The Coca Cola Company

The coca- smoke caller-out MGT-100 Joanne Rupe Subject MGT 100 Word Count 3291 Due Date 27. 11. 2012 Table of Contents 1. Introduction5 2. Mintzberg Roles6 2. 1 Entrepreneur6 2. 2 Leader6 2. 3 Figurehead6 3. Henri Fayol Principles7 3. 1 Initiative7 3. 2 Equity7 3. 3 Unity of Direction7 4. Weber Principles8 4. 1 Division of Labour8 4. 2 Promotion and Selection based on Merit8 5. twist Blocks of emulous Advant progress9 5. 1 Efficiency9 5. 2 Effectiveness9 5. 3 Performance and Quality9 5. 4 Innovation10 5. 5 Customer Service10 6. solicitude Science Theory11 6. 1 Total Quality focus11 . 2 duodecimal Man get alongment11 6. 3 operations Management12 6. 4 Management Information discloseline12 7. Organisation Structure13 8. Barriers to submission & Competition14 9. Organizational Environment14 9. 1 Social Variables14 9. 3 Communities and Governments14 9. 4 Competitors15 9. 5 CEO15 9. 6 S. W. O. T Analysis15 10. Factors of Organisational Culture16 11. Managing deepen & Diversity 16 11. 1 Organisational neuter16 11. 2 Diversity Aw atomic number 18ness syllabus16 11. 3 Managing Diversity17 12. Organisational Ethics17 13. Corporate Social Responsibility (CSR)17 14. Managing leaders18 4. 1 Transformational Leadership18 14. 2 Transactional Leadership18 15. Managing Motivation19 15. 1 Theories19 16. Managing conclusion qualification19 16. 1 Decision Making in spite of appearance Coca-Cola companion19 17. Conclusion20 18. References21 1. Introduction Coca-Cola is one of the easily-nigh kn avouch and used boozings through stunned the homo. The snitch is consumed by daily basis in over 200 countries. til now non everyone is awargon of what the bon ton stands for and how it functions. This report will explain how the partnership operates and how they follow the different managerial stairs to grasp their goals.It will to a fault set forth which pillowcase of structure they use to remain successful. 2. Mintzberg Roles 2. 1 Entrepreneur Asa Candler ta sted, bought and fixd to grocery Coca-Cola as a soft drink instead of a production line organization impertinent (Bellis, n/d, check bit. 3). Not only did he diverge the centering they advertised and change the harvest-tide, according to Gunderson (2009, Para. 1) Asa Candler make the ccc recruit into a globose behemoth thanks to his undischarged trade skills utilise celeberty endorsments, free samples to pharmacists & costumers and the expressive style they guarded their out of sight formula. 2. 2 LeaderThe leader role is sh ard between the 17 boards of Directors in the Coca-Cola caller-up, although the Chairman of the board and CEO Muhtar Kent argon sh experience as a front figure and role model (Coca-Cola1, 2012, Para. 3). As found in Coca-Cola1 (2012, Para. 2) the club sees Muhtar Kent as a leader that will lead them into the new century thanks to a unassailable commitment to both the determine and spirit of the worlds broadest brand. 2. 3 Figurehead Coca- Cola1 (2012, Para. 2) gives the impression that Muhtar Kent is seen both as a leader and a figurehead for the corporation.He both leads the confederacy in to a brighter future and the pass off of the employees discover at him for inspiration and help. Because he is the chairman of the board and the CEO he gives a feeling of inspiration, legal and ceremonial obligations. 3. Henri Fayol Principles 3. 1 Initiative match to Coca-Cola2 (2012, Para. 2) the ccc frequently has an open dialog with their employees rough what is new right now. During these wrangleions the three hundred asks about(predicate) what consumers like/dislike, what distri scarceors think, how improvement suffer be make, and if theyre losing market pose against competitors.By having these sorts of meetings Coca Cola al modes motivates employees to be a part of the company, to take initiative and speak up. It too teaches employees to be creative and help the company grow. 3. 2 Equity As stated in Coca-Cola3 (2012, Para. 1) they atomic number 18 dedicated to maintain very principal(prenominal) principles regarding International Human Work transport Rights everywhere they do business. As of 2005 Coca-Cola3 (2012, Para. 2) they began working with the former UN Special Representative for backing and Human Rights and professor John Ruggie to arrest principles for a framework in respecting valet rights in a business context. . 3 Unity of Direction The cardinal explains planetary changes and aims to thrive as a business over the next ten historic level, facial expression front and adapting to the changes (Coca-Cola4, 2012, Para. 1). Their mission is explained in Coca-Cola4 (2012, Para. 2) and points out three special goals To refresh the world, to inspire moments of optimism and happiness and to relieve oneself value and overhear a difference. The vision of the 300 is something that is taken very seriously. In Coca-Cola4 (2012, Para. 3) it is irradiately described what the com pany think it should accomplish to be able to substain quality growth. * 4.Weber Principles 4. 1 Division of Labour cccs management is divided into three main leadership factions Board of Directors, Operations Leadership and Senior Functional Leadership (Coca-Cola1, 2012, Para 3-5). Under these Leadership roles are middle and bottom line management, as well as employees in areas including Supply Chain Function, Manufacturing, Technical Function, Marketing, Sales Account Management, Customer and commercial message Leaders, argumentation Management, Finance, Public Affairs Communications, Human Resources, Legal, IT, Business Administrative Services and Aviation. Journey Staff, 2012, p. 1) 4. 2 Promotion and Selection based on Merit within the said(prenominal) career areas three hundred digests opportunities and support for employees through Individual Development Plans. This is made up of on the job experience (70%), expo authorized to case studies, role models and mentoring (20%) and be courses (10%). Combined, cardinal aims to focus and develop on the skills and competencies that are needed and beneficial indoors the company, as well as with opposite career opportunities. (Coca-Cola? , 2012, Para. 1) 5. Building Blocks of militant Advantage . 1 Efficiency The cardinal is efficient in the way they distribute because they only enhance the syrup come down, according to Love (2011, Para. 2). The concentrate is exchange to the bottlers all over the world and it is the bottlers who has to finish the product by adding water supply and sugar. It is a good way of clutchesing the costs pig, because there is no expenses place the syrup into stacks or bottles and there is no usage of water or sweeteners. This also simplifies their job to keep the formula of coke as a secret (Coca-Cola5, 2011, Para. 6) 5. Effectiveness There is one major dis favour by only producing the syrup, which is that the drink tastes different all over the world. Huffington (2 012, Para. 2) explains that each country has their own filtered water and uses different types and amounts of sugar. However the secret formula hampers other competitors from copying their recipe, which is an sound way by only producing the concentrate. The way 300 provides different volumes is an effective way of reaching out to more than and diverse customers. 5. 3 Performance and QualityThe company are working towards the heights-pitched expectations through their operating requirement root word called KORE (Coca-Cola6, 2012, Para. 1-3). The roughly burning(prenominal) effort in this program is done by outlining strong regulations, policies, programs and specifications to lead all operations with accuracy. The key is constant monitoring and clear confabulation while reporting new statistics to the top managers. 5. 