Coca-Cola's Strategic Management: An Analysis of Global Strategy

This assignment provides a comprehensive analysis of Coca-Cola's strategic management approach, focusing on its long-term international strategic objectives and strategies. It includes a PESTLE analysis to evaluate the external environment, examining political, economic, social, technological, legal, and environmental factors impacting the company. Additionally, a SWOT analysis identifies Coca-Cola's internal strengths and weaknesses, as well as external opportunities and threats. The assignment reviews the implementation and success of Coca-Cola's international operating strategies, emphasizing the importance of communication, cultural understanding, and global availability. It also includes a case study evaluating IMI's business strategy and the role of knowledge and skills in achieving competitive advantage. This document, contributed to Desklib, offers valuable insights for students studying strategic management and international business.

Strategic Management
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INTRODUCTION...........................................................................................................................3
Assessment Task: One.....................................................................................................................3
Assessment task two: CASE STUDY..............................................................................................9
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
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INTRODUCTION
Strategic management is a process of defining goals, setting process and objectives in order
to enhance organisation competitiveness in industry. Strategic management often include internal
organisation analysis, strategy evaluation and strategy execution (Abutabenjeh, 2021). It is an
important as it offer direction to an organisation in order to develop plans as well as policies to
design organisational objectives and then allocate resources to implement the plan. Main aim
behind this is to gain competitive advantage in industry. With the help of taking advantage of
strategic management organisation can develop future oriented goals which have greater impact
upon long term prosperity of company. With the help of managing business activities and
operations organisation can offer support to management and employees to accomplish
organisational goals. It is a basis for management control as well as evaluation which ensure top
executives to have unified opinion on strategic actions and issues.
Present report is divided into assessment task in which first assessment is an essay of
organisation long term international strategic objective and stages, internal and external
operating environment of company and review of implementation of organisation international
operating strategy. While second assessment of this report is a case study evaluation which
include the purpose of business strategy and implementation of niche market strategy with
certain recommendation.
Assessment Task: One
Company’s long term international strategic objectives and strategies
Coca-Cola is a world's leading provider of branded beverage solution and engage in the
function of offering production services to consumers with the highest quality products and
processes. Coca-Cola pursues an international strategy in which they are open for differences in
packaging and distribution. Along with this, Coca-Cola international strategy is localised by
specific geographic market plan as per the local laws, local needs and more. Furthermore, it has
been identified that long-term international strategic strategy of Coca Cola is one brand strategy
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in which company uses universal story telling as well as every day movements in order to make
connection with consumers around the globe (Agha and Dixon, 2021). Along with this, under
one band strategy of Coca Cola is committed to choose in which they allow customers to choose
which ever Coca Cola suits their diet, lifestyle and taste.
Analyse its internal and external operating environment
External analysis
Pestel analysis is a framework to evaluate key factors which include political, economic,
sociological, technological, legal and environmental influence a company faces from external
business environment. It is a strategic tool through which organisation can anticipate future
business threats and can further undertake significant actions to minimise or avoid their impact
upon organisation profitability and growth. Mentioned below external environment analysis of
Coca Cola is done.
PESTLE Analysis:
Political Factor:
Coca-Cola is operating its business services in beverage industrial sector which comes
under the direct regulation of FDA. It indicates that respective company have direct impact by
the regulation and laws on the food products which may vary from one country to another
(Almeida Costa and Zemsky, 2021). It has been evaluated that there are number of changes in
laws and legislation in context of internal marketing, accounting, tax, changes in labour laws
which can affect Coca Cola in a number of ways. For this it is essential for organisation to
adhere all the local and international health and quality standards of a country in order to operate
business services in effective manner.
Economical Factor:
Coca-Cola offers its products and services around 200 of countries. All these countries
have different tastes, customs, culture and desires. This makes Coca-Cola to update and change
the manner in which they handle their product by creating new flavours in order to satisfy
consumers. Along with this it has been identified that due to the outbreak of covid-19 economics
around the world are impacted and demand of consumers have duly shifted from sugary drinks to
low calorie drinks or healthy beverage options (Azimovna, 2021). However, it has been
underlined that respective organisation dominate the market with 50% market share in
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carbonated beverage drink. In this it is essential for company to emphasize upon zero sugar
options in order to fulfil the expected rise in future those who are becoming more health
conscious. Along with this, new trade agreement after Brexit will also impact economically on
Coca Cola. In this it is essential for company to emphasize upon foreign exchange rate
fluctuations and global financial crisis in order to perform economically.
