LSME 501 Strategic Management Assignment Chichester University UK.

Module Title Strategic Management
Module Credit Value 20
Module Level Level 5
Module Code LSME 501
Learning Outcomes: On successful completion of this module students will be able to:
• Analyse the strategic operating environment for a specific business organisation.
• Assess an organisation’s long term planning decisions in relation to its competitive advantage.
• Determine the strategic choice decision of an organisation in the light of their competitive advantage.
• Review the implementation and success of an organisation’s strategic management processes.
LSME 501 Strategic Management Assignment Chichester University UK.

LSME 501 Strategic Management Assignment

Module Description:
Strategic management is concerned with the actions organisations to take to deal with the challenges, opportunities and threats in their external and internal environments. The module starts by examining how organisations analyse their strategic environment in light of their resources and capabilities. This leads to a review of how they determine their desired objectives, consider the circumstances and events that may affect outcomes, decide upon the actions they need to take to achieve their objectives, implement a strategy and evaluate progress.

Assessment Tasks:
There are TWO assignments to be completed in this module:

Assignment 1 – (Essay) 2000 words +/- 10% Total Weighting: 50% Intended Learning Outcomes: 1 and 4
Assignment 2 – (Case study) 2000 words +/- 10% Total Weighting: 50% Intended Learning Outcomes: 2 and 3

Assignment 1: Essay
In an essay format analyse the strategic operating environment for a specific business organisation of choice. As part of the evidence provided, review the implementation and success of the organisation’s strategic
management processes.

LSME 501 Strategic Management Assignment Chichester University UK.

Assignment 2 – Task:
Based on the below case study, assess long term planning decisions of Coca-Cola in relation to its competitive advantage and determine the strategic choice decision in the light of the competitive advantage. You are expected to carry out further research with special reference to the competitive advantage of their strategies.

Introduction
CEOs and top management teams of large corporations, particularly in North America, Europe and Japan,acknowledge that globalization is the most critical challenge they face today. They are also aware that it has
become tougher during the past decade to identify internationalization strategies as well as with whom to do business (Krishna, 2005).

LSME 501 Strategic Management Assignment Chichester University UK.

Entering into a foreign market is like discovering new territory for business owners. Foreign countries have different laws, economies, business strategies and currency. Cultural differences can also impede a country’s
success. Though every business should anticipate a huge learning curve, entering a foreign market can be easier with the adoption of a few strategies (Krishna, 2005). Entering into a foreign market could require
changing your product to suit the new market’s tastes and preferences. Though you may know how to issue surveys and offer samples in your base country, the foreign market might have a different protocol.Multinational companies need to know which stores are best suited for their products, what features the audience values and at what price to set their products. Sak Onkvisit and John J. Shawmention in their book,“International Marketing Analysis and Strategy” how McDonald’s had to alter its menu offerings to accommodate different cultures. In India for example, beef is removed from dishes due to the country’s religious beliefs.

For this report, we decided to discuss the international strategies of a company that sells more than 400 brands in 200 countries. Coca-Cola’s international success has helped it become one of the most recognized
brands in the world. Coca-Cola has been expanding internationally throughout the last fifty years and positioned itself better than any other soda in the beverage industry (Sivny, 2007). The following sections in
this paper outline the strategies that Coca-Cola has initiated in different countries of the world. USA, China, Peru, Belarus and Morocco were chosen to illustrate and compare the differences and similarities the company uses to compete and do business in those countries.

International Differentiation Strategy
Differentiation strategy is defined as a marketing technique used by a manufacturer to establish a strong identity in a specific market. It also may be referred to as the segmentation strategy. Using this strategy, a manufacturer will introduce different varieties of the same basic product under the same name into a particular product category and thus cover the range of products available in that category. There are several ways a firm can differentiate its products. We focused on two aspects of this; branding and cost leadership.The American Marketing Association defines a brand as a “name, term, sign, symbol or design, or a combination of them intended to identify the goods and services of one seller or group of sellers and to
differentiate them from those of other sellers. The objectives of successful branding include; delivering the message, confirming your company’s credibility, connecting to your target prospects emotionally, motivating
the buyer, and establishing user loyalty. For example, a soda company that offers a regular soda, a diet soda, a decaffeinated soda, and a diet decaffeinated soda all under the same brand name is using a differentiation
strategy. Each type of soda is directed at a different segment of the soda market, and the full line of products available will help to establish the company’s name in the soda category (Lake, 2010).

