Yashna pohani roll No : 37 Ishaan singh Roll no: 47

CONTE N TS Introduction ................................ ................................ ................................ ................................ ................................ Coca colas Global coverage. ................................ ................................ ................................ ........................... History ................................ ................................ ................................ ................................ ................................ ........... Revenues ................................ ................................ ................................ ................................ ................................ ..... Products and Brands ................................ ................................ ................................ ................................ ............. Mission, Vision and Values ................................ ................................ ................................ ................................ Organizations and Organizational Effectiveness ................................ ................................ ................... takeholders, Managers, and Ethics ................................ ................................ ................................ ............. Organizational Design ................................ ................................ ................................ ................................ ........... Designing Organizational Structure: Authority & Control ................................ ................................ . Designing Organizational Structure: Specialization & Coordination ................................ .......... Managing in a Changing Global Environment ................................ ................................ ......................... Organizational Design & Strategy ................................ ................................ ................................ .................. Creating & Managing Organizational Culture ................................ ................................ ........................... Organizational Technology ................................ ................................ ................................ ................................ Organizational Transformations ................................ ................................ ................................ ...................... Decision Making ................................ ................................ ................................ ................................ ....................... Managing Conflicts, Power and Politics ................................ ................................ ................................ .....

IN RO UC ION
The oca- ola ompany is a beverage company, manufacturer, distributor, and marketer of

non-alcoholic beverage concentrates and syrups. The company is best known for its flagship product oca- ola, invented by pharmacist John Stith Pemberton in 1886. The formula and brand was bought in 1889 byAsa ompany in 1892. Besides its namesake andler who incorporated The oca- ola oca- ola

oca ola beverage, -

oca- ola currently offers

more than 400 brands in over 200 countries or territories and serves 1.6 billion servings each day. The company operates a franchised distribution system dating from 1889 where The oca- ola ompany only produces syrup concentrate which is then sold to oca- ola

various bottlers throughout the world who hold an exclusive territory. The

ompany is headquartered in Atlanta, Georgia. Its stock is listed on the YSE and is part of DJIA, S&P 500 Index, the Russell 1000 Index and the Russell 1000 Growth Stock Index. Its current chairman and E is Muhtar Kent.

COC

C OL S

LO

L CO V E R

E.

HISTORY
The C e i i e H ll C l l H ll i Pe h ert C l C . The (l ter k e Fl h e ' f er C e t Pe t r e t Pe , A. O. re eive ffi i l Pe ert ' Or r e , C hS r ert l ert h rter Le C , ri i rt er hi f r e t C l ), Pe .I Che i te , the lC 7, rth, th rize ert , ert ll e t li he i i e . The e t ther . C. it l h f $ ex e i r. r Q ee e t h t : Pe H ir k . the . eri te the Stith Pe ert e, . S. Pe ert ' Fre Pe the ert ert E h Wi e ' e

et ee ell three ' I

re i e t

e hile E e t. The

e the e

V i e Pre i e t. Pe tN . e i i eC ith Elixir .

riett St. Three e r l ter, the rt er hi , thi ti e et ee fiel . Fi , ll i O t . The e it fferi er e l t i , the e e h rter

r h , E. H. Bl

. B thi ti e, the

REVE
A ll t li e tr ll i tri te e r i e e t C

ES
t the trie . The re e C l r i : A rl l e rt, the , ever r xi the tel te f r 7 A l . e illi r xi e ell re th e ri ever illi the tr e r ever e rk e t i e e ri ll re th f r the ' t t l le

rt f rther t te th t f the i e ever tf r t

e ervi

. Of the e, ever rt, C C l h

rk "C le . Al f ll

C l " r "C ke"

tel 7 % f the C

. 37% i the U ite St te . . 3% i % exi re ,I thr i , Br zil, h t the re t f the the Pe rl le' e li f Chi

United States

Mexico, India, Brazil, Ja pan and the People's Republic of China

Rest of the world

In 2010 it was announced that annual K grocery sales.

oca- ola had become the first brand to top 1 billion in

The data for the year 2009 is given in the table below:

PRO UC S
The oca- ola

R N S

ompany offers nearly 400 brands in over 200 countries, besides its

namesake oca- ola beverage. Tab was

oca- ola s first attempt to develop a diet soft

drink, using saccharin as a sugar substitute. Introduced in 196 , the product is still sold today, however its sales have dwindled since the introduction of Diet oke.The oca- ola anta s

ompany also produces a number of other soft drinks including anta and Sprite. origins date back to orld ar II when Max Keith, who managed

oca- ola s operations

in Germany during the war, wanted to make money from

a i Germany butdid not want the anta, which proved to anta brand as well.

negative publicity. Keith resorted to producing a different soft drink, be a hit, and when

oke took over again after the war, it adopted the lear emon anta p.

