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. This paper performs a strategic analysis of the cocacola company, a leader in. Cola system, joined cocacoca beverages in september 1998 as region director. Organizational structure types bureaucratic structures. 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. 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. You can edit this organizational chart using creately diagramming tool and include in your reportpresentationwebsite. My case study involves analyzing organization structure of coca cola company which is a multinational corporation which produces. Cocacola org charts featuring cocacola executives, cocacola contact info, insider sales intelligence and sales leads. An organisation must structure themselves accordingly to the size and nature of their markets. Coca cola adopts both mechanistic and organic models of organizational control and hence incorporates both modernist and post modernist perspectives in the organizational management.
Depending on the organizational values and the nature of the business, organizations tend to adopt one of the following structures for management purposes. The coca cola company organizational culture papers marketplace. 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. 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. It is a product of factors including product market, history, strategy, technology, styles of management, types of employees, and national culture. The organizational structure for cocacola is designed in such a way so as to suit the changing needs of the customers. Current structure of the coca cola company is simple with minimal labor and management division. Pdf on feb 1, 2019, naama al tunaiji and others published coca cola strategy project find. Coca cola also uses this model under some supreme situations such as organizational disaster. Organizational analysis entails carrying out evaluation on the processes of a company as well as those employed to run such processes. 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.
Coca cola amatil has announced changes to its organisational structure to help integrate beverage categories across each of its markets. The coca cola company has a complex form of organizational culture that involves control through a vertical hierarchy. 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. Jan 15, 2020 the organizational chart of cocacola displays its 444 main executives including james quincey, john murphy and brian smith. The cocacola company is truly global, and its main product is recognised and consumed worldwide. While many view our company as simply cocacola, our system operates through. 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. Mar 01, 2014 cocacola is tall in terms of organizational complexity. Short overview of coca cola coca cola is a carbonated soft drink sold in stores, restaurants, and vending machines all over the world. 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. 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. Coca cola company gets benefits by using this model when it approaches to guide managerial behaviour when there were no well known alternatives. Coca cola organizational behavior project report bohat ala. Cocacola s divisional structure allows the organization to react to changes in the environment while still maintaining a level of stability.
Creating an effective organisational structure a cocacola. Cocacola has more than 700,000 system employees, including. Its product portfolio consists of roughly more than 400 brands. This covers issues linked to structures, formalities and processes which are the major elements that drive change in the modern world carroll, 2006. Ko is a beverage retailer, manufacturer and marketer of nonalcoholic beverage concentrates and syrups. The company also produces and sells other beverages. What happens on the ground does not fit in its centralized structures. Divisional form centralized functional departments bottling investments group big multibillion dollar bottling business owned by the company operations in 5 continents representing. Ko the coca cola company, a beverage company, engages in the manufacture, marketing, and sale of nonalcoholic beverages worldwide.
Coca cola company is a drink industry, which goes about as shapers, they. Aug 28, 2002 john, who recently celebrated 20 years in the coca. Coca cola is one of the worlds leading nonalcoholic soft drink manufacturers. 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. 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. Coca cola company opted for this type of structure since it caters for large organization with multiple goalsnah151. 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.
When the coca cola company tend to bring nourishment, worth, happiness. Cocacola did not perfectly align across these organizational components but came close to aligning under the type 2 category. This organisation chart is for illustrative purpose only and does not represent the legal structure of the group. Because of this, coca cola has come up with long term objectives.
Coke has a strong leadership team being lead by ceo e. Previously coca cola followed a centralized organizational structure with chain of command. The 5minute rule for letter non profit organization employees represent a company. Cocacola organizational chart by elisabeth lechner on prezi. The upper management of the company has the final decisionmaking role while the company departments are required to implement the decisions. It has various divisions in all continents around the world with presidents that control each continental division. The company is well known for its main product, coca cola, which was invented by. 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. General and specific factors economic competition 4. According to the companys 2015 10k annual report, it has a single class. Organizational behavior within coca cola using models and.
