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A Case Study Of The Coca Cola Company Business Essay


Thi paper contains a comprehensive analysis of The Coca-Cola Company and addresses several Organizational Behaviour and Human Resources issues. Recommendations are proposed based on the jobs that were discovered during the survey. The ends of the recommendations are to turn to uncertainness with The Coca Cola Companies providers and distributers, and besides align company decision-making with the construction of the organisation.


Declaration I


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Abstract three

Contentss iv

List of Abbreviations V

Definition of footings: six

List of Tables and Figures: seven

Appendixs: eight

Chapter ONE 1


1.0. Organizational Background 1

Mission, Vision HYPERLINK “ # __RefHeading__107929_754499052 ” & amp ; HYPERLINK “ # __RefHeading__107929_754499052 ” Values 1

Why is our function Important 4

Organization construction 4

Organisation civilization 5

Appendixs a


BIBLIOGRAPHY degree Celsius

List of Abbreviations

Definition of footings:

List of Tables and Figures:


Chapter ONE


Organizational Background

This was called Atlanta Begining ( 1886-1892 ) . It was 1886, and in New York Harbor, workers were building the Statue of Liberty. Eight hundred stat mis off, another great American symbol was about to be unveiled.

Like many people who change history, John Pemberton, an Atlanta druggist, was inspired by simple wonder. One afternoon, he stirred up a fragrant, caramel-colored liquid and, when it was done, he carried it a few doors down to Jacobs ‘ Pharmacy. Here, the mixture was combined with carbonated H2O and sampled by clients who all agreed — this new drink was something particular. So Jacobs ‘ Pharmacy put it on sale for five cents a glass. A

Pemberton ‘s bookkeeper, Frank Robinson, named the mixture Coca-ColaA® , and wrote it out in his distinguishable book. To this twenty-four hours, Coca-Cola is written the same manner. In the first twelvemonth, Pemberton sold merely 9 spectacless of Coca-Cola a twenty-four hours. A

A century subsequently, The Coca-Cola Company has produced more than 10 billion gallons of sirup. Unfortunately for Pemberton, he died in 1888 without recognizing the success of the drink he had created. A

Over the class of three old ages, 1888-1891, Atlanta man of affairs Asa Griggs Candler secured rights to the concern for a sum of about $ 2,300. Candler would go the Company ‘s first president, and the first to convey existent vision to the concern and the trade name. ( The Coca Cola company web site )

Its popularity would non remain within the United States for long, though, because in the twelvemonth of 1906, Coca Cola was bottled in Cuba and in Panama. Bottling operations were shortly started in Hawaii the following twelvemonth, so in the Phillipines, France, Belgium, Bermuda, Colombia, the Honduras, Italy, Mexico, Haiti, and Burma in subsequently old ages. By the twelvemonth of 1940, the celebrated soft drink was bottled in 40 states.

Ad for the Cola has included many merchandise mottos including, “ The Pause That Refreshes ” , which was used in 1929, “ Have A Coke And A Smile, ” which was used in 1979, and “ Always Coca Cola ” which was used in 1993 when gross revenues from this soft drink exceeded ten billion instances worldwide. ( hypertext transfer protocol: //www.essortment.com/all/cocacolacompan_rlee.htm )

Mission, Vision & A ; Valuess

The universe is altering all around us. To go on to boom as a concern over the following 10 old ages and beyond, we must look in front, understand the tendencies and forces that will determine our concern in the hereafter and travel fleetly to fix for what ‘s to come. We must acquire ready for tomorrow today. That ‘s what our 2020 Vision is all about. It creates a long-run finish for our concern and provides us with a “ Roadmap ” for winning together with our bottling spouses.

Our Mission

Our Roadmap starts with our mission, which is digesting. It declares our intent as a company and serves as the criterion against which we weigh our actions and determinations.

To review the universe…

To animate minutes of optimism and felicity…

To make value and do a difference.

Our Vision

Our vision serves as the model for our Roadmap and ushers every facet of our concern by depicting what we need to carry through in order to go on accomplishing sustainable, choice growing.

Peoples: Be a great topographic point to work where people are inspired to be the best they can be.

Portfolio: Bring to the universe a portfolio of quality drink trade names that anticipate and satisfy people ‘s desires and demands.

Spouses: Raising a winning web of clients and providers, together we create common, digesting value.

Planet: Be a responsible citizen that makes a difference by assisting physique and support sustainable communities.

Net income: Maximize long-run return to stockholders while being aware of our overall duties.

