Coca-Cola Company is given belo&.
De'elo+"ng the M"(("on State&ent
Coca-Cola Company begins the international strategic planning
process by creating a mission statement, &hich clari6es the
organization8s purpose, value, an irections. !he mission statement is
often use as a &ay of communicating &ith internal an e.ternal
constituents an sta$eholers about the 6rm8s strategic irection.
M"(("on (tate&ent o# Co%a)Cola Co&+any
!his company focuse on riving gro&th in of their business in
selecte pro6table an emerging categories. !o evelop, implement
an continuously improve the integrate management systems in a
culture of continuous improvement &hich@
4irects the continual up-graation for e=cient an environment
frienly manufacturing technology.
Monitor an improve the e=ciency an e)ectiveness of all
business processes.
Dromotes professional an Ce.ible &or$ environment, team&or$
an innovation through employee participation an process
o&nership.
4rives customer orientation at all levels &ithin the organization.
Monitor an economize the Cost of Quality.
Co&&ent( on &"(("on State&ent(
<In te$&( o# ho; they (*++o$t the (t$ateg"e(=
!he vision statement of this company supports the e.isting strategies
that are "generic strategy# that Coca Cola nees to pursue is that of
i)erentiation. In their current vision an mission statements, the
company says it aims to be a lo& cost leaer, yet through their
analysis of the strategic irection, the company nees to aopt a
generic strategy of i)erentiation. !his &ill allo& Coca cola to o t&o
thingsF
7. Increase unit sales
*. 1ain buyer loyalty
Go&ever, at the e.pense of souning simplistic, it is necessary that
the company communicate its i)erentiation to its customers,
other&ise these t&o avantages &ill not avail themselves. Initially
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Strategic Management Issues of Coca-
Cola Company
Coca cola &ill nee to aopt a focuse i)erentiation approach, &hich
means that they shoul selectively choose &hich mar$ets &ill pro6t
them the most an then target only those mar$ets until such
provisions are in place from &here the company is able to e.pan its
target base. After &hich they shoul opt for a broa i)erentiation
generic strategy.
COC)COL COMPNY> THE SWOT NLYSIS
S2OT NLYSIS
!he Coca-Cola Company "Coca-Cola# is a leaing manufacturer,
istributor an mar$eter of %on-alcoholic beverage concentrates an
syrups, in the &orl. Coca-Cola has a strong bran name an bran
portfolio. /usiness-3ee$ an Inter bran, a braning consultancy,
recognize Coca-Cola as one of the leaing brans in their top 7((
global brans ran$ing in *((L. !he /usiness 3ee$-Interbre value
Coca-Cola at N,?,((( million in *((L. Coca-Cola ran$s &ell ahea of its
close competitor Depsi &hich has a ran$ing of ** having a bran value
of N7*,,:( million !he Company8s strong bran value facilitates
customer recall an allo&s Coca-Cola to penetrate mar$ets. Go&ever,
the company is threatene by intense competition &hich coul have
an averse impact on the company8s mar$et share.
Analyzing the primary competitor an ientifying their Strengths,
3ea$nesses, >pportunities, an !hreats "S3>! Analysis# help
etermine target mar$ets, mar$eting plan, an customer service, sales
forecasting an sales planning. +.amining the follo&ing &ill assist in
the competitive analysis@
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Strategic Management Issues of Coca-
Cola Company
Ientify the level of rivalry among competing sellers in the
inustry
<evie& strategies of companies to encourage customers to
s&itch from a competitor
Analyze ease of entry for ne& competitors
4etermine bargaining po&er for suppliers of $ey materials an
components
4etermine bargaining po&er for buyers of the prouct
S3>! Analysis represents the analysis of the follo&ing four thingsJ
STRENGTHS
D"(t$"7*t"on net;o$,- !he Company has a strong an reliable
istribution net&or$. !he net&or$ is forme on the basis of the time of
consumption an the amount of sales yiele by a particular customer
in one transaction. It has a istribution net&or$ consisting of a number
of e=cient salesmen, ?((,((( retail outlets an L((( istributors. !he
istribution Ceet inclues i)erent moes of istribution, from 7(-
tonne truc$s to open-bay three &heelers that can navigate through
narro& alley&ays of Inian cities an traemar$e tricycles an
pushcarts.
