This research examines major change management that happened in the Coca Cola Company. Additionally, this article also examines the administration approaches that directors of the company have implemented for its future operations.
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Major change management in Coca Cola Company1 MAJOR CHANGE MANAGEMENT IN COCA COLA COMPANY Name: Institution: Course: Tutor: Date:
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Major change management in Coca Cola Company2 Executive summary In this research work, Coca-Cola Corporation (Coke Company) has been examined on the foundation of major change management in its operations. The hypothesis of managing transformation held by the main change driving force have been listed like reputation, pressures of fashion, together with sincerity pressure, the progress of advancement, and the procedure of diagnosis. Coca Cola Corporation is one of the top organizations that manufacture non-alcoholic or drinks that are carbonated in the entire global community. During the second global conflict, the company was able to withstand the effects of conflict. This research examines major change management that happened in the Coca Cola Company. Additionally, this article also examines the administration approaches that directors of the company have implemented for its future operations. The initial section will focus on a living description of the company. This paper also presents the driver for this change that influenced the shifts in management. Ideas presented in this paper will illustrate how to change process was implemented, and the evaluation of changes as well as steps was taken to ensure the smooth transition for the change. The other ideas presented in this research will be to determine various factors that management had to cope with during the change process. It concludes by explaining some of the recommendations that can be used to control cases of mass Background of the Coca-Cola Corporation In the current marketplace of business operations, the Coca-Cola Corporation that relies on ancient systems along with arrangements of performing a trade that also depends on profit as well as branding. Over the previous years, individuals, systems, together with the business setting have progressed within the Coke Company. Change in management is one aspect that is steady in this ever-varying business society (Akomea 2016). From the physical traits of people, up to the surrounding, variation is very apparent in actions of most corporations like in Coca- Cola Company. Just like the people alongside the environment, businesses also undergo different changes in operations. Such changes can either be massive or minimal depending on various elements of operations that are affected (Gupta 2013). Sometimes, changes happen in the management of a company to maintain its operations with an increase in business competition around the global business environment. As reported byMichela and Vena (2012), the
Major change management in Coca Cola Company3 individuals that go home as champions and on peak have the shared traits of successfully managing the transformations in operations. Transformation in different administration operations remains to be the process that any corporation must or need to undergo. For instance, the business operations of a company such as Coca-Cola will not be complete if it never experienced any change in the process of its management (Lindberg 2013). Therefore, the primary target of this research article is to address change management in the Coca-Cola Corporation. `Before the process of discussing the change administration of the Coca-Cola Corporation, the phrase change must be defined accordingly. According toSalah, Rahim, and Carretero (2011),change in management of an organization refers to the significant difference in what the organization does before and what it is currently doing in its operations. However, in a business society of Coke Company, change refers to accomplishing different tasks in the advanced format, following new directives, acquiring advanced technologies, a new procedure of management, acquisitions as well as emerging and other events within its operations. However, the study byWang (2015), change is the continuous process that deals with the alignment of operations. Hence, change administration comprises of ideas of venturing into new markets. Change in management in the Coca-Cola Corporation Coca-Cola Corporation is an international organization that was invented to deal with soft drinks. The companies headquarter in Atlanta a town in Georgia. It was initially invented to deal with the business of selling pharmaceutical products before it has undergone a change in management. Change in management in Coca-Cola Corporation stays to be a continuous process. A different routine basis follows it in operations (Oh and Kim 2015). In most cases, change in management of this company targets at attaining the successful strategies, workforce, along with the process of improving operations of the organization. Besides, Coke Company has undergone various changes in its management. To obligate contestants out of business, the company’s management embarks on claiming legal privileges alongside unique rights for the method in the early days of 1988. However, issues along with concerns relating to the legality of claims of Candler had emerged (Zeitler, Cecala, and McGrath 2018). In spite of the concern surrounding
