Organizational Components of the Coca-Cola Company

Find information about the following organizational components as they relate specifically to the Coca-Cola Company. Do your best not to speculate, but to find factual information concerning the topical areas below. The following list of questions may help you focus your search (Source: Obtaining information about organizational components critical to implementation (adapted from Aaker, D.A. (2001) Developing Business Strategies. Wiley):

Structure

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What is the organization’s structure? How decentralized or centralized is it?
What are the lines of authority and communication?
What are the roles of teams, committees, and task forces?

Systems

How are budgets set?
How is planning done?
What measures are used to evaluate performance?

People

What are the skills, experience, and knowledge of the firm’s employees?
What is their depth and quality?
What are their attitudes about the company and their jobs?

Culture

What are the company’s values and are they widely shared and accepted by employees?
What are the key norms of behavior?
What are some significant symbols?
What is the dominant management style?
How is conflict resolved? Solution Preview
Organizational Components of the Coca-Cola Company

Structure

The Coca-Cola Company’s organizational structure has the characteristics of two models; organic and mechanistic. The organization is more centralized, but there have been moves to change to decentralization in order to meet the ever-changing needs and demands of consumers. It has been suggested that Coca Cola may be evolving into a hybrid structure allowing the advantages of both models, mechanistic and organic structures, while reducing the negative impacts each may carry (Valluri, Nahata, Jangalwa & Sethi, 2010).

The organization has two operating groups known as Bottling Investments and Corporate. The company also has operating groups in different regions including Africa, Eurasia, European Union, Latin America, North America, and Pacific. Each is divided into geographic regions. By allowing decision-making on the local level (decentralization), the Coca Cola can respond faster to market changes, while the higher-level management focuses on long-term planning. The company’s finance, human resources, innovation, marketing, and strategy and planning are centrally controlled.

The Coca-Cola line of authority originates at the top with the CEO and moves downward to the Senior Managers, to the Mid-Level Managers, to the Lower Managers and then Non-Management Employees; which is common among large companies. The bottling companies are domestically owned and operated by independent business people that are authorized by Coca-Cola to sell their products.

Coca-Cola provides an on-line HR tool that provides employee access to important information, enabling employees to manage their lives or careers through policy and program information, as well as access to answers to the most frequently asked questions on topics about pay, benefits, performance and many other issues (Coca-Cola, n.d., http://www.cokecorporateresponsibility.co.uk/big-themes/our-people/training-and-development.aspx). If employees cannot find what they need there, they can call the HR office for professional help.

There have been communication problems in the past, which usually occurs in a tall structure like Coca-Cola’s. The company employs approximately 94,800 employees where more than five hierarchical levels exist at the corporate level (Valluri, et al., 2010, p. 15).

What are the roles of teams, committees, and task forces?

The roles of teams vary from building activities and annual outings to build up morale among employees to achieve a common goal. Teams are used in the financial departments as well as throughout the company to coordinate activities and work toward common goals.

The committees are appointed by the Board, and represent as well as assist the Board in fulfilling its oversight responsibility to the shareowners and others relating to the integrity of the Company’s financial statements. This also includes …

Solution Summary
This article deals specifically with the organizational components of the Coca-Cola Company. This American multi-national manufacturer of non-alcholic beverages has become a global icon. Coca-Cola success can be traced to its organizational components; structure, symbols, systems, culture, and people.

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