Another aspect of the differentiation strategy is cost leadership. With this strategy, the objective is to become the lowest-cost producer in the industry. Many market segments in the industry emphasize minimizing costs.
If the achieved selling price can at least equal the average for the market, then the lowest-cost producer will enjoy the best profits. Coca-Cola has used both branding and cost leadership strategies to expand its products
in the United States and abroad. Coca-Cola has differentiated itself in the United States by successfully positioning itself as an American icon. To many Americans, it is seen as“patriotic, traditional, friendly, and American” (Slater, 2000, p. 202). Coupled with its advertising slogan,“Always Coca-Cola,” the patriotic images reinforced with the feeling that it has been around forever, has helped Coca-Cola maintain its brand loyalty since 1886. Coca-Cola has done such a good job at differentiating itself from other brands it has reached a status seldom known to most brands – people collect Coca-Cola brand items. Anything Coca-Cola related “from its merchandising products such as bottles and coolers to traditional and familiar advertising items such as signs and print advertisements; from point-of-purchase
items such as trays and calendars to complimentary novelties such as toys and bookmarks” is collected by brand-loyal consumers

Despite its successful marketing over the past six decades, Coca-Cola is not the dominant cola brand in America. Americans still predominately prefer Pepsi over Coke. Coca-Cola is aware of this and realizes that it can only grow its brand domestically through defensive strategies in which it retains its existing consumers and maintains their purchasing frequency (Slater, 2000, p.202). This may lead Coca-Cola to consider a different brand image. Many retailers and industry specialist consider Coca-Cola’s branding “outdated.” In a recent Business Week article, “Coca-Cola; A Powerful Brand,” Coca-Cola was criticized for maintaining its”Norman Rockwell era ads.” Though Coca-Cola has gained much appreciation for being the classic American beverage, many believe that Coca-Cola has alienated a younger audience (Foust and Bynes, 2004). This has resulted in many people wondering if Coca-cola will be able to keep pace with Pepsi who has used younger spokes-people, like Britney Spears, who appeal to the younger generation.

Coca-cola has also experienced some difficulty with branding its different products. In the 1980s, Coca-Cola tried to introduce a new recipe for its original products. The flavour greatly changed the taste that people
had grown to love. Coca-Cola did try to make the best of the situation, though. They were able to attract new customers with the new taste but alienated their original customers who found it awful. Coca-Cola’s solution
was to create two separate products. The original flavour was deemed classic Coca-Cola while the new flavour went by New Coke. This plan worked for several years, but New Coke was eventually phased out (Walsh,
2003).

With Coca-Cola’s success in the United States, the company decided to expand operations worldwide. Coca-Cola is the most recognizable trademark on the planet, which is known to 94% of the world population(Вакансии, 2010). The Coca-Cola Company heavily invests not only in brand recognition but also in the quality of its products, sustainability and charity sponsorships. Coca-Cola implied branding and cost leadership strategies in many of the countries it entered. Branding in China is a challenge for western firms. Linguistics in Chinese can affect the brand sound and brand meaning, and also affect consumer perception and brand identity. When Coca-Cola first entered the Chinese market in 1928, they had no official representation of their name in Mandarin Chinese (Alon, I.et al., n.a). They needed to find four characters whose pronunciations approximated the sound of the brand without producing a nonsensical or adverse meaning when strung together as a written phrase. Since Coca-Cola entered the mainland China market, it used a revised name, which appealed more to the ideographic sense than the original English sound.

The same problem also occurred when Coca-Cola first entered Hong Kong and Shanghai markets. The Cantonese based brand name chosen emulated the original English sound translated to “pleasant to mouth and wax” in Mandarin (Alon, I.et al., n.a). Ideally, this was not the message Coca-Cola wanted to convey. The company changed the name and symbols similar to how they changed them in China. In Belarus, the branding strategy focuses on the quality of the product. The Coca-Cola Company in Belarus focused on guaranteeing the highest quality of its products. Coca-Cola has its accredited laboratory where ingredients and raw materials are rigorously tested. Product compliance with world quality standards is also ensured (History,
n.d.).

LSME 501 Strategic Management Assignment Chichester University UK.

