Coca Cola
Case Study
Coca Cola Closing Case
Chapter 12
Done By Desyani Rosadi
National University
June 14, 2011
Q&A
1. Why do you think that Roberto Goizueta switched from a strategy that emphasized localization towards one that emphasized global standardization? what were the benefits of such a strategy
localization is the process of adapting a product or service to a particular language, culture, and desired local "look-and-feel." Ideally, a product or service is developed so that localization is relatively easy to achieve.
Global Standardization is the process to push a international company / brand to become more centralized in management.
i think Roberto Goizueta switched Coca cola strategy from localization to global standardization in order to pushed Coke to become a global company, by centralizing a great deal of management and marketing activities at the corporate headquarters in Atlanta, focusing on core brands, and taking equity stakes in foreign bottlers so the company could exert more strategic control over them. This one-size-fits-all strategy was built around standardization and the realization of economies of scale by, for example, using the same advertising message worldwide.
2. what were the limitations of Goizueta's strategy that persuaded his successor, Daft, to shift away from it? What was Daft trying to achieve? Daft's strategy also did not produce the desired results. Why do you think this was the case?
The limitations of Goizueta's strategy was in the very 1990s is when Coke failing to hit the financial targets for the first time because the one-size-fits-all strategy was running out of steam, as smaller, more nimble local competitors marketing local beverages began to halt the Coke business development. So that, Daft shift away the strategy to be more localization. Daft was trying belief that Coke needed to put more power back in the hands of local country managers. He thought that strategy, product development, and
Coca Cola Closing Case
Chapter 12
Done By Desyani Rosadi
National University
June 14, 2011
Q&A
1. Why do you think that Roberto Goizueta switched from a strategy that emphasized localization towards one that emphasized global standardization? what were the benefits of such a strategy
localization is the process of adapting a product or service to a particular language, culture, and desired local "look-and-feel." Ideally, a product or service is developed so that localization is relatively easy to achieve.
Global Standardization is the process to push a international company / brand to become more centralized in management.
i think Roberto Goizueta switched Coca cola strategy from localization to global standardization in order to pushed Coke to become a global company, by centralizing a great deal of management and marketing activities at the corporate headquarters in Atlanta, focusing on core brands, and taking equity stakes in foreign bottlers so the company could exert more strategic control over them. This one-size-fits-all strategy was built around standardization and the realization of economies of scale by, for example, using the same advertising message worldwide.
2. what were the limitations of Goizueta's strategy that persuaded his successor, Daft, to shift away from it? What was Daft trying to achieve? Daft's strategy also did not produce the desired results. Why do you think this was the case?
The limitations of Goizueta's strategy was in the very 1990s is when Coke failing to hit the financial targets for the first time because the one-size-fits-all strategy was running out of steam, as smaller, more nimble local competitors marketing local beverages began to halt the Coke business development. So that, Daft shift away the strategy to be more localization. Daft was trying belief that Coke needed to put more power back in the hands of local country managers. He thought that strategy, product development, and