Exercise 5A: Develop Hypothetical Coca-Cola Company Strategies

Chapter 5 identifies, defines, and exemplifies 11 key types of strategies available to firms. This exercise will give you practice formulating possible strategies within each broad category.

Instructions

1. Step 1Review the Cohesion Case and your answers to the prior end-of-chapter assurance-of-learning exercises.

2. Step 2For the 11 strategies given in Table 5-3, identify a feasible alternative strategy that could reasonably benefit the Coca-Cola Company

3. TABLE:

Strategy Definition Example Forward Gaining ownership or increased control over distributors or retailers Integration Nike opening 100 outlet stores and selling 30% more products on its website Backward Seeking ownership or increased control over suppliers Boeing building 80% of its wing flap motors in-house Integration Horizontal ontrol Nestl purchasing Sweet Earth Seeking ownership or increased over competitors Integration Foods Market Penetration Seeking increased market share for present products in present markets through greater marketing Cristiano Ronaldo and LeBron James sign lifetime endorsement deal with Nike Market Introducing present products into new geographic area Publix building 20 new supermarkets in North and South Carolina Development Product Development Seeking increased sales by improving present products or developing new ones Ford shifting one-third of its scheduled R&D budget on gas/diesel engines to electric engines Related Adding new but related products Walmart acquired Jet.com for $3.3 billion Diversification Unrelated Adding new, unrelated products CVS pharmacy acquiring Aetna Diversification insurance Retrenchment Eli Lilly laying off 3,500 employees Regrouping through cost and asset reduction to reverse declining sales and profit Divestiture Selling a division or part of an organization Toshiba aims to sell its memory-chip unit to Bain Capital Liquidation Selling all of a company's assets, in parts, for their tangible worth Ringling Bros. and Barnum & Bailey Circus liquidated (last performance was on May 21, 2017)