Coca Cola’s one method of differentiation in Peru is its quality that goes together with strong branding. This branding differentiation can be attributed to their long history and prevalence in Peru. Coca Cola’s strong
brand and name originate from 1936 when they were first introduced in Peru.

Their quality and brand recognition in Peru is recognized not just because of their products and long history but also because of their employment excellence. Recognition is a strategic way to better a brand’s reputation, which assists Coca Cola to differentiate their company name and help them become a leader in a foreign market like Peru. In 2008, Coca-Cola was certified as Good Employers Association Founder due to their quality and qualifications to a determined set of standards (The Coca-Cola Company, 2008). The soft drink industry is one of the most dynamic in Morocco, where the industry has grown consistently in the past 50 years and continues to break new barriers (Soft Drinks, 2010).

Because of this, Coca-Cola has used both a branding and cost leadership strategy in Morocco. The designation Coca-Cola gave to the Moroccan market segment included metropolitan areas and large towns, represented
52 per-cent of the country population. This segment sought social bonding as a marketing technique and used inspirational messages to celebrate social meetings. “Dayman Coca-Cola” which translates to “always Coca-Cola” in Arabic was a successful and relevant tagline for Coca-Cola. Coca-Cola in Morocco is believed to be the first brand to offer to advertise targeted at the smaller, rural towns which constitute 48 per-cent of the Moroccan market (Euro Monitor, 2010). With that Coca-Cola was successful in its branding strategy. Additionally, with an average coke costing 2.5 Dirham (3 cents), the company was affordable for everybody.

LSME 501 Strategic Management Assignment Chichester University UK.

As seen in examples from the United States, China, Belarus, Peru, and Morocco, Coca-Cola was very effective in implementing new product introduction strategies. By using differentiation strategies such as branding
and cost leadership, Coca-Cola was able to make its brands stand out from its competitors by focusing on image, quality, and being affordable. Because of these strategies, Coca-Cola was able to create a niche that allowed it to compete with local and global brands. This is how Coca-Cola has distinguished itself and has allowed itself to grow its profits exponentially.

International Marketing Strategy
This section concentrates on marketing strategies in international business and the ways Coca-Cola has established these strategies around the world. First, one must understand that globalization has become a trend in response to nontariff trades and the growth of elimination of barriers, which has helped the marketing of international brands. Second, due to globalization, competition has increased internationally and to remain competitive firms are expanding geographically by joining ventures with other companies or through acquisitions in foreign markets. Therefore, an emphasis on marketing must be present (Douglas,Craig, & Nijssen, 2001).

International marketing strategy can be defined in many ways. International marketing strategy is the manner in which an organization performs based on a predetermined set of activities in order to plan, promote, price and distribute a good or service for a profit to consumers in various locations (Cateora & Graham, 2007, p.9).Van Mesdag also describes international marketing as a company having a marketing strategy in different markets depending on the market characteristics

International marketing strategy is an important part of strategic planning and consequently should be an area of study according to The Journal of International Marketing. This strategy is a significant factor in the performance of a global company because an effective marketing strategy for international companies can represent a competitive advantage and therefore global executives need to recognize the importance of it
regardless of a global or customized marketing strategy is practised. Furthermore, the marketing mix affecting markets abroad should be studied to comprehend how foreign markets function with different
marketing strategies (Albaum & Tse, 2001).

Global vs. International Marketing Strategy
When discussing international marketing it is important to point out the difference that may exist between international and global marketing. Global marketing can be characterized by an overall outlook of the
market as a whole where there is a standardized manner to sell a product or service in all places (Bennett & Blythe, 2002, p.6). According to Chung, standardization as a form of marketing strategy refers to the similarity
of a set of practices implemented in the home and other foreign markets. Standardization strategy’s main elements are political-legal, economic, competitive, cultural, and consumer, environments. Also, the same
research states that this strategy is most likely to be implemented if there are similarities in the elements of the home and foreign country (Chung, 2003). Another concept Chung provides explains that a firm with a
strong level of standardization enjoys a high level of control within the organization. This control is the level of decision making executed by the home office. At the same time, when standardization applies, global
image and product offering are two strong factors a firm seems to rely on.

