Strategic Management Issues of Multinational Companies

(MNCs): A Case Study on Coca-Cola Company

Objectives of the Study
• To know about the strategies of the
multinational companies

• To characterize the challenges of

international strategic management

• To know about the international strategic

management process

• To know about the Coca-Cola Company’s

strategies in management process.
Definition of Strategic

Strategic management is the process

of specifying an organization's
objectives, developing policies and
Management

plans to achieve these objectives, and

allocating resources so as to
implement the plans. It is the highest
level of managerial activity, usually
performed by the company's Chief
Executive Officer(CEO) and executive
team.
 To the shape the Future of business
Importance of Strategic

Effective strategic idea

Management

Mangers and employer are innovative and

creative
It’s decentralized the Management
Its helps to increase the productivity
To Makes discipline
To make control
To makes forward s thinking
 Goal Setting
International Strategic
Management

Strategies Strategic Strategies

Monitoring Management Formulation

Strategies
Implementation
Questions Faced by Strategic
● What products and/or services
does the firm intend to sell?
● Where and how will to make
those products or services?
Planners

● Where and how will it sell them?

● Where and how will it acquire the
necessary resources?
● How does it expect to outperform
its competitors?
Company Overview
 COMPANY OVERVIEW

The Coca-Cola Company (Coca-Cola) is a leading

manufacturer, distributor and marketer of Non-
alcoholic beverage concentrates and syrups, in
the world. The company owns or licenses more
than 400 brands, including diet and light
beverages, waters, juice and juice drinks, teas,
coffees, and energy and sports drinks.
 History Of Growth of Coca-cola

1950s …
1920s and 30s Packaging
1916 … … Innovations
Birth of the International
contour bottle expansion
Recent Status
Products OF COCA COLA Company

Energy Drinks
Juices/Juice Drinks
Soft Drinks
Sports Drinks
Tea and Coffee
Water
Other Drinks
 Coca-Cola Company believes that, customers
are the life of their business. They like to
connect with the future customer through
Strategic Quality

providing quality products-

Control

Skilled employee involvement for

production and quality control
High quality materials for production
Up to date technology for quality control
Effective methods and newly developed
strategies
Factors Affecting The strategic Issues of
Coca-Cola Company

● Language ● Market research

● Culture ● Advertising

● Politics ● Money

● Economic ● Financing
● Governmental ● Transportations
interference ● Control
● Labor ● Labor relations
Strategic Alternatives of Coca-Cola Company

Coca Cola Company follow the Multi-

domestic strategies. This Company
produce their products independently
in different countries. All countries
product are not same. They produce
their products by following different
strategy for different countries, based
on the internal and external
environment of the country.
Corporate Level of Strategies of Coca-Cola Company

Corporate Level of
Strategies

Marketing Operating H&D Financial Reward

Strategies Strategies Strategies Strategies Strategies
 The company now using E-Commerce System for
selling their products. So any one can order coke
Example of Using New
by using his or her internet.
Strategies
Developing International
Strategy Formulation

In strategies formulation, Coca-Cola

Company establish its goals and strategic
Strategies

plan that will lead to the achievement of

their mission goals.

Strategy Implementation

Coca-Cola Company develops the tactics

and policy for achieving the formulated
international strategies to obtain its
mission and objectives.
Mission statement of Coca-Cola Company

Directs the continual up-gradation for efficient and

environment friendly manufacturing technology.
Monitor and improve the efficiency and effectiveness
of all business processes.
Promotes professional and flexible work environment,
teamwork and innovation through employee
participation and process ownership.
Drives customer orientation at all levels within the
organization.
Monitor and economize the Cost of Quality.
 Strengths Weakness
SWOT Analysis

• Strong ● Low export

distribution levels
network
● Limit ability to
• Strong brand
invest and
Products
achieve
• Low cost of economies of
Operations scale
 Opportunities Threats
SWOT Analysis

• Large Domestic ● Imports

Markets

• Export ● Tax and

Potential regulatory sector

• Higher Income ● Slowdown in

among People rural demand
 PEST Analysis of Coca-Cola Company

Macro
P.E.S.T.
Environment
External
Analysis
Environmental Micro
Scan Environment
Internal
Analysis
PEST Analysis of Coca-
Cola Company Political Factors Economic Factors

• Tax policy ●Economic growth

• Employment laws
●Interest rates
• Environmental
regulations ●Exchange rates
• Trade restrictions
and tariffs ●Inflation rate

• Political stability
PEST Analysis of Coca-
Social Factors Technological
Factors
Cola Company

● Health consciousness ● R&D activity

● Population growth ● Automation

rate
● Technology
● Age distribution incentives

● Career attitudes ● Rate of technological

change
● Emphasis on safety
Gain Over Customer Satisfaction

After completion of SWOT and PEST analysis

as context The Coca-Cola Company
implementing their strategies based on
different market situation as well as
customers response. This company will set
up their tactical goals for being a strong
position in the global market place.
Depending on those issue factors The Coca-
Cola Company is develop a Control
Framework for their overall controlling of
management for gaining over their
customers by providing core satisfaction.
The End