The German Fanta Klare Zitrone

variety became Sprite, another of

the company s bestsellers and its response to

During the 1990s, the company responded to the growing consumer interest in healthy beverages by introducing several new non -carbonated beverage brands. These

included Minute Maid Juices to Go, PowerAde sports beverage, flavoured tea joint venture with estle), ruitopia fruit drink and Dasani water, among

estea in a others. In

2001, Minute Maid division launched the Simply juice.

range brand of juices including orange

C l i the e t elli l re i ethele fi tive I re e i the h l h K l h ti ti ft ri k i ' l tl ee ith the t e t elli th t rl t % ,

ft ri k i here C

t C l i ll

trie . While the t the i' 7 %) e Ir Br hi h r C er e h

le E le e

ti ri k, C

e f the C l th i l r, C l t

rket h re (t Pe here the l C l l r th ri k ( r I i e ) te there i et re ft l ,

i it r re C

3. Si il rl , i S

th C

iet C ke C l ,

t ell Ir Br . I Per , the r re t te % f it t ke . I l r. A e r i . the he lth t r f , the h, the

e ter i e t elli C S

ffee re tC i i C l , re r i

C l C e l i

C ke i le

l ri

the ri k. O $ . evel At le t e t he the l rie" C O vit i r h t ree Ch , i e h e Chi e l illi , t , ell tr je l C C l e l ee ti t t the the ti f e Pe l ther e ft ri k ' rel te e t ri k iC , hi h le ere rre te etit r, Pe t l t ere v li ffere tifie e ith tr i ffee ret il f r the e el e r e ever r le, " e e t h r e iC f r e ret, e i riet r . rt tive F r th ritie

ith tr i

e e ret i f r r vi l r he ri k, E vi . I te t i i ir the , i

ker'

. The re i e f r C e t. C e C l exe

C l , erh , the i f r le reve le ,

ever i

tive verifie th t the

i . The ere te . 7, C

ir t r . The

C l i ,C i e , j i e , r r (HK$ i . er 3,

e it ter), fl v C l Li ite

l re

r h ter ,

e t

ker f fl v ri k , f r $ . ke f lj i e

re illi re ke ie ,

ri k (vit H i

e er

h. O Se te

e it i te ti ( hi h h ' l h rt er h re). Chi li ite

h ffer t er e l

% h re f the Chi e e i i tr ll l

fr it j i e the e l l h ve I O t e rket i er

rket f r US$ . r h he , C e e er

th t the e l

rket ri e reve le ti it i e

er h i e . l rie i i th t h l W hi 7. t fl i .C.

C l e t

e r h

The fir t hi

re ex e te t re

h the Ne .

Y rk Cit

MISSION, VISION
F ll i m mi i i i l

N
, i i i -

V LUES
m m l m

The world is changing all around us. To continue to thrive as a business over the next ten years and beyo nd, we must look ahead, understand the trends and forces that will shape our business in the future and move swiftly to prepare for what s to come. e must get ready for tomorrow today. That s what our

2020 Vision is all about. It creates a long-term destination for our business and provides us with a Roadmap for winning together with our bottling partners. Mi i

ur Roadmap starts with our mission, which is enduring. It declares our purpose as a company and serves as the standard against which we weighour actions and decisions. a. To refresh the world b. To inspire moments of optimism and happiness c. To create value and make a difference.

