Strategic Management in Global Context: A Case Study of Coca Cola

This report is a case study on strategic management in global context for Coca Cola. It covers market entry modes, marketing mix, and Porter's generic strategy. The report recommends licensing as the market entry mode and suggests using marketing mix to adapt to the new country. It also applies Porter's generic strategy to gain competitive advantage.

Strategic Management
in Global Context

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Recommand a business and a country and provided an internal and external explaining the
possible opportunities as well as threats.....................................................................................3
Critically assess the three modes of market entry that could be suitable to your client. Out of
three options make a recommendation with justification...........................................................6
To what extent should the selected business unit be standardised or adapted for your chosen
country.........................................................................................................................................7
Applying porter's generic strategy to explain how your client could be competitive advantage
by adopting one of the generic strategies in your recommended market....................................9
Produce a strategic business plan and critically assess how your client could measure its
success in this market and how it improve in the future...........................................................10
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Strategic planning is basically a technique or tool which is utilized by organization for
running their whole departmental and operational activities in smooth manner. Due to the
effective use of strategic management activities higher authorities is able to sustain the
productivity of employees for long time. The activities which is involved in strategic planning
are monitoring, planning, directing, organizing and controlling. Here the chosen company is
Coca cola for understanding the concept of strategic planning (Adamova, Khabib and
Teplyakova, 2020). The company was established in 1886 and this firm is dealing with wide
range of soft drink and other drinking products. The report will be covered recommend a
business and a country and provide internal and external explaining the possible opportunities as
well as threats. It also covers critically access the three modes of market entry that could be
suitable to your client and recommend with proper justification. To what extent should the
selected business unit be standardised or adopted for your chosen country, applying porter's
generic strategy to explain to how your customer could gain competitive advantage by adopting
one of the generic strategic.
TASK
Recommand a business and a country and provided an internal and external explaining the
possible opportunities as well as threats
Coca cola is a international company and they are dealing with wide range of softd drink
products but here the selected country is North Korea for expanding their business. Because in
this location they did not have any type of business. For expanding their business the
management of P&G used PESTEL and SWOT analysis which is described below -
Internal Analysis
SWOT Analysis is basically a strategic planning tool or method which is used by the
organization for identifying the strength, weakness, threat and opportunities in the activities of
business and in particular projects.
Strength -
 Utilization of talented workforce – In context to Coca cola, authority have talented and
skilled within organization which leads to sustain their performance level at high for long
time. In aspect of talented employees they are the important asset in organization.

 Use of strong infrastructure – Due to the effective utilization of strong infrastructure
employees within organization are able to accomplish their job roles and responsibilities
with safety and security.
Weakness -
 Low product diversification – It is the first drawback for this organization because due
to dealing only in drinking product customer's are getting limited day by days (Akyuz
and Gursoy, 2020).
 Absence in healthy beverages – It is one of the organization who used various types of
chemicals and unhealthy raw materials for sustaining quality in their products which is
highly dangerous for living organisms.
Opportunities -
 Improving supply chain – It means due to utilizing strong distribution channel in both
online and offline mode organization is able to deliver their products quickly to
customers in any locations.
 Expansion of organization – With help of always delivering best product to users
goodwill and profit of the company are highly increased in market. Due to gaining high
profit firm is able increase their activities in various locations.
Threat -
 Competitors – Due to facing huge competition in same segment by organization
management is not able sustain their goodwill in market for long time.
External Analysis
PESTEL Analysis is basically a method or framework which is used by organization for
monitoring and analysing the impact of macro external factors which is described below -
 Political – It is related to various rules, regulations, policies and laws of government in
various countries. In context to Coca cola, management must adapt the various policies
and rules of government in effective manner for running their whole activities smoothly.
Because due to applying all above mentioned elements effectively political stability and
productivity of organization is easily sustained in market for long time.
 Economical – It is related with wage of employees, fluctuations, interest rates, trade
restrictions etc. which produce direct impact on the performance of organization. In
context to Coca cola, due to facing high fluctuations in currency rates on regular basis of

