The Need for Change Management in Coca Cola

The company was established by Dr. John Stith Pemberton -a local pharmacist in Atlanta on May 8, 1886. It had been first bought from Jacob's pharmacy for 5 cents per cup. In the beginning, Coca-cola was sold as a medication for curing trivial diseases like dyspepsia, morphine habit, and headache. Asa Griggs Candler acquired a stake in Pemberton's company in 1887 and included it as the Coca-Cola Company in 1888. Now, Coco-cola is one of the most significant company, distributer and professional of non-alcoholic drink concentrates and syrups on earth. Coca Cola products bearing the business's trademark are now sold in more than 200 countries across the world. The company has or licence more than 450 brands, including diet and light beverages, waters, enhanced waters, drink, teas, coffees, and energy and sports activities drinks. The company step on blending raw material, product packaging in canisters and shipping and delivery the done products to bottlers. The bottling associates of coco-cola range from international and publicly exchanged business to small, family owned procedures. The bottling associates maintain 90, 500 associates to transport on the product to more than 200 million customers. The business had created at least 29 new lines of products from Oct 2004-August 2007 alone In '09 2009, the business generated income of $31billion with $6. 8 billion net gain. This company has fully understands the importance of innovation running a business is the Coca-Cola Company

Introduction

Change management is a continuing process and it is accompanied by many organisations over a daily habit basis (Schroeder and Self applied, 2008). This technique aims at attaining successful strategies, manpower and process for an organisation. The management of any organisation usually goes for a change mainly because of its stiff competition in market anticipated to globalisation factor, technological innovation and demographic trend. Quite few people disagree with the concept but few say that the company is executing well by managing the major changes inside the company. Greenwood & Hinings, 1988 state that organization must survive and in order to do so they assume and adapt to these changes through strategies including organizational redesign. This adoption of strategies brings about the change in the culture of the company. (Schroeder and Do it yourself, 2008 cite Collins, 2001) proclaiming that organizations which fail to adjust or do not react to the changes required in a timely fashion are prone to the chance of dropping their market talk about to rivals, the further implications could be that they might lose key employees or lose the support of the shareholders and in extreme situations even demise. They also discussed two major challenges that the organisations face. The first is always to recognize the necessity for change and the next which is more significant is how to deploy strategies designed to put into practice the changes accepted. In case the change implementation is prepared properly, then your chances of the failures are reduced a great deal and it might also avoid the aftermaths of the failed change process such as reduced worker morale or diminished commitment.

Need for tactical change in an organisation

Coco-cola Company is one of the popular manufacturer and distributor of Non-alcoholic drinks. It works in many elements of the world and provides services to different customers. Today, many companies are using new approach for their products to attain more marketplace also to ensure they can make it through with the globalisation challenge. For this, the organization needs to develop a new change process for sustaining in world market and facing the stiff challengers. The current point out of Coca Cola stores in Hong Kong is pretty good and it is still one of the top distributors of soft drinks in Hong Kong. However, if it will be in comparison to other Coca Cola convenience stores on the planet the marketing, inventory, and performance of workforce is not equal to other Coca Cola company. With the, the company decides to raise the efficiency of the marketing and inventory, as well as the productiveness of workforce through implementing change management programs for maintaining standards and sustaining in world market. When the changes are applied within the management then in future there would be a rise in the business output.

Factors traveling the change:

The main aim of Coca-Cola is to meet and fulfill the needs of customers with excellent product making and distribution. The change management of this company is very fragile since they forecasted that we now have some marketing challenges soon that they have to face. In-order to gain access to the changes in Coca-Cola Company, there should a concrete recognition of issues attached with company. The radical change process will impact the employees and other stakeholders of Coca-Cola Company. Fundamentally, the way of the change is towards the development of labor force and not on the assistance. Since, the business has brought a trustworthiness of providing good services on the market. The change is also about the possible financial problems that the company may face in the near future. Out of this discussion, the next number shows the force-field analysis of the change management steps suggested to the application of change management within Coca Cola Company.

Force-Field Analysis

From this research, it is clearly seen that the computed forces to change is much higher set alongside the pushes against change. Force-field research is one of the main tools used in change management (Bass, I. 2009). Indicating to say, the plan is quite rational with respect to possible opposition. Actually, change management is actually thought as the formulation and assimilation of change in a methodical process (Kotter, J. P. , & Schlesinger, L. A. 1979). Interpretation, the major target of change management which is the introduction of new systems in the task organisation which means change project is normal to companies engaged in change management. Similarly, this is compared to the adoption of new marketing strategies. Businesses like Coca-Cola Company must normally undergo change in order to develop to an increased level of for instance, balance, management or production. Coca- Cola Company always wanted to own an extreme development. The Chief Executive Official of Coca-Cola can include changing the company's quest, reforming business operations, application of new systems, major group efforts, or adoption of new programs. Usually, the company is motivated on buying change management scheduled to external affects, usually referred to as the environment (Nickols, 2004). Thus, change management can alternately be defined as the response of different business to changes brought about by environmental influences in which organisations have minimal or zero control over. Perhaps the space between your new organisation design and applying it into the truth is the whole coverage of company change and development. However, certain skills must be present from the initiators of change in order to successfully implement their job. Thus, managers need to have the necessary talents not only on detecting what needs to be changed but also how to create the change effectively.

