Coca Cola As The International Organization Commerce Essay

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Founded in 1886, Coca Cola is the worlds leading manufacturer, marketer, and distributor of nonalcoholic beverage concentrates and syrups, used to produce more than 300 beverage brands. There corporate headquarters are located in Atlanta, with local operations in over 200 countries around the world. It was not until 1899 when the first bottled Coca Cola was produced was it the start of the world famous drink as we know it today. Coca Cola is a world.

The Coca Colas mission is to provide refreshment and benefit to everyone it touches and the objectives and aims are:

To try and help bring more education to Africa by donating money into schools and charities. By doing this, it makes the company seen as concerned for people that are in needs and people are most likely to purchase their product globally because of the help. Also building an integrated team operating with heightened focus on corporate governance and financial transparency. Source:

For this report I selected Coca Cola and Nike Inc as the second multinational organization to compare them and elaborate the question to us.

Coca cola and Nike, Both are a multinational corporation business that maintains a presence in two or more countries, and both organisations have a considerable portion of its material goods invested and derives a large portion of its sales and profits from international activities, considers opportunities throughout the world, and has a worldwide perspective and orientation. Coca Cola and Nike, Inc. are two different organisations which come from different industries. Coca Cola produces mostly soda drinks, while Nike Inc. produces shoes and clothing, and accessory. Each organisation has its own mission statements, major goals, and external environmental factors influencing them. Each organisation has some kind of a relationship between its mission statements and major goals. First of all the external factors that are influencing both organisations are also related to each organization's major strategies. In any industry, five competitive forces state the rules of competition. Together, these five forces determine industry profitability because they directly influence the prices individual firms can charge, their cost structure and their capital investment requirements (Robbins et al 2000).

One of Nike's now famous mission statements is to bring inspiration and innovation to every athlete in the world (Nike, Inc. Annual Report 2001). Based on our own awareness, another famous Nike's famous mission statement was, "crush Reebok and Adidas". Instead, Nike could have stated their mission as, "to be the best shoe company with the best customer service", but that would have done little to motivate the crowds.

Based on Coca Cola Annual Report 2001, the mission statement of Coca Cola Company is simple, solid and timeless. It brings refreshment, value, joy and fun to their stakeholders. Coca cola is also very protective to their brands. It is the key to fulfilling out ultimate requirement to provide constantly attractive returns to the owners of the company. Fundamental to Coca Cola success was a commitment to the highest standards for product quality a commitment that remains a trademark for the Coca-Cola system today. Based on Coca Cola Annual Report 2001, they produce nearly 300 brands in almost 200 countries.

Every company needs to have several major goals for the future. These are usually quantitative goals such as to increase sales by a higher percent or to increase profit by a much higher percent, but they may be qualitative goals such as to improve the quality of a product or customer service. It is very important to have very little major goal, otherwise, with too many goals; the company will lose focus and be less likely to hit any of them.

Nike's first major goal is to build a critical mass of formal and informal leaders. Secondly is to share learning and best practices company wide. Thirdly is to create a common language, framework, and vision for sustainable business practices. Fourthly is to improve employee morale, resulting in increased employee retention, job satisfaction, and productivity. Fifthly is to enhance the company strategic advantage through sustainable designs and innovations. (Nike, Inc. Annual Report 2001).

The company's aim to create a working environment free of discrimination and harassment with respect to race, sex, colour, national origin, religion, age and disability. They also have commitment to make reasonable accommodations in the employment of men and women, who are qualified with disabilities In addition, to trying to create a working environment related issues could be raised freely. The whole idea of the open door policy is to provide an effective and timely means for all company associates to find solutions to work related questions, problems, and concerns that may affect the culture of the organization.

The relationship between Nike's mission statements and major goals is that, both mission statements and major goals mention innovations and improvements for global image and athletes around the world. Therefore, mission statements and major goals of a company can be similar to each other. Coca cola major goals and mission statement almost the same which is to be known worldwide and always can expand their company. Coca cola also has a big concern for the employees; they want their employees to live in a proper way and have a proper standard of living.

Every company must have influence caused by its external environmental factors. Generally, external environmental factors are aspects that come from the outside environment of the company, which give huge influence on the company's production. Like most companies, Nike has external environmental factors manipulating its production.