Conversely, international marketing relates more to different target markets and their differences rather than looking at it as one single market and foresees the possibility to implement a localization strategy rather than
standardization, as the global marketing would pursue. The findings of Van Heerden & Barter suggest that “marketers cannot assume homogeneity of cultures across the globe and itis surmised that there are not similarities and congruencies among the cultures within and between countries” (2008). Therefore, the importance of establishing localization and adaptation is relevant to the marketing strategy of any international company. In China, for example, Coca-Cola has taken up the “think local, act local” approach and it seems to be pretty effective since Coca-Cola has gained an eight per-cent increase in the Asia Pacific in 2000.Besides, Coca-Cola has given local managers control over advertising operations, which is pretty impressive. Coca-Cola has included everything from Chinese zodiac animals to Spring Festival couplets in its television commercials.

LSME 501 Strategic Management Assignment Chichester University UK.

Another example is Peru, Coca-Cola’s ability to succeed is due to their marketing strategy to not try to present itself as “an American company that happens to be in Peru, but as a company of Peruvians that has its
headquarters in the United States.” This strategy allows Coca-Cola to attain the trust of the Peruvian Population as a global company (Salas). Another marketing strategy for Coca-Cola in Peru is their decision to increase the penetration of their marketing efforts to everywhere they can, from cornerstones to major sporting events. Coca-Cola also knew that the way to compete was to attach the soft drink to all types of meals and even participate in co-branding by promoting itself with other brands (Salas). One more marketing strategy Coca-Cola employs in Peru involves its social responsibility. Not only does Coca-Cola create employment but it also raises funds for relief programs for the less fortunate and for those individuals with financial challenges (Historia, n.d.).

A social responsibility strategy as part of marketing is also utilized in Belarus. Coca-Cola was a pioneer foreign investor in Belarus, first licensing a local manufacturer in 1994 and then setting up its production facilities in 1997.Its original US $42 million investment was the first green-field development in Belarus by a foreign investor (Food and Drink, n.d.). Also, as a part of its marketing strategy, the Coca-Cola Company focuses its
attention on soft drink market development throughout the Republic. The Company provides its partners and trade enterprises with free promotional materials, booths, refrigerators, other trade equipment, products supply services, as well as overall marketing and advertising support (Food and Drink, n.d.).

It is essential to mention that cost advantage can be obtained if a standardized marketing strategy is created together with a cross-cultural strategy that can be adopted by the majority of cultures (Van Heerden & Barter, 2008).

Another finding from the same study explains that regardless of the value of localization in the marketing strategy, localization should be focused on when it is imperative to consumers and for that reason organizations should focus on standardization as much as possible. Further research demonstrates that to conclude if a localized or standardized strategy should be followed, political, economic and cultural aspects must be analysed (Van Heerden & Barter, 2008). In the United States, the company quickly realized that the key to Coca-Cola’s success was to market it with food (Taylor, 2005, p.81). Today, Coca-Cola can be found in restaurants everywhere. It is consumed like any other beverage and because of this Coca-Cola has initiated many other products into the American markets. Coca-Cola often determines where there are gaps in its market and tries to satisfy the consumers in those gaps by marketing new products to them. For example,
because Diet Coke is popular among middle-aged women, Coke Zero is being targeted to teens and young adults who do not already drink diet soft drinks (Market Watch, 2005, p. 44). Coca-Cola also uses innovative
ideas to help market its products that have been around for a long time. One way it does this is by focusing heavily on consumer demands and conveniences for Americans. An example of this is the Coca-Cola Fridge
Pack. It is a space-saving, self-dispensing 12 pack of Coke cans that fits more easily in a standard, American fridge (Market Watch, 2003, p. 31).

Culture in International Marketing Strategy
Moreover, in order to understand the role of international strategy in a company’s success, it is also important to understand the role culture has in strategy development. The study entitled “the role of Culture in the Determination of a Standardized or Localized Marketing Strategy” shows how important it is for culture to be considered in any international marketing strategy (Van Heerden & Barter,2008).

In Morocco, one of Coke’s proven marketing strategies is to build on a powerful association it has developed through a long-term investment in Moroccan soccer. Soccer is the most popular sport in Morocco and its
national team, the Atlas Lions, is one of Africa’s most respected teams (WorldInfo Zone, 2010). Coca-Cola is the number one soft drink in Morocco and soccer is the number one sport there. The company’s policy for
the last forty years has been to support Moroccan Soccer wherever they can. Also, Coca-Cola in Morocco realizes benefits from sponsoring soccer teams and its sponsorship of the 1994 and 1998 Moroccan soccer team at the World Cup. Coca-Cola also uses locally-produced television commercials with Moroccan actors and sometimes dubs its international ads into Arabic. For instance, Coca Cola released the international trademark campaign of its popular slogan “The Coke Side of Life,” which focused on themes such as fun, happiness, colours and life (AliRaqi, 2001). A collaboration with Imane Mrikh, a famous Moroccan singer, lead to the making of the song “El DonyaHelwa” (The World is Beautiful) for which a commercial was directed by an American director at international standards with hi-tech effects (AliRaqi, 2001).

