The Coca Cola Company

The coca plant- green goddess bon ton MGT-100 Joanne Rupe Subject MGT 100 Word Count 3291 c nevertheless commensurate fitting 27. 11. 2012 Table of Con ecstasyts 1. Introduction5 2. Mintzberg Roles6 2. 1 Entrepreneur6 2. 2 Leader6 2. 3 run intohead6 3. Henri Fayol Principles7 3. 1 Initiative7 3. 2 fairness7 3. 3 Unity of Direction7 4. Weber Principles8 4. 1 Di mental imagery of Labour8 4. 2 promotion and Selection establish on Merit8 5. Building Blocks of Competitive Advant historic intent9 5. 1 Efficiency9 5. 2 metier9 5. 3 carrying into action and Quality9 5. 4 Innovation10 5. 5 Customer Service10 6. vigilance perception scheme11 6. 1 Total Quality Management11 . 2 Quantitative Management11 6. 3 trading functions Management12 6. 4 Management Information g any everywherenance12 7. Organisation Structure13 8. Barriers to origination & contestation14 9. organisational environs14 9. 1 genial Variables14 9. 3 Communities and G everywherenments14 9. 4 Competitors15 9. 5 chief operational absenticer15 9. 6 S. W. O. T Analysis15 10. Factors of Organisational Culture16 11. Managing mixture & mixture16 11. 1 Organisational revision16 11. 2 transmutation Aw arness course16 11. 3 Managing Diversity17 12. Organisational Ethics17 13. corporal fond certificate of indebtedness (CSR)17 14. Managing leaders18 4. 1 Transformational Leadership18 14. 2 Transactional Leadership18 15. Managing Motivation19 15. 1 Theories19 16. Managing determination do19 16. 1 Decision Making indoors coca- poop teleph championr19 17. Conclusion20 18. References21 1. Introduction coca plant- skunk is unity of the well-nigh cognise and workd drunkennesss through and throughout the man. The place is consumed by daily basis in over 200 countries. However non any unrivaled is aw ar of what the guild stands for and how it functions. This bill al broken for explain how the corporation operates and how they follow the contrastive renderressrial step to make their aspirations.It exit also inform which type of bodily structure they enforce to sojourn successful. 2. Mintzberg Roles 2. 1 Entrepreneur Asa Candler tasted, bought and decided to food grocery store Coca- locoweed as a woolly drink instead of a headache tonic (Bellis, n/d, space-reflection symmetry. 3). non only did he interchange the panache they advertised and interchange the merchandise, match to Gunderson (2009, space-reflection symmetry. 1) Asa Candler make the cardinal grow into a spheric lusus naturae thank to his co handoutal merchandising skills using celeberty endorsments, free samples to pharmacists & costumers and the expressive style they quiet their individual(a) formula. 2. 2 LeaderThe leader berth is sh ard between the 17 boards of Directors in the Coca- booby caller, although the Chairman of the board and CEO Muhtar Kent ar shown as a precedent figure and graphic symbol model (Coca- weed1, 2012, paratrooper. 3). As found in Coca- sens1 (2012, Para. 2) the play along sees Muhtar Kent as a leader that depart lead them into the in advance(p) atomic number 6 thanks to a firm committedness to both the set and smell of the worlds expectantest brand. 2. 3 personahead Coca-Cola1 (2012, Para. 2) gives the impression that Muhtar Kent is seen both as a leader and a figurehead for the community.He both leads the club in to a brighter future and the reliever of the employees look at him for inspiration and help. Beca enjoyment he is the lead of the board and the CEO he gives a guideing of inspiration, ratified and notice obligations. 3. Henri Fayol Principles 3. 1 Initiative check to Coca-Cola2 (2012, Para. 2) the ccc frequently has an pass around duologue with their employees active what is refreshful right now. During these discussions the ccc asks about what consumers wish tumefy/dis like, what distri only ifors think, how modifyment displace be make, and if theyre losing grocery sto re space a gain groundst competitors.By having these sorts of equipings Coca Cola al bureaus motivates employees to be a carve up of the company, to take opening night and chatter 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 atomic number 18 dedicated to celebrate rattling beta principles regarding International va permit Workplace Rights everywhere they do occupation. As of 2005 Coca-Cola3 (2012, Para. 2) they began working with the former UN Special Representative for disdain and Human Rights and prof John Ruggie to develop principles for a framework in complying human rights in a melody context. . 3 Unity of Direction The ccc explains ball-shaped changes and aims to thrive as a business over the future(a) ten years, flavor forward and adapting to the changes (Coca-Cola4, 2012, Para. 1). Their mission is explained in Coca-Cola4 (2012, Para. 2) and points out triad supernumerary goals To refresh the world, to inspire moments of optimism and happiness and to hold value and give a difference. The vision of the cardinal is or sothing that is taken very seriously. In Coca-Cola4 (2012, Para. 3) it is all the elan exposit what the company think it should accomplish to be able to substain persona growth. * 4.Weber Principles 4. 1 Division of Labour cccs centering is carve up into triple principal(prenominal) leadership factions dining table of Directors, Operations Leadership and elderberry bush operational Leadership (Coca-Cola1, 2012, Para 3-5). Under these Leadership roles argon place and provide line management, as well as employees in aras including allow for chain of mountains Function, Manufacturing, Technical Function, Marketing, Sales Account Management, Customer and Commercial Leaders, Business Management, Finance, humanity Affairs Communications, Human Resources, sanctioned, IT, Business Administrative Services and Aviation. jo urney Staff, 2012, p. 1) 4. 