The purpose of this essay is mainly to analyze the gradual growth and evolution of a multinational cooperation called Coca-Cola, referring with Chandler, Langlois and Jones’ theories. The second-emphasis of this essay is to discuss the extent of the relative relationship between the MNCs’ structure and theirs strategy over 20th century.
This essay will be performed in three parts, each tilting with ‘Evolution and Growth of Coca-Cola’ ; ‘20th century Multinational-Business’s Structure and Strategy’ and ‘ Relative Relationship between chosen MNCs -- Coca-Cola’s structure and strategy’ respectively.
Evolution and Growth of Coca-Cola
According to Alfred Chandler’s pioneering concepts of which, companies’ operations should put an equal
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Furthermore, Coca-Cola forces on two strategies cost-based and differentiated one. As the core competence criteria that gives most of the comparative advantage to a company is strong brand name, therefore Coca-Cola adopts itself in several strategy pathways in order to strengthen its brand name. After the basic business model has been set for Coca-Cola, it quickly expanded itself around the world in the late 19th century. Coca-Cola achieved this goal by creating a matching puzzle between the dividend operating groups via different geographical regions.
However, Chandler’s “ the visible hand management ” believed only focused on MNCs’ short-run economic growth, but not consider the issue of changes within time, therefore an inevitable failure of his model will occur in long-run production. The creating of ‘ Organizational Capabilities ’ system (G.B.Richardson: 1972) inside Coca-Cola helped it overcome Chandler’s problem. Within the same bottling investment, Coca-Cola competed with other beverage firms by broaden its flavor range, (Fanta in 1950s; Spirit in 1961); found new packaging ways ( six packed package ); advertising to societies etc. These research and development costs are categorized by dynamic transaction costs. The study of “ The vanishing-hand Hypothesis ” which created by Richard Langlois provides a complementary
The author of this paper’s intention is to present and examine a multi-national corporation. Dissect the how’s and what’s about it, and simply discuss its processes. The author will be giving a brief background on the company to easily elaborate how it is that the company is successful compared to its past. Its products and services will be conversed and the company’s industry will be discussed as well as its competitors and its market. Basically everything that has to do with the company will be
The next stage is a stage of providing the actual change actions. Here, the company has chosen a new CEO and President, Douglas Daft, who was an opposite of Ivestor. Daft was a delegator, who wanted to turn Coca-Cola to a most desired company by employees in the world. He also saw a company as a head of the class, when speaking about diversity of workforce and business. Daft was fast in his actions. He has put Ware on the position of Vice-President for Global Public Affairs, as he was concerned about diversity issues in the company as well. They applied Ware’s suggestions about supporting the diversity from the top-executives and tying compensation increases to the achievement of diversity goals. On this stage, the U.S. District Court for the Northern District of Georgia approved the Settlement Agreement, which was used to non-hourly U.S.-based workers of the company, excluding its bottlers and called for pay-back to employees, future pay equity and equal employment opportunity. Task Force was created to provide an independent supervision of company’s compliance and was reporting on implementation of these programs. On this stage, Coca-Cola learned a lot about its past mistakes and provided dozens of changes to its policies and procedures. As it is not possible to change a whole organization in a short-time period, Coca-Cola was implementing changes during the next decade after a lawsuit and even created a document, called “Manifesto of
Coca-Cola is sold in over 200 countries and had for years done very well in Brazil. A closer look at Coca-Cola's Brazilian market is presented in an article in the Thunderbird (published by the Garvin School of International Management), which delves into the profit problems that Coca-Cola had in Brazil in the early part of the decade of the 2000s. The article, published in 2004, points out that the fast growth of "off-brand" soft drinks, called tubainas, has taken away profits from Coca-Cola, and created huge marketing problems for the giant soft drink corporation. This review of the article, "Coca-Cola's Marketing Challenges in Brazil: The Tubainas War " written by Gertner, et al explores the issues that Coca-Cola has had to deal with in attempting to gain a bigger share of the soft drink market in Brazil.
This case study is the story of Coca-Cola, its history and the report about one of the most fascinating stories about the company this is still regarded by many as a mysterious case: “the introduction of the new Coke”.
The manufacturing and sales of Coca-Cola demonstrated the success of American industrialism and capitalism. John Pemberton, the creator of the beverage and the company, was able to find ways to increase the company’s profits by using different ingredients than the original cocaine-laced French wine. It was able to be mass-produced and sold at a profitable price, and more factories were built as the company grew in success. Soon enough, Coca-Cola had their competitors, such as Pepsi Cola. The company was able to fight them off by means of globalization, by using advertising and by getting sponsored by many. Even Coca-Cola’s failures worked in its favor, such as not being able to profit in the Soviet-bloc countries or the Middle East, because Coca-Cola still gained brand recognition. Pemberton’s venture with his company shows capitalistic values: he was able to control the industry of a major part of the United States through his prudent
In the analysis for the adoption of the three theoretical perspectives, the Coca-Cola Company shall be used because of its existence as early as the 19th century (Ford, Stephens, & Cooper, 2007). Coca-Cola is the biggest company in the world dealing with the production and marketing of soft beverages. Moreover, it has one
Coca-Cola proved that the U.S. was a capitalist country. This put the U.S. as a nation valued by democratic societies and despised by communist societies. Because of Coca-Cola’s close association with the U.S., it became to be the embodiment of U.S. values such as freedom, democracy, and capitalism. Thus it made Coca-Cola also represent America’s influence and reach during America’s globalization.
