CASE OF COCACOLA

Created by: Giani Farah Paluci

Ayu Amrina Rosada

Chairani Tiaz

Introduction
Coca-Cola is a carbonate softdrink sold in stores, restaurants, and vending machines throughout the world. It is produced
by The Coca-Cola Company of Atlanta, Georgia, and is often referred to simply as Coke (a registered trademark of The CocaCola Company in the United States since March 27, 1944). Originally intended as a patent medicine when it was invented in the late 19th century by John Pemberton, Coca-Cola was bought out by businessman Asa Griggs Candler, whose marketing

tactics led Coke to its dominance of the world soft-drink market throughout the 20th century.
The company produces concentrate, which is then sold to licensed Coca-Cola bottlers throughout the world. The bottlers, who hold territorially exclusive contracts with the company, produce finished product in cans and bottles from the concentrate in combination with filtered water and sweeteners. The bottlers then sell, distribute and merchandise Coca-Cola to retail stores and vending machines. The Coca-Cola Company also sells concentrate for soda fountains to major restaurants and food service distributors. The Coca-Cola Company has, on occasion, introduced other cola drinks under the Coke brand name. The most common of these is Diet Coke, with others including Caffeine-Free Coca-Cola, Diet Coke Caffeine-Free, Coca-Cola Cherry, Coca-Cola Zero, Coca-Cola Vanilla, and special versions with lemon, lime or coffee.

Cases:
1. Roberto Goizueta as a CEO switched from a strategy that emphasized localization towards one that emphasized global standardization. What were the benefits of such a strategy? What were the limitations of Goizueta's strategy that persuaded his successor, Daft, to shift away from it? What was Daft trying to achieve? Daft's strategy also did not produce the desired results. Why do you think this was the case? How would you characterize the strategy Coke is now pursuing? What is the enterprise trying to do? How is this different from the strategies of both Goizueta and Daft? What are the benefits? What are the potential costs and risk? What does the evolution of Cokes strategy tell you about the convergence of consumer tastes and preference in todays global economy?

2.

3.

4.

First case:
Localization is the process of adapting a product or service to a particular language, culture, and desired local "look-and-feel." Ideally, a product or service is developed so that localization is relatively easy to achieve. Global Standardization is the process to push a international company / brand to become more centralized in management. We think Roberto Goizueta switched Coca cola strategy from localization to global standardization in order to pushed Coke to become a global company, by centralizing a great deal of management and marketing activities at the corporate headquarters in Atlanta, focusing on core brands, and taking equity stakes in foreign bottlers so the company could exert more strategic control over them. This one-size-fits-all strategy was built around standardization and the realization of economies of scale by, for example, using the same advertising message worldwide.

Second case:
The limitations of Goizueta's strategy was in the very 1990s is when Coke failing to hit the financial targets for the first time because the one-size-fits-all strategy was running out of steam, as smaller, more nimble local competitors marketing local beverages began to halt the Coke business development. So that, Daft shift away the strategy to be more localization. Daft was trying belief that Coke needed to put more power back in the hands of local country managers. Limitations of centralization are: Delay in work Remote control No local manager loyalty No special attention to local market Daft decentralize the management to decrease these limitations. However, too much emphasis on local management ended up blurring the bigger picture.

Decentralization coordination lack of proper guidance led to bad decisions.

Third case:
Isdells the best of both world approach Autonomy to local managers with oversight A highly decentralized organization can be the battleground, between local managers leading to lack of co-operation and coordination

Diluting the global brand

A potential risk is blacklash from local managers due to close oversight from headquarters

Fourth case:
The customers taste and preference influence product development Coca-cola can not ignore local taste/preference Better understanding of local markets have lead to new product development, that can be rolled out in other local markets successful

The georgian coffee of japan and low-cost noncarbonated orange-based drink in china are examples of converagence.