Strategic Choice and Evaluation A multi-domestic strategy is defined as a multi- domestic corporation that views itself as a collection of relatively

independent operating subsidiaries each of which focuses on a specific market (Miltenburg, 2009, p.7). The Coca Cola Corporation adopts the multidomestic strategy. Coca Cola manufactures all products independently in each country depending on the external and internal environments of each country. Coca Cola must develop their strategies based on the nature of the culture, status, and people in each country. The factors that must be identified in order for Coca Cola to realize growth are value disciplines, the generic strategies, and the grand strategy. Value disciplines The value discipline model created by Michael Treacy and Fred Wierruna describes three alternative approaches to the generic strategy. Michael and Fred believe that strategies must center on delivering superior customer value through one of the three value disciplines (Pearson & Robinson, 2011, p. 185). The value disciplines are operational excellence, customer intimacy, or product leadership (Pearson & Robinson, 2011). Operational excellence is accomplished by a focus on lean and efficient systems, cost efficiency, and convenience so that consumes are provided with products they require at a minimum cost. Customer intimate corporations focus on establishing a long-term relationship with consumers through a focus on products or services. Product leadership focuses on a commitment to continual development and the eagerness to take risks (Pearson & Robinson, 2011). A company must select one of the three disciplines and execute it consistently and vigorously ( Pearson & Robinson, 2011). Coca Cola employs the product leadership approach. The company produces four of the five highest selling carbonated beverages around the world Cola classic, Diet Coke, Sprite, and Fanta. Coca Cola strive to manufacture products to the highest specifications by using processes to ensure a consistent quality and safe products for their consumers (Coca Cola, 2011). Generic Strategy Many planners believe that any long-term strategy should derive from a firms attempt to seek a competitive advantage based on one of the three generic strategies; low cost leadership, differentiation, and focusing (Pearson & Robinson, 2011, p. 183 ). Low cost leadership A company that utilizes a cost leadership strategy manufactures their products at a lower cost compared to the competition. Cost leadership generally depends on economies of scale to acquire a cost advantage, thereby achieving a competitive advantage ( Pearson & Robinson, 2011). The cost leader in the beverage market is Coca Cola. This company has the buying power to purchase its raw materials at a low cost because of its size. Additionally, they benefit from economies of scale in divisions, such as advertising, and research and development. Coca Cola spends a substantial amount of cash on advertising and research and development and amortize the costs over large quantities. This process translates into low costs per unit. Differentiation

The differentiation strategy occurs when a company highlights a unique attribute of the product compared to similar alternatives offered by competitors. The added value by the uniqueness of products sometimes permits a company to charge a higher price for them. The company anticipates that the higher prices will cover the additional costs obtained by offering a unique product. When products have unique attributes suppliers may raise their prices, thus creating the need to pass the costs along to its consumers who cannot locate substitute products without difficulty ( Pearson & Robinson, 2011). Coca Cola differentiates by establishing a solid brand that differentiates on reliability or quality of products. Coca Cola creates differentiation by using a soft sell approach. A soft sell approach is a subtle yet persuasive, low- pressure method of selling your product (Okazaki & Taylor, 2010, p. 5). The basis for soft selling is to focus on creating relationships rather than aggressively pitching products. Developing a genuine relationship with consumers will help the company understand what the needs and wants are, and then Coca Cola can suggest their solution. Coca Cola allocates approximately 20% of their entire advertising budget to conserve their differentiation strategy (Coca-Cola Company, 2011). Coca Cola has positioned effectively itself on the following principles; company reputation for innovation and quality, effective communication of value of their products, and creating a symbol of enjoy and fun. The company intends to isolate their competitors from the market by developing a powerful brand loyal customer base. Focusing The focus strategy is directed at a particular target consumer group through segmentation, such as economic, cultural, political, age, or geographical groups. This strategy applies either the low cost focus or a differentiation focus inside the target audience of those who ignore marketing appeals of the typical consumer. This perspective focuses on narrowing the application of the generic strategies (Pearson & Robinson, 2011). Coca cola utilizes segmentation to stay competitive. They create products to suite the demand and taste of specific markets. The company diversified into different products in 1960 by acquiring the Minute Maid Corporation, and merging with Duncan Foods Corporation. In 1969 they purchased Aqua Chem Incorporated and the Belmont Springs water company, to satisfy the needs of the health conscience consumer (Coca-Cola Company, 2011). Grand Strategy A grand strategy is a master long- term plan that provides a basic direction for major actions directed toward achieving long- term business objectives (Pearson & Robinson, 2011, p. 187). The role of this strategy is to direct and coordinate all resources of a company toward the attainment of business objectives. There are 15 grand strategies companies should examine before selecting an approach for the optimum grand strategy. The 15 principle grand strategies are concentrated growth, market development, product development, innovation, horizontal integration, vertical integration, concentric diversification, conglomerate diversification, turnaround, divestiture, liquidation, bankruptcy, joint venture, strategic alliances, and consortia (Pearson & Robinson, 2011, p. 187). Coca Cola aims for several essential long-term objectives; profitability, productivity, competitive

