International Business: Assignment of

Assignment of
International business
Jinnah university for women
Department of business
administration
1
ASSIGNMENT NO: 02
TOPIC: CASE STUDY OF COCA-COLA
SUBMITTED BY: RIJA CHISHTY
CLASS: BBA IV-B
SUBMITTED TO: MISS NIDA MOHSIN
SUBMITTED ON:29-JULY-2020
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Table of Contents
ACKNOWLEDGMENT......................................................................................................4
EXECUTIVE SUMMARY................................................................................................. 5
CASE STUDY OF COCA-COLA.......................................................................................6
QUESTION NO.01...................................................................................................... 6
QUESTION NO.02...................................................................................................... 7
QUESTION NO.03...................................................................................................... 8
QUESTION NO.04...................................................................................................... 9
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ACKNOWLEDGMENT
We would like to thanks our honorable instructor, Miss Nida Mohsin for her kind
patience, guidance and support for the preparation of this report. We will always be
indebted to her for the valuable suggestions and time that she had spent for guiding us
throughout the course.
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EXECUTIVE SUMMARY
Coca Cola is the iconic soda maker company in America. The company made its first
move outside US in 1902. It starts expansion and today more than 59000 of the
company’s 71000 employees are located in 200 countries outside of US. It follows
different strategies, some of them failed but Coke didn’t stop trying, they redesign their
strategies and always tend to sustain in market. By this failures it learns how sustain in
global market. Standardization and localization doesn’t prove to be successful as
followed by Goizueta and Draft respectively. Success can be achieved in globalization by
keeping variation from market to market according to their local condition as followed by
Isdell. Thus, by following break even strategy Coca-Cola become best beverage seller.
Therefore, it teaches other companies to be flexible in its strategies in order to sustain in
market and for its success.
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CASE STUDY OF COCA-COLA
QUESTION NO.01
Why do you think that Roberto Goizueta switched from a strategy that emphasized
localization toward one that empathized global standardization? What were the
In 1981, Roberto Goizueta became the CEO of Coca-

Cola’s company. Goizueta pushed Coca-Cola to become a
global company. His focus was on core brands and brand
equity that’s why he centralizes every management and
marketing activities at the corporate headquarters in
Atlana so that company could have more strategic control.
According to perception, may be Goizueta have thought to

follow standardization methods instead of localization
because in many cases, standardization proves to be more
effective.
 As standardization promotes similar strategy followed by all so that there will be

uniformity in products over worldwide as well as uniformity also found in programs,
process, product line, services, and advertising.
 Moreover, it has economic benefits as well. When similar production method
followed by all, it will not only lowers cost but also increase production.
 It will target huge audience where widely acceptance of standardized products found.
 Likely, if same marketing strategy follow by every local country there will be no need
of redesigning of strategy helps in cost effectiveness.
 It may also be estimated that successful experience of one can easily be transfer to
everyone if every local company work as a centralize company.
 With this it has some additional benefits as it makes controlling, monitoring and
coordination easy.
Here are some benefits described that could impact Coca-Cola while using strategy of
standardization called as one-size-fits-all. But unfortunately, Coca-Cola stayed away
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from growth and its financial targets fails to hit because of difference in local taste and
preferences. Local competitors began to halt Coke’s growth. Thus, investor resigned in
2000. That’s why this strategy not proves to be effective as were expected by Roberto
Goizueta.
QUESTION NO.02
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?
Goizueta strategy didn’t give leverage to local country

managers, that’s why Draft shift away from it. Moreover, it
neglect the local needs of the company that varies according
to the country. Uniform programs and process become hard
to implement over worldwide countries.
According to , Coca Cola needed to put more power back in

the hands of local country managers. Product development and marketing should be
design according to the local needs of a country. He empowered local managers and
placed advertising budgets and control over creative content back in their hands.
Investor’s move was in part influenced by the experience of Coca Cola in Japan, second
most profitable market. These experiences allowed customizing product according local
tastes and preferences. Additionally, decision making authorities are decentralized to
local managers. However, the shift toward localization didn’t produce the growth that had
been expected. Atlana exercise overnight in the development of product and marketing
but did not achieve much growth, but this time is not as the one-size-fits-all.
This case may be because of the companies should match its local condition according to
market including price, product and promotion. They should decentralize according to
their country’s preferences. Company should give leverage idea across nation.
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QUESTION NO.03
How would you characterize the strategy pursued by Coca-Cola under Isdell's
leadership? 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?
When becoming CEO in 2004 Isdell’s follow the “strategy”

of leadership which encompasses pricing, marketing messages
and product offering that is different from market to market in
order to match the local conditions of the markets. Isdell’s
enterprises trying to find mid point between strategy of
Roberto Goizueta and Douglas Draft. Beside this he also
focused on the importance of leveraging good ideas and
lowering the cost of the product worldview. The Goizueta
(CEO from 1980-1990’s) focuses on the “one-size-fit-all” Strategy mean to build a
standardized strategy which done in worldwide, whereas draft (CEO from 2000-2004)
focuses on the “180 degree shift” strategy and decided to put decision making power in
the hands of local manager. But isdell strategy represent the break even between both
Goizueta and Draft. It means that he mix some aspect of “one-size-fit all” Strategy and
obtain some characteristics of “180 degree shift” strategy. The benefit of such strategy is
that coca-cola become best selling beverage in japan and around the nation. It also
become a huge hit in Thailand. The potential cost and risk of Isdell’s strategy is that it
differ from market to market which lead toward localization strategy again that is similar
to Goizueta strategy. Beside this the coca-cola should up-graded with all type beverages
demanded in the local markets and also be flexible to adjust its production in order to
keep hold on it’s continuous success.
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QUESTION NO.04
What does the evolution of Coca-Cola's strategy tell you about the convergence of
consumer tastes and preference in today's global economy?
As market leader coca cola is the best example of evolution. It adopt various strategies in
order to flourish and full fill consumer need by understanding their taste and preferences.
Beside this the coca cola company also understand the similarities and various
geographic region which includes income, cultural factor, social factor, educational level
and many more. In order to get success full coca cola also switches between different
strategies which includes localization and centralization strategies which mean that the
company full fill the local conditions by customizing the product according to local
consumers need which increase the worth of product. Beside this the company also face
failure in developing perfect strategy at the time of both Goizueta and Draft it’s because
people taste references changes and differ from each other which coca-cola neglected but
after a time period coca cola realized their deficiency and make new strategy in order to
get success in the market again which result that coca cola again rise in the market and
become a huge hit in international markets. So the learning lesson from this failure of
coca-cola is that when organizations moves towards globalization so it should not only
focuses on standardization but focus on local working patterns which means work
according to local country in which we are doing business. Company should hold variant
in products which are according to the country local taste.

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Assignment of

Jinnah university for women

TOPIC: CASE STUDY OF COCA-COLA

SUBMITTED BY: RIJA CHISHTY

CLASS: BBA IV-B

SUBMITTED TO: MISS NIDA MOHSIN

In 1981, Roberto Goizueta became the CEO of Coca-

According to perception, may be Goizueta have thought to

 As standardization promotes similar strategy followed by all so that there will be

Goizueta strategy didn’t give leverage to local country

According to , Coca Cola needed to put more power back in

When becoming CEO in 2004 Isdell’s follow the “strategy”

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