The Poorest Continent

782 Words Nov 6th, 2014 4 Pages
COLLEGE OF BUSINES/ATC
UNIVERSITI UTARA MALAYSIA

BFMA 6043 INTERNATIONAL BUSINESS
SEMESTER 2011/2012

INDIVIDUAL ASSIGNMENT NO: 2

PREPARED FOR :
DR. SABRI

PREPARED BY :
MOHD GHAZALLY BIN ABDUL RAZAK (MATRIX NO: 808707)

SUBMISSION DATE : 4TH. DECEMBER 2011

Coca Cola Case Study
Case Discussion Questions
Question 1
Why do you think that Roberto Goizueta switched from a strategy that emphasized localization towards one that emphasized global standardization? What were the benefits of such strategy?
Answer 1
Roberto Goizueta switched from localization strategy to global standardization strategy because during his initial control over Coca Cola Company
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By having this strategy, his focused was on increasing profitability and profit growth by reaping the cost reduction that comes from economic of scale, learning effects and location economies. Douglas Daft has taken different approach by taking localization approach strategy. In this approach Daft has given back the autonomy power to the Country Manager to decide for any changes that was suit to customer’s expectation. The strategy taken by Daft was not really successful because even though he managed to meet the customers requirement by customizing the product but actually in total the company gained lesser profitability and profit growth due to higher cost per unit of products produced.
Question 3
How would you characterize the strategy Coke is now pursuing? What is the enterprise trying to do? How is this different from the Goizueta and Daft? What are the benefits? What are the potential costs and risk?
Answer 3
I believe that Coke is now trying to pursue transnational Strategy as it has been practiced by many multinational companies like Procter and Gamble, Xerox and etc. Goizueta’s approach was on Global Strategy and Daft’s approach was more on localization strategy. The transnational Strategy actually is a combination of both Global and Localization Strategy. The firm seeks to combine the benefits of global-scale efficiencies with the benefits of local responsiveness.
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