Strategic Planning and the Long Term Success of Multinationals

by

ACKNOWLEDGEMENT

I would take this opportunity to thank my research supervisor, family and friends for their

support and guidance without which this research would not have been possible.

DECLARATION

I, [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

Signed __________________ Date _________________

ABSTRACT

Strategic management is a significant concept today for the multinational corporation. To determine the extent to which it supports the business, this paper focuses on Coca Cola's strategic direction and the use of strategies to a successful business environment. The secondary research is used by an analysis and interpretation of the literature, and deduction of the findings. It is found that the Coca Cola's strategic success lies in a well formulated strategy, its implementation and evaluation. It can be said that the success is from the brand attachment instead of the product itself and this attachment has been a result of long term commitment of the company to the consumer preferences and a best use of the strategic tools throughout the product lifecycle.

TABLE OF CONTENTS

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER 1: INTRODUCTION1

Study Background1

Problem Statement4

Study Purpose4

Objective of the Study4

Rational of the Study5

Research Questions5

The Measure of Success5

Key Definitions6

Strategic Management6

Strategic Planning6

MNCs7

CHAPTER 2: LITERATURE REVIEW8

Basic Strategic Management Perspectives8

Levels of Strategic Management9

The Company Level10

Business Unit Level10

School of Thoughts in Strategic Management11

The Concepts of Strategy11

Market Opportunities12

Phases or Stages of Strategic Management15

Strategy Analysis15

Strategy Formulation16

Implementation and Evaluation of Strategies17

Igor Ansoff's Strategic Success Model17

Level 1: Repetitive Environment18

Level 2: Expanding Environment- Slow Incremental18

Level 3: Changing Environment- Fast Incremental19

Level 4: Discontinuous Environment - Predictable19

Level 5: Surprising Environment- Unpredictable19

Strategic Management Issues and Multinationals20

History Of The Brand "Coca-Cola" In The World22

The Story of the Great Home Business23

Understanding the Strategic Choices of Coca Cola24

The Strategic Planning at Coca Cola25

Fighting the Competition through Strategic Management26

Strategic Capabilities and Choices27

CHAPTER 3: METHODOLOGY29

The Research Design29

Data Collection Procedure29

Data Analysis30

SWOT Analysis30

PEST Analysis32

Industry Analysis33

Porter's Five Forces Model34

The Marketing Mix Model35

Ethical Consideration36

CHAPTER 4: RESULTS AND ANALYSIS38

SWOT Analysis38

Strengths38

Weaknesses38

Opportunities39

Threats40

Pest Analysis41

Political Factors41

Economic Influence41

Socio Cultural Influence42

Technological Factors42

Industry Analysis42

Porter's Five Forces43

Barrier to Market Entry44

Bargaining Power of Supplier44

Bargaining Power of Buyers45

Threats of Substitute45

Marketing Mix Model45

Product46

Price46

Place47

Promotion47

Formulation of Long term Objectives at Coca Cola47

Marketing and Coca Cola's Success48

Coca-Cola Advertisements from the Early Years49

Coca-Cola Advertising at the End of the 19th Century50

Coca-Cola Christmas Truck51

The Competition53

International Distribution54

Financial Considerations55

CHAPTER 5: CONCLUSION AND RECOMMENDATION57

REFERENCES60

CHAPTER 1: INTRODUCTION

Study Background

Strategic management is a process of information and decision-making (assisted scheduling, organization and control), which aims to resolve the key problems of the business, its survival and development with particular emphasis on environmental impacts and the company's own factors of production potential (Polk,2009,61-78).

It is a holistic approach, which in the face of environmental turbulence tends to counteract the negative external trends and find an effective competitive advantage ensuring the survival of the objectives of the company.

The multinational organizations established for an indefinite period have their own purpose, regardless of mission or purpose for which they are created - as long ...