Organizational Change Analysis of Coca-Cola: A Detailed Report

This report provides an organizational change analysis of the Coca-Cola Company, a global leader in the beverage industry. It examines the need for organizational change within Coca-Cola, driven by the necessity to adapt to consumer expectations and the external environment. The analysis covers an overview of the company, its current condition, and the importance of change for employee engagement and strategic management. The report delves into the organizational change management theories utilized by Coca-Cola, including Kotter's 8-step model and Lewin's change management model. It also discusses potential barriers and ethical issues the company may face. Through this comprehensive analysis, the report highlights Coca-Cola's strategies for maintaining its market position and adapting to the evolving landscape of the global beverage industry.

Running head: EXTERAL ENVIRONMENT ANALYSIS
EXTERNAL ENVIRONMENT ANALYSIS
Name of the student
Name of the university
Author Note

1EXTERNAL ENVIRONMENT ANALYSIS
Executive Summary
The respective paper is an organizational change analysis of the company Coca cola. The coca-
cola company is considered to be one of the largest and most famous beverage industries in the
whole world. Organizational change analysis of a company is necessary because a company is
required to analyze its external and internal environment, its advantages and disadvantages in
order to create changes in the organizational structure as well as its operations and functions for
the development and enhancement of its business. Therefore, since Coca-cola company has
unprecedented reputation and fame in the world of business, therefore, it is necessary for them to
make internal analysis for organizational change in present and in future for futuristic prospects.

2EXTERNAL ENVIRONMENT ANALYSIS
Table of Contents
Introduction.................................................................................................................................................3
Discussion....................................................................................................................................................4
Overview of the company.......................................................................................................................4
Coca Cola Company and organizational change......................................................................................4
Present Condition of Coca Cola Company...............................................................................................6
Organizational Change Management in Coca Cola Company..................................................................7
Need for change in Coca Cola......................................................................................................................8
Importance of Change in Coca Cola.............................................................................................................8
Organizational Change Management Theories utilized by Coca Cola......................................................9
Kotter’s 8 step model for Change in Coca Cola Company......................................................................10
Lewin’s Change Management Model of Coca Cola Company................................................................11
Barriers the company can face..................................................................................................................13
Ethical Issues the Company can face.........................................................................................................13
Conclusion.................................................................................................................................................14

3EXTERNAL ENVIRONMENT ANALYSIS
Introduction
The respective paper is an organizational change analysis of the company Coca cola. The coca-
cola company is considered to be one of the largest and most famous beverage industries in the
whole world. The process by which the organizational structure and its people are transformed
from the current state to the expected and desired futuristic state so that the short term as well as
long term organizational goals is met with is called organizational change (Hayes 2018). The
process or organizational change management provides the members of the organization with
courage and ability to accept change in the existing environment of the business. In an
organization or a company, changes can be numerous as well as multidimensional. For instance,
change in the technology utilized inside as well as outside the organization, changes in
operations and strategies. A company is required to implement individual as well as collective
strategies to cope with each type of change. Therefore, it has to be always remembered that
change is inevitable and it has to be accepted, weather gladly or unwillingly. In order to create a
change or transform the organization partly or completely, the respective company would be
requiring to analyze the internal as well as the external environment of the company holistically.
It should also introspect and analyze its advantages and shortcomings to change or modify their
operations and functions. Such changes are meant for growth and development of the
organizations. Therefore, since Coca-Cola Company has a large business base, a large paradigm
of operations and unprecedented reputation and fame in the world of business, therefore, it is
necessary for them to make internal analysis for organizational change in present and in future
for futuristic prospects.

4EXTERNAL ENVIRONMENT ANALYSIS
Discussion
Overview of the company
The world’s biggest and most famous retailer, seller and manufacturer of carbonated soft drinks
and non-alcoholic beverages, Coca Cola Company, are renowned throughout the globe. Apart
from providing the authentic and branded Coca-Cola drinks and beverages, the company also
provides the global customers as large as five hundred different types and different flavors of
beverages and other non-beverage items and food which are trendy and fashionable and the
company successfully operates in more than two hundred countries across the world. The famous
entrepreneur and business enthusiast Candler was the founder of the Coca Cola company in the
year as early as 1892. The headquarters of the Coca-Cola Company is located at Atlanta in the
United States of America. The net income of the company every year annually can be calculated
of being approximately 11.8 billion US Dollars in the year 2010 with total number of employees
working in the company of about 139,000 worldwide. The Coca Cola brand is famous across the
globe and is consumed by almost several millions of people irrespective of gender and class.
(Cocacola.com.2019).
Coca Cola Company and organizational change
As the consumer expectations of the Coca Cola Company is an important factor apart from the
internal as well as external environment of the company, therefore, the Coca Cola Company
requires certain changes in its products and business strategies including organizational change
strategies. As Coca Cola Company has a huge arena of operations and reputation in the global
market on an international paradigm, therefore, to maintain its reputation, manage and enhance
its operational functions, a change management is indeed important and a requisite for the
particular company. The need for change management in an organization is dependent upon the
external as well as the internal factors of the organization. According to external factors, factors

