Organizational Analysis – The Coca-Cola Company
1 Introduction 3
1.1 Background Information on the Beverage Production Industry 3
2 Company Profile 4
3 History of the Company 5
3.1 Mission, Vision, Core Values 7
4 Company Products and Services 7
5 Company Structure 7
5.1 Span of Control 8
6 Company SWOT Analysis 9
7 Coca-Cola Change Management 10
8 Conclusion 12
Organizational Analysis – The Coca-Cola Company
Organizational analysis entails carrying out evaluation on the processes of a company as well as those employed to run such processes. This covers issues linked to structures, formalities and processes which are the major elements that drive change in the modern world (Carroll, 2006). This implies that organizations are compelled to strive to meet different requirements within their spheres of operation to bring about relevant changes in the society. The process of evaluating how competent organizations are involves carrying out assessments on the strategies employed by the organizations including those that deal with finances and human resources as observed by Idowu (2009). Organizational experts also advise companies to be visionary and see ahead as this can enable them to explore changes that shape up their future environments (Prince, 2007). Let us now delve into details on Organizational Analysis of The Coca-Cola Company.
Background Information on the Beverage Production Industry
Worldwide market powers are important drivers in the consistent development and the sustenance of the refreshment industry. Aspects such as unions, changes of tastes and inclinations of the buyers as well as expanding government regulations are considerably affecting assembling and business methodology. In this wildly intense commercial center, enterprises have no choice but to offer a more amazing mixed bag of products and services so as to take care of the demands of customers. Meanwhile, one should also consistently and cost-effectively produce high caliber items. To be auspicious, companies have to bear in mind the three keys in today’s worldwide commercial center, where development by means of obtaining is more apparent and unhidden, and in order to maintain a positive fiscal execution one must have the ability to comprehend and react to shopper requests and demands as well as intense forces while reducing the cost of creation.
Manufacturers need to positively impact both the social order and the earth. Likewise, they need to transform needs, demands and challenges into business focal points. The main driver of a sustainable system is driven by the conviction that corporate venture in natural and social avocation should reinforce business execution to be auspicious. It needs to reduce the ecological effect, realize certified economy in the use of assets, realize a quantifiable profit, and upgrade the overall value of the organization. Through automation, three major manageability goals can be diminished to energy conservation and effectiveness, environmental authority and administration of assets, in addition to safety for specialists, hardware, forms and services.
The Coca-Cola Company is the world’s biggest refreshment organization that operates in more than 200 nations with a market portfolio of more than 3000 drinks items that include sparkling beverages and refreshments like water, squeezes, juice drink, teas, espressos, drinks and caffeinated beverages. Headquartered in Atlanta, Georgia, it has more than 92,400 co-partners over the six working groups in Eurasia, Africa, Europe, Latin America, North America and Pacific region (Polaris Institute, 2005). The company production process mainly focuses on manufacturing refreshment bases and syrups that make the organization’s mark exceptional, and providing packaging operations. Coca-Cola has both the license and the brands to operate legally. In a bid to unify its client base, the Coca-Cola Company has invested heavily on advertising activities which incorporate both print and TV promotions, online programs retail store shows, sponsorship, challenges and bundle plans.
The company’s focus on beverage production and advertising empowers it to understand and meet the different and ever changing refreshment needs of its consumers all over the world. A worldwide business works on a nearby scale in every region because of the quality of the Coca-Cola framework, which encompasses the company itself as well as its more than 300 packaging partners across the globe. While majority of the people simply perceive the company as Coca-Cola, its framework operates through various nearby channels. The company not only produces beverages, but also drinks bases and syrups to packaging operations, to which it claims the marks and is thus responsible for purchaser mark advertising activities.
The packaging partners usually make, bundle, stock and distribute the last marked refreshments to clients and vending partners, who then sell the products to customers. All packaging partners work with clients – supermarkets, restaurants, road outlets, comfort archives, film theaters among many others – to implement the limited techniques that have been advanced in the company. This effective system has ensured that the company suppliers sell products to consumers at a rate of about 1.6 billion servings on a single day (Coca Cola Company website).
