Changes Made By Coca Cola Commerce Essay


Coca-Cola Company is the world's largest beverage company which markets four of the world's top five leading soft drinks known as Coke, Diet Coke, Fanta and Sprite. It is also sells other brands including Powerade, Minute Maid and Dansani bottled water. Furthermore, the company operates the largest distribution system in the world, which facilitated it to serve customers and businesses in more than two hundred countries. Besides that, Coca-Cola estimates that it is more than one billion servings of its products are consumed everyday. On its early history, Coca-Cola focused on cultivating markets within the United States.

The Coca-Cola Company is an American multinational beverage corporation and manufacturer, retailer and marketer of non-alcoholic beverage concentrates and syrups. The company is best known for its flagship product Coca-Cola, invented in 1886 by pharmacist John Stith Pemberton in Columbus, Georgia. The Coca-Cola formula and brand was bought in 1889 by Asa Candler who incorporated the Coca-Cola Company in 1892. Besides its namesake Coca-Cola beverage, Coca-Cola currently offers more than 500 brands in over 200 countries of territories and serves over 1.7 billion servings each day.

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The company also operates a franchised distribution system dating from 1889 where Coca-Cola Company only produces syrup concentrate which is then sold to various bottlers throughout the world who hold an exclusive territory. The Coca-Cola Company owns its anchor bottler in North America, Coca-Cola Refreshments. The company is headquartered in Atlanta, Georgia and United States. Its current chairman and chief executive is Muhtar Kent.

Changes made by Coca-Cola

In sourcing

Since companies make strategic on the delivery of human resources (HR) services either to in source, outsource or co-source, change management has been well documented as a success factor in HR business process outsourcing (BPO). In spite of this, the strategic tactics for complex global implementations are less well known. A recent project at the Coca-Cola Company that had a liberal global footprint of 102 countries, including global service center support from Aon Hewitt endows with a blueprint for successful change management.

Coca-Cola Company then, begin in sourcing North America HR operations to shared services in 2001 and gradually added some international operations as the opportunities presented by themselves during the subsequent eight years. The joint BPO project began in May of 2009. The overall scope for outsourcing or in sourcing was divided as such:

In source: Benefit, compensation, employee relations, employee separation, talent acquisition, learning and development, mobility, payroll, performance and time and attendance.

Outsourced to Aon Hewitt: Family and Medical Leave Act (FMLA), health and wellness benefits administration and short-term disability (North America only), learning administration, new hire integration, performance management administration, talent acquisition administration, workforce administration.

The decision has been made basically on what to in source and what to outsource was based on a detailed analysis of what would be both more effective and more efficient in the existing shared services operation versus Aon Hewitt.

Restructuring the mess

In 1999, following the merger of Coca-Cola's four bottling operations which are Hindustan Coca-Cola Bottling North West, Hindustan Bottling Coca-Cola Bottling South West, Bharat Coca-Cola North East, and Bharat Coca-Cola South East, human resources issues expanded significance at the company. Two new companies, Coca-Cola India, the corporate and marketing office, and Coca-Cola Beverages were the result of the merger. The merger brought with it over 10,000 employees to Coca-Cola, doubling the number of employees it had in 1998.

Coca-Cola had to go in for a massive restructuring exercise focusing on the company's human resources to guarantee a smooth acceptance of the merger. The first task was to put in place a new organizational structure that vested profit and loss accounting at the area level, by renaming each plant-in-charge as a profit center head.

The country was divided into six regions as against the initial three, based on consumer preferences. Each region had a separate head (Regional General Manager), who had the regional functional managers reporting to him. All the Regional General Managers reported to VP (Operations), Sanjiv Gupta, who reported directly to CEO, Alexander Von Bohr (Bohr).

Both Coca-Cola and Dabur acknowledged the fact that a major change on the human resources front was predictable, although the changes in the two were necessitated by radically different circumstances. More importantly, the restructuring seemed to have been extremely beneficial for them. Besides it assisted improved morale and reduced employee turnover figures, the strategic, structural and operational changes on the HR front led to an overall "feel-good" sentiment in the companies.

Managing diversity in the company

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Coca-Cola Company gains two important assets which are built around, its brand and its people. These two assets give many opportunities to keep the employee to refresh the world in mind, body and spirit. It inspires moments on making a difference, optimism and to generate value. Coca-Cola developed their ability to comprehend, embrace and operate in a multicultural world as it is a global business both in the market place as well as in the workplace. It is hard to sustain yet it comprehensive culture which being defined by seen important and core values which are leadership, passion, integrity, innovation, collaboration, quality and accountability. Besides that, this strategy combines all the programs to attract, retain and develop diverse talent. The purpose of it was to grant support system for group with different backgrounds and educate all associates therefore employees can master the skills to accomplish sustainable growth.

Other than that, Coca-Cola Company views diversity as respecting individuals, valuing differences and representing their consumers and where they do their businesses. In addition to that, they also centered and focused on the strategy of diversity which is being represented by 4 C's;driving consumption, fostering commitment, building a culture and providing effective communication and mutual understanding.

Coca-Cola Company put its hard work to make sure a comprehensive and fair work environment for the associates. The employees are given undergo diversity training on a regular basis where it includes on going dialogue that leads to better perceptive of colleagues, suppliers, customers, stakeholders and ultimately to better success in the market place.


Conclusions and Recommendations

In the nut shell, even though Coca-Cola has been subjected to maintain criticism by both consumer groups and watchdogs, it is still manage to find ways in order to stay in the business. The spirit of the company itself let them gain much benefits and opportunity to improve its company and stay being competitive among those strong competitors.

The spirit of Coca-Cola Company challenges other companies to improve their ways of organizing and managing their resources instead of just letting go all the competitive advantages in them. With this strength it has, Coca-Cola Company had been recognized and become among the earliest well-known multi national company.

Moreover, Coca-Cola always seeks for the opportunities in expanding it businesses. It constantly finds a way out in every difficulty they faced. Even there are many provocations and boycotts had been made for several times, yet look on how they determined the problem and find the solutions to sustain and stay in this industry.

To one side, it is recommended that Coca-Cola should sustain and maintain their reputations in order to stay far in this industry. Even though Coca-Cola Company is well-known but it is not possible to them to be at the bottom some day. Besides that, it must also ensure and make a follow up regarding the changes that had been made. This is because certain changes can only be implied in a temporary period and it cannot lasts in a long term way.