The coca cola company has a separate international division structure because its international staffs operate separately and in isolation from head office. Fundamentally, once a member of staff makes a donation, they could request their company also donates into precisely exactly the exact same nonprofit. Over the past decade, coca cola has been experiencing a decline in sales due to increasing health and obesity concerns. Cocacola organizational culture coca cola company 1. The organizational structure of coca cola is a decentralized organization of tasks. John, who recently celebrated 20 years in the coca. 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. Creatinganeffectiveorganisationalstructureacocacol business. 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. Organizational analysis the cocacola company introduction.
The coca cola companys organizational structure has the characteristics of two models. What is the organizational structure of the cocacola company. Cocacola is dealing with this issue by acquiring and branching out to healthier drink. 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. Swire coca cola beverages jiangxi swire guangdong coca cola zhanjiang swire coca cola beverages hubei swire coca cola beverages yunnan shanghai shenmei beverage and food swire. Cocacola india announces new organization structure. The coca cola company is the worlds largest beverage company.
What is the organizational structure of the cocacola. Divisional organizational structure of coca cola company. A organizational chart showing coca cola business structure. 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. 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. Coca cola, form 10k, annual report, filing date feb 21, 2007 pdf. Vertical expansion along the value chain organizational model hybrid structure mixing elements.
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. 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. 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 cocacola companys structure is a hybrid of both mechanistic and organic models. The coca cola brand is globally valued and recognized. The cocacola company 2010 this document contains the concepts of organizational theory explained with reference to the cocacola company. What is the organizational culture at the cocacola. The coca cola company is arguably the biggest manufacturer and marketer of soft drinks in the world. It should also ensure that all the divisions have effectively opportunities in the companys decision making processes. It was born in atlanta, georgia, on may 8, 1886 was originated as soda fountain beverage sold for five cents a glass. Is their brightly red color or their cool beautiful bottle. The illustration below shows the worldwide distribution of sales of. They divide the functions, responsibilities and work to avoid overlap and waste while concentrating on the optimum business structure to. The threat of substitutes, however, is a very real threat.
Cocacola femsa announced new organizational structure and. It uses a decentralized system of management, which divided into two operating groups. 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 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. Decision making the majority of decisions made by the coca cola company are done so by using the incremental method. Revised organizational structure 28 august 2002 coca. Daily and routine decisions are made by the line managers at the middle level. Introduction1 environment2 organizational culture3 sr an ethics4 organizational strategies5 organizational structure and design6 human recourses management 3. Currently, the threat of new viable competitors in the carbonated soft drink industry is not very substantial. Coca cola femsa announced new organizational structure and new equity and debt profile. 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. Cocacola concentrates certain functions for global strategy in a corporate segment, while having geographic segments dealing with local strategy.
Under the ceo of the company, there are various subordinates in the company who are entrusted with the duty of overall control. The cocacola company is an american multinational corporation, and manufacturer, retailer. Jan 19, 2017 new structure is in keeping with economic reforms that will make india a single national market. 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. 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. 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.
The basic plan of the coca cola company is very simple, concrete. Its the largest manufacturer, distributor and market of nonalcoholic beverage around the world as well as among the largest cooperation in the united states. Organizational structure and organizational structure and. The coca cola company has the financial capacity to put at equilibrium standardization and mutual adjustment. The coca cola strategy and exchange name was procured in the. Cocacola is controlled through a vertical hierarchy, with decisionmaking authority residing with the companys upper management. Coca colas organisational behaviour mgt201 studocu. This covers issues linked to structures, formalities and processes which are the major elements that drive change in the modern world.
The coca cola company being a truly global organisation uses the design of division of work by location. The company is best known for its flagship product coca cola, invented by pharmacist john stith pemberton in 1886. Coca cola organizational structure,management at coca cola focuses in adopting modern and postmodern perspectives in order to maintain the relation with business environment. We are a global business that operates on a local scale, in every community where we do business. The coca cola company project analysis paul mburu business summary the coca cola company nyse symbol.