History of the Company
According to Polaris Institute (2005) the Coca Cola’s history dates back to 1886 in the New York Harbor where a number of workers were assigned the task of developing the Statue of Liberty. Eight hundred miles away, an alternate incredible American image was going to be developed and spread across the world. Bell (2004) notes that just like many other people who transform history, John Pemberton, an Atlanta drug specialist, was driven by basic interest to positively transform the lives of people. One evening, he mixed up a fragrant, caramel-hued fluid and, when it was carried out, he sent it a couple of entryways down to Jacobs’ Pharmacy where it was combined together with carbonated water and inspected by clients who all concurred that it would be the new beverage (Polaris Institute, 2005).
It was Pemberton’s clerk, Frank Robinson, who named the beverage Coca-Cola. During the first year Pemberton was only selling 9 glasses of Coca-Cola per day. Nonetheless, this changed dramatically and by the end of a century, the Coca-Cola Company had made great strides and was selling up to 10 billion gallons of syrup. Unfortunately, Pemberton passed on in 1888 before witnessing the business grow and develop as the refreshment he had initiated gained massive popularity. Candler became the company’s first president, and he was a pioneer who brought true vision to the business and the brand (Marena website, 2013). Packaging operations were soon started in Hawaii the following year, then spread to the Philippines, France, Belgium, Bermuda, Colombia, the Honduras, Italy, Mexico, Haiti, and Burma in later years.
By 1940, the renowned worldwide soda was being packaged in forty countries across the globe (Coca-Cola website). Marketing and promotions in the Coca-Cola Company have infused various item trademarks including “The Pause That Refreshes” which was used in 1929 and the “Have a Coke and a Smile,” that was the slogan the company used in 1979 advertising campaigns and “Always Coca Cola,” which became the company’s slogan in 1993 when its sales of soda beverages surpassed the ten billion mark across the world. The world is evolving and in order for Coca-Cola as a company to keep succeeding in the beverage industry, there is need for the managers to adopt more strategic and visionary techniques in terms of looking ahead and making projections of the likely trends in business. The company needs to prepare for tomorrow today.
Mission, Vision, Core Values
The road map of any company starts with its mission because this spells out the blue print of the company’s purpose and strategic plan. In addition to refreshing the world, the mission of the company is to give inspiration to moments of happiness and optimism that make a difference by creating value. The vision on the other hand, offers guidance and direction to the entire business process and has continued to influence the success of the Coca-Cola company over the years because it seeks to empower and inspire people so that they can be great in all the aspects of their lives and be the best they can be.
In connection to its portfolio, Coca Cola’s vision is to give the world beverages that are of high quality with the aim of satisfying their personal needs and desires (Coca-Cola, 2013). It envisions a cooperative working partnership between its customers and the suppliers of its product ingredient. The company also endeavors to make communities sustainable and sufficient and desires to see to it that all shareholders benefit from the profit maximization through the company’s sales and activities. Coca Cola is also working towards having a lean and effective organization (The Coca Cola Company website).
Company Products and Services
The key foundation of the strong brand name that the company has made for itself is based on its diverse product portfolio. It offers a wide variety of world-class services and products that are sold to consumers across the globe that have become loyal to the brands offered by the company (Zurkuhlen, Meeker, & Salomon Brothers, 1987). The company is currently producing a balanced portfolio that is offered through the range of beverage flavors that are distributed to consumers who prefer non-alcoholic drinks. The products have been packaged in affordable sizes and this has played an integral role in sales and marketing and contributed to the increase in revenues generated as the needs of the consumers are met across the divide.
Some of the popular products include Coca-Cola, Diet Coke, Fanta, Sprite, Maaza, Minute Maid, Limca, Kinley Mineral Water and Thumps Up (Hellenic Bottling Company, 2013). The packaging containers are designed to appeal to consumers with the aim of developing a mutual value. Coca Cola also currently focuses on going green by recycling the bottles and cans that are used to supply their beverages.
The company has always had a more centralized structure but recently, there has been a development towards decentralizing this for simpler administration in districts. One of the key areas of focus for the company is incorporation of the concept of responsiveness. The main challenge that the company faces often concerns how to maintain the components used to coordinate the organizational structure (The Coca-Cola Company Website).
