Lead and Manage Organisational Change in Coca-Cola

This study explores the factors and requirements for bringing change in Coca-Cola, including internal and external environmental scanning, stakeholder consultation, and a change management plan. It discusses the need for variations in product taste, alignment with organizational objectives, and research on policies and procedures. The document also includes a change management plan, risk analysis, and evaluation methods.

BSBINN601 Lead and Manage Organisational
Change
Assessment Task 1
Introduction:
Coca-cola is one of the market-leading companies in the business market. There has
been found out the continuous increase in the emerging business of beverages. Thus, this is
essential for Coco-Cola to bring variations in the product taste. This study will involve the
factors that will be needed for bringing change in the organization.
Organizational internal environmental scanning:
The internal business environment and its effects are found within the organization’s
management. The significant internal environment, which Coca-Cola ensures involves the
effectiveness in the appropriate organization skills, effective communication networks, and
the production procedures. The effective environmental scanning involves monitoring and
managing the internal environments and the coke conduct assessments of it are the operations
and responding appropriately to any aspects, that is likely to cause the ineffectiveness in any
sector of the consumer and the production procedure (Serôdio, McKee & Stuckler, 2018).
External environmental scanning (PEST analysis):
The external environment analysis involves the PEST analysis that is the political,
economic, social and technological condition of Coca-Cola. The political contributions
include the political contribution of the country involving the laws and regulations. The
political factors involve the changes in the political scenario of the country. The economic
conditions involve the impact of the economic crisis on the company and the social factors
involve the cultural shifts from the carbonated drinks to the healthy beverages and the
attempts of the company towards the women’s economic empowerment. The technical
factors involve the uses of technology for production purposes and the implication of digital
technology for analyzing the opportunities.
Stakeholder consultation (include meeting minutes):
The stakeholders are accumulated together for gathering the feedbacks on the
proposed directions and the changes. The stakeholder consultations bring the opportunity for
the community and the organizations to have the open communications and create
connections between them. In the consultation process, one of the stakeholders reflects lights
on gaining profit for the company, another one brings light on the employee retention issues,
the other stakeholder brings light on the improvements in the production process, and all
these factors are mentioned in the minutes of the meetings.
Identified change requirements and why are they needed:
The change requirements are needed to be done that the investor sentiments have been
failed to improve during the recent years. The company needs to bring innovations for
bringing changes in the tastes of the customers. The company also needs to look for an
increase in the investment factors for the stakeholders.
Alignment of the identified changes with the organizational objectives:
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BSBINN601 Lead and Manage Organisational
Change
The change requirements for improving the investor requirements like these is one of
the major organizational objectives that the Coco-Cola need to improve for bringing
innovations in the production process. As the competitions are increasing for the company
since there is various emerging beverage company with the same tastes and with various
other tastes. Therefore, this is important for the company to bring changes in the tastes of
their products. Therefore, Coco Cola needs to look for an increase in the investment factor of
the stakeholders (Dekhil, Jridi & Farhat, 2017).
Research on policies and procedures relating to the identified changes:
The project work needs to follow the laws and the regulations regarding the
innovation policy in the business market.
Trends associated with the identified change:
Coca-Cola needs to bring improvements by making innovations in the production
process. These are required to bring variations in the product quality and for competing with
the emerging beverage company in the business markets.
Performance gaps related to the identified change:
The company’s performance directly reflects the improvements required in the
production process. The employees are needed to be trained and should be trained regarding
the strategies for maintaining the quality of the production process. The performance gaps are
reflected as from the time the company has not identified the changes that are needed to be
implemented in the production process for bringing a different taste in their beverages
(Moresi, Salop & Woodbury, 2017).
Change management plan:
Introduction
Coca-Cola needs to bring improvements by making innovations in the production process. These
are required to bring variations in the product quality and for competing with the emerging beverage
company in the business markets. This project will help the company to bring innovations to their
production quality.
Project Sponsor
The production manager is given a charge for this project as he is the only responsible one who can
lead the change management project for the company. He is also responsible for ensuring the project
work and for implementing the change plan.
