ORGANISATIONAL DESIGN
Before the nineties the Coca-Cola company was having a centralize system of control, but after sometime they realized that if they had to meet the demands of the customers they should adopt a decentralized system in which the authority of decision making is distributed between different managers so that every sector can be managed effectively. This system was implemented in the nineties by the company’s board of directors. Now the organization is having two groups who are responsible for operating:
Bottling Investments
Corporate
Operating groups are also divided by different regions i.e. Africa, Asia, Middle East, European Union, Latin America, North America etc. All the divisions are further divided into geographical
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The turnover has been reduced because the employees feel more engaged in the work. The organization’s growth rates increased and the return of equity for by Isdell proved to be good for the organization and the employees were also happy with the change which is reflected by the end results of the company..
ORGANISATIONAL STRUCTURE
Coca-Cola is “Tall” in terms of organizational complexity. Coca-Cola is controlled through a vertical hierarchy, with decision-making authority residing with the company’s upper management. Daily and routine decisions are made by the line managers at the middle level.
Coca-Cola has more than 700,000 system employees, including their bottling partners. The company’s operations reach over 200 countries worldwide, with six geographic operating segments. Coca-Cola’s head office is responsible for providing the company with an overall direction and support to the regional structure. The company’s Executive Committee makes key strategic decisions for the company. The Chair of the Executive Committee acts as a figurehead for the company and chairs the board meetings. He is also the CEO and is the senior decision
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When one of these divisions is planning to do something, an advertising campaign for example, the division has to communicate with their superiors to get approval. Since the company’s hierarchy is so tall, communication has to travel back to corporate headquarters in the U.S, where the Executive Committee has the final decision making power for activities the divisions have proposed. Below is an organizational chart of the company.
ORGANISATIONAL GOALS
Coca-Cola is both effective and efficient, as they have made it their objective to succeed in these areas. Coca-Cola is more focused on efficiency than effectiveness, but they still achieve in both. Regardless of what they specialize in, their organizational goal is to maximize profits for shareholders by selling Coca-Cola products worldwide to a wide range of customers. They are able to do this by having a very vertically hierarchical organization that allows them to take advantage of a low cost strategy, limiting expenses and increasing revenues.
LEADERSHIP
Adopting the right structure to match its strategy and environmental conditions is another reason for Coke’s effectiveness. It has a functional structure with an international division. The structure is designed for efficiency and control, and it delivers economies of scale/scope and low-cost production. Under Goizueta, Coke has a dominant market share and the “world’s greatest brand,” however, towards the end of his term, the company experiences a blinded stage due to a lack of effective scanning/control systems to alert management to symptoms of organizational atrophy.
Even though, Coca-Cola is the worldwide product among universal attraction customers. Also, the CCE conducts in the local environment across the globe. By each local or country can modify its own taste requirement. Likewise, the firm feels every can or bottle of Coca-Cola that has sold out. They feel enjoyed, because personal relationships are built with their customers. That could make only achieved at a local level. As a result, the CCE still continues to make the organization structure that will carry a global and local strategy. (Coca Cola company Case study).
In other words, they face the vendors, distributors, carriers, manufacturers that in one way or another deal with the product. The Division Chiefs could be segregated by the different regions of the world, so first they are divided in Continental United States (CONUS) and Out of the Continental United States (OCONUS). After this then comes the Branch Chiefs. These have specific territories to manage which is normally a function to the military bases and/or operations that are occurring.
The Coca-Cola Company is a one of the oldest and most historic business firms in the United States. The company’s iconic products are instantly recognizable all over the world. The firm has been in existence for more than a century, and the long standing success of Coca-Cola is largely due to the firm’s clear sense of direction that has been maintained throughout its history. Coca-Cola has a powerful mission of providing the best quality product to the customer at the lowest possible cost. The company has developed a far reaching strategic vision for the purpose of achieving these goals. The company has also been quite flexible with regards to the need to periodically alter its mission statement, vision, values and goals, and to expand the range of stakeholder interests that are being acknowledged. This flexibility has been a key element of Coca-Cola’s enduring success (Gourville & Fisher, 2013).
