Posted at 11.25.2018
This article is to investigate Coca Cola Company. Upon this coursework I am going to look at the company on all aspects of their business functions, organisational structures to the company's objectives. I'd have to look at the departments within the business and the useful areas within these departments, also check out the various management styles within the business enterprise, considering the organisational framework, the communication used within the business enterprise, and the impact of ICT on the organisations marketing communications.
The Coca-Cola Company is the world's leading manufacturer, marketer and distributor of non-alcoholic beverage concentrates and syrups. Along with Coca Cola, the world's most widely known brand, The Coca Cola
Company market segments four of the world's top-five soft drink brands, including Diet Coke, Fanta and Sprite. Throughout the world, no other brand can be an immediately recognizable as Coca Cola. With procedures in
more than 200 countries, a diverse workforce comprised of more than 200 different nationalities, conversing in more than 100 different languages, The Coca Cola Company is part of the cloth of life in each one of the communities they provide throughout the world. It operates as an area business partner, providing quality in the marketplace, enhancing the workplace, preserving the surroundings and strengthening the city.
Coca-Cola is the most popular and biggest-selling soft drink ever sold, as well as the best-known product in the world. Coca-Cola was developed in May 1886 by Dr. John S. Pemberton in Atlanta, Georgia. The
name 'Coca-Cola' was advised by Dr. Pemberton's bookkeeper, Frank Robinson. He maintained the name Coca-Cola in the moving script that is famous today. Coca-Cola was first sold at a soda fountain by blending Coca-Cola syrup with carbonated soda pop in Jacob's Pharmacy in Atlanta by Willis Venable. Through the first calendar year, sales of Coca-Cola averaged nine beverages a day, accumulated to total sales for this season of $50.
Since the year's expenses were just over $70, Dr. Pemberton had taken a reduction. Today, products from the Coca-Cola Company are used at the rate greater than one billion drinks each day.
In 1893, Coca Cola was recorded in america and then further investment was put into it to grow the business. To handle the great capacity of its business, the Coca Cola Company has
divided up into six functioning units: Midsection and ASIA Groups, Europe, The Latin America Group, The THE UNITED STATES, The Africa Group and The Minute Maid Company. THE TOP Quarters is situated in the
United States. The united states that I'll be concentrating on is the uk and how the company works in the U. K.
I drew up this action plan as helpful information to prioritise what information I have to complete this statement. The technique of research I will use the most on this statement will be supplementary research including the annual reviews, etc.
Coca Cola's Ownership
The Coca Cola Company is a general public limited company. They offer shares to everyone through the business. It is mainly much larger companies such as Coca Cola that are public limited companies.
The features of a general public limited company are:
* Shareholders have limited liability
* The sales of shares permits larger sums of money to be raised
* As the company has this money completely, the individual
owners can recoup their money by offering their shares to others
* Directors may be earned as experts using fields
* Produce goods at lower unit cost
* Due to their size they can benefit from economies of range, e. g.
bulk buying, cheaper borrowing
The disadvantages of a general population limited company are:
· There are a number of legal requirements to fulfil in establishing a
· Regulations imply that an organization is more expensive to create than a
sole investor or partnership, although the price may be only a small amount as
100, plus some already recorded companies can be bought off the peg
· The accounting of a company is less private than for other styles of
· The company could become to large resulting in poor labour relations
· There may be a issue of interest between shareholders and the
Board of Directors
· Chance for takeover or merger because stocks can be purchased by
Coca Cola also have limited liability as they are a general population limited company. A limited company is possessed by its shareholders. There is absolutely no legal maximum to the number of shareholders. You can find two forms of
Limited Responsibility Company in the UK, the Private Limited Company (Ltd) and the general public Limited Company (Plc). The essential difference, between the two, is that the Private Limited Company cannot legally
offers its stocks to the overall 'open public', therefore this form of company is usually associated with family run businesses. Whilst the general public Small Company can sell its stocks to the general public on
the STOCK MARKET, providing the prospect of far greater budget to be increased.
The owners of a restricted company are known as its members, or shareholders. An individual can become an owner of the business enterprise by purchasing shares in that business. When the gains of the business enterprise are distributed to shareholders, they are simply distributed in the form of a
dividend. The value of the dividend is decided upon not by the owners, but by the Directors of the business.
Some shareholders had invested their life cost savings and not just lost their money, but their homes, limited liability was designed to protect shareholders from this mistake, but the key purpose was to
ensure that large assignments could continue steadily to increase capital.
Coca Cola's Targets of the Company
Mainly all companies' aims are to survive, maximize their profits and to expand their business, however, from when Coca Cola experienced started, through the years they had achieved these objectives. So the
company attended up with six proper objectives to supply the company with a construction for the company's success. In 2003, every function from the Coca-Cola Company included these priorities into
their business plans. And this time, they will continue to build these priorities, and their benefits into every aspect of the business enterprise.