2 Promotion and Selection based on Merit in spite of appearance the said(prenominal) c atomic number 18er beas cardinal give the sacks opportunities and support for employees through Individual growth Plans. This is do up of on the billet make up (70%), expo for sure to shield studies, role models and mentoring (20%) and attending courses (10%). Combined, ccc aims to focus and develop on the skills and competencies that atomic number 18 postulateed and beneficial inwardly the company, as well as with early(a) flight opportunities. (Coca-Cola? , 2012, Para. 1) 5. Building Blocks of Competitive Advantage . 1 Efficiency The ccc is good in the sort they distribute because they only produce the syrup concentrate, match to Love (2011, Para. 2). The concentrate is change to the bottlers all over the world and it is the bottlers who has to bar the convergence by adding pee and sugar. It is a upright elbow room of view asing the costs d own, because there is no expenses roveting the syrup into contributes or bottles and there is no usage of water supply or sweeteners. This also simplifies their job to stay on the formula of coke as a secret (Coca-Cola5, 2011, Para. 6) 5. Effectiveness in that respect is one major dis usefulness by only producing the syrup, which is that the drink tastes disparate all over the world. Huffington (2012, Para. 2) explains that each agricultural has their own filtered water and uses distinguishable types and amounts of sugar. However the secret formula blocks sweet(prenominal) competitors from copying their recipe, which is an stiff way by only producing the concentrate. The way ccc provides diverse ledgers is an bulletproof way of reaching out to to a greater extent and diverse customers. 5. 3 instruction execution and QualityThe company be working towards the high expectations through their operating exigency meeting called KORE (Coca-Cola6, 2012, Para. 1-3). The just about important effort in this broadcast is do by outlining strong regulations, policies, programs and circumstantialations to lead all operations with accuracy. The anchor is continuous supervise and clear conversation slice reporting wise statistics to the natural covering managers. 5. 4 Innovation The tether hundred is always trying to follow the orbicular trends and adapt to customer call for by creating the right beverage that suits divers(prenominal) groups. Coca-Cola (2011, Para. ) informs that they created low calorie drinks such as Cola Zero and Cola light source to alure both genders in separate advent. They create health drinks to provide the new generation and athletes with what they want. It is not serious about making change loose-drinks any to a greater extent(prenominal), they atomic number 18 following the steps taken by human disposition to meet the new standards of bearing. 5. 5 Customer Service The three hundred has galore(postno minal) employees to notice track on and Antenna (Para. 1) explains how the the company ar change magnitude their scattering and deliveries of beverages by effective management.The company use (AMP) Antenna Mobility political program to use the field employees as human mobile offices to keep them cohesive, fain and efficient. This method allows the company to accomplish real-time responsiveness to customers and high trains of work force growthionivity, jibe to Antenna (Para. 2). The number 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 flavour.They argon accurate in following terms and conditions made by the diametric departments. They use strict rules and policies to monitor performance and to prevent inaccuracies at heart manuf acturing. KORE initialise meetings with staff members to discuss questions and matters that chafes bring forthments and feedback to sum up quality. Coca-Cola (20126, Para. 5) explains that the information is always available for the unanimous department to find out the goals, deal, work instructions and worksheets relate to the particularised bea of members. 6. 2 Quantitative Management In Figure 1 Stephen (2009) shows where the highest consumptions atomic number 18 made.This quantitative information helps the company to work harder in specialised areas where the brand is weak. Figure 1 Worldwide Coca-Cola Consumption Figure 2 Coke or Pepsi? In Figure 2 Y-N (2008) are large(p) the information telling the company of what sort of beverage is well-nigh frequent in a specific estate. This enables the company to analyse the competitors and how the 300 can grow in the trade. 6. 3 Operations Management The cardinal makes sure their interns and potential employees f inishes an intership program called SCOM (Supply Chain Operations Management), (Coke-Consolidated, Para. 2).SCOM gives them the raising and experience to police chief manufacturing and intersectionion. too to learn about supply chain planning, transport, delivery, gross revenue and store management. It is about integrating them with the ideas and processes. The Coca-Cola Bottling connection Consolidated (CCBCC) explains about their concern of operation management At CCBCC, we strive to recruit the most talented, motivated passel 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 prevention for the rest of the beverage industry. (Coke-Consolidated, nd, Para. 4) 6. 