Strategic Management - A Case Study on Coca-Cola

8/8/2019 Strategic Management - A Case Study on Coca-Cola

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Strategic Management Issues of Multinational Companies(MNCs): A Case Study on Coca-Cola Company



O b j e c

t i v e s o f

t h e S t u d

y

• To know about the strategies of themultinational companies

• To characterize the challenges of

international strategic management

• To know about the international strategicmanagement process

• To know about the Coca-Cola Company’sstrategies in management process.



D e f i n i t i o n o f S

t r a t e g i c

M a n a g e m

e n t

Strategic management is the processof specifying an organization'sobjectives, developing policies andplans to achieve these objectives, andallocating resources so as toimplement the plans. It is the highestlevel of managerial activity, usuallyperformed by the company's Chief

Executive Officer(CEO) and executiveteam.



To the shape the Future of business

Effective strategic idea

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 I m p

o r t a n c e o f

S t r a t e g i c

M a n a g e m

e n t



I n t e r

n a t i o n a l S t r a t e g i c

M a n a g e m

e n t

StrategicManagement

Goal Setting

StrategiesFormulation

StrategiesImplementation

StrategiesMonitoring



Q u e s t i o

n s F a c e d

b y S t r a t e g

i c

P l a n n e

r s

● What products and/or servicesdoes the firm intend to sell?

● Where and how will to makethose products or services?

● Where and how will it sell them?

● Where and how will it acquire thenecessary resources?

● How does it expect to outperformits competitors?


http://slidepdf.com/reader/full/strategic-management-a-case-study-on-coca-cola 7/27Company Overview



COMPANY OVERVIEW

The Coca-Cola Company (Coca-Cola) is a leadingmanufacturer, distributor and marketer of Non-

alcoholic beverage concentrates and syrups, inthe world. The company owns or licenses morethan 400 brands, including diet and lightbeverages, waters, juice and juice drinks, teas,coffees, and energy and sports drinks.



History Of Growth of Coca-cola

1916 …

Birth of the

contour bottle

1920s and 30s

…

International

expansion

1950s …

PackagingInnovations

Recent Status

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Products OF COCA COLA Company

Energy Drinks

Juices/Juice Drinks

Soft Drinks

Sports Drinks

Tea and Coffee

Water

Other Drinks

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S t r a t e g i c Q u a l i t y

C o n t r

o l

Coca-Cola Company believes that, customers

are the life of their business. They like toconnect with the future customer throughproviding quality products-

Skilled employee involvement forproduction and quality control

High quality materials for production

Up to date technology for quality control

Effective methods and newly developedstrategies



● Market research

● Advertising

● Money

● Financing

● Transportations

● Control

● Labor relations

● Language

● Culture

● Politics

● Economic

● Governmental

interference● Labor

Factors Affecting The strategic Issues ofCoca-Cola Company



Coca Cola Company follow the Multi-domestic strategies. This Companyproduce their products independentlyin different countries. All countriesproduct are not same. They producetheir products by following differentstrategy for different countries, basedon the internal and externalenvironment of the country.

Strategic Alternatives of Coca-Cola Company



Corporate Level of Strategies

Marketing

Strategies

Operating

Strategies

H & D

Strategies

Financial

Strategies

Reward

Strategies

Corporate Level of Strategies of Coca-Cola Company



E x a m p l e o f U

s i n g N e w

S t r a t e g

i e s

The company now using E-Commerce System for

selling their products. So any one can order cokeby using his or her internet.



D e v e l o p i n g I n t e r n a t i o n a l

S t r a t e g

i e s

Strategy Formulation

In strategies formulation, Coca-ColaCompany establish its goals and strategicplan that will lead to the achievement of

their mission goals.

Strategy Implementation

Coca-Cola Company develops the tacticsand policy for achieving the formulatedinternational strategies to obtain itsmission and objectives.



Mission statement of Coca-Cola Company

Directs the continual up-gradation for efficient andenvironment friendly manufacturing technology.

Monitor and improve the efficiency and effectivenessof all business processes.

Promotes professional and flexible work environment,teamwork and innovation through employeeparticipation and process ownership.

Drives customer orientation at all levels within theorganization.

Monitor and economize the Cost of Quality.








S W

O T A n

a l y s i s Strengths

• Strongdistribution

network

• Strong brandProducts

• Low cost of Operations

Weakness

●Low exportlevels

●Limit ability toinvest andachieve

economies of scale



S W

O T A n

a l y s i s Opportunities

• Large DomesticMarkets

• ExportPotential

• Higher Income

among People

Threats

● Imports

● Tax andregulatory sector

● Slowdown in

rural demand



Environmental

Scan

ExternalAnalysis

MacroEnvironment

P.E.S.T.

MicroEnvironment

InternalAnalysis

PEST Analysis of Coca-Cola Company



P E S T

A n a l y s i s o f C o c a -

C

o l a C o m

p a n y

Political Factors

• Tax policy

• Employment laws

• Environmentalregulations

• Trade restrictionsand tariffs

• Political stability

Economic Factors

●Economic growth

●

Interest rates

●Exchange rates

●Inflation rate



P E S T

A n a l y s i s o f C o c a -

C

o l a C o m

p a n y

Social Factors

● Health consciousness

● Population growthrate

● Age distribution

● Career attitudes

● Emphasis on safety

TechnologicalFactors

● R&D activity

● Automation

● Technologyincentives

● Rate of technologicalchange



Gain Over Customer Satisfaction

After completion of SWOT and PEST analysisas context The Coca-Cola Companyimplementing their strategies based ondifferent market situation as well ascustomers response. This company will set

up their tactical goals for being a strongposition in the global market place.Depending on those issue factors The Coca-Cola Company is develop a ControlFramework for their overall controlling of

management for gaining over theircustomers by providing core satisfaction.



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Strategic Management - A Case Study on Coca-Cola

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