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Cola Company
INTRODUCTION
A global perspective is a matter of survival for businesses. Strategic
management is the process of specifying an organization's objectives,
developing policies and plans to achieve these objectives, and
allocating resources so as to implement the plans. 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. The company operates in more than 200
countries. Coca-Cola Enterprises is the world's largest marketer,
producer and distributor of Coca-Cola products. It operates in 46 U.S.
states and Canada, and is the exclusive Coca-Cola bottler for all of
Belgium, continental France, Great Britain, Luxembourg, Monaco and
the Netherlands. Coca-Cola is the non alcoholic bottled beverages.
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To know about the strategic management issues of multinational
companies
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 identify and characterize the levels the international
management strategies
To know about the Coca-Cola Company’s strategies management
process.
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strategy is often referred to as strategic planning. Strategic
Management is the study of function and responsibilities of senior
management.
Goal-setting
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Analysis
Strategy Formulation
Strategy Implementation
Strategy Monitoring
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SIGNIFICANCE OF STRATEGIC MANAGEMENT
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Management To makes forward s
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b. The concept of satisfying.
c. The concept of instrumentalism.
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provide guidance. They are the link between the company and the
environment.
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Role of Middle Level Managers: They form an important link in
strategizing & Implementation. They are not actively involved in
formulation of Strategies and they are developed to be the future
management.
COMPANY OVERVIEW
HISTORY OF COCA-COLA
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Coca-Cola was first introduced by John Smyth Pemberton, a
pharmacist, in the year 1886 in Atlanta, Georgia when he invented
caramel-colored syrup in a three-legged brass kettle in his backyard.
He first “distributed” the product by carrying it in a jug down the street
to Jacob’s Pharmacy and customers bought the drink for five cents at
the soda fountain. Carbonated water was teamed with the new syrup,
whether by accident or otherwise, producing a drink that was
proclaimed “delicious and refreshing”, a theme that continues to echo
today wherever Coca-Cola is enjoyed.
By the year 1886, sales of Coca-Cola averaged nine drinks per day.
The first year, Dr. Pemberton sold 25 gallons of syrup, shipped in
bright red wooden kegs. Red has been a distinctive color associated
with the soft drink ever since. For his efforts, Dr. Pemberton grossed
$50 and spent $73.96 on advertising.
By the year 1891, Mr. Candler proceeded to buy additional rights and
acquire complete ownership and control of the Coca-Cola business.
Within four years, his merchandising flair had helped expand
consumption of Coca-Cola to every state and territory after which he
liquidated his pharmaceutical business and focused his full attention
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on the soft drink. With his brother, John S. Candler, John Pemberton’s
former partner Frank Robinson and two other associates, Mr. Candler
formed a Georgia corporation named the Coca-Cola Company. The
trademark “Coca-Cola,” used in the marketplace since 1886, was
registered in the United States Patent Office on January 31, 1893.
HISTORY OF BOTTLING
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In 1894 the Coca-Cola Company is in a candy store in Vicksburg,
Mississippi, brisk sales of the new fountain beverage called Coca-Cola
impressed the store's owner, Joseph A. Biedenharn. He began bottling
Coca-Cola to sell, using a common glass bottle called a Hutchinson.
Biedenharn sent a case to Asa Griggs Candler, who owned the
Company. Candler thanked him but took no action. One of his nephews
already had urged that Coca-Cola be bottled, but Candler focused on
fountain sales.
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• Consumers as a superior beverage experience
• Consumers as an opportunity to grow profits through the use of
finished drinks
• Bottlers as an opportunity to grow profits in volumes
• Bottlers as a trademark enhancement and positive economic value
added
• Suppliers as an opportunity to make reasonable profits when
creating real value-added in an environment of system-wide team
work, flexible business system and continuous improvement
• Indian society in the form of a contribution to economic and social
development.
• Refresh the World... In body, mind, and spirit
• Inspire Moments of Optimism... Through our brands and our actions
• Create Value and Make a Difference... Everywhere we engage.
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Partners: Nurturing a winning network of customers and suppliers,
together we create mutual, enduring value.