Vi i ur vision serves as the framework for our Roadmap and guides every aspect of our

business by describing what we need to accomplish in order to continue achieving sustainable, quality growth. . People: Be a great place to work where people are inspired to be the best they can be. b. Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate an d satisfy people's desires and needs. c. Partners: urture a winning network of customers and suppliers, together we create

mutual, enduring value. d. Planet: Be a responsible citi en that makes a difference by helping build and support sustainable communities. e. Profit: Maximi e long-term return to shareowners while being mindful of our overall responsibilities. f. Producti ity: Be a highly effective, lean and fast-moving organi ation

Our Winning Culture O r Wi r i Vi i C lt re efi e the ttit re lit . e eh vi r th t ill e re ire f t ke

Live Our Values O rv l e erve r f r et e r h ti e e ri e h e eh ve i the rl .

a. Leadership: The c. Integrity: Be re l

etter f t re

b. Collaboration: Lever d. Accountability: If it i t e. Passion: C f. Diversity: A i l ive

lle tive e i e, it' r r ell t i e

itte i he rt , e

g. Quality: Wh t e ocus on the Market . F . . P . F e. Be i Work Smart . A t ith r e . . e e i re r tr i ive t et tivel ti et e exe l ee t i t the ti ri f rl vie

r rket i the

er , li te , rket l

t erve

er

fr le r

hi e

rt er .

e ever

h h i e

e r e he te t ee e

. H ve the

e. W rk effi ie tl Act Like Owners . Be . Ste . e r r t le f r te r e r t r et le f r t ki e ti f ri k h t rke i ti il i fi i v l e etter h t i t t lve r le

. Le r fr Be the Brand I ire re tivit ,

ti i

ORG A IZ ATIONS AND ORG ANIZATION AL E

Wh t ll e The A eri i tr r iti l the C i tri r ti l te th ei li e t tr e C re ex ,C C l r ff ere, e t it left C e the P i C l ei thre t, i t h t it C l ive t C l e r e f the t lt re. C i ; i f te the r rk l . rketi i , C l till, the C , P ert e. Whe rt r vi e A eri t t the t l li ll f ith . ti it . I tr ri t the tr re tl e A eri r er t e i e f r T he C er t , t ke , . B verti e e t iz ti t l fi C l tr the l f l e l f r free t ll re e ti et iz er te f r ver le r e ? hel e C i r e i tri r th er, the fC te iz ti C l tle , lre , h C l rketi f e h e r ,

ECTIVENESS
l the ,

ilit t

rket h i ve te i

e C l er, A

i C C

f the ler, le the

e The C

exi te . Be i e re e er ti i

th t ve ir th t

t. He l , the

e i te

U ite St te Thi f tr te rket , Bef re l W r II, C l vie ert W here the et the i E r ri k, .

C l C v t e f e the Phili i e

lt re. The C eff rt ei

i kl le t C l i E r e r

The U ite St te e tere C l C , the ith C r, t ex ttli ire it t r e C l , re l t h t

W rl

l t r er t ifi . Thi

th i e . The C

re i e t, r le t te f r er ti f ere

ver e

Over ti e, The C l C f r i tr t i The ke i The ei r r iz ti le r le h li ever i e i ri k , j i e ri k , till th t et th r it e t

C l rt f r , fi r

h ft

re

i e ter. The

t C l rre t f f the i tri ee ti rl r

t C

the ell e er C l e h, ter r

tr . Be i e ri k , te , th. The i l tre

ri k , The C je tive riv lle e l

f The C iz ti te , l i t l re

rre t th,

e e t

i e t

hieve l

t f r r e re tl f

ti iffere t t e

re the r e f rketi

teri l eete er i i , h

e i the ever e e i e it l i

e . e tr te i e. Si t et t e the the

here the i ever i ever rt

e . W ter i

e f the

re ie t

company as the company.

ell. Without its employees knowle

e and abilities, The Coca -Cola Company

would not be nearly as successful. The secret formula for Coca -Cola is another key input for

The Coca-Cola Company does not actually produce soda. They produce the concentrate or syrup, which is then sent to distributors. istributors add carbonated water and any other ingredient necessary to create the final product. The production process of Coca -Cola is a secret; however, it mainly consists of adding the correct amount of ingredients, and mixing them. The process to create each beverage is extremely mechanized in order to achieve uick and efficient prod uction. The outputs of The Coca -Cola Company are the syrups and concentrates of its beverages. The Coca-Cola Company faces a number of challenges, many of which stem from the fact that the organization operates on such a large level. Each market has its own trends and demands. Consumers in some markets have become more heath conscious. In order to react to this trend, many diet and low -calorie drinks have been created. The Coca-Cola Company is always trying to find ways to be innovate. anti-carbohydrate trends created by the Atkins diet, Coca-Cola C ue to the was introduced. It is

