Coca Cola Organization

The coca plant low-down play along, founded in 1886 in Atlanta, the United States, is the worlds largest nonalcoholic deglutition familiarity. coca cola circulating(prenominal)ly owns and markets to a majusculeer extent than 500 boozing filths (Anonymous, 2010), including waters, sports and push button drinks, juices, tea and coffee, which ar distributed in over 200 countries by dint ofout the world.Along with coca gage, the connection as well owns Sprite, Fanta and Diet deoxycytidine monophosphate, which ar four of the worlds go across five nonalcoholic beverage brands (Anonymous, 2010). As a attach to with a history of over 120 geezerhood, the coca plant sess bon ton now has an operating construction with seven operating segments and approximately 139,600 widely distributed employees (Anonymous, 2010). Today, coca booby has subsidiaries most the world and has developed its own prudence and distribution system.The relative data and evidences shown in th e following compendium allow for illustrate the effectiveness of the current anatomical complex body part model of coca plant dumbbell and how managers of coca Cola applied the hybrid structure to manage the subsidiaries in different component break opens efficiently and the strategy of decentralization to thin out the commission cost and alter autonomy of these different departments. Further more(prenominal), coca Cola determine its uncommon disposalal civilization and has set different mission, vision and values to draw off the organization, the segments, and its teams.These invisible forces have been serving as the Roadmap for the high society to come across the long goals. In the second part of the report of the fellowship horticulture, facts and stories mentioned would give examples and look how the liability of a strong culture could impact Coca Colas competitiveness and why it is so important for Coca Cola to understand customers needs in order to introduce more customer-orientated organizational culture rather than outcome-oriented culture. Organizational StructureCoca Cola is a typical manifold organization by having seven operative units in geographic areas around the world, six functional departments being responsible for different tasks and a alter labor force from different nations. Additionally, a combined characteristic of weapon and Organism is excessively one of most representative features of complexity. Under this structure, employees stool not only improve their performance to the maximum level, but they also help the partnership expand global market and adapt the ever-changing environment.The Coca Cola ships club currently employs approximately 139,600 employees (Anonymous, 2010). According to a general organizational chart stemmed from the companys website, the variableness of labor is establish on assorted job designs which exist peculiar(prenominal) rules and regulations to direct employees and m anagers. There are at least 5 graded levels in the corporate. At each level, for instance, one regional director supervises virtually 10 subordinates on average therefore, the span of control is fairly wide.And ground on the discipline of its website, the geographic regions are broken down into the diverse units that are located round the world, which are mainly North America, meat East, Asia, Europe, Eurasia, Latin America and finally Africa. And then, each subunit has its own organizational structure found on functional departmentalization. For example, in North America, its study departments are marketing, finance, and packaging, gross sales, and search and development administration.In addition to that, in terms of the parting of the authority, skipperly, the company has a more centralized structure, which the termination is mainly do by a high-level management, and the dialogue is restricted ascribable to the power structure of the authority. However, as Coca Co la encounters un trusted environments when it expands of its business, the organization realizes that it must impinge on the changing demands of its customers to win their business.Thus, Coca Cola began to push towards decentralization in the nineties and even more recently (Fox, 2007), which means that decisions are make on a more local level and communication kindle spread freely to quickly react to conspicuous market demands. Simultaneously, higher-level management butt joint have the authority to take control of the overall strategies and sign up on the companys distal goal. The Coca Cocas big success is not only due to its continuing elbow grease on producing different beverage, but also its moderate organizational structure plays a salient role.Firstly, because the Coca Cola Company, based on the annual report, has over 400 products, the product structure seems to be too pricey and unrealistic to implement. Therefore, the multidivisional structure is an appropriate stru cture and brings benefit for the company. A evidentiary strength of this structure understructure allow the company to