Coca-Cola Strategy
Coca-Cola’s strategy is noted to be “glocal.” This strategy is a combination of both strategies previously described. By attaining both qualities of each strategy, Coca-Cola enjoys an identifiable brand image as well as instilling local practices that allow them to create and embrace cultural differences. Coca-Cola prides itself not just for its distinguishable brand but for its attentiveness to local markets’ needs. In CocaCola’s website one can appreciate the difference in marketing strategies in different markets, for example, in Korea, a trendy young image that may be displayed with the picture of young adults with modern attire in contrast to the website in Malawi where the image that may be displayed may include a mature woman dressed traditionally (Being Delicious and Being Happy, n.d). The article “Regional Strategies look set to lose out in Push to go Global “shows an example of Coca-Cola’s global strategy with its product PowerAde, by using their World Cup campaign of “official hydration partner.” Mary Merrill, global category director of sports beverages at The Coca-Cola Company expresses his favouritism for the global strategy due to its branding effectiveness (2010).

International Distribution Strategy
“Distribution is the course, physical path or legal title that goods take between production and consumption.In international marketing, a company must decide on the method of distribution among countries as well as the method within the country where the final sale occurs” (Daniels, 2009).

Choosing Distributors and Channels
Choosing distributors and channels is the first step of distribution in foreign countries. When a company enters a new country, it is usually economical for a company to rely on external distributors (Daniels, 2009).
For example, Coca-Cola in Belarus has always been and remains a local Belarusian enterprise, where Belarusian people are employed. Because Belarus is currently not a large market, it may be a better idea to rely on the local distributors for transportation. Eventually, if the market grows, Coca-Cola may want to consider handling distribution in-house to gain more control (Daniels, 2009). Two of the largest Coca-Cola markets around the world are the U.S. and China. In the U.S. the company has established a mature business model which includes distribution. Coca-Cola outsourced its production and distribution to its bottling and distribution companies. This process requires marketers to distribute syrup from the Coca-Cola plants to the bottling plants. From there, it distributes bottled and canned beverages from the bottling plants to the distribution centres and from the distribution centres to the final retail outlets (Kant et al., 2008, p.40).

LSME 501 Strategic Management Assignment Chichester University UK.

It is projected that China will surpass the U.S and eventually become the largest Coca-Cola market. The company currently has an efficient distribution system in China, which is under the company’s control. Coca-
Cola’s direct-to-retail distribution operation is growing slowly and only accounts for a minority of the company’s unit sales in China. To handle distribution and sales to retailers, the company operates at least one sales centre in most Chinese cities with a population above 1 million. Most of these sales centres, which also serve as warehouses, are wholly owned and operated by Swire, Kerry, or the relevant bottling company.
Fleets of delivery trucks-up to 20 in larger cities are kept at the centre. Personnel work onsite to coordinate deliveries, and sales staff market the company’s products locally, visiting retailers regularly to take orders
(Weisert, D., 2001).

When a company is choosing a foreign distributor, it typically seeks potential distributors. There are some common criteria for selecting a distributor, and the company’s financial strength and good connections are
always important. The distributor’s financial strength is important because of the potential long-term relationship between producer and distributor and because of the assurance that money will be available for such things as maintaining sufficient inventory (Daniels, 2009). China is developing very fast, but it is still a developing country. A lot of private enterprises are small companies, and their financial power is not relatively strong. Most of Coca-Cola’s products in China are sold through wholesale distributors. Most of the company’s partners are large state-owned sugar, tobacco, and wine enterprises that have been distributing products since the 1950s, or are former state-owned distribution firms that are now privatized and have
valuable experience and equipment (Weisert, D., 2001).

LSME 501 Strategic Management Assignment Chichester University UK.

LSME 501 Strategic Management Assignment

It is important to select a distributor with good connections are particularly important because the distributors with good connections get a lot of information and relationship between the market and customers in a foreign country. And that makes the new products’ distribution much easier, especially in some middle East European countries where mutual loyalty is often more important than product and price for making sales.

