COLLEGE OF BUSINES/ATC

UNIVERSITI UTARA MALAYSIA

BFMA 6043 INTERNATIONAL BUSINESS

SEMESTER 2011/2012

INDIVIDUAL PROJECT NO: a couple of

PREPARED TO GET:

DR . SABRI

PREPARED BY:

MOHD GHAZALLY BIN ABDUL RAZAK (MATRIX NO: 808707)

SUBMISSION PARTICULAR DATE: 4TH. DECEMBER 2011

Coca Cola Case Study

Case Discussion Questions

Problem 1

For what reason do you think that Roberto Goizueta switched by a strategy that emphasized localization towards one that emphasized global standardization? What were the benefits of such approach? Answer one particular

Roberto Goizueta switched from localization technique to global standardization strategy since during his initial control of Coca Soda Company in 1980's, the Coca Diet coke brand has already been marketed to a lot more than 76 countries in the world plus the subsidiaries were managed singularly by the neighborhood management to fit with community taste and preference. This practice has given awful impact on the company profit as there were a lot duplication of functions, smaller sized scale of production works and too much of customization which will limits the capability of the company to capture the charge reduction. The main benefit of Global Standardization is the business will enjoy enhance profitability and profit development by reaping the cost decrease through economies of scale(produce in huge quantity), learning effect(the creation efficiency is improving every once in awhile as the worker become expert following repetitive sequence) and location economies(product's value creation is done at the optimal location/environments). So with the Global Regular, the product can be produced at most economic selling price and will make better identified value for money spent by the customer. Question a couple of

What had been the limitations of Goizueta's Technique that asked his heir, Daft, to shift far from it? That which was Daft aiming to achieve? Daft's strategy likewise did not create the desired results. Why do you consider this was...