4 Innovation The three hundred is always trying to follow the spheric trends and adapt to customer postulate by creating the right beverage that suits dif ferent groups. Coca-Cola (2011, Para. ) informs that they wee-weed low calorie drinks such as Cola Zero and Cola Light to alure both genders in know apart glide path. They create health drinks to provide the new generation and athletes with what they want. It is not fair(a) about making carbonated soft-drinks anymore, they are following the steps taken by human nature to meet the new standards of life. 5. 5 Customer Service The CCC has many employees to keep track on and Antenna (Para. 1) explains how the the company are change magnitude their dissemination and deliveries of beverages by effective management.The company use (AMP) Antenna Mobility Platform to use the field employees as human mobile offices to keep them cohesive, brisk and efficient. This system allows the company to accomplish real-time responsiveness to customers and high aims of workforce productivity, according to Antenna (Para. 2). The result of it is also that both managers and employees improve their c ommunication and collabotation as they can react quicker to changes that occur. 6. Management Science Theory 6. 1 Total Quality Management consort to Coca-Cola6 (2012, Para. 4) KORE guarantees the consistency of their business quality.They are surgical in following terms and conditions made by the different departments. They use strict rules and policies to monitor performance and to prevent inaccuracies within manufacturing. KORE arrange meetings with staff members to discuss questions and matters that concerns requirements and feedback to growth quality. Coca-Cola (20126, Para. 5) explains that the information is always on tap(predicate) for the whole department to find out the goals, process, work instructions and worksheets related to the specific area of members. 6. 2 Quantitative Management In Figure 1 Stephen (2009) shows where the highest consumptions are made.This quantitative information helps the company to work harder in specific areas where the brand is weak. Figure 1 world(a) Coca-Cola outgo Figure 2 Coke or Pepsi? In Figure 2 Y-N (2008) are giving the information telling the company of what sort of beverage is most earthy in a specific country. This enables the company to analyse the competitors and how the CCC can grow in the market. 6. 3 Operations Management The CCC makes sure their interns and potential employees finishes an intership program called SCOM (Supply Chain Operations Management), (Coke-Consolidated, Para. 2).SCOM gives them the education and experience to master manufacturing and production. Also to learn about supply chain planning, transport, delivery, gross revenue and warehouse management. It is about integrating them with the ideas and processes. The Coca-Cola Bottling troupe Consolidated (CCBCC) explains about their concern of operation management At CCBCC, we strive to recruit the most talented, motivated people to proceed to grow our outstanding team and develop into key members of our business to ensure that CC BCC will continue to lead the i1ndustry and set the bar for the rest of the beverage industry. (Coke-Consolidated, nd, Para. 4) 6. 4 Management Information System Case-Studies (2009, Para. 1) states that ISS (Information System Services) is their main department to monitor other informational groups such as CCBCC. The way of tracking files and archives is done by using EPM (Microsoft Office Enterprise Project Management) which is used as their informational technology. EPM makes CCBCC work and get wind their economics precisely and manage their recourses more efficiently in stray to make decisions and complete goals in a reduced amount of time.They evaluate details like project costs, time, functions and efforts (Case-Studies, 2009, Para. 2). This helps them to gather information to create solutions, discover benefits, and achieve goals in the different criterias. 7. Organisation Structure CCC uses both the mechanistic view of the contingency theory within the factory surround and an open systems approach within their sales department. Business, marketing and sales strategies are decided by the management and then carried out by the employees.From the managers under Muhtar Kent comes the instructions and strategies that then is federal official down into the supervisors and then to the employees. Coca-Cola introduced, the Plant Bottle, (Coca-Cola Company Plant Bottle Benefits, 2012, Para 1). The introduction of this product was a decision made by the board, afterward carried out under the supervision of managers and finally sold by employees and sales people for Coca-Cola. This is an example of a hierarchical structure which is typical of the mechanistic structure.An outdoors System approach is used for marketing and sales within CCC. CCC needfully to be able to use the raw materials and input from the external environs to produce goods and services that impact the external environment (George et al, 2012, p54). After the Tohoku Earthquake 2011, japan h ad to reduce power usage. With one vending machine for every 25 people, Japan saved over 10 million kilo watts of energy by turning them off (Coca-Cola-Company, 2012, Para 5). CCC created a vending machine called the out(predicate) Vending Machine that uses half the energy than the others.This gives them a emulous advantage over other vending machine companies within Japan (Coca-Cola-Company, 2012, Para 9). 8. Barriers to Entry Competition Due to Coca-Colas success in the industry, strong entry for new competitors is quite limited. The company has such broad market exposure, with products cosmos sold in over 200 countries (Coca-Cola, 2012), that most new companies would not pitch any kind of effect on market trends. Competition with CCC rests earlier in brands already in the market such as Schweppes and Nestle.For new brands entering the market economies of scale are macroscopical, especially due to the fact that CCC experiences small economies of scale. The risks for new or existing companies to create or expand their products are high. With CCCs prominence and brand recognition it is their biggest asset. As a result, it would take a great deal of time or money to enter the beverage market successfully, and possibly longer still for able brand recognition. 9. Organizational Environment 9. 1 Social Variables People are getting concerned about their health.The population whom are reaching a high age will decrease their amount of carbonated drinks. Meanwhile there are people who are only interested in their own health and fitness. Coca-Cola (2010, Para. 1) explains how they are strongly aiming towards an active agent and healthy lifestyle by allowing other soft drinks, such as Juice and PowerAde. They enlighten the customers to be more active by exercising more. 9. 2 Political Legal According to Grynbaum (2012, Para. 1) the New York City Board of Health approved a ban on large sized sodas from cosmos sold at restaurants, cinemas and street carts. This means that the amount of Coca-Cola bottles larger than 16oz (47cl) is going to decrease in sales. 9. 3 Communities and Governments The governments want to keep the world green and the CCC are applying this request by using their 2020 Vision (Coca-Cola2, 2012, Para 1). The company are taking responsibility towards the global environment in the way of replenishing water and manufacturing environmentally friendly bottles (Coca-Cola7, n/d, Para. 1). This is a way of helping communities which are in great need of water. 9. 4 CompetitorsThe competitors are squeeze to be innovative because of CCCs large market share. CCC has to keep being innovative and release new additions to their portfolio. This as an treasure to prevent loss of marketshare. 