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Strategic Management in an International Context – Coca-Cola


As countries recover from COVID-19, multinational companies’ success and competitiveness will be determined by their ability to manage complexity efficiently and effectively in uncertain times: developing core competencies and dynamic capabilities related to strategic capital allocation, cost reduction, and infrastructure in the factory’s expansion. This is unquestionably the first step toward long-term healing. The Coca-Cola Company’s initiatives are analyzed and critically evaluated in this research, which is active in the beverage sector around the world, particularly in Malaysia. The Coca-Cola Company is a multinational beverage company based in Atlanta, Georgia, that was established under Delaware general corporate law. Coca-Cola is a well-known brand with a number of distinct advantages. Market leadership is based on a commitment to product quality and marketing. Food and beverage manufacturers use manpower, machinery, energy, and scientific knowledge to convert agricultural raw materials into intermediate or final consumption products.

Managing Demands for Localisation and Globalisation

A localization strategy is a visible market approach that an organization considers buying trends, customer behavior, and social contrasts common to all countries in which it operates. It is very important to adhere to cultural expectations, such as treating Coca-Cola customers properly. For Coca-Cola, globalized demand is a change in the relative demand for different types of work (Adamik, and Nowicki, 2019, p. 4954). This means that some companies experience a decrease in demand when their work moves abroad, while others experience an increase in demand as a result of globalization. The rise of globalization also has political implications that affected Coca-Cola even during the pandemic.

These strategies consist of cost management, differentiation, cost focus, and focus differentiation. With regard to cost management strategy, an organization tries to establish itself as a low-cost producer in its industry. The Coca-Cola Company managed its position through several key factors that are a source of lasting competitive advantage. Michael Porter identifies three main strategies that can help companies build a competitive advantage. These strategies are cost reduction, differentiation, and focus.

Coca-Cola uses competitive differentiation strategies to increase competitiveness, brand awareness, customer loyalty, and value to dominate its industry. Coca-Cola uses a variety of competitive strategies to improve its core competitiveness, brand awareness, customer loyalty, and value awareness in order to gain a dominant position in the industry. Coca-Cola’s differentiation strategy has made products ranging from coffee to tea and fruit juices to sports drinks and water to soft drinks the most famous names globally (Bose, and Dey, 2019, p. 9). Companies using different strategies try to convince their customers to pay more for their products and services by offering their own satisfying features. When customer needs are diversified, the industry is not differentiated, and market competition is fierce, companies adopt differentiating strategies based on their resources and capabilities, develop their own products, and increase their reputation. Differentiation strategies focus on creating unique and reputable products and services.

COVID-19 has had a major negative impact on Coca-Cola’s approach of taking low-cost leadership and differentiating between Malaysia’s domestic and international markets. For example, orders for motion control restricted the operation and sale of Coca-Cola products and reduced profits. Coca-Cola is one of the largest beverage companies in the world. And it has become one of the favorite drinks for everyone in the world. This problem first started in China; It is a big problem in the world. Many organizations, national or international, are affected by this epidemic. Crisis such as war, terrorist attack, natural disaster and others, international trade is easily affected by problems. The main focus of this study is to analyze the Coca-Cola Company’s overall strategy and performance during the COVID-19 pandemic. In the effect of the presence of coronavirus in international activities, the results showed that the number of respondents buying Coca-Cola products from online shopping platforms increased during epidemics (Hoffmann, 2018, p. 668).

There are also several ways that the Coca-Cola company uses several generic strategies all in one to combat low sales during the pandemic. During the COVID-19 pandemic, Coca used low-cost management and differentiation to gain a competitive advantage. Coca-Cola is a well-known brand with a number of distinct advantages over its competitors. Its high market position is due to its attention to product quality, marketing, research and development, and a variety of other factors. Pepsi is the only big rival because it is the most popular beverage.

Coca-Cola has maintained its product pricing low during COVID-19. On the other hand, brand and product sales are still high, owing to product availability. As a result, the advantages of cost control are obvious. This aids in increasing revenue, establishing a wide consumer base and earning recognition. Coca Cola is also using differentiation strategies to make a difference during COVID-19, which stimulates the development of products such as soft drinks and services to deliver unique features and characteristics. Adding additional value to features helps the company offer special value to them.

