Coke Strategy Essay -- Strategic Management Business

Coca Cola is the leading manufacturer, marketer and distributor of cracked drinks in the world. With domestic market nearing saturation, the potential for growth lies in supranational markets. In recent years, economic, political and social changes have made the orbiculate environment more than uncertain, forcing ascorbic acid to reevaluate its system, structure and culture to go for a agonistic advantage. The following is a dynamic analysis that tracks the growth of Cokes strategy from global standardization to a multi-domestic strategy that emphasizes national responsiveness. During Goizuetas management term, Coke is already a large, fledged company in the formalization stage of its life cycle and in the international stage of global development. The organizations official finish is to dominate the global beverage market and maintain its market leading position over Pepsi and other competitors. Its primary operative goals are harvest-feastivity, power and profit. Coke is a highly formalized, centralized organization with a move in hierarchy of authority and a mechanistic management process. Employees believe in the supremacy of the product, and the companys rigid, heavy-handed culture helps maintain affirm and drive aggressive marketing and expansion plans. Given the steady consumer admit and low uncertainty created by the simple/stable environmental dimensions, the vertical structure is appropriate because it provides management with high degree of efficiency and control. Cokes effectiveness is a result of the synergistic fit among its structural and contextual dimensions. Coke realizes economies of scale/scope and low-cost yield from a globalization strategy that enables product design, manufacturing and marketing to be ... ...our product categories. With greater distances between regional units, Coke needs to establish more global coordination mechanisms such as transnational teams and functional managers to link resources, publicize k nowledge and bring products to market faster. To batten down that regional units dont act too autonomously, headquarters needs to develop unified plans and procedures to ensure control and coordination. With more differentiation, Cokes challenge is to stay competitive in new product categories without weakening the flagship product or diluting its fault image. Looking to the future, Coke should consider moving to a transnational model, which would alter the organization into a net realise of interdependent global operations that work together to achieve multi-dimensional goals by simultaneously achieving efficiency, national responsiveness and overlap learning.