Coke Strategy Essay -- Strategic Management Business

Coca Cola is the leading manufacturer, commercializeer and allocator of soft drinks in the world. With domestic market nearing saturation, the potential for growth lies in international markets. In recent years, economic, political and social changes have make the global environment more uncertain, forcing Coke to reevaluate its strategy, structure and grow to represent a competitive advantage. The following is a dynamic compendium that tracks the evolution of Cokes strategy from global standardization to a multi-domestic strategy that emphasizes national responsiveness. During Goizuetas management term, Coke is already a large, mature company in the formalization stage of its life speech rhythm and in the international stage of global development. The organizations formalized goal is to dominate the global beverage market and maintain its market leadership position over Pepsi and other competitors. Its primary operative goals are productivity, faculty and pro turn back. Cok e is a highly formalized, centralized organization with a clear hierarchy of authority and a mechanistic management process. Employees study in the supremacy of the product, and the companys rigid, heavy-handed culture helps maintain control and drive aggressive marketing and expansion plans. Given the besotted consumer demand 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 between its structural and contextual dimensions. Coke realizes economies of scale/scope and low-cost production 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 certify more global coordination mechanisms such as transnational teams and functional managers to connection resources, di sseminate knowledge and bring products to market faster. To ensure that regional units beginnert act too autonomously, headquarters needs to develop incorporated plans and procedures to ensure control and coordination. With more differentiation, Cokes challenge is to retain competitive in new product categories without weakening the flagship product or diluting its brand image. Looking to the future, Coke should consider moving to a transnational model, which would transform the organization into a network of interdependent global operations that work together to achieve multi-dimensional goals by simultaneously achieving efficiency, national responsiveness and shared learning.