Strategic Alliances and M&A Impact on Coca-Cola's Business Growth

This report examines the role of strategic alliances and mergers & acquisitions in Coca-Cola's business growth. It begins with an introduction to the importance of these strategies in the current market scenario, highlighting their benefits, such as reaching new consumers and expanding market share. The main body delves into the concepts of mergers, acquisitions, and strategic alliances, providing examples of how Coca-Cola utilizes these methods, particularly its alliance with McDonald's. The report explains how mergers involve two organizations of similar size combining to create a new entity, while acquisitions involve one organization purchasing another. Strategic alliances, such as the one between Coca-Cola and McDonald's, are described as collaborations where companies combine resources to gain a competitive edge. The report emphasizes the advantages of alliances, including shared goals, cost savings, and the ability to target specific demographics. The alliance between Coca-Cola and McDonald's is presented as a success story, highlighting how shared missions and visions, along with effective coordination, have led to increased profits and market expansion for both companies. The conclusion summarizes the importance of these strategies for Coca-Cola and other organizations, emphasizing the value of alliances as a safer tool for business expansion.

Strategic Alliances
and Mergers &
Acquisition contribute
to growth in Coca-
Cola company

Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
CONCLUSION ...............................................................................................................................6

INTRODUCTION
This report is based on importance of strategic alliance and merger and acquisition in
growth of Coca-cola company. This report help in understanding importance of strategic alliance
in current market scenario and help in understanding benefits of alliance as well as merger and
acquisition. This report involves information about Coca-cola and how strategic alliance can help
in reaching out to new consumers and expand its business by gaining market share. Alliance
contributes in growth of organisation and it help in planning goals and objectives according to
the need of organisation. Coca- cola is one of leading player in market and in order to expand its
business Coca-cola should consider option of reaching out to new consumers (Alhenawi and
Stilwell, 2017).
MAIN BODY
Merger and acquisition help in expanding business and reaching out to new consumers. Strategic
alliance help in boosting profits of organisation and also help in maximizing productivity and
profitability of organisation. Merger and acquisition is explained as the process of forming
partnership among two organisation and concept of merger and acquisition states that two
companies are more valuable than two separate companies. Merger happens when two
organisation of same size agree on forming a new entity to expand business and to reach out to
new consumers. Merger includes equal control of both organisation on new entity as there is no
organisation dominates other organisation or merger. In merger both organisation manages new
entity and only focus is to achieve goals and objectives effectively and efficiently. Acquisition is
explained as process in which one organisation buys another organisation.
Acquisition is used to eliminate the competition or to expand the product range of organisation in
order to target new consumer and boost profit of organisation. Organisation motive behind
acquisition is to enter the new market and compete with other players in market effectively and
efficiently. Acquisition help in gaining market share and help in attracting and retaining new
consumer with organisation (Cao, Ellis and Li, 2019). Strategic alliance is explained as process
where two or more organisation come together and combine their resources in order to gain
competitor advantage over competitor and to maximize productivity and profitability of
organisation. Alliance is different than merger because in merger there is new entity arises when
two organisation combine as one but in alliance every organisation retain their own identity but

