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Strategic Management Issues of Multinational Companies (MNCs): A Case Study on Coca-Cola Company
Presented ByPresented ByMd. Kamruzzaman Shuvradeb BaraiAbu ZafourSahana ParveenNazmul Alam Siddiqui
Md. Muzahidul IslamLecturerDepartment of Management Studies
Submitted ToSubmitted To
Ob
jecti
ves o
f th
e S
tud
y
• 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.
Defi
nit
ion
of
Str
ate
gic
M
an
ag
em
en
tStrategic management is the process of specifying an organization's objectives, developing policies and 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.
To the shape the Future of business
Effective strategic idea
Mangers and employer are innovative and creative
It’s decentralized the Management
Its helps to increase the productivity
To Makes discipline
To make control
To makes forward s thinking
Imp
orta
nce
of
Str
ateg
ic
Man
agem
ent
Inte
rnati
on
al S
trate
gic
M
an
ag
em
en
t
Qu
esti
ons
Fac
ed b
y S
trat
egic
P
lan
ner
s● What products and/or services
does the firm intend to sell?
● Where and how will to make 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.
History Of Growth of Coca-cola
1916 …
Birth of the contour bottle
1920s and 30s … International expansion
1950s … Packaging
Innovations
Recent Status
Products OF COCA COLA Company
Energy Drinks
Juices/Juice Drinks
Soft Drinks
Sports Drinks
Tea and Coffee
Water
Other Drinks
Str
ate
gic
Qu
ality
C
on
trol
Coca-Cola Company believes that, customers are the life of their business. They like to connect with the future customer through providing quality products-
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
●Market research
●Advertising
●Money
●Financing
●Transportations●Control
●Labor relations
● Language
● Culture
● Politics
● Economic ● Governmental
interference
● Labor
Factors Affecting The strategic Issues 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.
Strategic Alternatives of Coca-Cola Company
Corporate Level of Strategies of Coca-Cola Corporate Level of Strategies of Coca-Cola CompanyCompany
Exam
ple
of
Usi
ng N
ew
S
trate
gie
sThe company now using E-Commerce System for selling their products. So any one can order coke by using his or her internet.
Develo
pin
g I
nte
rnati
on
al
Str
ate
gie
sStrategy Formulation
In strategies formulation, Coca-Cola Company establish its goals and 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.
SW
OT A
naly
sis
StrengthsStrengths
• Strong distribution network
• Strong brand Products
• Low cost of Operations
WeaknessWeakness
● Low export levels
● Limit ability to invest and achieve economies of scale
SW
OT A
naly
sis
OpportunitiesOpportunities
• Large Domestic Markets
• Export Potential
• Higher Income among People
Threats Threats
● Imports
● Tax and regulatory sector
● Slowdown in rural demand
PEST Analysis of Coca-Cola Company
PES
T A
naly
sis
of
Coca-
Cola
Com
pan
yPolitical Factors
• Tax policy
• Employment laws
• Environmental regulations
• Trade restrictions and tariffs
• Political stability
Economic Factors
● Economic growth
● Interest rates
● Exchange rates
● Inflation rate
PES
T A
naly
sis
of
Coca-
Cola
Com
pan
ySocial Factors
● Health consciousness
● Population growth rate
● Age distribution
● Career attitudes
● Emphasis on safety
Technological Factors
● R&D activity
● Automation
● Technology incentives
● Rate of technological change
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
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