What are the pros and cons of changing Cokes single European

What are the pros and cons of changing Coke’s single European structure into ten different regional groups?

This question and answer is found in the textbook

Gillespie, K. and Hennessey, H. (2016). Global Marketing (4th ed.). Taylor & Francis

on page 531. Thanks for the help.

Solution

The main responsibility of any manager is to make the organization ready for accomplishing the success with the help of formulation of strategic goals in order to gain some kind of competitive advantage over the competitors.

The main pros of altering the European structure into ten different structure from wanting facilitates the formulation of localized strategies which can help in developing some competitive brands meeting the local needs and requirements for a certain area. In place of allowing the headquarter situated in Atlanta to operate the other units, it will be more beneficial to facilitate the different regions to promote and market those products which are in demand and appeal the local customers.

However, the main cons of this strategy can be seen as losing the core metrics of the global brand. For example, if Coca-Cola allows its local unit in India to produce a product attracting Indian customers, then there are greater chances that coke brand may lose its overall global core marketing strategy and there will be a development of the product which does not reflect the global brand.