Iconic American soda maker Coca Cola has long been among the most international companies. The company made its first move outside the United States when it entered Cuba in 1902. By 1929 Coca Cola was being marketed in 76 countries around the world. In World War II, Coke struck a deal to supply the US military with Coca-Cola wherever it went in the world. During this period, the company established 63 bottling plants worldwide. Fueled in part by the belief that the U.S. market will eventually reach maturity and the perception of great growth opportunities overseas, its global thrust continued after the war. Today, more than 59,000 of the company's 71,000 employees are located in 200 countries outside the United States, and more than 70 percent of Coke's case volume is located in international markets. until the 1980s, Coke's strategy was substantial localization. Local operations have been given a high degree of independence to run their own operations as they see fit. All that changed in the 1980s and 1990s under the leadership of Roberto Goizueta, a talented Cuban immigrant who became CEO of Coke in 1981. Goizueta, Coke's Diet Coke, Cherry Coke, and the like. His main belief was that the main difference between the US and international markets is the lower level of penetration in the second market, where per capita consumption of cola is only 10 to 15 percent of US consumption. Goizueta pushed Coca-Cola to become a global company, centralizing a major management and marketing effort at the company headquarters in Atlanta, focused on key brands and acquired stock in foreign bottlers to allow the company more strategic control over them. This one-size-fits-all strategy is built around standardization and the realization of economies of scale using, for example, the same advertising message around the world. Goizueta's global strategy was embraced by his successor, Douglas Ivester, but in the late 1990s the effort for a one-size-fits-all strategy was waning when smaller, more agile local competitors marketing local beverages began to stall Coke. When growth engine Coke failed to meet its financial goals for the first time in a generation, Ivester resigned in 2000 and was replaced by Douglas Daft. Daft initiated a 180-degree change in strategy. Daft, Coke' He believed that the flour should put more power in the hands of local country rulers. The strategy considered that product development and marketing should be tailored to local needs. It laid off 6,000 employees, mostly in Atlanta, and gave the country's rulers much more autonomy. What's more, in a dramatic move for a marketing company, it announced that the company would stop advertising globally and handed back advertising budgets and control of creative content to country executives. Ivester's move was partly influenced by the Coca-Cola experience in Japan, where the company's second most profitable market and best-selling Coca-Cola product was Georgia Coffee, the canned cold coffee beverage sold in the United States, not a carbonated beverage. vending machines. The Japanese experience suggests that products should be customized to local tastes and preferences, and that Coca-Cola's It seemed to indicate that the government would do well to decentralize more decision-making authority to local rulers. However, the shift to localization did not produce the expected growth, and by 2002 the pendulum was swinging towards more centralized coordination with Atlanta's exercise of oversight over marketing and product development in different countries. This time, however, it wasn't the one-size-fits-all morality of the Goizueta era. Under the leadership of Neville Isdell, who became CEO in March 2004, Coke now studies and directs local marketing and product development, but embraces the belief that strategy, including pricing, product offerings, and marketing message, must vary from market to market. to suit local conditions. In other words, Isdell's position represents a midpoint between Goizueta's strategy and Daft's. Also, Isdell stressed the importance of using good ideas across countries. An example of this is Georgia Coffee. Seeing the success of this beverage in Japan, Coke entered into a strategic alliance in October 2007 with Illycaffe, one of Italy's leading coffee producers, to create a global franchise for canned or bottled cold coffee beverages. Similarly, in 2003, the Coca Cola subsidiary in China developed a low-cost, still orange drink that quickly became one of the best-selling beverages in that country. Seeing the beverage's potential, Coke is now launching it in other Asian countries as well. It was a huge hit in Thailand, where it was released in 2005, and seems to be gaining traction in India, where it was released in 2007. stressed the importance of using good ideas across countries. An example of this is Georgia Coffee. Seeing the success of this beverage in Japan, Coke entered into a strategic alliance in October 2007 with Illycaffe, one of Italy's leading coffee producers, to create a global franchise for canned or bottled cold coffee beverages. Similarly, in 2003, the Coca Cola subsidiary in China developed a low-cost, still orange drink that quickly became one of the best-selling beverages in that country. Seeing the beverage's potential, Coke is now launching it in other Asian countries as well. It was a huge hit in Thailand, where it was released in 2005, and seems to be gaining traction in India, where it was released in 2007. stressed the importance of using good ideas across countries. An example of this is Georgia Coffee. Seeing the success of this beverage in Japan, Coke entered into a strategic alliance in October 2007 with Illycaffe, one of Italy's leading coffee producers, to create a global franchise for canned or bottled cold coffee beverages. Similarly, in 2003, the Coca Cola subsidiary in China developed a low-cost, still orange drink that quickly became one of the best-selling beverages in that country. Seeing the beverage's potential, Coke is now launching it in other Asian countries as well. It was a huge hit in Thailand, where it was released in 2005, and seems to be gaining traction in India, where it was released in 2007. Seeing the success of this beverage in Japan, Coke entered into a strategic alliance in October 2007 with Illycaffe, one of Italy's leading coffee producers, to create a global franchise for canned or bottled cold coffee beverages. Similarly, in 2003, the Coca Cola subsidiary in China developed a low-cost, still orange drink that quickly became one of the best-selling beverages in that country. Seeing the beverage's potential, Coke is now launching it in other Asian countries as well. It was a huge hit in Thailand, where it was released in 2005, and seems to be gaining traction in India, where it was released in 2007. Seeing the success of this beverage in Japan, Coke entered into a strategic alliance in October 2007 with Illycaffe, one of Italy's leading coffee producers, to create a global franchise for canned or bottled cold coffee beverages. Similarly, in 2003, the Coca Cola subsidiary in China developed a low-cost, still orange drink that quickly became one of the best-selling beverages in that country. Seeing the beverage's potential, Coke is now launching it in other Asian countries as well. It was a huge hit in Thailand, where it was released in 2005, and seems to be gaining traction in India, where it was released in 2007. entered into a strategic alliance with Illycaffe, one of the leading coffee producers in the world, to create a global franchise for canned or bottled cold coffee beverages. Similarly, in 2003, the Coca Cola subsidiary in China developed a low-cost, still orange drink that quickly became one of the best-selling beverages in that country. Seeing the beverage's potential, Coke is now launching it in other Asian countries as well. It was a huge hit in Thailand, where it was released in 2005, and seems to be gaining traction in India, where it was released in 2007. entered into a strategic alliance with Illycaffe, one of the leading coffee producers in the world, to create a global franchise for canned or bottled cold coffee beverages. Similarly, in 2003, the Coca Cola subsidiary in China developed a low-cost, still orange drink that quickly became one of the best-selling beverages in that country. Seeing the beverage's potential, Coke is now launching it in other Asian countries as well. It was a huge hit in Thailand, where it was released in 2005, and seems to be gaining traction in India, where it was released in 2007. Seeing the beverage's potential, Coke is now launching it in other Asian countries as well. It was a huge hit in Thailand, where it was released in 2005, and seems to be gaining traction in India, where it was released in 2007. Seeing the beverage's potential, Coke is now launching it in other Asian countries. It was a huge hit in Thailand, where it was released in 2005, and seems to be gaining traction in India, where it was released in 2007.

2. What were the limitations of Goizueta's strategy that convinced his successor, Daft, to move away from him? What was Daft trying to achieve? Daft's strategy also did not produce the desired results. Why do you think this happened?

Answer rating: 100% (QA)

Goizuetas strategy of substantial localization which focused on standardization and economies of scale had limitations that convinced his successor Da... View the full answer