Coca Cola Company: Strategic Management


Research clearly states that for any organization to survive in the current global businesses then the management in the firm should ensure that there is the compliance of various management concepts that are normally used to avoid the existing unfair business competitions globally. In this case we find that various organizations have been able to come up with policies and regulations that have enabled them to succeed in the international market (Ramira, 1998). Although many organizations are faced with a number of challenges which requires them to fight them with an ambition of surviving in the global business realm, this comes up as a result of various changes in the global business environment such as changes in technology and other operational policies, this changes are reported to be affecting the firms both internally and externally thus impacting the performance of the organization globally, as a result of this many firms are reported to have come up with various connections that are both economical and political in nature that have enabled the transfer of resources across the borders, the creation of this linkages has enabled many organizations to share ideas and principalities regarding the particular businesses that they engage in (David, 2009).

This has brought in opportunities and strengths that have enabled business firms to succeed in the global market through the improvement of their business productivity. We also find that in the global businesses there are various threats and weaknesses that have made some organizations not to perform perfectly in the market (Lovelock, 2006)


Business organizations such as Coca Cola have been placed in a position of fighting for leadership in the global business market, as a result of this; this paper is therefore going to analyze various internal and external concepts that have been affecting businesses globally specifically focusing on the Coca Cola Company that is situated in the United States of America. This study will carry out the analysis on this organization that is looking at its strengths, weaknesses, opportunities and even its threats in the international market (Lovelock, 2006). Company description

Research indicates that the Coca Cola Company is ranked as one of the largest multinational organizations that deals with the manufacturing and selling of syrups and soft drinks globally, this company has a great performance record in the attaining of a larger market share in the international market over its rivals. The company has a good mission statement that has tackled both the internal and external factors affecting its operations (Coca Cola, 2010). Environmental analysis

This environmental analysis basically covers factors affecting organization both internally and externally. Under the internal environment it reflects the strengths and weaknesses that emanate from the firm itself that affect its transactions. In this case we find strength to be defined as the differentiating ability that an organization holds that when well implemented and utilized properly within the organization then it will see the firm performing better than its rivals in the market (Hoyer, 2001).


Looking at the coca cola company we find that it has a strong brand name for its products that has enabled the firm to gain a competitive advantage in the international market as compared to its rivals such as the Softa Company, the other strength that Coca Cola has is the outrageous number of outlets globally with over one hundred thousand employees in all its investments. Reports indicate that Coca Company has employed the best marketing strategies that have enabled the company to diversify perfectly. The best example of the marketing strategy is that the organization has employed approximately one hundred thousand sales employees who are always competent in performing their marketing responsibilities, they are also well trained in the on how to adapt to the global business changes brought by the concept of globalization and this has seen a better performance of the firm globally (Fletcher and Brown, 2005).

The other strength that the Coca Cola Company holds is that it has a well established distribution channel that has helped the firm in coping of competition in the market and dominating the market globally. The company is also reported to have the ability in the identification of the market segmentation and this has gained the firm a better competitive position in the international market and through this the firm has been able to bring up with effective marketing strategies (Coca Cola, 2010).

The corporation is reported to have a revenue generation of over fifty billion dollars with an approximation of twenty billion pounds net profit on a yearly basis, this is also found to be leading factors in the success of the firm competitively in the international market especially in London and New York stock exchanges.


These are factors that are said to be deterring an organization for achieving its set goals and objectives. In this case we find that the Coca Cola Corporation is faced with very few weaknesses that when not well handled it will automatically lead to the failure in the performance of the organization, reports suggest that the firms’ laws and regulations are not properly working, and this has made the performance of the fir to deteriorate in some part of its global market. The best example here is that in the African countries coca cola products have reported a poor performance as a result of poor advertising strategies (Mark, 2007).

