Knowledge Management Of An Company Commerce Essay

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This research paper discusses about the knowledge management of an company and describes the result of an organization which uses knowledge management. The main application and objectives which are used for understanding the project of an organization and the problem faced by organization is to discuss about the issues and the characteristics of a particular organization, methods and techniques used for controlling the computer based structures and implicit complication of knowledge management. The application and theoretical contents contain knowledge management learning in corporate field consequences that helping the corporate sector. The conclusion is derived completely on steps of an organization and business improvement for an organization using knowledge management

(1). Introduction:

Something was happening in the global business day to day. Knowledge management was crucial thing for any organization's growth and success. It will influence business analysts, economists, and government (Bahra, 2001). Knowledge Management guide to evolution the experience of the organization which produce the value of the knowledge. Knowledge management is increasingly recognized as an essential element of a business approach. For increasing the business process and to improve the performance the original knowledge management is especially involved within the information technology. Databases are used for storing and analysing in collection of information. The consecutive developments of the knowledge management have troubled less data and several management learning. The interesting level of the knowledge management expresses in the number of huge association which are created position of chief knowledge officer. The Knowledge Management Firms are introduced by US government of Federal Knowledge Management Group (Grant, 2005).

Coca-Cola is the world leading Beverages Company, who maintain, securing, and developing knowledge management. This research will describe how this global organization developing their process of performance measurement to achieve long-term goals and gain competitive advantage. "Performance measurement is a key factor in ensuring the successful implementation of an organization's strategy" (Fitzgerald, 1991, Neely 1998).

(2). Literature review:

This literature review was based on the theories and methods to discuss and evaluate total knowledge management process occurred in global organization and also can emphasize how that will gain competitive advantage over other firms in the same industry. This review will also describe various authors and analysts described and analyzed knowledge management to gain competitive advantage. Every aspect has pros and cons. How criticism will helpful to develop knowledge management process to improve the performance.

(2.1). Socio technical perspective:

Knowledge process within the organization was very important aspect. There are different steps in knowledge process called Generation, Implementation, Exploration, and exploitation. The process of knowledge will see in Exhibit: 1. Inimitability and immobility, organizational knowledge is thus seen as a major source of competitive advantage (Grant, 1997). "The term socio-technical was first suggested by Trist (Trist, 1967) to describe a method of viewing organizations which emphasizes the interrelatedness of the functioning of the social and technological subsystems of the organization, and the relation of the organization as a whole to the environment in which it operates" (Emery and Trist, 1965). Knowledge management has multi structured environment includes technology, socio analysis and described in three layered structure (Bressand & Distler, 1995).

1).Physical resources: Software and hardware equipment will be the physical communication between people in different networks.

2).Information structure: This is the information sharing between people in different networks; it may be language or metaphors.

3).Info cultural knowledge: This is the background knowledge used to perform tasks by the actors to achieve organizational goals. This is based on cultural and information sharing.

Knowledge management process will not develop spontaneously or instantly. It has to come with the history of company and people working for that organization governed by history (Shan, 1998).

Knowledge management was continues process of innovation to improve financial performance, technology, and communication tolls and also to face the global competition to sustain or develop.

(2.2). Knowledge sharing:

Application of knowledge will increase the opportunities and also can increase the innovative of organization strength. Nonaka theory of knowledge creation will describe the "Knowledge conversion" (Grant, 2005).This theory will describe the analysis of tacit, explicit, individual, organizational knowledge (See exhibit: 2). Knowledge management is collaborating with individual performance in organization. It was a cyclic process and has to flow along organizational line and goals (Burk, 1999). Viable system model is powerful descriptive and diagnostic tool to map management capabilities to promote viability (Stafford Beer, 1985).VSM describes this process in different functions called individual, work group, and successive category. This model will help to describe existing company structure and also for newly established organizations (See Figure: 1).

VSM addresses the implication in two was. The first one is horizontal relationship to link with environment of customer with the productive operation and its management. The second is vertical link to connect unit management in global organization like Coca-Cola (Stafford Beer, 1985). Organizations, workers both have to upgrade their knowledge levels to fit into environment. It may have short time with high risk factors to achieve short-term and long-term goals of organization. This below graph will explains the knowledge management process priority.


Resource based view of organization will explains how they sharing their tacit knowledge to different segment employees and also for people implementing strategic decision making.

(2.3). Story telling:

Success and failures of large companies to maintain knowledge management will helpful for emergent organizations. They can analyze the problems and come up with respective solutions. These stories are based on how information generated, how it will managed, power of implementation, and innovative re designing. "Knowledge is generated within one project and then lost. Failure to transfer this knowledge leads to wasted activity and impaired project performance" (Leseure & Brooks, 2004). For example Coca-Cola and IBM introduced innovative digital management system gives world wide access to their employees on company marketing and advertising history. Nobody involves telling stories but it will be more interactive to gain knowledge. Sometimes we will do wrong but still we will continue with our work. It's not about learning and also about unlearning (Brown, 2001). However, when people are talking about something they have to think what they are talking about. When telling stories, the motivations are usually reliable, trust, and knowledge (Prusak, 2001).ASHEN model will help to analyze what organization need and directly went to an action of the meaning provided by the language (Bahra, 2001).