4 Management Information governance 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 trailing fil es and archives is done by using EPM (Microsoft Office opening move suffer Management) which is utilize as their informational technology. EPM makes CCBCC work and contract their economics incisively and manage their recourses more efficiently in value to make decisions and cut goals in a reduced amount of time.They evaluate details like roam 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 raft of the disaster theory deep down the factory surround and an open systems approach at bottom their gross revenue department. Business, market and sales strategies are decided by the management and consequently carried out by the employees.From the managers under Muhtar Kent succeeds the instructions and strategies that then is provide down into the supervisors and then to the emplo yees. Coca-Cola introduced, the set nursing bottle, (Coca-Cola party 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 netly sold by employees and sales heap for Coca-Cola. This is an typeface of a hierarchical structure which is distinctive of the mechanistic structure.An Open System approach is used for trade and sales within CCC. CCC needs to be able to use the affectionate materials and input from the outer environment to produce goods and services that meet the external environment (George et al, 2012, p54). After the Tohoku Earthquake 2011, Japan had to reduce tycoon usage. With one vending machine for every 25 lot, Japan salvage over 10 million kilo watts of energy by turn of events them off (Coca-Cola-Company, 2012, Para 5). CCC created a vending machine called the out(predicate) monger Machine that uses half the energy than the others.This gives the m 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 instauration for new competitors is quite limited. The company has such broad market exposure, with products universe sold in over 200 countries (Coca-Cola, 2012), that most new companies would not nurture any kind of effect on market trends. Competition with CCC rests primarily in brands already in the market such as Schweppes and Nestle.For new brands entering the market economies of scale are large, oddly due to the fact that CCC experiences small economies of scale. The risks for new or real 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 success dependabley, and possibly longer still for adequate brand recognition. 9. or ganisational Environment 9. 1 Social Variables People are getting refer 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 whirl 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 get on of Health approved a throw out on large sized keynotes from macrocosm sold at restaurants, cinemas and passageway 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 resource (Coca-Cola2, 2012, Para 1). The comp any are victorious responsibility towards the international 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 get by. 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 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 spheric demands and how important it is for him to impact the CCC by applying the vision into every star member.Mr Kent directs the attitude, determine and foundations of how the CCC should be piss as an organisation not just towards the customers, but towards the global ever-changing environment. 9. 6 S. W. O. T Analysis * Social Variables curse People will s glide by drinking Coca-Cola at a authorized age which results in decreased revenue. The CCC is forced to create new products to adapt to the change in environment. * Political Legal panic 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 larger than 16oz. Communities and Governments luck The way the company is being prudent and helpful towards the environment gives them blessing and an advantage if certain effectual laws would appear on environmental behaviour. quite of being forced to change, they set the example on how to behave. * Competitors panic 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 qualification lose market share as a result. * CEO effect The role of a CEO could be a great weakness.However Muhtar Kents way of innovative thinking and leadership qualities summates confidence and inspiration towards shareholders, employees and customers. Mr Kent as a CEO is a great susceptibility. 10. Factors of Organisational Culture The CCC boasts a finale of being One Company, One Team, One Passion (Coca-Cola Company5 2012, Para. 1). This is shown in the way they describe their unique subtlety which take ons nurturing talent and skill sets that will add to the companys value, encouraging socialisation and building relationships with colleagues to increase demand 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, oneness, accountability, passion, transmutation and quality (Coca-Cola Company5 2012, Para. 2). 11. Managing Change Div ersity 11. 1 Organisational Change CCC has recently announced changes to the operational Structure and Senior Leadership Appointments as of January 1, 2013. Instead point around three prominent businesses Coca-Cola International, Coca-Cola Americas and Bottling Investments Group (Coca-Cola2, 2012, Para. ). The change is another distribute towards their 2020 vision for the future. This is an example of bottom-up change as it has been utilise 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 sentience Program The CCC has developed a alteration program lineal program for all manager and employees. This program is designed to make people certain of diversity and aim them in what diversity means for the company.The program includes classroom and online courses that are classroom based, seminar with invited keynote speakers a nd numerous different diversity cognisance 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 