9. 5 CEO The biggest internal influence in the CCC comes within the CEO, Muhtar Kent. Everything that has to do with future ideas and projects originates from him. Ignatius (2011, Para. 1) informs how Mr Kent is keen to meet the future globa l demands and how important it is for him to impact the CCC by applying the vision into every single member.Mr Kent controls the attitude, values and foundations of how the CCC should be strike as an organisation not just towards the customers, but towards the global changing environment. 9. 6 S. W. O. T Analysis * Social Variables Threat People will stop drinking Coca-Cola at a certain age which results in decreased revenue. The CCC is forced to create new products to adapt to the change in environment. * Political Legal Threat This is a flat menace and limits the sales on larger soft drinks. The volume of Coca-Cola sold will decrease. The customers can no longer chose drinks bigger than 16oz. Communities and Governments Opportunity The way the company is being creditworthy and helpful towards the environment gives them goodwill and an advantage if certain legal laws would appear on environmental behaviour. Instead of being forced to change, they set the example on how to be befool. * Competitors Threat Pepsis innovative thinking puts pressure on the CCC. If a competitor creates a product that responds to customer needs it will give them competitive advantages. The CCC might lose market share as a result. * CEO Strength The role of a CEO could be a great weakness.However Muhtar Kents way of innovative thinking and leadership qualities brings confidence and inspiration towards shareholders, employees and customers. Mr Kent as a CEO is a great strength. 10. Factors of Organisational Culture The CCC boasts a gardening of being One Company, One Team, One Passion (Coca-Cola Company5 2012, Para. 1). This is shown in the way they describe their unique culture which includes nurturing talent and skill sets that will add to the companys value, encouraging socialisation and building relationships with colleagues to increase motivation in worker and foresting creativity (Coca-Cola Company5, 2012, Para. -4). The values that the CCC and Muhtar Kent have put in pl ace to create the organisations culture for their employees as a guide of how to behave include Leadership, collaboration, integrity, accountability, passion, diversity and quality (Coca-Cola Company5 2012, Para. 2). 11. Managing Change Diversity 11. 1 Organisational Change CCC has recently announced changes to the Operating Structure and Senior Leadership Appointments as of January 1, 2013. Instead organise around three prominent businesses Coca-Cola International, Coca-Cola Americas and Bottling Investments Group (Coca-Cola2, 2012, Para. ). The change is some other progress towards their 2020 vision for the future. This is an example of bottom-up change as it has been implemented gradually, with top line managers picking up more jobs, while other employees have been let go. The change can also be described as a mix of forced evolution, and dictatorial transformation. 11. 2 Diversity knowingness Program The CCC has developed a diversity educational program for all manager and em ployees. This program is designed to make people aware of diversity and drill them in what diversity means for the company.The program includes classroom and online courses that are classroom based, seminar with invited keynote speakers and many different diversity awareness based resources (Coca-Cola Company 2012, Para. 9). These resources available to the employees and managers at CCC are designed to educate them in influence to better understand other employees, customer, and suppliers and above all give the company a greater competitive advantage. 11. 3 Managing Diversity According to DiversityInc (2012, Para. 1) the CCC has remained in the top 50 companies for diversity during the last 10 years.Diversity is not just about policies and regulations it is a part of their culture. Coca-Cola (2012, Para. 2) explains how they intend to form an environment that provides all members equal access to information, progress and opportunity. It is crucial for them to operate in a diverse employment because of their long-term goal called 2020 Vision People. Coca-Cola2 (2012, Para 3) states that there are three pillars of diversety eucation * Diversity Training * Diversity Speakers Series * Diversity LibraryThey also offer supplier diversity training to make sure their associates comprehend how to obtain the power of the body of work by having suppliers that consist of minority- and women-owned businesses (Coca-Cola8, 2012, Para. 5). Diversity is in the life of the CCC and it is the way they are, how they work and comprehend the future (Coca-Cola3, 2012, Para. 1). 12. Organisational Ethics CCC has designed a Code of Business Conduct which guides the organization through the respectable minefield, including anti-corruption and anti-bribery codes (Code of Business Conduct, 2009, Para. 3-4).This code of conduct entails the expectation of accountability, honesty and integrity in all matters. Coca-Colas Ethics and Compliance Committee, made up of Board directors as wel l as other non-employee leadership, administer this code of conduct. Integrity is fundamental to CCC, along with other values. 13. Corporate Social Responsibility (CSR) CCC has taken a proactive approach to CSR. An example of this is the Little Red Schoolhouse Project in the Philippines opened by Coca Cola to provide children with a prefatory wide-eyed education (Coca-Cola Company Coca-Cola Little Red Schoolhouse, Para 1).This action also takes into account that in many areas where schools have been built there has been a high level child labor. The construction of these buildings helps children from being forced to work (Coca-Cola Company Addressing Global Issues Para 4). 14. Managing Leadership 14. 1 Transformational Leadership According to Ignatius (2011, Para. 3), Muhtar Kent has alter the CCC into a long term thinking company by implementing the 2020 Vision. They are establishing a compelling vision and it is important that everyone is following the steps because of their gl obal network and market.The high level of diversity forces the CCC to bring different individuals together and direct them to achieve the same goals, also to understand and consider in the same values and visions that the company requires. BTS (2012, Para. 2) informs that to endure transformational change they created Revenue Growth Management (RGM) to bring modern solutions to modern problems. 14. 2 Transactional Leadership According to Coca-Cola4 (2012, Para. 3) the company encourage their employees to be high preforming and they offer one of the best benefit packages in the world.They offer different developmental opportunities for their allies, one of which is the Coca-Cola University. This is a program for high performers to evolve, using the Peak Performance System (PPS, n/d, Para. 3). To extinguish undesired and reinforce desired behaviours the CCC have very strict employment rights policies. The workplace rights policy makes the employees feel more skillful and aware of th eir rights and also makes sure they are well aware on how to behave (Coca-Cola3, 2012, Para. 3) The success of our business depends on every employee in our global enterprise.We are committed to fostering open and inclusive workplaces that respect human and workplace rights, where all employees are treasured and animate to be the best they can be. Our Workplace Rights Policy reflects these values and our commitment to uphold workplace rights globally(Coca-Cola, 2012, Para. 1) 15. Managing Motivation 15. 