St$ong B$and(- !he proucts prouce an mar$ete by the
Company have a strong bran image. Deople all aroun the &orl
recognize the brans mar$ete by the Company. Strong bran names
li$e Coca-Cola, 0anta, 2imca, an Maaza a up to the bran name of
the Coca-Cola Company as a &hole. !he re an &hite Coca-Cola is
one of the very fe& things that are recognize by people all over the
&orl. Coca-Cola has been name the &orl's top bran for a fourth
consecutive year in a survey by consultancy Inter bran. It &as
estimate that the Coca-Cola bran &as &orth N?(.'9billion.
Lo; Co(t o# O+e$at"on(- !he prouction, mar$eting an istribution
systems are very e=cient ue to for&ar planning an maintenance of
consistency of operations &hich minimizes &astage of both time an
resources leas to lo&ering of costs.
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Strategic Management Issues of Coca-
Cola Company
2E?NESSES
Lo; E0+o$t Le'el(- !he brans prouce by the company are brans
prouce &orl&ie thereby ma$ing the e.port levels very lo&. In
Inia, there e.ists a major controversy concerning pesticies an other
harmful chemicals in bottle proucts incluing Coca-Cola.
S&all S%ale Se%to$ Re(e$'at"on( L"&"t 7"l"ty To In'e(t nd
%h"e'e E%ono&"e( O# S%ale- !he Company8s operations are carrie
out on a small scale an ue to 1overnment restrictions an Pre-
tapism8, the Company 6ns it very i=cult to invest in technological
avancements an achieve economies of scale.
OPPORTUNITIES
La$ge Do&e(t"% Ma$,et(- !he omestic mar$et for the proucts of
the Company is very high as compare to any other soft rin$
manufacturer. Coca-Cola Inia claims a 9L per cent share of the soft
rin$s mar$etF this inclues a '* per cent share of the cola mar$et.
>ther proucts account for 7, per cent mar$et share, chieCy le by
2imca. !he company appointe 9(,((( ne& outlets in the 6rst t&o
months of this year, as part of its plans to cover one la$h outlets for
the coming summer season an this also covere B,9(( ne& villages.
In /angalore, Coca-Cola amounts for ?'M of the beverage mar$et.
E0+o$t Potent"al- !he Company can come up &ith ne& proucts
&hich are not manufacture abroa, li$e Maaza etc an e.port them to
foreign nations. It can come up &ith strategies to eliminate
apprehension from the mins of the people to&ars the Co$e proucts
prouce in Inia so that there &ill be a consierable amount of
e.ports an it is yet another opportunity to broaen future prospects
an cater to the global mar$ets rather than just omestic mar$et.
H"ghe$ In%o&e a&ong Peo+le- 4evelopment of Inia as a &hole has
lea to an increase in the per capita income thereby causing an
increase in isposable income. -nli$e olen times, people no& have
the po&er of buying goos of their choice &ithout having to &orry
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Strategic Management Issues of Coca-
Cola Company
much about the Co& of their income. !he beverage inustry can ta$e
avantage of such a situation an enhance their sales.
THRETS
I&+o$t(- 0or e.ample@ As Inia is eveloping at a fast pace, the per
capita income has increase over the years an a majority of the
people is eucate, the e.port levels have gone high. Deople
unerstan trae to a large e.tent an the eman for foreign goos
has increase over the years. If consumers shift onto importe
beverages rather than have beverages manufacture &ithin the
country, it coul pose a threat to the Inian beverage inustry as a
&hole in turn a)ecting the sales of the Company.
Ta0 and Reg*lato$y Se%to$- !he ta. system in Inia is accompanie
by a variety of regulations at each stage on the conse;uence from
prouction to consumption. 3hen a license is issue, the prouction
capacity is mentione on the license an every time the prouction
capacity nees to be increase, the license poses a problem.
<ene&ing or upating a license every no& an then is i=cult.
!herefore, this can limit the gro&th of the Company an pose
problems.
