SlideShare a Scribd company logo
1 of 9
Download to read offline
May 2016
Presentation by: Suddhwasattwa Mukherjee
 Worked for Ernst & Young LLP for 8 years as
a management consultant professional in the
Advisory Services (2008 – 2016)
 Working with ITC Infotech in the
Business Consulting Group (2016 onwards)
 Associated to Indian Institute of Foreign
Trade (IIFT) and IIM Lucknow through various
programmes
Management Case on Culture and Leadership with Ahmet C. Bozer’s example:
Coca-Cola’s Emerging Market Business Strategy, customization of the Global
strategies in alignment with responsiveness from Local Geography
Case Illustration of Coca-
Cola’s Emerging Market
Business Strategy with a
focus on the Local Needs
while maintaining a Global
Brand Strategy
 Ahmet C. Bozer, president of the Coca-Cola Company’s Eurasia and Africa
Group (till 2012), has spent his career demonstrating how a large international
company can build a strategy and structure itself to compete in emerging
markets.
 Played a key Leadership role in customizing the Global strategies of the
Company for implementation in the Emerging economies sensing the local
needs of the individual market.
 He has demonstrated an excellent leadership capability in maintaining Local
Relevance while also managing the Global brand values of Coca-Cola. This
excellent Leadership balance was translated into the Financial figures of the
Brand’s performance in the Emerging Geographies.
 The case is about Coca-Cola, the world’s largest Beverage company
who delegated major decision making to Individual markets, while
maintaining their Global brand strategy through collaborative
practices
 Coca-Cola’s Eurasia and Africa Group operations have been
considered as the ‘Regional’ territory and the Company’s Central
operation driven from Atlanta is considered as the point from where
the ‘Global’ Leadership is governed by. This is a 2012 Leadership
Case analysis for Coca-Cola
Context: Coca-Cola’s Emerging Market Business Strategy with a focus on the Local Needs
while maintaining a Global Brand Strategy
Regional Leadership under focus
In 2013 Bozer became the
Executive Vice-President
and President of Coca-
Cola International
Excellent Leadership
in translating Global
strategies in alignment
with the Local
responsiveness
Page 1
Agriculture and
Ingredient Sourcing
The Coca-Cola
Company
Bottling
Partners and
Distribution
 Bozer’s team kept control
on the Local sourcing
platform while coordinating
with the Global Team
 This resulted into supply
chain efficiency and better
control over the Supply
chain
Customers
Consumer,
Recycling and
Recovery
 Includes Concentrate
Development and all
Administrative Function of the
Headquarters
 Bozer’s team carried out the
operations from 6 Strategic
locations from different
Countries
 Franchise relations with the
Bottlers, Bozer’s Leadership
team used to make
decisions in the Local
context with the right speed.
 Extended financial support
to Local Bottlers and helped
in capacity building which
enhances Bottler’s efficiency
 Bozer’s team customized the
marketing strategy as per local
context (depending on the market
type) and maintained very good
consumer connect through
Outlets
 Kept the control of the Functional
team in his hand to come up with
market specific strategic plans
 Bozer’s team put a lot of
focus in products recycle
and recovery (closing the
loop back to their suppliers)
 Earner supplier’s confidence
Locally, resulted into
business benefit
Coca-Cola’s Geographic Orientation and Business Value Chain: Key intervention proposed
by Ahmet C. Bozer and his team across various segments of the Value Chain for best
possible Global-Local blend under his Leadership
North
America
Latin
America
Europe
Eurasia
+ Africa
Pacific
1 2 3 4 5
Regional President 4
Ahmet C. Bozer
Chairman and CEO
Regional
President 3
Regional
President 2
Regional
President 1
Regional
President 5
Coca-Cola’s Geographic
Orientation and Leadership
Reporting structure
(2012 structure to demonstrate
Ahmet C Bozer’s Local and Global
Leadership combination )
Page 2
How Coca-Cola under the Regional Leadership of Ahmet C. Bozer worked on finding out
the Best Local-Global combination for Eurasia and Africa
 Coca-Cola operates in a Franchise system. The
bottlers are primarily local. In Turkey, for example,
they have a Turkish bottler. So the effectiveness of
the company depends on the effectiveness of their
relationships with the Bottlers and their Brands. To
manage franchise relationships, it is crucial to have a
geographic orientation. Therefore the organization is
primarily Geographic.
Rationale behind Coca-Cola’s Geographic
Orientation for Sparkling Beverages Business
Sparkling
Beverages
Business
 Raw material costs are high and fluctuate a lot
 Business has opportunities to innovate more quickly;
Coca-Cola may introduce four or five new variants of
a juice in a given year. Thus, there is a matrix.
 A functional group in Atlanta is in charge of juices
worldwide, but they work through the Geographic
organizations.
Why Juice Business requires a different
Organization structure and Leadership approach ?
Juice
Business
 When it comes to Franchise relations
with the Bottlers, that is Local, the
Regional Leadership (Ahmet C.
Bozer’s Management Team) used to
make decisions in the Local context
with the right speed.
 Quality standards are both local
(adheres to all Local Government
Safety Regulations) and Global (own
Global, rigorous, Quality Control
Standards).
 Took advantage of Coca-Cola’s Global
properties and collaborate as a Global
team, bringing the best resources to
bear on a specific issue.
Key techniques followed by Bozer and
his Management Team in maintaining
the Local-Global combination for the
health of the Business
Page 3
Management of dramatic variations between Culture and Politics of Coca-Cola’s 90
Emerging markets under Bozer’s Leadership
Managing Variations in Culture and Politics in the
Emerging markets under Bozer’s Leadership
Managing Disagreement between the Field and the
Headquarters
 Coca-Cola under the Regional Leadership of C. Bozer
worked on managing the disagreements between
Fields and the Headquarters for many years.
 Bozer understood that nothing is as black-and-white
as they would like in this context. In one of his
Interviews he gave an example saying while he used
to hire a Function Leader, he used to be the ultimate
decision maker; but Bozer knew that any Function
Leader must operate as part of the global team. He or
she must be able to collaborate globally, and the
global organization has to be comfortable with that
candidate. As per Bozer, that is the point where
maturity is important. He used to emphasize on a
collaborative process because it makes the decision
better.
Functional team in
Istanbul (Turkey)
Global Team
(Atlanta)
Business Units (6 Units) in Eurasia and Africa
 Functional team in Istanbul with
Finance, Marketing, and