Coca-cola has strategically positioned itself within the world market for soft drinks, the brand itself has understood this principle " think global, act local ", they used the strategic positioning in order to have the same image all around the globe, which is a success because it is recognize today as part of some people daily life everywhere. This awareness of the brand by consumers leads to high standards and makes them purchase / buy automatically without seconds thoughts .
Coca –Cola is a company that takes responsibility for every one of its actions or their lack of action. In Coca –Cola Company, if an error occurs it is accepted that the error occurred and is solved immediately. Consumers are the priority of this company and always have been.
The Coca-Cola Corporation is a multinational company that specializes in production, retailing and marketing of non-alcoholic beverages. Coca-Cola is ranked number 1 as global provider of their non-alcoholic beverages. These beverages consists of, but are not limited too, Coca-Cola, Sprite, Fanta, Dasani, Simply orange, PowerAde, and Vitamin water. The Coca-Cola Company’s main competitors consist of PepsiCo, Dr Pepper Snapple Group, and Groupe Danone Water Division. The company’s main focus is soft drink industry, resulting in most of the company’s revenue.
Coke’s management is so isolated within their inward-looking, bureaucratic culture, and has so much faith in the product, that they fail to recognize that consumer demand is shifting away from cola. The culture blinds them to how heterogeneous the global market is becoming. Coke arrogantly assumes they can dictate foreign tastes through aggressive marketing and distribution. What they perceive as smart marketing, competitors, retail partners and government regulators consider aggressive, monopolistic
The European distribution is organized through a network of a number of Strategic Business Units (SBU) across the continent.
Coca Cola moved to Europe in the 1990s and have made a great impact. They are a Private Limited company and TCCC only own 40% of the business where as the other 60% is owned by the employees. At the CCE bottling, packaging, distribution, marketing and sales, finance and customer service takes place. Coca Cola’s mission statement is: ‘The Coca Cola Company exists to benefit and refresh everyone who is touched by our business.’
The operations of company reach more than 200 countries globally it has six geographic operating segments which are Eurasia & Africa Group, Europe Group, Latin America Group, North America Group and Pacific Group.
Coca-cola has a strong centralized function with the direct connection which is the best way for a company to ensure they have a successful corporate communication function (Coombs, 2014). Coca-Cola Company has a highly formalized and a centralized organizational structure with a clear hierarchy of command and a proper management process that has assisted to maintained control in marketing and expansion plan (Percy, 2015). The management of the company has been decentralized as well. There has been an increase in the horizontal communication in the organization. Horizontal communication is the communication between people, divisions, and departments within the same level of the organization. On the other had vertical communication is sharing of information between different levels of organizations hierarchy (Castells, 2013).
There are many factors, internal as well as external that impact the planning function of management within an organization, and Coca-Cola is no exception. More than a billion times every day, thirsty people around the world reach for Coca-Cola products for refreshment. Coca-Cola is the most popular and biggest-selling soft drink in history, as well as the best-known product in the world. The Coca-Cola franchise covers a population of approximately 398 million people. Coca-Cola Enterprises employs approximately 72,000 people who operate 463 facilities, 54,000 vehicles and approximately 2.4 million vending machines, beverage dispensers and coolers.
The Coca-Cola company is an American multinational beverage company headquartered in Atlanta, Georgia. The corporation is widely known for its leading Brand, Coca-Cola soft drink. However, in addition to the Coca-Cola flagship brand, the organization also has numerous other products and is recognized worldwide in various capacities including as a manufacturer, retailer, distributor, and marketer of nonalcoholic beverages (Gong, 2014). To accomplish its business operations, the organization heavily relies on an extensive supply chain to deliver its end products to the final consumer. the supply chain