MGT510: Analyzing Coca-Cola's Corporate Strategy & Governance Systems

This report provides an analysis of Coca-Cola's corporate and business strategy implementation, focusing on systems, structure, culture, people/HR, change management, and government regulations. It examines Coca-Cola's corporate governance, cost leadership, functional structure, and core values. The report includes recommendations for improvement, such as creating a corporate governance system department, adopting a matrix organizational structure, providing employee flexibility, and offering timely training. It also emphasizes transparency in change management and adherence to government regulations. The analysis highlights Coca-Cola's commitment to employee engagement, human rights, and environmental policies. Desklib is a platform where you can find more solved assignments and study resources.

Coca Cola

Coca Cola
Table of Cont
Coca cola corporate or business strategies implementation............................................................2
Systems........................................................................................................................................2
Recommendation.........................................................................................................................2
Structure.......................................................................................................................................2
Recommendation.........................................................................................................................3
Culture..........................................................................................................................................3
Recommendation.........................................................................................................................3
People/HR....................................................................................................................................3
Recommendation.........................................................................................................................4
Change management....................................................................................................................4
Recommendation.........................................................................................................................4
Government..................................................................................................................................4
Recommendation.........................................................................................................................5
References........................................................................................................................................6
Coca cola corporate or business strategies implementation
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 Systems
It has been observed that Coca Cola has good corporate governance in which the long
term interests of the shareholders are promoted. The focus is also given by the company on
strengthening the board and management accountability which will help in boosting the trust
(Lu, Lu, Gursoy & Neale, 2016). The board of directors has created corporate governance
guidelines in which the proper framework is given so that it can be easy to address the issues
related to mission, responsibilities of the directors, qualifications of the directors and also board
committee structure. It is the responsibility of the board to review the development in the overall
corporate governance guidelines (Gasparski, 2017).
The company focuses on maintaining the commitment at the time of conducting the
routine activities and they emphasizes on never indulging themselves in corruption which
consists of bribery. The Anti bribery policies are considered by the company which offer fair
guidance to manage the overall operations in a fair and in an ethical way (Coca Cola, 2019).
Recommendation
It is recommended that new department should be created by the company named as
“corporate governance system”. This department should focus on considering the guidelines
given by the directors. The employees employed for the particular department should conduct
audit process on a regular basis, as it can help in minimizing the issue related to corruption and it
will help to maintain proper control over the organizational activities.
 Structure
In Coca cola, the cost leadership and functional structure is considered in which the focus
on maintaining the job roles of the employees in a structured manner. In this it has been observed
that company focuses on maintaining the lowest prices so that it can be easy to decrease the
costs. The management wants to maintain the labor costs so that the benefits given to the
employees can be enhanced (Coca Cola, 2019).
In context to differentiation and functional structure, it has been seen that the divisional
managers has the responsibility to run the overall activities in the general specific region. The
main functions of the vice president are divided in to the functions of human resources,
innovation, marketing and public affairs. The research and development department focuses on
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coming up with the products so that marketing can be done easily (Hakansson, 2015). In relation
to related constraints, it has been noted that Coca Cola have divided its operating groups in the
areas related to finance, human resources, innovation and marketing and it is done within the
corporate division of the company. Diversification is also the factor in which the company
focused on expanding in different regions like in Africa, European Union and North America
(Powell & Gard, 2015).
Recommendation
The structure in the Coca Cola Company needs improvement, so it is recommended that
the company should adopt the matrix organizational structure. By considering this structure, the
Coca Cola Company, should give permission to the employees to report to two or more
managers depending on the particular situation. It will help in maintaining the efficiency of the
workers and boost their performance in the highly competitive market.