various countries management is not able to increase the sale of their product effectively.
It means for solving this type of problem organization need to fix competitive price in
their product. Because with help of competitive price the sale of their goods and services
are easily increased within low time.
 Social – It is connected with those factors which are responsible for influencing changes
in the attitude of users which includes family, social class etc. In context to Coca cola,
management always provide their drinks to users with unique taste and flavours. Due to
providing unique products firm is able to sustain positive relations with customers for
long time.
 Technological – It refers to the effective utilization of advanced technology or digital
platforms for running the activities of organization smoothly(Ansoff and et, al., 2018). In
relation to Coca cola, management must utilize AI technology effectively for enhancing
the convenience of customer's at higher rate during the time of buying the product. The
various technology which is required to consider by authority are official portals, use of
various apps, self check-in and check-out system.
 Environmental – It is consider with those factors which effects the activities of
organization naturally and it includes temperature, food, health, pollution, population
density etc. In relation to Coca cola, management must use strong infrastructure in their
organization or in new place. Because due to using strong infrastructure the employees
of this firm is able to do their work freely and with full energy.
 Legal – In context to Coca cola, it is necessary for management that they must run their
activities and services in fair manner. Due to keeping transparency and fairness, legal
threats are highly decreased for the goodwill. Then in this way firm is able to run their
services in new place also at maximum level.
Opportunities and threats -
In aspect of opportunities use of technology and skilled employees plays the major role
for sustaining the growth of organization at maximum level for long time. In context to
technology, this makes work easy for the organization and their employees. Due to the effective
use of technology, organization is also able to serve the best quality product to customer's in long
time. But in aspect of utilization of skilled workers firm is able to identify the needs and desires

of customers quickly. The other opportunity due to the use of talented employees is that firm is
easily produced high quality product according to the needs of users within low time.
In aspect of threat facing of huge competition and legal consequences plays major role
for damaging the growth and sustainability of organization at maximum level. In aspect of
competition it is occurred only when other brands also providing same product to users at same
or in same segment. For example Pepsi is one of the competitor who provides same type of
goods to users with low which leads to create damage of goodwill of this company. In context to
legal consequences, it is important for management that they must run their activities with
fairness and according to the rules of new country. Because due to conducting illegal activities
management need to face punishment from government in the form of huge penalty.
Critically assess the three modes of market entry that could be suitable to your client. Out of
three options make a recommendation with justification
In context to Coca cola, the management need to utilize and analyse different types of market
entry modes for establishing their business in new country (North Korea) effectively. Those
marketing entry modes are described below -
 Exporting – According to this method organization is able to sell their services and
goods directly in another country(Barbosa, Castañeda-Ayarza and Ferreira, 2020). For
organization is the highly effective and well known technique for entering in new market
and in this method legal formalities and risk are very low. In context to Coca cola due to
having low legal risk company easily made huge investment in production and other
activities which leads to sustain their standard quality in their services and goods for long
time.
 Licensing – This method permits another organization in the targeted or new country for
utilizing the property of the licensor. Such type of property is usually intangible in nature
which includes production technique, patents, trademark etc. In this method licensor pays
the fees in exchange for taking the rights for utilizing the intangible property and also for
enhancing the technical support effectively. The benefit of using this method by Coca
cola is that they need very little investment for starting or running business in new place
effectively.
 Franchising – It is also a one type of market entry strategy which is need to utilize b y
Coca cola company for increasing the sale of their services and products in other

