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Strategic Management Issues of Multinational Companies(MNCs): A Case Study on Coca-Cola Company
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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.
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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.
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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
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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
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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?
8/8/2019 Strategic Management - A Case Study on Coca-Cola
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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.
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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
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● Market research
● Advertising
● Money
● Financing
● Transportations
● Control
● Labor relations
● Language
● Culture
● Politics
● Economic
● Governmental
interference● Labor
Factors Affecting The strategic Issues ofCoca-Cola Company
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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
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Corporate Level of Strategies
Marketing
Strategies
Operating
Strategies
H & D
Strategies
Financial
Strategies
Reward
Strategies
Corporate Level of Strategies of Coca-Cola Company
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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.
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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.
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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.
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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
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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
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Environmental
Scan
ExternalAnalysis
MacroEnvironment
P.E.S.T.
MicroEnvironment
InternalAnalysis
PEST Analysis of Coca-Cola Company
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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
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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
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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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