5EXTERNAL ENVIRONMENT ANALYSIS
such as government laws, labor markets, market conditions, economic scenario are considered
while the internal factors include workforce, resources, attitude of the workers and strategy taken
up by the organization. Coca Cola Corporation is one of the oldest corporations in the world
which is not only huge but successful even in the present condition and generation. The
corporation has successfully gone through different kinds of internal and external changes since
it has been into existence. The company has utilized different organizational change management
mechanisms and techniques in order to survive and thrive in the fierce competitive environment
of global business and enterprises respectively and it has, without any doubt, performed well
throughout the time. The coca cola company has also faced numerous external changes as well.
According to the historical records of the respective company, Coca Cola Company had been
able to manage its existing position at the time of World War II, entered into different and
innovative markets in order to discover a plethora of new niches and opportunities in order to
survive as well as thrive in the sensitive and complicated conditions of World War (Elmore
2013).
In the time of Asian financial crisis, the Coca Cola Company had taken up acquisition strategy in
order to sustain itself from the financial crisis. In the countries such as Malaysia and Korea, the
respective company has been successful in acquiring bottling and refreshing drink business such
as coffee and tea shop business. The taste of the consumers, especially in the industry such as
food and beverage, is not static, it is rather dynamic and the preference changes from time to
time, according to the health requirements as well as the taste preferences of the masses. In
changes on a continuous basis according to the new dietary pattern of the consumers according
to their age, gender, profession and sexuality. The Coca Cola Company had been effectively and
efficiently meeting the growing demands of the variety of consumers by introducing Diet Coke

6EXTERNAL ENVIRONMENT ANALYSIS
and Coca Cola Zero. A marketing blender was introduced by the Coca Cola company when a
peer of the company or a rival enterprise successfully launched a black colored aerated drink
which tasted sweet and smooth and the name of the beverage which Coca Cola introduced was
named as New Coke. However, the company initially witnessed criticism throughout the world
and the sale turnover of the company gradually decreased. However, the company had
successfully regained its position and prestige in the business world as it used its old formula and
introduced the concept of “Diet Coke” all over again. Throughout the world, people are
becoming more and more health conscious and fitness freak. Therefore, coca cola is developing
various juices and beverages which are diet drinks as well as energy drinks, apt for the athletes,
exercise enthusiasts or figure conscious women in the world. The respective moves show various
strategies taken up by the company in order to respond to various consumer needs, requisites,
expectations and preferences and changing as well as developing their products and themselves
according to such factors. The Coca Cola Company has successfully used the organizational
change theory of Kotler in order to bring a proper organizational change on the multidimensional
aspects of the company. The company also inculcated changes in the operational and strategic
factors of the business, it has also changed its advertisement strategies by targeting various
groups and communities of the consumers with varied ethnicity, race and nationality. The
company has also changed its packaging techniques when it comes to advertisement in different
countries such as eastern, middle -eastern and European countries according to the aesthetical
needs and preferences of that respective society or community.
Present Condition of Coca Cola Company
The present condition of Coca Cola Company is secured and convenient. The company has been
successfully selling beverages throughout the world, majorly in more than two hundred

7EXTERNAL ENVIRONMENT ANALYSIS
countries. There are certain outlets and retail stores of Coca Cola in several nations, which,
however, do not follow the customary marketing and inventory schemes and policies of the
company provided to them (Oliver 2013). The Coca Cola companies had been providing with
certain efficient change management plans. However, the company has also taken steps to
amalgamate and align its performance and yardsticks according to the culture and programs they
have undertaken within the corporate organization. The changes that are to be brought about in
the organization would be implemented within the business operations and management
operations of the company in order to synergize the human resources available in the company
(Barkay 2013).
Organizational Change Management in Coca Cola Company
Organizational change can be referred to as any kind of internal as well as external change
brought up in the structure of an organization in order to improve or enhance the organization for
future prospects and aiming at fulfilling the objectives of the organization. Controlling and
monitoring sessions, job design and rejuvenating job scopes and designs, specifying different
work roles to different people inside the organization are certain instances by which the structure
of the organization can be changed. Change in technology can be described as introduction to
innovative and latest methods of technology in order to increase the productivity of the
organization and also increasing the quality of the product within the organization. Change in the
employees can be described as aspects that bring change in the mindset and the behavior of the
employees, no matter how trivial or significant they are, within the organization in their
operational or functional spheres. Change in behavior can bring alteration in the way people
think and act and the processes by which the psycho-social and cognitive behavioral patterns can
be influenced and manipulated by the organization. For such cases, eminent industrial

