Assessing The Millercoors Organization And Mission Commerce Essay
Built on a foundation of great beer brands and more than 288 years of brewing heritage, MillerCoors continues the commitment of its founders to brew the highest quality beers. MillerCoors is the second largest beer company in America, capturing nearly 30 percent of the U.S. beer sales. Led by two of the best selling beers in the industry, MillerCoors has a broad portfolio of highly complementary brands across every major industry.
Miller Light is the great tasting beer that established the American light beer category in 1975, and Coors Light is the brand that introduced consumers to refreshment as cold as the Rockies. MGD 64 completes the company’s premium light beer portfolio offering consumers fresh, crisp taste at just 64 calories. MillerCoors brews premium beers Coors Banquet and Miller Genuine Draft; and economy brands Miller High Life and Keystone Light. The company also imports Peroni Nastro Azzurro, Pilsner Urquell, Grolsch and Molson Canadian and offers innovative products such as Miller Chill and Sparks. MillerCoors features craft brews from the Jacob Leinenkugel Company, Blue Moon Brewing and the Blitz-Weinhard Brewing Company. MillerCoors operates eight major breweries in the U.S., as well as the Leinenkugel crafts brewery in Chippewa Falls WI and two microbreweries, the 10th Street Brewery in Milwaukee and the Blue Moon Brewing Company at Coors Field in Denver.
MillerCoors vision is to create America’s best beer company by driving profitable industry growth. MillerCoors insists on building its brands the right way through brewing quality, responsible marketing and environmental and community impact. MillerCoors is a joint venture of SABMiller plc and Molson Coors Brewing Company.
MillerCorrs feels they have an obligation to remain and become increasingly competitive. They want to shape their future legacy through its vibrancy and excitement. They will need to step up the rate of Operational Performance to lead the way in MillerCoors operation to be the best of the best. They want a work environment that adapts rapidly to change, and enables individual and team ownership and contribution. They want to achieve World Class Manufacturing. The teams will set their own performance targets, plan its own work and measures it own performance, based on the business needs.
One goal is to have effective two way communication with true sharing of information. Teams have shifts, daily and weekly meeting to review performance, problems solve and action plan. Another goal of there’s to ensure that there is no long lasting problem they have a policy that says that no problem goes unresolved for more than 24 hours.
After Miller and Coors combined, they set financial goals that they want to meet for the first five years of business. The two companies projected the merger to save the companies up to $200,000,000 the first year. According to Jeff jolly, chief engineer at MillerCoors the first year goals have already been met. The overall synergy of the two companies has allowed them to practice better safety, have better quality and improve overall customer service.
Organizational culture is the behavior of the society. The concept of culture is predominantly important when attempting to administer a wide organizational change. Understanding the importance of culture is to realize that, despite the best-laid plans, organizational change must include not only changing structures and processes, but also changing the corporate culture as well. Corporate culture, system of shared beliefs and values, develops within an organization and guides and monitors the behavior of the company’s members. All companies have their own individual corporate culture, but miller corporate characteristics are based on the philosophy of the company that makes them stand out in the marketplace.
Culture within companies has the capability to control attitudes, strengthen beliefs and actions, and produce the motivation for certain performance objectives (Ferrari, 2001). It can also help to promote positive behavior and call attention to the negative aspects of poor behavior within a business. Culture is an influential aspect of all top ranked firms, which enables all employees to function in a positive manner. Many of today's organizations are working toward increasing a friendlier environment. It is of strong belief that makes people in an organization a priority, which will lead to a more successful business in the long run (Ferrari, 2001).
Since the merger of Miller lite and Coors, the much respected management incorporated the 5s’s to have a well-rounded cultural structure (Ferrari, 2001). The 5s is a visually oriented systematic process of cleanliness, organization, and arrangement designed to improve personal safety, quality and productivity through the elimination of wasteful activities. The 5s’s stand for sort, simplify, systematically clean, standardize, and sustain. Standardization is very important from an organizational cultural standpoint. It shows high results in schedule compliance and inventory reduction. MillerCoors Company’s culture has a continuous improvement that can always do a better job, but they benchmark externally to achieve their highest potential.