Project Objectives
 The project will look after the production process for bringing innovations in the beverage
taste.
 This project will also look after making variations in the taste of the beverages in the limited
investment.
 This project will also handle the changes that will be caused for bringing changes in the
production process.
Change Objectives and Principles
The change process will achieve the employee involvement for bringing different variations in the
taste of the beverages they produce and these also require a lot of input for bringing the change in
Student Name: Student ID:

BSBINN601 Lead and Manage Organisational
Change
the production process.
This project work will be based on the consultation of the stakeholders and the decisions will be
based on the suggestions during the consultation process. The timelines will be determined for the
project work by considering the whole production process and the change plan will be followed by
the operation principles of the company.
The project work will be done by considering the ethical issues that the production quality will not
be decreased while bringing variations in the taste of the products.
Change Plan Elements
The elements on which the change plan will be based are the production system, technology used for
the production process, the process of producing, ingredients, employee’s performance skills. All
these factors will play a major role in bringing improvements for the product taste and quality. The
change of ingredients will make a change in color of the beverages.
The rationale for the Change
The quality and taste of the product need to be updated as a result of this project work.
The risk may arise while trying the different chemical composition for producing the new beverages.
Key Stakeholder Analysis
 The stakeholders are the company staffs, production managers, technology department staffs
and the actual customers of the company.
 The main concerns of the company staffs that what the new skills they need to adopt for
bringing improvements and the production manager looks after the entire production process. The
actual customers will provide genuine reviews regarding the taste and the quality of the new
product.
 The preferred media is the social media where the genuine reviews of the customers can be
accessed at a low-cost price.
 The approvals will be gained from the tasters, real customers and the investors regarding the
implementation of the change.
Cost-benefit analysis
The market is monopolistic competition, so the competitive market allows free entry and exit of
firms which drives down profits, but companies are able to make some profit from brand
differentiation. The population of the U.S. is 307,000,000 and on average the producers make 557
cans per American per year.
So about 400 cans are made by the Coke and Pepsi industries. With their profits on that number of
cans the average profit per can is estimated 12 cents. Assume market price of a can is $1 so the
Marginal Cost of making the can is $.88.Profits = number of people X number of cans sold X profit
per can$150 billion dollars per year is spent on health care issues relating to obesity.
Half of that is borne by the taxpayer through Medicare and Medicaid.
So $75 billion is borne by the taxpayer. It has been found that sugary drinks are roughly 9% of the
calories consumed by Americans, so assume it causes 9% of the problem (though it could be much
more, because it is the only food that has been linked specifically with obesity). But to stay on the
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BSBINN601 Lead and Manage Organisational
Change
conservative side, lets call it 9%.Percentage x taxpayer cost of healthcare = taxpayer cost of
health care from sugary drinks
9% x 75 billion = 6,750,000,000If you divide that by the number of taxpayers you get the cost per
taxpayer.6,750,000,000/307,000,000 = 21.98697068 is the Marginal External Cost of health care
expenses on obesity from soft drinks, and divided by the number of cans consumed by Americans
that is a Marginal External Cost of .04 cents per can. Instead of .88 Marginal Private Cost, the true
cost is .92.Marginal Private Cost (MPC) + Marginal External Cost (MEC) = Marginal Social Cost
(MSC)The government should tax .04 per can in order to align the price of the can with its true cost,
the Marginal Social Cost. In this short-run analysis, we will see how the .04 tax burden would be
borne by the producer and consumer. Studies have shown the Price Elasticity of Demand of the soft
drink market to be 7.8% change in consumption with a 10% change in price
Risk analysis
 The risk that the project could face is any hemorrhage can be caused for experimenting with
the various ingredients during the production process.
 The technology advancement may cause any accidents for trying the new process of
production.
 The project may get negative reviews regarding the quality or the taste of the product then
the company will face a loss on the investment made in this project work.
Assessment of Readiness to Change
The changes have taken the new product will be launched in the market of different tastes and the
stakeholders are aware of the newly launched product that is the investment behind this project will
bring profit or loss for the company and whether it will be accepted by the public or not. The
marketing strategies should be properly implemented for launching the new product for the business
market. Coco-Cola is one of the leading company in the business market, therefore, the new product
will be encouraged and are expected to get strong support from the target audience.
