Free Essay on Strategies of Multinational Companies

Published: 2019-05-15
Free Essay on Strategies of Multinational Companies
Type of paper:  Essay
Categories:  International relations Coca-Cola Strategic marketing
Pages: 4
Wordcount: 896 words
8 min read

Coca-Cola Company

Coca-Cola, being an Multinational Corporation (MNC), has established its subsidiaries over all the continents, which as the website points out includes North and South America, Europe, Asia, and Africa. For this reason, I believe that it uses an international business strategy because the firm is run privately rather than by government, with the sole goal of maximizing the corporates profitability. The website provides an overview of the brands it has globally. Ideally, the company, as the website reports, has over 3500 brands on an international scale, such as Fanta, diet coke, Dasani, fuse tea, honest tea, and PowerAde zero among other products. Therefore, the company has diversified the products so as to meet the needs and preferences of a global customers, as well as to capture more customers. Also, to capture more investors, the website presents useful information about the global financial status of the enterprise, for example, annual financial information.

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There are also reports that detail the company operations on a global scale, as well achievements. Also, in line with globalization trends, the website has also annual sustainability report, and therefore, people can have an outlook of Corporate Social Responsibility (CSR) endeavors in the international scene. Following this findings, it is worth concluding that Coca-Cola Company has adopted a think-global, act-global approach. I agree with the websites information. I have benefited in that I have realized that to capture more customers, and thus profits, it requires a MNS to manufacture a wide variety of products, as Coca-Cola does.

Pepsi Co Company

PepsiCos headquarters are based in Purchase, New York, but it has expanded globally. After reviewing Coca-Cola, I considered PepsiCo, its major competitor in the international beverage industry. Also, PepsiCo is a MNC. PepsiCos website has a lot of similarities to Coca-Colas. However, the only difference is that PepsiCo has diversified into the food industry. The website reports that PepsiCo was as result of a merger between Frito-Lay and Pepsi-Cola Company. Also, just as Coca-Cola, PepsiCos website has a lot of investing information, such as financial year reports. Also, the website reports that the company operates on a global scene, in all the continents. It has 22 global brands, including Pepsi, Tropicana, 7-up, Doritos, and among other brands. Also, the website covers marketing strategies. For instance, the newsroom section provides earnings made in 2015, various press releases, as well as marketing activities that the company has adopted. In order to enable comprehension of the website on a global scale, it can be translated into various languages, such as Arabic and Chinese.

To surmise, from my understanding, as one can deduce from the website, PepsiCo utilizes a global strategy, which as Thompson et al. (2014) point out, takes a globally integrated and standardized approach to production, packaging, making sales, as well as delivering the products internationally. Also, I agree with information presented in the website. I have benefited to know that even though two companies can be in competition, PepsiCo and Coca-Cola in this case, adopting a product diversification approach, as PepsiCo did in manufacturing food products along with beverages, can be advantageous in curbing competition from other global competitors.

General Electric

After I reviewed GEs website, I made a conclusion that this is a transnational company (TNC). According to Its website, GE operates in many global regions, such as Africa, India, Japan, Middle East, USA, China, Brazil, and Australia. Taking a look at the shareholder information, it has more foreign assets compared to its domestic American market. From reviewing the website, I also deduced that GE capitalizes on a transnational strategy. According to Thompson et al. (2014), a transnational strategy can also be referred to as globalization, and it encompasses aspects of both a localized and globalized approach to strategy formulation and implementation. Ideally, due to individual energy needs for the regions it operates, GE has to harmonize the global strategies to the local ones in order to come up with a strategy mix that can actually work in different localities, which is advantageous. Consequently, GE is in a position to maximize its profits. For this reason, the foreign assets have ameliorated over time to surpass those of America, its native nation.

Also, as the website reveals, the business has adopted training models that can mimic local cultures and characteristics. Also, GE has diversified into a broad range of products in order to capture the global market, for example, it fabricates refrigerators, ovens, washers, dryers, and aviation products among other products. As such, it can be surmised that GE leverages on think-global, act-global approach. I agree with the information presented in the website, and therefore, I have benefited to know how TNCs employ transnational strategy in operating on a global scale.


For an international company or an MNC to succeed, it has to adopt a number of strategies I order to operate in the global market. Also, in establishing a business in a foreign country, a firm should consider the local business environment. Ideally, its global strategy should be intertwined with the local one so as to compete effectively.


Coca-Cola Company, (2015). Corporate Website. Retrieved

General Electric (GE), (2015). World in Motion. Retrieved

PepsiCo Company, (2015). Corporate Website. Retrieved

Thompson, A., Strickland, A., & Gamble, J. (2014). Crafting and Executing Strategy; the Quest for Competitive Advantage: Concepts and Cases (19 Ed.). New York, NY: McGraw-Hill Irwin

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