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A Case Study IN THE Coca Cola Company Business Essay


Thi paper contains a comprehensive research on the Coca-Cola Company and addresses several Organizational Behavior and Human Resources issues. Advice are proposed predicated on the problems that were discovered through the analysis. The goals of the recommendations are to address uncertainty with all the Coca cola Companies suppliers and marketers, and also align company decision-making with the framework of the business.




Abstract iii

Contents iv

List of Abbreviations v

Definition of conditions: vi

List of Desks and Characters: vii

Appendices: viii



1. 0. Organizational Background 1

Mission, Vision HYPERLINK "#__RefHeading__107929_754499052"&HYPERLINK "#__RefHeading__107929_754499052" Prices 1

Why is our role Important 4

Organization structure 4

Organisation culture 5

Appendices a



List of Abbreviations

Definition of terms:

List of Furniture and Numbers:




Organizational Background

This was called Atlanta Begining (1886-1892). It had been 1886, and in New York Harbor, personnel were building the Statue of Liberty. Eight hundred miles away, another great American symbol was going to be unveiled.

Like many people who change history, John Pemberton, an Atlanta pharmacist, was motivated by simple attention. One evening, he stirred up a fragrant, caramel-colored water and, when it was done, he transported it a few entrance doors down to Jacobs' Pharmacy. Here, the combination was combined with carbonated normal water and sampled by customers who all decided -- this new drink was something special. So Jacobs' Pharmacy put it on deal for five cents a glass.

Pemberton's bookkeeper, Frank Robinson, named the combination Coca-Cola, and published it out in his unique script. Even today, Coca-Cola is written the same manner. In the first 12 months, Pemberton sold just 9 cups of Coca-Cola per day.

A century later, The Coca-Cola Company has produced more than 10 billion gallons of syrup. However for Pemberton, he perished in 1888 without realizing the success of the beverage he had created.

Over the course of 3 years, 1888-1891, Atlanta businessman Asa Griggs Candler guaranteed rights to the business for a total around $2, 300. Candler would become the Company's first president, and the first ever to bring real eyesight to the business enterprise and the brand. (The Coca cola company website)

Its popularity would not stay within the United States for long, though, because in the entire year of 1906, Coca Cola was bottled in Cuba and in Panama. Bottling businesses were soon started in Hawaii another year, then in the Phillipines, France, Belgium, Bermuda, Colombia, the Honduras, Italy, Mexico, Haiti, and Burma in old age. By the entire year of 1940, the famous soft drink was bottled in forty countries.

Advertising for the cola has included many product slogans including, "The Pause That Refreshes", which was used in 1929, "Have A Coke And A Giggle, " which was found in 1979, and "Always Coca Cola" which was used in 1993 when sales from this soft drink exceeded ten billion conditions worldwide. (http://www. essortment. com/all/cocacolacompan_rlee. htm)

The world is changing all around us. To continue to flourish as an enterprise over another a decade and beyond, we must look ahead, understand the trends and causes that will form our business in the foreseeable future and move swiftly to prepare for what's to come. We should incomparable tomorrow today. That's what our 2020 Eyesight is focused on. It creates a long-term destination for our business and us with a "Roadmap" for being successful as well as our bottling lovers.

Our Mission

Our Roadmap starts with our objective, which is enduring. It declares our purpose as a firm and assists as the standard against which we weigh our activities and decisions.

To refresh the planet. . .

To inspire occasions of optimism and enjoyment. . .

To create value and make a difference.

Our Vision

Our vision functions as the framework for our Roadmap and guides every aspect of the business by describing what we need to accomplish to be able to continue achieving sustainable, quality growth.

People:Be considered a great destination to work where people are motivated to be the best they could be.

Portfolio:Bring to the globe a collection of quality beverage brands that anticipate and gratify people's wishes and needs.

Partners:Nurture a winning network of customers and suppliers, together we create common, enduring value.

Planet: Be a responsible citizen which makes a difference by assisting build and support sustainable communities.

Profit: Maximize long-term go back to shareowners while being mindful of our overall tasks.

Productivity: Be a highly effective, trim and fast-moving organization.