Span of Control
The span of control in any organization describes how managers and the number of subordinate staff members who report to them directly relate with each other. Dransfield (2001) contends that a very wide span of control is likely to bring about challenges for an organization, because managers would have a hard time supervising junior employees. Coca-Cola currently has employed more than 93,000 employees who are all under the control of the different levels of corporate management. For instance, there is a top managerial staff, that operate the assembly authority and execute functions administration (Carroll, 2006).
The CEO is also a part of the Senior Leadership Team and even though there are just six individuals that answer directly to the CEO, he or she has the ability to obtain information from different members of the leadership levels. According to organizational experts, the move to decentralize the administration of Coca Cola has brought about structural changes for the company (Ford, Stephens, & Cooper, 2007). Generally, because the Coca-Cola Company enjoys a strong relationship with its suppliers and distributors, it has a stronger bargaining power, and given its strong brand, it is capable of maintaining its competitive edge in the market in line with the changing needs of the consumers. Both the CEO and CFO have six people who can represent them.
Company SWOT Analysis
|Strengths(Research Markets, 2013)
|Weaknesses(Strategic Management Insight, 2013)
|Threats(Strategic Management Insight, 2013)
Coca-Cola Change Management
Coca-Cola like other companies aims at expanding it business portfolio and adapting to the modern trends of change in the global beverage industry. This indicates that its major concerns are centered on the critical aspects such as the mission of the company, its corporate logic on such matters as development, quality, improvement and qualities concerning workers and clients, focused positioning and key objectives for accomplishing and implementing aggressive focal point and for item market advancement. These objectives are underpinned by its approaches with regard to advertising, deals, assembling, item and process advancement and human capital administration (Coca-Cola, 2013).
Most often, the key aspects of change in organizations are connected to the economic and financial status of the global market, the existing resources and assets, the business environment, organizational structure as well as frameworks. According to the Research Markets (2013), its fruitful utilization requires careful examination and understanding of these pertinent variables in the planning and arranging stages. The Coca-Cola Company is, like other many organizations, susceptible to change because of the competition it faces from its rivals including Pepsi. In addition, some ecological issues that have been raised have compelled the organization to alter their direction of manufacturing and transforming methods to conserving the environment as argued by Watters (1978).
Operational alterations are characterized by systems and frameworks of innovation that directly affect the activities of an organization. At the same time, its impact on individuals or employees might be massive hence the need to pay more attention and focus on such issues (Research Markets, 2013). Partnering organizations change the frameworks, system and technology in order to fulfill the requirements and demands of the consumers or clients. Transformational change happens when there are basic and far-reaching changes in the structures, procedures and conducts that heavily impact on the routes in which the company capabilities are not just developed but also strengthened (Manchester University. (2010).
This is often the case in circumstances where there are alterations in the national regulations that eventually impact on the company’s operations and structure (The Saylor Foundation, 2009). Different companies normally take the incremental strategy approach as a part of their decision-making process. The recent years have seen the Coca Cola’s management anticipate massive changes in the near future owing to the advanced technology in the business industry. Nevertheless, the company has in the recently adapted the unstructured decision-making model to cope with the changes.
The Coca-Cola Company has over the years remained a leading brand in the world because of its services, proper leadership and commitment of all the stakeholders involved in its operations. It conducts an annual review of its operations to make sure that it adjusts to the dynamic and evolving needs of the beverage consumers. The experiences of the company in terms of business are pertinent in the process of designing future plans. The rising concerns regarding health issues across the globe with dangerous health conditions like obesity and cardiovascular conditions will probably affect the nature and ingredients of the company products in the near future. It is therefore recommended that effective strategies need to be put in place in advance, so as to facilitate strong campaigns on the beverages produced and publicly communicate the measures undertaken by the company as an indication of its concern towards consumer’s health. Coca-Cola also ought to consider expanding its product line by including other snacks’ production alongside beverages to boost the product portfolio. This move will also help the company to spread the risks across the market due to uncertainties in business like consumer preferences, increased circulation of product information among consumers, changing demand for non-alcoholic drinks as well as government rules and regulations and technological changes.
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