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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

  • 1. Strategic Management Issues of Multinational Companies (MNCs): A Case Study on Coca-Cola Company
  • 2. Submitted To Md. Muzahidul Islam Lecturer Department of Management Studies Presented By Md. Kamruzzaman Shuvradeb Barai Abu Zafour Sahana Parveen Nazmul Alam Siddiqui
  • 3. 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.
  • 4. 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.
  • 5. 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
  • 7. 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?
  • 9. 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.
  • 10. 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
  • 11. Products OF COCA COLA Company Energy Drinks Juices/Juice Drinks Soft Drinks Sports Drinks Tea and Coffee Water Other Drinks
  • 12.
  • 13. 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
  • 14.
  • 15. 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
  • 16. 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.
  • 17. Corporate Level of Strategies of Coca-Cola Company
  • 18. 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.
  • 19. 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.
  • 20. 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.
  • 21. 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
  • 22. Opportunities Threats SWOT Analysis • Large Domestic ● Imports Markets ● Tax and • Export regulatory Potential sector • Higher Income among People ● Slowdown in rural demand
  • 23. PEST Analysis of Coca-Cola Company
  • 24. 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
  • 25. 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
  • 26. 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.
  • 27.
  • 28. The End Questions?