(3). Research approach:

(3.1). Company profile:

The Coco-Cola company is the topmost and the biggest drinks organization and organizing its global market in the soft drinks managed to block the segments processes the market for distributing the non-alcoholic beverages which concentrate the worldwide syrups. The Coco-Cola is known as the best and the most valuable organization. And this organization sells about five hundreds of different types of juices, water bottles, tea and coffee and many other products for the people. The computation between the different organizations made the company more popular for a decade. Once again in 2006 company profits has increased a lot and later in 2008 the company has achieved a profit of 2.7billion US Dollars among the world. And these is the information in united states ( )

(3.2). Methods, process, and Techniques adopted:


This area analyzes the methodology of proposal displays research information. And this directly derives about various methods which are involved in handling and conclude the research. These selections of approaches are similar to research approach, research strategy, qualitative analysis, quantitative analysis, and data analyzing. Then we research the 3 stages they are definition, implementation and collection of knowledge. We clearly inserted the data and the state of suggestion which deal with the present position. (Mark, S et. al, 2007).

Research approach:

The decision of the research proposal is an essential factor and event conclusions which present the gathered information. The Researcher must have to understand the research objectives and methodologies which they should implement. This analysis is based on the fundamental approach and gather the statistics for a developed theory arise data analysis. Knowledge has different kinds of research tradition which prepares and analyse the design to produce constraints. (Mark, S et. al.2007)

Qualitative data analysis:

Quantitative data analysis has been gathered non-numerical statistics which are qualified to communicate meanings over words. The data is the product of complete data strategies. This allows the theory to develop and gather the information of Quantitative data analysis for the observation of studies and the interviews. The quantitative data analysis are manually undertaken and there are many different types of the knowledge gathering as interview-mails, electronic version and postal. The different tradition quantitative research and their approaches. There are basically four strategies of qualitative research they are

Understanding the characteristics of language.

Discovering regulations.

Comprehending the meaning of text.


(Mark, S et. Al, 2007) the quantitative data analysis describes the raw data from the people and cannot be understood easily. The knowledge turns to be important information. Several researches have much numerical knowledge about important research answers and questions. The quantitative knowledge is easy to analyse the wrong data of the purpose. The negative side is always available for software analysis which can generate easily There are 3 types of techniques in for collecting quantitative knowledge and for survey methods, experimental methods and observing methods. (Mark, S et. al.2007)

Data collection methods: Data collection methods are of 2 types they are

Primary data

Secondary data

Primary data:

The data collected from the research of the quantitative sources and observations which are interviewing the questionnaire. These observations are of 2 types they are Participant and Structured observation. And the primary knowledge of the organization is directly collected from different sources which consume more money and time. (Mark, S et. al.2007)

Secondary data :

The data which was collected already for other purpose which are subsequently stored. And we can access it easily. The research process of the secondary knowledge is very helpful for information provided by the background of the data. The raw data consists of publishing summaries. In this organization the data is collected and stored in the research operation. The secondary data will be stored in the organization. Secondary data is the main source for some research projects and to answer the research questions. (Mark, S et. al.2007)

Sampling :

The techniques of the sampling provide a range of methodologies which will reduce the data amount and can collect the considerable information from the subgroup in all the possible case of the elements. We need to collect the question from the people of a research for a manageable size. Sampling will alternatively provide survey impossible for the people. For completing a research sampling plays major role. (Mark, S et. al.2007)

Data analysis :

The set of questionnaires for consumers for the purpose of marketing and to answer the questions are stored and maintained. Quantitative method is helpful for the information for high level reliable and accurate. The pie charts of the available graphs are made. The researcher analyses the opinions of the strategies of different types of pie chart data. (Mark, S et. al.2007)

(4). Discussion:


The main aim of this research paper was examination and evaluation of knowledge management to gain competitive advantage in global environment. Tacit knowledge will plays an important role in decision making, strategic planning, marketing, and recruiting. Leitch and Rosen (2001) emphasized optimized or compressed knowledge will lead to gain competitive advantage. This research will also examine the critiques of knowledge management to achieve organizational long-term or short-term goals. Due to the disciplined knowledge management large organizations acquired digital information technology and human resource system to gain competitive advantage. According to the researcher's who prescribed methodologies; organizational performance excellence also key factor for organizational sustainability (Kim et al. 2003, p. 44). This explanatory research can be formulated using the literature search that can be gathered by collecting the information from the people among the organization. While conducting an explanatory research it develops a new hypotheses but it is no way bothered to test the hypotheses (Buchanan, 1991). A descriptive research is more flexible than explanatory research.


