Get Full Essay Get access to this section to get all help you need with your essay and educational issues. Get Access Roberto Goizueta Essay Sample 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? Global standardization strategy focuses on increasing profitability and profit growth by reaping the cost reduction that come from economies of scale, learning effects, and location economies Hill, Goizueta believed that the main difference between the United States and international market was the lower level of penetration in the latter, where consumption per capita was only 10 to 15 percent of US consumption.
Thus, he made Coke become a global company, centralizing a great deal of management and marketing activities at the corporate headquarters in Atlanta, he focused on core brands and took equity stakes.
Moreover, it eliminated duplication of functions that were conducted in each country and placed strategic control to the headquarters. The benefits of global standardization strategy include cost reduction due to economies of scale and learning benefits.
It also reduces duplication of functions which lowers expense.
What was Daft trying to achieve? Why do you think this was the case? The strategy did not address the various cultural differences with the international market. It was a one-size-fit all approach which as time went by became less successful.
Daft wanted to put more power into the hands of local mangers. Thus, he fired 6, employees from the Atlanta headquarters.
Daft had competition from the domestic market with our products that addressed and matched the preference of the customers. Customization increased the cost for production which affected profitability.
How would you characterize the strategy Coke is now pursuing? What is the enterprise trying to do? How is this different from the strategies of both Goizueta and Daft?
What are the benefits? What are the potential costs and risk?
Coke is pursuing the transnational strategy which attempts to lower costs through economies of scale, location economies, and learning effects. The transnational strategy differs from both localization and standardization in that it varies from market to market to match local conditions.
The transnational strategy is a combination of both global and localization strategy. It offers the centralization benefits provided by a global strategy along with the local responsiveness characteristic of domestic strategies.
Culture plays a major role in the international market. When a firm adapts its strategy to meet the local conditions and customizes the product offerings to local demands, it increases the value of the product.
Reference Hill, Charles W. Competing in the global marketplace 8thEd.Goizueta’s global strategy was adopted by his successor, Douglas Ivester, but by the late s the drive to- ward a one-size-fits-all strategy was running out of steam, as smaller more nimble local competitors marketing lo- cal beverages began to halt the Coke growth.
Roberto Goizueta, a Cuba immigrant who became the CEO of Coke in , switched from a strategy that emphasized localization (which focuses on increasing profitability by customizing the firm’s goods so that they provide a good match to tastes and preferences in different.
Coca Cola Case Study. Case Discussion Questions Question 1 Why do you think that Roberto Goizueta switched from a strategy that emphasized localization towards one5/5(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.
Cola- The Strategy and Structure of International Business Coca Cola, the iconic American soda maker, has long been one of the most international of.
Why do you think that Roberto Goizueta switched. admin | April 12, Until the s, Coca-Cola’s strategy was one of considerable localization. Local operations 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.
Q1: timberdesignmag.com 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? Not much penetration in the international market.