Corporate Cultures and Global Brands

Strategic moves made in Asia by The Coca-Cola Company have been driven by two key elements of its global strategy. These include implementing a worldwide anchor bottler system and secondly, developing under-served markets wherever they are found around the world. One of the main driving forces of Coca-Cola's global strategy has been to re-align and strengthen its worldwide bottling system. The goal is to generate extensively increases in unit case volume, net revenues and profits at the bottler level and thereby generating increased shipments of Coca-Cola concentrate.
Traditionally, Coca-Cola often starts the process of strengthening its bottling system in a given region or country by buying out local bottlers and subsequently enhancing their production, distribution and marketing capabilities. Coca-Cola would then sell off the local bottler to one of its anchor bottlers , which becomes solely responsible to the Coca-Cola Company for the management of the bottling and distribution operation.
Anchor bottlers are essentially large and well-capitalized firms that share Coca-Cola's commitment to growth and have demonstrated to Coca-Cola that they have a strong management team and the capability to manage bottling operations in more than one country. The strategic alliance between Coca-Cola and the anchor bottler is structured to provide benefits for both partners. Coca-Cola provides the capital for financing the growth of the anchor bottler by taking equity in the firm. In return, Coca-Cola obtains membership on the board and the opportunity to participate in the strategic directions undertaken by the anchor bottler (Robert, 1998 and...