1 Theories To illustrate how CCC caters to the needs of its employees the Alderfer ERG theory can be used (George, et al. 2012, pg. 234). CCC caters the existence needs of their employees by diversity awareness and education program which makes the employees feel uninjured and secure working in the workplace.CCC encourages open communication within the workplace through collaboration, which is one of the Coca-Cola core values (Coca-Cola Company Mission, Vision Values, 2012, Para. 2). CCC develop their employees, by providing training through the Coca-Cola University which gives employees the chance to gain an education about the marketplace to fulfil the growth need (Coca-Cola Company Benefits and rewards, 2012, Para 4). CCC also boasts that they have a benefits package that it highly regarded within the industry (Coca-Cola Company Benefits and Rewards, 2012, Para 7).This can be seen as a form of motivation. It states that this benefits package addresses the employees prefatory human and life changing needs which in turn develops intrinsic and extrinsic motivation (Coca-Cola Company Benefits and Rewards, 2012, Para 7). 16. Managing Decision Making 16. 1 Decision Making Within Coca-Cola Company Decisions for the company are made by the Board of Directors, and are considered alongside the interests of stakeholders, as well environmental concerns. umpteen of the decisions made are considered in relation to the companys 2020 Vision.An example of a decision ma de is the companys investment into the Indian drinking Market. CCC recognised the potential presented in India, and as a result began generating ideas as to how to maximise this opportunity. The company then assessed and chose investments, including creating jobs, supporting education and implementing the common Reduce, Reuse, recycle method in companionship to improve waste in the developing country. These $2 billion investments are set to not only provide confirming changes within India, but also to improve the companys repute and to achieve the 2020 goal. (Winzelberg, 2012, Para 4-68) 7. Conclusion There are many conclusions made out of this report after researching in a more deep way. Coca-Cola is obviously more than just the soft-drink that people buy when thirsty. It is a company that has great values and feel for visions. The CCC is pursuing a long term goal and is always looking for improvements. They are a proactive company because of their way of caring for the global nature and communities. The are always concerned about what the future will bring, which is why they have long term visions. It has been an instructive period to study the company and its structure.The Coca Cola CompanyThe Coca Cola Company is a global business that operates on a local anaesthetic scale, in every community where the company do business. There able to create a global reach with local focus because of the strength of Coca Cola System which comprises company and more than 250 bottling partners. The Coca Cola is not a single entity from legal or managerial perspective and the company does not own or control all of our bottling partners, while many view the company as simply Coca Cola the system operates through multiple local channels.The company manufactures and sells concentrates beverages bases and syrups to bottling operations, owns the brands and its responsible for consumers brand marketing initiative. A international corporation is any enterprise that undertake s inappropriate direct investment owns or controls income gather assets in more than one country, produces goods or services outside its country of origin or engages in international production.For example Coca-Cola Company is a transnational corporation because they have proven successful in their international operations and are one of the most recognized brands in the world. Coca-Cola has used each of the sextette strategies. Coca-Cola Company was very successful in implementing strategies regardless of the country. The company has 6 keys of strategies necessary for firms to be successful when expanding globally. Differentiation dodge is delineate as a marketing technique used by a manufacturer to establish a strong identity in a specific market. It also may be referred to as segmentation strategy.Using this strategy, a manufacturer will introduce different varieties of the same basic product under the same have into a particular product category and thus cover the range of products available in that category. There are several ways a firm can differentiate its products. We focused on two aspects of this brand and cost leadership. The American Marketing Association defines a brand as a name, term, sign, attribute or design, or a combination of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of other sellers.The objectives of successful branding include delivering the message clearly, confirming your companys credibility, connecting to your target prospects emotionally, motivating the buyer, and establishing user loyalty. for example, a soda company that offers a regular soda, a aliment soda, a decaffeinated soda, and a diet-decaffeinated soda all under the same brand name is using a differentiation strategy. Each type of soda is enjoin at a different segment of the soda market, and the full line of products available will help to establish the companys name in the soda categor y.The bit strategy there used is International marketing strategy is an important part strategic planning and consequently should be an area, this strategy is a probatory factor in the performance of a global company because an effective marketing strategy for international Companies can represent a competitive advantage and therefore global executives need to recognize the importance level regardless if a global or customized marketing strategy is practiced. Furthermore, the marketing mix touch markets abroad the most should be studied to comprehend how foreign markets function with different marketing strategies.International marketing strategy can be defined in many ways. International marketing strategy is the manner in which an organization performs based on a predetermined set of activities in order to plan, promote, price and distribute a good or service for a profit to consumers in various locations. Global vs Marketing Strategy when discussing international marketing it is important to point out the difference that may exist between international and global marketing. Global marketing can be characterized by an boilersuit outlook of the market as a whole where there is a standardized manner to sell a product or service in all places.Standardization as a form of marketing strategy refers to the similarity of a set of practices implemented in the home and other foreign markets. Standardization strategys main elements are political legal, economic, competitive, cultural, and consumer, environments. Also, the same research states that this strategy is most likely to be implemented if there are similarities in the elements of the home and foreign country another concept that a firm with a strong level of standardization enjoys a high level of control within the organization. This control is the level of decision making executed by the home office.At the same time, when standardization applies, global image and product offering are two strong factors a f irm seems to rely on. Conversely, international marketing relates more to different target markets and their differences rather than looking at it as one single market and foresees the possibility to implement a localization strategy rather than standardization, as the global marketing would