position, and technological leadership all, which support the primary objective of maximizing shareholders value (Coca-Cola Company, 2011) . Profitability Coca Cola hopes to earn in the double digits every year equal to or greater than prior years. To do this they must maximize profits by increasing gallon sales, thus maximizing profit margins. The company continually expands their global business systems by investing in areas offering attractive returns. Productivity Coca Cola facilities have objectives for improvements and maintenance of their operating profit margin. The primary goals of the bottling company are to ensure a solid and efficient production and distribution system. A strong system will provide growth in volumes that will increase cash flow and shareholders equity. Competitive position Coca Cola strives to be the leaders in the market of which they compete. Currently Coca Cola is the leader in the market with 43% of the market share. Pepsi is following with 31% of the market share ((Coca Cola, 2010). Technological leadership Coca Cola strives to be the leader in marketing and production technologies in the beverage market. The advancements in communication technologies have allowed Coca Cola to operate a more efficient production process. The company can produce and ship exactly what is needed through an upgraded faster communication channels. New technology allows Coca Cola the capability to produce at faster speeds to exact specifications. Grand strategy Selection Coca Cola focuses their attention to the grand strategies; concentrated growth, market development, product development, and innovations to achieve the long- term objectives. They also pursue vertical integration opportunities to aid in their global objectives. They accomplish this through joint ventures and strategic alliances. Consortia are possible, depending on the market. Coca Cola rarely has a need for turnaround, retrenchment, and liquidation strategies. Coca Cola attempts to hold and extend the current market position and extend into new markets, specifically international and global markets not saturated by soft drinks presently. The company seeks for continual innovations in every aspect of the business. The company has manufactured an environment friendly cooler that reduces gas emissions. Packaging innovations are presently researched by Coca Cola to ensure the reuse of additional recycled materials that will reduce the amount of waste after consumer consumption. Lastly, Coca Cola has partnered with the America Heart Association to add innovation to their marketing scheme initiating health (Coca-Cola Company, 2011). Recommendations After analyzing Coca Colas value disciplines, generic strategies, and grand strategy one realizes that many aspects of the company revolve around; market growth, profitability, and advancing ahead of the competition. Coca Cola must focus on increasing market share

in rural areas where there is no established beverage leader. This will create sustained profitability for the company. They could also increase profits for the company by increasing sales and decreasing cost. The company must stimulate the demand in their current markets through intensive marketing schemes utilizing their powerful brand recognition and value. The company must continue to introduce innovative products that accommodate the local needs and tastes such as healthy low calorie beverages. The Coca Cola brand image is the asset that will aid the company to continue to be successful in the beverage market. Its attributes are sought out by consumers and with employment on the rise; consumption of their beverages will do the same. A strategy based on the brand perception in the market should show a market increase within a reasonable time of its implementation. References The Coca-Cola Company Analyst Meeting - Day 2 - Final. (n.d). Fair Disclosure Wire (Quarterly Earnings Reports), Retrieved from EBSCOhost Coca-Cola Company. (2011). Various pages on the official website. Retrieved March 29, 2011, from http://www.thecoca-colacompany.com Coca-Cola reports volume growth in Q2. (2010). Beverage Industry, 101(8), 8. Retrieved from EBSCOhost. Miltenburg, J. (2009). Setting manufacturing strategy for a company's international manufacturing network. International Journal of Production Research, 47(22), 6179-6203. doi:10.1080/00207540802126629 Okazaki, S., Mueller, B., & Taylor, C. R. (2010). MEASURING SOFT-SELL VERSUS HARDSELL ADVERTISING APPEALS. Journal of Advertising, 39(2), 5-20. Retrieved from EBSCOhost. Pearce, J.A. & Robinson, R. B. (2011). Strategic Management: Formulation, implementation, and control (12th ed.). Boston, MA: McGraw-Hill/Irwin. Retrieved from University of Phoenix, S