Coca Cola's Six Proper Priorities
1. Accelerate carbonated soft-drinks development led by coca cola Coca Cola leads with their strengths. Carbonated soft drinks stay their most profitable business and Coca Cola is the most popular brand
in the earth. This strategy paves the way for development.
2. Selectively broaden us of beverage brands to drive
profitable growth Tremendous opportunity prevails in categories such as juice and juice
drinks, bottled water, teas, energy drinks, coffee and even more.
3. Grow system success and capability together with our bottling partners Coca Cola is a company of human relationships, and one in our most important romantic relationships is the one we share with our bottling companions. In 2003, those relationships became more profitable and profitable.
4. Help customers with creativeness and consistency to generate expansion across all stations We will continually strive to increase growth for the customers' businesses, assisting create a context for the business's growth.
5. Direct assets to highest-potential areas across market segments Coca Cola tailor their business approach to the individual current market based on its stage of development. In this manner, we steer our investments in a way that makes the most business sense.
6. Drive efficiency and cost-effectiveness almost everywhere By leveraging technology, creating alignment across business units and obtaining economies of range, we are able to operate with more
To maximise earnings enables the corporation to enhance the business, to expand the business, allow business to dominate another business, buy new machineries, and pay more dividends to the shareholders. Improving the business means to upgrade the business enterprise in a sense a business
buys new Pcs, new office instruments, new furniture, expand the office, staff more labor etc. These six aims are just not the businesses goals but they provide the framework for the company's success. They achieve these goals very effectively by trying for
carrying out against a superior strategy for success, and in so doing with an unwavering determination to quality.
Departments of Coca Cola
Every organisation is made up of different departments, each of these departments help Coca Cola achieve their objectives. As Coca Cola is a huge multinational company, the levels of departments are huge. Each country has their own HQ and departments. Coca Cola is geographically put into five geographic operating segments, also known as strategic business units (SBU's). The five SBU's are THE UNITED STATES, Africa, Asia, Europe, Eurasia and Middle East and lastly Latin America. If all these departments perform in the correct way then that will continue the success of Coca Cola.
There are 6 functional departments within Coca Cola, they are:
· Research and development
The Coca Cola marketing department at the Atlanta Headquarters develops core strategies for company brands to ensure that all communication is constant in every market. With this cohesive work,
the Coca-Cola system maximizes its resources for market control and profitable development. The marketing departments are responsible for marketing the merchandise and advertising the merchandise and promoting the products. If each one of these departments perform their duty strongly then the
objectives on the Coca-Cola Company will fits.
The finance section of the Coca Cola Company is responsible for financial record keeping. This involves keeping files of money received and paid out. The financial details will be utilized to produce
the annual reports for the shareholders so that they can start to see the company performance. The Finance division is also accountable for the management accounts of the business like marketing etc. The
Coca-Cola Company funding department is also accountable for making budget of the business and for each and every team like marketing office or research and development division. They will also be engaged in the planning process like overtaking or any major decision.
The packaging section of this Coca-Cola Team is accountable for the packaging of the products. They need to make the packaging attractive so that that product satisfies the sight of the consumers. Bringing new products package deal is their responsibility. It works together with the companies bottling partners to produce an attractive mix.
The sales division of the Coca Cola Company is to coordinate the offering program. There is also to help make the distribution methods, etc.
Also, determine how much to sell and exactly how much to store in the warehouse and to choose the transporting method which is the most cost efficient and the quickest way.
Research and development
This team has their budget distributed by the finance division and their responsibility is to investigate new products. They work carefully with marketing by looking at marketing research findings. They have to bring services searching for the change because the buyer cannot stick to the same kind of products. If required then they also have to improve the quality of the products. The Coca-Cola Company research office has done a great deal of research and recently they have got launched many new products like Diet coke with lemon, Fanta Tropical, Minute maids, Fanta raspberry, Fanta blue berry etc.
This department is vital for keeping the business going. They become a help support of the company, it is not the central purpose the business enterprise but every business corporation would need this team.
Most businesses count on administration to be sorted out. They package with enquiries, give messages produce documents and give information to any customer. The grievances that this office are certain to get would be transferred to the research and development section to make the product better or fix the situation that the consumer is having. These departments are the most important department in the Coca-Cola Company because they helps the business to complies with the targets of The
Coca-Cola Company i. e. making it through, customer satisfaction and make more profits. As I said that the assistance desk department satisfies the customer by providing the information they needs and taking the grievances and transferring to the research and development departments who boosts the merchandise.