Managing Industry Compliance and Choice

In terms of ‘Industry Development,’ the beverage industry is the organized economic activity connected with the production, extraction, and processing of raw materials. The beverage industry is one of the largest food processing sectors. For nonalcoholic drinks, Coca-Cola uses fruit juice and soft drinks from the food and beverage production sector. Any degree in organizational leadership should contain instruction on how to assist, survive, and thrive in the face of change. Coca-industry Cola’s compliance and choice management enables effective resource management. Any organization’s foundation is its resources, (Kroesen, 2019, p. 4780930). Space-related equipment, utilities, and other assets such as automobiles and an office or manufacturing site. One talent that leaders must acquire is the ability to control concrete expenses in order to be trusted to make wise decisions in the future.

Based on the Coca-Cola Company, Industrial Dynamics is primarily dedicated to the study of the driving forces of industrial evolution. In this sense, the analysis of industrial dynamics aims to understand the key variables that determine the processes of entry and exit, innovation and growth, as well as their evolution over time. Through the dynamics of the industry, Coca-Cola is able to promote the simplicity of nature. Coca-Cola has become a huge global industry with countless products, but it has never escaped its timeless ideals. It also enables Coca Cola to foster personalization, socialization, and building of experience. Generally, organizational leadership perspective enables Coca Cola to increase productivity. The right, consistent leadership can increase the productivity of the people, hence leading to high retention levels and nurturing of the future leaders to increase employee engagement (Lu, et al., 2018). The organisational leadership perspective’ for Coca Cola will also foster the implementation of an effective leadership style so as to make better decisions.

Compliance and choices in the beverage industry reduce legal issues. The most obvious result of compliance is a reduced risk of fines, fines, suspension, proceedings, or closure of the business. The beverage industry’s compliance and choice lead to better public relations.

Porter’s Five Forces of Coca-Cola

Threat of New Entrants: Medium Pressure

The barriers to access to the beverage industry are relatively small: there are no replacement costs for consumers, and no capital is required. New brands for new brands appear on the market at the same price as COLA products. Coca-Cola is not just a drink; it is also a brand. This is a very important market share for a long time, and loyal customers can not try the new brand

Threat of substitute products: from medium to high pressure

There are many types of energy drinks S / carbonated / juice. Coca-Cola does not really have a unique taste. In a blinded taste test, people can tell the difference between Coca-Cola and Pepsi

Buyer bargaining power: low pressure

Individual buyers are not putting too much pressure on Coca-Cola wholesalers like Walmart, but online consumers are weakening.

Suppliers’ bargaining power: Low pressure

The main ingredients include soft drinks, phosphoric acid, sweeteners and caffeine. Providers are not focused or distinct. Coca-Cola is probably one of these suppliers or the largest consumer.

The rivalry between existing companies: high pressure

The Pepsi competitors currently have large beverage products under its brand. Coca-Cola and Pepsi are both common carbonated beverages and are used and sponsored outdoor events and activities. There are other popular soda brands on the market.

In conclusion, Coca-Cola’s differentiation strategies aim to develop products such as soft drinks and services. The added value of features helps companies offer special rates. Buying bottled water is cheaper, but buying vitamin water is a bit more expensive.

Managing the paradox of Profitability and Social Responsibility

At Coca-Cola, there is a paradox between profitability and responsibility. According to McKinsey, the organization’s goal is to create long-term value. The means are making long-term profits. The organization is responsible for generating higher returns on equity than it was able to achieve Coca-Cola. Promoting an organization’s social responsibility promotes a positive correlation with corporate profitability (Meyer, and Xin, 2018, p. 1827) Therefore, CSR is believed to improve a company’s profit opportunities. This is reflected in the growing brand awareness in society.

With CSR fully integrated into its operations, Coca-Cola can expect good economic returns on its investment. It has been proven that companies incorporating CSR increase sales and prices and reduce employee turnover. Coca-Cola is developing a business strategy to become a full-fledged beverage company, serving more beverages and more packaging in more places, including a variety of low-sugar and sugar-free alternatives.