 Culture
The culture of Coca Cola has been defined into the seven core values. The seven core
values of the company are leadership, passion, integrity, collaboration, diversity, accountability
and quality of the products. The main motive of the company is to maintain the commitment so
that it can be easy to refresh mind, body, spirit and to create value (Coca Cola, 2019).
Recommendation
To bring improvisation in the activities of the company, it is important to focus on
maintaining flexibility. The employees should be given flexibility in reference to the working
hours. They should be permitted to join the office at any time, but it is important to complete 8
hours. It will help to boost collaboration and maintain diversity in the workplace.
 People/HR
In Coca Cola, there are more than 61.8 thousand people employed on the global platform.
The company focuses on motivating the employees so that they can give their best towards the
organizational activities. It has been seen that the offers which are provided by the company are
life insurance, dental benefits and also death benefits to the employees. Also, the HR focuses on
recruiting the talented candidates so that it can be easy to attain positive outcome (Tran, 2016).
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Recommendation
It is recommended that company should focus on giving timely training to the employees
so that improvisation can be made in their skills and knowledge. The training should be given
after 9 months to every employee, so that they can easily adapt to the changes made in the
workplace. It will help to maintain efficiency of the employees towards their work and also help
the company in attaining the large market share.
 Change management
To manage the change it has been observed that, company focused on enhancing the
employee engagement so that it can be easy to maintain the intrinsic values and motivation level
of the employees. The company focused on maintaining the integrated system of communication
in which the relationships are made which have enhanced the overall operations of the company
(Cameron & Green, 2015). Coca cola also believes that the overall results of the company should
be positive so that the dedication level of the employees can be maintained and also it is
important to maintain the organizational commitment toward the activities (Kumar & Pansari,
2015). The company maintains the engagement level of the employees so that the employees can
be aligned with the objectives of the organization and also they will emphasize on clear ideas
towards the assigned activities (Cheptegei & Yabs, 2016).
Recommendation
To manage the change in the workplace, it is recommended to emphasize on maintaining
transparency in the activities. By maintaining the transparency in the workplace, the employees
can gain information related to change and can give their feedback and suggestions. The
feedback or the suggestions given by the employees should be implemented as it can help for the
employees to give their best towards the activities.
 Government
It can be said that the activities of the company are managed by considering the rules and
regulations implemented by the government. Coca cola focused on the latest version of the
human rights in which the company considers the twelve components like community and
stakeholder engagement, child labor, workplace security, healthy lifestyles, working hours,
healthy lifestyles, diversity and land resources (Coca Cola, 2019).It has been observed that
company also focuses on contributing towards maintaining the economy of US and it is done by
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offering jobs, taxes and also the community investment to the people. The environmental policy
is also considered in which the focus is on maintaining the public policies with the fair dealing in
relation to water quality and packaging (Dekhil, Jridi & Farhat, 2017).
Recommendation
It is important for the company to create a financial team, in which the employees should
focus on the rules implemented by the government. In this department, the employees should
have the responsibility to ensure the activities conducted in the workplace are according to the
laws implemented by the government. It will help to maintain the overall working pattern of the
employees and can boost the image in the market.
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References
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.
Cheptegei, D. K., & Yabs, J. (2016). Foreign market entry strategies used by multinational
corporations in Kenya: A case of Coca Cola Kenya Ltd. European Journal of Business
and Strategic Management, 1(2), 71-85.
Coca Cola. (2019). Anti-Corruption.
https://www.coca-colacompany.com/our-company/governance-ethics
Coca Cola. (2019).Human and workplace rights. Retrieved from: https://www.coca-
colacompany.com/our-company/human-rights-policy
Coca Cola. (2019).workplace culture. Retrieved from: https://www.coca-colacompany.com/our-
company/diversity/workplace-culture
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.
Gasparski, W. W. (2017). Basic Ethical Aspects of American Companies Operating in Poland,
Barbara Szyszka. In Business Students Focus on Ethics (pp. 67-78). Routledge.
Hakansson, H. (2015). Industrial Technological Development (Routledge Revivals): A Network
Approach. Routledge.
Kumar, V., & Pansari, A. (2015). Measuring the benefits of employee engagement. MIT Sloan
Management Review, 56(4), 67.
Lu, L., Lu, A. C. C., Gursoy, D., & Neale, N. R. (2016). Work engagement, job satisfaction, and
turnover intentions: A comparison between supervisors and line-level
employees. International Journal of Contemporary Hospitality Management, 28(4), 737-
761.
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Powell, D., & Gard, M. (2015). The governmentality of childhood obesity: Coca-Cola, public
health and primary schools. Discourse: Studies in the Cultural Politics of
Education, 36(6), 854-867.
Tran, V. T. (2016). Thirst in the global brandscape: Water, milk and Coke at the Shanghai World
Expo. Journal of Consumer Culture, 16(3), 677-698.
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