Productiveness: Be a extremely effectual, thin and fast-moving organisation.

Our Victorious Culture

Our Victorious Culture defines the attitudes and behaviours that will be required of us to do our 2020 Vision a world.

Live Our Valuess

Our values serve as a compass for our actions and depict how we behave in the universe.

Leadership: The bravery to determine a better hereafter

Collaboration: Leverage corporate mastermind

Integrity: Be existent

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

Passion: Committed in bosom and head

Diverseness: Equally inclusive as our trade names

Quality: What we do, we do good

Focus on the Market

Focus on demands of our consumers, clients and franchise spouses

Get out into the market and listen, observe and larn

Possess a universe position

Focus on executing in the market place every twenty-four hours

Be unsatiably funny

Work Smart

Act with urgency

Remain antiphonal to alter

Have the bravery to alter class when needed

Remain constructively discontent

Work expeditiously

Act Like Owners

Be accountable for our actions and inactivities

Steward system assets and concentrate on edifice value

Reward our people for taking hazards and happening better ways to work out jobs

Learn from our results — what worked and what did n’t

Be the Brand

Inspire creativeness, passion, optimism and merriment

The Coca-Cola System

Meet Our Company

The coca Cola company i the universes largest drink company. We operate in more than 200 states and market a portfolioof more than 3000 drinks merchandises including scintillating drinks and still drinks such as Waterss, juices and juice drinks and still drinks such as Waterss, juice and juice drinks, teas, javas, athleticss drinks and energy drinks.

Who we are

Headquarted in Atlanta, Georgia, we employ about 92,400 associates across our six runing groups-Eurasia & A ; Africa, Europe, Latin America, North America, Pacific and bottling Investment in add-on to Corporate.

What we Do

Our Company manufacturee the dressed ores, drink bases and sirups thats make our trade name unique, and sells them to bottling operations. We oown our License the Brands adn, to link our trade names to our clients, we focus on selling activities including print and telecasting advertisement, on-line plans retail shop displys, sponsorship, competitions and bundle design.

Why is our function Important

Our focal point on drink creative activity and selling enables us to understand and run into the diverse and ever-changing drink demands and desires of our consumers around the universe.

We are a planetary concern that operates on a local graduated table, in every community where we do concern. We are able to make planetary range with local focal point because of the strength of the Coca-Cola system, which comprises our Company and our more than 300 bottling spouses worldwide.

While many view our Company as merely “ Coca-Cola, ” our system operates through multiple local channels. Our Company manufactures and sells dressed ores, drink bases and sirups to bottling operations, owns the trade names and is responsible for consumer trade name selling enterprises. Our bottling spouses industry, bundle, ware and administer the concluding branded drinks to our clients and peddling spouses, who so sell our merchandises to consumers.

All bottling spouses work closely with clients — food market shops, eating houses, street sellers, convenience shops, film theatres and amusement Parkss, among many others — to put to death localised schemes developed in partnership with our Company. Customers so sell our merchandises to consumers at a rate of 1.6 billion helpings a twenty-four hours

Organization construction

Planing Organizational Structure: Authority & A ; Control

The Coca-Cola Company presently employs about 92,800 employees up to december 2009.

Harmonizing to a general inside informations obtained from the company ‘s web site, there are at least 5 hierarchal degrees at the corporate degree. Eg there is aboard of Directors, Operating group leading and Functions leading.

Due to its tall construction, the organisation has experienced communicating jobs. One of the jobs discovered through the study mentioned before was that the people and the company lacked clear ends ( Fox, 2007 ) . Tall hierarchies besides cause motive jobs, which is why the organisation is trying to acquire employees more occupied ( Arendt, Ch.5 ) . The increased utility of the carbon monoxide mpany ‘s intranet will greatly increase the communicating between every degree of employees, and let upper direction to efficaciously pass on to the front line employees. Based on information from Re This span of control seems slightly slender for the CEO of such a big organisation. The Chief executive officer is besides a member of the Senior

Leadership Team. This squad consists of each caput of the eight runing groups aforementioned, and besides has other top executives in countries like invention and engineering and selling. Although there are merely six people that answer straight to the CEO, the CEO is able to have input from a broad assortment of divisions because of this leading squad. Since the squad is comprised of members from assorted divisions, the CEO is able to obtain a broad assortment of information. The move to decentalisation has caused structural alterations for The Coca-Cola