Major change management in Coca Cola Company4 the legality of ownership of competitors, the company has continued its focus on advertising their business operations and marketing the products globally. Major change management The corporation has faced the batch of external alterations in its operations. Conversely, changes in the management of Coke organization occurred when its managers attempt to act ahead to cope with the probable dangers and complexity (Sundar 2012). The major change management in Coke Company occurred when the company was changing from its initial operations of dealing with the sale of a drug that was considered to treat various diseases such as morphine addiction, dyspepsia, headache, and impotence to manufacturing and distribution of non-alcoholic products. Moreover, until early days of the 1980s, the company virtually comprised of centralized organizational structure where the major divisions such as manufacturing, finance, and marketing together with a corporate staff made various essential decisions in its operations. All strategic decisions were made in different departments (Lindberg 2013). In the 1980s this management process changed to where organization commenced focusing on fundamental geographical strongholds with the aim of expansion in those regions. The monument function of implementing the management strategy of the Coke Company and making daily decisions fell to every division in the separate territory. The company changed its management to develop divisions in several regions such as Europe, North America, Africa, Latin America, alongside the Pacific. The development assisted local managers of the company to e more flexible towards achieving various demands of their regional marketplaces. The idea remained to be essential to the company as it needed to integrate local culture as well as values of its operations as much as possible (Wang 2015). The belief in such changes was that if the corporation connects to its targeted clients on the local level, it will enhance its markets at an international level. Besides, decision makers of the Coke Company concentrated on making quick operational decisions. Much of this remains for various divisions of North America (Gupta 2013). Consequently, in recent days, Coke Company has made management along with organization alteration to refocus its managers on reducing costs as well as increasing efficiency. In the phase of this progress, Coke has two operational goals that comprise of growing globally and providing the quality products in various markets
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Major change management in Coca Cola Company5 internationally. In the current times, Coke has modernized its overall operation mission (Sundar 2012). Its mission as changed to be inspiring moments of optimism among with happiness while developing value for owners of share and creating the difference in various regions globally. Drivers for this change management that influenced the change in Coke Company In the Coca-Cola Company, elements of change are those aspects that bring change in the overall operation of the company. These forces tend to compel participants of the Coca-Cola Company to alter their actions due to which change in the management of industry (Alrabiah and Drew 2018). Drivers of change in management of Coke Company originate in the outer ring of macro setting. In most instances, the other drivers that affect the major change management in the Coca-Cola Corporation are rings of microenvironment issues (Wolff and Mason 2012). Some of the essential drivers of change in management that are identified in the Coca-Cola Company comprise of:- Customer awareness Change in lifestyle Change in the interest of retailers Market innovation The trend towards store products Advancement in technology being used among other factors Customers’ awareness Initially targeted customers did not take an interest in the private brand labels of the Coke Company. The lack of interest among customers was due to the quality of stores in terms of quality and unattractive store displays of the Coca-Cola Corporation. However, improvements throughout advertisements in the quality of private label brands of the company have been the major factor that has helped in attracting a large pool of customers (Forrest 2013). These customers are currently aware of the advantages provided by both private as well as private labeled brands of Coke products. Change in lifestyle
Major change management in Coca Cola Company6 Change in the style of life of individuals is also an essential driver of change in functions of the Coca-Cola Corporation. Individuals are getting health conscious as well as getting aware of what they are paying to get a coke product. They try to attain the best quality products for the major reason for maintaining healthy and physical fitness while using such products (Sundar 2012). Due to changes in management and lifestyle of customers, Coco-Cola Company is currently trying to come up with products that are of high quality and environmentally sustainable. Conversely, the management of the company is also trying to conveying the message to different clients that they are caring concerning customers’ health when they use Coke products. Change in the interest of retailers Initially, Coca-Cola company retailers were only interested in global products as the company has various branches around the global markets. However, due to changes, the company started to take an interest in the private labeled brands as they experience the higher profits being generated by the private brands that they distribute in the market (Lindberg 2013). Presently, change in management has made it possible for the Coca-Cola Corporation to be capable to advertise their yields at a lower cost and get huge margins of profits as they operate. Trends towards store products The brand product of the Coca-Cola Corporation has improved its quality for a few years. The improvement is due to the difference between the qualities of store products as well as international products are reduced. At the same moment, store products are readily available leading to changes in the perception of customers as well as force the market condition to be changed (Wang 2015). Therefore, a major change in management on how advertisement is done by the company has helped in ensuring that new customers are reached so as information concerning Coke products to reach many customers. Innovation of marketing The process of marketing innovation remains to be the introduction of advanced ways to market different products of the Coke Company. Due to advancement in technological usage that is very rapid due to which marketers of Coke products can find a new way on how to market the