Key Change Messages
The stakeholders are aware of the changes as the investment made in the project work will be a loss
for the company if the project work does not succeed.
The stakeholders provide the message that the variation in the taste of the product should not bring
any change in the quality of the product.
Their main concern is about the acceptance of the new product in the business market.
The investment that is made in the project work is needed to be reverted from the business market.
Change Elements
The structures of the production process are needed to be changed and the additional resources will
be required for bringing changes in the production process.
There is the need for the change of the ingredients and the process of the production process for
launching the new beverage.
The workload in this project will be divided among the production team members regarding by the
production manager and new skills will be trained to the members those who require it.
The production manager needs to take approvals from the stakeholders and the technical operation
department for bringing any technical changes for this project work.
Change Plan
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BSBINN601 Lead and Manage Organisational
Change
Actions Who When Performance Measures
Selection of the
ingredients
Production team
members.
The initial stage of
the project work
The selections are required
for the change of taste
Selection of
Technological
appliances
Technological
operation
department
Before the starting
of the production
process
The technical appliances
are mostly required for the
production process,
therefore, these need to be
measured by checking the
sample produced
Monitoring the entire
production process
Production
manager
In the entire project
work
The production rate and
quality will determine the
Consolidation
For the success of the business, the ethical issues need to be followed diligently. This will help in
improving customer loyalty.
Communication and consultation strategies:
The changes in the strategy of the organization to increase the productivity level should be
communicated to the employees and the stakeholders with the medium of sending an official email
to them. This will help to build and maintain an efficient workplace relationship with others.
Evaluation
The achievement of the planned objectives is the utmost priority of the organization for the purpose
of increasing the revenue of the cola company. The changed management and strategies can be
evaluated on the basis of conducting reviews within the organization to see how the employees have
welcomed the new ideas. A survey can be also be conducted where the responses of the customers
are taken into consideration. The evaluation outcomes will be circulated to the stakeholders every
year, by giving them a report of the changes. The evaluation outcome can be used to bring about
effective changes in other organizational processes.
Barriers to change
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BSBINN601 Lead and Manage Organisational
Change
One of the main barriers to change are employee reluctance. This can be overcome
with the help of imparting training sessions to them so that they realize what are the benefits
and drawbacks of the proposed change.
Training strategy
The employees can be trained with the help of demonstrations and presentations. This
training strategy is effective as the employees will have practical knowledge about their
expected work obligation.
SWOT Analysis
The strength of Coca-Cola Company is customer loyalty while its weakness is the
strong competition from the other beverage companies. Its opportunity is in the packaged
drinking water which is provided to the customers. One of the important threats to the
company is the suppliers of raw materials who can charge more money for the materials
supplied by them (Cameron & Green, 2015).
Implementation strategy
The new strategies will be implemented with the help of undertaking training sessions
and evaluating the work of the employees
Monitoring and evaluation methods
The monitoring and evaluation methods will include keeping a vigilant eye on the
activities of the employees and conducting a frequent appraisal of the work performed by
them.
Modification required if any
The modification that will be required in the project work is that the quality and the
taste of the product further need to be improved. The technical applications are needed to be
improved for this project work for the better result.
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BSBINN601 Lead and Manage Organisational
Change
References
Serôdio, P. M., McKee, M., & Stuckler, D. (2018). Coca-Cola–a model of transparency in
research partnerships? A network analysis of Coca-Cola’s research funding (2008–
2016). Public health nutrition, 21(9), 1594-1607.
Dekhil, F., Jridi, H., & Farhat, H. (2017). Effect of religiosity on the decision to participate in
a boycott: The moderating effect of brand loyalty–the case of Coca-Cola. Journal of Islamic
Marketing, 8(2), 309-328.
Moresi, S., Salop, S. C., & Woodbury, J. (2017). Market definition in merger analysis.
Cameron, E., & Green, M. (2015). Making sense of change management: A complete guide to
the models, tools and techniques of organizational change. Kogan Page Publishers.
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