Strategy capabilities
 Functional team works as part
of the Global team to come up
with strategic plans for each
market
 Strategic plans are shared With
the Business Units to enrich
[the plans] and add value to
them by adapting them to their
own needs
Our culture is purely focused on making the right
choice, rather than defining my turf versus your turf.
That allows us to make these decisions quickly
Ahmet C. Bozer
“ “
Page 4
South
Africa
Kenya Turkey
Russia India Dubai
How Bozer’s Leadership made Coca-Cola as “Locally Relevant” in the Emerging Markets
 In relatively less-developed markets like India, Pakistan, sub-
Saharan Africa, Russia, and central Asia, those markets have very
low per capita consumption — for the whole industry. In India, just 4
or 5 percent of the beverages consumed are packaged. People drink
tap water, tea, and dairy; vendors squeeze juice on the street. When
people will have higher buying capacity and the middle class
emerges, demand for packaged beverages will increase.
 In that context, Coca-Cola’s strategy is not very complicated. They
knew how to grow “Brand Coke.” It’s about locally relevant brand
building with consumers — the right pricing and packaging, with
small packs, large packs, or take-home packs.
 The Company started placing new coolers in the market and invest
in people, putting “feet on the street,” and activate outlets one by
one. At the same time, there is a flourishing juice business and a
flourishing water business, and in some of the markets, teas and
energy drinks found to be developing.
Favourable scenario
in the Business
Landscape of
Eurasia and Africa
Scenario in
relatively less
developed markets
and Coca-Cola’s
strategy under the
Leadership of
C. Bozer to
penetrate into it
 In Bozer’s opinion (considering his views in 2012) projecting the
demographics of today into 2020, about half of the favorable
changes will be located in Eurasia and Africa: New entrants into the
middle class, An increase in the number of teenagers, Urbanization.
A few of these countries have very high per capita consumption of
Coca-Cola’s beverages. South Africa is about 250 drinks per year
per person, which is above the global average. Turkey is higher than
150.
South
Africa
250 Drinks
Turkey 150 Drinks
Per Capita per Year
Per Capita per Year
 Used very strong consumer
marketing teams
 Invested a lot in understanding the
psyche of the local consumer
 Good marketers in each country who
have access into consumer insight
data, and who work with very good
agencies, while at the same time
working with robust global processes
Key Strategies followed by Bozer’s
team to make Coca-Cola more “Locally
Relevant”
Page 5
Enhancement of Bottlers
capability and efficiency of
the Business value chain
Key strategy adopted by C.Bozer in supporting the Local Partners to enhance Business
Footprint: Adaptation to the different working styles and capabilities of the Business Partners
Centres of
Excellence for
knowledge
support
 Some of the Bottlers that operate in multiple countries
tend not to need Coca-Cola’s help. But there might be
some emerging area of knowledge — for example, about
how to do better category management, in which case
Coca-Cola has Centers of Excellence that the bottlers
can access.
 Bozer’s Management team reached out to the Bottlers to
demonstrate the cases of Best practices and supported
in building their capabilities to enhance their efficiency.
 His Team sometimes supported Bottlers financially as
well, this used to be case specific and was a part of fairly
aggressive growth plan and when wanted to invest in
marketing to build the brands with more intensity.
Supporting the Local Partners to ensure Business
Growth
Best practice
showcase
and support in
capacity
building
Financial
support to the
Bottlers
Key Outcome…
 Partnering with the Bottlers is the bread and butter of Coca-
Cola’s business: being effective with the partnerships. Coca-
Cola’s Eurasia and Africa’s partners may be multi-country
bottlers, or they may operate within a single country. They
may be public or private. In some countries Bozer’s team
work with multiple bottlers to keep multiple options open.
 With each one, Bozer’s team first establish a shared vision.
In 2012 Coca-Cola had a one-page road map that portrays
a very clear destination for 2020, a clear framework about
their strategic pillars and metrics. That road map was
actually prepared with their bottlers. It guided all their
business planning.
 Bozer’s team focused on the capability development of the
Bottlers. Aim was to create value for the overall system of
the Coca-Cola Company and its bottlers, not just
themselves. Otherwise, the system would not have been
sustainable in terms of results.
 One of the best examples is their Bottler in Turkey,
which Mr. Bozer himself used to run. The bottler was built
by the Coca-Cola Company and sold to a local shareholder
who now owns a majority. It’s a public company with a
market value of more than €2.5 billion (US$3.5 billion). It
has great alignment with the Coca-Cola Company. It is now
10 times the size of when it started in 1994. This model
worked and was replicated
Page 6
Focusing on Reverse Innovation: Taking innovative ideas from a Local Group and applying in
other Markets
Solar Power Coolers
Indian Market
1
One innovation that came
out of India is the solar-
powered coolers. Bozer’s
Team expanded that to
other geographies. They
capitalized by successfully
replicating the same in other
Markets
Product that showed promise
is Minute Maid’s Pulpy, an
orange juice with pulp that did
extremely well in China.
Bozer’s team expanded it into
many other countries.
Minute Maid’s
Pulpy
Chinese Market
2
Bozer’s team had taken
communications elsewhere.
Turkey, for example, had a
very successful Ramadan
communication to celebrate the
Holy month in Muslim
countries. They took that to
other Muslim countries in their
group.
Taking
Communications
elsewhere
Middle East
3
Identifying the Right
mix of people for his
Leadership team
Identifying the Right
people
 Critical Experience
 Functional Competency
 Optimism
Right mix of Management team clicked
under Ahmet C. Bozer’s Leadership
On Bozer’s Group Leadership team of 18
people, he had 12 nationalities represented,
including individuals from Zimbabwe,
Scotland, the United States, Turkey, South
Africa, India, Croatia, and elsewhere.
The most important
competency is leadership. It
takes very strong leadership to
be able to explain the
environment, establish a
vision, and rally the troops.
Command and control, in most
cases, does not work. If you
try to control everything, the
system won’t work.
Ahmet C. Bozer
“
“
84%
16%
Other Geographies Eurasia and Africa
Eurasia and Africa Territory accounted
for 16% of Coke’s sales in 2012
For a Retail
value of
US$10 Billion
Page 7
Thank You
Presentation by: Suddhwasattwa Mukherjee
Email: mukherjee_suddhwa@yahoo.co.in
Phone: +91 9830135111 (M)

