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Coca Cola is one of the leading manufacturer of the carbonated drinks all around the world . Over the past decades , the Coca Cola remained on the top of the industry . The company was able to withstand the World War II and even took it as the business opportunity rather than a liability . It was even able to surpass the Asian Financial Crisis and even gained better access in the markets that it was not able to fully enter . Coca Cola exhibited the efficient change management as the part of the strategic management process . Change management is the process in which it manages the change in the side of the people . Their individual change management and the organizational change management are the theories of the change management . Aside from the theories , there are also four strategies of the change management which are the Empirical rational , the normative reductive , power coercive and the environmental adaptive which the company has been successfully adopted but it is now facing major jolts in its business operations and the competitors are gaining the advantage out of the same .
Based on the above case-let , analyse the position of the company with respect to :
Coca-Cola Corporation Management Strategies with respect to its technological advancement in 21st centaury .
Change in Information System due to changes in the world -wide market structures .
Management Styles at Coca-Cola
The success that the management team has in motivating its employees to meet their objectives is based on the management style they adopt . There are three main management styles democratic , autocratic and the laissez-faire style . The democratic leadership style consists of the leader , sharing the decision making abilities with the group members by promoting the interests of the group members and by practicing social equality . The authoritarian leadership style or autocratic leader keeps strict , close control over the followers by keeping close regulation of the policy’s and procedures given to the followers . To keep main emphasis on the distinction of the authoritarian leader and their followers , these types of the leaders make sure to only create a distinct professional relationship . The laissez-faire leadership style was first introduced by the Lewin , Lippitt and White in 1938 , along with the autocratic leadership and the democratic leadership styles . The laissez faire style is sometimes described as the ” hands off ” leadership style because the leader delegates the tasks to their followers , while providing little or no direction to the followers .
The North London Coca Cola branch has ethos or culture than is run in the’ laissez-faire’ style meaning the ‘ hands off ‘ approach . If the workers are meeting their KBI , Key Business Indicators , then the managers and the directors of the company take this relaxed style of coordinating their business . They have a vision to ‘ refresh everyone everyday ‘ and the values to take pride in their work , to be honest , fair and determined to win and have a passion for the action . With the same spirited investment as the world’s premier marketer and beverage industry leader for more than 118 years , Coca Cola are focused on the strategic workplace programs that help assure the success of our commitment to embracing the similarities and differences of the people , cultures and ideas .
Diversity Advisory Council – the Company’s corporate Diversity Advisory Council consists of the representative group of employees from all the levels , functions and the business units of the organization . The Council develops recommendations for all the senior management on advancing the company’s efforts , towards achieving our diversity objectives .
Employee Forums – Coca Cola believe that the sense of community enhances their ability to attract , retain and develop diverse talent and ideas as the source of competitive business advantage . In the United States , through employee forums , the employees can connect with the colleagues who share similar interests and backgrounds .
In these forums and elsewhere , the employees support each other’s personal and the professional growth and enhance their individual and collective ability to contribute to the company . The success at Coca Cola is due to their laissez-faire culture and the culture is important because it can affect the people and the things to do with the business . If the culture of the business is not clear, it can affect the presence and the punctuality . This means that if Coca Cola had a firm and unfriendly culture , it could result in their staff not coming to work because of the poor working atmosphere , or they might not like the work they are given , so they either come in late or take the day of work . This would result in the business losing out on the work and have less time to call in for the replacement .
The culture of the Coca Cola could have an affect on the industrial relations between the managers and the workers. So if the Coca Cola didn’t have a warm and genial culture , it would cause more disagreements between the staff and the managers and the staff would not be motivated to work . For example staff may have to cut down on the rest days , this could cause arguments as all the staff would be tired from working everyday and would not have time to recover or time to relax down . However if the company had an inviting culture then the managers and the staff would get very well as the staff , would have less stress to compete with and would have the friendly environment to work in and the work could be done more efficiently .
‘ Team working ‘ is the sub culture within the Coca-Cola Company . Teams are accountable for the activities like :
· Utilisation and
Within the system , there needs to be a balance of Utilisation , the speed the factory works at and the Yield . The ‘ Yield ‘ is the amount of raw materials lost or wasted . Teams also vary in the number and are lead by the team leader .
A part of the culture and the management style in the Coca Cola Company in Edmonton , is its ‘ Employee Engagement ‘ .
This consists of the following five points :
* Realizations , delivery of the hard stuff is simply not enough .
* Openly acknowledge this to the workforce .
* Do what it takes to engage every employee in the space of 16 days .
* Involved everyone in the design of the management style consistent with our vision and the values .
* Identified talented individuals across the operation act as the internal facilitators to train out the new behavioral standards .
On the factory floor at the Coca Cola , there is an autocratic system of the management where the employees are controlled by the managers and follow their procedures . There are also the elements of the democracy by the team work and uniform . Employees of the company all wear the same uniform , even if they are a manager , a director or a team leader . This means that there is no demarcation and there is the same uniform for the each level of the hierarchy , so nobody feels intimidated . The CCE have also adopted a ‘ Quality Culture ‘ and to maintain the quality within their products , they have the TQM department . This means the Total Quality Management where they have the staff , who deals with the quality of the Coca Cola .