Our Being successful Culture

Our Winning Culture identifies the behaviour and behaviors which will be required of us to make our 2020 Eyesight a reality.

Live Our Values

Our values provide as a compass for our activities and describe how exactly we behave on the globe.

Leadership:The courage to condition a better future

Collaboration: Leverage collective genius

Integrity:Be real

Accountability:If it is to be, it's up to me

Passion:Determined in heart and mind

Diversity: As inclusive as our brands

Quality:What we do, we do well

Focus on the Market

Focus on needs of our consumers, customers and franchise partners

Get out in to the market and hear, observe and learn

Possess a global view

Focus on execution available on the market every day

Be insatiably curious

Work Smart

Act with urgency

Remain attentive to change

Have the courage to change course when needed

Remain constructively discontent

Work efficiently

Act Like Owners

Be accountable for our actions and inactions

Steward system property and give attention to building value

Reward our people for taking risks and finding better ways to solve problems

Learn from our outcomes -- what did the trick and what didn't

Be the Brand

Inspire creativity, interest, optimism and fun

The Coca-Cola System

Meet Our Company

The coca cola company i the worlds major beverage company. We operate in more than 200 countries and market a portfolioof more than 3000 drinks products including sparkling drinks but still beverages such as waters, juices and juice refreshments and still drinks such as waters, drink and juice drinks, teas, coffees, activities drinks and energy drinks.

Who we are

Headquarted in Atlanta, Georgia, we use approximately 92, 400 affiliates across our six functioning groups-Eurasia &Africa, Europe, Latin America, THE UNITED STATES, Pacific and bottling Investment in addition to Corporate.

What we Do

Our Company manufacturee the concentrates, beverage bases and syrups thats make our brand unique, and provides those to bottling procedures. We oown our Licence the Brands adn, to connect our brands to your customers, we give attention to marketing activities including print out and television set advertising, online programs shop displys, sponsorship, contests and offer design.

Why is our role Important

Our concentrate on drink creation and marketing enables us to comprehend and meet up with the diverse and ever-changing drink desires and needs of our consumers around the world.

We are a global business that works on a local scale, in every community where we do business. We're able to create global reach with local concentration because of the power of the Coca-Cola system, which comprises our Company and our more than 300 bottling partners worldwide.

While many view our Company as simply "Coca-Cola, "our bodies operates through multiple local channels. Our Company makes and markets concentrates, beverage bases and syrups to bottling operations, owns the brands which is accountable for consumer brand marketing initiatives. Our bottling partners manufacture, package, goods and distribute the final branded beverages to our customers and vending partners, who then sell our products to consumers.

All bottling associates work directly with customers -- food markets, restaurants, street sellers, convenience stores, movie theaters and carnivals, among many others -- to do localized strategies developed in partnership with our Company. Customers then sell our products to consumers for a price of just one 1. 6 billion servings a day

Organization structure

The Coca-Cola Company currently employs approximately 92, 800 employees up to december 2009.

According to a general details extracted from the company's website, there are in least 5 hierarchical levels at the corporate level. Eg you can find aboard of Directors, Working group authority and Functions command.

Due to its large structure, the business has experienced communication problems. Among the problems discovered through the review discussed earlier was that individuals and the business lacked clear goals (Fox, 2007). Large hierarchies also cause drive problems, which is why the business is attempting to get employees more engaged (Arendt, Ch. 5). The increased effectiveness of the co mpany's intranet will greatly raise the communication between every level of employees, and invite higher management to effectively connect to leading line employees. Based on information from Re This period of control seems relatively thin for the CEO of such a large corporation. The CEO is also a member of the Senior

Leadership Team. This team involves each brain of the eight working communities aforementioned, and also has other top professionals in areas like creativity and technology and marketing. Although there are only six individuals who answer right to the CEO, the CEO can receive suggestions from a wide variety of divisions for that reason leadership team. Since the team is comprised of users from various divisions, the CEO can obtain a wide selection of information. The proceed to decentralization has caused structural changes for The Coca-Cola