More Related Content

Viewers also liked

Creating An Effective Performance Management Culture - Meshari Al Banna, Duba...
Creating An Effective Performance Management Culture - Meshari Al Banna, Duba...Creating An Effective Performance Management Culture - Meshari Al Banna, Duba...
Creating An Effective Performance Management Culture - Meshari Al Banna, Duba...The HR Observer
 
Managing HR and Culture Integration During Mergers and Acquisitions
Managing HR and Culture Integration During Mergers and Acquisitions Managing HR and Culture Integration During Mergers and Acquisitions
Managing HR and Culture Integration During Mergers and Acquisitions Argyle Executive Forum
 
Mergers acquisitions the_role_of_hrm
Mergers acquisitions the_role_of_hrmMergers acquisitions the_role_of_hrm
Mergers acquisitions the_role_of_hrmnimbargiparvati
 
HR challenges in mergers & acquistions
HR challenges in mergers & acquistionsHR challenges in mergers & acquistions
HR challenges in mergers & acquistionsSelf-employed
 
Organizational effectiveness
Organizational effectivenessOrganizational effectiveness
Organizational effectivenessMeyliboy Mayliev
 
Learning Organizations: Strategic Management
Learning Organizations: Strategic ManagementLearning Organizations: Strategic Management
Learning Organizations: Strategic ManagementTriune Global
 
Human Resource Aspect of Mergers and Acquisition - Presentation - Karim Virani
Human Resource Aspect of Mergers and Acquisition - Presentation - Karim ViraniHuman Resource Aspect of Mergers and Acquisition - Presentation - Karim Virani
Human Resource Aspect of Mergers and Acquisition - Presentation - Karim ViraniKarim Virani
 
Role of hrm in merger and acqusition
Role of hrm in merger and acqusitionRole of hrm in merger and acqusition
Role of hrm in merger and acqusitionBharati Vidyapeeth
 
Organizational Effectiveness
Organizational EffectivenessOrganizational Effectiveness
Organizational EffectivenessDewasish Ghoshal
 
Organizational Effectiveness
Organizational Effectiveness Organizational Effectiveness
Organizational Effectiveness parags06
 
Organization Effectiveness Final
Organization Effectiveness FinalOrganization Effectiveness Final
Organization Effectiveness Finalsnehtizoro
 
Global human resource management
Global human resource managementGlobal human resource management
Global human resource managementCitibank N.A.
 
International Human Resource Managment
International Human Resource ManagmentInternational Human Resource Managment
International Human Resource Managmentbinotrisha
 
Employee Engagement A To Z Slides
Employee Engagement A To Z SlidesEmployee Engagement A To Z Slides
Employee Engagement A To Z SlidesDavid Zinger
 

Viewers also liked (20)

Creating An Effective Performance Management Culture - Meshari Al Banna, Duba...
Creating An Effective Performance Management Culture - Meshari Al Banna, Duba...Creating An Effective Performance Management Culture - Meshari Al Banna, Duba...
Creating An Effective Performance Management Culture - Meshari Al Banna, Duba...
 
The globe framework for assessing culture
The globe framework for assessing cultureThe globe framework for assessing culture
The globe framework for assessing culture
 
Managing HR and Culture Integration During Mergers and Acquisitions
Managing HR and Culture Integration During Mergers and Acquisitions Managing HR and Culture Integration During Mergers and Acquisitions
Managing HR and Culture Integration During Mergers and Acquisitions
 
Mergers acquisitions the_role_of_hrm
Mergers acquisitions the_role_of_hrmMergers acquisitions the_role_of_hrm
Mergers acquisitions the_role_of_hrm
 
Hr issues in mergers & acquisitions gcm
Hr  issues in mergers & acquisitions gcmHr  issues in mergers & acquisitions gcm
Hr issues in mergers & acquisitions gcm
 
HR challenges in mergers & acquistions
HR challenges in mergers & acquistionsHR challenges in mergers & acquistions
HR challenges in mergers & acquistions
 
Organizational effectiveness
Organizational effectivenessOrganizational effectiveness
Organizational effectiveness
 
Learning Organizations: Strategic Management
Learning Organizations: Strategic ManagementLearning Organizations: Strategic Management
Learning Organizations: Strategic Management
 
Human Resource Aspect of Mergers and Acquisition - Presentation - Karim Virani
Human Resource Aspect of Mergers and Acquisition - Presentation - Karim ViraniHuman Resource Aspect of Mergers and Acquisition - Presentation - Karim Virani
Human Resource Aspect of Mergers and Acquisition - Presentation - Karim Virani
 
Role of hrm in merger and acqusition
Role of hrm in merger and acqusitionRole of hrm in merger and acqusition
Role of hrm in merger and acqusition
 
Organizational Effectiveness
Organizational EffectivenessOrganizational Effectiveness
Organizational Effectiveness
 
Organizational Effectiveness
Organizational Effectiveness Organizational Effectiveness
Organizational Effectiveness
 
Organization Effectiveness Final
Organization Effectiveness FinalOrganization Effectiveness Final
Organization Effectiveness Final
 
Organizational effectiveness
Organizational effectivenessOrganizational effectiveness
Organizational effectiveness
 
