Evolution And Growth Of Coca Cola

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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…show more content…
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
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