LSME 501 Strategic Management Assignment Chichester University UK.

International Collaborative Strategy
When pursuing international business, companies must choose an international operating mode to fulfil their objectives and carry out their strategies. A firm may choose to operate globally either through equity
arrangements or through non-equity arrangements (Daniels, 2009). Coca-Cola has successfully adopted both of the arrangements.

Foreign direct investment (FDI) gives the investor a controlling interest in a foreign company. When two or more companies share ownership of an FDI, the operation is called a joint venture (Daniels, 2009). Although cultural, political, competitive, and economic differences among courtiers create barriers for companies abroad, companies can seek collaboration with local companies who will help them. Given China’s enormous population and relatively high growth rate of real GDP, the country has long been viewed as an important market with great potential for many of the world’s giant multinational corporations (MNC). Coca-Cola has a long history in China and most of Coca-Cola’s bottling facilities are joint ventures with one of three government agencies: SLIB, China International Trust and Investment Corp., and China National Cereals, Oils, and Foodstuffs Import and Export Corp (COFCO). COFCO has been the company’s most frequent partner,
holding ownership in 12 of the 24 bottling facilities. In April 2000, Coca-Cola and COFCO signed a milestone joint-venture agreement giving COFCO 65 per-cent ownership in at least two bottling facilities–the first Chinese majority-owned Coca-Cola bottling joint venture (Weisert, 2001).

For a company wishing to pursue a geographic diversification strategy, collaborative arrangements offer a faster initial means of entering multiple markets. Swire and Kerry serve as the foreign majority partners in 19
of Coca-Cola’s 24 bottling facilities in China. Coca-Cola holds a 12.5 per-cent share in both companies and has agreements with them in the areas of plant management, sales and distribution. Swire is involved in nine of
Coca-Cola’s bottling facilities based in southern and eastern China. Kerry is a partner in 10 facilities, located mainly in northern and western China. Coca-Cola is a direct majority partner in four bottling joint ventures:
one in Hainan Province, one in Shanghai, and two in Tianjin (Weisert, 2001).

Coca-Cola also has joint-ventures in Peru. Coca-Cola is the number one competitor of Inca Cola, which was introduced in 1935; one year before Coca-Cola. Their constant battles for market share ended in 1999 when
Coca-Cola acquired 50 per cent of Inca Cola. Coca-cola also bought 40% of Jose R. Lindley Corporation and ceded all bottling rights for Coca-Cola products in Peru to Lindley Corporation. This corporation is the only
bottler for Coca-Cola as well as Inca Cola in Peru.

LSME 501 Strategic Management Assignment Chichester University UK.

International Labour Relations and Management Strategy
Labour relation strategies and management strategies are two very important strategies firms must consider when operating in foreign countries. “Differences prevail across countries in how labour and management view each other” (Daniels, 2011, p.775). Companies need to evaluate the differences in each country’s culture, laws, norms, religious beliefs and values to determine how to implement labour and management
strategies that are not only effective but also socially acceptable.

Before starting operations in any country, a firm should determine how they plan to staff their facilities. There are three frameworks in which a company can staff its international operations. These include the
ethnocentric, polycentric and geocentric frameworks. The ethnocentric approach is when people from the home company are charged with managing the operations in a foreign country. The polycentric approach is
when the local people of the foreign country manage operations. Geocentric staffing is when the company chooses the best people to manage operations. Therefore, in a geocentric framework, there could be a mixture of home, host-country and even third-party managers.

One of the reasons why Coca-Cola is so successful is because it has implemented the geocentric staffing approach. This is sometimes a difficult strategy to initiate because of the various cultural differences managers will encounter, not just among their direct reports, but among fellow managers. However, CocaCola has explained that they “deal with cultural differences through organization design by creating a variety of flexible structures and partnerships that can complement different markets and through staffing
by valuing international assignments and giving our best people exposure to different cultures and ways of conducting business”

In addition to the staffing approach, firms must evaluate the labour force they will encounter. They should identify country-specific goals, structures and ideas that differ from the host country, different collective bargaining methods, approaches the country utilizes to deal with workplace strife, regulatory organizations and much more. Companies need to determine if the host country’s labour force will be compatible with the firm’s mission and goals. Coca-Cola champions continued the growth of the business and require the involvement of professional staff. Potential employees of the Coca-Cola Company must be motivated, independent, open and results-oriented, because the company’s core values are dedication, teamwork,
quality, people and integrity” (компании, 2010).

