Coca Cola Structure and Strategy - Essay Example

COCA COLA STRUCTURE AND STRATEGY By Coca Cola Structure and Strategy Coca Cola as MNE Coca Cola qualifiesas a Multinational Enterprise (MNE) due to its size, market reach, and business practices (Lopez, 2012, p. 21). Coca Cola has extended its presence to nearly all parts of the globe. Precisely Coca Cola is a giant multinational the comprises of 300 constituent companies around the world. Coca Cola maintains an active trading presence in 200 countries. In terms of employees the company has over 1 million employees in its various branches on the international scene.

The firm’s operations spread from Europe, America, Africa, Asia, Australia, and all other parts of the lobe. The company is one of the most successful in terms of profits, revenues, and labor force. Coca Cola’s growing market profile illustrates its growth on the market and the power it maintains across the various market segments (Cross & Miller, 2011, p. 11). Coca Cola’s ability to morph into multiple international trading practices and to appropriate internal laws and systems to its own advantage is sufficient proof of its flexible nature and capacity to engage profitably with international business practices.

Coca Cola employs people of diverse from nearly every part of the world and has one of the most diverse personnel and employees in terms of culture, race, demographic, and other structures that necessarily distinguish between individuals. Another important aspect that defines Coca Cola as an MNE is its accounting practices. The company has been able to fit into various accounting models in relation to the trading practices in the different areas in which it operates. One quality of MNE is the ability to adjust to different systems of trade in ways that provide synergies and anchorage to the internal processes.

In some cases, the operation of some of its international branches is designed in ways that appear semi-autonomous such that the individual branches demonstrate an ability to perform in accordance with the standards as required in business law (Miller & Jentz, 2009). On this score, it becomes necessary to consider the fact that some of the international trading practices are primarily aimed at suiting the varied needs of the diverse market as perceived from an international perspective. Coca Cola’s global reach has influenced the development of a model of operation that is tailored to serve the needs of the diverse market in terms of reach, capacity, and ethical business practices (Griffin, 2011; Asongu, J 2007).

These factors were considered as part of a campaign to revamp its international image, which had been threatened by claims of poor corporate social responsibility practices, internal scandals, and the inability to connect with the preferences and the diverse nature of its international clientele (Vault, 2002, p. 4). On this score, Coca Cola developed an operational mechanism that links various processes including people, profit, portfolio, planet, and partnership. The five-point plan was created in order to develop an ethical practice that would ensure a balanced growth of profile on the international stage (Bodden, 2008, p.

17; Black, 2009 ). On this score, the company has continued to define international trading practices through consistent marketing of its products to suit the needs of the various levels of clientele. This is usually done in recognition of the fact that the different clients of the company are necessarily defined by preferences, values, and needs. Coca Cola products are tailored on the particular needs of the different kinds of its international clientele (Zurkuhlen & Meeker,1987). Individual companies develop their own business strategies in response to the unique opportunities, threats, and challenges that define the fluid and diverse nature of international business.

In this regard, the company articulates its values through providing services in a method, which is tailored on the specific needs of the local populations. It is important to consider the fact that some of the issues attending to the development of the firms are determined by the assessment of global business realities and the company’s own internal strategies. Such strategies include advertising, marketing, and business expansion. FSA/CSA Matrix In terms of the FSA/CSA matrix, Coca Cola would fall into the third quadrant.

This quadrant illustrates the fact that Coca Cola remains significantly strong with regard to its specific advantages as a firm, and also strong in relation to its strength within the individual countries in which it performs. The superior profile enjoyed by the company derives from a range of advantages, strategic market practices, length of time on the market, and other logistical advantages that the company enjoys over other firms. In essence, Coca Cola strength may be assessed through a SWOT and PEST analysis, which illustrate its influence and strength on the international market with regard to other beverage companies.

Some of the specific advantages that the company enjoys include a large capital base that has often been used for purposes of strategic marketing and advertising. The company length of time on the market is also an important factor that has helped it to retain its grip on its market segments as it explores into alternative segments on the global market. The company has used its massive resources and logistical advantages to counter the threats from competitors and new entrants on the market. Works Cited Asongu, J, J 2007, Strategic Corporate Social Responsibility in Practice, Greenview Publishing Co., London. Black, K 2009, Business Statistics: Contemporary Decision Making, John Wiley & Sons, New York.

Bodden, V 2008, The Story of Coca-Cola, The Creative Company, New York. Cross, F, B & Miller, R, L 2011, The Legal Environment of Business: Text and Cases: Ethical, Regulatory, Global, and Corporate Issues, Cengage Learning, New York. Griffin, R, W 2011, Fundamentals of Management, Cengage Learning, London. Lopez, D 2012, Brand Development of Coca-Cola Company (UK): Exploring new branding opportunities for Coca-Cola Company (UK), GRIN Verlag, New York. Miller, R, L & Jentz, G, A 2009, Fundamentals of Business Law: Excerpted Cases, Cengage Learning, London.

Vault 2002, The Coca-Cola Company, Vault Inc., New York. Zurkuhlen, H, S & Meeker, M, G 1987, The Coca-Cola Company: an international perspective, Salomon Brothers Inc., New York.