Coca-Cola Management
Executive Summary
Coca-Cola is one of the leading manufacturers of soda pops all around the globe. Within the last decades, Coca-Cola remained together with the industry. The company was able to withstand the earth War II, and even required it as a home based business rather than liability. It had been able to exceed the Asian FINANCIAL MELTDOWN and even gained better gain access to in markets it was not able to fully type in. Coca-Cola exhibited the effective change management within the tactical management process. Change management is the procedure where it handles the change in the side of people. There specific change management and organisational change management are the ideas of change management. Besides form the theories there are also four strategies of change management which will be the Empirical-rational, normative-reeducative, power-coercive and environmental-adaptive.
This paper examines the various changes that took place in Coca-cola. Moreover, this newspaper also discusses the management styles that professionals of Coca-cola have adopted. The paper talks about management strategies and research will get on Coca-cola. In addition, there is also a discussion on ideas of change and change management.
Introduction
Over days gone by years people, systems and the surroundings have improved. Change is the only thing that is continuous in this ever before changing world. From physical attributes of people, up to the environment, change is very apparent. Just like the environment and people, businesses also goes through changes, it can be either substantial or minimal. Often times, changes appear in the management of the corporation, in order to keep up with the competition. Regarding to MacCalman and Paton (2000) the individuals who proceeded to go home winners and at the top have the normal characteristics of effectively handling the changes in the problem. Changes in general management is a process that any organisation must undergo, an enterprise will not be complete if it never experienced change.
Prior to discussing change management, the word change must be first identified. Corresponding to Davidson (2001) "change is the significant difference in what was before. " In business it means achieving tasks in a new format, pursuing new directions, acquiring new technology, new management methods, acquisitions and merging and other important occurrences in corporations. Additionally, Davidson defined the characteristics of change. Relating to him change is significant, extended and disruptive and change is a continuing process of position. Davidson (2001) argued that change is significant, prolonged and disruptive. On this attribute, change within an company includes venturing into new areas of business, such as getting into services in the new market, facing an urgent event such as economic turmoil and redirection of the business.
According to Kudray and Kleiner (as cited by Davidson), an aligned company must have a continuous synchronisation of the top management levers such as strategy, operation, culture and prize. Kudray and Kleiner reviewed that in these management levers, the professionals, ceos and supervisors are in charge of manipulating and rearranging both individual and non-human elements.
In addition, MaCalman and Paton talked about that change can be an important aspect in the business world especially in technology and development, from simple solutions and procedures up to more technical operating conditions, nowadays technologies and products are coming together to accomplish a common conclusion or target.
Organisations that resist changes will inevitably face wider exposure to risks and deficits. There are a number of situations where change is essential within the company such as scientific advancement that is being utilised by different companies to be able to cope up with the competition. Aside from what was mentioned earlier, you may still find many issues and concerns that are necessary for change in the company, however the most significant thing is the fact organisations acknowledge that changes happen constantly for different reasons and the management must treat these changes as quickly as possible to avoid great losses. In relation to the debate of management issues, this newspaper will be speaking about the business enterprise strategies of Coca-Cola Company in accordance to improve process.
Change Management Theories
Nickols (2006) has four basic meanings of change management, according to him it is a task of managing changes, a field of professional practice, a body of knowledge and information and a control system.
Task of Managing Change- Nickols (2006) described controlling changes as
"the devising of change in a well planned and organized fashion. "
He explained that the main objective of managing change is to efficiently put into action new techniques and methods within the organisation, furthermore the changes to be dealt with depends upon the control of the company.
Area of Professional Practice- in what manner professional practice came into managing changes? Any kind of relations between the two? Years ago, handling changes in a company is performed by the management, supervisors, and CEO of the business, but nowadays with the frequent change in the ideas of business and advancement of new ideas a number of individuals have developed companies that especially addresses the problems regarding managing changes. According to Nickols (2006), there are a number of people and consulting firms that declare they involved in activities that involves planned change and that the organization exercises change management tactics.
A Body of Knowledge- The body of knowledge in change management relating to Nickols (2006) includes the next, models, methods and techniques, tools and various types of knowledge that constructs the change management practice. Moreover, Nickols discussed that this content of change management is influence by sociology, mindset, business administration, commercial engineering, economics, systems executive and individual and organisational behavior.
Control System- over the past years groups and individuals handling the info systems of organisation have tried to control and immediate changes to the applications and systems of the company, however, lately people working in this particular area have referred this mechanism of control as "Change management. "
Perception regarding change management has improved within the last years. Change management is utilised in new procedure, structures, and systems in order to overpower the resistance to improve, however as studies and ideas regarding change management advanced over the past years, the view on change management turned from an instrument in overcoming resistance to developing power and participation in transformation. For this reason change management is currently regarded as management ability than a responsive device in handling resistance.
Coca-Cola Company Management Strategies
Coca-Cola was proven on, may 8, 1886 by Dr. John Stith Pemberton, a local pharmacist in Atlanta, Georgia. It had been first sold in Jacob's pharmacy for five cents per goblet. First Coca-cola was sold as a medicine, Pemberton during that time considers Coca-cola as an end to diseases such as dyspepsia, morphine craving, throbbing headache and impotence (North America Operating System, 2008).
