This is why the company pushed towards decentralization in the nineties, and even more so recently. This paper focuses on the organizational structure of the coca cola company and its comparison with other types of organizational structure, defining the influence that the organizational functions and organizational design make on the organizational structure of the chosen company. The coca cola company should incorporate social networking in its organizational structure either by organizing trainings for its employees or by ensuring easy accessibility of intranet. Its the largest manufacturer, distributor and market of nonalcoholic beverage around the world as well as among the largest cooperation in the united states. The coca cola company 201 0 about the companys regional structure, it is hard to say whether the company should pursue a matrix structure or remain as a multidivisional structure. Cocacola decentralized its organizational structure by cutting half of the staff at its. Provide an overview of the coca cola company organization the cocacola company happens to recharge every person it touches.
The coca cola companys organizational structure has the characteristics of two models. Coca cola also uses this model under some supreme situations such as organizational disaster. The company has always demonstrated strong market orientation, making strategic decisions and taking action to attract, satisfy, and re. The cocacola company is an american multinational corporation, and manufacturer, retailer. Orgnisational theory or ot is the amalgamation of many theories and approaches to an organizational study. Coca cola decentralized its organizational structure by reducing the staff to the half at its atlantabased headquarters.
The coca cola company project analysis paul mburu business summary the coca cola company nyse symbol. This organisation chart is for illustrative purpose only and does not represent the legal structure of the group. Previously coca cola followed a centralized organizational structure with chain of command. Comparative analysis of cocacola company and pepsico. The threat of substitutes, however, is a very real threat. Thus coca cola bottling plant moved in europe and asia with the us army. Although the organization follows a particular structure, there can be departments and teams following some other organizational structure in exceptional cases.
An organisation must structure themselves accordingly to the size and nature of their markets. Cocacola org charts featuring cocacola executives, cocacola contact info, insider sales intelligence and sales leads. Cocacola did not perfectly align across these organizational components but came close to aligning under the type 2 category. Coca colas organizational development problem and recommendations 2204 words 9 pages introduction cocacola is the worlds biggest beverage company that manufacturers, retails, and markets nonalcoholic beverages. Coca cola femsa announced new organizational structure and new equity and debt profile. In pepsicos case, the organizational structure enables control over the expansive reach of the company around the world, considering significant differences among market. John, who recently celebrated 20 years in the coca. Cola system, joined coca coca beverages in september 1998 as region director.
Organizational analysis entails carrying out evaluation on the processes of a company as well as those employed to run such processes. The 5minute rule for letter non profit organization employees represent a company. The coca cola company structure is a combination of both the mechanistic and the organic model working together,the most area of concern n the coca cola company is on the responsiveness dawson and halpert,2009. Divisional organizational structure of coca cola company. Coca cola s organizational structure is based on geographic units, with product units subordinated. Cocacola organizational chart by elisabeth lechner on prezi.
The coca cola companys organizational structure consists of a board of directors, elected by the shareholders, that has final decisionmaking power in the running of the company. Coca cola is one of the worlds leading nonalcoholic soft drink manufacturers. The coca cola company is arguably the biggest manufacturer and marketer of soft drinks in the world. The organizational structure of the cocacola company kibin. Free essays on organizational structure for coca cola. This covers issues linked to structures, formalities and processes which are the major elements that drive change in the modern world carroll, 2006. Coca cola company opted for this type of structure since it caters for large organization with multiple goalsnah151. Revised organizational structure 28 august 2002 cocacola hbc. My case study involves analyzing organization structure of coca cola company which is a multinational corporation which produces. Ko is a beverage retailer, manufacturer and marketer of nonalcoholic beverage concentrates and syrups. Organizational structure of coca cola company papers. The coca cola companys structure is a hybrid of both mechanistic and organic models. According to the companys 2015 10k annual report, it has a single class.