Slo;do;n In R*$al De&and- !he rural mar$et may be alluring but it
is not &ithout its problems@ 2o& per capita isposable incomes that is
half the urban isposable incomeF large number of aily &age earners,
acute epenence on the vagaries of the monsoonF seasonal
consumption lin$e to harvests an festivals an special occasionsF
poor roasF po&er problemsF an inaccessibility to conventional
avertising meia. All these problems might lea to a slo&o&n in the
eman for the company8s proucts.
COC)COL COMPNY> THE PEST NLYSIS
- scan of the external "acro.eniron"ent in +hich the fir" operates can be
expressed in ter"s of the follo+ing factors/
Political
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B(
Strategic Management Issues of Coca-
Cola Company
0cono"ic
*ocial
1echnological
1he acron&" PEST 2or so"eti"es rearranged as 3*10P34 is used to describe a
fra"e+ork for the anal&sis of these "acro eniron"ental factors$ - P0*1 anal&sis
fits into an oerall eniron"ental scan5 +hich consists of significant political5
econo"ic5 social and technological anal&sis for a fir" to reach their desirable
position or to attain the goals and ob6ecties$ %or operating a business +orld+ide it
is too "uch i"portant5 because its anal&sis represent the oerall eniron"ental
scanning as sho+n in the follo+ing diagra"/
Environmental Scan
/ \
External Analysis Internal Analysis
/ \
Macro environment Microenvironment
|
P.E.S.T.

#oca.#ola #o"pan&7s perfor"8 operate their business unit in different countr&
based on the deeloping of the P0*1 anal&sis$ 1he P0*1 anal&sis of #oca.#ola
#o"pan& is as follo+ing9
Political Factors
It is one of the significant parts of a co"pan& +here5 in +hich countr& the&
operate their business unit$ Political factors include goern"ent regulations and
legal issues and define both for"al and infor"al rules under +hich the fir" "ust
operate$ *o"e exa"ples include/
tax polic&
e"plo&"ent la+s
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Strategic Management Issues of Coca-
Cola Company
eniron"ental regulations
trade restrictions and tariffs
political stabilit&
Economic Factors
-nother "ost i"peratie ele"ent for P0*1 anal&sis is econo"ic factors$
0cono"ic factor affects the purchasing po+er of potential custo"ers and the fir":s
cost of capital$ 1he follo+ing are exa"ples of factors in the "acro.econo"&/
econo"ic gro+th
interest rates
exchange rates
inflation rate
Social Factors
*ocial factors include the de"ographic and cultural aspects of the external "acro
eniron"ent$ 1hese factors affect custo"er needs and the si)e of potential
"arkets$ *o"e social factors include/
health consciousness
population gro+th rate
age distribution
career attitudes
e"phasis on safet&
Technological Factors
1echnological factors can lo+er barriers to entr&5 reduce "ini"u" efficient
production leels5 and influence outsourcing decisions$ *o"e technological factors
include/
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Strategic Management Issues of Coca-
Cola Company
;<= actiit&
auto"ation
technolog& incenties
rate of technological change
De'elo+ St$ateg"% and ta%t"%al goal( and +lan( o# Co%a)
Cola Co&+any
After completion of S3>! an D+S! analysis as conte.t, international
strategic planning is largely frame by the setting of strategic goals.
/ase on i)erent mar$et situation as &ell as customers response this
company &ill set up their tactical goals for being a strong position in
the global mar$et place. Strategic goals are the major objectives that
the Company &ants to accomplish through pursuing a particular
course of action.
!he basic objective of set up this strategic an tactical plan an goals
is to e.ploit the 6rm8s strengths an environmental opportunities,
neutralize e.ternal threats an overcome the 6rm8s &ea$ness.
4epening on those vital factors this Coca-Cola Company is evelop a
Control 0rame&or$ for their overall controlling of management.
!hrough this frame&or$ managerial an organizational systems are
observe, monitor, an processe.
