Foudation of management

Group 3:

Vu Phuong Diep

Nguyen Cu Hoang Ngoc

Nguyen Huy Long

Overview

• Summarize case study Coca – Cola (p.150)

• Answer the question for case study In what stage of globalization would you classify Coca

– Cola? Why?What elements of Coca- Cola’s strategy have help it

to overtake Pepsi throughout Eastern Europe?Discuss the interaction between Coca- Cola and the

economic and political environment in Eastern Europe?

• Strategy comparison between Coca- Cola with URC Vietnam.

Summarization- Australian Doug Daft headed globally Coca-

cola- The Romania adventure began in 1990 when

Ion Stamanichi , the head of Romania’s soft drink invited Coke to enter into a join venture while Pepsi was being strong leader soft drink company at that time.

- Coke severed most of its relations with own manufacturing, distribution and marketing techniques and it invested US $150 million Romania.

- Coke have changed the Romanian’s view about soft drink because one of the most importance which success of Coke was Coke ‘s company trucks making deliveries once or twice week to retailers and kiosk owners.

- Coke has made sure Pepsi will have to run twice as hard to catch up.

Exporting

Licensing

Franchising

Joint venture

Acquisition

Greenfieldventure

Cost to enter foreign operationsLOW

HIGH

HIGH

In what stage of globalization would you classify Coca – Cola?

Why?

2 or more parties Undertake the economic activity together Share in the rev, exp

- In 1990, the Romania’s largest bottler of soft drink invited Coke to enter into a join venture

From drinking no COKE to 10 liters/year

- Coke invested US$1.5 billion in Eastern Europe

- Importing its own manufacturing, distribution and marketing techniques .

In what stage of globalization would you classify Coca – Cola?

Why?

What elements of Coca- Cola’s strategy have help it to overtake Pepsi throughout Eastern

Europe?

- Coke invested US $150 million in Romania

- Importing its own manufacturing, distribution and marketing techniques

- Investment in new bottle ‘s styles

- Using a company trucks deliveries one or twice a week

- Large international workforce

Discuss the interaction between Coca- Cola and the economic and political environment in

Eastern Europe?

Interaction in economic environment: - Increase direct job- Labor force- PPP (purchasing power parity)- GDP

Interaction in political environment:- Open economic to the market ‘s world

- Open budget for foreign company invest in

• Urc( Universial Robina corporation) is a soft drink company in Vietnam and C2 tea drink is one of their new product

• It is invested US$14.5 million and it has been brilliant success in Philippines

Advantages • Using new techniques machine in

production• Not only be a normal soft drink, but also be

very healthy• The favor is different from the others

Disadvantages

• Not yet attempted at marketing and PR(public relationship) strategy in customer

• Slogan is not effective and attractive • Not understand well the customer demand

in the oversea market

Reference

• Case study: Coca Cola, Fundamentals Of Management, Danny Samsam&Richard Daft, p.150

Group 3: Group 3:

Vu Phuong DiepVu Phuong Diep

Nguyen Cu Hoang NgocNguyen Cu Hoang Ngoc

Nguyen Huy LongNguyen Huy Long

Thank youThank you