Introduction to international HRM
Introduction to international HRMIntroduction to international HRM
Introduction to international HRM
 
Global human resource management
Global human resource managementGlobal human resource management
Global human resource management
 
International hrm
International hrmInternational hrm
International hrm
 
International Human Resource Managment
International Human Resource ManagmentInternational Human Resource Managment
International Human Resource Managment
 
Employee Engagement A To Z Slides
Employee Engagement A To Z SlidesEmployee Engagement A To Z Slides
Employee Engagement A To Z Slides
 
Employee Engagement
Employee EngagementEmployee Engagement
Employee Engagement
 

Similar to Management Case on Culture and Leadership with Coca-Cola's Bozer's example: Customization of global strategies in alignment with local responsiveness

Marketing in a Global Environment
Marketing in a Global EnvironmentMarketing in a Global Environment
Marketing in a Global EnvironmentMartha Starnes
 
InstructionI have 2questions to answer and Will you please answe.docx
InstructionI have 2questions to answer and Will you please answe.docxInstructionI have 2questions to answer and Will you please answe.docx
InstructionI have 2questions to answer and Will you please answe.docxcarliotwaycave
 
Cocacola (EPRG Model and Level of Strategic Planning)
Cocacola (EPRG Model and Level of Strategic Planning)Cocacola (EPRG Model and Level of Strategic Planning)
Cocacola (EPRG Model and Level of Strategic Planning)Swagatika Patra
 
Project report im coke cola
Project report im coke colaProject report im coke cola
Project report im coke colaHITESH BHARTI
 
coca cola markting project
coca cola markting projectcoca cola markting project
coca cola markting projectAqsa Nawab
 
GROUP-5-mckinsy-7s.pptx
GROUP-5-mckinsy-7s.pptxGROUP-5-mckinsy-7s.pptx
GROUP-5-mckinsy-7s.pptxNamHyun2
 
Business_Strategy_of_Jollibee.pdf
Business_Strategy_of_Jollibee.pdfBusiness_Strategy_of_Jollibee.pdf
Business_Strategy_of_Jollibee.pdfRishabhSarawagi2
 
Global marketing Strategies (McDonald’s)
Global marketing Strategies (McDonald’s)Global marketing Strategies (McDonald’s)
Global marketing Strategies (McDonald’s)waQas ilYas
 
Coca-Cola Strategic Analysis ImplementationSTR581.docx
Coca-Cola Strategic Analysis ImplementationSTR581.docxCoca-Cola Strategic Analysis ImplementationSTR581.docx
Coca-Cola Strategic Analysis ImplementationSTR581.docxclarebernice
 
Strategic management case study coca
Strategic management case study cocaStrategic management case study coca
Strategic management case study cocaWasim Abbas
 
Marketing Presentation on Coca Cola
Marketing Presentation on Coca ColaMarketing Presentation on Coca Cola
Marketing Presentation on Coca ColaShubham Kakkar
 
Ravi Dawar Resume 251115
Ravi Dawar Resume 251115Ravi Dawar Resume 251115
Ravi Dawar Resume 251115Ravi Dawar
 
strategic management of coca cola
strategic management of coca colastrategic management of coca cola
strategic management of coca colaVanita Agrawal
 
Marketing strategy of coca cola
Marketing strategy of  coca colaMarketing strategy of  coca cola
Marketing strategy of coca colaMahesh Kadam
 
Marketing project 2nd sym 2021-2025.docx
Marketing project 2nd sym 2021-2025.docxMarketing project 2nd sym 2021-2025.docx
Marketing project 2nd sym 2021-2025.docxMuhammadUsama945807
 
Running head COMPANY OVERVIEW1COMPANY OVERVIEW5.docx
Running head COMPANY OVERVIEW1COMPANY OVERVIEW5.docxRunning head COMPANY OVERVIEW1COMPANY OVERVIEW5.docx
Running head COMPANY OVERVIEW1COMPANY OVERVIEW5.docxsusanschei
 
Pepsi hajipur marketing
Pepsi hajipur marketingPepsi hajipur marketing
Pepsi hajipur marketingSonu Kumar
 
Running head STRATEGIC MANAGEMENT2STRATEGIC MANAGEMENT2.docx
Running head STRATEGIC MANAGEMENT2STRATEGIC MANAGEMENT2.docxRunning head STRATEGIC MANAGEMENT2STRATEGIC MANAGEMENT2.docx
Running head STRATEGIC MANAGEMENT2STRATEGIC MANAGEMENT2.docxtodd521
 

Similar to Management Case on Culture and Leadership with Coca-Cola's Bozer's example: Customization of global strategies in alignment with local responsiveness (20)

Marketing in a Global Environment
Marketing in a Global EnvironmentMarketing in a Global Environment
Marketing in a Global Environment
 
InstructionI have 2questions to answer and Will you please answe.docx
InstructionI have 2questions to answer and Will you please answe.docxInstructionI have 2questions to answer and Will you please answe.docx
InstructionI have 2questions to answer and Will you please answe.docx
 
Project Accounting 2
Project Accounting 2Project Accounting 2
Project Accounting 2
 
Cocacola (EPRG Model and Level of Strategic Planning)
Cocacola (EPRG Model and Level of Strategic Planning)Cocacola (EPRG Model and Level of Strategic Planning)
Cocacola (EPRG Model and Level of Strategic Planning)
 
Project report im coke cola
Project report im coke colaProject report im coke cola
Project report im coke cola
 
coca cola markting project
coca cola markting projectcoca cola markting project
coca cola markting project
 
GROUP-5-mckinsy-7s.pptx
GROUP-5-mckinsy-7s.pptxGROUP-5-mckinsy-7s.pptx
GROUP-5-mckinsy-7s.pptx
 
Business_Strategy_of_Jollibee.pdf
Business_Strategy_of_Jollibee.pdfBusiness_Strategy_of_Jollibee.pdf
Business_Strategy_of_Jollibee.pdf
 