System to involve stake holders

The change process are relied on the whole organisation, this means various functions likely affected by change relating to the upsurge in efficiency of marketing and inventory, as well as the effective work-force of employees. Stakeholders pertain to the functions from the business firm who stand to experience benefits or undesireable effects from the change (Friedmand, 2007, p. 172). Figuring out the stakeholders and the respected interests is important to develop ways of wining over these various stakeholders who are likely to donate to the success of the prepared change. Identifying stakeholders or the gatherings damaged by the change together with the impact of the change to these get-togethers is also important in prioritizing stakeholder hobbies as well as the image resolution of issues encountered by the stakeholders. (People from france & Delahaye, 1996, p. 22)

Involving stake holders in change management strategies

There are lots of stakeholders in the prepared change slipping under either internal or external stakeholders.

First is top management of the organization who decide on the change, immediate strategy implementation, and take accountability for the outcomes of the change.

Second are middle managers who are little afflicted by the change and comprise implementers of the responsibilities constituting change.

Third are employees also affected by the change and help as the movers in process of change.

These three stakeholders also constitute inside stakeholders as they form area of the organization and straight experience and participate in the change process.

Fourth are bottler's affiliates of the business who could be influenced by the change of product.

Fifth are traders and investment parts providing capital needed in the change process.

Sixth are customers for whom the change is directed and from whom the impact of change is evaluated.

These previous three stakeholders consist of exterior stakeholders by not being part of the firm. These stakeholders influence the change indirectly but could effect the success of the change management activity. The most important tool is the analytical tool is the source of information dependence theory (Frooman, 1999, p. 191) that grouped the relationship between your organization and stakeholders into four types, that happen to be 1) firm electricity, 2) high interdependence, 3) low interdependence, and 4) stakeholder power. The type of the relationship determines the problems requiring resolution to control effectively stakeholders. The center notion of this analytical tool is the recognition of the limited self-sufficiency of business organizations so that they have to count on the environment to address difficulties.

Firm-Stakeholder Relationship

Stakeholders

Firm Power

Middle Professionals, Employees,

Stakeholder Power

Customers, Top Management

High Interdependence

Investors and Investment Parties

Low Interdependence

Suppliers

The implementation of the analytical tool shows the stakeholder goal of the business in obtaining the prepared change in the framework of resource deposition. Since the company has strong reliance on traders and investment people as source of capital and investors also rely on the company to experience profits. This means that the business should develop shared positive romance with investors and investment parties. Since the electric power of stakeholder is saturated in the case of customers and top management, which means that the company should think about the important tasks of top management in directing change insurance plan and customers in justifying the region of change.

Resistance to change

The main success of implementation the change is achieved by figuring out and understanding the factors which stop the execution process. Kotter (1996, p. 3) detailed blocks as the entirety of the hindrances and issues experienced by business companies throughout utilizing change. The unaddressed level of resistance can lead to severe delays, accumulation of additional costs and even inability in implementing the change.

Resistance finds description through the transition curve (Fisher, 2001). The amount of resistance for establishing the changes in marketing, inventory and performance of personal in Coco-cola Hong-Kong will rely entirely on professionals and employees of the organisation. It also restructures the organisation by making some changes in the management by removing some employees or position or by adding some more employees or reassignment employees. This example accumulates a fear in the imagination of employees and professionals. The change also contains in employing new employees, which is often regarded as a risk by existing employees. Specifically, there a wide range of sources that could resist the organized change. The employees involve some fear on the employment status if any changes are executed. So, the original response of employees will be on preventing contrary to the change to prevent their actual positions. Alternatively, it can create a positive attitude on employees that the new change will secure their position after putting into action the changes. Employees experience more safety by bettering their skills and knowledge and in order to finish their work effectively. Another is the several perspectives of professionals and employees towards the reason and impact of the designed change. The various in thoughts and opinions could split support for the change. Last is the undesirable perception on the change because of lack of consultation. The implementation of change without sufficient assessment, predicated on the point of view of managers and employees, could develop negative regard for the change.