8EXTERNAL ENVIRONMENT ANALYSIS
psychologists are appointed by the organizations. Such behavioral change management aims at
bringing in betterment in the organization with the help of their desired attitude and manners.
Need for change in Coca Cola
Coca Cola Company needs to make organizational changes because it needs to align its products
and business strategies according to the expectations of the consumers and external environment.
Strategic management has been one of the most pressing issues of the Coca Cola Company. As it
is an internationally operating company, therefore, the management team of the company is
bound to meet the requisites of a large and diverse population of employees and associates on an
international basis.
Importance of Change in Coca Cola
Employee engagement in Coca Cola Company is one of the main factors that require a change
within the organization (Omari, Ateka and Nyaboga 2013). As far as Coca Cola Company is
considered, the needs for changes in employee engagement means a more committed, diligent
and dedicated workforce, employee performance synergized and ranged with the objectives of
the company, employees should also have a clear idea of what is expected from them, the
employees should be given the idea that the corporate under which they work are their greater
families and it is their responsibility to take care of the requisites and needs of the respective
company according to their competencies and capabilities. However, the factor such as customer
experience plays an important role in employee engagement management plans and schemes.
The employees in the organization have the tendency to strive for providing a better experience
to the customers which not only increases the credibility of the company, but also the employee

9EXTERNAL ENVIRONMENT ANALYSIS
value. When the employees are aligned with the goals of the company, they tend to adapt
themselves in the framework of their job description and such action can eliminate unnecessary
factors and wastes within the work frame (Kazmi and Naarananoja 2013). Employee engagement
programs also provide them with advocacy of their preferences, requisites and ventilation of
grievances within the paradigm of workforce they are in. Communication is another important
factor. Communication in business, in today’s world, needs to be integrated because the global
and local markets of today are dynamic and mobile and the companies always have to respond to
the evolving and changing market structures and conditions (Calder 2013).
Organizational Change Management Theories utilized by Coca Cola
The two organizational change theories that Coca Cola Company can implement in order to
bring organizational change in them. They are: Kotter’s eight Step Change Model and Lewin’s
Change Management Model. Kotter’s Eight Step Change Model can be defined as a structured
mechanism of change management within an organization that includes: Establishing a sense of
urgency, forming a powerful guiding coalition, develop a clear shared vision and strategy,
communicate the vision, empower people to act on the vision, create short term wins, consolidate
and build on the gains and anchoring new approaches in the future (Sarayreh et al. 2013).
On the other hand, Lewin’s Change Management Model can be defined as a structured
framework of change management mechanisms which consists of Unfreezing, which is the
process by which it is possible for the people to remove the established pattern of change
management, Movement, which is a process of change in thoughts, feelings and behavior, which
is liberating and more productive, and lastly, refreezing, which is establishing the change as a
new habit (Pollack, and Pollack2015).

10EXTERNAL ENVIRONMENT ANALYSIS
Kotter’s 8 step model for Change in Coca Cola Company
1. Establishing a sense of urgency: a sense of urgency might be established within the
organization with the exposure and circulation of annual reports and addressing the issues
regarding the problem and need for change.
2. Forming a powerful guiding coalition: the management team of Coca Cola Company can
form a team of experts to help in guiding the change process of the management. The
company would be having the opportunity of improving their productivity by appointing
the best and professional management experts who would be giving them the correct and
efficient change management plans to enhance the company.
3. Creating a Vision: an expert team that might be formed by the management department
of the company might present new vision and ideas regarding the change management
that has to be brought in the organization (short term and long term).
4. Communicating the vision: the management department of the company is required to
communicate the vision they have adopted or about to adapt to the employees in order to
clear all kinds of miscommunication and misconception within the organization. The
company can have certain threats in this case such as miscommunication or improper
interpersonal communication as the Coca Cola company is diverse with employees and
professionals belonging to different cultures and ethnicities. In such case, company has to
implement cross-cultural interpersonal communication to enhance its operations.
5. Empowering others to act on the vision: Employees would be provided the opportunity to
give opinions regarding the vision and schemes, even if they are positive or negative, and
ventilate their grievances. Such act within the company would increase the credibility of
the company in long run.

11EXTERNAL ENVIRONMENT ANALYSIS
6. Planning for and creating short term wins: Management is required to create short term
targets for the employees aligning the change management strategies they have taken and
make them motivated enough to work according to them, in order to increase and
accelerate their productivity. The Coca Cola company has abundant resources and a good
reputation, therefore, it can raise funds for implementing management scientists, hitting
on core competency, to create short term wins who would be more efficient in his/her
work.
7. Consolidating improvements and producing still more change: the management in this
case, needs to change the rigid policies and regulations of coca cola and make them more
flexible, tangible and adjustable.
8. Institutionalizing new approaches: the management of coca cola in this case, can
introduce incentives for the employees that would allow them or facilitate them to
implement the changes perfectly and efficiently.
Lewin’s Change Management Model of Coca Cola Company
1. Unfreezing: The management of the coca cola company can provide the employees with
new visions by giving speeches and classes about new change mechanisms and the
necessity of dethroning the established and outdated mechanisms of change management.
Such action would implement new perspectives in the mind of the employees and they
would slowly be ready for change.
2. Movement: the management of the coca cola company can provide the employees with
educational classes and training sessions about the limits, advantages as well as
disadvantages of the new change management mechanisms they are about to be
implementing, enlightening them about the credibility of such mechanisms.