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Strategic Management Issues of Coca-
Cola Company
F"nd"ng(
/y preparing this report about the strategic management issues of
multinational companies "M%CS#, the case stuy on the Coca-Cola
Company, &e get some important things. !hese 6nings are as follo&s
J
Coca-Cola +nterprises is the &orl's largest mar$eter, proucer
an istributor of Coca-Cola proucts.
Coca-Cola &as 6rst introuce by Oohn Smyth Demberton, a
pharmacist, in the year 7LL, in Atlanta, 1eorgia &hen he
invente caramel-colore syrup in a three-legge brass $ettle in
his bac$yar.
It operates in ', -.S. states an Canaa, an is the e.clusive
Coca-Cola bottler for all of /elgium, continental 0rance, 1reat
/ritain, 2u.embourg, Monaco an the %etherlans. Coca-Cola is
the non alcoholic bottle beverages.
!he company o&ns or licenses more than '(( brans, incluing
iet an light beverages, &aters, juice an juice rin$s, teas,
co)ees, an energy an sports rin$s.
!he company operates in more than *(( countries
Strategic management integrates the $no&lege an e.perience
gaine in various functional areas.
B Major Criteria in ecision Ma$ing are---the concept of
Ma.imization, the concept of satisfying, the concept of
instrumentalism.
!he vision of Coca-Cola Company is to refresh the &orl in boy,
min an spirit
/ringing to the &orl a portfolio of ;uality beverage brans that
anticipate an satisfy people's esires an nees.
Coca-Cola SeroT has been one of the most successful prouct
launch hes in Coca-Cola8s history
It has soft rin$s, energy rin$s, juice rin$s, sports rin$s, tea
an co)ee, &ater an other rin$s.
Coca-Cola Company follo&s the multi-omestic strategy for
operating their business.
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Strategic Management Issues of Coca-
Cola Company
After entering into a ne& mar$et Coca-Cola Company try to
achieve strategic goals an guie its aily activities &ith proper
observation.
1oo points of Coca-Cola Company are bran promotion,
alternative proucts selections, Drovision of multimeia prouct,
catalogue pages an so on.
CONCLUSION
/eing in such a tense competition "just li$e the bran Coca-Cola#,
Coca-Cola shoul not ta$e the irect an tough attac$ upon it. !here is
no goo to either sie. !he best &ay is to $eep a peaceful relationship
&ith it an al&ays compare &ith othersF &e shoul 6n their
isavantages an sho& our avantages on this aspect. !hen by an
by, the people &oul thin$ ours is bette >f course the most important
rule is to improve ourselves to meet the consumers. An organization8s
strategic thin$ing is governe by the situation prevalent in its e.ternal
environment. !he e.ternal environment comprises of the strategic
moves aopte by the organization8s competitors. !he organization
has to carefully stuy these moves an accoringly evise strategies
to gain competitive avantage. 0or the same, the organization nees
to conuct an inustry an competitive analysis. !he paper iscusses
the steps an processes involve in the same. In formulating business
strategy, managers must consier the strategies of the 6rm's
competitors. 3hile in highly fragmente commoity inustries the
moves of any single competitor may be less important, in
concentrate inustries competitor analysis becomes a vital part of
strategic planning.
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Strategic Management Issues of Coca-
Cola Company
REFERENCES
Cooper, <. 4., Schinler, S. D. "*((7#, 5International /usiness <esearch
MethoA Seventh +ition, %e& Vor$@ Mc1ra&-Gill Ir&in
1erar Drenergast an 2eylan Ditt "*((?# 5International Oournal of
Strategic Management@ a 3orl IssueA, Hol. *, %o.,, 7::,, pp. ,(-?*.
W MC/ -niversity Dress.
Oames Drenergast an +ammon Murphy an Malcom Stephenson
"7::,# 5International Oournal of Quality I <eliability ManagementA, Hol.
7B %o. 9, 7::,, pp. ??-:(, W MC/ -niversity Dress.
<ose Sebastianelli an %abil !amimi 5Go& Management Strategies
4e6ning QualityA, Hol. 7: %o. ', *((*, pp. ''*-'9B. MC/ -D 2imite.
Annual <eport of Coca-Cola Company "*((9-*((:#
&&&.co$eEhomeContent.asp.htm
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