Kotter's style of change

Kotter's model provides eight reasons why procedure for change within an organization fails. It means that if these eight known reasons for failure is removed or their impact is reduced an effective change process is possible. These eight steps can broadly split into three categories as preparation (steps 1-4), action (steps 5-7) and grounding (step 8). So Kotter's model can be used to assess the change process in Coco-cola Company:

1. ) Set up a sense of urgency:

The older management of coco-cola realised a change in their system of procedures was necessary in order for them to grow running a business. Hence the coco-cola Hong-Kong firm did not hold off in addressing the issue and realised the need for know-how and new marketing strategies required in the company operations. They were the internal factors that the business was sorting out after reviewing the financial record of the convenience stores. Overall, it could be said that the sense of urgency was set up.

2. ) Form a robust guiding coalition:

The second step is to make a strong guiding coalition. The management of coco-cola developed a team of experts to help in guiding the change process of the management.

3. ) Developing a vision:

The expert team appointed by the management shown a new vision for favouring the success and progress of the company. They also advised some strategies to achieve the perspective on a brief period of the time.

4. ) Conversing the Perspective:

The management created a eye-sight for the change which is very important for the company to communicate the perspective to its employees. The company planned to improve the productiveness of employees. So, this may create a conflicts or misunderstanding between management and employees of the business in communicating perspective. The very best management should properly guide the employees in how to respond that change.

5. ) Empowering others to act on the perspective:

In this step the Coco-cola management was completely failed because they didn't empower employees to put into action that vision. Employees weren't urged to have any risks minus the endorsement of the management and they were not permitted to take decisions at their own. Even management never used to welcome any new ideas from the employees during the branch conferences.

6. ) Planning for and creating short-term wins:

Here management needed to motivate its workers by creating short-term goals for the kids with a degree of low failure. But this wasn't the truth. There is no short-term gain strategy prepared by the management and it was more focused on achieving the yearly targets of profit. So employees were totally neglected in the change process and nothing at all was done to inspire them like salary increase, bonus products, etc

7. ) Consolidating improvements and producing still more change:

For implementation of new vision the most notable management must change the systems and plans of coco-cola which didn't support that change. But this wasn't done. The employees who have been more responsible to implement change were neither promoted or the business didn't hire any additional people for carrying on the eye-sight. Coco-cola attempted to implement change with help of the existing employees

8. ) Institutionalizing new methods:

Coco-cola experienced realised the necessity of new ways of put into practice change and also presented incentives for the employees who apply the change successfully. The business also found to it that they communicated what they desired from the employees successfully through conferences, e-mails and meetings.

Overcoming Amount of resistance to change

In change management, the resistance of employees in organization is usual expected. However, conquering the resistance is important in order to implement the mandatory changes in the management strategies. Regarding to Kotter and Schlesinger (1979) there are six techniques that an company can use in working with the amount of resistance by the workforce and they are:

Education and Communication- To be able to overcome the amount of resistance in Coca-Cola the employees should be informed and informed about the changes within the business before implementation and to prevent incorrect information that will encompass the task area.

Participation and Participation- employees should be involved with designed changes in general management programmes of the business because after they become involved the employees won't resist but instead will participate in the changes that will be undertaken.

Facilitation and Support- Some employees will withstand the changes because they're unable to change with the new programmes put in place by the management to avoid level of resistance the management must support the employees that are having a hard time with the changes, creating a support system can help and assist the employees to adjust quickly.

Negotiation and Arrangement- Coca-Cola should discuss and negotiate with employees, and through the discussions the management must discuss the bonuses they will receive once they accepted the changes in the management strategies.

Manipulation and Co-option- if the other methods didn't work appealing the union head to participate and become a representation in the change process will aid in overcoming the amount of resistance to change.

Explicit and Implicit Coercion- if all strategies didn't work then the previous step would be forcing them to simply accept the applied changes and threaten them that if indeed they won't comply the employees will eventually lose their jobs.

 

Conclusion

Change management is basically thought as the formulation and assimilation of change in a methodical process. The major aim of change management is the benefits of impressive means and systems in the work organisation. This may similarly be compared to the program of certain information systems in the company or the adoption of new marketing strategies. Businesses must normally undertake change to be able to develop to an increased degree of for instance, stableness, management or development. Appointing a new head official, for example, can greatly improve his subordinates based on his management ideas and personality. From these discussions, we might conclude that change management is a process where all companies undergo. That is an important procedure because it permits the company to make decisions that will be advantageous and beneficial to the company. In addition, organisations that are open to change are usually more lucrative compare to companies that withstand it. In a very globalise market, new systems and treatment are emerging rapidly, to keep up with this improvement an organization must be prepared to adapt to management changes. The international, as well as, the neighborhood market has an extremely stiff competition, therefore in order to be on top change management must be utilised by companies. Coca-Cola is among the finest types of companies that utilised change management successfully and have yielded excellent results. The data is the dominance of Coca-Cola in the soft drink industry not only in Asia but all around the globe.

 

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