In the entire year 1985, due to the aggressive campaign of its rival Pepsi, the Coca-Cola Company reformulated the favorite carbonated drinks to suit the desire of the consumers which is sweeter soda. However, the New Coke became a commercial failing which causes the adverse result of the general public. Protests from different industries of the world emerged. Because of these events the business return the original formula and named it Coca-Cola Vintage. Despite returning the original formula, the company still received accusations from different groups. In the entire year 2005 the business launched and announced their forthcoming products which are the Diet Coke and Coca-Cola Zero (The Coca-Cola company travelling bag n. d. ).
Coca-cola Company is plainly one of the most popular companies in the world. Apart from the fact that it is also one of the oldest companies that could withstand World War II and other changes in the economy over the past years. The fact still remains that it's one of the very most famous brands of Cola on the globe (The Coca-Cola company travelling bag n. d. ).
The Coca-Cola Company could withstand the hindrances that took place; the company was able to utilised change management as successfully as you possibly can to resist the hurdles.
As mentioned previously, changes in management is triggered by three different factors which are the external environment, inside changes and the proactive a reaction to possible risks and issues.
External Environment Evaluation- over the past ages, the Coca-Cola Company has faced a number of changes in the external environment which have altered the management of the business. One of the best examples is through the World War II. The business could maintain the position of the company, at the same time, was able to enter new market segments regardless of the environment. Instead of lying-low because of the war, the business became more intense through providing free refreshments for the GIs through the World Warfare II. Through this the corporation could hit two wild birds at one stone. First, because the carbonated drinks sent by the business, it became a patriotic icon by the United States soldiers where led to consumer commitment. Second, the business could take advantage of the problem and established the product in newly-occupied countries by the Ally causes and because of that the company set up plants in a variety of locations worldwide paving just how for its post-war extension.
Another aspect in the external environment is the change of style and prospects of the consumers. During the mid-1980s wherein the Us citizens favoured the lovely preference of the rival product, the company created its counterpart but became a commercial failure; however rather than backing down, Coca-Cola changed its management strategy and came back the old formulation, and simply renamed it as Coca-Cola Old classic. And with the rise of obesity in america and consumers became health mindful the company released new types of Coke to be able to address the needs of the kind of consumers, such products include Diet Coke and Coca-Cola Zero.
In addition, matching to Bool (2008) companies such as Coca-Cola are compulsory to enhance due to tendencies that have a big impact on their business, and one of these trends is the health and fitness. Lots of men and women are noe making an investment more in their health, and in order to keep up with the style, Coca-Cola launched their new product which really is a calorie burning soda, the Enviga. Moreover, Coca-Cola is collaborating with the Swiss company Nestle. Coca-Cola is working with technology and change. Through the Asian Financial Crisis, Coca- Cola was also induced to improve its span of management in that particular region. The responses and reactions of Coca-Cola with the exterior environment are its internal changes.
Internal Changes- as stated earlier, Asia experienced its financial meltdown in 1997. Corresponding to Barton, Newell and Wilson (2002) as the financial meltdown swept the Asian region, the chief executive officer, Douglas Daft taken care of immediately this by mobilising his professionals to workshops about how exactly Coca-Cola would seize new development opportunities. Barton et al, explained that Coca-Cola gave focus on acquisition opportunities, Coca-Cola bought received bottling business in South Korea which provided more gain access to in shops in South Korea, as well as, better accessibility in China, Japan and Malaysia. Coca-Cola disregarded its country-defined market point of view and focused on regional strategic view and obtained local brands of tea and coffee.
In the truth of health styles and changing style of the consumers, Coca-Cola taken care of immediately this through innovation and change. Development is accomplished through development of new products such as the Enviga, Diet Coke, Coca-Cola Zero, and other variations of Coke. The change is incited by the trend in health and consumer preferences which had a direct effect on the business of Coca-Cola. During World Conflict II, the response of Coca-Cola to the situation is to provide free refreshments to the GIs in order to access new markets in which the company was able to do.
Risk Management- Companies whether it is small or large already are acting in advance in order to beat the possible risks that may come up in the foreseeable future. Matching to Neville (2005) in the wake of 911, the insurance market have improved, big companies reconsider the possible hazards and exactly how are they going to make use of insurance, in Coca-Cola following the prices increased the company look at night typical path of buying insurance straight but instead Coca-Cola considered inexpensive insurance through captives.
In the year 2000, The Business Line, reported that Coca-Cola evolved its senior management team and organisational composition for the intended purpose of facing the opportunities, threats and issues as the business enters the new phase of management. Moreover, Coca-Cola THE UNITED STATES is decentralising its organisation, as well as, moving accountability and power into the field of the company.
The change in the older management is one change management step that Coca-Cola have been through in order to raise the efficiency of the company. The appointed folks are seasoned beverage bottling professionals; therefore Coca-Cola views consistent upsurge in the profits of the company. The change in the mature management has been effective because the sales of Coca-Cola in THE UNITED STATES have been steady.