supposed to have the same taste as Coca -Cola, but contain half the carbohydr ates. Another problem The Coca -Cola Company faces is derived from the social and political differences of each market. For example, different countries have different laws. ost developing countries have more relaxed pollution re uirements. In some countri es, bribes of government officials are considered normal and expected. While it is company policy that The Coca-Cola Company will follow the laws of every country that it operates in, it still has strong criticism from other parts of the world for its actions. The company has recently been the subject of strong criticism the companys bottling plants in Colombia are alleged to have killed workers who were attempting to unionize. Even though the bottling plants are independently owned and operated, and nothi ng has happened legally to the bottling plants in Colombia, The Coca -Cola Company has been facing strong criticism for it in the United States. The Coca-Cola Companys structure has characteristics of both organic and mechanistic models. The organization h as a more centralized structure, however in recent years there has been a movement towards decentralization. A more in -depth analysis of the organizations structure will be discussed later. The Coca-Cola Company measures success in many ways. The Coca-Cola Company believes that if they analyze sales based on volume growth, it is an indicator of trends at th e consumer level. The company obviously looks at profit as a way to measure success.

Recently, The

oca- ola

ompany has been focused on being a more responsible global

citi en. The company has over 0 clean-water projects in countries all across the globe.

KEHOL ERS, M ANAGERS, AN

oca- ola

E HICS
orporate

The stakeholders for The Responsibility Review are: a. Shareowners b. Employees c. Bottling partners

ompany as stated in the companys

d. Governmental agencies e. Suppliers f. g. h. i. Retail customers onsumers ocal ommunities G s

Because each group of stakeholders has a different goal, conflicts arise. The shareowners are concerned with earning a profit, while local communities care deeply about environmental issues and labour standards. Suppliers want to charge as much as possible to create more revenues, and The Coca -Cola Company wants to get the lowest prices to decrease costs. anagement wants to keep labour costs down, while employees want raises and increased benefits. The organizations divisional managers run company operations in a general region of the globe. The functions of each vice president are divided into functions such as human resources, innovation/research and development, marketing, and publi c affairs and communication. The two functions most critical in taking advantage of the companys competitive advantages are marketing and innovation/research and development. As stated time and time again, the organization tries to capitalize on its brand name as much as possible, which is why the marketing function is so important to the company. The Innovation/research and development department must come up with the products that the marketing function demands. The majority of the top level managers at The Coca -Cola Company have worked in many different regions and areas of the company. any have worked for or ran the bottling companies that partner with the organization. The fact that members of the top management team have well rounded backgrounds allow for problems to be looked at from multiple angles.

ORG ANIZ ATIONAL DESIG N

The Coca-Cola Company realizes that it needs to be able to meet the ever changing demands of its customers. This is why the company pushed towards decentralization in the nineties, and even more so recently. The organization has two operating groups called Bottling Investments and Corporate. There are also operating groups divided by different regions such as: Africa, Eurasia, European Union, Latin America, North America, and Pacific. Each of these divisions is again divided into geographic regions. By allowing decisions to be made on a more local level, the organization can uickly respond to changing market demands, and higher -level management can focus more on long -term planning. Certain divisions of the company, such as finance, human resources, innovation, marketing, and strategy and planning are centrally located within the corporate division of the company. Some of these functions take place at lower levels in each of the regions of the company; however, most decisions are made at the top of the hierarchy. For example, in the decision to sponsor the World Cup was done at the corporate level. Corporate headquarters,

however, allowed the local divisions to make the advertising decisions. This allowed each division to specifically design commercials and ads that would appeal to the local market. When Neville Isdell took over as CEO and chairmen of The Coca -Cola Company in , he

