Diversification for Coke Essay Example | Topics and Well Written Essays - 500 words

Diversification for Coke - Essay Example It also will help Coke to mitigate the risk of the overall business to a large extent as the diversification will help Coke to fall back on another business activity if their core business fails to reach up to the desired level. However, the disadvantages of diversification for Coke can be that it can slow up the progress in the core business segment, can also result in an increase of management related cost towards maintaining the newly diversified segment and can also increase intricacy in the bureaucratic level of the organization. Â  From the year 1990-1997, under the efficient leadership of Roberto C. Goizueta, Coke was able to achieve impressive growth record due to the way the entire process of brand-building was handled by the management. Coke’s business model was based on a successful formula of preparing carbonated soft drinks that appealed to the consumers throughout the world. However, since the passing away of its charismatic CEO in 1997, Coke has stumbled in its endeavor to rise up to the ensuing challenges of the ever-changing business scenario. The constant alterations in the tastes and preferences of the consumers especially towards noncarbonated soft drinks have been one of the banes in the way of progress for Coke. Coke has also faced increasing challenges due to their rigidity towards sticking to age-old beliefs and structures. The company has also lacked a clear vision towards making progress and sustaining progress.