The other weakness that is associated with the Coca Cola Company is lack of commitment by its employees, it has always been reported that the employees in this organization are found to be reluctant especially in the carrying out of their duties and that they are always satisfied with the current performance of the firm, they seem to have no initiative of making better the future of this firm. The employees are not aggressive enough in their performance and this is normally associated with the sales and marketing employees who are relaxed this comes up as a result of them having an attitude that the organization is performing perfectly in the international market and thus they don’t have to put more effort in their duties (Coca Cola, 2010).

External Environmental analysis

External environment is defined as the factors that are affecting the operation of an organization externally this factors may be indicating both the threats and opportunities that exist for the particular organization, these factors are basically economical, technological, political and social that normally hinder or promote the performance of a particular organization such as Coca Cola (Fletcher and Brown, 2005).

Research indicate that the coca cola company carries a number of opportunities that emanate from the existing in the international market of soft drinks through which the firm has been in a position to explore new international markets such in Africa, Australia and America without any political or legal interference with business operations, the reason for this is that the products that the organization manufactures is widely recognized and is greatly on demand globally and this has given Coca cola an advantage over its competitors, through this we find that the firm has a strong established financial status compared to its business rivals that has enabled it to meet the demands of its large targeted market. Some of the company’s surplus in the financial funds has actually been employed on the building of new market and this has greatly increased the returns on the profit of the organization globally, this has always been considered as one of the major opportunities that the coca cola company has fully maximized in improving its market dominancy by opening a number of subsidiaries in its business host nations globally (Coca Cola, 2010).


The Coca Cola firm has also been able to apply the current advancements in technology in its business operations, the changes in technology usually come up as a result of globalization that has called for attention from all business organizations who wish to become leaders in the international market. as a result of technology we can therefore states that the firm has been able to sell it soft drink products electronically through internet marketing on through the adoption of the e commerce concept that has made the Coca Cola a larger number of markets globally (Cox and Blake, 2001).

Research indicates that as a result of the organization has been privileged to develop a good relationship with the governments of its foreign host countries in its business operations, and the reason for this is that it has been able to adhere to the rules and regulation such as the policies for licensing of the existing host countries. we can therefore; say that technology has also been used as an opportunity for the growth of the Coca Cola corporation in this diverse business environment thus increasing the revenue of the firm (Kotare and Helena, 2004).

Challenges Coca Cola faces in the international market

Any challenges that any business organization faces that hinder the firm to attain its objective is defined as a threat research indicates that these challenges normally occur as a result of a highly competitive business environment, variations in the interest rates globally, the level of poverty and also the existing laws that have been established by various countries globally. In this case we find that Coca Cola has been facing a stiff competition from its major competitors such as the Softa Company that has actually made the Coca Cola Company to drop some of its target market and focus on those markets that it can face a stiff competition from its rivals (Coca Cola, 2010).

Many studies indicate that the coca cola company has not succeeded in the management in the human resource management of its workforce by applying unprofessional management principles of planning, controlling, organizing and directing of its employees the firm is reported to have not been ensuring that its workers are well equipped with the skills and knowledge that is required for them to perform their duties in the organization, this has been one of the reasons why the firm has not been performing well in the international business market (Coca Cola, 2010). The other challenge that this organization is facing is that the restrictions that the host governments impose on the organization, we also find that there have been some instances where the company has been ordered with threats of deregistration as result of its stiff competition that Coca Cola imposes on the local soft drinks manufactures in the host country, such cases has made the firm to reduce its productivity in the target countries thus it has affected the overall performance of the firm and it has led to the drop in the performance of the Coca Cola Company because such restriction has denied the firm to enjoy in its business transactions. The other challenge lies on the side of the laws on the importation and exportation principles that exist globally, reports indicate that there are some nations that have actually implemented the laws and rules that normally favour the local manufacturers of local products same as those of Coca Cola (Bowker, 2007).

Poverty is also considered as a threat to the international market of the Coca Cola products since there have been a rampant drop in the income rates of various individuals who might have been considered as the target consumers of the Coca Cola products. We also find that inflation in the economy has been judged as a threat the Coca Cola international market, the best example here is in most African countries individuals have not been able to purchase these products since they claim that the pricing of the Coca Cola products are so high and this has made them to come up with a preference of buying cheaper soft drinks products that is pocket friendly to them (Cox and Blake, 2001).

