Analysis of the Management of Coca Cola Company

This document provides a detailed analysis of the management of Coca Cola Company. It covers the company's mission, vision, objectives, culture, values, organizational design, leadership structure, and management styles.

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ANALYSIS OF THE MANAGEMENT OF COCA COLA COMPANY
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Introduction
Background information
Coca Cola is an American multi-national profit making soft drinks organization which was
founded by a pharmacist John Stith in 1886. Asa Candler bought the formula of beverage making
and the brand used in the production process in 1889. The Company manufactures retails and
markets soft drinks in more than 200 countries of the world with its headquarters being in
Atlanta Georgia. The average sale of its products per day stands at 1.6 billion beverages in
countries of operation. The organization has been in operation for 125 years and it has more than
135,000 direct employees of who are chief executive officers, senior executives, executives,

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senior managers, managers, staff and subordinates. The company is led by a chief executive
officer who is subject to scrutiny before being appointed to this vital position of leadership.
Mission and Vision
The rise of competitors has been a challenge facing Coca Cola Company but its strong leadership
and leadership styles have made the company unbeatable. The profit making company aims at
thriving in a decades to come through critically analyzing the forces that will shape and boost its
operations widely in the future (Maani Hessari 2019 p. 81). Under the control of the chief
executive officer the company creates a long-term goal and provides the way of achieving the
goal. Consequently the company’s vision serves as the roadmap of the organization to show what
should be established in order to achieve sustainable growth where quality is not compromised.
Vision
Characterized by the 6 p’s that determines the operations.
People: The organization aims at empowering people more so those who work for the company
to become the best they can.
Portfolio: aiming to provide to the world top quality soft drinks which will satisfy the needs of
the customers
Partners: developing a dynamic and winning network of co-workers, producers, suppliers and
consumers to create mutual interdependence.
Planet: being a responsible inhabitant who makes a clear distinction by assisting in the building
and supporting a sustainable community.

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Profit: to ensure maximum long term returns to benefit all those who own shares while being
mindful of the overall organizational responsibilities.
Productivity: To be swift and highly effective in growth across the globe (Serôdio 2018 p 1599)
Mission
The mission declares the purpose of Coca Cola and provides its roadmap in which the company
undertakes its actions. The company in some instances identifies vulnerable populations, invests
in there and starts its operations. It then creates employment opportunities to the locals and
initiates a new market to make profits through selling its products (Kammer 2016 p. 53). The
mission is provided in three statements.
To refresh the world by providing the best quality of soft drinks
To create moments and memories of optimism and happiness
To create top quality value and make a lasting difference globally
Objectives
The organizations objectives are to be a globally known profit making organization which
conducts its operations ethically to foster sustainable growth in a bid to ensure future operations.
The objectives of the company influence decision making right from the junior most leaders all
the way to the top. This is evident in the acquisition of over 500 brands (Research and Markets
3AD 2019) which are currently sold globally by the company. The company identifies all
possible ways to acquire new brands and new market territories to invest in so as to ensure it

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does not go unnoticed in any part of the globe. The strategies employed by the organization and
the various benefits associated with its operations in a place makes it the most well received by
both governments and the local people.
Culture
Every organization is made up different cultures which are introduced by the management and
upheld by all the stakeholders. The Coca Cola Company is governed by two cultures which
facilitate its operations globally since it operates in over 200 countries. Role culture (PR
Newswire 2017) is adopted in Coca-Cola since it is suited for a hierarchical organizational
structure. Each and every employee has a distinctive role to play and at the process the employee
should comply with the set rules and regulations. This culture is sub divided into a number of
entities organized hierarchically with an aim of developing accountability and transparency in
the undertakings of the organizations operations. The Coca-Cola Company subdivides itself into
three main categories which are manufacturing, marketing and accounting. These sub divisions
then are further subdivided to offices (MicroStrategy Incorporated 2AD 2019) of the directors,
managers, supervisors, technicians, operatives etc. Logic and rationality are the factors for
performance in this culture and each individual is expected to comply with the needs and
specifications of his or her position. Position in role culture adopted by Coca-Cola acts as the
main source of power. The rules and regulations imposed or attached to the specific office act as
the chief source of influence
Task culture where members or employees are encouraged to work as a team is also adopted.
This is evident in the company operations globally (PR Newswire 2017) where distributers liras
with transporters to get the company products. At the manufacturing industries too, the