Global marketing Strategies (McDonald’s)
Global marketing Strategies (McDonald’s)Global marketing Strategies (McDonald’s)
Global marketing Strategies (McDonald’s)
 
Coca-Cola Strategic Analysis ImplementationSTR581.docx
Coca-Cola Strategic Analysis ImplementationSTR581.docxCoca-Cola Strategic Analysis ImplementationSTR581.docx
Coca-Cola Strategic Analysis ImplementationSTR581.docx
 
Strategic management case study coca
Strategic management case study cocaStrategic management case study coca
Strategic management case study coca
 
Marketing Presentation on Coca Cola
Marketing Presentation on Coca ColaMarketing Presentation on Coca Cola
Marketing Presentation on Coca Cola
 
Ravi Dawar Resume 251115
Ravi Dawar Resume 251115Ravi Dawar Resume 251115
Ravi Dawar Resume 251115
 
strategic management of coca cola
strategic management of coca colastrategic management of coca cola
strategic management of coca cola
 
Marketing strategy of coca cola
Marketing strategy of  coca colaMarketing strategy of  coca cola
Marketing strategy of coca cola
 
Marketing project 2nd sym 2021-2025.docx
Marketing project 2nd sym 2021-2025.docxMarketing project 2nd sym 2021-2025.docx
Marketing project 2nd sym 2021-2025.docx
 
Running head COMPANY OVERVIEW1COMPANY OVERVIEW5.docx
Running head COMPANY OVERVIEW1COMPANY OVERVIEW5.docxRunning head COMPANY OVERVIEW1COMPANY OVERVIEW5.docx
Running head COMPANY OVERVIEW1COMPANY OVERVIEW5.docx
 
Pepsi hajipur marketing
Pepsi hajipur marketingPepsi hajipur marketing
Pepsi hajipur marketing
 
Running head STRATEGIC MANAGEMENT2STRATEGIC MANAGEMENT2.docx
Running head STRATEGIC MANAGEMENT2STRATEGIC MANAGEMENT2.docxRunning head STRATEGIC MANAGEMENT2STRATEGIC MANAGEMENT2.docx
Running head STRATEGIC MANAGEMENT2STRATEGIC MANAGEMENT2.docx
 
Eprg model
Eprg modelEprg model
Eprg model
 

Recently uploaded

Critical thinking categorical syllogism pptx
Critical thinking categorical syllogism pptxCritical thinking categorical syllogism pptx
Critical thinking categorical syllogism pptxcalinagavris17
 
Yokoten: Enhancing Performance through Best Practice Sharing
Yokoten: Enhancing Performance through Best Practice SharingYokoten: Enhancing Performance through Best Practice Sharing
Yokoten: Enhancing Performance through Best Practice SharingCIToolkit
 
Management and optimization of information flows-EN.pdf
Management and optimization of information flows-EN.pdfManagement and optimization of information flows-EN.pdf
Management and optimization of information flows-EN.pdfGeorgeDiamandis11
 
BIGDATA-DIGITAL TRANSFORMATION AND STRATEGY
BIGDATA-DIGITAL TRANSFORMATION AND STRATEGYBIGDATA-DIGITAL TRANSFORMATION AND STRATEGY
BIGDATA-DIGITAL TRANSFORMATION AND STRATEGYGeorgeDiamandis11
 
Overview PMI Infinity - UK Chapter presentation
Overview PMI Infinity - UK Chapter presentationOverview PMI Infinity - UK Chapter presentation
Overview PMI Infinity - UK Chapter presentationPMIUKChapter
 
The Main Components of an Effective Visual Management System
The Main Components of an Effective Visual Management SystemThe Main Components of an Effective Visual Management System
The Main Components of an Effective Visual Management SystemCIToolkit
 
Process Charts and Process Sequence Charts: Tools for Process Improvement
Process Charts and Process Sequence Charts: Tools for Process ImprovementProcess Charts and Process Sequence Charts: Tools for Process Improvement
Process Charts and Process Sequence Charts: Tools for Process ImprovementCIToolkit
 
Leading meetings effectively: the secrets of authentic leadership
Leading meetings effectively: the secrets of authentic leadershipLeading meetings effectively: the secrets of authentic leadership
Leading meetings effectively: the secrets of authentic leadershipAndrea Mennillo
 
5 years Business Plan for EParivahan.com
5 years Business Plan for EParivahan.com5 years Business Plan for EParivahan.com
5 years Business Plan for EParivahan.comDEEPRAJ PATHAK
 
WHO Foresight Approaches in Public Health.pdf
WHO Foresight Approaches in Public Health.pdfWHO Foresight Approaches in Public Health.pdf
WHO Foresight Approaches in Public Health.pdfWendy Schultz
 
Value Analysis: How Lean Thinking Defines Value
Value Analysis: How Lean Thinking Defines ValueValue Analysis: How Lean Thinking Defines Value
Value Analysis: How Lean Thinking Defines ValueCIToolkit
 
Leveraging Gap Analysis for Continuous Improvement
Leveraging Gap Analysis for Continuous ImprovementLeveraging Gap Analysis for Continuous Improvement
Leveraging Gap Analysis for Continuous ImprovementCIToolkit
 
BoSEU24 | Bob Moesta | Live JTBD Case Studies + Problem Shooting
BoSEU24 | Bob Moesta | Live JTBD Case Studies + Problem ShootingBoSEU24 | Bob Moesta | Live JTBD Case Studies + Problem Shooting
BoSEU24 | Bob Moesta | Live JTBD Case Studies + Problem ShootingBusiness of Software Conference
 
The Role of Histograms in Exploring Data Insights
The Role of Histograms in Exploring Data InsightsThe Role of Histograms in Exploring Data Insights
The Role of Histograms in Exploring Data InsightsCIToolkit
 
Achieving Business and Personal Goals with SWOT Analysis
Achieving Business and Personal Goals with SWOT AnalysisAchieving Business and Personal Goals with SWOT Analysis
Achieving Business and Personal Goals with SWOT AnalysisCIToolkit
 