Major change management in Coca Cola Company7 company’s products (Morcom 2013). The marketers can do online marketing for their products that are proved to be very successful in operations of the Coca-Cola Corporation. Change in technology Technology is advancing at a rapid rate within business operations. New technology is emerging on day to day operations. All departments in the Coke Company thus need to upgrade their facilities as well as processes in order to be competitive in different international markets. Most operators of Coca-Cola Company are presently able to sell their products online due to which competition is increasing at a high rate (Ayoob 2018). Similarly, new technological Coke products have introduced that aids in reducing the cost effectively. Drivers of change are classified either as external or internal drivers. The external drivers comprise of customer-led drivers. These drivers are transformations in the market structure such as attitudinal shifts in command, income adjustments, or demographic variations that alter definitions of worth alongside ease (Anders and Zenker 2014). The other drivers are technology led drivers which refers to the essential improvements that occur in either main or enabler organizations. Additionally, funds led drivers are some of the essential drivers that result in variations carried on by shareholders of the institution and the ensuing alterations in values of presentation. Competitor guided drivers in change administration of the Coke Company that result due to challenges by existing new entrants along with competitors (Sundar 2012). Furthermore, government-led drivers can help in forming legislative shifts and policy initiatives that can impact the operations of the business. Therefore, changes that happen in the Coca-Cola Company may require the change mediator to aid for, publish operational data and assist in creating prospect pledge of the essential stakeholders. The idea helps in attaining the desired prospect for the affirmative effect of the variation to be sensed by both management and customers (Zomorrodian 2015). Changes representatives can sometimes be termed as the group that assumes the mission of introducing along with administering change within the corporation alongside its execution. How the process of change was implemented in the Coke Company
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Major change management in Coca Cola Company8 The implementation of the change process in administration of the Coke Company focused on marketing orientation of company by using various approaches. The major process for implementation consisted of improving the orientation of its products and marketing orientation (Dey 2017). Besides, the orientation of the company’s products referred to the techniques or methods that the organization use in understanding particular places that they placedtheir main focus of attention upon the process of implementing change in production and marketing of products. The change process was implemented by incorporating different direction instead of waiting for the alteration to happen to make it to be at the leading edge of driving management efforts towards attaining the company’s set goals and mission. The focus on hiring qualified workforce was one of the approaches used to implement the change in management within the Coca-Cola Company. The focus on hiring such workers made the company to rely on the branding of its workers as an approach to curbing the challenges in operations (Sikdar and Payyazhi 2014). The approach used helped in resolving instances of several challenges that happen in the course of searching for skilled workforce during operational processes. Besides, the organization focused on developing the superior feet of managers to implement operations of changes in management (Gupta 2013). The change was implemented by developing a superior fleet of administrators that focused on developing an effective program while upholding its standards that deal with plans for recruiting workers to be reliable between top centers for education like colleges and universities. The advertisement was the effective method used to apply change in management of Coke Company (Wang 2015). The idea helped organization in attracting a huge number of skilled workforces that were looking opportunity for employment. Therefore, focusing on effective progress of the appropriate plan for notice allowed Coke Company to make the initial expression for diverse individuals. Evaluation of change and steps were taken to ensure the smooth transition for the change The need to have an appropriate structured approach that ensured that changes were thoroughly, smoothly, and well implemented helped in improving the transition for the change management of Coke Company. There is the need to know the wider impact that each step taken can cause to the operations of an organization (Gupta 2013). For instance, Coke Company in
