Strategic Management Report: A Case Study on Coca-Cola's Strategies

This report provides a comprehensive analysis of Coca-Cola's strategic management, exploring its goals, objectives, and initiatives. It delves into the company's competitive advantages, including branding, cost leadership, and product diversification. The report examines Coca-Cola's global m...Read More

Strategic management

Contents
INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
A case study on Coca-Cola......................................................................................................................3
CONCLUSION...........................................................................................................................................6
REFERENCES............................................................................................................................................7

INTRODUCTION
Strategic management is defined as the concept of formulating and implementing
different goals and objectives as well as initiatives been taken on behalf of the sponsors. It
involves two elements which is strategic thinking and strategic planning. It is a constant
procedure which analyses and controls the business organization. There are different bases for
strategic management like competitive advantage, core competence, corporate strategy and many
more. It is mainly concerned with the aspect of initiating new objectives, implementing new
strategies and correct measures in order to achieve success (Tan, 2021). There are various tactics
which a company applies so that they can become better in comparison with other competitors.
Every business organization formulates some kind of generates some goals so on the basis of this
plans long term decisions. The below report is based on Coca-Cola. It is a carbonated soft drink
which was manufactured by the Coca-Cola Company. They provide different cola drinks like
diet coke, Caffeine free Coca-Cola and many more. The report is based on long term planning
decisions and strategic choice in relation to the competitive advantage.
MAIN BODY
A case study on Coca-Cola
In current world the biggest challenge which each business enterprise is facing is the
effect of globalization as it becomes difficult for them to examine numerous internationalization
strategies. In context with Coca-Cola they have achieved high level of growth and are one of the
most recognized brands among others. On the basis of international differentiation strategy it
refers to a marketing technique in order to implement a strong identity in a particular market.
While doing successful branding the main aim is associated with conveying the message,
motivate the consumer and initiating user loyalty. In accordance with the differentiation strategy
which refers to cost leadership the goal is to become lowest cost producer. Coca-Cola uses both
type of strategies right from branding and cost leadership (Sheikh and et.al, 2021). The company
has done high level of promotion and enlarged the sales. Though the company has successfully
done marketing but it has been analyzed that in America they still prefer Pepsi rather than Coke.
So, in order to solve these problems the company also made certain planning decisions in order
to achieve success.
One of the strategies which company made was that they can enhance their brand with
the help of using defensive strategies through which the company preserve all the existing
customers and properly managing and maintaining the purchasing frequency. Earlier it
introduced a new recipe for the existing products which eventually changed the people’s taste.
Though they attracted some new customers but at the same point of time current consumers were
not happy through that taste. The main thing which they do is that they do investment not only in
the element of brand recognition but also in charity patronages, quality of the products and many
more. It has been evaluated that company faced many problems while entering the markets of

Hong Kong and Shanghai. So, to solve such problems they always focused on only one concept
that is their quality. Coca-Cola is highly recognized brand and the reason behind this is their
emotional excellence which helped them in enabling a better reputed brand in the international
market.
On the basis of international marketing strategy Coca-Cola also made up certain planning
decisions in order to achieve long term success. It is significant for the business enterprise that
they properly understand about the phase of globalization as through this high level of
competition is there in international markets (Onyama, 2021). This marketing approach is a very
crucial factor because it represents a competitive advantage for the company. It has been
examined that there are two concepts and these are global and international markets. In
accordance with the aspect of global marketing there is a standardized way to sell out all the
products and services while on the other hand in international market it is in relation with
numerous target markets instead of focusing on one single market.
Coca-Cola also made different decisions regarding their marketing tactics. The very first
approach which they applied was “Think local, act local”. While implementing this approach in
China it was considered effective and the company achieved 8 % of the increase and besides this
they also give advertising operations to all executives which are really impressive. Another long
term planning was to present themselves as a company of Peruvians rather than an American
enterprise. With the help of this it became easy for them to enhance the penetration of all
marketing efforts right from cornerstones to certain sporting events. It started serving their soft
drink with every meal in order to do promotion and enlarge overall sales.
The best approach which was considered by the company was that they start doing
marketing of their soft drinks with food so that people get to know about the brand. It was been
analyzed that in certain situations company faced issues due to which gaps was getting arise so
for this that did planning and made a decision to introduce some new products and build up
customer satisfaction (Mohammadpour and et.al, 2021). On the basis of this the company
introduced a Diet coke which was mainly for middle aged women, Coke Zero for all young
adults and so on. Coca-Cola approach is named as glocal because it comprises of both earlier
strategies. With the help of this it became a unique brand and followed all the local practices
which ultimately helped them in enhancing the brand image. The business organization chose
different channels of distribution in all foreign countries. For the chosen company the biggest
market for them is China and US. In United States the company implemented a mature business
model which involves distribution. Through this they subcontracted its production to all the
distribution companies. On the other hand in China the company established their largest market
as now they have full control over them and has good distribution system.
It is significant for organizations to apply an international operating mode in order to
achieve goals and objectives. So, they can use both equity as well as non-equity arrangements. In
Coca-Cola also they applied both the strategies. In international markets there are two main