pursue. Moreover, in order to understand the role of international strategy in a companys success, it is also important to understand the role culture has in the strategy development.Distribution is the course, physical path or legal title that goods take between production and consumption. In international marketing, a company must decide on the method of distribution among countries as well as the method within the country where final sale occurs (Daniels 2009). Choosing distributors and channels is the first step of distribution in foreign countries. When a company enters a new country it is usually economical for a company to rely on external distributors.It is important to select a distribu tor with good connections are particularly important because the distributors with good connections get a lot of information and relationship of the market and customers in the foreign country. When pursuing international business, companies must choose an international operating mode to fulfill their objectives and carry out their strategies, strategies towards vertical integration have been loose to shifting fashions. For most of the twentieth century the prevailing wisdom was that vertical integration was generally beneficial because it allowed superior coordination and reduced risk.During the past 25 years there has been a profound change of opinion outsourcing, it is claimed, enhances flexibility and allows firms to concentrate on those activities where they possess superior capabilities. Moreover, many of the coordination benefits associated with vertical integration can be achieved through collaboration between vertically related companies. A firm may choose to operate globa lly either through equity arrangements or through non-equity arrangements Coca-Cola has successfully adopted both of the arrangements the Coca Cola Company used forward vertical integration to move a step impendent to their consumers.Forward vertical integration refers to a management style of involves a form of vertical integration whereby activities are expanded to include control of the direct distribution of its products. A exchange cow is defined as a business, product or asset that, once acquired and paid off, will produce tenacious change in flow over its lifespan Companies in this category require very little maintenance and bring in a steady cash flow for the company over a long period of time. One benefit of being a cash cow ompany, or having a cash cow product, is that the company can invest the profits into other branches of the business, making acquisitions to grow the company, or giving back to shareholders in the form of dividends. Coca-Cola is considered a cash cow because of their high market share and relatively low market growth. They arent growing as much anymore in the market because they have been around for 125 years. Also in the political activities Coca Cola Company is subjected to strict regulations since its products come under food category.However few changes in law are expected to impact Coca Cola following are some such factors like the issue of negative impact of Coca Cola manufacturing plants on environment has been highlighted in many countries, laws for environment protection and stringent regulations in this regard can impact the production process, government change, civilised unrest, military take over and other disturbances in a country can affect sales and operation. The Coca-Cola Company is incorporated in the United States, the U. S. contrary Corrupt Practices Act, which prohibits bribes to officials of non-U. S. overnments, applies to all employees around the world. Consult Company legal counsel about additiona l local laws that may be applicable. The Coca Cola Company encourages personal participation in the political process in a manner consistent with all relevant laws and Company guidelines. Political contributions by the Company must be, made in accordance with local law approved in accordance with the Delegation of Authority and properly recorded. Detailed information on U. S. trade restrictions that may be in effect at any given time are posted on the Ethics Compliance intranet site.The Company must comply with all applicable trade restrictions and boycotts imposed by the U. S. government. Such restrictions prohibit the Company from engaging in certain business activities in specified countries, and with specified individuals and entities. These restrictions include, for example, prohibitions on interaction with identified terrorist organizations or narcotics traffickers. Sanctions for noncompliance can be severe, including fines and imprisonment for responsible individuals, and th e Company may be banned from further participation in certain trade.The Company also must abide by U. S. anti-boycott laws that prohibit companies from participating in any international boycott not sanctioned by the U. S. government. The Coca-Cola Company competes fairly, and complies with all applicable competition laws around the world. These laws often are complex, and vary considerably from country to country both in the scope of their coverage and their geographic reach. Conduct permissible in one country may be unlawful in another. Penalties for violation can be severe.Bibliographywww.thecocacolacompany.com www.strategiesforglobalization.com www.organizational theory.com www.thejournalofinternationalmarketing.com 9(4) 59-81 BennettBlythe 2002 p.6 Daniels 2009The Coca Cola CompanyThe Coca-Cola Company MGT-100 Joanne Rupe Subject MGT 100 Word Count 3291 Due Date 27. 11. 2012 Table of Contents 1. Introduction5 2. Mintzberg Roles6 2. 1 Entrepreneur6 2. 2 Leader6 2. 3 Figurehead6 3. Henri Fayol Principles7 3. 1 Initiative7 3. 2 Equity7 3. 3 Unity of Direction7 4. Weber Principles8 4. 1 Division of Labour8 4. 2 Promotion and Selection based on Merit8 5. Building Blocks of Competitive Advantage9 5. 1 Efficiency9 5. 2 Effectiveness9 5. 3 Performance and Quality9 5. 4 Innovation10 5. 5 Customer Service10 6. Management Science Theory11 6. 1 Total Quality Management11 . 2 Quantitative Management11 6. 3 Operations Management12 6. 4 Management Information System12 7. Organisation Structure13 8. Barriers to Entry & Competition14 9. Organizational Environment14 9. 1 Social Variables14 9. 3 Communities and Governments14 9. 4 Competitors15 9. 5 CEO15 9. 6 S. W. O. T Analysis15 10. Factors of Organisational Culture16 11. Managing Change & Diversity16 11. 1 Organisational Change16 11. 2 Diversity Awareness Program16 11. 3 Managing Diversity17 12. Organisational Ethics17 13. Corporate Social Responsibility (CSR)17 14. Managing Leadership18 4. 1 Transformational Leadershi p18 14. 2 Transactional Leadership18 15. Managing Motivation19 15. 1 Theories19 16. Managing Decision Making19 16. 1 Decision Making Within Coca-Cola Company19 17. Conclusion20 18. References21 1. Introduction Coca-Cola is one of the most known and used beverages throughout the world. The brand is consumed by daily basis in over 200 countries. However not everyone is aware of what the company stands for and how it functions. This report will explain how the company operates and how they follow the different managerial steps to achieve their goals.It will also inform which type of structure they use to remain successful. 2. Mintzberg Roles 2. 1 Entrepreneur Asa Candler tasted, bought and decided to market Coca-Cola as a soft drink instead of a headache tonic (Bellis, n/d, Para. 3). Not only did he change the way they advertised and sold the product, according to Gunderson (2009, Para. 1) Asa Candler made the CCC grow into a global giant thanks to his great marketing skills using cele berty endorsments, free samples to pharmacists & costumers and the way they guarded their secret formula. 