Organizational analysis the cocacola company introduction. Its product portfolio consists of roughly more than 400 brands. Aug 28, 2002 john, who recently celebrated 20 years in the coca. The cocacola company more than a beverage company our company. They divide the functions, responsibilities and work to avoid overlap and waste while concentrating on the optimum business structure to. Organizational structure types bureaucratic structures. The organizational structure for cocacola is designed in such a way so as to suit the changing needs of the customers. It owns or license and market more than 500 nonalcoholic beverage brands, primarily sparkling beverages but also a variety of still beverages such as waters, enhanced waters, juices and juice drinks, readytodrink teas and coffees, and energy and sports drinks. Pdf on feb 1, 2019, naama al tunaiji and others published coca cola strategy project find. Coca cola company is a drink industry, which goes about as shapers, they.
What is the organizational structure of the cocacola. Over the past decade, coca cola has been experiencing a decline in sales due to increasing health and obesity concerns. Fundamentally, once a member of staff makes a donation, they could request their company also donates into precisely exactly the exact same nonprofit. Organizational components of the coca cola company. Primarily the company has a very tall hierarchy in place and subordinates that are then divided up by regions. May 09, 2016 organizational analysis the coca cola company published on may 9, 2016 organizational analysis entails carrying out evaluation on the processes of a company as well as those employed to run. Jun 07, 2019 the coca cola company is a delaware corporation with its headquarters in atlanta, meaning that its incorporated in delaware and registered as a foreign company in georgia. It also moved the regional chieftains closer to their local markets. Creatinganeffectiveorganisationalstructureacocacol business. When the coca cola company tend to bring nourishment, worth, happiness. Background of coca cola company cocacola company is the worlds largest beverage company with products that include cocacola, diet coke, sprite and fanta. Divisional structure makes it possible to create divisional heads who takes charge of all divisional functions such as production, purchase, operations, finance, marketing and sales.
Organizational structure the coca cola company has made a lot of changes in the last year with the structure of their company from top management to the employees at the bottom of line in terms of power in the company. Coca colas organisational behaviour mgt201 studocu. The cocacola company, american corporation founded in 1892 and today engaged primarily in the manufacture and sale of syrup and concentrate for coca cola coke, a sweetened carbonated beverage that is a cultural institution in the united states. Divisional form centralized functional departments bottling investments group big multibillion dollar bottling business owned by the company operations in 5 continents representing. Organizational structure of the cocacola company free download as word doc. Jan 15, 2020 the organizational chart of cocacola displays its 444 main executives including james quincey, john murphy and brian smith. Cocacola femsa announced new organizational structure and. Coca cola, form 10k, annual report, filing date feb 21, 2007 pdf. Weather an organisation be small or large the area of organisational structure and the division of labour within the organisations are extremely important and have been considered to be two of the major stepping stones to flawless business practice. The cocacola company 2010 this document contains the concepts of organizational theory explained with reference to the cocacola company.
Under the ceo of the company, there are various subordinates in the company who are entrusted with the duty of overall control. Short overview of coca cola coca cola is a carbonated soft drink sold in stores, restaurants, and vending machines all over the world. Members of senior management and a number of standing committees carry out the decisions of the board of directors. Mar 01, 2014 cocacola is tall in terms of organizational complexity. Coca cola is a global company that operates on a local scale. Cocacola india announces new organization structure new structure is in keeping with economic reforms that will make india a single national market gurgaon new delhi, january 19, 2017. While many view our company as simply cocacola, our system operates through. Jul 30, 2012 coca cola streamlines organizational structure 2 min read security personnel walks near a truck at pt coca cola amatil indonesias factory in cibitung, indonesias west java province, february 24. A organizational chart showing coca cola business structure. The coca cola company has a separate international division structure because its international staffs operate separately and in isolation from head office. It was born in atlanta, georgia, on may 8, 1886 was originated as soda fountain beverage sold for five cents a glass.
A study of change management in coca cola ukessays. Currently, the threat of new viable competitors in the carbonated soft drink industry is not very substantial. Cocacola has more than 700,000 system employees, including. Organizational structure of coca cola company the coca cola company realizes that it needs to be able to meet the ever changing demands of its customers. Cocacola is recognised as the worlds most valuable brand. Because of this, coca cola has come up with long term objectives.
