Coca Cola Analysis
2. Coke’s strategy and structure before Daft Leadership
- The structure was more centralized in the model of command and control with all the instructions and decisions, Atlanta - ‘Concentrate on Concentrate’ strategy - the high cost operations (trucks purchases, product delivery, and execution of local marketing) is left to worldwide bottlers. - Consolidation of the vast bottling network into 10 anchors bottlers. - Strategy, expansion of market share (Global presence) and increased sales ‘400 servings of coke’ - Aggressive marketing drive
- Coke had a very powerful global presence
- The distribution strategy of consolidating bottlers enabled Coke to have an effective distribution markets in a vast market without taking any financial risks. - Transferring the financial risks to bottling companies, Coke had a little effect in the event of a financial crisis e.g. currency devaluation/ economic downturn.
- Initial focus was clear, and the environment was simple and stable thus with command and control enabled growth - The ‘Concentrate on concentrate’ strategy led to giving production rights without giving intellectual property
- As a result of the vertical hierarchal management, there was Slow reaction to situations, decision making leading to huge opportunity costs - The centralized system led to lack of consciousness to the changes in the regional market trends and consumer preferences - Quest for global presence, led to neglect in some important functions like quality control (standardized operations), inefficient internal communication and conflict with regional authorities (government). - Aggressive marketing initiative led to cultural insensitivity - By Transferring high operation cost activity to bottlers, thus bearing the brunt of any economic downturn, the good working relationship with the bottlers was risked.
3. Analysis of...
Please join StudyMode to read the full document