Strategic Management Issues of Multinational Companies (MNCs): A Case Study on Coca-Cola Company

Submitted To Md. Muzahidul Islam Lecturer Department of Management Studies Presented By Md. Kamruzzaman Shuvradeb Barai Abu Zafour Sahana Parveen Nazmul Alam Siddiqui

Objectives of the Study • To know about the strategies of the multinational companies • To characterize the challenges of international strategic management • To know about the international strategic management process • To know about the Coca-Cola Company’s strategies in management process.

Definition of Strategic Strategic management is the process of specifying an organization's objectives, developing policies and Management plans to achieve these objectives, and allocating resources so as to implement the plans. It is the highest level of managerial activity, usually performed by the company's Chief Executive Officer(CEO) and executive team.

Importance of Strategic To the shape the Future of business Effective strategic idea Mangers and employer are innovative and Management creative It’s decentralized the Management Its helps to increase the productivity To Makes discipline To make control To makes forward s thinking

International Strategic Management

Questions Faced by Strategic ● What products and/or services does the firm intend to sell? ● Where and how will to make Planners those products or services? ● Where and how will it sell them? ● Where and how will it acquire the necessary resources? ● How does it expect to outperform its competitors?

Company Overview

COMPANY OVERVIEW The Coca-Cola Company (Coca-Cola) is a leading manufacturer, distributor and marketer of Non- alcoholic beverage concentrates and syrups, in the world. The company owns or licenses more than 400 brands, including diet and light beverages, waters, juice and juice drinks, teas, coffees, and energy and sports drinks.

His to ry Of Gro wth o f Co c a -c o la 1950s … 1920s and 30s Packaging 1916 … … Innovations Birth of the International contour bottle expansion Recent Status

Products OF COCA COLA Company Energy Drinks Juices/Juice Drinks Soft Drinks Sports Drinks Tea and Coffee Water Other Drinks

Coca-Cola Company believes that, customers are the life of their business. They like to connect with the future customer through Strategic Quality providing quality products- Control Skilled employee involvement for production and quality control High quality materials for production Up to date technology for quality control Effective methods and newly developed strategies

Factors Affecting The strategic Issues of Coca-Cola Company ● Language ●Market research ●Advertising ● Culture ● Politics ●Money ●Financing ● Economic ● Governmental ●Transportations interference ●Control ● Labor ●Labor relations

Strategic Alternatives of Coca-Cola Company Coca Cola Company follow the Multi- domestic strategies. This Company produce their products independently in different countries. All countries product are not same. They produce their products by following different strategy for different countries, based on the internal and external environment of the country.

Corporate Level of Strategies of Coca-Cola Company

The company now using E-Commerce System for selling their products. So any one can order coke Example of Using New Strategies by using his or her internet.

Developing International Strategy Formulation In strategies formulation, Coca-Cola Company establish its goals and Strategies strategic plan that will lead to the achievement of their mission goals. Strategy Implementation Coca-Cola Company develops the tactics and policy for achieving the formulated international strategies to obtain its mission and objectives.

Mission statement of Coca-Cola Company Directs the continual up-gradation for efficient and environment friendly manufacturing technology. Monitor and improve the efficiency and effectiveness of all business processes. Promotes professional and flexible work environment, teamwork and innovation through employee participation and process ownership. Drives customer orientation at all levels within the organization. Monitor and economize the Cost of Quality.

Strengths Weakness SWOT Analysis • Strong ● Low export distribution levels network ● Limit ability to • Strong brand invest and Products achieve • Low cost of economies of Operations scale

Opportunities Threats SWOT Analysis • Large Domestic ● Imports Markets ● Tax and • Export regulatory Potential sector • Higher Income among People ● Slowdown in rural demand

PEST Analysis of Coca-Cola Company

PEST Analysis of Coca- Cola Company Political Factors Economic Factors • Tax policy ● Economic growth • Employment laws ● Interest rates • Environmental regulations ● Exchange rates • Trade restrictions and tariffs ● Inflation rate • Political stability

PEST Analysis of Coca- Social Factors Technological Factors Cola Company ● Health ● R&D activity consciousness ● Automation ● Population growth rate ● Technology incentives ● Age distribution ● Rate of ● Career attitudes technological change ● Emphasis on safety

Gain Over Customer Satisfaction After completion of SWOT and PEST analysis as context The Coca-Cola Company implementing their strategies based on different market situation as well as customers response. This company will set up their tactical goals for being a strong position in the global market place. Depending on those issue factors The Coca- Cola Company is develop a Control Framework for their overall controlling of management for gaining over their customers by providing core satisfaction.

The End Questions?

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Strategic Management Issues of Multinational Companies (MNCs): A Case Study on Coca-Cola Company

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Strategic Management Issues of Multinational Companies (MNCs): A Case Study on Coca-Cola Company Presentation Transcript