2. 2 LeaderThe leader role is shared between the 17 boards of Directors in the Coca-Cola Company, although the Chairman of the board and CEO Muhtar Kent are shown as a front figure and role model (Coca-Cola1, 2012, Para. 3). As found in Coca-Cola1 (2012, Para. 2) the company sees Muhtar Kent as a leader that will lead them into the new century thanks to a firm commitment to both the values and spirit of the worlds greatest brand. 2. 3 Figurehead Coca-Cola1 (2012, Para. 2) gives the impression that Muhtar Kent is seen both as a leader and a figurehead for the corporation.He both leads the company in to a brighter future and the rest of the employees look at him for inspiration and help. Because he is the chairman of the board and the CEO he gives a feeling of inspiration, legal and ceremonial obligations. 3. Henri Fayol Principles 3. 1 Initiative According to Coca-Cola2 (2012, P ara. 2) the CCC frequently has an open dialog with their employees about what is new right now. During these discussions the CCC asks about what consumers like/dislike, what distributors think, how improvement can be made, and if theyre losing market space against competitors.By having these sorts of meetings Coca Cola always motivates employees to be a part of the company, to take initiative and speak up. It also teaches employees to be creative and help the company grow. 3. 2 Equity As stated in Coca-Cola3 (2012, Para. 1) they are dedicated to maintain very important principles regarding International Human Workplace Rights everywhere they do business. As of 2005 Coca-Cola3 (2012, Para. 2) they began working with the former UN Special Representative for Business and Human Rights and professor John Ruggie to develop principles for a framework in respecting human rights in a business context. . 3 Unity of Direction The CCC explains global changes and aims to thrive as a business ov er the next ten years, looking forward and adapting to the changes (Coca-Cola4, 2012, Para. 1). Their mission is explained in Coca-Cola4 (2012, Para. 2) and points out three special goals To refresh the world, to inspire moments of optimism and happiness and to create value and make a difference. The vision of the CCC is something that is taken very seriously. In Coca-Cola4 (2012, Para. 3) it is clearly described what the company think it should accomplish to be able to substain quality growth. * 4.Weber Principles 4. 1 Division of Labour CCCs management is divided into three main leadership factions Board of Directors, Operations Leadership and Senior Functional Leadership (Coca-Cola1, 2012, Para 3-5). Under these Leadership roles are middle and bottom line management, as well as employees in areas including Supply Chain Function, Manufacturing, Technical Function, Marketing, Sales Account Management, Customer and Commercial Leaders, Business Management, Finance, Public Affairs C ommunications, Human Resources, Legal, IT, Business Administrative Services and Aviation. Journey Staff, 2012, p. 1) 4. 2 Promotion and Selection based on Merit Within the aforementioned career areas CCC provides opportunities and support for employees through Individual Development Plans. This is made up of on the job experience (70%), exposure to case studies, role models and mentoring (20%) and attending courses (10%). Combined, CCC aims to focus and develop on the skills and competencies that are needed and beneficial within the company, as well as with other career opportunities. (Coca-Cola? , 2012, Para. 1) 5. Building Blocks of Competitive Advantage . 1 Efficiency The CCC is efficient in the way they distribute because they only produce the syrup concentrate, according to Love (2011, Para. 2). The concentrate is sold to the bottlers all over the world and it is the bottlers who has to finish the product by adding water and sugar. It is a good way of keeping the costs down, b ecause there is no expenses putting the syrup into cans or bottles and there is no usage of water or sweeteners. This also simplifies their job to keep the formula of coke as a secret (Coca-Cola5, 2011, Para. 6) 5. Effectiveness There is one major disadvantage by only producing the syrup, which is that the drink tastes different all over the world. Huffington (2012, Para. 2) explains that each country has their own filtered water and uses different types and amounts of sugar. However the secret formula prevents other competitors from copying their recipe, which is an effective way by only producing the concentrate. The way CCC provides different volumes is an effective way of reaching out to more and diverse customers. 5. 3 Performance and QualityThe company are working towards the high expectations through their operating requirement group called KORE (Coca-Cola6, 2012, Para. 1-3). The most important effort in this program is done by outlining strong regulations, policies, programs and specifications to lead all operations with accuracy. The key is constant monitoring and clear communication while reporting new statistics to the top managers. 5. 4 Innovation The CCC is always trying to follow the global trends and adapt to customer needs by creating the right beverage that suits different groups. Coca-Cola (2011, Para. ) informs that they created low calorie drinks such as Cola Zero and Cola Light to alure both genders in separate approach. They create health drinks to provide the new generation and athletes with what they want. It is not just about making carbonated soft-drinks anymore, they are following the steps taken by human nature to meet the new standards of life. 5. 5 Customer Service The CCC has many employees to keep track on and Antenna (Para. 1) explains how the the company are increasing their distribution and deliveries of beverages by effective management.The company use (AMP) Antenna Mobility Platform to use the field employees as human mobil e offices to keep them cohesive, prepared and efficient. This method allows the company to accomplish real-time responsiveness to customers and high levels of workforce productivity, according to Antenna (Para. 2). The result of it is also that both managers and employees improve their communication and collabotation as they can react quicker to changes that occur. 6. Management Science Theory 6. 1 Total Quality Management According to Coca-Cola6 (2012, Para. 4) KORE guarantees the consistency of their business quality.They are accurate in following terms and conditions made by the different departments. They use strict rules and policies to monitor performance and to prevent inaccuracies within manufacturing. KORE arrange meetings with staff members to discuss questions and matters that concerns requirements and feedback to increase quality. Coca-Cola (20126, Para. 5) explains that the information is always available for the whole department to find out the goals, process, work ins tructions and worksheets related to the specific area of members. 6. 2 Quantitative Management In Figure 1 Stephen (2009) shows where the highest consumptions are made.This quantitative information helps the company to work harder in specific areas where the brand is weak. Figure 1 Worldwide Coca-Cola Consumption Figure 2 Coke or Pepsi? In Figure 2 Y-N (2008) are giving the information telling the company of what sort of beverage is most common in a specific country. This enables the company to analyse the competitors and how the CCC can grow in the market. 6. 