There are four main types of management styles that each business would use. Coca Cola have four rules of citizenship that they
would have to include into the management style:
* Provide quality in the marketplace
* Enrich the workplace
* Conserve the environment
* Strengthen the community
A management style can be an overall method of leadership employed by the director. The Coca Cola Company use the next management styles, but each one in various departments. You will discover three main types of management styles found in businesses:
Where the leader makes all the decisions, there is absolutely no negotiation and is very prescriptive and there is little job satisfaction. However, the work gets done quickly and there is less turmoil between different
ideas. This style is barely used among the company as they believe that having less input may lead to poor results. Autocratic will save a lot of time as quick decisions can be made and there is no time squandered on discussion leading to the business cutting down money and time.
This emphasises on group agreements to create new ideas. You will find two types of democratic management styles; democratic and consultative democratic. Democratic is where all the managers, junior professionals and employees get excited about the ideas and final decision process. Out of
all the individuals, no-one has an increased level than the others n this management style.
This is where the managers allow the employees to make the ideas however the ideas are forwarded to the executive's or the director consults their team to make the final decision. Coca Cola can be applied consultative management style to the company more as there can be less issue for what the ultimate decision is. The advantage of this is that it can help to motivate personnel as they are aware that they have a say in the company to some extent. The disadvantages of this that the process is very frustrating and work will be needed by a manager to get this done.
Management stimulates employees to create goals in-line within the organization aims. A couple of assessed regularly in performance appraisals. The features of this style are that it will increase efficiency of individuals and help to motivate them and coach them so they are really productive. The down sides of this are that it needs to be well-organized and can not work in highly set up jobs.
Democratic style is the management style that Coca cola adopts. This sort of management style includes empowerment. Within this management style individuals and groups are given tasks and decisions to make, usually within confirmed framework. If anything wrong happens then the individuals and teams are then held responsible for the decisions that are chosen. With this type of management style it allows the supervisor to feel safe with other people in the business making a few of the decisions. Democratic professionals will often want feed back again from their employees on decisions being made. Democratic market leaders listen and take action on the views of the group. This type of management is good as it makes the employees happy and production is high. This is a very good method because employee's thoughts and recommendations are listened to by the business enterprise. This makes the employees appear as if these are respected and that their thoughts are valid.
Coca Cola's Management by Objectives
Management by targets is an activity of management that emphasises the role of control and marketing communications in the organisation and control of the business enterprise. It is a way of managing professionals as opposed to the workforce at large. The next shows how Coca Cola is been able, by the three basic elements in management that Coca Cola uses by the objectives:
· The identification of agreed goals by way of a manager and a subordinate
· This is of the subordinate's responsibilities in conditions of agreed results
· The use of agreed goals and duties to regulate the improvement of the business
Every business comprises of different ethnicities and the ethnicities that can be found within the business enterprise rely upon the management style and the organisational buildings that are used. The different types of
Role Culture- This is suitable to a hierarchy organizational composition. This type of culture works best by every staff playing the role that he / she has been predetermined and corresponds with the rules and restrictions of the business
Task Culture- This culture stimulates people to work as a team; this works best in a celebrity structure.
Power Culture- This works well in a matrix composition. It is established around one prominent person/leader.
Person Culture- this culture focuses on providing administrative support and help and close focus on one person in the organization.
Role culture is the culture that Coca Cola adopts. That's where all participants have a defined job or role to handle. Role culture is generally split into a number of functions that are prepared in a hierarchical way. Coca Cola would divide themselves into various functions like accounts, marketing and production. These likewise have hierarchical ordering of office types of these are production director, production professionals, supervisors, technicians, operatives etc. This sort of culture functions by reasoning and rationality. Role culture is principally used in large organization. In this culture position in the key source of power and rules and steps are the main source of affect. They also use process culture s the employees from the I. T office may need to work together to teach their goal or target
Management design of Coca Cola.
If the culture of the business is bad, it can affect the number of absenteeism and punctuality. This means that if Coca Cola acquired a difficult and unfriendly culture it can push their staff never to come to work because they could be chosen on every day by other workers, or they could not like the task they are given so they either come in overdue or have a day of work. This might result in the business enterprise losing from work, and have less time to contact for an upgraded.
The culture of Coca Cola can have an impact on industrial relations, between managers and individuals. So if Coca Cola didn't have a warm and genial culture it could cause more disagreements between personnel and professionals and staff would not be motivated to work, for example, personnel may need to cut down on rest days, this could cause arguments as all personnel would be exhausted from working everyday and wouldn't normally have time to recover or spend it with the family. However, if the business acquired a warm culture then your managers and staff would get very well as staff could have less stress to compete with and would have a friendly environment to work in with no someone constantly raise your voice at staff.
