Strategic Management: Coca-Cola's Global Objectives and Strategies

This essay provides a comprehensive analysis of Coca-Cola's strategic management, focusing on its long-term international objectives and strategies. It explores the company's internal environment, utilizing SWOT analysis to identify strengths, weaknesses, opportunities, and threats, and examines the external environment through PESTEL analysis, considering political, economic, social, technological, environmental, and legal factors. The essay further discusses the implementation and success of Coca-Cola's strategies, highlighting the importance of market research, marketing strategies, and market segmentation in achieving competitive advantage and expanding its global presence. Concluding that strategic management is crucial for companies to navigate dynamic environments and capitalize on opportunities, the essay underscores Coca-Cola's success in operating in approximately 200 countries with over 500 brands by adapting strategies to local needs while maintaining global standards.

Strategic Management

Table of Contents
INTRODUCTION...........................................................................................................................1
ESSAY.............................................................................................................................................1
Long term international strategic objectives.....................................................................1
Long term international strategies......................................................................................2
Internal environment...........................................................................................................3
External environment..........................................................................................................4
Implementation and success of strategies...........................................................................5
CONCLUSION................................................................................................................................5
References:.......................................................................................................................................7
Books and Journals.................................................................................................................7

INTRODUCTION
Strategic management can be defined as the process in which different strategies and processes
are carried out so as to achieve the objectives of a company and they are also achieving the
competitive advantage in the market(Putz, 2019). Competitive advantage of a company can be
achieved when they are having higher profitability rate than the others. Every company develops
some or the other strategies so that they can be able to achieve the things which they have
planned and without proper strategies it cannot be made possible. Strategic management is
basically the planning which is done by every business so that they face all the contingencies
which has to be tackled by them. This management is used by both the organizations small as
well as large so that they can be prepared to face the competition by formulating proper
strategies. It helps the employees to look into the wider perspective of managing their ability and
maximizing it to achieve the objectives of business. Coca-cola is a beverage corporation which
was started in the year 1892 which produces coca-cola which is a sugar based drink and is
famous all over the world. This essay will cover company long term international objectives and
strategies, its internal and external environment, how the company have implemented its
international strategies and its success to the company.
ESSAY
Coca-cola is a world famous company for its beverages which they produce and the most
famous out of every is the coca-cola drink. They are known for their beverages and have
acquired many companies out of which are Minute Maid, Columbia pictures(Nataliia, Victoriia
and Dmytro, 2019). They started building their company name from the year 1920 and this
expansion was made during the World War 2. Coca-cola is now working in around 200 countries
and now developing around 500 brands which is successful. They produce beverages, water, and
different types of juices, coffee, tea and many more.
Long term international strategic objectives
As the company have expanded their business in different countries and have become
successful with the products they have launched and the strategies they have made. Coca-cola is
the biggest beverage company and also the largest marketer of soft drinks. The main products for
which the company is known are- Fanta, Sprite, Coca-cola, Diet cokes. But for making these
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products successful worldwide they have used different international strategies and those include
the quality for which the consumers are spending their money. They know that in which ever
country they will expand their business but they have to provide the quality in its drinks to their
customers. This is the reason why company is famous for its products and drinks which they
produce other than the others. The next factor for which Coca-cola is always knows for its name
is the way they do their branding and marketing or products.
Till now the marketing and promotional methods which are used by Coca-cola are considered to
be very innovative. they pick up those things in their advertisements which can be linked by
every age group of people and identify the needs of every place on which they can prepare their
promotional activity(Ritter and Lettl, 2018). They have not made their consumer upset by
charging them the higher prices which is mainly done by other competitors in the market. This
means they always try to charge from people the reasonable and affordable prices which can be
taken by every consumer. This the best thing of a company which makes their consumers the
most happier one. They always try to make their products with utmost simplicity and freshness in
their taste and flavours. The company is well-known because of their products which they
provide to the customers and this is their main objective because of which they have expanded
their business in different countries.
