Impact of Change on Strategy and Operations : Coca- Cola ...
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Added on 2020-06-04
Impact of Change on Strategy and Operations : Coca- Cola ...
Added on 2020-06-04
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Understanding and Leading change
Table of ContentsINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................3P1. Impact of change on strategy and operations of Coca cola and Pepsi..................................3P2. Effect of internal and external drivers of change on leadership, team and individualbehaviour.....................................................................................................................................6P3 Measures taken to reduce the negative impact of change on organisational behaviour........7TASK 2............................................................................................................................................9P4 Different barriers of change and their influence on leadership decision making..................9TASK 3..........................................................................................................................................10P5 Different leadership approaches to deal with the changes in organisation..........................10CONCLUSION..............................................................................................................................12REFERENCES..............................................................................................................................12
INTRODUCTIONChange is important for the growth of organisation. It is important for company tounderstand the changes and accept in their business activities. This helps the firm to improvetheir methods and process in completion of tasks. Business environment is unpredictable andmany changes happen in external environment which affects the decision making power ofmanagement. Acceptance of changes helps in creation of innovation among employees andmaking strategies to lower risk of uncertainties. In the present report, it is important to promoteleadership to accept the changes and implement various approaches which increase theircompetency to deal with such situations. This will increase the capability of organisation toidentify and respond to the change drivers. In this report, importance of change management andapplication of leadership approaches to Coca cola and Pepsi will also be explained (Davis andMarshall, 2014).TASK 1P1. Impact of change on strategy and operations of Coca cola and PepsiChange: This includes the changes happen in organisational structure and strategies dueto modification in business environment. The factors which are present in business environmentare main drivers for happening of change. This includes competitors, technology, culture, markettactics and preferences of customers, etc. All these factors have a huge impact on the business
activities of both companies and they are required to take care of such different aspects for theirsustainable development. Acceptance of change provides a lot of opportunities to capture a largemarket share and make long term relations with their customers. So, it is important for both;Coca cola and Pepsi to identify the changes and make strategies.The reasons which forced both organisations to make changes in their organisationalstrategies and operations are mentioned as below:To understand the drivers of change and accept them to retain their position in market toattain competitive advantage.To improve the performance of different departments of company and promote creativityand innovation among employees.To satisfy the different needs of customers.To adopt the best practices in organisation for performance of their functions andmaintenance of quality of their products (Drover and Ariel, 2015).The two organisations i.e. Coca cola and Pepsi are operating their business activitiesworldwide which is given as below:Coca cola: It is the soft drink company which provides variety of products like diet coke,Caffeine free Coca cola, Coca cola Zero etc. This company products are sold in more than 200countries and more than 1.8 billion soft drink are consumed by customers every day in all overthe world. This is the largest company which have large brand value equal to Apple and Google.The main competitor of this company is Pepsi which force management to think about to makechanges in their strategies and operations. Pepsi: Company also manufactures carbonated soft drinks. After 1961, this company iscalled as Pepsi. Large number of variants are provide by this company which includes diet Pepsi,Crystal Pepsi, Pepsi vanilla, Pepsi Zero sugar etc. To compete with Coca cola and capture largemarket they have to make changes and accept new strategies.So, to accept the changes and improve their position, both companies introduce newpolicies and strategies to accelerate their business.StrategiesCoca-ColaPepsiPricing strategiesCoca cola is a big brandhaving operations at a largescale worldwide. Its main aimPepsi is also a soft drinkcompany and the largestcompetitor of Coca cola in
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