Furthermore, according to North America Operating System. (2008), the company undertook a significant change in which an organisational framework originated to react to the needs of consumers through including the North American container and can, fountain and juices in a single unit of procedure. Through this change it out enhanced the way beverage choices are manufactured, and it unifies the system of the source string, procurement and syndication in which it increased the efficiency of services to consumers.
Individual Change Management- Regarding to Hiatt and Creasey (2002) specific change management is the procedure in which the company provides tools and training to its employees to be able to take care of their personal move through change. The ADKAR Model, relating to Hiatt and Creasey is a model that may be use as an individual change management. The ADKAR model shows five levels a person undergoes through the process of change (Hiatt and Creasey 2002):
- Awareness of the need to change- in Coca-Cola employees, stakeholders and even individuals are up to date in the changes, especially in the management, just like in the case of appointing Shaun B. Higgins as the new president of the Coca-Cola Company in 2005.
- Desire to get involved and support the change- the employees in Coca-Cola especially the ones in the management positions take part in the changes that the business must undertake, like regarding changing the packaging of Coca-Cola.
- Knowledge about how precisely to change- the older professionals of Coca- Cola have satisfactory knowledge about the changes that has to take place within the company, an example is regarding Daft where he previously knowledge on changes that must definitely be done in order to counter the Asian Financial Crisis in 1997.
- Ability to apply new skills- Coca-Cola has an extended background of changes, some are failures, but the majority of enough time it is effective, which means company has the capacity to put into action the changes that the company are suffering from, take the circumstance of Daft, together with his team, they were able to put into action the changes, not simply in one country but a complete region successfully.
- Reinforcement to keep the change in place- Coca-Cola can be an established company and has recently made a make not just in the lives of Americans but most people in this world. The successful implementations of the changes in the business are due to the strict support of changes in the business.
Organisational Change Management- this theory reveals a general procedure for taking care of the change in the side of individuals at an organisational level (Kotter, 1996). Relating to Hiatt and Creasey, the organisational change management is includes three phases, which can be, finding your way through change, handling change and reinforcing change.
The theory of organisational change management was effectively utilised by Coca-Cola. Different managers in various parts of the world have used organisational change management to be able to address the problems that the Coca-Cola confronted. From the case study (The Coca-Cola company state n. d. ) these folks are:
One of the very most well known CEOs of Coca-Cola Company is Mr. Gouzueta, he was the principle executive official of Coca-Cola for seventeen years. He could determine the challenge against other maker of carbonated drinks. Mr. Gouizetta played out a huge role in measuring the operation of Coca-Cola and developed strategies that aided the Coca-Cola to beat competition. Furthermore, Mr. Gouizetta performed important functions in planning and leading the responsibilities in achieving the goals and aims. In addition, Mr. Gouizetta also appointed Mr. Ivester whom transformed the weakness of Coca-Cola into opportunities and talents (The Coca-Cola company case. n. d. ).
Furthermore, the newspaper of Pigseye, the following organisational management changes that occurred in Coca-Cola over the past years. Coca- Cola has recognized various varieties of its advertisements in order to target different varieties of consumers rather than concentrating on one group. The business changed the product packaging of Coke. Coca- Cola also developed services such as Gatorade and it lengthened globally which comprises the African group, Midsection and Far East group, the Latin America group and the Western Group (The Coca-Cola company case. n. d. ).
Conclusion
Change management is a process where all companies experience. That is an important procedure because it permits the organisation to make decisions that will be advantageous and beneficial to the company. Furthermore, organisations that are open to change are usually more successful compare to companies that avoid it. Within a globalise market, new technologies and treatment are emerging swiftly, to keep up with this progress an organization must be eager to adjust to management changes. The international, as well as, the neighborhood market has a very stiff competition, therefore to become at the top change management must be utilised by companies. Coca-Cola is among the finest examples of companies that utilised change management efficiently and also have yielded positive results. The data is the dominance of Coca-Cola in the soda industry not just in the United States but all around the globe.
References:
Barton, D. , Newell, R. & Wilson. G. 2002, When Is an excellent Time to create Strategic Advances? throughout a Crisis, naturally. The McKinley Quarterly, pp. 77+
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Business Line 2000, Coca-Cola Business Inc. Announces Management Changes and THE UNITED STATES Group Reorganisation.
Davidson, J. P. 2001, The Complete Idiot's Guide to improve Management, Alpha Books
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Kotter, JP. 1996, Leading Change, Harvard Business School Press
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Neville, L. 2005, Insurance providers Seek New Role within a Changing World, Global Money, viewed 30 January 2008, http://www. gfmag. com/2005/Apr/c_ci/fe_art06. php
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North America Operating System. 2008, Coca-Cola Company, seen 30 January 2008, http://www. thecoca-colacompany. com/investors/annualandotherreports/2003/opseg. shtml
The Coca-Cola company case. n. d. , Pigseye, looked at 30 January 2008, http://pigseye. kennesaw. edu/~jmburu/case2. html