2.DATAMANAGEMENT-DIGITAL TRANSFORMATION AND STRATEGY
2.DATAMANAGEMENT-DIGITAL TRANSFORMATION AND STRATEGY2.DATAMANAGEMENT-DIGITAL TRANSFORMATION AND STRATEGY
2.DATAMANAGEMENT-DIGITAL TRANSFORMATION AND STRATEGYGeorgeDiamandis11
 
BoSON23 | Alex Osterwalder | Coaching & Leadership in Remote Companies
BoSON23 | Alex Osterwalder | Coaching & Leadership in Remote CompaniesBoSON23 | Alex Osterwalder | Coaching & Leadership in Remote Companies
BoSON23 | Alex Osterwalder | Coaching & Leadership in Remote CompaniesBusiness of Software Conference
 

Recently uploaded (20)

Critical thinking categorical syllogism pptx
Critical thinking categorical syllogism pptxCritical thinking categorical syllogism pptx
Critical thinking categorical syllogism pptx
 
BoSEU24 | Joe Leech | Seven Traits of the Modern CEO
BoSEU24 | Joe Leech | Seven Traits of the Modern CEOBoSEU24 | Joe Leech | Seven Traits of the Modern CEO
BoSEU24 | Joe Leech | Seven Traits of the Modern CEO
 
Yokoten: Enhancing Performance through Best Practice Sharing
Yokoten: Enhancing Performance through Best Practice SharingYokoten: Enhancing Performance through Best Practice Sharing
Yokoten: Enhancing Performance through Best Practice Sharing
 
Management and optimization of information flows-EN.pdf
Management and optimization of information flows-EN.pdfManagement and optimization of information flows-EN.pdf
Management and optimization of information flows-EN.pdf
 
BIGDATA-DIGITAL TRANSFORMATION AND STRATEGY
BIGDATA-DIGITAL TRANSFORMATION AND STRATEGYBIGDATA-DIGITAL TRANSFORMATION AND STRATEGY
BIGDATA-DIGITAL TRANSFORMATION AND STRATEGY
 
Overview PMI Infinity - UK Chapter presentation
Overview PMI Infinity - UK Chapter presentationOverview PMI Infinity - UK Chapter presentation
Overview PMI Infinity - UK Chapter presentation
 
The Main Components of an Effective Visual Management System
The Main Components of an Effective Visual Management SystemThe Main Components of an Effective Visual Management System
The Main Components of an Effective Visual Management System
 
Process Charts and Process Sequence Charts: Tools for Process Improvement
Process Charts and Process Sequence Charts: Tools for Process ImprovementProcess Charts and Process Sequence Charts: Tools for Process Improvement
Process Charts and Process Sequence Charts: Tools for Process Improvement
 
Leading meetings effectively: the secrets of authentic leadership
Leading meetings effectively: the secrets of authentic leadershipLeading meetings effectively: the secrets of authentic leadership
Leading meetings effectively: the secrets of authentic leadership
 
5 years Business Plan for EParivahan.com
5 years Business Plan for EParivahan.com5 years Business Plan for EParivahan.com
5 years Business Plan for EParivahan.com
 
WHO Foresight Approaches in Public Health.pdf
WHO Foresight Approaches in Public Health.pdfWHO Foresight Approaches in Public Health.pdf
WHO Foresight Approaches in Public Health.pdf
 
Value Analysis: How Lean Thinking Defines Value
Value Analysis: How Lean Thinking Defines ValueValue Analysis: How Lean Thinking Defines Value
Value Analysis: How Lean Thinking Defines Value
 
Leveraging Gap Analysis for Continuous Improvement
Leveraging Gap Analysis for Continuous ImprovementLeveraging Gap Analysis for Continuous Improvement
Leveraging Gap Analysis for Continuous Improvement
 
BoSEU24 | Bob Moesta | Live JTBD Case Studies + Problem Shooting
BoSEU24 | Bob Moesta | Live JTBD Case Studies + Problem ShootingBoSEU24 | Bob Moesta | Live JTBD Case Studies + Problem Shooting
BoSEU24 | Bob Moesta | Live JTBD Case Studies + Problem Shooting
 
The Role of Histograms in Exploring Data Insights
The Role of Histograms in Exploring Data InsightsThe Role of Histograms in Exploring Data Insights
The Role of Histograms in Exploring Data Insights
 
BoSEU24 | Bruce McCarthy | Aligning Executive Teams
BoSEU24 | Bruce McCarthy | Aligning Executive TeamsBoSEU24 | Bruce McCarthy | Aligning Executive Teams
BoSEU24 | Bruce McCarthy | Aligning Executive Teams
 
Achieving Business and Personal Goals with SWOT Analysis
Achieving Business and Personal Goals with SWOT AnalysisAchieving Business and Personal Goals with SWOT Analysis
Achieving Business and Personal Goals with SWOT Analysis
 
2.DATAMANAGEMENT-DIGITAL TRANSFORMATION AND STRATEGY
2.DATAMANAGEMENT-DIGITAL TRANSFORMATION AND STRATEGY2.DATAMANAGEMENT-DIGITAL TRANSFORMATION AND STRATEGY
2.DATAMANAGEMENT-DIGITAL TRANSFORMATION AND STRATEGY
 
BoSON23 | Alex Osterwalder | Coaching & Leadership in Remote Companies
BoSON23 | Alex Osterwalder | Coaching & Leadership in Remote CompaniesBoSON23 | Alex Osterwalder | Coaching & Leadership in Remote Companies
BoSON23 | Alex Osterwalder | Coaching & Leadership in Remote Companies
 
BoSEU24 | Ninnu Campbell | How to Make People Fail
BoSEU24 | Ninnu Campbell | How to Make People FailBoSEU24 | Ninnu Campbell | How to Make People Fail
BoSEU24 | Ninnu Campbell | How to Make People Fail
 