Social Factor:
Coca-Cola has stronger impact upon society, as this organisation always comes up with
social campaigns in order to establish relationship with consumers. However, after covid-19
people are more inclined towards healthy drink over flavoured drink options (Batie and
Agyekum, 2021). Along with this cultural trend in various global locations have impacted Coca-
Cola in which they are required to update their products in majorities of countries, as to swap
sugary drinks for healthy option in order to ensure stability in market.
Technological Factor:
Introduction and impact of artificial intelligence is affected every industrial sector around
the globe. Along that this there is stiff competition between companies in beverage industry with
the increase in digital transformation and social media technology. Along with this, impact of
online marketing also affected Coca Cola in which they are require to be innovation driven in
order to invite consumers around the globe (Brahmbhatt, 2021). In this with the help of social
networking technology to stay fresh, young and current Coca Cola can influence preferences and
taste of consumers.
Legal Factor:
Organisations operating in food or beverage industry are required to efficiently
emphasize upon implementing all the laws and rights related to their business including past as
well as future products with patent process, in order to legally perform their business operations.
Coca-Cola performs their business on many international platforms (Cole, 2021). This makes
organisation to emphasize upon wage rate, appropriate treatment of employees, implementation
of all measures to avoid racial discrimination and more, in order to conduct the business
operations ethically.
Environmental Factor:
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There are number of challenges posed by climate change and ever-growing plastic and
can waste. Governments around the globe have implemented compulsory environmental laws
and practices which is essential for company to abide. It is essential for Coca Cola to take
necessary steps in order to reduce its carbon footprint and undertake waste management process,
renewable energy in order to reduce impact of their business operations upon environment
(Giachetti and Dagnino, 2021). By adhering all the environmental laws of a country on
international platform Coca-Cola can enhance their goodwill and market segment and can assure
your higher profitability.
Internal analysis
SWOT analysis
SWOT analysis is a strategic planning technique which an organisation undertakes in
order to identify its strengths, weakness, opportunities and threat in a business environment
(Greve, 2021). With the help of this tool Coca-Cola can evaluate its internal strength and
weaknesses and can take essential steps in order to overcome them to gain future growth
opportunities.
STRENGTH WEAKNESSES
 Coca-Cola has stronger brand identity
and global recognition due to high
consumer loyalty towards organisation
products and services.
 Respective company have stronger
distribution network via bottling
franchise, higher marketing value and
good marketing strategy which help
them to conduct business operations in
effective manner (Walia, 2021).
 The major weakness of Coca-Cola is
that they are less concerned towards
healthy options comparatively to other
competitors in market segment.
 Effective water management and no
product diversification is also one of
the major weaknesses of Coca Cola
which is affecting its profitability in
industry.
 As compared to other rivals in
industry Coca Cola invest less on
social media marketing which affects
their ability to attract consumers
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around the globe.
THREATS OPPORTUNITIES
 Coca-Cola is facing direct competition
with Pepsi, as this organisation is
heavily investing on digital media and
social media promotion which benefits
this organisation to enhance its
competitiveness in industry.
 After covid-19 large number of
consumers around the globe are
inclined towards more healthier
options which is increasing threat for
Coca Cola.
 Increase in global demand of healthy
beverage drinks open many
opportunities for Coca Cola in which
they by emphasising upon healthier
options can grab international market
shares and can influence database of
consumers.
 Coca-Cola has significant opportunity
to increase its presence in developing
Nations with the help of enhancing its
product diversification by offering
healthier option to consumers
 With the help of social media and
digital marketing Coca Cola can
enhance worldwide consumer base in
an effective manner.
