Strategic Management and International Distribution Strategy

Analyzing a business organization's operating environment

On successful completion of this module students will be able to:

· Analyse the strategic operating environment for a specific business organisation.

· Assess an organisation’s long term planning decisions in relation to its competitive advantage.

· Determine the strategic choice decision of an organisation in the light of their competitive advantage.

· Review the implementation and success of an organisation’s strategic management processes

Strategic management is concerned with the actions organisations take to deal with the challenges, opportunities and threats in their external and internal environments. The module starts by examining how organisations analyse their strategic environment in the light of their resources and capabilities. This leads to a review of how they determine their desired objectives, consider the circumstances and events that may affect outcomes, decide upon the actions they need to take  achieve their objectives, implement a strategy and evaluate progress.

Exceptionally broad factual and conceptual understanding of how changes in the environment can affect business decisions and the behaviour of firms

Exceptional discussions on the implementation and success of an organisation’s strategic management processes

Exceptionally well structured and well-presented arguments

Correct use of English language

Referencing in correct Harvard Style

A good factual and conceptual understanding of how changes in the environment can affect business decisions and the behaviour of firms

A good discussion on the implementation and success of an organisation’s strategic management processes

Clear and logical structure showing the progression of ideas and argument

Good use of the English language with minor errors

Referencing in correct Harvard Style with minor errors

International Distribution Strategy

“Distribution is the course, physical path or legal title that goods take between production and consumption. In international marketing, a company must decide on the method of distribution among countries as well as the method within the country where the final sale occurs” (Daniels, 2009).

Choosing Distributors and Channels

Choosing distributors and channels is the first step of distribution in foreign countries. When a companyenters a new country, it is usually economical for a company  For example, Coca-Cola in Belarus has always been and remains a local Belarusian enterprise, where

Belarusian people are employed. Because Belarus is currently not a large market, it may be a better idea to rely on the local distributors for transportation. Eventually, if the market grows, Coca-Cola may want to consider handling distribution in-house to gain more control (Daniels, 2009). Two of the largest Coca-Cola markets around the world are the U.S. and China. In the U.S. the company has established a mature business model which includes distribution. Coca-Cola outsourced its  production and distribution to its bottling and distribution companies. This process requires marketers to distribute syrup from the Coca-Cola plants to the bottling plants. From there, it distributes bottled and canned beverages from the bottling plants to the distribution centres and from the distribution centres to the final retail outlets.

International Diversification Strategy

“With a portfolio of more than 3,300 beverages, from diet and regular sparkling beverages to still beverages such as 100 per cent fruit juices and fruit drinks, waters, sports and energy drinks, teas and coffees, and milk-and soy-based beverages, our variety spans the globe” (List, 2010).

Product diversification strategy entails any modification of a current product that serves to expand its potential. Product diversification is different from product development such that it involves creating a new customer base, which expands the market potential of the original product. This is almost always done through brand extensions or the implementation of new brands, but in some cases, product modification may create a new market by creating new uses for the product.