Every business works using an organisational framework, this means that the business has its personnel organized in a certain way depending on staff, their responsibilities and whom they must report to. Ethnicities and management styles play a massive part in organizing the composition.
As the Coca Cola Company is a big multinational company, it comprises of many organizational structures, these are divided into the several units that are located round the world, that are; THE UNITED STATES, Africa, Asia, European countries, Eurasia and Middle East and lastly Latin America. Each unit is then organised into their own organisational composition. The following composition shows the Coca Cola Company in the Great Britain. Then each of the different departments has their own structure.
Marketing Organisational Structure
The composition of the marketing office is quite simple and is equally spaced out. It really is a formal framework, which means that it offers limited communication programs, the arrows show the flow of communication, it is mainly vertical moves of communication. You may easily see no problems in this structure as the span of control is spaced out and can easily be maintained.
Measuring Coca Cola's Success
Measuring Cola Cola's success can be easily done. Their success is seen by the quality of its product and its own sales results. At the existing day, Coca Cola business lead by having the most popular & most consumed soft-drinks on the planet. The info that the company may use to measure their success can be lots of the following:
· Sales information - In 1984, 77 of Coca Cola's operating income came from carbonated drinks. Today the body is 97.
* Market show - Coca Cola, in 2000, used 20. 3% of the next drinks. The chart shows that 89% of sales result from carbonated drinks, 50% of the carbonated drinks sales result from Coca Cola.
Market Talk about of 2000
Coca-Cola Old classic 20. 3%
Pepsi 13. 9%
Diet Coke 8. 6%
Mountain Dew 7. 1%
Sprite 6. 5%
Dr. Pepper 6. 2%
Diet Pepsi 4. 9%
Seven-Up 2. 0%
Minute Maid Orange 1. 5%
· Questionnaires - questionnaires may be used to ask people their views on Coca Cola and their products. The various that may be asked is approximately the prices of the merchandise, the grade of it, etc. these details then can be evaluated to see if the business is doing it. The Company delivered lasting results in 2003. They prolonged to work hard to re-activate the Company's considerable
Our geographic reach, our wonderful brands, our range of deals, our financial strength, our capacity to make links, our marketing and our creativity capabilities' The business is never satisfied, however they always make stable improvement. In 2003, the company grew profitable carbonated soft-drink level, led by Coca-Cola brand beverages. They had expanded the range of juices and juice refreshments, teas, sports drinks, waters and other noncarbonated beverages that they offer surrounding the world. Also, they had improved their focus on building brands and dealing with customers and bottling partners worldwide. The Coca-Cola system is working more effectively today, for consumers, customers, bottlers and our show owners, than it offers in an exceedingly very long time.
Use of ICT in the business
Internal ICT Marketing communications employed by Coca Cola Coca Cola use ICT to connect both internally externally. This consists of communication with:
· Employees - Fax will be utilized to contact the employees because most employees will have a fax machine in their office or wherever they will be working
· Management - If management have to be contacted then pagers may possibly be the alternative to get hold of them, fax machine could be a factor as well.
· Customers - The sole ICT communication utilized by Coca Cola to contact customers could be E-mailing, they could E-mail customers different products or new sale's etc.
· Marketers of Coca Cola - They might probably be contacted by Video conference because the distributors are very apt to be from other countries instead of the country the business is wanting to consumer the merchandise from. Internal ICT Marketing communications that Coca Cola use are:
E-mail - E-mail helps you to save a lot of time within the business enterprise if everyone would start emailing instead of calling a gathering. Coca Cola staff has programs installed on the computers, which tells them once they have obtained E-mail. This lets them communicate quickly with one another. Staff within Coca cola has usage of a pc where they can E-mail. The drawback of this type of communication is that it is very costly, as it could need to be on all day long. The advantage of this is that it's fast and information can be offered quickly. They are able to avoid the disadvantage insurance firms broadband where you pay a certain sum for unlimited gain access to.
Fax - Faxing allows people to have copies of documents they may require. Faxing is comparable to emailing. Nevertheless, you do not have the messages over a computer but a fax machine. Announcements can also be delivered via fax in order to employees of urgent messages, meetings, memoranda's, newsletters and transfer notices are amongst things that may be sent by via duty. The good thing about this is the fact that transfer documents can be received quickly but the disadvantage could by that not everyone within the business would already have a fax machine to work with, or they may well not look at it very often. these people to receive information wherever they are at whatever time. Pagers, generally are a very important thing as it allows people to receive information on the move. A disadvantage of the would by that you cannot send long text messages, all text messages must be brief, and this could lead to misunderstanding of announcements. Words may be shortened which can lead to more of distress.