Management Case on Culture and Leadership with Coca-Cola's Bozer's example: Customization of global strategies in alignment with local responsiveness

  • 1. May 2016 Presentation by: Suddhwasattwa Mukherjee  Worked for Ernst & Young LLP for 8 years as a management consultant professional in the Advisory Services (2008 – 2016)  Working with ITC Infotech in the Business Consulting Group (2016 onwards)  Associated to Indian Institute of Foreign Trade (IIFT) and IIM Lucknow through various programmes Management Case on Culture and Leadership with Ahmet C. Bozer’s example: Coca-Cola’s Emerging Market Business Strategy, customization of the Global strategies in alignment with responsiveness from Local Geography
  • 2. Case Illustration of Coca- Cola’s Emerging Market Business Strategy with a focus on the Local Needs while maintaining a Global Brand Strategy  Ahmet C. Bozer, president of the Coca-Cola Company’s Eurasia and Africa Group (till 2012), has spent his career demonstrating how a large international company can build a strategy and structure itself to compete in emerging markets.  Played a key Leadership role in customizing the Global strategies of the Company for implementation in the Emerging economies sensing the local needs of the individual market.  He has demonstrated an excellent leadership capability in maintaining Local Relevance while also managing the Global brand values of Coca-Cola. This excellent Leadership balance was translated into the Financial figures of the Brand’s performance in the Emerging Geographies.  The case is about Coca-Cola, the world’s largest Beverage company who delegated major decision making to Individual markets, while maintaining their Global brand strategy through collaborative practices  Coca-Cola’s Eurasia and Africa Group operations have been considered as the ‘Regional’ territory and the Company’s Central operation driven from Atlanta is considered as the point from where the ‘Global’ Leadership is governed by. This is a 2012 Leadership Case analysis for Coca-Cola Context: Coca-Cola’s Emerging Market Business Strategy with a focus on the Local Needs while maintaining a Global Brand Strategy Regional Leadership under focus In 2013 Bozer became the Executive Vice-President and President of Coca- Cola International Excellent Leadership in translating Global strategies in alignment with the Local responsiveness Page 1
  • 3. Agriculture and Ingredient Sourcing The Coca-Cola Company Bottling Partners and Distribution  Bozer’s team kept control on the Local sourcing platform while coordinating with the Global Team  This resulted into supply chain efficiency and better control over the Supply chain Customers Consumer, Recycling and Recovery  Includes Concentrate Development and all Administrative Function of the Headquarters  Bozer’s team carried out the operations from 6 Strategic locations from different Countries  Franchise relations with the Bottlers, Bozer’s Leadership team used to make decisions in the Local context with the right speed.  Extended financial support to Local Bottlers and helped in capacity building which enhances Bottler’s efficiency  Bozer’s team customized the marketing strategy as per local context (depending on the market type) and maintained very good consumer connect through Outlets  Kept the control of the Functional team in his hand to come up with market specific strategic plans  Bozer’s team put a lot of focus in products recycle and recovery (closing the loop back to their suppliers)  Earner supplier’s confidence Locally, resulted into business benefit Coca-Cola’s Geographic Orientation and Business Value Chain: Key intervention proposed by Ahmet C. Bozer and his team across various segments of the Value Chain for best possible Global-Local blend under his Leadership North America Latin America Europe Eurasia + Africa Pacific 1 2 3 4 5 Regional President 4 Ahmet C. Bozer Chairman and CEO Regional President 3 Regional President 2 Regional President 1 Regional President 5 Coca-Cola’s Geographic Orientation and Leadership Reporting structure (2012 structure to demonstrate Ahmet C Bozer’s Local and Global Leadership combination ) Page 2
  • 4. How Coca-Cola under the Regional Leadership of Ahmet C. Bozer worked on finding out the Best Local-Global combination for Eurasia and Africa  Coca-Cola operates in a Franchise system. The bottlers are primarily local. In Turkey, for example, they have a Turkish bottler. So the effectiveness of the company depends on the effectiveness of their relationships with the Bottlers and their Brands. To manage franchise relationships, it is crucial to have a geographic orientation. Therefore the organization is primarily Geographic. Rationale behind Coca-Cola’s Geographic Orientation for Sparkling Beverages Business Sparkling Beverages Business  Raw material costs are high and fluctuate a lot  Business has opportunities to innovate more quickly; Coca-Cola may introduce four or five new variants of a juice in a given year. Thus, there is a matrix.  A functional group in Atlanta is in charge of juices worldwide, but they work through the Geographic organizations. Why Juice Business requires a different Organization structure and Leadership approach ? Juice Business  When it comes to Franchise relations with the Bottlers, that is Local, the Regional Leadership (Ahmet C. Bozer’s Management Team) used to make decisions in the Local context with the right speed.  Quality standards are both local (adheres to all Local Government Safety Regulations) and Global (own Global, rigorous, Quality Control Standards).  Took advantage of Coca-Cola’s Global properties and collaborate as a Global team, bringing the best resources to bear on a specific issue. Key techniques followed by Bozer and his Management Team in maintaining the Local-Global combination for the health of the Business Page 3
  • 5. Management of dramatic variations between Culture and Politics of Coca-Cola’s 90 Emerging markets under Bozer’s Leadership Managing Variations in Culture and Politics in the Emerging markets under Bozer’s Leadership Managing Disagreement between the Field and the Headquarters  Coca-Cola under the Regional Leadership of C. Bozer worked on managing the disagreements between Fields and the Headquarters for many years.  Bozer understood that nothing is as black-and-white as they would like in this context. In one of his Interviews he gave an example saying while he used to hire a Function Leader, he used to be the ultimate decision maker; but Bozer knew that any Function Leader must operate as part of the global team. He or she must be able to collaborate globally, and the global organization has to be comfortable with that candidate. As per Bozer, that is the point where maturity is important. He used to emphasize on a collaborative process because it makes the decision better. Functional team in Istanbul (Turkey) Global Team (Atlanta) Business Units (6 Units) in Eurasia and Africa  Functional team in Istanbul with Finance, Marketing, and Strategy capabilities  Functional team works as part of the Global team to come up with strategic plans for each market  Strategic plans are shared With the Business Units to enrich [the plans] and add value to them by adapting them to their own needs Our culture is purely focused on making the right choice, rather than defining my turf versus your turf. That allows us to make these decisions quickly Ahmet C. Bozer “ “ Page 4 South Africa Kenya Turkey Russia India Dubai