things which are considered is management approaches and labor relation strategies. The main
reason behind the company success is that it initiated geocentric approach which is a difficult
strategy because there are lot of cultural differences but Coca-Cola deal with all obstacles in an
efficient way with the help of creating various flexible structures and also by valuing
international assignments and gave exposure to diverse cultures (Mastroeni, Mittra and Tait,
2021). In context with the phase of staffing approach they need to analyze all their labor force. In
context with Coca-Cola they were on constant reach towards growth and success and involved
professional staff members. In order to earn competitive advantage the enterprise also secured
them from detrimental labor relations and effectively made long planning decisions. In
accordance with product diversification strategy it means to do certain alteration in the existing
product and expand the potential level.
Both product development and product diversification is a different concept. It is mainly
done with the help of doing brand extensions. In the phase of product diversification there are
some difficulties also that are associated with their implementation. In context with Coca Cola
they sell and distribute non-alcoholic beverages to consumers across the world. The company
made different decisions and strategies in order to become successful. In comparison with other
competitors they used to offer different categories of drinks like waters, sparkling beverages and
still beverages (Bickley and et.al, 2021). For every business enterprise it is significant to offer
variety of things so that they can attract maximum number of customers and enhance brand
image. Coca Cola offers various refreshment products which are very much enjoyable by
consumers and also help them in maintaining good level of hydration. Recently a new product
got introduced by them which was Coca Cola zero and is one of the most successful drinks by
them. It plans to introduce new beverages like in the form of Power aide. With the help of this
they are growing their entire share and to compete against other products and achieve large level
of market share.
Coca-Cola has various other strengths too through which it becomes easy for them to
achieve competitive advantage. One of them is brand loyalty. Due to the most popular brand
effective loyalty is there. There are many planning decisions which are made by the company
and for them were that it wants to become the biggest anchor bottler in whole world. They use
multi-domestic strategies in formulating the business. On the basis of this they made a planning
decision that they would be independently produce their products in different countries based on
certain environmental factors. The main reason behind this approach was that domestic
corporations are considered more responsive.
While doing international business companies need to choose different modes of
operations so that they can enhance their growth level and with respect to Coca-Cola they
performed it effectively (Hardjono and Safitri, 2021). By looking at the economy of China it has
high growth rate so for the chosen company it was a great marketplace for them. It pursued a
geographic diversification strategy through which they entered into multiple markets and
established effective brand image. Before starting their operation facilities in other countries also

they planned out how to properly staff their facilities. While making any kind of decision and
strategy it is necessary to motivate employees so that they can give their opinions and thoughts.
Coca-Cola is the most successful brand and has established a positive image across whole
world. While expanding the market in international countries one enterprise cannot rely on same
approach. They need to develop certain new concepts also and implement new
tactics( Chakrabarti and et.al, 2021). So, on the basis of this the organization applied the phase of
product diversification. Through this many variations were being done in their soft drinks. It
attracted mainly kids and young generation people because they always like to taste different
flavors.
CONCLUSION
From the above case study it has been concluded that for a business corporation strategic
management is a main concept to focus on. Each organization formulates their own goals and
objectives so on the basis of this they need to apply certain strategies. There are different
approaches which a company accepts like ethnocentric, geocentric and many more. While
expanding the company into international market it becomes essential as well as crucial to use
different tactics in order to become successful. While evaluating the long term planning
decisions of Coca-Cola, it is one of the most prosperous brands and they always made efficient
level of plans to apply in the company. It is also been determined that both cost leadership and
branding is used by them which ultimately enables them to attract maximum number of
customers.

REFERENCES
Books and Journals
Bickley, S.J., and et.al, 2021. Quantum-sapiens: the quantum bases for human expertise,
knowledge, and problem-solving. Technology Analysis & Strategic Management, pp.1-13.
Chakrabarti, P., and et.al, 2021. Analysis of Strategic Market Management in Light of Stochastic
Processes, Recurrence Relation, Abelian Group and Expectation. In Advances in Artificial
Intelligence and Data Engineering (pp. 701-710). Springer, Singapore.
Hardjono, B.S. and Safitri, Y., 2021. Descriptive Analysis Strategic Planning SMKN 1 Blora to
Regional Public Service Agency (BLUD). Cometra Education, 1(1).
Mastroeni, M., Mittra, J. and Tait, J., 2021. Political influences on biotechnology-based
innovation for European agriculture: risk-assessment and risk management. Technology Analysis
& Strategic Management, 33(3), pp.271-282.
Mohammadpour, S., and et.al, 2021. Identification and analysis of the strategic drivers of
entrepreneurial university using by Cross Impact Analysis approach. Iranian Journal of
Engineering Education.
Onyama, D.N., 2021. Profitability, Productivity, and Sustainability: Organizational Behavior
and Strategic Alignment. Routledge.
Sheikh, M.F., and et.al, 2021. Corporate social responsibility and dividend policy: a strategic
choice in family firms. Journal of Family Business Management.
Tan, G.N.D., 2021. A Business-Model Approach on Strategic Flexibility of Firms in a Shifting
Value Chain: The Case of Coffee Processors in Amadeo and Silang, Cavite, Philippines. Global
Journal of Flexible Systems Management, 22(1), pp.17-28.