Review the implementation and success of the company’s international operating strategies
It is essential for managers of multinational organisation to efficiently manage business
on international platforms with number of knowledge and skills. It is important for managers to
have proper understanding of different laws and regulation in the countries in which organisation
operates, as to efficiently understand customs, values and laws which differs from every society
in different countries (Jallow, 2021). In context with Coca Cola with the help of communication
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international management activities is being successfully operating by this company. For Coca-
Cola communication plays essential role which contributes in overall business growth and
success. In this international manager of respective company understand variation in
communication in different process and understand culture of different countries in order to hire
employees accordingly. Being an international company Coca-Cola have international strategy in
order to be successful in international market. It has been evaluated that Coca-Cola in order to
conduct business on international platforms implemented one brand strategy in which
organisation take use of universal sorry telling and everyday movement in order to connect with
consumers. Coca Cola international managers evaluate consumer market of every international
market in order to offer their services and products as per their taste, life cycle and diet. It has
been identified that respective company is operating its business functioning in highly
competitive as well as dynamic beverage industry in which company encounter with direct or
indirect competitors which is affecting organisation competitive growth. In this with the help of
evaluating consumer segment of every international market segment organisation offer their
products and services as per their taste, preference and lifestyle. This is one of the most
important reason of the growth of this organisation, as it allows company to successfully assure
international expansion in international market and ensure well renowned growth (Kumar and
Gupta, 2021). It has been identified that international operating strategy of Coca Cola is global
availability, communication across culture, accessing the environment and interdependence
social responsibility and ethics. All these strategies benefits Coca Cola in an effective manner in
which company corporate successfully around. With global availability strategies organisation
ensure that their products and services are available on global platform with an easy access.
Along with this, Coca-Cola ensures that strong communication prevails across culture on
different international platforms. This strategy helps Coca-Cola to overcome the communication
barrier which helps in their success in international markets. With the help of accessing the
environment strategy Coca-Cola evaluate political environment economic environment
technological environment and social environment of a country (McGee and Channon, 2021).
This helps organisation to offer the production services accordingly. It has been identified that
with the help of all these international operating strategy Coca-Cola ensures sure success in
global market.
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Assessment task two: CASE STUDY
Evaluate the purpose of IMI’s business strategy, and critically analyse how managing knowledge
and skills contribute its competitive advantage.
From the analysis of case study evaluation of IMI’s business strategy, it has been
identified that organisation undertake various measures in order to be highly competitive in
market. In order to conduct business operations in global market it is essential for company to
undertake advantage of the technology system and knowledge efficiently in order to satisfy the
needs and demands of consumers in a well-defined and effective manner. In terms with IMI, it it
is a global engineering group and have various engineering specialist those who are engaged in
offering higher satisfaction to consumers around the world. With the help of higher expertise
innovation and global service all these aspects facilitated IMI to achieve competitive advantage
in industry. Furthermore, it has been underlined that this organisation uses combination of
knowledge and skills of its people in order to understand the actual needs and demands of
consumer (Mitev, 2021). This help IMI to successfully operate their business services and offers
highest satisfaction to consumers. From the case study evaluation, it has been evaluated that IMI
have long history of working in fluid and valve engineering technology. For this company under
take advantage of expertise, design and further develop products in order to make control of the
flow of liquid or gas in number of markets. With help of emphasizing upon reducing carbon
emission and improving energy efficiency respective organisation offer value for consumers.
Strategies are mainly defined as long-term plans that an organisation undertake in order to fulfil
overall objectives and goals. Main purpose of IMI business strategy is to achieve market
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leadership in the global niche market in which they offer their services and products. It has been
identified that niche market is mainly small and have specialised segment of a market in which
there are few competing companies. In this to be successful in this industry IMI undertaken
different strategies in which they produce new products by acquiring other companies and are
reducing cost. In addition to this other strategy on which IMI focuses is to enhance business
niche market and significantly accelerate growth by making investments in new products and
emerging markets. Furthermore, it has been identified that organisation also have strategy in
terms of maintaining high operating markets and utilising cost of manufacturing within its supply
chain. In this industry there are few competitors those who provide specialist knowledge
engineering solution that IMI offers. This enhances competitiveness of this organisation in
market for which organisation strategically aim towards developing high quality products as well
as services in order to satisfy a consumer. Furthermore, IMI strategy emphasize upon three
essential aspects which is its engineering skills in fluid technology and innovation, exposure to
market which benefits organisation long term structure growth trends such as globalisation and
market leading position in attitude in the market. With the help of all these strategies IMI aim
towards achieving clear market leadership, greater productivity, higher profit market and more
opportunities to meet global growth and trends.
From the analysis of IMI business strategy, it has been identified that the main purpose of
organisation strategy is to be market leader have higher profit margin and meet global trends
with greater product differentiation. Along with this, another strategy of IMI aims towards
meeting long term consumer needs which allow organisation to ensure or higher profit margin in
industry. In addition to this it has been underlined that with these strategies IMI aim towards
creating a barrier to entry for other competitors (Shanjabin and Oyshi, 2021). This strategy of
IMI is defined as engineering advantage. Along with this, with the help of taking people
knowledge and skill IMI have significant contribution in its competitive advantages as with the
help of engineering specialist and motivated workforce IM evaluate actual needs and demands of
consumers and market segment, with the help of analysis of external drivers of growth.