Since the merger of Molson Coors and SAB Miller, MillerCoors prides itself on their rationalized chain of command and operations. MillerCoors evolved from a traditional pyramid top-to-bottom style management, to a new horizontal team style management. Jeff Jolly, chief engineer of MillerCoors in Irwindale says that his job has become less stressful and more efficient through the implementation of their new World Class Manufacturing (WCM) team method. “WCM moves decision making down to the appropriate levels. It makes things easier and more efficient by putting accountability at the appropriate level… the teams are autonomous workgroups comprised of all appropriate members like safety managers, operations control, and technicians,” says Jeff Jolly (Ferrari, 2001).
MillerCoors carefully lays out its expectations of each team, the team function and structure, and the benefits and purpose of teams. The purpose of the teams is to ensure effective and sustainable implementation of the manufacturing way. Leading and managing change is the basis for managing the establishment of the “new way of work” resulting from the WCM change effort. MillerCoors’ philosophy of teams is to provide and understanding of the process of organizational change and transformation. They want to develop appropriate skills to prepare and manage effective change implementations at an organizational, team, and individual level. They strive to develop appropriate skills and techniques to deal with the human impact of change. This will ensure change management principles embodied in the WCM implantation plans/processes. The benefits of teams will provide: stability, consistency, and ownership; improved decision making and problem solving when team members are involved; individuals with a greater ability to influence things that affect team and their work; integrated support and accountability between Operator, Craft, and other Team Members (Ferrari, 2001).
There are also general and specific responsibilities of the teams. Some of the general expectations are: teams own and operate their process area as a business, teams are cohesive and members share responsibilities while supporting and valuing each other, conflict is to be handled constructively keeping team morale high, and employees should enjoy their work, be engaged, and feel “ownership” of their performance. Some of the specific responsibilities of the teams include: daily level 2 meeting review of SPQSC for the unit, asset care planning and execution, production and material planning and execution, quality assurance management, formal failure analysis, gap list management, custodian for performance management, competency acquisition process, review trends and react and solve problems using short interval control and other processes, communicate and participate in team activities, and demonstrate self-management practices (Ferrari, 2001).
In terms of team goals the team sets its own performance targets, plans its own work, and measures its own performance based on the business needs. There is effective two-way communication with true sharing of information and gathering information for team decision-making rather than just management reporting. This is the type of new change that lifted stress and time off Jeff Jolly because he no longer had to hold each employees hand in his department and report decisions for them. The teams agree that no problem goes unresolved for more than 24 hours. Any data is used to drive all decisions along with the teams adding their knowledge. They have shifts, daily and weekly meetings to review performance, and action plans to drive improvements. The teams are constantly aware of the model to eliminate any and all waste.
Diversity in the Workforce
MillerCoors believes in celebrating diversity and inclusion enriches our brewery communities, businesses and experiences (SAB Millers, 2010). They’ve created programs that help develop supplier diversity, a greatly skilled and diverse workforce, and diversity awareness and education. MillerCoors has made investments and partnerships with all the different races and even the gay/lesbian community (SAB Millers, 2010).
MillerCoors has worked closely with African-American organizations on various programs, from civil rights, advocacy, economic development, and employment, to sponsorships, scholarships, and leadership and youth development initiatives (SAB Millers, 2010). MillerCoors works to increase opportunities for African-Americans through education and entrepreneurship. Two programs in particular help them reach these goals.
The Thurgood Marshall College Fund, an organization, provides four-year merit scholarships to students attending the 47 historically black public colleges and universities (SAB Millers, 2010). Since 1987, the program has awarded more than $60 million in scholarships and support to students and member schools. Since 1999, they have provided hundreds of up and coming entrepreneurs’ tools to succeed in taking their business to the next level.
MillerCoors was the first company in the country to make economic development changes aimed at increasing opportunities for Hispanic businesses and investment in Hispanic communities. They have invested more than $1 billion in corporate contributions, banking and financial work, procurement, advertising, marketing and public relations (SAB Millers, 2010).
MillerCoors supports collaboration and partnership with the lesbian, gay, bisexual and transgender (LGBT) community, and we’ve developed national and regional initiatives to support LGBT employees and causes (SAB Millers, 2010). Annually, they support a broad range of health and AIDS causes, society groups and pride events all over the country. Inside our business, they provide sensitivity training and offer educational, social and support opportunities. They also received the Matthew Sheppard Foundation’s Essential Piece Award in 2009 (SAB Millers, 2010). There’s one other commitment MillerCoors share. They believe in diversity and fair treatment on every front at MillerCoors. That dedication is unwavering. They recognize and appreciate the similarities and the differences; they bring creativity, innovation and new perspectives to their workplace, customers and brands (SAB Millers, 2010).