QUALITY POLICY
CEO
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BRANDS OF COCA-COLA
Energy Drinks
Juices/Juice Drinks
Soft Drinks
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recent introductions, soft drinks from The Coca-Cola Company are both
icons and innovators in the beverage industry.
Sports Drinks
Water
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Other Drinks
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Factors affecting the strategic management issues of domestic and
international operations of Coca-Cola Company.
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Factors Affecting International
Strategic Management
Multi-domestic Strategy
Global Strategy
Transnational Strategy
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The transnational corporation attempts to combine the benefits of
global scale efficiencies with the benefits of local responsiveness.
Home Multi-domestic
Replication Strategy
Strategy
√
Transnational
Global Strategy Strategy
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Functional Level Strategy
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• Brand Promotion
• Attractive products selection
• Look and feel 8
• Provision of multimedia product, catalogue pages
• Personal attention
• Community relationships
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Strategy Formulation
Strategy Implementation
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the market it always ready to cope with change. Different government
policy, economic condition, political situation, barrier and ban are
associated with different market.
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Through this model, we see that the company is first take the response
of customers and consumers through market survey. Then the
management accumulates the best quality resources for making their
products. This process includes-
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• Promotes professional and flexible work environment, teamwork
and innovation through employee participation and process
ownership.
SWOT ANALYSIS
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The Coca-Cola Company (Coca-Cola) is a leading manufacturer,
distributor and marketer of Non-alcoholic beverage concentrates and
syrups, in the world. Coca-Cola has a strong brand name and brand
portfolio. Business-Week and Inter brand, a branding consultancy,
recognize Coca-Cola as one of the leading brands in their top 100
global brands ranking in 2008. The Business Week-Interbred valued
Coca-Cola at $67,000 million in 2008. Coca-Cola ranks well ahead of
its close competitor Pepsi which has a ranking of 22 having a brand
value of $12,690 million The Company’s strong brand value facilitates
customer recall and allows Coca-Cola to penetrate markets. However,
the company is threatened by intense competition which could have
an adverse impact on the company’s market share.
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STRENGTHS
WEAKNESSES
Low Export Levels: The brands produced by the company are brands
produced worldwide thereby making the export levels very low. In
India, there exists a major controversy concerning pesticides and other
harmful chemicals in bottled products including Coca-Cola.
OPPORTUNITIES
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Limca. The company appointed 50,000 new outlets in the first two
months of this year, as part of its plans to cover one lakh outlets for
the coming summer season and this also covered 3,500 new villages.
In Bangalore, Coca-Cola amounts for 74% of the beverage market.
THREATS
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capacity needs to be increased, the license poses a problem.
Renewing or updating a license every now and then is difficult.
Therefore, this can limit the growth of the Company and pose
problems.
• Political
• Economic
• Social
• Technological
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Environmental Scan
/
\
External Analysis
Internal Analysis
/ \
Macro environment
Microenvironment
P.E.S.T.
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Coca-Cola Company’s perform/ operate their business unit in different country
based on the developing of the PEST analysis. The PEST analysis of Coca-Cola
Company is as following—
Political Factors
• tax policy
• employment laws
• environmental regulations
• trade restrictions and tariffs
• political stability
Economic Factors
• economic growth
• interest rates
• exchange rates
• inflation rate
Social Factors
Social factors include the demographic and cultural aspects of the external macro
environment. These factors affect customer needs and the size of potential
markets. Some social factors include:
• health consciousness
• population growth rate
• age distribution
• career attitudes
• emphasis on safety
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Technological Factors
• R&D activity
• automation
• technology incentives
• rate of technological change
The basic objective of set up this strategic and tactical plan and goals
is to exploit the firm’s strengths and environmental opportunities,
neutralize external threats and overcome the firm’s weakness.
Depending on those vital factors this Coca-Cola Company is develop a
Control Framework for their overall controlling of management.
Through this framework managerial and organizational systems are
observed, monitor, and processed.
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Findings
By preparing this report about the strategic management issues of
multinational companies (MNCS), the case study on the Coca-Cola
Company, we get some important things. These findings are as follows
—
CONCLUSION
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REFERENCES
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Annual Report of Coca-Cola Company (2005-2009)
www.coke/homeContent.asp.htm
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