react to changing and uncertain environments while also maintaining a level of stability. Moreover, the specific decision and strategy can be make by regional managers to fount particular situation of one area without triggering some conflicts.For example, when one region wants to conduct a specific marketing promotional strategy which is not be appropriate for another region due to the diverse marketing environment, so decisions about specific marketing tactics are made closer to that region. And thirdly, within each region, the structure is mainly divided based on the functional departmentalization, and undoubtedly, communication among each functional units members is free and efficient because of the same knowledge and expertise. Thus, the work and decision can be done more efficiently.Another big beauty of its structure is the aggregate of both(prenominal) centralization and decentralization to foot race the business. According to an article Changes in the Organization of Work An Empirical Assessment stemmed from a daybook of International Conference Proceedings, it concludes that a more decentralized hierarchy improves coordination and reduce monitoring costs. And eventually, since employees are guaranteed more flexibility from the workplaces, more job gratification can be acquired through with(predicate) more tasks autonomy and responsibilities.As a result, it volition lead to complementarily effects, which productivity gains can arise. From this eyeshot, Coca Cola seems to bond benefits from this structure deepen. On one hand, a centralized structure bideed at top level is to help senior managers take control of power and stomach a distal goal for the whole organization. On the other hand, displace decentralization also works well in the local units. Because employees can perform tasks from beginning to the end, they can figure out problems and have opinions through the working process.And, additionally, under the decentralized structure, the communication is freely flowing. Employees are more encouraged to express opinions and provide recommendations for companys operation at the weekly me eting, and gradually, a participative and communicative environment is formed which leads to employees job triumph and organizational commitment. An article appeared in Business Europe (Bogomolny, 2004) had the following knowledge According to Jon Chandler, director of communications for Europe, the responsibility for getting it right and for wampum is firmly at the local level (p. ). Obviously, productivity increased and company gets the profit in return via this structure. To sum up, it appears that the Coca Cola Company is pursuing for a hybrid structure, which take advantages of both mechanistic and primitive structures, while endeavouring to minimize negative effects of each. According to the researc h above, it seems that the organization works well after all the changes implemented. However, after the in-depth abbreviation of the organizational structure, one subtle recommendation can be addressed.According to commission on Management and Productivity, it is beneficial for all levels of company to intrust various customers needs into consideration when designing organizational structure So although the Coca-Cola possesses a hybrid structure, its structure does not adequately focus on the customer side. In order to wearing the best value to customers, a part of structure needs to serve the customers in terms of dividing them into different generations. The antecedent for this suggestion is that customers are picky and are facing abundant choices of beverage currently, and they also more care about their health. Jones, 2007) Thus, a more bourgeois decision will be made by customers while acquire the beverage. Reasonably, if the Coca-Cola Company should focus more on custo mers to analyze their preference based on different segments, and provides adequate relevant training which guided the employees to deliver satisfied good and service to customers. Consequently, the company can produce the idealistic beverage to reach the expectation of different generation, and may acquire a profitable benefit in return. Organizational horticultureOne of the most important structure blocks for the high success of the Coca Cola Company is its organizational culture. The culture of the Coca Cola Company is mission-driven focused on refreshing the mind, excite optimism, and making a difference (thecoca-colacompany. com). This durable mission facilitates Coca Cola in creating innovation, raft orientation course, diversity and an predatory culture since John Pemberton founded it in 1886. The Coca Cola Company has reached its current strong culture through decades effort.Employees share the common values that the company provides leadership, collaboration, integri ty, accountability, passion, diversity, and quality (thecoca-colacompany. com). In 2004, the Coca Cola Company came to a reinvigorating stage. E. Neville Isdell was nominated as the stark naked lead of the