began to using more complex integrating mechanisms. In order to deal with organizations extremely low growth rate, Isdell used teams of top managers to create solutions to the organizations most pressing problems. Face -to-face meetings were held regularly at the local levels so employees could remain informed. Besides the use of teams and meetings, the intranet was overhauled to provide a source of real -time sharing of information. The use of complex integrating mechanisms is important in such a tall and wide organization. It is important that each function of the company is able to share up -to-date information quickly with each other. The organization seems to be doing an excellent job of balancing standardization and mutual adjustment. The Code of Conduct for the organization is a guidebook for how every employee should act . Should an employee act improperly, they are subject to disciplinary actions. ue to the changes implemented by Isdell, mutual adjustment has started to play a larger role in the organization. Employees feel more engaged and turnover has been reduced. Isdells changes have led to increased growth rates for the organization, and return on equity for stockholders went from a negative return to a percent return. This balance i s essential, because it allows employees some flexibility, but also gives the organization some predictability . The Coca-Cola Companys structure is a hybrid of both mechanistic and organic models. The focal point of The Coca -Cola Company is on responsiveness. The complex integrating mechanisms previously discussed are characteristic of an organic structure. The surveys and interviews used by the company allowed information to flow from the bottom-up, and the intranet allows for information to be exchanged laterally. The surveys have also caused The Coca -Cola Company to pursue simplification and standardization . Centralization and high standardization are associated with a mechanistic structure. The blending of both types of structures seems to be ideal for the organization. Flexibility is essential when trying to appeal to such a vast number of independent markets, however, high standardization is important to remain efficient in production. The use of complex integrating mechanisms allows for easier coordin ation for the global company. Centralization keeps organizational choices aligned with organizational goals. Now that information in the company is flowing in every direction, upper -management will have access to information more quickly, adding to the org anizations flexibility and responsiveness. The recent shift

towards a more decentrali ed and organic structure corresponds with the uncertainty of the organi ations environment.

DESIGNING ORG ANI ATIONAL STRUCTURE: AUTHORITY CONTROL

The oca- ola ompany currently employs approximately 94,800 employees. According to

a general organi ational chart obtained from the companys website,there are more than 5 hierarchical levels at the corporate level.

MD

HR MANAGERS

MARKETING MANAGER

FINANCE MANAGER

PRODUCTION MANAGER

QUALLITY MANAGER

ADMIN MANAGER

FRONT LINE MANAGER

FRONT LINE MANAGER

FRONT LINE MANAGER

FRONT LINE MANAGER

FRONT LINE MANAGER

FRONT LINE MANAGER

WORKERS

WORKERS

WORKERS

WORKERS

WORKERS

WORKERS

or example: the head of the

anadian division reports to the president and , who reports to the

of the ffice of the

orth American Group. That president reports to the General ounsel. The General

ounsel then reports to the

E . It is fair to assume that

there are at least a few more steps in the hierarchy at the local level. Due to its tall structure, the organi ation has experienced communication problems. ne of

the problems discovered through a survey, was that the people and the company lacked clear goals. Tall hierarchies also cause motivation problems, which is why the organi ation is attempting to get employees more engaged. The increased usefulness of the companys intranet will greatly increase the communication between every level of employees, and allow upper management to effective communicate to the front line employees. ly Based on information from Report 2006 this span of control seems somewhat slim for the E of such a large organi ation. The E is also a member of the Senior eadership

Team. This team consists of each head of the eight operating groups aforementioned, and

also has other top executives in areas like innovation and technology and marketing. Although there are only six people that answer directly to the CEO, the CEO is able to receive input from a wide variety of divisions because of this leadership team. Since the team is comprised of members from various divisions, the CEO is able to obtain a wide variety of information. The move to decentralization has caused structural changes for The Coca -Cola Company. New offices have been opened to facilitate decisions being made closer to the local markets. The organization has also undergone centralization of some of the companys departments. In , the Bottling Investments division was created to establish internal o rganization for our consolidated bottling operations and our unconsolidated bottling investments. It appears that the organization is striving for a hybrid structure, which allows them to have advantages of both mechanistic and organic structures, while t rying to minimize the negative consequences of each. The strategic structural changes that the organization has gone through in recent years have created a much needed positive impact on the company. Sales growth increased and employees are much more satis fied. The organization is trying to create a more innovative culture by pushing towards decentralization .

DESIGNING ORG ANIZ ATI ONAL STRUCTURE: SPECI ALIZ ATION & COO RDINATION
The Coca-Cola Company realizes that a divisional structure gives the organization the best opportunity to react to the changes in its uncertain environment, but also allow it to maintain a level of stability. The multidivisional structure is beneficial for the organization for a variety of reasons. The division based on geographic region allows certain aspects of the companys operations to be tailored to the individual market. One advertising campaign or slogan may not be appropriate for another market, so decisions about specific ads are made closer to the individual markets. ultidivis ional structures allow divisional managers to handle daily operations while corporate managers are free to focus on long -term planning. There are also problems associated with this type of structure. If the company creates divisional competition, coordination may decrease because each division wants to have an advantage over everyone else. Communication problems may also exist because information can become distorted when it has to travel up and down tall hierarchies. A multidivisional matrix struc ture may be better suited for The Coca -Cola Company. This would increase coordination between corporate and divisional levels, and managers at each

level would work together to create solutions to problems. While such a structure may be too complex for a global organization, the company may want to look into it.