Competition was the crucial factor for any organization operating globally. They will get good will by sharing the knowledge. Knowledge exits in each and every person this information can be shared by individuals only when there exist a personal experience, values and beliefs. When employees of the company share their knowledge there is an expansion in the organizational learning. The purpose of this research was to gain expert knowledge in global multinational companies and share this knowledge with individual. Coca-Cola maintaining perfect knowledge management and their most innovative knowledge sharing activities resembles their position in market place. This research will also examine the knowledge sharing of parent company with their sub branches in different geographic locations. Organizations always prefer to recruits people from same country, if not he may leave the company when he gains knowledge. It will reflect on organization performance. Information protection was very important for any organizations to protect their competitive advantage. Coca-Cola has their own information protection policies like copy rights. Knowledge management is "the strategy and process to enable the creation and flow of relevant knowledge throughout the business and to create organizational, customer and consumer value" (Bender and Fish, 2000).

The total production, strategy formation, and decision making will starts from the sharing of experts knowledge in that organization. Knowledge has to flow in both sides from customers to organization and organizations to customer. If one organization needs competitive advantage they should understand what customer needs? Organization has to share this customer feedback data with every individual who will help's to generate customer perceived quality. If organizations going for internationalize their products they have to share the tacit knowledge with foreign employees and also with customers. In order to achieve organizational goals and solutions for problems they have to concentrate on global activities, particularly carried by the expatriates and repatriates (Bender and Fish, 2000). This knowledge transfer from experts will help's for company to achieve their long-term objectives.

(4.1). Stories & scenarios for elaboration, analysis, and negotiation

The case study of Coca-Cola:

Coca-Cola is an world leading beverages company who came up recently with digital knowledge sharing with their employees who are working at other geographic regions. Strategic formulation with competitive strategy will develops organizational course of action. Coca-Cola selects. Coca-Cola's resource based model will explain how their resources and capabilities sharing will helpful for growth of the company. Coca-Cola Enterprises (CCE) employs approximately 72,000 people in 431 facilities around the globe. Much of its workforce is mobile with 55,000 vehicles and 2.4 million coolers, vending machines, and beverage dispensers. With increasing competition in the marketplace, CCE needed a more effective way to collaborate with its employees, to increase its productivity, to enable better flow of information and to create more time for sales persons to engage with customers (John Key, 2009).

Coca-Cola has have "Resource heterogeneity" described about unique product quality. They have strong communication system with employees with mobile phones and messaging service. As mentioned earlier information has to flow in both sides between home country and host country. These factors also can influence organizational growth. Resource based model examines the Coca-Cola's knowledge sharing capabilities influence on growth of company when they are entering into new markets (See Exhibit: 3).

Exhibit: 3

Source: Source;jsessionid=B8B43DA1BA298B67009BCD2B0B5D7F8C?contentType=Article&contentId=855557

This above model explains how tacit knowledge sharing will helps in decision making. The sharing of knowledge includes Physical, financial, and organizational resources. Coca-Cola facing strong competition from other beverages globally. They examined their communication system was not work's in long-term. They decided to introduce effective communication system to improve cultural and customer relationship. Coca-Cola started national advisory council programming through collaboration and knowledge sharing. TCCCF identifies trends outside, development, and outdoor programming. "Management working closely with council to know the needs of customers and trends in present and future" (Paul Gunderson, Executive Director). Competitive advantage requires open knowledge sharing by experts in organization (Villadsen 1995; Bank 1996; Muffin 1996; Bukowitz and Petrash 1997; Stewart 1997). Coca-Cola recruited their chief knowledge officer to maintain the process of knowledge management (Bank, 1996). However private information sharing was an offence. Information sharing was benefiting them in organizational perspective. Chief executive Challenge was how national culture effects on knowledge sharing (Erez and Earley 1993). Coca-Cola maintaining many communication and collaboration services to gain competitive advantage globally. They are going partnership with other MNE's to maintain effective knowledge management. Apart from knowledge sharing Coca-Cola protecting their data with more security. "Step one in getting comfortable with giving our data to Microsoft was visiting one of their data centres.  To understand the physical nature of what they're doing to safeguard not only their own information, but also CCE's, gave us a great sense of comfort that Microsoft has thought of all the right things" (Tim Smith, Chief information security officer, CCE). This effective Knowledge management of Coca-Cola helps to focus on productivity, customer focus, worldwide collaboration, and enterprise content management.

(5). Conclusion & future directions:


Exhibit: 1

Knowledge creation Research

Knowledge Generation

Knowledge acquisition Training, recruitment

Knowledge Integration Product development

Knowledge sharing Planning & practice

Knowledge Application Knowledge application Transfer, On-training

Knowledge storage Database, Operating

& organization

Knowledge measurement Accounting, Modelling

Knowledge identification Reviews, Competency


Source: Grant, (2005), "Contemporary strategy analysis", 3rd edition, Oxford, p.175.

Exhibit: 2

Nonaka's SECI Model

Tacit K

Tacit K


(Originating Ba)


(Interacting Ba)



(Exercising Ba)


(Cyber Ba)

Explicit K

Explicit K


Knowledge will divide for each individual to specialize in that particular tacit knowledge. Production requires different types of knowledge gather together. Knowledge security was important to gain competitive advantage over other organizations.

Source: Beer, S., Diagnosing the System for Organizations, John Wiley & Sons, Chichester, 1985.