The concept of globalization

There have been many issues raised towards such issues and challenges that are affecting the international market of the firms that have an interest in going global. Globalization is considered as one of the concepts that firms have applying with an ambition of fighting and leading in the international market (Fletcher and Brown,2005). In this case globalization is defined as an act of integration that aims at creating an international fiscal structure without the consideration of the national boundaries, this concept depends on how the nations depend on each other economically, and this dependency only succeeds as a result of advancement in technology and infrastructure, these advancements have led to the betterment of communication and the creation of good international relations among those partnering to achieve a particular goal thus promoting international business transactions (Philips, 2006). Taking advantage of the globalization concept, reports indicate that there have been stiff competitions and this has made it difficult in managing international businesses but many firms such as Coca Cola are struggling to succeed in the management of the international markets with an aim of getting better marketing opportunities and greater investments (Bowker, 1991).

Strategies that Coca Cola can use to be a leader in the International Market Globalization

As a result a various challenges in the global business management the Coca Cola company is there advised to carry out the strategic management concept that will enable it to stand out better in the international market. The Coca Cola Company is therefore advised to first of all carry out a market research both primarily and secondarily that will ensure that the firm gets the relevant information on target markets in the nations that the firm desires to diversify to. For the organization to be prosperous and impoverished it should therefore apply the concept of globalization in its management strategies and this will enable the firm to achieve an outweighing of the global business challenges that exist thus enabling the firm to perform better than its competitors (Coca Cola, 2010)

Looking at what people say on the concept of globalization in the international market place, we get the following opinions of various people such as Mr. James Wolfensohn the ninth president of the World Bank who says that people should not shun away from globalization but to use it as an instrumentation in the acquiring of various opportunities that exist in the international realm, he therefore urges people not to have a negative thought on the this concept of globalization. (United Nations, 2001)

Noam Chomsky a renowned scholar presents his negative opinion on globalization terming it as a propaganda used globally conservatively to a particular group of integrated by individual who are believed to be the only beneficiaries these individuals are always designers, Multinational organizations that are linked to this individuals with a particular interest in common (Noam, 2008).

Decision Making

As a result of the competitive environment in the global business environment the Coca Cola Company should therefore ensure that the decision made should create a better environment that can encourage better business transactions that will help in the retention of the company’s consumers and also sustain the growth of the organization. The management should therefore ensure that the firms’ policies are well designed with an aim of responding to the challenges such as the entrance of competitors, the buyers bargaining powers, the suppliers powers in the market, rivalry, substitution of products among others challenges (Daniels, Radebaugh and Sullivan, 2007)

The firm should also make revisions on the decisions made regarding the management of human resources, sales and marketing and also on the managing of operations, this will greatly help the firm in the meeting of the international standards of the host countries for their target markets globally that will automatically record the success of the company. Under this case for example the Coca Cola Company should train its workforce on how to cope with various organizational changes such as the advancement in technology. The firm should also make sure that the marketing strategies employed by the organization’s branches globally should provide a fair competition in the global market. Coca Cola should also ensure that its products are well developed and designed to meet the international business standards (Sparrow and Hilltop, 2004).

The strategy that the Coca Company can use to become a leaders in the international market of the soft drinks is that it should ensure that there should be a clear emphasis on the on the organizational effectiveness that will determine the performance of the firm in the global market, research indicates that organizational effectiveness is defined as an indicator or reports on an organization achieving its set objectives. Although reports show that Coca Cola have had a better organizational effectiveness which comes up as a result of a better management system, the firm should consider the management of its human resources (Thomson and Rampton, 2008).

Under human resource management the coca cola company should recruit individuals who are qualified and competent enough in their specific area of qualification. Hence to make their employees to efficient and effective the management team should implement workforce training and development and also should motivate its human resources through compensation and a better pay system that encourage the employees to adopt the changes that occur and maintain the performance of the organization in the global business environment (Mowery and Rosenberg, 2006).