board and chief executive officer of the Coca Cola Company. Due to the health and wellness trend, change magnitude competition in the beverage industry and a serial publication of top leadership changes, Coca Cola had been experiencing hugely decreasing indulgent drink sales.By engaging in an open dialogue about the companys values and future development among 150 managers from worldwide divisions, a innovative vision for the sustainable growth has emerged (Andrew Martin, 2007). This vernal vision achieved an aggressive marketing strategy by refreshing the coke brand and displace particular stress on advertisement and product development (Andrew Martin, 2007). From the perspective of the dimensions of the culture, Coca Cola wants to be innovative while they are risk-averse . The company becomes more open and flexible since it gives its employees more rights.It remains aggressive at sales. Lastly, after the 2004 change, the company has become stable and gotten rid of its previous nonadaptive status (Andrew Martin, 2007). Ultimately, the company is measured by its stock value, which saw great increases through the rest of 2005 (see graph 1 in Appendix). In general, the current culture of Coca Cola Company is very effective. Based on the theory of organizational culture and effectiveness, a practical organizational culture has four fundamental traits involvement, consistency, adaptability, and mission (Denision and Mishra, 1995).Two of these traits, involvement and consistency, are indicators of openness, flexibility and responsiveness, and are strong predictors of growth. After the changes in 2004, Coca Cola Company favors increasing face-to-face interaction, providing more constructive feedbacks and generating an ideas sharing atmosphere. All of those improvements and changes allow Coca Cola getting open and flexible. Additionally, due to organization focuses more on the opinions and thoughts from lower level of employees, and grants them power to make their own choices under certain level.The communication and awareness in Coca Cola increase from 65% to 76% (Dianne, 2008). Openness and flexibility contribute significantly to the vision of crusade long-term sustainable growth by accelerating innovation and employees elaborateness and satisfaction. The other two traits, consistency and mission, are not only indicators of integration, style and vision, but also are give away predictors of profitability (Denision and Mishra, 1995). The culture of Coca Cola is guided by its enduring mission, which is to be the largest beverage company in the world since it was founded in 1886.This clear objective directs both employers and employees to get to values and make differences for organization. Besides, the vision of Coca Cola, which i s people, portfolio, profit, partners, planet, profit and productivity, declares that the employees need to achieve sustainable growth and great profits. Overall, the culture in Coca Cola Company properly reflects four traits, and fosters the effectiveness in the whole organization. What is more, both before and after the change, the company has been emphasized the aggressiveness on sales for a long time.It is easy to arouse some immoral competitions mingled with the companies and the employees. But after the implementation of the manifesto for change policy (Gordon, 2008), which is aimed to improve environment responsibilities, self-discipline at corporate level and social responsibilities. Therefore, the moral principle of the organization has been improved significantly, which makes the Coca Cola Company a better and more stable workplace. However, there are two shortcomings in the current culture. First, the Coca Cola Company has hesitated to reinvest and take risks.In 2005, t he Coca Cola Company introduced 2 new products, the Coke Zero and the Diet Coke. Luckily, the Diet Coke took the Pepsi colas place and became the No. 2 soda in the US. Unfortunately, the company only improved its product based on its original products. Although Coca Cola has raised the new missions of carrying out health and fitness, due to its resistance to change and one step slower than Pepsi, it has merely no effect. This is exactly the liability of strong cultureresistance to change. Considering the long run sustainable growth, the company should encourage innovation and all employees participation.At first, reduce barriers of information flows within the organization. Managers must make sure that people can glide path resources whenever they need. Secondly, reward employees for practical ideas. Management should not only provide pension to creativity ideas, but try to find out and stratify employees inseparable needs. Thirdly, participation can perpetually help to overcome resistance to innovation. When employees really involve into the organization, they would realize some flaws of existing products. And this will stimulate them to get fascinating thoughts and ideas.Lastly, it is necessary to get supports and encouragements from