Major change management in Coca Cola Company9 present times is in a steady state of change as it responds to the thrilling exterior business setting, advancement in technology, and local along with worldwide economies. It means that the workplace processes, strategies, and systems of Coke Company are continuously changing and evolving for it to remain competitive in dealing with non-alcoholic drinks around the markets. Therefore, the need to have effective organizational change management is useful as it helps Coke Company to have a smooth transition in its operations (Akomea 2016). It also ensures the company’s workers to be guided through the change journey. Some of the key steps that Coke Company used to affect variations in its management processes comprised of:- Clear defining the variation and bring it into line with business Creating a roadmap for the change Determining different influences and those impacted by the change Creating a strategy of communication Offering effective preparation Instigating the support framework Measure the process of change Clear defining adjustment and ring it into line with business This step may appear too apparent, but several corporations neglect this first important stride. In the Coke Company, this step is one of the vital elements in change management. It is one of the things that management of Coke Company used in articulating the required change and entirely another to conduct the critical review against the objective of the organization (Anders and Zenker 2014). The initial step of change in management was also used to review the performance goals so as to ensure the change will be able to carry the organization’s business in the appropriate direction. It must be able to take operations of the company into the right strategic, financial, and ethical direction of the management to attain huge returns during their operations. Besides, this stride also assisted the Coke Company in influencing the worth of the variation in management (Parry, Kirsch, Carey, and Shaw 2013).The determination was vital as it helped the management to quantify the efforts together with inputs they needed to invest (Al- Zubari, El-Sadek, Al-Aradi, and Al-Mahal 2018). Therefore, this step helped Coke Company’s
Major change management in Coca Cola Company10 management to understand what they need to change and what is required for the effective process of change Determining different impacts and those affected by the change Once the management of Coca-Cola Company has known what organization wishes to attain and the reason they are then able to establish different influences of the alteration at several levels of operations. The management used this step to help them review different results on each part of the business and how it flows throughout the framework of the organization to a person (Lin, Chen, and Su 2017). Therefore, it was an essential step in change management in Coke Company as it provided the information that forms the blueprint for were training as well as support is required the most to mitigate the impacts of change in operations of the organizations. The step was helping to answer the key question that might arise in the process of change management (Blasini and Leist 2013). Some of the question that it answered includes an understanding of impacts of the change, the person that change will affect, and how the change is received in the operations of the company. Developing a communication strategy The step ensured that every worker is taken on the change journey during the management process. The first two key steps tended to have highlighted different workers that the company needed to communicate a change in their operations. The step ensured that the company could decide the most efficient approach of interaction for the collection or individuals that will carry them on the panel (Sghari 2016). The strategy of interaction requirements to comprised of the timeline for how the transformation was conveyed, vital notes, together with means of communication of the company’s plan to utilized in the process of changing management. Providing efficient training With the message of change out in the open, it has always been vital for the company to alert their workers to understand that they will obtain some preparation. They also alert the workers that they will obtain easy or structured, to educate the abilities as well as understanding needed to function effectively as the alteration is turned out (Anders and Zenker 2014).Training
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Major change management in Coca Cola Company11 process consisted of the set of microlearning units, or the emerged learning styles are integrating session of personal training or on the work mentoring alongside schooling. Implementing the support structure Provision of a support structure was vital as it assisted workers to emotionally as well as practically adjust to the change and to build proficiency of behaviors. It also helped in building the technical skills needed to attain desirable outcomes during business operations (Oh and Kim 2015). Some of these changes in operations resulted in redundancies or restructured so that an individual could consider the provision of effective support. Some of this support included compelling services. In the Coke Company, these services were useful as they assisted individuals in navigating the situation effectively without experiencing any difficulties in their operations. The company concentrated on this technique as the lone method that could help workers to adjust to changes in management (Foster 2014). It helped workers to understand their new role and know how those roles are performed. Therefore, the support structure was used by the organization