How to remain competitive in the international Market

The firm is therefore recommended that for it to succeed in the international market it should work on its managerial practices, that is the embarking on the human resource management is required for its survival in the global market through the integration of the functions of management which are planning, controlling, directing and organizing. Perfect training of employees should be done with an aim of avoiding conflicts that occur in the organization (Ricardo, 2010).

Since the organization has a strong financial stand it should use it in the exploration of the new markets and developing of new and unique products in this global village, this clearly requires the firm to carryout the marketing research on the target market and the existing products that sell a lot in the specified market (Baker, 2000).


Motivation enables the employees to have their goals in the organization achieved. The manager should therefore come up with a plan that defines the environmental factors that will be able to bring an atmosphere of integrity, honesty, and confidence to the employees. So for the firm to be successful the manager should ensure that communication is used as an effective means that connects employees to the business through which there is an improvement in its employees working behaviour, thus facilitating change and reinforcing the firms vision through which the financial performance of the firm is revealed (Thomson and Rampton, 2008).

Planning For Employees

It also includes the setting and monitoring the financial spending of the Company in view of auditing any misappropriation of funds. Another section of business organizations that need planning is the policy formulation section. This is critical in that as a profit making company, strategies must be placed correctly to counter marketing issues such as competition from companies which manufacture the same product (Ricardo, 2010).


The Coca Cola Company should therefore depend on the internal and external factors to gain efficiency and effectiveness; therefore it should carry the managing and monitoring these factors based on what it can produce best. Therefore the Coca Cola Company should consider the factors for it to achieve the market leadership:

Research indicates that there are many things a company does but it should always concentrates on what it can produce best (Stanley, 2009). The internal analysis facilitates the formulation of strategic plan which requires a clear understanding of the internal strengths acquired over time and any weakness that adversely impact on performance. Distinctive competencies are things that give a firm an advantage over similar businesses. Research also indicates that no matter how attractive an opportunity may be the business must have the competencies to capitalize on it. An opportunity without the competence to capture it is no really an opportunity to the business (Baker, 2000).

An organization’s management should create and maintain efficient control measures. This helps in early detection of weaknesses that would have affected the plan of meeting the entire objectives. Policies and procedures need to be put in place to help the organization meet its objectives of internal control. Controls should ensure safeguarding on wastage and misappropriation of funds. This encourages accountability of employees on the resources allocated (Mowery and Rosenberg, 2006).

For instance total revenues and expenditures should be accounted for. Control as a management tool should not be isolated to exist alone. Rather it should be incorporated with auditing, budgeting and planning. Control is never effective if it doesn’t give feedback to the organization’s management. When controls are too many they may be ineffective. Control also helps organizations to comply with laws and regulations like meeting standards in quality. It ensures that financial reporting is reliable and helps operations be efficient (Baker, 2000).

In controlling, there are so many things that need to be measured to ascertain whether they are as per what was initially planned. This includes;

Time controls

Time is an important resource especially in a business organization. How much time is taken to accomplish tasks by employees or people in an organization needs to be controlled. This helps in meeting deadlines and to minimize time constraints. When time controls don’t exist in an organization, it ends up losing so much. This is because time as a resource tends to be misused. It includes reporting and departure time of employees (Peterson, 2007).

Material controls

They include material –yield controls and inventory. Research shows that the Marks and Spencer Company carries out material controls to ensure that the company uses the right quality of fabrics. The American Company men’s Warehouse carries out inventory controls (Cinchona and Ronkainen, 2005).

Cost controls

This means meeting the cost standards as planned by the organization. There are also employee performance controls. This is where individual behaviours and of groups of employees are monitored. This includes absences from work, lateness, quantity and quality of work done. It involves issues to do with accidents at work. Cost controls can be done using budgets. They assist to control standards that relate to expenses incurred (Peterson, 2007).


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