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  • Essay / Coca-Cola Strategy - 1374

    Coca Cola is the world's leading manufacturer, marketer and marketer of soft drinks. With the domestic market almost saturated, the growth potential lies in international markets. In recent years, economic, political and social changes have made the global environment more uncertain, forcing Coke to reassess its strategy, structure and culture to maintain a competitive advantage. What follows is a dynamic analysis that tracks the evolution of Coke's strategy from global standardization to a multi-national strategy that emphasizes national responsiveness. During Goizueta's tenure, Coke is already a large, mature company in the formalization phase of its life cycle and in the international stage of global development. The organization's official goal is to dominate the global beverage market and maintain its market leadership position over Pepsi and other competitors. Its main operational objectives are productivity, efficiency and profit. Coke is a highly formalized and centralized organization with a clear hierarchy of authority and a mechanistic management process. Employees believe in the supremacy of the product, and the company's rigid, authoritarian culture allows them to maintain control and pursue aggressive marketing and expansion plans. Given the constant consumer demand and the low uncertainty created by the simple/stable environmental dimensions, the vertical structure is appropriate because it provides management with a high degree of efficiency and control. The effectiveness of Coca-Cola is the result of the synergistic fit between its structural and contextual dimensions. Coca-Cola achieves economies of scale/scope and low-cost production through a globalization strategy that allows product design, manufacturing and marketing to be... middle of paper ......our product categories. With greater distances between regional units, Coke must establish more global coordination mechanisms such as transnational teams and functional managers to link resources, disseminate knowledge, and bring products to market more quickly. To ensure that regional units do not act too autonomously, headquarters must develop unified plans and procedures to provide control and coordination. With more differentiation, Coca-Cola's challenge is to remain competitive in new product categories without weakening the flagship product or diluting its brand image. In 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 multidimensional goals by simultaneously achieving efficiency, national responsiveness and learning sharing..