The major strategy that Nike pursues is to develop a worldwide marketing of high quality products involving factors from the outside environment. This is how its external environment linked to the strategy of the company. Nike is trying to be the best of all footwear companies, such as Reebok and Adidas, by getting help from its external environment, as well helping the external environment itself. Using such a way, Nike is getting more and more of people's attention around the world, and more people will buy Nike's products. Source:

Their strategy of running the business is concerning of all of the Coca Cola and Nike companies which are all around the world. They have a very good strategic of planning for success of the companies. Almost all of the Coca Cola strategies are already been fixed or implanted for a long time. That is why Coca Cola Company can be very successful comparing to the other Beverages Company and Nike is also more successful than other footwear companies.

Culture of any business is important of to be followed properly because, if the culture of the business is not followed, it can affect the number of absenteeism and punctuality. This means that if Coca Cola had a hard and unfriendly culture it can force their staff not to come to work because they might be picked on every day by other staff members, or they might not like the work they are given so they either come in late or take a day of work. This would result in the business losing out on work, and have less time to call in for a replacement.

The culture of Coca Cola could have an effect on industrial relations, between managers and workers. So if Coca Cola didn't have a warm and genial culture it would cause more disagreements between staff and managers and staff would not be motivated to work, for example, staff may have to cut down on rest days, this could cause arguments as all staff would be tired from working everyday and would not have time to recover or spend it with their family.

However in other hand, if the company had a warm and welcome culture then the managers and staff would get very well as staff would have less stress to compete with and would have a friendly environment to work in without having someone constantly shout out at staff.

Democratic style is the management style that coca cola adopts. This sort of management style involves empowerment. In this management style individuals and teams are given responsibilities and decisions to make, usually within a given framework. If anything wrong happens then the individuals and teams are then held responsible for the decisions that are chosen.

With this type of management styles it allows the manger to feel comfortable with other people in the organisation making some of the decisions. Democratic mangers will often want feed back from their employees on decisions.

Democratic leaders listen and act on the opinions of the group. This type of management is good as it makes the employees happy and productivity is high. This is very good because employee's thoughts and suggestions are listened to by the business. This makes the employees seem as if they are respected and that they thought are valid.

Coca Cola believes in a healthy work-life balance and our Company works diligently to help ensure this is a reality for our associates. Also offer associates training and workshops on time management and provide flexible work arrangements in some areas of the business; further more provide tools and resources to allow work to be done efficiently and effectively in a normal workday.

Motivation Theories-Maslow's Hierarchy Of Needs Theory And Mcgregor's Theory X &Y To Increase The Productivity Of Staff.

Motivation is the "total propensity or level of desire of an individual to behave in a certain manner at a certain time."(P. 71 Dixon, 1997) Also, it can be defined as the "willingness of an individual to respond to the organization's requirements in short run."(P.71 Dixon, 1997) Motivation is important to productivity. Getting good results in motivating staff can also results in high productivity. Why motivating staff is the most difficult task for any kinds of managers? It is because "individual behaviour is a complex phenomenon"(Davidson et al 2005,p.304) A manager must "make motivating workers as an integral part of job "(Harvard Business School Press, 2005, P.3) if they want to build a successful company. By increasing the motivation level of a worker, we must know our workers' needs and perception. Needs can be defined as unrealized desire and perceptions can be defined as the present and expected impression of workers' place in the company.(Dixon,1997,p.72) In order to motivate my workers, I must know their needs and perceptions. I would choose Maslow's hierarchy of needs theory and Theory X&Y to understand their needs, then to motivate them to perform at his or her highest level.

According to Maslow, a person's needs are the main motivator that drives a human. He categorized the needs of a person into 5 levels. They are physiological needs, safety needs, social needs, esteem needs and self- actualisation needs respectively.( in ascending order) As the needs on lower levels fulfilled, the upper level needs act as motivator and the person would like to satisfy the upper level needs.

Motivation begins with the employee's needs. If needs are not met, then consciously or unconsciously, goals are created and action is taken to achieve these goals. Each individual has its own personal needs, for example, some may need variety in the workplace, some may need to work with friendly colleagues, and most need to feel appreciated for their work to feel motivated. It is important for a business to motivate its employees. In the short term, a lack of motivation may lead to reduced effort by the worker and lack of commitment. In the long run, such a lack of motivation may result in high levels of absenteeism, work environmental disputes, and consequentially resulting in falling productivity and profit for the business.

Theory X

Workers are motivated by money

Workers are lazy and dislike work

Workers need to be controlled and directed by management.

Theory Y

This theory is based on the premise that work is necessary to a person's psychological growth.

Workers have many different needs which motivate them

Workers can enjoy work

If motivated, workers can organise themselves and take responsibility

Management should create situations where workers can show creativity and apply their job knowledge.

[Hall, et al. 2000]www.


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