strategic leadership at coca cola
DESCRIPTION
PPTTRANSCRIPT
Strategic Leadership at
Case Analysis under the guidance of Professor Shailendra Singh
Presented by Group 11:Harsha SudLisa Revol
Monica BangaSuhani Kejriwal
Tushita SuriYatin Bhardwaj
Effective Strategic Leadership
Determines Strategic Direction
Developing a long-term vision of the firm’s Strategic Intent
Exploits & Maintains Core Competencies
Leaders must ensure that the firm’s core competencies are emphasized in strategic implementation efforts
Develops Human Capital
No strategy can be effective unless the firm is able to develop & retain good staff to carry it out
Sustains an Effective Organizational Culture
Leaders play a critical role in shaping and reinforcing the firm’s culture
Determines Strategic Direction
Exploits & Maintains Core Competencies
Develops Human Capital
Sustains an Effective Organizational Culture
Effective Strategic Leadership
Determines Strategic Direction
Encourage & enable people at all organization levels to act ethically when doing what is necessary to implement the firms strategies.
Exploits & Maintains Core Competencies
To create controls which are balanced between financial and strategic measurements.
Emphasizing Ethical Practices
Establishing Balanced Organizational controls
Case BackgroundMuhtar Kent promoted to the CEO position in Coca-Cola
Reflecting upon the past leadership of the company
Coca-Cola’s success during Robert Goizueta’s leadership
CEOs that had followed Goizueta were not able to have as positive an impact on the stock value
Leadership
Robert Goizueta
Douglas Daft
Neville Isdell
Muhtar Kent
Douglas Ivester
Goizueta Is It !Educational Background Chemical Engineer, Yale University
Career Timeline First job• Entry level chemist at Coca Cola
Till 1959• Chief technical director of 5 Cuban bottling plants
At 35• Vice President, Technical R&D
1975• Head, Legal & external Affairs Department
1979• Vice Chairman
1981• Chairman and CEO
Leadership StyleMore Intellectual and less hands-on
Motivated management teams through economic profit targets
Established a sense of direction so people knew where they are going and have enough freedom
Gave immense importance to long-term relationship building
Display of energy, integrity and courage to take risk
Business StrategyRisk Taking
Divested non-core businesses such as farming, plastics, orange groves, desalting plants, steam generators
Focus on economic profits
Subjected each business to the financial formula of return on capital being greater than cost of capital that later became a tool for increasing shareholder’s wealth
Investments
Borrowed billions to buy independent bottlers in order to upgrade distribution systems
Failed attempts
Launch of New Coke in 1985 Purchase of Columbia Pictures
(non-core business)
Company performance under
his leadership Coca Cola expanded domestically and internationally
It became America’s most admired company after being turned around financially, organizationally and culturally
Stock price increased 5829% Market Value grew 34 times
Always Douglas IvesterEducational
Background
Career Timeline
Leadership Style
Business Strategy
Company performance under
his leadership
Douglas Daft: EnjoyEducational Background
Career Timeline
Leadership Style
Business Strategy
Company performance under
his leadership
The Isdell Side of LifeEducational
Background
Career Timeline
Leadership Style
Business Strategy
Company performance under
his leadership
Muhtar Kent?