locations effectively. In this method intellectual property rights are sold to a franchisee.
But the hight of this method is that here property rights are sold to franchiser in a strict
manner that means here legal formalities are very high in the form of written agreement
After analysing above market entry methods Licensing strategy is effective and suggested
to Coca cola. Because with help of this method firm is able to increase the reach of their services
and products to all customer segments in new country effectively with low time. Due to the
effective use of licensing organization easily sustained their goodwill in the form of trade mark
effectively. The other benefit for using this method is that very little investment is required for
selling their goods in other countries and in this method activities are run in legal manner.
To what extent should the selected business unit be standardised or adapted for your chosen
country
For increasing the success rate of selected organization at maximum level management
need to analyse the marketing mix effectively (Barney, 2020). Marketing mix is basically a
method which consist of various stages and those stages are product, price, place and promotion.
In aspect of price it is defined as one type of finished good which is developed by organization
according to the needs and desires of customers. In aspect of price it is related with cost which is
fixed by organization in their product. In context to place it is considered with the area or
location which is selected by organization for running their business functions smoothly. In
aspect of promotion it is is related with in which manner the popularity of company product and
services are increased or sustained in market for long time.
Marketing mix Standardization Adaptation
Product In aspect of Coca cola, the
product of this firm is always
produced in high quality. The
products of this organization is
highly popular between young
generations and children. Due
to this it is necessary for
management that they must
target only young generations

for popularising their products
effectively in low time.
Price In context to Coca cola
management need to fix
competitive price in their
products in the selected
country. Because due to fixing
competitive pricing chances
are highly increased for
attracting the customer in large
number from all segments
(Carayannis, 2018). Due to
fixing competitive price
chances are highly increased
for increasing the profit of
organization at maximum
level.
Place In context to Coca cola, the
management decided to
establish strong infrastructure
in North Korea in the form of
establishing exclusive stores
and online facility. Due to
providing online facility
convenience are highly
increased to new and targeted
customers for buying their
product.
Promotion In relation to Coca cola
management already used

various types of promotional
strategies for sustaining
popularity of their various
products in minds of
customers for long time. With
help of advertising and other
marketing strategies the
benefits and specifications of
their goods are highly
increased in minds of
customers within short
duration.
From the above analysis it concludes that due to the effective use of marketing mix
company is able to identify the needs and desires of customers quickly. Due to the effective
identification consumers needs and requirements firm is able to sustain their performance and
productivity for long time.
Applying porter's generic strategy to explain how your client could be competitive advantage by
adopting one of the generic strategies in your recommended market
Porter's generic strategy
It is basically a framework and the founder of this strategy is Michael Porter in 1980
(D’Cruz, 2018). The main purpose for using this type of strategy by organization is to sustain
competitive advantage in market and between competitors for long time. In this method basically
three steps are involved which is described below -
 Cost leadership strategy – It is basically refer to gaining competitive advantage with
help of decreasing cost in product or in targeted. In context to Coca cola, for applying this
strategy in the selected or targeted country for selling their product effectively. It includes
effective use of technology, assess of raw materials and economies of scale. Due to the
effective use of this strategy organization is able to sustain the leadership position in
market for long time regarding their services and products.

 Focus strategy – In this stage organization is tried to encouraging the desires and wants
of consumers effectively for availing there services and products at maximum level. This
strategy is also utilizing various types of resources in optimized which leads to expand
the activities of organization effectively in targeted country. In context to Coca cola,
authority must utilize this type of strategy in effective manner for enhancing the value of
customers with help of providing desired and quality product to them.
 Differentiation strategy – According to this stage here management need to provide
product to all customer segment with unique flavours and taste which is totally different
from other brands. In relation to Coca cola it is important for them to increase innovation
in their various services and products. Because due to conducting innovation organization
is able to popularize their products at wide range in new country. The other benefit for
conducting innovation is that the sales of the product is easily increased at maximum
level within low time. Due to facilitating unique flavours and taste to customers the
overall development and growth of company are easily enhanced at maximum level for
long time.
After analysing the porter's generic strategy the strategy which is suggested to Coca cola
is differentiation strategy and it is a highly effective strategy (Dzwigol, 2020). According to
this strategy firm did not need to worry about price because it is one of the strategy who is highly
focused on young generation and children regarding their product and services. This firm already
have well established brand image in various locations which leads to sustain their profitability at
maximum level for long time. The main advantage due to using this type of strategy is that here
young generations and children are easily attracted in large number for purchasing this type of
product in any cost. Due to this reason price did not create any type of negative impact on the
performance of company for long time. In comparison with others it is a very effective strategy
in all aspects.
Produce a strategic business plan and critically assess how your client could measure its success
in this market and how it improve in the future
Executive summary In context to Coca cola it is a international company or brand
which is highly popular for their soft drink products in various
locations. Due to facilitating and producing this type of