Long term international strategies
Every company develops some business strategies so that they can exist in the market for
longer terminology. Coca-cola also uses different strategies and this is the only reason of
becoming successful in every market on which they have decided to develop their business. The
main strategy which they use is different style of packaging and media partners which plays very
important role for gaining competitive advantage. This strategy is mainly important because they
make decisions on the basis of geographic specification and the country(Kleibrink, Gianelle and
Doussineau, 2018). They have always tried to think in a local way which means that in
whichever country they are making expansion they will think in a local way which means that
they will think on the basis of consumer perspective.
Thinking from the consumer perspective provides the company ways that how and what
strategies they can use but with this they have also made decisions and their strategies on the
basis of global market and the demand. If any of the deficiency is find by the company then in
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this stage they try to make changes within it and adapt themselves to fit in the local market. But
with all these things which is used by Coca-cola marketing is the foremost thing which has
helped the company in becoming the best out of the other existing company everywhere in the
countries. Their unique business ideas and the marketing ideas has helped the company to make
themselves differentiated from the other. If looking on the marketing and advertisements
channels which are used by them are always different and unique(Garasyim and et. al., 2020).
Their unique and relatable marketing strategies are the only way which has helped them to
remain in the mind of consumers. They are successful in the international markets is because of
the marketing strategies which are used by them and also assuring the quality in products which
they provide to consumers.
Internal environment
Internal environment means that process in which the company makes the identification of those
things which are within the structure of business. It is important for every business to evaluate
those factors which can make some impact on the working of business.
SWOT analysis-
This tool is the best process which helps in making the identification of internal things which can
impact the business. SWOT analysis has been explained below in context with Coca-cola-
 Strengths- Coca-Cola is the biggest company and has developed their brand in around all
over the world. They are selling around 500 brands which is considered to be the biggest
and have now become the most renowned brand everywhere. They have made the
presence of their company in international market also which makes their company
valuation around billion dollars(de Lautour, 2019). The other thing which is the main
strength of Coca-Cola is their innovative and unique promotional strategies which are
liked by every consumer.
 Weakness- There are some weak points for Coca-cola and those are the competition with
local and other big companies which makes them pressurised at some or the other point.
They are not able to make any diversifications in their products while the other
companies similar to that of Coca-cola have used such methods to attain competitive
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advantage(Özmen, 2018). Coca-cola is not working on providing people with those
drinks that are healthy as people are becoming more health conscious.
 Opportunities- The best opportunity for Coca-cola is to make diversification in their
products which will help them to become more successful in achieving their objectives.
Coca-cola can work on their supply chain improvement which is the best way for them as
products will be delivered right to the consumers at a very quicker rate.
 Threats- The main threat for Coca-cola is competitors which are not just the big
companies but are also local business which are giving them higher competition. Coca-
cola also sells water and it is a rising issue that there will be a scarcity of water at some
point of time which can act as a major threat for them.
External environment
PESTEL analysis-
 Political factors- It is important for Coca-Cola to work according to the rules and
regulations which are framed by the government in order to fulfil the laws. As the
company works under providing the drinks and other beverages to the people so it
becomes very important for them to meet laws which can vary from country to
country(Hariyadi, 2018).
 Economic factors- The Company has always tried to deliver the products at reasonable
rates but due to increase in the tariffs Coca-cola have to raise their prices up. Still they
continued to earn good revenue as they provide the drinks with different flavours and
with unique taste in them.
 Social factors- Coca-cola have always tried to work under the expectation of consumers
and for this only they provide drinks which will be liked by consumers. In the year 2014,
people can connect themselves with the name written on the bottles which was the best
initiative that was started by the company.
 Technological factors- They always try to make some experiments with the technology
they use and firstly they use the technology which was providing consumers with ready
to drink frozen beverage. Coca-cola also provides encouragement to the people to play
online games which help them in associating them with the products of Coca-cola.