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organizations workers employ teamwork as a strategy to comply to the requirements of the
company in making the required amount of products required and bottling them and avail them
ready for transportation for consumption.
Values
The Coca-Cola Company is governed by values which dictate the direction of movement at all
times. Leaderships is committed to shape the future of the company through maximizing the
potential of its employees. Accountability is also inculcated through making each and every
person responsible for the actions taken in the company. Quality is not left out as the company is
committed (Research and Markets 12AD 2018)to ensuring production of top quality products
which are not compromised at any moment. The company is also committed to integrity which
makes it incomparable with others an aspect that leads to it defeating its ever rising number of
competitors. Diversity is embraced since the company is multinational and operating in more
than two hundred countries of the world. More than 500 brands of the company in different
names are sold globally.
Organizational design
Earlier on before the nineties the organization had a centralized system of governance where all
the operations of the organization in terms of leadership were undertaken from Atlanta Georgia.
With time the leadership observed that the operations of the company are slowed down hence
decided to decentralize the lealership (Raman 2017 p. 117). This was done with an aim of
meeting the desires of the customers since the organization was immensely growing. The
decentralized government has then improved the management of the organization operations
since each country where the organization is established, there is a complete office to attend to

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the needs of the customers and facilitating the operations of the company. The leadership has
established several operating regions such as Africa, middle East, European union etc which are
directly involved in the decision making process. Regions are then sub divided into geographical
regions an aspect that involves the local market in the decision making (Orr 2013 p. 6). With this
form of leadership the organization is able to swiftly respond to the demands of the changing
market and the senior management teams are allowed to concentrate on long term planning.
The corporate division of the company is divided into several departments such as human
resource, finance, marketing, innovation and planning. Each department has its own leadership
which is supposed to make the activities ran and at the same time ensure there is transparency,
accountability and cooperation within the department (Harper 2012 p. 244). The departments
then work hand in hand to ensure all the operations of the company are running actively, widely
and at the same time conquering new territories in terms of market and acquisition of more
brands. Supervision of employees is conducted at this level in reference to the code of conduct
and ethics which are set up by the company. The specifications of jobs and what is required of
each are included in the guidebook so as to make each employee to adhere to their specific task
(The Coca-Cola Company 10AD 2017). Mutual analysis resulting from the top most leadership
has continually over the years improved service provision to the customers, shareholders and
employees.
The structure of leadership
The organizational complexity of the organization is controlled through a vertical hierarchy. The
decision making resides with the upper most management which is comprised of the Chief
executive officer and the executive directors. Decisions on daily routine (Orr 2013) are made by

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the various managers in the different departments in the middle level globally. The organization
has more than 700,000 system employees when their bottling partners are included. Due to the
widespread operation to over 200 countries globally, and six large geographical operation
sections, the management in the headquarters is solely responsible in providing the general
directions and support the regional offices to ensure smooth running of the operations. The
executive directorate makes key strategic decisions which apply to the whole organization
globally with the CEO as the chief decision maker.
In cases where the geographical segments would wish to undertake an action to facilitate the
activities of the company, the leadership have to notify the regional directorate which then
consults the international board of directors who will either approve the request or deny it based
on the requirements and timing and also at the best interest of the company and the shareholders.
This movement of information from the grassroots levels to the senior most management of the
organization gives the leadership a sense of belonging and appreciation (Sungho Cho 2011 p.
339). This therefore increases the loyalty of the employees and those in the leadership positions
at various levels.
Organizational structure of the Company’s leadership

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The above organizational leadership structure makes the organization both effective and
efficient. Communication which is a vital tool in leadership and in the success of any
organization is effectively used in such a setting. Since the supreme power lies with the senior
managers, information has to be relied so as to authorize the undertaking of any significant and
major decision in the company (The Coca-Cola Company 4AD 2017). The main goal of
maximizing profit to the shareholders is then achieved through the system since all the
customers, shareholders and leaders opinions are adhered to. The hierarchical organization has to
scrutinize all the information at the middle level to determine which suggestions will reach the
top management. This helps the senior management to remain focused on the long term planning
of the organization rather than pay attention to minute issues which can effectively be handled by
the juniors (The Coca-Cola Company 11AD 2012). The company also tries its level best to limit