M AN AGING IN A CHANGI NG GLOBAL ENVIRONMEN T

Due to its tremendous global presence, The Coca -Cola Company operates in an extremely uncertain environment. Increased competition from global and local co mpanies has led to competition over the most important resource: customers. The Coca -Cola Company must not only compete for customers, but also raw materials needed for each product. In some parts of the world, clean water is becoming increasingly hard to come by. The Coca-Cola Company has only one or two suppliers for some of its raw materials. For example, they view The NutraSweet Company as one of only two viable source s for the ingredient aspartame . The Coca-Cola Company is at a strong disadvantage if they cannot decrease their reliance on a small number of suppliers. If relations with suppliers deteriorate, or if the suppliers go bankrupt, it would have dire consequences for The Coca -Cola Company. The Coca-Cola Company must also compete to get the bes t employees possible. The production of the beverages does not require skilled labor, but the organization has had problems finding the proper personnel to run the organization. In they did not like the actions of the Board of Directors. Due to the organizations high credit rating, the company has the ability to raise funds at a lower cost. This allows the organization the opportunity to finance oper ations such as expansion through the issuance of debt. This may be necessary if The Coca -Cola Company looks to expand into new markets, or purchase new brands. The environment in which The Coca -Cola Company operates in is extremely dynamic. The environment is difficult to predict and control due to the global nature of the operations. The Coca-Cola Company faces the threat of reduced production or disruption in distribution if there is a problem in a market. The Annual eport ( ) lists risks, such as wo rker strikes, work stoppages, and the chance a distributor falls on harsh economic times. Another reason the companys environment is tremendously dynamic is due to the nature of their raw materials. Some of their key raw materials are dependent on specifi c climates. Climate , The Coca -Cola Companys top choices for the open CEO position decided not to join the company because

changes may impact the price of the materials they need to obtain and, in turn, affect the cost of production. The strength and interconnectedness of the general forces that The Coca -Cola Company must deal with make the environment extr emely complex. forces. ecently in the United States, two forces have started to become inter -woven: cultural/social values and political/environmental any American companies are now being lambasted if they do not try to be more environmentally friendly, and The Coca- Cola Company is no different. The company has received plenty of criticism for its operations in India, with claims that they cause a great deal of pollution and have damaged local water s upplies. The Coca-Cola Company uses a wide variety of techniques to manage relationships with its stakeholders, the most useful tool being strategic organization claimed that alliances. A former CEO of the percent of its revenues came from strategic alliances. The

company uses exclusive contracts with its bottling partners and other customers as well. In , the organization signed a ten -year deal with Burger King to be the restaurants only supplier of beverages. Even though PepsiCo was willing to give Wendys a much better deal, the restaurant signed a ten-year deal with The Coca-Cola Company. This example shows how powerful the Coca-Cola brand name really is. The Coca-Cola Company has done an excellent job managing some aspects of the environment, but done a poor job at managing other parts of the environment. The negative publicity received from its operations in India and the actions of its bottling partner in Colombia has led to boycotts of Coca-Cola products on some campuses. While this is clearly bad for the company, the average consumer is completely unaware of these allegations. This means that The Coca-Cola Company is doing a decent job of damage control. While the company has not had any trouble with suppliers lately, the future is always uncertain. It does not seem like the company is not a ctively trying to secure supplies, which is why vertical integration was recommended .

ORG ANIZ ATIONAL DESIG N & STRATEG Y

The core competences that give the organization its best competitive advantages are its strong brand name and its network of bottlers and distributors. Along with its marketing capabilities and broad portfolio of products, The Coca -Cola Company has core competences which are extremely difficult, if not impossible to duplicate. The strong Coca-Cola brand name gives the company a great de al of bargaining power and leverage. In , PepsiCo and The Coca -Cola Company were fighting to become the supplier of beverages for the Wendys restaurant chain. Wendys opted to partner with The Coca -Cola Company even though PepsiCo was offering much more money. The brand name recognition that the company enjoys is a powerful bargaining tool. The Coca -Cola name even has an influence on consumer tastes. When The Coca-Cola Company was looking to launch Diet Coke , they performed some blind taste tests with consumers. The consumers preferred a glass labelled Diet Coke over a glass labelled Tab by percent, even though the liquids in each glass were identical. It has taken the years to build such a strong brand preference, and this cann ot be organization over