The Organization’s Leadership
For integrity and talent alone, the executives have earned the respect of their industry peers, of employees they’ve led, and of the marketplace. They’ve managed a wide range of brands successfully. They have created value for investors of large and small and brought satisfaction to beer drinkers of every stripe. They’ve earned their way for years through organizations with similar structures and strategic priorities. They are steadfast stewards of diversity, sustainability and responsibility.
MillerCoors’ leadership team is focused on building the best beer company in America. It will take their industry-leading brands they have today to new heights, and captain their company through the exciting innovation and change MillerCoors predicts for years ahead.
“Leadership is currently being lead by Molson Coors which are evaluated based on synergy savings that the two companies promise their shareholders,” says Jeff Jolly (Ferrari, 2001). MillerCoors obviously instills much expectation and responsibility on the leaders of its corporation. The team leaders are adequate in their field and have earned their position as a leader in MillerCoors. MillerCoors leaders are passionate about the beer business. They always work to do the little things that make a big difference for the customers. They share a strong commitment to responsibly brew, bottle and market a portfolio of great beers that can satisfy all beer drinkers.
Within the MillerCoors Company there are many factors that bring this company together to make them very effective. Through the combination of talented people, great leadership, and a striving combination of two companies there is a shared common goal on becoming the best American beer company. To reach this overall effectiveness the company believes that in order to become the best beer company the consumer is the one that will make them the best. However, in doing so beer is not for everyone, every time or every place because as a leading brewer, MillerCoors promotes the responsible enjoyment of their beer.
Just by looking at the countless awards that have been won by MillerCoors you can say that they are very effective, however MillerCoors does much more than just make great beers that win awards. MillerCoors puts their very best in every bottle they make but by doing this they know there are other factors that will make them the best brewing company. For decades MillerCoors has created programs and educated consumers so they can make the right responsible choices. With their slogan “Great Beer, Great Responsibility”, which is really stated with great beer comes great responsibility they strive everyday to respect their consumers, their community, and especially the planet (MillerCoors Inc, 2010). First and foremost they whole heartedly believe in alcohol responsibility and everything that goes along with it such as drunk driving. There are many ways that MillerCoors gives many options to help the consumers and community to make the right choice while drinking. MillerCoors have set up programs such as with 1-800-TaxiCab, which is easy to remember, and it encourages consumers to take a cab (MillerCoors Inc, 2010).
In addition to the community MillerCoors cares about the environment as well. They recognize that they have a great responsibility for how they brew their beers. From water usage and packaging sustainability to brewery waste and energy consumption, they are always looking for ways to lessen their impact on the environment. They strive to make more beer while using less water and 98% of their brewery waste is reused or recycled. MillerCoors environmental sustainability commitments span across every aspect of their business from the grain that is a vital ingredient in their beers to the glass that holds the finished product for the consumers.
With all of these factors that make the company effective like they are today the only way this all comes together is because of the employees. The employees enjoy coming to work every day and are able to freely make suggestions for improvement that are acted upon with feedback and closure. The reason the employees are effective is because MillerCoors takes it upon them to put Safety and Quality as the highest priorities within the company. However, the most important reason why MillerCoors is effective is because their distributors get the product they want, in the quantity they want 100% of the time (MillerCoors Inc, 2010).
Recommendations Based on Theory Learned
Since the Merge it is very hard to make any improvements or recommendations towards this company because of the success that they have reached. However within the company they are very determined on making great beer by the motivation of money. But to some people money is not the number one need to them, some people have other needs. In Maslow’s need hierarchy theory there are certain needs that people want to have such as social needs. MillerCoors says that with Better Performance and Better Results equals Better Pay. They never talk about people’s social needs all they feel that is important is money and their safety needs to have it. What MillerCoors needs to have is social events such as picnics that bring everyone together to socialize with coworkers and their families. By bringing the employees together they will form a type of unity that will even further develop a better company such as MillerCoors.
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