Strategic Management Issues of Multinational Companies (MNCs): A Case Study on Coca-Cola Company

Presented ByPresented ByMd. Kamruzzaman Shuvradeb BaraiAbu ZafourSahana ParveenNazmul Alam Siddiqui

Md. Muzahidul IslamLecturerDepartment of Management Studies

Submitted ToSubmitted To

Ob

jecti

ves o

f th

e S

tud

y

• To know about the strategies of the multinational companies

• To characterize the challenges of international strategic management

• To know about the international strategic management process

• To know about the Coca-Cola Company’s strategies in management process.

Defi

nit

ion

of

Str

ate

gic

M

an

ag

em

en

tStrategic management is the process of specifying an organization's objectives, developing policies and plans to achieve these objectives, and allocating resources so as to implement the plans. It is the highest level of managerial activity, usually performed by the company's Chief Executive Officer(CEO) and executive team.

To the shape the Future of business

Effective strategic idea

Mangers and employer are innovative and creative

It’s decentralized the Management

Its helps to increase the productivity

To Makes discipline

To make control

To makes forward s thinking

Imp

orta

nce

of

Str

ateg

ic

Man

agem

ent

Inte

rnati

on

al S

trate

gic

M

an

ag

em

en

t

Qu

esti

ons

Fac

ed b

y S

trat

egic

P

lan

ner

s● What products and/or services

does the firm intend to sell?

● Where and how will to make those products or services?

● Where and how will it sell them?

● Where and how will it acquire the necessary resources?

● How does it expect to outperform its competitors?

Company Overview

COMPANY OVERVIEW

The Coca-Cola Company (Coca-Cola) is a leading manufacturer, distributor and marketer of Non-alcoholic beverage concentrates and syrups, in the world. The company owns or licenses more than 400 brands, including diet and light beverages, waters, juice and juice drinks, teas, coffees, and energy and sports drinks.

History Of Growth of Coca-cola

1916 …

Birth of the contour bottle

1920s and 30s … International expansion

1950s … Packaging

Innovations

Recent Status

Products OF COCA COLA Company

Energy Drinks

Juices/Juice Drinks

Soft Drinks

Sports Drinks

Tea and Coffee

Water

Other Drinks

Str

ate

gic

Qu

ality

C

on

trol

Coca-Cola Company believes that, customers are the life of their business. They like to connect with the future customer through providing quality products-

Skilled employee involvement for production and quality control

High quality materials for production

Up to date technology for quality control

Effective methods and newly developed strategies

●Market research

●Advertising

●Money

●Financing

●Transportations●Control

●Labor relations

● Language

● Culture

● Politics

● Economic ● Governmental

interference

● Labor

Factors Affecting The strategic Issues of Coca-Cola Company

Coca Cola Company follow the Multi-domestic strategies. This Company produce their products independently in different countries. All countries product are not same. They produce their products by following different strategy for different countries, based on the internal and external environment of the country.

Strategic Alternatives of Coca-Cola Company

Corporate Level of Strategies of Coca-Cola Corporate Level of Strategies of Coca-Cola CompanyCompany

Exam

ple

of

Usi

ng N

ew

S

trate

gie

sThe company now using E-Commerce System for selling their products. So any one can order coke by using his or her internet.

Develo

pin

g I

nte

rnati

on

al

Str

ate

gie

sStrategy Formulation

In strategies formulation, Coca-Cola Company establish its goals and strategic plan that will lead to the achievement of their mission goals.

Strategy Implementation

Coca-Cola Company develops the tactics and policy for achieving the formulated international strategies to obtain its mission and objectives.

Mission statement of Coca-Cola Company

Directs the continual up-gradation for efficient and environment friendly manufacturing technology.

Monitor and improve the efficiency and effectiveness of all business processes.

Promotes professional and flexible work environment, teamwork and innovation through employee participation and process ownership.

Drives customer orientation at all levels within the organization.

Monitor and economize the Cost of Quality.

SW

OT A

naly

sis

StrengthsStrengths

• Strong distribution network

• Strong brand Products

• Low cost of Operations

WeaknessWeakness

● Low export levels

● Limit ability to invest and achieve economies of scale

SW

OT A

naly

sis

OpportunitiesOpportunities

• Large Domestic Markets

• Export Potential

• Higher Income among People

Threats Threats

● Imports

● Tax and regulatory sector

● Slowdown in rural demand

PEST Analysis of Coca-Cola Company

PES

T A

naly

sis

of

Coca-

Cola

Com

pan

yPolitical Factors

• Tax policy

• Employment laws

• Environmental regulations

• Trade restrictions and tariffs

• Political stability

Economic Factors

● Economic growth

● Interest rates

● Exchange rates

● Inflation rate

PES

T A

naly

sis

of

Coca-

Cola

Com

pan

ySocial Factors

● Health consciousness

● Population growth rate

● Age distribution

● Career attitudes

● Emphasis on safety

Technological Factors

● R&D activity

● Automation

● Technology incentives

● Rate of technological change

Gain Over Customer Satisfaction

After completion of SWOT and PEST analysis as context The Coca-Cola Company implementing their strategies based on different market situation as well as customers response. This company will set up their tactical goals for being a strong position in the global market place. Depending on those issue factors The Coca-Cola Company is develop a Control Framework for their overall controlling of management for gaining over their customers by providing core satisfaction.

The End

Questions?