compete against competitor as unified force. Recent example of alliance is Walmart which
recently entered into alliance with Bharti Enterprise to enter in Indian retail market and reach out
to new consumers. Alliance help organisation in understanding new market which help in
formulating strategies and plan according to need of market. Alliance help organisation in
understanding need and preference of consumer which help in developing appropriate plan for
organisation. Alliance are considered safe in comparison to acquisition as alliance are negotiable
and cooperative. Alliance help organisation in achieving particular goals and objectives proposed
by organisation. This creates win-win situation for organisation which are part of alliance (de
Bodt, Cousin and Roll, 2018).
Coca-cola is considered as world's largest beverage company around the world which includes
1.9 billion serving worldwide every day and its products are available in more than 200
countries. Coca-cola is famous among its consumers because of its quality products and products
they provide are within affordable prices for consumer. Example of effective alliance in terms of
Coca-cola is with McDonald in which McDonald have made alliance with Coca-cola to boost
their profits and help in attracting consumers. McDonald is world largest global food service
retailer with more than 35000 local restaurant and serving more than 70 million people in nearly
70 countries. Alliance among these organisation resulted in maximization of profit level for
McDonald. This alliance helped McDonald in boosting its profit as customers enjoy their meal
with soft drink and it become key combination for consumers meal. This alliance was made in
1995 and since then these two organisation have managed to boost their profits and managed to
expand their business in several countries. Both these organisation have shared the common goal
of expansion and alliance between them helped in achieving these goals and objectives. These
two organisation have managed effectively alliance between them and effective coordination
among them helped in reaching out to consumers which results in gaining market share.
McDonald opened its restaurant in Des Plaines and supplier of beverages was required and goal
to expand business both organisation have shared same ambition which helped in making of this
alliance (Hassan, Ghauri and Mayrhofer, 2018.).
Alliance between these two organisation is considered as success. McDonald is now one of the
world largest food retailer in the world as its retail outlets are spread all across the globe. Both of
these organisation have shared same goals and objectives of expanding their business and to gain
market share which resulted in making alliance between them. This alliance helped both

organisation in strengthening their value chain and helped in expanding their business on large
scale. There are various points which helped in making alliance between them such as sharing
common mission and vision. Both McDonald and Coca-cola have mission to expand globally
and it helped both organisation in working with each other and compete against their competitor
as unified force. Alliance are considered as effective tool for long-term and cheaper growth. Both
organisation have saved operation cost with their partnership and it helped both organisation in
achieving competitor advantage over their competitors. Both organisation have focused on
targetting same demographics and age group which helped in implementing effective strategies
and maximizing productivity of alliance. Both organisation have vast experience in the market
and have numerous resources which helped in creating value to their goals and adding value to
their goal of business expansion. McDonald have focused on product development as they have
introduced coke in their meal which helped in creating new to their meal and it help in attracting
consumer and quality product helped in retaining consumer (Maung and et. al., 2019.).
Coca-cola helped McDonald in creating new product line which played major part in expansion
of both organisation. Studies showed that best taste of Coca-cola is available in McDonald due to
their unique system of delivery and production of coke. McDonald different system help in
delivering quality product to its consumer which helped in creating uniqueness in its products.
Both organisation have started different social campaign to promote their fast food chain which
helped in spreading awareness about product among consumers. Effective advertising have
helped both organisation in spreading awareness about their products and helped in adding value
to products of organisation. Both organisation have actively participated in activities related to
social responsibility as CSR is explained as process where organisation contribute their share of
profit in the development of society where organisation operate (Phillips and Zhdanov, 2017).
CSR help in developing image of organisation among its consumer and help in creating positive
image in the society. Effective alliance among the McDonald and Coca-cola have helped Coca-
cola in its growth and it also helped in expanding its business. Merger and acquisition also plays
vital role in growth of organisation but these days alliance are considered as safe tool for
partnership. Alliance is considered as one of the effective tool for expansion of business and help
in reaching out to more consumers.

CONCLUSION
This report concludes about importance of merger and acquisition for an organisation and
help in understanding concept of merger, acquisition and alliance. This report help in
understanding importance of merger and acquisition in growth of Coca-cola and how alliance
between McDonald and Coca-cola proved to be effective for expansion of Coca-cola business.
Merger and acquisition help organisation in expanding its business and also help in reaching out
to new consumers. Several organisation utilises merger as an effective tool in establishing its
business in new market and it help in competing against competitors effectively and efficiently.

REFERENCES
Books and Journals
Alhenawi, Y. and Stilwell, M., 2017. Value creation and the probability of success in merger and
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cultural diversity on cross-border merger and acquisition outcomes. Review of
Quantitative Finance and Accounting. 53(4). pp.1031-1068.
de Bodt, E., Cousin, J. G. and Roll, R., 2018. Full-stock-payment marginalization in merger and
acquisition transactions. Management Science. 64(2). pp.760-783.
Hassan, I., Ghauri, P. N. and Mayrhofer, U., 2018. Merger and acquisition motives and outcome
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