managers. Moreover, company can introduce new members to speed up the change because new blood can always bring fresh visions into organization. Second, currently, the Coca Cola Company is outcome orientation and aggressive on sales. In order to match with its new culture, the company should better move towards the strong establishment of basic values and assumption. Therefore, the company can turn to other direction and explode a new dimension of culture for a better fit.First of all, pay more circumspection to the customers and employees by fulfilling the healthy ideas and assumptions penetrated to them level by level and gradually, they can take for those views to establish a norm which is to chase a healthy lifestyle. Secondly, since the brand has already been highly recognizable, what the company needs to do next is to vivify the brand. By taking actions of inventing some rituals and create more stories, it can also set up some employee orientations to share the work experiences and internalize the organization basic assumptions.Moreover, the company needs to bring in more new members in order to better change the aggressive culture to a friendlier one. In conclusion, it is always difficult for companies to change their business culture, especially for Coca Cola, a large and stable organization with a hundred years of history. In order to keep growing and thriving, Coca Cola should try to look ahead and make internal changes to adapt to the outer environment. In fact, whether introducing new cultures or changing the current culture, managers should first let these values or beliefs infiltrate the organizational members minds.Only when these values and beliefs are commonly certain by the organ izational members, can they form a new culture. However, peoples values are hard to change. By increasing communication with employees, rewarding desirable behaviors, encouraging participation and offering necessary support, Coca Colas managers can avoid unnecessary losses. Moreover, proper structure design can benefit large multinational corporations like Coca Cola by allocating resources and assigning personnel more efficiently and effectively.Decentralization of the organizations structure offers more flexibility to Coca Colas local subsidiaries in different regions and can also reduce conflicts amidst departments. A hybrid structure requires Coca Cola to develop more understanding of customers needs, which is the most important force to push the organization forward. Overall, the analysis mentioned above illustrates that a strong business culture should always remain responsive to change, and a well-designed corporate structure is important for the organizational effectiveness. persona Bogomolny, L. (2004). Thirst for change. Canadian Business, Vol. 77 Culhane, D. (2008, February). Blog logs a culture change Coca-Colas short-term Blog Blast takes the pulse of employees on key company values. Communication world. Retrieved from http//www. entrepreneur. com/tradejournals/article/173021690. html Denison, R. D. , Mishra, K. A. (1995). Toward a Theory of Organizational Culture Effectiveness. DOI 10. 1287/orsc. 6. 2. 204 Fox, A. (2007, November). Refreshing a beverage companys culture. HR Magazine, Vol. 52, No. 11. Retrieved from http//www. shrm. org/Publications/hrmagazine/PastIssues/2007/Pages/200711. spx Foust, D. (2006, August 7). Queen of pop. BusinessWeek, Retrieved from http//www. businessweek. com/magazine/content/06_32/b3996401. htm Gordon, D. (2010). Manifesto For Change. Retrieved from http//www. scribd. com/ medical student/24111308/Manifesto-for-Change Macarthur, K. (2004, May 10). Hiring of Isdell is classic Coca-Cola. Advertising Age. 75, 3-68. Martin, A. (May 27, 2007). Coke Struggles to Keep Up With active Rivals. Retrieved from http//www. nytimes. com/2007/05/27/business/yourmoney/27coke. html? pagewanted=1sqst=nytscp=87 Martin, B. Wilcox, S. Harris, R. 2000). Committee on Management and Productivity. Transportation Research Board, NW Washington, DC. McKay, B. , Terhune, C. (2004). Bottled up behind Cokes CEO travails A long struggle over strategy although profits are strong, rivals are gaining cachet all-star board calls shots search for a red diddlyshit fighter. Wall Street Journal (Eastern Edition), A1. Radic. D. (2004). An Enterprise Odyssey. International Conference Proceedings. p. I. 27. solar site index. (2007). Retrieved from http//www. solarnavigator. net/sponsorship/coca_cola_chairman_neville_isdell. tm The Coca Cola Company. (2011). Retrieved from http//www. 123HelpMe. com/view. asp? id=148943. The Coca Cola Company. (2010). Retrieved from http//www. thecoca-colacompany. com/careers/unique_culture. html http//www. thecoca-colacompany. com/ourcompany/mission_vision_values. html The Coca Cola Company. (2010). Forward flavour Statements. Retrieved from http//www. thecoca-colacompany. com/investors/pdfs/10-K_2010/03_Coca-Cola_Item1. pdf Appendix graph 1 Quarterly Stock Price Chart (2001-2010) Retrieved from http//www. thecoca-colacompany. com/