The company also produces and sells other beverages. Cocacola is controlled through a vertical hierarchy, with decisionmaking authority residing with the companys upper management. Coca cola organisational structure and theories uk essays. Cocacola s divisional structure allows the organization to react to changes in the environment while still maintaining a level of stability. The process of decision making at coca cola company does not fit in its structure and also does not reflect its roadmap as outlined in the mission, vision and values. Cocacola organizational culture coca cola company 1. The basic plan of the coca cola company is very simple, concrete. What is the organizational culture at the cocacola. Organizational structure and organizational structure and. The organizational structure of coca cola is a decentralized organization of tasks. Cocacola streamlines organizational structure reuters. This paper performs a strategic analysis of the cocacola company, a leader in.
Coca cola adopts both mechanistic and organic models of organizational control and hence incorporates both modernist and post modernist perspectives in the organizational management. Cocacola organizational behavior organizational behavior can be termed as the systematic study as well as the careful application of knowledge of how people act in an organization hatch, 2006. The coca cola company has a complex form of organizational culture that involves control through a vertical hierarchy. Cocacola is dealing with this issue by acquiring and branching out to healthier drink. The challenge facing the coca cola company today is therefore to continue to build an organizational structure that will deliver a global and local strategy. Organizational theory a case of coca cola 282 downloads 10 pages 2,389 words add in library click this icon and make it bookmark in your library to refer it later. It has various divisions in all continents around the world with presidents that control each continental division. The upper management of the company has the final decisionmaking role while the company departments are required to implement the decisions. The coca cola company is a delaware corporation with its headquarters in atlanta, meaning that its incorporated in delaware and registered as a foreign company in georgia. The cocacola companys structure is a hybrid of both mechanistic and organic models.
A global and local strategy the coca cola company is the worlds largest beverage company and is the leading producer and marketer of soft drinks. It should also ensure that all the divisions have effectively opportunities in the companys decision making processes. This covers issues linked to structures, formalities and processes which are the major elements that drive change in the modern. This case study illustrates the way in which the company has built an organizational structure that is robust and yet also flexible enough to meet these particular requirements. The australian beverages team will now incorporate the australian parts of the alcohol and coffee portfolios, under the leadership of peter west. Relationship with its distributers another completiveadvantage, the structure of cocacola is ideal for itsdifferentiation strategy because they focus on market. The coca cola strategy and exchange name was procured in the.
Organizational behavior within coca cola using models and. Ko the coca cola company, a beverage company, engages in the manufacture, marketing, and sale of nonalcoholic beverages worldwide. The company is well known for its main product, coca cola, which was invented by. Coca cola organizational structure,management at coca cola focuses in adopting modern and postmodern perspectives in order to maintain the relation with business environment. Cocacolas organizational structure and human resource. Cocacola india today announced a new organization structure in keeping with economic reforms that have the potential to convert india into a single national market. The organization is more centralized, but there have been moves to change to decentralization in order to meet the everchanging needs and demands of consumers. Divisional organizational structure of coca cola company introduction an organization must design its structure wisely since it affects how business is carried out and eventually determining its success. The company also announced a revised organizational structure for the management team that will become effective from september 1, 2002, when the companys 26 countries will be managed by three region directors.
The coca cola company being a truly global organisation uses the design of division of work by location. It is a well known fact that coca cola corporation was a entrepreneurial venture started by one person who bought the formula from another firm and laid foundations of that beverages manufacturing firm. Cocacola org charts report by orgchartcity youtube. Learn more about the coca cola company and how were a leader in workplace safety, human rights and sustainability. My case study involves analyzing organization structure of coca cola company which is a multinational corporation which produces and distributes soft drinks. Coca cola matrix organization structure free essays.
Organizational model of coca cola the coca cola company realizes that it needs to be able to meet the ever changing demands of its customers. Cola system, joined cocacoca beverages in september 1998 as region director. What happens on the ground does not fit in its centralized structures. Organizational culture of coca cola company according to needle 2004, organizational culture is a representation of collective beliefs, values and principles of members of an organization. This covers issues linked to structures, formalities and processes which are the major elements that drive change in the modern world. The company is best known for its flagship product coca cola, invented by pharmacist john stith pemberton in 1886. Coca cola was established in 1886 in atlanta as a beverage company. Coca cola is a typical complex organization by having seven operative units in geographic areas around the world, six functional departments being responsible for different tasks and a diversified labor force from different nations. Organizational analysis the coca cola company by custom. The paper contains a detail analysis of organizational behavior discussing issues facing cutting age organizations on leadership behavior, organizational effectiveness, organizational structures and human resource management. When you take about cocacola, what is the first thing jump out from your mind. General and specific factors economic competition 4. The coca cola brand is globally valued and recognized. Organizational structure of the cocacola company scribd.