Furthermore, from this case study analysis it has been determined that IMI people are the key
factor those who are helping in delivering its strategy in accomplishing core objective of
business. With the help of entrepreneurial spirits IMI people with new and creative ways satisfy
consumers and add value for business. For this IMI continuously support ongoing development
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of its individual by offering training to employees in order to accomplish business goals in
effective manner. Thus, this indicates that by managing knowledge and skills of individuals IMI
aim towards ensuring higher profitability in respective market in a well-defined and effective
manner. All IMI business strategies is being successfully executed with the contribution of
individual skills and knowledge which is allowing IMI to serve consumers efficiently.
Critically evaluate the implementation of IMI’s niche market strategy in the light of its
competitive advantage and external environment, and recommend other three strategic choices
by which IMI might differentiate its business within global markets to achieve and sustain long
term market leadership objectives.
IMI is operating its business functioning with the help of taking advantage of knowledge
system and technologies in global market in order to successfully fulfil consumer needs and
demands and utilising expertise and knowledge IMI achieve higher competitive advantage in
industry. Along with this, IMI with the help of different engineering specialist is recognised for
its worldwide expertise innovation and global service in which they offer engineering solution in
over 50 countries as to fulfil needs of consumers (Shaver, 2021). It has been identified that the
implementation of niche market strategy allows IMI to gain competitive advantages which
comes from the combination of skills and knowledge of its people in order to have long term
growth plan. IMI have their aim and objective in order to be market leader in the global niche
market in which they serve organisation and take use of various strategies such as development
of new products growth by acquiring other companies on meeting reduction in cost and
emphasize upon in handling. Along with this, IMI aim towards enhancing their coat by investing
new product in emerging market segment strategies. This will facilitate IMI to enhance their
competitive advantages in industry. It has been identified that respective organisation is
operating in a business environment with small number of competitors. Thus, skills, knowledge,
innovation and creativity facilitate organisation towards ensuring higher competitive advantages.
Along with it has been identified from IMI external environment that there is less competition
prevailing in market which is increasing IMI competitiveness in industry. However, it is essential
for organisation to effectively respond towards the external drivers which can affect organisation
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growth and productivity. In context with IMI, it has been identified that in United Kingdom
aging population is significantly affecting availability of talent. In this IMI can get affected in
terms of this number experts and talented individual who can contribute in organisational
objectives. Furthermore, it has been analysed from external environment analysis of IMI that
labour standards and legislation such as health and safety is significantly increasing in terms of
training needs which is enhancing cost of operations. Furthermore, in terms of economic factors
it has been evaluated that the current global recession is causing downturn in demand which can
affect IMI overall sales and profitability (Susilo, 2021). In context with political factor, it has
been evaluated that IMI can get affected due to government initiative in which business are
required to effectively address climate change. In this time IMI is required to undertake different
type of strategies to decrease negative climate impact. Furthermore, in terms which technology it
has been identified that internet makes easier for consumers to compare value of products and
services. All these external drivers have tendency to impact upon IMI future growth strategies. In
this it is essential for our organisation to effectively shape the business direction towards growth.
From the analysis of IMA case study, it has been identified that organisation undertake
powerful combination of skills, knowledge and market insight in order to develop innovative
solution to satisfy consumer needs and create competitive advantages in industry. With the
analysis of organisation external drivers, it has been evaluated that, there are a number of factors
which is affecting IMI future growth and development strategy. In this there are certain
recommendation being offered to companies through which they can differentiate their business
within global market and can achieve sustainable long-term market leadership objective. In this it
is recommended to IMI to undertake advantage of developing products in order to provide clean
energy as well as help organisation to reduce their energy consumption. This is an effective
strategy through which IMI can emphasise upon climate change and reduce negative impact of
organisation efficiently. Furthermore, organisation is also recommended to manage resources
such as energy and water in order to use them as to assure their sustainability. With the help of
this company can emphasise upon resource scarcity. In this it recommended to company to
develop a wide range of engineering solutions in order to manage use of waste energy and water.
IMI with the help of innovating engineering can control environment waste in number of ways
which will significantly help them to ensure international expansion. It has been identified that
aging population is also the major factor which is affecting IMI. In this it is recommended to IMI
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