as a way of opening the policy door with management to ask queries as they arise so as to ensure the workers are well conversant with new management requirements. Factors that management had to cope with during the process of alteration Change process of Coke Company relied mostly on various factors to enable it to be successful in its operations around the global business environment. Some of the factors that the management had to cope with are categorized as internal as well as external environmental factors (Sikdar and Payyazhi, 2014). The external environmental factors comprised of political, societal, and technological, together with financial stimuli outside of the company that causes changes in management. Moreover, the internal environmental factors that management had to cope with during the process of change comprised of systems of operations, politics of management, and procedures used during the process of operations. Another essential factor includes the attitudes of workers towards the change they were being exposed to at the time they least expected such changes (Lin, Chen, and Su, 2017). The need to have support from all organs of management was an essential factor for the management to cope with the changes. It is
Major change management in Coca Cola Company12 apparent in every operation of any company that effective change in management should have the support of senior managers to ensure there is a success in the process. The need for support remained to be one of the vital aspects for attaining the successful results from the process of change management. Recommendations The process of dealing with inevitable change in management of Coke Company typically involved transitioning to advance techniques of working. Sometime in Coke Company, such changes occurred during its business transformation that realigns individuals, processes, and technology seamlessly to advance strategic objectives. There is a greater need for the management of Coke Company to help every worker to cope with changes in their operations (Blasini and Leist 2013). There is a need for the company to ensure that they have executive sponsorship for the proposed changes in management. The idea can be attained by being able to have a potential threat as well as examine opportunities that change can bring in the operations. Developing an effective channel for communication The appropriate communication channel is necessary for ensuring effective change administration inn Coke Company. Ability to have a high level of communication is necessary as it can be the best way to convey messages well so that staff understand and accept the change process (Mokhov and Ryabukhin 2018). Good communication channels are also necessary for the process of change management as it can aid in conveying factual information as well as the latest developments to staff. In this way staffs’ attitude can be well nurtured in the positive light. Therefore, there is a need for the management of the company to have a good communication channel (Lindberg 2013). The channel can help in the provision of constant feedback with the simultaneous step by step communication of all operations in change within the management team. Engaging the stakeholders For the company to defiantly succeed with change management, it needs to identify the individuals that will be most affected by the change it is proposing and let them invested in the project. These individuals will become either the most powerful champions or the strongest
Major change management in Coca Cola Company13 resisters for change. If possible, the company should focus on involving such individuals in the creation of their change management vision from the outset (Zomorrodian 2015). Therefore, the idea can help the management of the company to understand those persons that need change to be part of that change and ensure they embrace the change. Understanding the tradeoffs Every change in the operation of an organization is known to be having knock-on effects. For that case, if management of Coke Company devotes individuals and budget to one project, some other project or process might suffer as they operate. Therefore, when a company is planning for change management, there is a need to identify various sectors that will be impacted (Lin, Chen, and Su 2017). The identification can help the management in seeking to quantify that impact to understand the tradeoffs they will be making in the process. The management needs to understand they will not perform every operation without the help of other workers (Blasini and Leist 2013). Therefore, management needs to ensure that they prioritize on what they are doing as well as on what other workers are doing to ensure they become a success in every change management. Conclusion From this discussion, it is clear that change management remains to be the process in which all departments within a company undergo alterations. It is an essential procedure in the functions of companies such as Coke Company as it allows management to create various choices that are helpful and advantageous to their operations. Additionally, it is clear from this presentation that most organizations that are open to change like Coke Company are generally more successful compared to other organizations that resist change. In the current market that is globalized, advancement in technologies, as well as the procedures of operations, is emerging faster. Therefore, for a company to keep up with such progress, they need to be willing to adapt to different changes in management. This presentation shows clearly that both international alongside local marketplace are faced with very stiff competitions.
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