products firm easily sustained their goodwill in market and in
the minds of young generations for long time. The company is
highly focusing on the quality and taste which is highly
important for sustaining their overall growth and development
in long term. The company was established in 1886 and this
firm is dealing with wide range of soft drink and other drinking
products.
Vision The vision of Coca cola is to craft the brands and choice of
drinks that people love, to refresh them in body and spirit. And
done in ways that create a more sustainable business and better
shared future that makes a difference in people's lives,
communities and our planet.
Mission Coca Cola's mission statement is to refresh the world in mind,
body, and spirit, to inspire moments of optimism and happiness
through our brands and actions, and to create value and make a
difference. Coca Cola is a company that focusses on leaving a
legacy wherever it operates (Henry, 2021).
Objectives  It also to increase the profit of organization in short
time.
 Due to the use of various strategies organization is able
to deliver their consumers in right location without any
type of delay.
 Effective business strategy helps to increase the reach
of their products to customers in every locations.
Strategy After analysing the above data growth and market development
strategy is suggested to this organization. Because in
comparison with others it is the highly effective strategy. Due
to the effective use of this technique company is easily made
various types of modifications in their product according to the
needs of customers. In this way the positive relationship

between company and customer are strongly sustained for long
time.
Tactics  Product: The authority of will introduce new type of
flavours and taste in their existing products which is
highly attractive and liked by customers. They also
increase the availability of their product through online
mode. In aspect of price it is defined as one type of
finished good which is developed by organization
according to the needs and desires of customers.
 Price: In relation to Coca cola management must
competitive pricing strategy in effective manner. With
help of effective competitive strategy firm is able to
increase their market share and profit at maximum
level. In this way hotel is able to maintain positive
relations with all customer segments for long time.
 Place: In context to Coca cola management must use
strong infrastructure and skilled work force in the
selected country (Hitt,Ireland and Hoskisson, 2019).
Due to use of strong infrastructure company is able to
deliver their products and services of to all customer
segments in various locations quickly. In context to
place it is considered with the area or location which is
selected by organization for running their business
functions smoothly.
 Promotion: Management must promote their new
services and products effectively with help of
advertisement in newspaper and email marketing and
using the numerous promotional techniques. But in
aspect of online advertising it is a very effective
strategy because in this strategy firm has the option to

repeat the features of their goods in several times.
Monitoring and Control For analysing the performance of employees management
utilized this method and the full form of KPI is Key
Performance Indicator. With help of this strategy activities are
done in fast manner and completed the targets of employees in
specific time period. In this way the productivity of employees
are sustained in long term. With help of KPI company easily
analysed their current position in market.

CONCLUSION
From the analysis of above information, it concludes that strategic management played
the important role for sustaining the vision, mission and objectives for long time. Due to the
effective use of strategic planning higher authority of selected organization is also able to
identify the needs and desires of customers quickly. Then in this way firm is able to maintain
positive relationship with all customer segment for long time. With effective utilization of
strategic planning company is also able to sustain their goodwill in market and in minds of
customers for long time. In this way the popularity of the company services and products are
easily sustained which leads to increase the profit margin and market share of organization at
maximum level within low time. The report will covered PESTEL analysis, SWOT analysis and
marketing mix. It also covered produce a strategic business plan and critically assess how your
client could measure its success in this market.

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