A company must safeguard itself from any undesirable labour relations issues by developing strategies for dealing with these situations. For example, “when unions have tried to organize, Coke has attempted to break
the drive by increasing the pay scales slightly” (Tobis, 2001, p.72). This has worked in Coca-Cola’s favour in many countries, “however, a few U.S. bottlers have teamster contracts” (Tobis, 2001,p.72). In addition, Coca-Cola’s franchises are generally small firms that do not issue stock so their financial operations are confidential. This helps protect the parent company from being legally responsible for any unpopular actions from a franchised firm (Tobis, 2001, p. 72).

International Diversification Strategy
“With a portfolio of more than 3,300 beverages, from diet and regular sparkling beverages to still beverages such as 100 percent fruit juices and fruit drinks, waters, sports and energy drinks, teas and coffees, and milk-
and soy-based beverages, our variety spans the globe” (List, 2010).

Product diversification strategy entails any modification of a current product that serves to expand its potential. Product diversification is different from product development such that it involves creating a new
customer base, which expands the market potential of the original product. This is almost always done through brand extensions or the implementation of new brands, but in some cases, product modification
may create a new market by creating new uses for the product.

Product diversification strategies have a few dangers that come with their implementation. The two main dangers facing a company following a product diversification strategy for a brand are misunderstanding the
new customer base and loss of meaning of the original brand. The risk of misunderstanding the new customer base is present with market development, while the risk of loss of meaning and/or cannibalization is just as significant as with the product development. (Product, 2010). The Coca-Cola Company produces, sells and distributes to customers a range of non-alcoholic beverages around the world. The company provides
consumers with a broad variety of drinks that can be divided into three categories: sparkling beverages, still beverages and waters.

Sparkling beverages, such as the brands Coca-Cola, diet Coca-Cola, Sprite and Fanta are part of the traditional range of refreshment products offered by Coca-Cola. Products in this category are an important segment,offering consumers an enjoyable and satisfying solution to maintain good hydration. One of the new products in the U.S. and global markets is Coca-Cola Zero. Coca-Cola Zero has been one f the most successful product launches in the company’s history. In 2009, Coca-Cola claimed it sold more than 600 million cases globally.


Fruktime is a soft drink with fruit flavour which became the fourth beverage for the company in Russia after the launch of Coca-Cola, Fanta and Sprite. This drink is available in four flavours: lemonade, cream soda,
“Dushes” and “Buratino”. Market research shows that these are the preferred flavours of most Russian consumers. Still, beverages are drinks that have not been subjected to carbonation such as fruit juices and
nectars. Fruit juice from concentrate is obtained by evaporating most of the water contained in the initial juice and then replacing it during the bottling process. Fruit nectar is a juice or a juice pulp to which water and varying amounts of sugar (depending on the fruit involved) are added.

In Peru, Coca-Cola has also introduced new lines such as isotonic beverages: PowerAde and Sporade. These new product lines are not cannibalizing market share from each other but growing the entire share. The main
reason Coca-Cola introduced Powerade was to compete against products like Gatorade and gain a share of the market from its competitors. Thus far, the introduction of these lines seems prosperous, however, their number one competitor is still Gatorade, which is also number one in the isotonic beverage market (Latin, 2007).

LSME 501 Strategic Management Assignment Chichester University UK.

LSME 501 Strategic Management Assignment

Conclusion
We performed an in-depth review of how effective or ineffective Coca-Cola was in implementing their strategies in their operations in countries such as the United States, China, Belarus, Peru, and Morocco. We have found that Coca-Cola’s global brand’s success is accredited to its “think global, act local” campaign. Most of its marketing strategies focus specifically on local culture and customs. Localization is a key element in the effectiveness of Coca-Cola’s international strategic plan.

Completing the tasks
In order to complete Assignments 1 and 2, you will need to research different information sources such as textbooks, journals, articles and the internet. You are also required to develop skills in the analysis of information. Analysis requires you to critically examine different aspects of a topic and identify important issues. Make use of information on assignment preparation and command verb usage in your Moodle Platform.

LSME 501 Strategic Management Assignment Chichester University UK.

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