Company. New offices have been opened to ease determinations being made closer to the local markets ( Annual Review, 2006 ) . The organisation has besides undergone centralisation of some of the company ‘s sections. In 2006, the Bottling Investments division was created to “ set up internal organisation for our amalgamate bottling operations and our unconsolidated bottling investings ( Annual Report, 2006, p.2 ) . ” It appears that the organisation is endeavoring for a intercrossed construction, which allows them to hold advantages of both mechanistic and organic constructions, while seeking to minimise the negative effects of each. The strategic structural alterations that the organisation has gone through in recent old ages have created a much needed positive impact on the company. Gross saless growing increased and employees are much more satisfied ( Fox, 2007 ) . The organisation is seeking to make a more advanced civilization by forcing towards decentalisation. It looks as if the company is non content with following tendencies in the drink industry, but looking to be on the head of new and exciting merchandises.

Administration civilization

Creating & A ; Managing Organizational Culture

The civilization of The Coca-Cola organisation is mission driven ; focused on reviewing the head, animating optimism, and doing a difference ( Thecocacolacompany.com ) . The rich history of the organisation has allowed the company to roll up 100s of narratives of consumers and employees. These narratives portion existent life illustrations of what Coca-ColaA© means to their consumers and gives employees a sense of pride to be apart of something that means so much for so many people. They besides inspire new employees to do a positive impact on the universe. Narratives are so of import to The Coca-Cola Company that they created a museum in Las Vegas

that focuses on the narratives of clients. After visitants heard others ‘ narratives, they could enter their ain, which the company could utilize in the hereafter ( McLellan, 2006 ) . As stated antecedently, the company has been seeking to alter the civilization by leting employees to basically determine and reform the ends of The Coca-Cola Company ( Fox, 2007 ) . The positive narratives that the company chooses to concentrate onprovide a foundation to promote employees to be non merely model workers, but theoretical account citizens.

SWOT Analysis


What does the organisation make? What goods and services does it produce/provide? What sort of value does it make? What does the company ‘s Annual Report describe as the organisation ‘s mission?

“ Our concern is nonalcoholic beverages-principally carbonated soft drinks, but besides a assortment of uncarbonated drinks. We manufacture beverage dressed ores and sirups, which we sell to bottling and tining operations, fountain jobbers and some fountain retail merchants, every bit good as some finished drinks, which we sell chiefly to distributers. We besides produce, market, and distribute certain juice and juice drinks and certain H2O merchandises. In add-on, we have ownership involvements in legion bottling and tining operations, although most of these

operations are independently owned and managed.

The organisation produces a merchandise widely known, Coca-cola or Coke. Besides the namesake, it besides has about 400 other trade names, including an array of other Coke fluctuations. Another aspect of the organisation bottles and distributes the merchandises. The value it creates for its consumers is that it is a good tasting drink that consumers would wish to hold. For some, it may give more energy to make to the caffeine, for others, it may merely be the gustatory sensation that they enjoy. We believe that our success depends on our ability to link with consumers by supplying them with a broad assortment of picks to run into their desires, demands and lifestyle picks. Our success farther depends on the ability of our people to put to death efficaciously, every twenty-four hours. Our end is to utilize our Company ‘s assets-our trade names, fiscal strength, matchless distribution system, and the strong committedness of direction and employees-to become more competitory and to speed up growing in a mode that creates value for our stockholders ( Annual Report, 2006, p.33 ) . ”


What challenges confront the organisation today? How does its organisational design

relate to these jobs?

The Coca-Cola Company faces a broad assortment of jobs. In the United States, consumers are going more wellness conscious, which has hurt the gross revenues of Coca- Cola. Due to The Coca-Cola Company ‘s planetary presence, the company must cover with many political challenges. They have been criticized for doing a great trade of pollution, damaging town ‘s H2O supplies, and have been extremely criticized for its alleged anti-union actions. Coca-Cola besides faces increased competition from wellestablished planetary companies, and local organisations as good ( Annual Report, 2006 ) . The Coca-Cola Company besides faces challenges with its supply of natural stuffs. The monetary values for many of its natural stuffs fluctuate based on market conditions. When these monetary values rise, so do production costs. Some of the natural stuffs are available merely from a few limited providers ( Annual Report, 2006 ) .

Coca-Cola has more of a decentralised construction, separated by part. Since the bulk of the company ‘s jobs are based geographically, the decentralised construction is ideal. Each part has different ordinances, different consumer demands, and different jobs to cover with. With a decentralised construction, jobs can be solved rapidly and efficaciously. Some maps remain centrally located, such as selling and invention. This allows the company to explicate one planetary message, but besides allow that message to be tailored at the local degree.