TECHNOLOGY ADVANCEMENT AT COCA COLA
Over the past decade , the Coca Cola Company has invested around $60 million in the research and development to advance the use of the climate friendly , hydrofluorocarbon (HFC) free cooling technologies . HFC gas is the well known contributor to our planet’s global warming . The Company has improved their energy efficiency of the cooling equipment by around 40% , transitioned to HFC free insulation foam for the new equipment , eliminating around 75% of the direct GHG emissions and is phasing out the use of HFCs in all the new cold-drink equipment as of 2015, with more than 500,000 units of the HFC free refrigerated equipment already in use throughout the Coca Cola system .
In the bottling plants , the Coca Cola has stabilized the emissions system wide and is working to return to the 2004 levels , while also achieving the 5% absolute emissions reduction below the 2004 baseline in the developed countries by 2015 , with the commitment to ” grow their business without growing the carbon ” in its manufacturing operations .
Till date , the Coca Cola system has improved its energy efficiency of the global manufacturing operations by around 14% since 2004 . In 2010 the global greenhouse gas emissions from the manufacturing were reduced by around 2% , even as the sales volume increased by 5% . The emissions reductions can also be realized outside of the plant walls where the Coca Cola operates the largest heavy duty hybrid electric delivery fleets in North America with more than around 700 hybrid electric delivery trucks on the road . These trucks reduce fuel and the emissions by nearly 30% . There also are more than 800 light duty hybrid vehicles deployed in North America for the sales representatives .
The Company also participates in the consumer facing cause campaigns related to the climate protection measures . In 2011 , with long-term conservation partner WWF the Coca Cola Company helped launch the Arctic Home , the largest cause marketing initiative ever executed by the Company or WWF . Active in the US and Canada , the campaign aimed to raise the widespread awareness and the funds to help protect the polar bear and its habitat .
On related fronts , the climate change will alter the amount of available fresh water , further increasing demand for this critical natural resource . The sustainability of the Coca Cola Company products depends on the reliable access to the sources of water , as water is the main ingredient in every product the Company makes . It also is critical to the agricultural ingredients for its beverages . The Company set a global goal is to safely return to the nature and communities an amount of water equivalent to what is used in its beverages and their production by 2020 .
To achieve this goal , the Coca Cola is focused on reducing its water use ratio , while increasing the product volume , recycling the water used in the manufacturing processes and returning it to the environment at the level that supports the aquatic life and replenishing or offsetting the water used in the finished beverages by participating in locally relevant community water projects . The Company is also working in innovative the ways to prevent waste over the life of its packaging . In 2009 , the Company launched PlantBottle packaging , the first ever fully recyclable PET plastic beverage bottle made partially from the plants . In 2011 , the Company introduced more than 6 billion PlantBottle packages in the 20 markets , helping save the equivalent annual emissions of around 100,000 metric tons of the carbon dioxide . By 2020 , the Company’s goal is to use the Plant Bottle packaging for all of its PET plastic bottles .
INNOVATION AT COCA COLA
Coca Cola has been able to survive in the this changing market because of its ability to systematically innovate and to deliver the new products . It was apparent that the market was changing and in order to keep up with these changes , the Coca Cola had to move from the single core product to the total beverage company . The company began operating in the decentralized environment that was unfeasible in the previous years . Now the Coca Cola offers around 400 different products and is dominating the beverage industry . This is made possible by the company’s ability to innovate and adapt to the changing markets .
Technology is continually changing the business and these constant changes have been making it more feasible and profitable for the businesses to expand their operations globally . Now the Coca Cola is taking the advantage of the large revenue opportunities , made possible by participating in the global market and it now offers products in nearly 200 countries around the world .
TECHNOLOGICAL ANALYSIS :
Technological Analysis for the Coca-Cola :
Technological change creates the opportunities for the new products and product improvements and of course the new marketing techniques . Some factors that cause company’s actual results to differ materially from the expected results are as follows :
The new technology of the internet and television which use special effects for the advertising through the media. They make some products look very attractive . This helps in the selling of the products .
Introduction of the cans and the plastic bottles have increased sales for the Coca Cola as these are very easier to carry and one can easily bin them once they are used .
Due to the introduction of these machineries , the production of the Coca Cola company has been increased vastly then it was a few years ago .
The Coca Cola has started the operations of its R&D facility in India , with a view of localizing its product portfolio . The major focus would be on the non carbonated drinks and the flavours . The company’s R&D team has already rolled out the drinks such as Maaza aam panna and also athe Maaza mango milk drink and is also exploring the options to enter some new categories in India such as the juices in the localised flavours , energy drinks , sports drinks and the flavoured water . These initiatives are taken by the company to further expand their product portfolio . With the increasing importance of the 360 degree media tools and the overall ad spend on the social media sets likely to grow by around 44% , the Coca Cola has increased its ad spend on the internet . The case in point is the recent 2009 Sprite campaign , which was first launched on the internet .
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