3 Operations Management The CCC makes sure their interns and potential employees finishes an intership program called SCOM (Supply Chain Operations Management), (Coke-Consolidated, Para. 2).SCOM gives them the education and experience to master manufacturing and production. Also to learn about supply chain planning, transport, delivery, sales and warehouse management. It is about integrating them with the ideas and processes . The Coca-Cola Bottling Company Consolidated (CCBCC) explains about their concern of operation management At CCBCC, we strive to recruit the most talented, motivated people to continue to grow our outstanding team and develop into key members of our business to ensure that CCBCC will continue to lead the i1ndustry and set the bar for the rest of the beverage industry. (Coke-Consolidated, nd, Para. 4) 6. 4 Management Information System Case-Studies (2009, Para. 1) states that ISS (Information System Services) is their main department to monitor other informational groups such as CCBCC. The way of tracking files and archives is done by using EPM (Microsoft Office Enterprise Project Management) which is used as their informational technology. EPM makes CCBCC work and study their economics precisely and manage their recourses more efficiently in order to make decisions and complete goals in a reduced amount of time.They evaluate details like project costs, time, functions and efforts ( Case-Studies, 2009, Para. 2). This helps them to gather information to create solutions, discover benefits, and achieve goals in the different criterias. 7. Organisation Structure CCC uses both the mechanistic view of the contingency theory within the factory environment and an open systems approach within their sales department. Business, marketing and sales strategies are decided by the management and then carried out by the employees.From the managers under Muhtar Kent comes the instructions and strategies that then is fed down into the supervisors and then to the employees. Coca-Cola introduced, the Plant Bottle, (Coca-Cola Company Plant Bottle Benefits, 2012, Para 1). The introduction of this product was a decision made by the board, later carried out under the supervision of managers and finally sold by employees and sales people for Coca-Cola. This is an example of a hierarchical structure which is typical of the mechanistic structure.An Open System approach is used for marke ting and sales within CCC. CCC needs to be able to use the raw materials and input from the external environment to produce goods and services that impact the external environment (George et al, 2012, p54). After the Tohoku Earthquake 2011, Japan had to reduce power usage. With one vending machine for every 25 people, Japan saved over 10 million kilo watts of energy by turning them off (Coca-Cola-Company, 2012, Para 5). CCC created a vending machine called the Impossible Vending Machine that uses half the energy than the others.This gives them a competitive advantage over other vending machine companies within Japan (Coca-Cola-Company, 2012, Para 9). 8. Barriers to Entry Competition Due to Coca-Colas success in the industry, strong entry for new competitors is quite limited. The company has such broad market exposure, with products being sold in over 200 countries (Coca-Cola, 2012), that most new companies would not have any kind of effect on market trends. Competition with CCC res ts primarily in brands already in the market such as Schweppes and Nestle.For new brands entering the market economies of scale are large, especially due to the fact that CCC experiences small economies of scale. The risks for new or existing companies to create or expand their products are high. With CCCs prominence and brand recognition it is their biggest asset. As a result, it would take a great deal of time or money to enter the beverage market successfully, and possibly longer still for adequate brand recognition. 9. Organizational Environment 9. 1 Social Variables People are getting concerned about their health.The population whom are reaching a higher age will decrease their amount of carbonated drinks. Meanwhile there are people who are only interested in their own wellness and fitness. Coca-Cola (2010, Para. 1) explains how they are strongly aiming towards an active and healthy lifestyle by offering other soft drinks, such as Juice and PowerAde. They enlighten the customer s to be more active by exercising more. 9. 2 Political Legal According to Grynbaum (2012, Para. 1) the New York City Board of Health approved a ban on large sized sodas from being sold at restaurants, cinemas and street carts.This means that the amount of Coca-Cola bottles larger than 16oz (47cl) is going to decrease in sales. 9. 3 Communities and Governments The governments want to keep the world green and the CCC are applying this request by using their 2020 Vision (Coca-Cola2, 2012, Para 1). The company are taking responsibility towards the global environment in the way of replenishing water and manufacturing environmentally friendly bottles (Coca-Cola7, n/d, Para. 1). This is a way of helping communities which are in great need of water. 9. 4 CompetitorsThe competitors are forced to be innovative because of CCCs large market share. CCC has to keep being innovative and release new additions to their portfolio. This as an measure to prevent loss of marketshare. 9. 5 CEO The bigge st internal influence in the CCC comes within the CEO, Muhtar Kent. Everything that has to do with future ideas and projects originates from him. Ignatius (2011, Para. 1) informs how Mr Kent is keen to meet the future global demands and how important it is for him to impact the CCC by applying the vision into every single member.Mr Kent controls the attitude, values and foundations of how the CCC should behave as an organisation not just towards the customers, but towards the global changing environment. 9. 6 S. W. O. T Analysis * Social Variables Threat People will stop drinking Coca-Cola at a certain age which results in decreased revenue. The CCC is forced to create new products to adapt to the change in environment. * Political Legal Threat This is a direct threat and limits the sales on larger soft drinks. The volume of Coca-Cola sold will decrease. The customers can no longer chose drinks bigger than 16oz. Communities and Governments Opportunity The way the company is bein g responsible and helpful towards the environment gives them goodwill and an advantage if certain legal laws would appear on environmental behaviour. Instead of being forced to change, they set the example on how to behave. * Competitors Threat Pepsis innovative thinking puts pressure on the CCC. If a competitor creates a product that responds to customer needs it will give them competitive advantages. The CCC might lose market share as a result. * CEO Strength The role of a CEO could be a great weakness.However Muhtar Kents way of innovative thinking and leadership qualities brings confidence and inspiration towards shareholders, employees and customers. Mr Kent as a CEO is a great strength. 10. Factors of Organisational Culture The CCC boasts a culture of being One Company, One Team, One Passion (Coca-Cola Company5 2012, Para. 1). This is shown in the way they describe their unique culture which includes nurturing talent and skill sets that will add to the companys value, encour aging socialisation and building relationships with colleagues to increase motivation in worker and foresting creativity (Coca-Cola Company5, 2012, Para. -4). The values that the CCC and Muhtar Kent have put in place to create the organisations culture for their employees as a guide of how to behave include Leadership, collaboration, integrity, accountability, passion, diversity and quality (Coca-Cola Company5 2012, Para. 2). 11. Managing Change Diversity 11. 