Change Management

– Managing in a Changing Global Environment

Due to its enormous planetary presence, The Coca-Cola Company operates in an highly unsure environment. Increased competition from planetary and local companies has led to competition over the most of import resource: clients. The Coca-Cola Company must non merely vie for clients, but besides natural stuffs needed for each merchandise. In some parts of the universe, clean H2O is going progressively difficult to come by. The Coca-Cola Company has merely one or two providers for some of its natural stuffs. For illustration, they view The NutraSweet Company as one of merely two feasible beginnings for the ingredient aspartame ( Annual Report, 2006 ) .

The Coca-Cola Company is at a strong disadvantage if they can non diminish their trust on a little figure of providers. If dealingss with providers deteriorate, or if the providers go bankrupt, it would hold dire effects for The Coca-Cola Company. The Coca-Cola Company must besides vie to acquire the best employees possible. The production of the drinks does non necessitate skilled labour, but the organisation has had jobs happening the proper forces to run the organisation. In 2004, The Coca-Cola Company ‘s top picks for the unfastened CEO place decided non to fall in the company because they did non like the actions of the Board of Directors ( McKay and Terhune, 2004 ) .

Due to the organisation ‘s high recognition evaluation, the company has the ability to raise financess at a lower cost ( Annual Report, 2006 ) . This allows the organisation the chance to finance operations such as enlargement through the issue of debt. This may be necessary if The Coca-Cola Company looks to spread out into new markets, or buy new trade names. The environment in which The Coca-Cola Company operates in is highly dynamic. The environment is hard to foretell and command due to the planetary nature of the operations. The Coca-Cola Company faces the menace of decreased production or break in distribution if there is a job in a market. The Annual Report ( 2006 ) lists hazards, such as worker work stoppages, work arrests, and the opportunity a distributer falls on rough economic times. Another ground the company ‘s environment is enormously dynamic is due to the nature of their natural stuffs. Some of their cardinal natural stuffs are dependent on specific climes ( Annual Report ) . Climate alterations may impact the monetary value of the stuffs they need to obtain and, in bend, affect the cost of production.

The strength and interconnection of the general forces that The Coca-Cola Company must cover with do the environment highly complex. Recently in the United States, two forces have started to go inter-woven: cultural/social values and political/environmental forces. Many American companies are now being lambasted if they do non seek to be more environmentally friendly, and The Coca-Cola Company is no different. The company has received plentifulness of unfavorable judgment for its operations in India, with claims that they cause a great trade of pollution and have damaged local H2O supplies ( “ Online supernumerary, ” 2006 ) . Dynamism Low ( stable ) High ( dynamic ) Munificence Abundant Scarce Abundant Scarce Complexity

Few Many Few Many Few Many Few Many

Environmental Uncertainty

Low High

The Coca-Cola Company uses a broad assortment of techniques to pull off relationships with its stakeholders, the most utile tool being strategic confederations. A former Chief executive officer of the organisation claimed that 100 per centum of its grosss came from strategic confederations ( “ The scientific discipline of confederation, ” 1998 ) . The company uses sole contracts with its bottling spouses and other clients as good ( Annual Report, 2006 ) . In 1999, the organisation signed a ten-year trade with

Burger King to be the eating houses merely supplier of drinks. Even though PepsiCo was willing to give Wendy ‘s a much better trade, the eating house signed a ten-year trade with The Coca-Cola Company ( Deogun & A ; Gibson, 1999 ) . This illustration shows how powerful the Coca-ColaA© trade name name truly is. The Coca-Cola Company has done an first-class occupation pull offing some facets of the environment, but done a hapless occupation at pull offing other parts of the environment. The

negative promotion received from its operations in India and the actions of its

bottling spouse in Colombia has led to boycotts of Coca-ColaA© merchandises on some campuses ( “ Online supernumerary, ” 2006 ) . While this is clearly bad for the company, the mean consumer is wholly incognizant of these allegations. This means that The Coca-Cola Company is making a nice occupation of harm control. While the company has non had any problem with providers recently, the hereafter is ever unsure. It does non look like the company is non actively seeking to procure supplies, which is why perpendicular integrating was recommended.