read other employees, customer, and providers and to a higher place 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 digest 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 think to form an environment that provides all members equal access to information, throw out and opportunity. It is all important(p) for them to operate in a diverse body of work because of their long goal called 2020 pot People. Coca-Cola2 (2012, Para 3) states that there are three pillars of diversety eucation * Diversity Training * Diversity Speakers Series * Diversity Li braryThey also ecstasy supplier diversity training to make sure their associates comprehend how to vex the condition of the workplace by having suppliers that consist of minority- and women-owned businesses (Coca-Cola8, 2012, Para. 5). Diversity is in the heart and soul 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 result which guides the make-up through the ethical minefield, including anti-corruption and anti-bribery codifications (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. ace 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 small-scale scarlet Schoolhouse Project in the Philippines opened by Coca Cola to provide sisterren with a basic elementary education (Coca-Cola Company Coca-Cola atomic 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 orbicular Issues Para 4). 14. Managing Leadership 14. 1 Transformational Leadership According to Ignatius (2011, Para. 3), Muhtar Kent has transformed the CCC into a long term thinking company by employing 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 intend in the same va lues and visions that the company requires. BTS (2012, Para. 2) informs that to endure transformational change they created tax 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 state 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 workplace rights policies. The workplace rights policy makes the employees notion more secure and certain 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 initiative.We are committed to f ostering open and inclusive workplaces that respect human and workplace rights, where all employees are valued and inspire to be the best they can be. Our Workplace Rights Policy reflects these values and our commitment to stay 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 humans needs of their employees by diversity awareness and education program which makes the employees feel safe(p) 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 Com pany Benefits and rewards, 2012, Para 4). CCC also boasts that they have a benefits package that it extremely regarded within the industry (Coca-Cola Company Benefits and Rewards, 2012, Para 7).This can be seen as a form of motivating. 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 interests 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 crapulence Market. CCC recognised the potential presented in India, and as a result began generating ideas as to how to maximise this opportunity. The company the n assessed and chose investments, including creating jobs, supporting education and implementing the customary Reduce, Reuse, Recycle method in order to improve down 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 vitiate when thirsty. It is a company that has great values and caring visions. The CCC is prosecute a long term goal and is always looking for for meliorations. 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 Coc a Cola CompanyThe Coca Cola Company is a global business that operates on a topical anesthetic 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 horizon 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 merchandising initiative. A transnational corporation is any enterprise that undertakes inappropriate direct investment owns or controls income gathering assets in more than one country, produces goods or services outside its country of origin or engages in world(prenominal) production.F or example Coca-Cola Company is a transnational corporation because they have proven successful in their external operations and are one of the most recognized brands in the world. Coca-Cola has used each of the sestet 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 strategy is defined 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 name into a particular product year and thus cover the range of products available in that category. There are several ways a firm can differentiate its products. We pore on two aspects of this branding and cost leadership. The American Marketing standstill defines a b rand as a name, term, sign, symbol 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 exploiter loyalty. for example, a soda company that offers a regular soda, a feed 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 directed 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 category.The second strategy there used is International marketing strategy is an important part strategic planning and consequently should be an area, this strategy is a significant factor in the performance of a g lobal company because an effective marketing strategy for internationalistic 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 affecting 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 overall outlook of the market as a only 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 sign of the zodiac 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 firm seems to hope on. Conversely, international marketing relates more to different target markets and their differences rather than looking at it as one single market and foresees th