  • 6. How Bozer’s Leadership made Coca-Cola as “Locally Relevant” in the Emerging Markets  In relatively less-developed markets like India, Pakistan, sub- Saharan Africa, Russia, and central Asia, those markets have very low per capita consumption — for the whole industry. In India, just 4 or 5 percent of the beverages consumed are packaged. People drink tap water, tea, and dairy; vendors squeeze juice on the street. When people will have higher buying capacity and the middle class emerges, demand for packaged beverages will increase.  In that context, Coca-Cola’s strategy is not very complicated. They knew how to grow “Brand Coke.” It’s about locally relevant brand building with consumers — the right pricing and packaging, with small packs, large packs, or take-home packs.  The Company started placing new coolers in the market and invest in people, putting “feet on the street,” and activate outlets one by one. At the same time, there is a flourishing juice business and a flourishing water business, and in some of the markets, teas and energy drinks found to be developing. Favourable scenario in the Business Landscape of Eurasia and Africa Scenario in relatively less developed markets and Coca-Cola’s strategy under the Leadership of C. Bozer to penetrate into it  In Bozer’s opinion (considering his views in 2012) projecting the demographics of today into 2020, about half of the favorable changes will be located in Eurasia and Africa: New entrants into the middle class, An increase in the number of teenagers, Urbanization. A few of these countries have very high per capita consumption of Coca-Cola’s beverages. South Africa is about 250 drinks per year per person, which is above the global average. Turkey is higher than 150. South Africa 250 Drinks Turkey 150 Drinks Per Capita per Year Per Capita per Year  Used very strong consumer marketing teams  Invested a lot in understanding the psyche of the local consumer  Good marketers in each country who have access into consumer insight data, and who work with very good agencies, while at the same time working with robust global processes Key Strategies followed by Bozer’s team to make Coca-Cola more “Locally Relevant” Page 5
  • 7. Enhancement of Bottlers capability and efficiency of the Business value chain Key strategy adopted by C.Bozer in supporting the Local Partners to enhance Business Footprint: Adaptation to the different working styles and capabilities of the Business Partners Centres of Excellence for knowledge support  Some of the Bottlers that operate in multiple countries tend not to need Coca-Cola’s help. But there might be some emerging area of knowledge — for example, about how to do better category management, in which case Coca-Cola has Centers of Excellence that the bottlers can access.  Bozer’s Management team reached out to the Bottlers to demonstrate the cases of Best practices and supported in building their capabilities to enhance their efficiency.  His Team sometimes supported Bottlers financially as well, this used to be case specific and was a part of fairly aggressive growth plan and when wanted to invest in marketing to build the brands with more intensity. Supporting the Local Partners to ensure Business Growth Best practice showcase and support in capacity building Financial support to the Bottlers Key Outcome…  Partnering with the Bottlers is the bread and butter of Coca- Cola’s business: being effective with the partnerships. Coca- Cola’s Eurasia and Africa’s partners may be multi-country bottlers, or they may operate within a single country. They may be public or private. In some countries Bozer’s team work with multiple bottlers to keep multiple options open.  With each one, Bozer’s team first establish a shared vision. In 2012 Coca-Cola had a one-page road map that portrays a very clear destination for 2020, a clear framework about their strategic pillars and metrics. That road map was actually prepared with their bottlers. It guided all their business planning.  Bozer’s team focused on the capability development of the Bottlers. Aim was to create value for the overall system of the Coca-Cola Company and its bottlers, not just themselves. Otherwise, the system would not have been sustainable in terms of results.  One of the best examples is their Bottler in Turkey, which Mr. Bozer himself used to run. The bottler was built by the Coca-Cola Company and sold to a local shareholder who now owns a majority. It’s a public company with a market value of more than €2.5 billion (US$3.5 billion). It has great alignment with the Coca-Cola Company. It is now 10 times the size of when it started in 1994. This model worked and was replicated Page 6
  • 8. Focusing on Reverse Innovation: Taking innovative ideas from a Local Group and applying in other Markets Solar Power Coolers Indian Market 1 One innovation that came out of India is the solar- powered coolers. Bozer’s Team expanded that to other geographies. They capitalized by successfully replicating the same in other Markets Product that showed promise is Minute Maid’s Pulpy, an orange juice with pulp that did extremely well in China. Bozer’s team expanded it into many other countries. Minute Maid’s Pulpy Chinese Market 2 Bozer’s team had taken communications elsewhere. Turkey, for example, had a very successful Ramadan communication to celebrate the Holy month in Muslim countries. They took that to other Muslim countries in their group. Taking Communications elsewhere Middle East 3 Identifying the Right mix of people for his Leadership team Identifying the Right people  Critical Experience  Functional Competency  Optimism Right mix of Management team clicked under Ahmet C. Bozer’s Leadership On Bozer’s Group Leadership team of 18 people, he had 12 nationalities represented, including individuals from Zimbabwe, Scotland, the United States, Turkey, South Africa, India, Croatia, and elsewhere. The most important competency is leadership. It takes very strong leadership to be able to explain the environment, establish a vision, and rally the troops. Command and control, in most cases, does not work. If you try to control everything, the system won’t work. Ahmet C. Bozer “ “ 84% 16% Other Geographies Eurasia and Africa Eurasia and Africa Territory accounted for 16% of Coke’s sales in 2012 For a Retail value of US$10 Billion Page 7
  • 9. Thank You Presentation by: Suddhwasattwa Mukherjee Email: mukherjee_suddhwa@yahoo.co.in Phone: +91 9830135111 (M)