imitated by competitors. The relationships that the organization has with its distributors are another competitive advantage that cannot easily be imitated. The contracts and relationships between the two groups create symbiotic interdependencies, wh ich mean that the success of both companies has a direct impact on each other. The Coca -Cola Company agrees not to sell to other parties in the local market, and the bottler agrees to only purchase the syrup and concentrate from the companys authorized de alers. The Coca-Cola Company at times provides the retailers and distributors with promotions , and capital at times. Because the organization does not have to worry about the distribution in the local markets, it allows the company to focus on more importa nt issues. The Coca-Cola Companys business -level strategy is one of differentiation. This is evident in the previous example of consumers preferring identical beverages just because the Coke brand name was attached. They have been successful pursuing dif ferentiation because the focus of the company has always been on marketing. The Coca -Cola Company is known for innovative marketing that constantly promotes their brand names and protects their domains from competitors . The hybrid structure of The Coca -Cola Company is ideal for its differentiation strategy. The centralization of the marketing and innovation functions allows the company to retain control

over development, marketing and production. By performing extensive market research and creating more local offices, the company is always looking for new ways to serve new customers. The use of complex integrating mechanisms allows coordination between all levels and divisions of the company.

CREATING & M AN AGING ORG ANIZ ATIONAL CULTURE

The culture of The Coca-Cola organization is mission driven; focused on refreshing the mind, inspiring optimism, and making a difference (Thecocacolacompany.com). The rich history of the organization has allowed the company to compile hundreds of stories of consumers and employees. These stories share real life examples of what Coca-Cola means to their consumers and gives employees a sense of pride to be a part of something that means so much for so many people. They also inspire new employees to make a positive impact on the world. Stories are so important to The Coca -Cola Company that they created a museum in Las Vegas that focuses on the stories of customers. After visitors heard others stories, they could record their own, which the company could use in the future ( cLellan, ). allowing

As stated previously, the company has been trying to change the culture by

employees to essentially shape and reform the goals of The Coca -Cola Company (Fox, 7). The positive stories that the company chooses to focus on provide a foundation to encourage employees to be not only model workers, but model citizens.

ORG ANIZ ATIONAL TECHNOLOGY

Currently, output processes are the greatest source of uncertainty for the organization. As previously stated, The Coca -Cola Company does not produce the end product. Distributors and bottlers mix other ingredients (mainly carbonated water) with syrups and concentrates and then sell the products. The Coca -Cola brand name is on the end product, regardless of who bottles it. The company must keep pressure on the bottlers to maintain high quality outputs, or it could have negative consequences for The Coca -Cola Company. There exists very little information about the production of the Coca -Cola syrup. Even at The World of Coca-Cola, a museum for the company, there is no menti on of how the syrup is produced . The production of Dasani , the companys bottled water, is extremely mechanized, and it is fair to assume that the production of every Coca -Cola product is the same. This mass production and high mechaniza tion leads to a high level of technical complexity.

Classification Level of Technical Complexity a. Small-Batch and Unit Production Low to b. Large-Batch and ass Production edium

edium to High

Continuous Process or Flow Production High The typical structure o f a manufacturing company that uses mass production is a mechanistic structure, in which efficient production is the desired end. The Coca-Cola Companys structure is unique in that it has a lot of the characteristics of an organic structure. This is due t o its focus on marketing and local appeal. The structural mismatch means that production in the organization may not be as efficient as possible; however, the benefits of the organizations structure outweigh the consequences.

ORG ANIZ ATIONAL TRANS ORMATIONS

The Coca-Cola Company was founded in to take advantage o f the already popular years,

Coca-Cola name. Of the four life cycle stages (birth, growth, decline, death), after continue to evolve.

the company remains in the growth stage because the companys value creatio n skills

The company has faced a variety of internal problems over the years. A constant struggle in any organization is trying to meet employees demands while trying to keep labour costs low. In , workers went on strike because ma nagement wanted to institute a policy where employees would pay a greater portion of their health be nefits. If the organization experiences any work stoppage, the company may not be able to meet customer demand and lose out on revenue. Another internal pro blem within the company is that the board exercises a great deal of power and influence. As previously stated, the company failed to attract its top choices for CEO in , and the board has even pulled ads because they thought the commercials did not fit the companys image . Uncertainty in the environment has caused many external problems for the organization, ranging from uncertainty with its suppliers and distributors to political and societal pressures. . While there was not information regarding p olicy changes because of this, many believe that the power of the board will diminish because long time director Warren Buffet has stepped down. Buffet has been viewed as rather conservative and also involved himself in the decision making of the organizat ion. As the company has continued to grow, top managers have pushed operational responsibility and decision making down to the local levels. This move allows the company to react better to each market, and it also allows corporate managers to concentrate o n strategic and long -term planning.