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expenses an aspect that contributes to increased revenues thus the shareholders get good returns
of their shares.
Leadership styles
The styles of leadership that are practiced at the cocacola company has over the years
contributed to the remarkable success of the company. Consumer marketing helps to ensure the
customers are aware of the products of the company. This is achieved through untiring
advertisement and standardization of the prices of the commodities to accommodate those in the
lower economic class (Coca-Cola Bottling Company of Central Florida 9AD 2014). This helps to
heighten the possibility of the company’s acquisition of wealth and profits for its shareholders.
Commercial leadership is achieved through enhancing value for the millions of customers who
sell the company’s products to consumers globally. The organization provides solutions to these
small scale retailers to ensure it grows its beverage business. This is done through ensuring
uniform supply of products to the most developed markets and to the poor emerging ones. The
promotional tools are also given to the customers based on the size of the enterprise they are
operating. Franchise leadership in the Coca-Cola Company is enhanced through continued
improvement of the capabilities to support the bottling partners in their growth since a vital and
important success of the organization lies with the bottling partners. The organization therefore
aligns incentives, promotes a sense of urgency and flexibility that supports the consumers in the
ever changing market. In the operations with the bottling partners, the company looks for
systems and methods (The Coca-Cola Company 8AD 2011) to enable it achieve the highest rank
by acquisition of a wider market and creating opportunities to serve the world’s population.
Management styles

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The organization uses management styles that are suitable to its growth and development.
Democratic management style is where the leader shares the decision making capabilities with
the members of the group or the organization. Individuals are allowed to make rules by
themselves among themselves and for themselves (Benjamin Rogers and Rosenbaum 2011 p.47).
This aspect makes it possible for all the stakeholders to adhere to the rules they have made. This
therefore means the operations of the company are complied with by most members of the
organization. The various individuals who operate at the different departments in the positions of
leadership are allowed and empowered to make minor decisions. Autocratic leadership is also
employed in cases where strict rules and guidelines have to be followed. the leader makes all the
decisions which the stakeholders have to comply with whether it favors them or not. this is done
to better the outcomes or the benefits of the company as well as improve the various operations
which might have been affected. The advantage associated with this form of leadership is that
jobs get done quickly and a lot of time to undertake new activities is enhanced. This has
contributed to the swiftness of the company in acquisition of more than 500 of its brands (The
Coca-Cola Company 8AD 2011) that are sold in the global market. Laissez faire management
style is also evident in the organization as a majority of the seniors delegate their duties to be
undertaken by the juniors. The seniors therefore remain with supervision role as their main job.
This has helped to see most of the technical activities in the company being done in a short while
since they are delegated to a bigger number of juniors who undertake the activities swiftly.
Diversity in the advisory council of the organization makes its operation successful. Coca Cola
being a multinational company operating in more than 200 countries of the world is exposed to
diverse cultures and practices of different people. The representatives of these cultures help the
company to make moves in consideration to these cultures in the areas of their operations and

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jurisdictions. The employees from all levels are also represented in a bid to advance the efforts of
the organization. Employee forums are conducted at given intervals (Wintergreen Advisers
12AD 2014) in the organization which help the managers to identify loopholes and identify
appropriate remedies . At the forums, the employees are given an opportunity to give suggestions
to the leadership on how to better the operations of the company. They are also accorded chances
to interact with their seniors in group and personal levels an aspect that instills confidence and
motivates the employees in the various departments. Through these forums, the employees are
provided with the appropriate education pertaining to the organization. The code of conduct and
work ethics are instilled to the employees by internal and external speakers an aspect that makes
them complies with the rules positively (Benjamin Rogers and Rosenbaum 2011 p.47). This
therefore results to improvement of the organizations efficiency and effectiveness without
unrealistic struggle.
Recommendations
A more advanced hierarchy of leadership should be established by extending the division to
nations and even divisions where the organizations operations are taking place so as to ensure the
real picture at the ground is captured. The management styles should be uniformly practiced in
all the departments of the company so as to ensure no department lags behind in performance.
The organization should translate its mission, vision and objectives to various languages in
which the company’s operations are undertaken to facilitate because some nations do not use
English as a medium of communication. At the forums inclusivity should be done so as to ensure
all the stakeholders have got the information that has been relied. This is achieved through sign
language interpretation for the deaf and translation for non English speakers.

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Conclusion
Coca-Cola is a multinational company which operates in over 200 countries globally. The
company has a clear outline of the mission, vision and objectives which has made it operational
for the last 125 years. The system of governance is decentralized an aspect that makes its
operations easy to undertake. The organization has got several partners e.g. the bottling partners
which package the product and ready for distribution. The management styles keep the workers
on toes thus the other competitors have not been able to deter the functioning of the organization.
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