BUSINESS PART What is
1
Strategy?
Comparison of strategy & strategic management approaches
BASIS FOR COMPARISON STRATEGY STRATEGIC MANAGEMENT
Meaning Strategy is the process of creating a Strategic management is a series of
serious of coordinated activities with management decisions and actions that
the purpose of occupying a valuable determine the company's long-term
position in the competitive landscape. performance. (A, Abbass F. 2003)
Focus on Focus on the results of the best It emphasizes on the producing of
strategic decisions strategic results, emerging markets,
innovative products, new technologies,
etc.
Management a management by plans. A management by results.
Process Analysis flow (Burnes 2004) Action-oriented process
Function Identifying actions to be taken. Identifies the action to be taken, the
person who is performing the action, the
correct time to perform the measures, and
the way in which they were performed.
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Strategy, in short, bridges the gap between “where we are” and “where we want
to be”.
Strategic Management
How Strategy is Managed?
Broadly speaking, strategic management is to make "strategic decisions", that is, decisions that can answer the above
questions.
Strategic management is the process of determining the company's strategy. This also applies to the process by
which management chooses a set of feasible strategies to improve its success rate (De Wit & Meyer, 2010).
A comprehensive strategic management process has three main components, as shown in the following figure:
Strategic Strategy Strategic
Environmental Implementation
Formulation Evaluation
Scanning
• Vision • SWOT analysis • Project • Analysis &
• Mission • Corporate level • Procedural assessment
• Objectives strategy • Resource
• Business-level Allocation
strategy • Structural
• Strategic Plan • Behavioral
Fig.1: Strategic Management Process Source: businessjargons.com
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PART 2
Strategic management
Presentation on Coca-Cola
Introduction
The organization used in this particular presentation is The Coca-Cola
Company.
The Coca-Cola Company has developed into one of the most
recognized organizations in the world. Founded in 1886, it has achieved
unparalleled success and incredible recognition in the non-alcoholic
beverage and syrup market (Coca-Coal 2020). Although the
organization has been operating in the international market and has
achieved considerable success, it is very important to analyze the
company's strategic goals and evaluate their implications. 4
Mission Statement
"Over many years we've focused, reshaped and honed our vision so that today, we have a unique
structure, the Coca-Cola System, which helps us work with our bottling partners, focusing on the
following areas to deliver on our mission.
• To refresh the world...
• To inspire moments of optimism and happiness...
• To create value and make a difference."
Values Purpose Strategy
What the company believes in "Together with our Why the company exists The competitive position and
passion for success, there are a number of other • People - Employees & distinctive competence
values embedded in our culture, values that we all customers • Quality maintenance
share:" • Planet - Global citizens
• Leadership: the courage to shape a better
• Innovation
• Partners - Mutual loyalty
future • Portfolio - Beverage brands
• Portfolio expansion
• Integrity: be real Coca Cola • Productivity - efficient
• Accountability. if it is to be, It's up to me • Profit - Maximize return • Shareholder satisfaction
• Collaboration; leverage collective genius
• Innovation: seek, imagine, create, delight (Coca-Cola, 2020) 5
• Quality: what we do, we do well
SWOT Analysis of Coca-Cola
Bargaining power over suppliers
The most valuable brand in the Increased demand for healthy food
world and beverages-low calorie
A leader in global carbonated Growing in beverage consumption
drinks in emerging markets
Diversified product portfolio. Acquisition growth – other
Strong Marketing and advertising companies
Effective CSR campaign S
Strength
O
Opportunity
Retailers - Cinema
INTERNAL EXTERNAL
Significant focus on carbonated
drinks W
Weakness
T
Threats
Change in consumer taste in the
Undiversified product portfolio developed markets.
Many brands with insignificant Product saturation in mature
amount of revenues markets.
High debt - assets New government regulations on soft
High focus on carbonated drinks- drinks.
Competition from PepsiCo
Healthier lifestyles Helpful Harmful
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Sources: (SWOT Analysis of Coca-Cola 2020)
Euromonitor International. (2019). Coca-Cola Co, The in Soft Drinks. Euromonitor International.
The Coca Cola Company. (n.d.). Retrieved from The Coca Cola Company: https://www.coca-colacompany.com
Strategic Statement (Choices) of Coca-Cola
Coca-Cola is the world's largest beverage company, serving approximately 1.9 billion people every day, with a market
share of 42.3. As competition intensified, competitors in the industry have proposed new strategies that threaten Coca-
Cola. Therefore, in order to overcome competition, it is very important to develop certain strategies to analyze and
evaluate strategic objectives of the company.
According to Bowman's clock strategy and Michael Porter's three generic strategies namely cost leadership, focus
strategy and differentiation strategy (Kossowski, 2007), Coca-Cola currently focuses on differentiation strategy . In
order to realize this strategy, the company has carefully used the following advantages
• product quality improvement, (A leader in global carbonated drinks)
• brand strength (The most valuable brand in the world) and
• buyer loyalty (Increased demand for healthy food and beverages-low calorie)
Coca-Cola has been effectively using powerful and ineffective product distribution channels to differentiate it from
rivals such as Pepsi. 7
Strategic Choices of Coca-Cola
Differentiation
High
4
Narrow
Segmentation 3 5-Focused
Hybrid differentiation
Market Scope
Perceived
2 6
value to
Low Price Risky, high
consumer migrants
Cost 1 7
Broad
Differentiation Leadership Low Price
Low added value
Low Price
Low added value
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Low Loss of market
share
Low High
Price
Uniqueness Low Cost Fig. Bowman’s Strategy Clock
Competency
Fig. 2 : Coca cola's Michael Porter's generic strategies Fig. 3 : Coca cola's Bowman's clock strategy
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References
• Alkhafaji, Abbass F. (2003). Strategic Management: Formulation, Implementation, and Control in a Dynamic Environment
• Alexander Kossowski,(2007). Strategic management: Porter's model of generic competitive strategies - theory and analysis
• Burnes, B (2004), Managing Change (4th Edition)
• Coca-colacompany.com. (2020). The Coca-Cola Company - More Than A Beverage Company. Available at: https://www.coca-
colacompany.com/company [Accessed 28 July 2020].
• De Wit, B., & Meyer, R. (2010). Strategy: Process, Content, Context, An International Perspective. New York, NY: Cengage
Learning EMEA.
• Hill, C., & Jones, G. 2009. Strategic Management Theory: An Integrated Approach. New York, NY: Cengage Learning.
