3. Issues in Strategic Management:
• Changes in management put strain on the organizational structure
• New managers may be unfamiliar with the current way the
organizational structure
• Changes in managerial style according to the present era; become tough
for old and unskilled workers
• Smooth adaptability of modern technologies is a big issue for larger
organizations
5. Cultural confliction:
Culture determines the habits, holidays,
behaviors and consumer preferences of every
society. While implementing a business
strategy in a foreign country, you should
consider all the cultural characteristics of the
targeted society
For example, you cannot sell beef in an Indian
market, as cows are sacred animals in India
6. Strategic management issues in Coca-Cola
Company:
Strategic management is a big issue to the Coca-Cola Company
because due to its nature as an international company The strategic
management problem in Coca-Cola is noted particularly during the
process of organizational analysis
This process requires
• Company assessments (within both the external and internal
environments)
• As the process covers diverse regions; the analysis becomes both
labor and cost intensive
7. Racial Discrimination Allegations:
In the spring of 1999, initially fifteen hundred African American
employees sued Coca-Cola for racial discrimination
• Coca-Cola was accused of discriminating against their in pay,
promotions, and performance evaluations
• Although Coca-Cola strongly denied the allegations, the
lawsuit evoked strong reactions
• To reduce collateral damage, Coca-Cola created a diversity
council and paid $193 million to settle the racial
discrimination lawsuit
8. Negatively Displayed:
• The problems faced by Coca-Cola were reported negatively by the media
and had a negative effect on Coca-Cola's reputation
• When the reputation of one company within a channel structure suffers,
all firms within the supply chain suffer in some way or another
• This thing create problem for the smooth execution of an organization
structure
9. Recommendations:
• A company’s DNA has to have flexibility code within it in order
to avoid becoming obsolete
• Expand the opinions, breaking boundaries and producing several
formulations for problems
• Be systemic; analyze the whole problem and its environment
• Train your supervisors to deal effectively with problems that do
arise and not wait until it gets out of hand
10. • Identify the strengths and weaknesses of your organization
as it is now and what outside threats work against its success
• Determine the skill level and qualifications of people who
will carry out the tasks
• Organization should make such strategies which sort out
all the conflicts between employees and management
• Choose right channel for promotion of your business because
wrong channel lead wrong direction and create losses for
organization
