1 Explain Coca-Cola's pupose behind moving internationally and what was the strategy adopted?

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Case Study
Coke is ane of the most recognizable brands in the world The goal of the company's
international marketing tem is to help expand global sales. The company sold its first Coke in
1886 at Jacobs Pharmacy, but the company's mission hasn't changed; the goal is to sell the
highest number of beverages to the most people. Based in Atlanta, Georgia, the company focuses
on making non-alcoholic beverages accessible. With hmdreds of brands, some of the more
popular examples are Diet Coke, Sprite, Dasani, Nestea, and Fanta. Worldwide, nearly 10,000
Coke beverages are consumed every second The more Cokes the international marketing team
sells the more revenue the company makes. Much of the company's 40 billion dollars in revenue
growth now comes from globalization, not just growth within the borders of the United
States. Globalization is the expansion and development of intemational markets outside of the
Company's home country
Coke, like many successful global companies, focuses on those regions with the greatest
potential for growth. Coke started branching out internationally in the 1920s but really began its
global expansiou in the 1980s. This is when Coke implemented its strategic plan to gain entry
into untapped, previously hostile, or undeveloped environments. Coke started with widening its
production primarily bottling facilities, in friendly areas like Guam and Europe. As people
becane more familiar with Coke's prodhucts, the conpany decided to expand to Australia,
Austria, Italy, Norway, and South Africa. These were the areas that had good relationships with
the United States, which meant inplementing trade, transportation and communications
Detworks went a lot smoother Surprisingly, even World War II brougat an increase in demand
for Coke prochucts. The federal goverament worked out a deal with Coke to sipply the troops
with its prochucts for no more than a nickel a beverage. In preparation for widening its base. Coke
focused on creating relationships with global stakeholders like the Olympics and United
Naions. The Okmpics, for exanple, took Coke's name wherever the Games weut. By the 1970s,
Coke also enfered into parmerships with the Special Olynpics, Tour de France. NASCAR and
FIFA As these sportng eveuts broadened their fan base worldwide Coke followed Enlarging
its consumer base in tie 1980s aud 905 demanded more planning from Coke. The company
brought production eperations to previously less stable areas like Russia. Genmany India, and
Vieman. This is when Coke began looking to expand into China
Transcribed Image Text:1 / 2 Case Study Coke is ane of the most recognizable brands in the world The goal of the company's international marketing tem is to help expand global sales. The company sold its first Coke in 1886 at Jacobs Pharmacy, but the company's mission hasn't changed; the goal is to sell the highest number of beverages to the most people. Based in Atlanta, Georgia, the company focuses on making non-alcoholic beverages accessible. With hmdreds of brands, some of the more popular examples are Diet Coke, Sprite, Dasani, Nestea, and Fanta. Worldwide, nearly 10,000 Coke beverages are consumed every second The more Cokes the international marketing team sells the more revenue the company makes. Much of the company's 40 billion dollars in revenue growth now comes from globalization, not just growth within the borders of the United States. Globalization is the expansion and development of intemational markets outside of the Company's home country Coke, like many successful global companies, focuses on those regions with the greatest potential for growth. Coke started branching out internationally in the 1920s but really began its global expansiou in the 1980s. This is when Coke implemented its strategic plan to gain entry into untapped, previously hostile, or undeveloped environments. Coke started with widening its production primarily bottling facilities, in friendly areas like Guam and Europe. As people becane more familiar with Coke's prodhucts, the conpany decided to expand to Australia, Austria, Italy, Norway, and South Africa. These were the areas that had good relationships with the United States, which meant inplementing trade, transportation and communications Detworks went a lot smoother Surprisingly, even World War II brougat an increase in demand for Coke prochucts. The federal goverament worked out a deal with Coke to sipply the troops with its prochucts for no more than a nickel a beverage. In preparation for widening its base. Coke focused on creating relationships with global stakeholders like the Olympics and United Naions. The Okmpics, for exanple, took Coke's name wherever the Games weut. By the 1970s, Coke also enfered into parmerships with the Special Olynpics, Tour de France. NASCAR and FIFA As these sportng eveuts broadened their fan base worldwide Coke followed Enlarging its consumer base in tie 1980s aud 905 demanded more planning from Coke. The company brought production eperations to previously less stable areas like Russia. Genmany India, and Vieman. This is when Coke began looking to expand into China
Read
C1(32-6
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The 2000s brought about Coke's involvement in social issues. This is a different type of
marketing effort for the international team. The company provided relief related to the UN AIDS
initiatives, September 11th terrorist attacks, and earthquake relief in Haiti. Since this time, the
company has entered into additional philanthropic ventures, as well as sponsorships with the
NBA and co-marketing with popular television shows like American Idol. To market to an
international audience, Coke has adapted its marketing strategy. Coke's international marketing
team continues to look for ways that Coke can diversify its production, marketing, and outreach
methods. It's clear that Coke's international business strategy, the process Coke uses to sell
products in foreign lands, is working. For example, in 2015, Latin America and South America
sales totaled 29% of Coke's volume, while North America had 22%. The intemational division
accounted for nearly 75% of Coke's growth. It's also important to note that Coke has consciously
run its intemational division differently than its domestic. Domestically, beverages are fully
prepared and then distributed. Whereas for Coke's international sales, a concentrate is prepared
and sold to local bottlers. A local contractor then creates the final beverage. choosing to add
ingredients suitable to that partícular region, and finally it is distributed. The beverage can taste
different, depending on the likes and dislikes of the specific market.
1. Explain Coca-Cola's purpose behind moving internationally and what was the strategy
adopted?
2. Explain the reason(s) why Coke has consciously run its international division differently
than its domestic one?
G玩 国 国
66.7%
个
Transcribed Image Text:Read C1(32-6 -BM.. X 早2 2/2 The 2000s brought about Coke's involvement in social issues. This is a different type of marketing effort for the international team. The company provided relief related to the UN AIDS initiatives, September 11th terrorist attacks, and earthquake relief in Haiti. Since this time, the company has entered into additional philanthropic ventures, as well as sponsorships with the NBA and co-marketing with popular television shows like American Idol. To market to an international audience, Coke has adapted its marketing strategy. Coke's international marketing team continues to look for ways that Coke can diversify its production, marketing, and outreach methods. It's clear that Coke's international business strategy, the process Coke uses to sell products in foreign lands, is working. For example, in 2015, Latin America and South America sales totaled 29% of Coke's volume, while North America had 22%. The intemational division accounted for nearly 75% of Coke's growth. It's also important to note that Coke has consciously run its intemational division differently than its domestic. Domestically, beverages are fully prepared and then distributed. Whereas for Coke's international sales, a concentrate is prepared and sold to local bottlers. A local contractor then creates the final beverage. choosing to add ingredients suitable to that partícular region, and finally it is distributed. The beverage can taste different, depending on the likes and dislikes of the specific market. 1. Explain Coca-Cola's purpose behind moving internationally and what was the strategy adopted? 2. Explain the reason(s) why Coke has consciously run its international division differently than its domestic one? G玩 国 国 66.7% 个
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