Coca cola was established in 1886 in atlanta as a beverage company. Comparative analysis of cocacola company and pepsico. 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. Apr 15, 2012 cocacolas brand name is known well throughout 90% of the world today. This is why the company pushed towards decentralization in the nineties, and even more so recently. Cocacola org charts report by orgchartcity youtube. The coca cola companys structure is a hybrid of both mechanistic and organic models. The australian beverages team will now incorporate the australian parts of the alcohol and coffee portfolios, under the leadership of peter west. 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. By continuing your navigation, you consent to their use. This covers issues linked to structures, formalities and processes which are the major elements that drive change in the modern.
Revised organizational structure 28 august 2002 cocacola hbc. 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. Organizational components of the coca cola company. Coca cola organisational structure and theories uk essays.
It also moved the regional chieftains closer to their local markets. Coca cola matrix organization structure free essays. Learn more about the coca cola company and how were a leader in workplace safety, human rights and sustainability. Members of senior management and a number of standing committees carry out the decisions of the board of directors. Provide an overview of the coca cola company organization the cocacola company happens to recharge every person it touches. 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. The company has always demonstrated strong market orientation, making strategic decisions and taking action to attract, satisfy, and re. Coca cola is a wellknown company in carbonated beverage industry, the company was established by atlanta pharmacist, dr. The basis of this model is economic assets with a managerial assimilation of money. 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. Is there interesting advertisement or their national welfare. Cocacolas organizational structure and human resource.
This is a study that can be based on individuals or at times groups. Relationship with its distributers another completiveadvantage, the structure of cocacola is ideal for itsdifferentiation strategy because they focus on market. The cocacola company more than a beverage company our company. Organizational structure of the cocacola company scribd. Although the organization follows a particular structure, there can be departments and teams following some other organizational structure in exceptional cases. Its products can be found in over 200 countries around the world. Organizational culture of cocacola company analysis.
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. 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. Before getting into the detailed analysis of coca cola and its relationship with organizational environment, we will first get the idea of organizational theory. My case study involves analyzing organization structure of coca cola company which is a multinational corporation which produces and distributes soft drinks. A study of change management in coca cola ukessays. Coca cola company is the largest beverage company in the world. 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. Free essays on organizational structure for coca cola. Coca cola is a global company that operates on a local scale. Get an answer for what is the organizational culture at the coca cola company. Cocacola is recognised as the worlds most valuable brand. Coca cola and contour bottle are registered trademarks of the coca cola company 2020.
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. Thus coca cola bottling plant moved in europe and asia with the us army. The organizational structure of the cocacola company kibin. 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. Cola system, joined coca coca beverages in september 1998 as region director. Organizational structure of the cocacola company free download as word doc. Cocacola streamlines organizational structure reuters. Background of coca cola company cocacola company is the worlds largest beverage company with products that include cocacola, diet coke, sprite and fanta. Orgnisational theory or ot is the amalgamation of many theories and approaches to an organizational study. Pemberton in 1886, and presently, the company operates it business operations in more than 200 countries in the world coca cola history. Primarily the company has a very tall hierarchy in place and subordinates that are then divided up by regions. 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.
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. Coca cola decentralized its organizational structure by reducing the staff to the half at its atlantabased headquarters. In pepsicos case, the organizational structure enables control over the expansive reach of the company around the world, considering significant differences among market. Coca cola s organizational structure is based on geographic units, with product units subordinated. When you take about cocacola, what is the first thing jump out from your mind. Jan 21, 2020 the organizational chart of cocacola amatil displays its 23 main executives including alison watkins, martyn roberts, peter west and chris sullivan. Neville isdell, employing about 71,000 people worldwide in over 200 countries. Pepsicos organizational structure analysis panmore institute.
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