Mgt 230 - Coca Cola - Corporate Strategy Analysis

MGT/230

October 2, 2015

Corporate Strategy Analysis

        By observing top executives of large corporations decide on the next step toward the future, our group have found one thing is made certain, that there is no particular way of doing it. Many of these executives have worked their way up the corporate ladder and have gained much needed insight as to what the corporation was, is, and want to be.  With this we found by keeping the mission statement in mind and using experience as a guide, these CEO’s were able find a strategy that supported their vision.

After watching the destination CEO video on Coca-Cola our group agreed that Neville Isdell, the Coca-Cola CEO is on the right track to turn his company around.  Part of Cokes mission statement is to “refresh the world”.  After coming back from a brief retirement Neville knew that in order for something to be “refreshed” it had to be new or different.  Neville began to acquire other beverage companies like Minute Maid and Odwalla.  He knew like his competitor PepsiCo that all “refresh-ness” might not come in the form of beverages.  Coke expanded and began to diversify into non beverage products such as yogurts and purchased Dannon, a Greek yogurt manufacturer.  We thought purchases like these would definitely keep Coke competitive knowing that even though the Coke brand is known for its beverages, they have the ability to diversify and enter into new markets besides beverages.  

Also after watching and discussing the destination CEO video on Xerox we talked about how a company like Xerox has to diversify in order to stay competitive in the market. CEO Anne Mulcahy came into the position and knew she had to make some changes.  Saving over 1 billion dollars in her first year, she slashed programs and projects that she herself started.  Through the

purchase of Global Imaging Systems for a hefty price of 1.5 billion dollars companies like Xerox corner the market and keep competitors to a minimum.  Along with keeping competition to a minimum, acquiring companies like Global Imaging helps in aspects of Vertical Integration.  Xerox now has the ability to use Global Imaging’s manufacturing plants and experienced personnel to help expand its reach and become more competitive in the world of document management.  

In the video of “Destination CEO Southwest Airlines”, our group agreed that Gary Kelly’s steps in being a successful and efficient CEO includes being personal and appreciative. In the video, we noticed that Gary Kelly greeted all Southwest Airlines employees. Although he did not know each of their names, he tried to get to know them with the time that he had, whether it was on airport grounds or in the air. Gary Kelly seems to have a concentration and drive for his company. Although he is not a flight attendant, he still greets passengers when he catches a domestic flight. In return of Gary Kelly’s positivity and confidence, employees have confidence in the company and for the CEO. As a group, we agreed that understanding your own company and having appreciation for the organization is the main strategy for success. With a well-rounded CEO, Southwest Airlines is the most safe cruising airline and most profitable airline in the country.