Company. New offices have been exposed to aid decisions being made closer to the local market segments (Annual Review, 2006). The organization has also undergone centralization of some of the company's departments. In 2006, the Bottling Assets division was made to "establish interior firm for our consolidated bottling functions and our unconsolidated bottling investments (Annual Statement, 2006, p. 2). " It would appear that the organization is striving for a cross structure, which allows those to have benefits of both mechanistic and organic and natural structures, while striving to reduce the negative implications of every. The tactical structural changes that the business has truly gone through lately have created a much needed positive impact on the company. Sales development increased and employees are a lot more satisfied (Fox, 2007). The business is trying to make a more innovative culture by driving towards decentralization. It appears as if the business is not content with following styles in the beverage industry, but looking to be on the forefront of new and fascinating products.

Organisation culture

The culture on the Coca-Cola group is mission influenced; focused on refreshing your brain, motivating optimism, and making a notable difference (Thecocacolacompany. com). The abundant history of the organization has allowed the business to compile hundreds of testimonies of consumers and employees. These stories share real life examples of what Coca-Cola methods to their consumers and provides employees a feeling of take great pride in to be aside of something that means very much for more and more people. They also motivate new employees to make a positive effect on the world. Stories are so important to The Coca-Cola Company that they created a museum in Las Vegas

that focuses on the tales of customers. After visitors heard others' reviews, they could record their own, that your company could use in the foreseeable future (McLellan, 2006). As explained previously, the company has been hoping to improve the culture by allowing employees to essentially shape and reform the goals from the Coca-Cola Company (Fox, 2007). The positive experiences that the business chooses to target onprovide a groundwork to encourage employees to be not only model employees, but model individuals.

SWOT Analysis


What does the business do? What goods and services should it produce/provide? What kind of value will it create? What does the company's Total annual Report explain as the organization's quest?

"Our business is nonalcoholic beverages-principally carbonated carbonated drinks, but also a variety of noncarbonated drinks. We manufacture beverage concentrates and syrups, which we sell to bottling and canning businesses, fountain wholesalers plus some fountain retailers, as well as some completed beverages, which we sell mainly to distributors. We also produce, market, and send out certain drink and juice beverages and certain normal water products. In addition, we have ownership interests in numerous bottling and canning businesses, although most of these

operations are independently owned and managed.

The firm produces something widely known, Coca-cola or Coke. Besides the namesake, it also has approximately 400 other brands, including a range of other Coke variants. Another element of the organization containers and distributes the products. The value it generates for its consumers is that it's a good tasting drink that consumers wish to have. For some, it may give more energy to do to the caffeine, for others, it may just be the tastes that they enjoy. We assume that our success is determined by our capability to connect with consumers by providing them with a multitude of options to meet their wishes, needs and lifestyle selections. Our success further will depend on the ability in our people to do effectively, every day. Our goal is by using our Company's assets-our brands, financial strength, unrivaled circulation system, and the strong dedication of management and employees-to become more competitive also to accelerate growth in a fashion that creates value for our shareowners (Total annual Survey, 2006, p. 33). "


What difficulties confront the business today? So how exactly does its organizational design

relate to these problems?

The Coca-Cola Company encounters a wide variety of problems. In america, consumers are becoming more health mindful, which has damage the sales of Coca- Cola. Due to The Coca-Cola Company's global occurrence, the company must deal with many political challenges. They are criticized for creating a great deal of pollution, detrimental town's water items, and also have been highly criticized for its alleged anti-union activities. Coca-Cola also faces increased competition from wellestablished global companies, and local organizations as well (Total annual Statement, 2006). The Coca-Cola Company also encounters challenges using its supply of raw materials. The prices for most of its raw materials fluctuate predicated on market conditions. When these prices grow, so do creation costs. Some of the raw materials can be found only from a few limited suppliers (Annual Statement, 2006).

Coca-Cola has more of an decentralized structure, separated by region. Because the majority of the company's problems are structured geographically, the decentralized structure is ideal. Each region has different legislation, different consumer needs, and different problems to deal with. Having a decentralized structure, problems can be solved quickly and effectively. Some functions continue to be centrally located, such as marketing and creativity. This allows the business to formulate one global message, but also allow that concept to be personalized at the neighborhood level.