By implementing a CSR strategy, Coca-Cola can reap benefits such as increased sales, better brand reputation and higher stock prices. The increase in sales is the result of larger market demographics. Coca-Cola has been involved in various sustainability programs through its presence. The main drawback of CSR is the imbalance in costs for SMEs. Large companies can afford to allocate a budget for CSR reports, but this is not always available to small businesses with 10-200 employees. For Coca-Cola, the main reason is that most of the CSR efforts are largely immeasurable. Organizations lack the tools they need to prevent them from developing successful efforts and to measure their social impact. It also reduces accountability in cases where CSR efforts are invalid or exacerbate the situation.

Coca-Cola can fully integrate CSR into its operations and expect good economic returns on its investment. Companies that integrate CSR have been proven to increase sales and prices and reduce employee turnover. By investing in CSR, Coca-Cola has the ability to increase brand awareness, improve corporate reputation, improve sales and customer retention, save operational costs, improve financial performance, acquire talent and retain employees. One can improve, grow the organization, and more. Access to capital. It is hard for Coca-Cola to reject the product. However, the consequences of a lack of CSR include the customer rejecting the company’s products. This is because companies that do not prioritize their corporate social responsibility strategy are at risk of losing talent to those who do.

In conclusion, companies practicing CSR are highly satisfied and satisfied with their employees. If Coca-Cola fulfills its legal obligations, one of the benefits of compliance is the ability to promote Coca-Cola on its website and in marketing materials. For example, when posting a job, tell them that Coca-Cola is an employer with equal opportunities. When Coca-Cola publishes its mission on a website, it also states that it does not discriminate based on race, sex, creed, or sexual orientation. Beverage industry choice and compliance improve operational efficiency (Valeri, 2021). Many companies’ compliance issues are related to employee protection. The more employees feel they are working in a fair, professional, and safe environment, the more likely they are to remain brand loyal. This is because employees feel that working for a socially conscious employer gives them a purpose.

Personal Reflections and Reflection on Learning

I have learned a lot from this coursework. I have found out that powerful handling, enterprise compliance, and preference is key in making a business very powerful. It also fosters proper resource management as businesses are constructed on resources, workplace and production facility, utilities, and extra belongings like vehicles. Managing the substantial fees is one ability that leaders need to learn so that they may be counted directly to make clever destiny decisions. I have also found out that business dynamics is largely committed to taking a look at the drivers of the evolution of industries. In this sense, the evaluation of the dynamics of the enterprise seeks to seize predominant variables using the approaches of access and exit, innovation and growth, and to apprehend their evolution over time.


Adamik, A. and Nowicki, M., 2019. Pathologies and paradoxes of co-creation: a contribution to the discussion about corporate social responsibility in building a competitive advantage in the age of industry 4.0. Sustainability, 11(18), p.4954.

Bose, I. and Dey, S., 2019. A Critical Discourse on the Workforce Localisation in the Globalised Era: Some Reflections. Review of Management, 9.

Hoffmann, J., 2018. Talking into (non) existence: Denying or constituting paradoxes of Corporate Social Responsibility. Human Relations, 71(5), pp.668-691.

Kroesen, J.O., What Is the Coca Cola Sustainability Initiative Effect on Production? Basil Al-Halil 4780930.

Lu, W., Ye, M., Chau, K. W., & Flanagan, R. (2018). The paradoxical nexus between corporate social responsibility and sustainable financial performance: Evidence from the international construction business. Corporate Social Responsibility and Environmental Management, 25(5), 844-852.

Meyer, K.E. and Xin, K.R., 2018. Managing talent in emerging economy multinationals: Integrating strategic management and human resource management. The International Journal of Human Resource Management, 29(11), pp.1827-1855.

Valeri, M., 2021. Organizational Studies: Implications for the Strategic Management. Springer Nature.


Wong, J. Y., & Dhanesh, G. S. (2017). Communicating corporate social responsibility (CSR) in the luxury industry: Managing CSR–luxury paradox online through acceptance strategies of coexistence and convergence. Management Communication Quarterly, 31(1), 88-112.


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