By allowing lower level managers to become intricately involved in the companys growth efforts, Neville Isdell created an environment in which everyone felt responsible for the companys performance. He has also promoted employees within the organization, which aligns both the goals of the managers a nd the organization . The fifth and final stage of reiners model is focused on reducing bureaucracy to speed up decision making. In April 7, COO uhtar Kent stated that the company is focusing on simplifying the structure to reduce bureaucracy. Theory postulates that an organization in this stage would be wise to pursue a product team or matrix structure. Because The Coca -Cola Company only operates in one domain and has over products, the product team structure would be too costly and unrealistic. A matrix structure would be an idea worth considering; however the organization uses divisions based on geography, not product. Due to lack of information about the companys regional structure, it is hard to say whether the company should pursue a matrix structure or remain as a multidivisional structure.

DECISION M A ING
The majority of decisions made by The Coca -Cola Company are done so by using the incremental method. Each year, the company would analyze results, and then make slight changes in operations to create better results next year. The company does not just quickly decide to create a new product, or change operations. Drastic changes take time. ecently, real izing that the company was in desperate need for a

drastic change, Isdell sought to figure out why the company performance was declining. By starting at the lower levels of the organization to find solutions, the company was able to make some drastic changes to the companys culture, how employees were rewarded, and made efforts to get employees more involved. The changes brought on by using the unstructured decision making model created much better results for the company. One of the biggest flaws in the organization is that the board of directors is responsible for some of the non -programmed decisions made by the company. When The Coca -Cola Company was seeking to purchase Quaker Oats, the deal was almost finalized, but then stopped because the board felt the price was too. When decisions are made by the board, it means they lack confidence in the upper management of the company to make vital decisions. This is problematic for the company for a few reasons. Because members of the board have so much money invested in company stock, they want to minimize risk, and thus, are extremely prone to take fewer chances. The members of the board do not or have not

worked for the company, so they are not close enough to know all the pertinent information required to mak e complex decisions.

M AN AGING CONFLICTS, POWER AND POLITICS

Conflicts can be a healthy way for an organization to improve decision making, and create new ways for looking at problems. Conflicts can also be a significant source of trouble for an organization when they cause production declines or important decisi ons cannot be made. When the organization sought a new CEO in , their top choices turned them down because the prospects felt that the board had too much power . This type of conflict can dras tically affect the organizations ability to change and adapt quickly, a necessity in the companys extremely uncertain environment. The example also shows that it can prevent the organization from acquiring important human resources. The marketing departm ent is the most powerful subunit in the organization. According to the data , The marketing department has considerable power because it is the department that can attract customers the critical scarce resource. The heavy emphasis on marketing could prevent the company from finding ways to become more efficient in production or distribution. The benefits derived from the power allocated to the marketing function greatly outweigh any negative consequence. By providing the department with more resources, the company can conduct greater market research. For example, even though the organization had a diet beverage on the market, research indicated that by simply using the name Diet Coke, preferences for the same tasting beverage increased dramatically. Allocating more capital to the department also allows for each marketing campaign to be tailored to specific markets, making advertisements more effective. arket research also saves money for the company. If consumer data shows the company that one of their i deas would not do well, the company can decide not to produce that beverage. The strong emphasis on marketing has allowed Coca -Cola to become one of the most recognized brand names in the world, which gives the company an advantage over its competition and gives it more bargaining power. One negative consequence of putting such a great emphasis on marketing research is evidenced in what has become known as one of the greatest flops in history. Taste tests indicated that consumers would prefer a ne w, sweeter version of Coca-Cola, which lead to the creation of New Coke in . The strong brand attachment that the company worked so hard to achieve with consumers caused a severe backlash towards the reformulation of Coca -Cola. This example proves that market research cannot always be an indicator of what will actually happen.