Corporate Analysis

Corporate Strategy Analysis

After viewing the Destination CEO videos regarding Coco-Cola, Southwest Airlines, VF Corporation, and Xerox, the team and I discussed the corporate strategy used by each company. The four basic alternatives when using corporate strategy in the planning function of management are concentration, vertical integration, and diversification. “All corporate strategy identifies the set of businesses, markets, or industries in which the organization competes and the distribution of resources among those businesses.” (Batemen, T.S & Scott, 2011).

Coca-Cola CEO Neville Isdell retired from Coca-Cola in 2001 after serving 35 years with the company. After leaving Coca-Cola, sales began to drop, high-turn-over rate became the norm, and low morale threaten the company’s future. The board of directors decided to vote on Mr. Isdell’s return as CEO hoping to reverse the company’s sluggish performance. Mr. Isdell recognized the need for a new strategy and change, after seeing other competitors like Pepsi diversification into the fast food and snacks industry. In addition, Pepsi expanded into new business with Gatorade and Frito-lay. As a team, we agreed that by using vertical integration strategy, Coca-Cola bought the product vitamin water, in order to dive into the non-carbonated beverage sector market and expand a selection within the industry. New flavored products such as coffee Blak coke and Envigo, a carbonated green tea were added to increase profitability and change in the global market. Coca Cola is trying to control the global market through aggressive strategy and branding campaigns, with its carbonated and non-carbonated beverages.

As for Southwest, while other Airlines struggle to maintain profits due to increasing price of oil and gas, Southwest Airlines CEO Gary Kelly has managed to keep the company afloat as one of the most profitable airlines in the country. Although he didn’t want to be a CEO, due to the stress, pressure...