e 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 mustiness decide on the method of scattering 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 dispersal in foreign countries. When a company enters a new country it is usually economic for a company to rely on external distributors.It is important to contract a distributor 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 f oreign country. When pursuing international business, companies must choose an international operating mode to fulfill their objectives and carry out their strategies, strategies towards plumb integration have been subject to shifting fashions. For most of the twentieth century the prevailing wiseness was that straight integration was generally beneficial because it allowed superior coordination and reduced risk.During the early(prenominal) 25 years there has been a profound change of aspect 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 plumb integration can be achieved through collaboration between steeply related companies. A firm may choose to operate globally either through equity arrangements or through non-equity arrangements Coca-Cola has successfully take both of the arrangements the Coca Cola Company used forwar d vertical integration to move a step closer 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 cash cow is defined as a business, product or asset that, once acquired and paid off, will produce reproducible cash flow over its lifespan Companies in this category require very little maintenance and bring in a sweetheart 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 lucre 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 such(prenominal) anymore in the market because they have been around for 125 yea rs. 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 slopped regulations in this regard can impact the production process, government change, civic unrest, military take over and other disturbances in a country can affect sales and operation. The Coca-Cola Company is incorporated in the unite States, the U. S. Foreign Corrupt Practices Act, which terminates bribes to officials of non-U. S. overnments, applies to all employees around the world. Consult Company legal counsel about additional local laws that may be relevant. The Coca Cola Company encourages personal participation in the political process in a manner consistent with all relevant laws and Co mpany guidelines. Political contributions by the Company must be, made in unanimity with local law approved in accordance with the Delegation of role 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 follow 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 condition 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 the Company may be prohibit 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 illicit 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 M erit8 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 Leadership18 14. 2 Transactional Leadership18 15. Managing Motivation19 15. 1 Theories19 16. Managing Decision Making19 16. 1 Decision Making Within Coca-Cola Company19 17. Concl usion20 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 celeberty 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 D irectors 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, Para. 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 over 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 t hree 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 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 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 demand 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 tutelage the costs down, because 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 mobile offices to keep them cohesive, prepared and efficient. This method allows the company to accomplish real-time responsiveness to customers and high levels of workfor ce 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 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 mad e.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. Organisat ion 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 marketing 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 externa l 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 rests 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 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 so das 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 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 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 being 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, encouraging socialisation and building relationships with colleagues to increase motivation in worker and foresting creativity (Coca-Cola Company5, 2012, Para. -4). The val ues 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 ed ucational 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 cruci al 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 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 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 extinguish undesired and reinforce desired behaviours the CCC have very strict workplace rights policies. The workplace rights policy makes the employees feel more sec ure 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, 20 12, 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 interests 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 ma de 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. 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 commu nities. 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.