The coca cola company has the financial capacity to put at equilibrium standardization and mutual adjustment. Vertical expansion along the value chain organizational model hybrid structure mixing elements. Coca cola is a wellknown company in carbonated beverage industry, the company was established by atlanta pharmacist, dr. Is their brightly red color or their cool beautiful bottle. Jan 19, 2017 new structure is in keeping with economic reforms that will make india a single national market.
The illustration below shows the worldwide distribution of sales of. The coca cola company is the worlds largest beverage company. Coca cola company is the largest beverage company in the world. This is a study that can be based on individuals or at times groups. Before getting into the detailed analysis of coca cola and its relationship with organizational environment, we will first get the idea of organizational theory. It uses a decentralized system of management, which divided into two operating groups.
You can edit this organizational chart using creately diagramming tool and include in your reportpresentationwebsite. Coke has a strong leadership team being lead by ceo e. The basis of this model is economic assets with a managerial assimilation of money. Coca cola organizational behavior project report bohat ala. Pepsicos organizational structure analysis panmore institute.
Sep 08, 2018 a firms organizational structure defines the system and design of business components, and how these components interact to fulfill the firms mission and vision. Cocacola india announces new organization structure. Coca cola company gets benefits by using this model when it approaches to guide managerial behaviour when there were no well known alternatives. Divisional organizational structure of coca cola company 2 divisional organizational structure of coca cola company introduction an organization must design its structure wisely since it affects how business is carried out and eventually determining its success. Pemberton in 1886, and presently, the company operates it business operations in more than 200 countries in the world coca cola history. What is the organizational structure of the cocacola company. Coca cola amatil has announced changes to its organisational structure to help integrate beverage categories across each of its markets. Depending on the organizational values and the nature of the business, organizations tend to adopt one of the following structures for management purposes. Coca cola operates mostly as a functional form of organization but they also use the matrix design thus making its organizational design a hybrid design. It is a product of factors including product market, history, strategy, technology, styles of management, types of employees, and national culture. Coca cola organizational structure the structure of the company is similar to that of the functional design of an organization starting with the ceo as the heart of the organizational activities and various operations. Decision making the majority of decisions made by the coca cola company are done so by using the incremental method. Organizational structure of coca cola company the cocacola company realizes that it needs to be able to meet the ever changing demands of its customers.
Current structure of the coca cola company is simple with minimal labor and management division. The cocacola company is truly global, and its main product is recognised and consumed worldwide. Its products can be found in over 200 countries around the world. An effective organisational structure cocacola company background the cocacola company is the worlds largest beverage company, refreshing consumers with nearly 500 sparkling and still brands.
Apr 15, 2012 cocacolas brand name is known well throughout 90% of the world today. At the beginning of world war ii, coca cola ensure that every soldier can get a bottle of coca cola by 5 cents in anywhere around the world no matter how much it costs. Coca cola and contour bottle are registered trademarks of the coca cola company 2020. We are a global business that operates on a local scale, in every community where we do business. Get an answer for what is the organizational culture at the coca cola company. Neville isdell, employing about 71,000 people worldwide in over 200 countries. Revised organizational structure 28 august 2002 coca. Daily and routine decisions are made by the line managers at the middle level. By continuing your navigation, you consent to their use.
The cocacola companys organizational structure consists of a board of directors, elected by the shareholders, that has final decisionmaking power in the running of the company. Creating an effective organisational structure a cocacola. Is there interesting advertisement or their national welfare. The relationship between strategy and structure an organizations strategy is its plan for the whole business that sets out how the organization will use its major resources. Jan 21, 2020 the organizational chart of cocacola amatil displays its 23 main executives including alison watkins, martyn roberts, peter west and chris sullivan. Organizational culture of cocacola company analysis. Coca cola attracts top people, helps them to adjust to challenges in the marketplace, and seeks to retain this talent primarily by providing managers with ample opportunities to grow, given the multiple products and geographic units.
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