 Environmental factors- As the company main products are soft drinks and they also
provide water bottles to people(Sahota and Bennett, 2019). But as the water scarcity
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continues so to reduce these problems they have come up with RAIN and CARE methods
which will help in using less water. Also, they are trying to reduce the carbon footprint
while producing the drinks in their manufacturing.
 Legal factors- Coca-cola is using all the legal laws which are there in different countries
but still they were accused of paying fewer wage to their employees and workers.
Implementation and success of strategies
With the success which Coca-cola have achieved is because of the different strategies which
has been identified by the management of a company. They always makes their strategic plan so
that they can work successfully in the international markets. For this, they used to conduct
market research in order to find out the needs of people and what unique and differentiated
products has to be produced so that this can satisfy the needs of consumers. Coca-cola have also
worked on their marketing strategies because without this no consumer will get to know about
the products or different brands which the company is bringing(Starr, Ganco and Campbell,
2018). Segmentation of market is also the best strategy which has been used by the company and
which helps them to define the consumers. This method is used by Coca-cola so as to expend
their business in the international markets. Using and preparing the methods according to the
needs of people have helped them in getting the success and also allowed them to attain
competitive advantage in the market. At present, Coca-cola operates in around 200 countries and
providing over 500 brands to people.
CONCLUSION
From the above essay it can be concluded that for becoming famous and successful it is
important for the company to use some strategies. Every company which makes expansion of
their business has to use some strategies which are counted as international strategies. This helps
in providing the roadmap as how they have to act and what methods have to be used by them in
order to achieve that success. Strategic management is important for the company so that they
can identify the best opportunities for them. With the development of some strategies which the
business makes with this they also identify the ways or the opportunities by which they can fulfil
their objectives. As the business has to work in a dynamic environment then it becomes very
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essential to them to make themselves prepare for the future. The managers of businesses make
and develop that business strategy which will work the best for the business success.
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References:
Books and Journals
de Lautour, V.J., 2019. Strategic Management Accounting, Volume III: Aligning Ethics, Social
Performance and Governance. Springer Nature.
Garasyim, P. and et. al., 2020. STRATEGIC MANAGEMENT ACCOUNTING OF BUSINESS
PROCESSES OF THE SERVICE SECTOR ENTERPRISES. Academy of Accounting
and Financial Studies Journal. 24(2). pp.1-6.
Hariyadi, A., 2018. Total Quality Management: A Strategic Management Model. European
Research Studies Journal. 21(Special 2). pp.171-186.
Kleibrink, A., Gianelle, C. and Doussineau, M., 2018. Monitoring Innovation and Territorial
Development in Europe: Emergent Strategic Management. 2018): Regional innovation
strategies (RIS3). London: Routledge.
Nataliia, Z., Victoriia, B. and Dmytro, K., 2019. The quality of financial education as the basis of
proper human resources for economic security strategic management. Academy of
Strategic Management Journal. 18(6). pp.1-5.
Özmen, H.I., 2018, December. The Achilles’ Heel of Strategic Management: Strategic
Leadership in a Chaotic Environment. In International Symposium on Chaos, Complexity
and Leadership (pp. 123-135). Springer, Cham.
Putz, M.V., 2019. The Cube of Strategic Management: The Distinctive Advantage of
Organizations. CRC Press.
Ritter, T. and Lettl, C., 2018. The wider implications of business-model research. Long range
planning. 51(1). pp.1-8.
Sahota, K. and Bennett, C., 2019. Analysis of Emergency Room Visits Reveals a Seriously
Mentally Ill, Medically Fragile Population Requiring Strategic Management. Journal of
the American Psychiatric Nurses Association. 25(6). pp.496-500.
Starr, E., Ganco, M. and Campbell, B.A., 2018. Strategic human capital management in the
context of cross‐industry and within‐industry mobility frictions. Strategic Management
Journal. 39(8). pp.2226-2254.
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