Change Management

- Managing in a Changing Global Environment

Due to its incredible global existence, The Coca-Cola Company runs in an extremely uncertain environment. Increased competition from global and local companies has led to competition over the main resource: customers. The Coca-Cola Company should never only compete for customers, but also raw materials needed for every product. In some parts of the world, clean water is now increasingly tricky to find. The Coca-Cola Company has only one or two suppliers for a few of its recycleables. For instance, they view The NutraSweet Company as one of only two practical resources for the ingredient aspartame (Annual Article, 2006).

The Coca-Cola Company reaches a strong disadvantage if indeed they cannot lower their reliance on a tiny volume of suppliers. If relations with suppliers deteriorate, or if the suppliers go bankrupt, it could have dire consequences for The Coca-Cola Company. The Coca-Cola Company must remain competitive to get the best employees possible. The development of the drinks will not require skilled labor, but the organization has had problems locating the proper personnel to perform the organization. In 2004, The Coca-Cola Company's top selections for the open CEO position didn't join the company because they didn't like the activities of the Mother board of Directors (McKay and Terhune, 2004).

Due to the organization's high credit history, the company has the capacity to raise funds better value (Annual Record, 2006). This enables the organization the possibility to finance operations such as growth through the issuance of credit debt. This can be necessary when the Coca-Cola Company looks to expand into new market segments, or purchase new brands. The surroundings where the Coca-Cola Company runs in is incredibly dynamic. The surroundings is difficult to anticipate and control due to the global aspect of the functions. The Coca-Cola Company encounters the threat of reduced creation or disruption in circulation if there is a difficulty in a market. The Annual Statement (2006) lists dangers, such as staff member attacks, work stoppages, and the chance a distributor falls on harsh economical times. Another reason the business's environment is immensely dynamic is because of the nature of these raw materials. Some of their key recycleables are dependent on specific climates (Annual Statement). Climate changes may impact the price tag on the materials they need to obtain and, in turn, affect the cost of production.

The power and interconnectedness of the overall forces how the Coca-Cola Company must package with make the surroundings extremely complex. Just lately in america, two forces have began to become inter-woven: cultural/social prices and political/environmental causes. Many American companies are now lambasted if indeed they do not try to be more green, plus the Coca-Cola Company is not a different. The company has received a great deal of criticism for its businesses in India, with says that they cause a great deal of pollution and also have damaged local water equipment ("Online extra, " 2006). Dynamism Low (steady) High (dynamic) Munificence Abundant Scarce Abundant Scarce Complexity

Few Many Few Many Few Many Few Many

Environmental Uncertainty

Low High

The Coca-Cola Company runs on the wide variety of techniques to control relationships with its stakeholders, the most readily useful tool being strategic alliances. A previous CEO of the organization claimed that 100 percent of its revenues came from proper alliances ("The science of alliance, " 1998). The company uses exclusive deals using its bottling partners and other customers as well (Total annual Report, 2006). In 1999, the organization authorized a ten-year package with

Burger King to be the restaurants only supplier of drinks. Despite the fact that PepsiCo was willing to give Wendy's a much better package, the restaurant agreed upon a ten-year offer with all the Coca-Cola Company (Deogun & Gibson, 1999). This example shows how powerful the Coca-Cola brand name really is. The Coca-Cola Company did an outstanding job managing some areas of the surroundings, but done a poor job at controlling other areas of the surroundings. The

negative publicity received from its businesses in India and the activities of its

bottling spouse in Colombia has led to boycotts of Coca-Cola products on some campuses ("Online extra, " 2006). While this is clearly bad for the company, the common consumer is totally unaware of these allegations. Which means that The Coca-Cola Company does a good job of destruction control. While the company hasn't acquired any trouble with suppliers nowadays, the future is actually uncertain. It does not seem like the company is not actively trying to secure supplies, which is why vertical integration was advised.


