STRATEGIC MANAGEMENT COHESION CASE: THE COCA-COLA COMPANY
Source: Excerpted from Pearce, J.A. and Robinson, R.B. (1994). "Strategic Management: Formulation, Implementation, and Control". Irwing. Adapted by Diego Medina. Las Palmas de Gran Canaria University
I. COMPANY MISSION AT THE COCA-COLA COMPANY
At the heart of Coca-Cola, especially in its first 100 years, there has been a commitment to intense marketing and to the preservation of its patented formulas and processes to make its special syrup. The intense secrecy that always has surrounded Coke's formula has long fostered an organizational obsession with secrecy pertaining to other information about Coke and its operations.
In the early 1990s, Roberto Goizueta shared the following mission statement in a booklet entitled 'Coca-Cola, a Business System toward 2000: Our Mission in the 1990s'.
"Bringing refreshment to a thirsty world is a unique OPPORTUNITY for our Company... and for all of our Coca-Cola associates... to create shareholder value. Ours is the only production and distribution system capable of realizing that opportunity on a global scale. And we are committed to realizing.
With Coca-Cola as the enterprise, ours is a worldwide system of superior brands and services through which we, our franchises, and other business partners deliver satisfaction and value to customers and consumers. By doing so, we enhance brand equity on a global basis. As a result, we increase shareholder wealth over time.
Our GOAL for the 1990s sounds deceptively simple: It's to expand our global business system, reaching increasing numbers of consumers who will enjoy our brands and products more and more often.
To succeed we will make effective use of our fundamental RESOURCES: brands, systems, capital, and, most important, people. Because these resources are already available, one might assume we need only to draw on them for achieving our goal. Nothing could be more wrong.
The CHALLENGE of the 1990s will be not only to use these resources but to expand them... to adapt them... to reconfigure them in constantly changing ways in order to bring about an ever renewed relationship between the Coca-Cola system and the consumers of the world .to make the best even better.
About brands … Increasing globalisation of the communication industry means we can more effectively expose our advertising and other image-building programs through a worldwide brand framework. This places a premium on maintaining our traditional excellence as a premier brand advertiser. Yet we must remember that it is our franchisee network around the world, which will distribute and locally market our brands. To appropriately leverage these brands, we must recognize that our franchisees and we are fundamentally in the business of servicing our customers and meeting the needs, real o perceived, or our customers. Coca-Cola, in every form... classic, diet, caffeine free, cherry, light... is the most widely recognized and esteemed brand in the world. Sprite and Fanta are worldwide brands; they must play a role in our brand strategy. We will continually strive to develop new brands where the opportunity presents itself.
About systems... Moving closer to the customer both in our own organizational structure and in timely decision-making will be mandated by the global, yet diverse, marketplace of the 1990s. Structurally, a flatter organization of our Company will be required.
Ours is a multilocal business. Its relative state of development varies dramatically from the soft drink frontiers of Asia to the sophisticated markets of North America... -At present, our main product, 'Coca-Cola', is now sold in over 135 countries, and is the leading soft-drink product in most of these countries.
About capital... Shaping business systems which are close to consumers will require not only the investment of our capital for new assets but more sophisticated management of existing ones Existing assets...
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