I choose this company, because I can find many information about Coca-Coa which are usable for these tasks. It’s also an interesting company for me, because I want to know how this company became a multinational company. What are their mission to stay strong against the other competitors. In this report you read the story about Coc- Cola company, about the start the formula, the bottle and the branche that they have today. In my report I will start with the story about Coca-Cola company, about the start the formula, the bottle and the branche that they have today.
The Coca-Cola Bottling Company holds true to their values and strategy, thus creating more value within their brand. Business level strategy implements new products that embodies a fun and sociable atmosphere amongst family members and friends. This ambitious quality in a company is what pushes them past the threshold of complacency to move their product. One way they were able manage their brand globally was by using intense advertisements. Adding to their already famous and highly desired beverage, a business level strategy was instituted to add flavors to their cola product. By adding Cherry Coke and Vanilla Coke to their products, they satisfied the taste buds of millions upon millions of consumers here and abroad. Having the corporate level strategy makes the corporation thrive in the global market. It is also viewed as staying relevant or competitive, by developing more products that would best serve everyone who enjoys their product.
The multinational company that I have chosen is Coca Cola Company since it is a very popular brand and has been serving its customers for more then 10 decades and even after so many years its popularity seems to be increasing day by day which itself speaks about the company's remarkable performance. The Coca Cola Company is an American multinational corporation and manufacturer, retailer and marketer of the nonalcoholic beverage concentrates and syrups (Wright, 1999). It came into existence in 1886 and was invented in Columbus, Georgia by John Stith Pemberton. The current statistics of the company shows that it is currently operating in over 200 countries offering its customers over 500 brands with each day serving of more then 1.7 billion (Charles W. L. Hill, Essentials of Strategic Management, 2012). .Further more the Coca Cola Company is alone responsible for the 78% of the total gallon sales of all the beverages sold worldwide. The company is listed in New York Sock Exchange and is very popular in most of the countries especially United States of America, which alone consumes 47% of the total gallons, sold worldwide (Zurkuhlen & Meeker, 1987). The company headquarter is located in Atlanta, Georgia, United States of America and its current chief executive and chairman is Muhtar Kent (Charles W. L. Hill, Strategic Management Theory: An Integrated Approach, 2012).
The company known as Coca-Cola today was started in September of 1919, but the first Coke brand was served as early as 1886. Since that time it has grown to be one of the most globally recognized brand names with a stock value of $167 billion. Coke’s plan has always been developed with the future in mind. Right away the company realized that it was more profitable to manufacture the concentrate used to make carbonated drinks than to bottle it. From that point on they saw the entire world, not simply the originating country, as their desired market. It seems only practical that the company should pursue this agenda until conquered then focus the effort on expanding into different product lines. This logical
big market share, such as Pepsi Cola, Mt.Dew, and so on. I like to drink Coke
This paper focuses on global business strategy of The Coca-Cola Company, who is the leader in the beverage industry as well as, the world?s leading soft drink maker that operates in more than 200 countries and owns or licenses 400 brands of nonalcoholic beverages. The paper will concentrate on the PESTEL analysis of the organization focusing on the external factors of the business and the environment where it operates. All of the following environments will be discusses in the research; Political, Economic, Sociological, Technological, Legal, and Environmental as they the changes in the market segment. Within this paper it will discuss some of thr
Coca-Cola Company has realized significant growth since its establishment to become a global leader in the marketing, manufacturing, and distribution of syrup and soft drinks. Out of the four generic strategies, the company has followed the differentiation strategy to make its products unique in the market. Its interest is to maximize the market share through the development of the most innovative products and the establishment of effective strategies to influence the customer’s decisions. In such a way, the company has integrated various strategies to ensure that desirable results are attained in the market. Its strategic choices align with the differentiation strategy in an attempt to make its products unique and meet diverse market requirements. To reduce its weaknesses, the company should consider exploiting key opportunities in the market including venturing in the packaging of water, promotion of new brands, and launching of healthy products. In particular, the vision and mission statement of Coca-Cola seems to have reconfirmed and changed in this process of company’s strategic analysis.
According to Brand Finance, a London consulting firm, Coca Cola was the most valuable brand in the world in 2007; however, they are now 16th in the U.S. and 27th in the world (Grantham, 2017). A legendary investor once said that Coca-cola was a strong company that can be run by ham sandwich; however, the company is having a downfall nowadays. Even though the company is still making money, but Coke’s revenue has slipped for the past four years.