Recommendation 1

The Coca-Cola Company has a high level of uncertainty when it comes to the recycleables it uses. For a few of the ingredients, the company only has one or two viable suppliers. This could be extremely problematic for a number of reasons. The Coca-Cola Company has less bargaining power if there is little substitutability in suppliers. Another problem could arise if the supplier

experiences an event that economically devastates them. If the supplier goes bankrupt, or is in a few kind of natural disaster, The Coca- Cola Company would put up with greatly as well.

The Coca-Cola Company can improve and secure connections with suppliers utilizing a few practices such as minority ownership or tactical alliances. The best optimal method is always to use backward vertical integration and buy a dealer. The results of such a strategy would allow the business to keep profits which used to be received by the distributor, save on costs, and also have a reliable way to obtain supplies. Aside from the actual purchase of the business, another costly facet of vertical integration is high bureaucratic costs (Jones, 2007).

The Coca-Cola Company should check out buying the subsequent companies: The NutraSweet Company, Ajinomoto Co. , Inc. , Nutrinova Diet Specialties & Food Ingredients GmbH, or Tate & Lyle. These companies are 1 of 2 possible suppliers for important raw materials (Annual Statement, 2006). Although the company has not experienced significant problems, future situations are always uncertain. The most secure way to regulate suppliers for a business is through possession. While ownership of any glucose/sweetener company is clearly out of the company's website, the move would make their key business more profitable. The Coca-Cola Company would have the ability to acquire one of the companies through funding. The organization has a higher credit history and, therefore, would be able to increase money for the acquisition at a low cost.

Recommendation 2

The Coca-Cola Company's decision making process will not match its framework or mission, eye-sight, and worth. Their decision making process is more centralized, and when compared to the rest going on on the Coca-Cola Company, it generally does not match. The Coca-Cola Company has a more organic framework and their objective and worth preach imagination and employee engagement. They would enhance their decision making and enforce their organic structure by implementing a technique for organizational learning. They are able to begin by shaking things up more often by changing professionals for different departments on a periodical basis. This will likely force

managers to believe outside the field when making decisions (Jones, 2007). This can also enforce a learning organization and instill the organic culture into everyone's mind frame. Because of this, The Coca-Cola Company can realize your desire to resolve large problems quicker and become a more powerful community as a result.

Another way The Coca-Cola Company could match their decision making skills with their framework is by ensuring employees do get involved. They should execute an available door policy where any staff can go to their supervisor and suggest ideas for handling different problems. This will allow the management to be alert to small problems before they become large ones. By changing their decision making process, they will also are more familiar with their recently implemented mission, vision, and values. They will inspire optimism in every stakeholders by causing decisions in a timelier manner. This may show stakeholders that The Coca-Cola Company has a great view for future years because problems will seem to be like less associated with an obstacle to them. By including more, lower level employees in their decision making process, they may be promoting leadership and inspiring cooperation and invention.

Recommendation 3

The Coca-Cola Company is becoming highly criticized for the actions of its bottling partners in Colombia. The bottling company is purported to have killed employees because of the ties with a union, and whilst The Coca-Cola Company will not own that seed, The Coca-Cola Company has been the prospective of boycotts and lawsuits. Even if The Coca-Cola Company was unaware and uninvolved in what took place, their name is attached to the product. To make the problem better, The Coca- Cola Company can purchase the bottling partners in Colombia. The business can use its resources to create stable bottling vegetation. Managers would have to use union leaders to create an arrangement that was good for both factors. While overtaking and working the vegetation would cost the business money, the business could have full control over the activities of managers. This increased accountability and devotion to correcting any wrong doings would garner some positive publicity for the business's operations, and provide the advantage of having a well balanced distribution channel in your community.

Although the business does not own the majority of their bottling plants, acquiring the Colombian bottlers would provide The Coca-Cola Company with the ability to foster better relationships with the citizens of the country. This acquisition would cost the business profit the short-term, but it might provide fruitful benefits in years to come.

Introduction/ exec summary

The organisation strategy




Services offered by Pathfinder International

Organization structure




Organisation culture

What they wear

Mode of communication

Solving problems

Briefing sessions

Chain of command

SWOT Analysis





Human resources and management




Information technology

Performance appraisal and motivation




Change management

Barriers to change management

Conclusion and recommendation


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