Recommendation 1

The Coca-Cola Company has a high degree of uncertainness when it comes to the natural stuffs it uses. For a few of the ingredients, the company merely has one or two feasible providers. This could be highly debatable for a assortment of grounds. The Coca-Cola Company has less dickering power if there is small replaceability in providers. Another job could originate if a provider

experiences an event that economically devastates them. If a provider goes bankrupt, or is in some type of natural catastrophe, The Coca- Cola Company would endure greatly every bit good.

The Coca-Cola Company can better and procure relationships with providers utilizing a few tactics such as minority ownership or strategic confederations. The most optimum method would be to utilize backward perpendicular integrating and purchase a provider. The consequences of such a scheme would let the company to maintain net incomes that used to be earned by the provider, save on costs, and have a dependable beginning of supplies. Besides the existent purchase of the organisation, another dearly-won facet of perpendicular integrating is high bureaucratic costs ( Jones, 2007 ) .

The Coca-Cola Company should look at purchasing the undermentioned companies: The NutraSweet Company, Ajinomoto Co. , Inc. , Nutrinova Nutrition Specialties & A ; Food Ingredients GmbH, or Tate & A ; Lyle. These companies are one of two possible providers for of import natural stuffs ( Annual Report, 2006 ) . Although the company has non experienced important jobs, future events are ever uncertain. The most unafraid manner to command providers for a company is through ownership. While ownership of a sugar/sweetener company is clearly out of the company ‘s sphere, the move would do their nucleus concern more profitable. The Coca-Cola Company would be able to buy one of these companies through funding. The organisation has a high recognition evaluation and, hence, would be able to raise money for the acquisition at a low cost.

Recommendation 2

The Coca-Cola Company ‘s determination devising procedure does non suit into its construction or mission, vision, and values. Their determination devising procedure is more centralised, and when compared to everything else traveling on at The Coca-Cola Company, it does non fit. The Coca-Cola Company has a more organic construction and their mission and values preach creativeness and employee engagement. They would better their determination devising and implement their organic construction by implementing a scheme for organisational acquisition. They can get down by agitating things up more frequently by altering directors for different sections on a periodical footing. This will coerce

directors to believe outside the box when doing determinations ( Jones, 2007 ) . This will besides implement a learning organisation and transfuse the organic civilization into everyone ‘s head frame. Because of this, The Coca-Cola Company will hold the ability to work out big jobs more rapidly and go a stronger community as a consequence.

Another manner The Coca-Cola Company could fit their determination doing accomplishments to their construction is by doing certain employees do acquire involved. They should implement an unfastened door policy in which any employee can travel to their director and suggest thoughts for work outing different jobs. This will let the direction to go cognizant of little jobs before they become big 1s. By altering their determination devising procedure, they will besides go more accustomed to their late adopted mission, vision, and values. They will animate optimism in all stakeholders by doing determinations in a timelier mode. This will demo stakeholders that The Coca-Cola Company has a great mentality for the hereafter because jobs will look like less of an obstruction for them. By including more, lower degree employees in their determination devising procedure, they are advancing leading and inspiring coaction and invention.

Recommendation 3

The Coca-Cola Company has become extremely criticized for the actions of its bottling spouses in Colombia. The bottling company is alleged to hold killed employees due to their ties with a brotherhood, and even while The Coca-Cola Company does non have that works, The Coca-Cola Company has been the mark of boycotts and cases. Even if The Coca-Cola Company was incognizant and uninvolved in what happened, their name is attached to the merchandise. In order to do the state of affairs better, The Coca- Cola Company should purchase the bottling spouses in Colombia. The company can utilize its resources to make stable bottling workss. Directors would necessitate to work with brotherhood leaders to make an understanding that was fair for both sides. While taking over and running the workss would be the organisation money, the company would hold full control over the activities of directors. This increased answerability and dedication to rectifying any incorrect behaviors would earn some positive promotion for the company ‘s operations, and supply the benefit of holding a stable distribution channel in the part.

Although the organisation does non have most of their bottling workss, geting the Colombian bottlers would supply The Coca-Cola Company with the ability to further better relationships with the citizens of the state. This acquisition would be the company money in the short-run, but it could supply fruitful benefits in old ages to come.

Introduction/ executive sum-up

The administration scheme




Servicess offered by Pathfinder International

Organization construction




Administration civilization

What they wear

Mode of communicating

Solving jobs

Briefing Sessionss

Chain of bid

SWOT Analysis





Human resources and direction




Information engineering

Performance assessment and motive




Change direction

Barriers to alter direction

Decision and recommendation



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