1 Organisational Change CCC has recently announced changes to the Operating Structure and Senior Leadership Appointments as of January 1, 2013. Instead organise around three prominent businesses Coca-Cola International, Coca-Cola Americas and Bottling Investments Group (Coca-Cola2, 2012, Para. ). The change is another progress towards their 2020 vision for the future. This is an example of bottom-up change as it has been implemented gradually, with top line managers picking up more jobs, while other employees have been let go. The change can also be described as a mix of forced evolution, and dictatorial transformation. 11. 2 Diversity Awareness Program The CCC has developed a diversity educational program for all manager and employees. This program is designed to make people aware of diversity and educate them in what diversity means for the company.The program includes classroom and online courses that are classroom based, seminar with invited keynote speakers and many different diversity awareness based resources (Coca-Cola Company 2012, Para. 9). These resources available to the employees and managers at CCC are designed to educate them in order to better understand other employees, customer, and suppliers and above all give the company a greater competitive advantage. 11. 3 Managing Diversity According to DiversityInc (2012, Para. 1) the CCC has remained in the top 50 companies for diversity during the last 10 years.Diversity is not just about policies and regulations it is a part of their culture. Coca-Cola (2012, Para. 2) explains how they intend to form an environment that provides all members equal access to information, progress and opportunity. It is crucial for them to operate in a diverse workplace because of their long-term goal called 2020 Vision People. Coca-Cola2 (2012, Para 3) states that there are three pillars of diversety eucation * Diversity Training * Diversity Speakers Series * Diversity LibraryThey also offer supplier diversity training to make sure their associates comprehend how to obtain the power of the workplace by having suppliers that consist of minority- and women-owned businesses (Coca-Cola8, 2012, Para. 5). Diversity is in the heart of the CCC and it is the way they are, how they work and comprehend the future (Coca-Cola3, 2012, Para. 1). 12. Organisational Ethics CCC has designed a Code of Business Conduct which guides the organization through the ethical minefield, including anti-corruption and anti-bribery codes (Code of Business Conduct, 2009, Para. 3-4).This code of conduct entails the expectation of accountability, honesty and integrity in all matters. Coca-Colas Ethics and Compliance Committee, made up of Board directors as well as other non-employee leadership, administer this code of conduct. Integrity is fundamental to CCC, along with other values. 13. Corporate Social Responsibility (CSR) CCC has taken a proactive approach to CSR. An example of this is the Little Red Schoolhouse Project in the Philippines opened by Coca Cola to provide children with a basic elementary education (Coca-Cola Company Coca-Cola Little Red Schoolhouse, Para 1).This action also takes into account that in many areas where schools have been built there has been a high level child labor. The construction of these buildings helps children from being forced to work (Coca-Cola Company Addressing Global Issues Para 4). 14. Managing Leadership 14. 1 Transformational Leadership According to Ignatius (2011, Para. 3), Muhtar Kent has transformed th e CCC into a long term thinking company by implementing the 2020 Vision. They are establishing a compelling vision and it is important that everyone is following the steps because of their global network and market.The high level of diversity forces the CCC to bring different individuals together and direct them to achieve the same goals, also to understand and believe in the same values and visions that the company requires. BTS (2012, Para. 2) informs that to endure transformational change they created Revenue Growth Management (RGM) to bring modern solutions to modern problems. 14. 2 Transactional Leadership According to Coca-Cola4 (2012, Para. 3) the company encourage their employees to be high preforming and they offer one of the best benefit packages in the world.They offer different developmental opportunities for their allies, one of which is the Coca-Cola University. This is a program for high performers to evolve, using the Peak Performance System (PPS, n/d, Para. 3). To e xtinguish undesired and reinforce desired behaviours the CCC have very strict workplace rights policies. The workplace rights policy makes the employees feel more secure and aware of their rights and also makes sure they are well aware on how to behave (Coca-Cola3, 2012, Para. 3) The success of our business depends on every employee in our global enterprise.We are committed to fostering open and inclusive workplaces that respect human and workplace rights, where all employees are valued and inspired to be the best they can be. Our Workplace Rights Policy reflects these values and our commitment to uphold workplace rights globally(Coca-Cola, 2012, Para. 1) 15. Managing Motivation 15. 1 Theories To illustrate how CCC caters to the needs of its employees the Alderfer ERG theory can be used (George, et al. 2012, pg. 234). CCC caters the existence needs of their employees by diversity awareness and education program which makes the employees feel safe and secure working in the workplace. CCC encourages open communication within the workplace through collaboration, which is one of the Coca-Cola core values (Coca-Cola Company Mission, Vision Values, 2012, Para. 2). CCC develop their employees, by providing training through the Coca-Cola University which gives employees the chance to gain an education about the marketplace to fulfil the growth need (Coca-Cola Company Benefits and rewards, 2012, Para 4). CCC also boasts that they have a benefits package that it highly regarded within the industry (Coca-Cola Company Benefits and Rewards, 2012, Para 7).This can be seen as a form of motivation. It states that this benefits package addresses the employees basic human and life changing needs which in turn develops intrinsic and extrinsic motivation (Coca-Cola Company Benefits and Rewards, 2012, Para 7). 16. Managing Decision Making 16. 1 Decision Making Within Coca-Cola Company Decisions for the company are made by the Board of Directors, and are considered alongside the in terests of stakeholders, as well environmental concerns. Many of the decisions made are considered in relation to the companys 2020 Vision.An example of a decision made is the companys investment into the Indian Beverage Market. CCC recognised the potential presented in India, and as a result began generating ideas as to how to maximise this opportunity. The company then assessed and chose investments, including creating jobs, supporting education and implementing the common Reduce, Reuse, Recycle method in order to improve waste in the developing country. These $2 billion investments are set to not only provide positive changes within India, but also to improve the companys repute and to achieve the 2020 goal. (Winzelberg, 2012, Para 4-68) 7. Conclusion There are many conclusions made out of this report after researching in a more deep way. Coca-Cola is obviously more than just the soft-drink that people buy when thirsty. It is a company that has great values and caring visions. Th e CCC is pursuing a long term goal and is always looking for improvements. They are a proactive company because of their way of caring for the global nature and communities. The are always concerned about what the future will bring, which is why they have long term visions. It has been an instructive period to study the company and its structure.