Impact of Organizational Culture as a Strategic Source: Coca-Cola

This report analyzes the impact of organizational culture on Coca-Cola's strategic success. It defines organizational culture and explores its influence on the company's strategic nature using Johnson's Cultural Web. The report examines the strengths and weaknesses of Coca-Cola's cultural elements, ...Read More

Running head: IMPACT OF ORGANIZATIONAL CULTURE AS A STRATEGIC
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IMPACT OF ORGANIZATIONAL CULTURE AS A STRATEGIC SOURCE
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IMPACT OF ORGANIZATIONAL CULTURE AS A STRATEGIC SOURCE
Part- 1
Organizational cultures defined as the elemental values and ways of interaction that
contribute to the exclusive social and cognitive environment of an organization (Osland,
Devine and Turner 2015). Organizational culture influences the strategic nature of the
enterprise in various ways. A number of researches have been done using analytical tools like
Cultural Web in determining the strategic nature of an organizational culture as a resource.
Here the company concerned is Coca Cola that utilizes its employees as wealth by giving
them perquisite, trainings and a healthy strong work culture for their better performance.
Johnson’s Cultural Web (1992) is one of the most powerful tools for approaching a
change in the organizational customs. The model consists of six interrelated elements that
make up the paradigm of work environment – stories, rituals and routines, symbols,
organizational structure, power system, control structure. The power of the model lies as both
a clear interpretation of cultural elements as well as a complex integration of approaches to
the study of culture in management literature (Johnsonet al. 2014). The effects of the six
elements on Coca Cola help the brand to develop its strategic resource. Coca Cola does not
have any fixed rituals and routines for the employees, which is essential for a customer-based
brand. Routine training and development programs should be arranged to make the
employees better engaged in their work. The brand operates democratically under no strict
rules with an informal tone. The brand encourages competition with the rivals and
collaboration with their own sister concerns. The only monitored section of the brand is the
distribution department that speaks to the lack of control over other facets. No rewards or
punishments are assigned to the employees that make them disinterested in work growth. The
brand name speaks for itself with limited bad reputation. Coca Cola though holds the top
position in the beverage market lacks some of the basic elements in the cultural web that
requires consideration.

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IMPACT OF ORGANIZATIONAL CULTURE AS A STRATEGIC SOURCE
Strong and weak organizational culture affects the strategic value of the enterprise in
a decisive way. A strong culture is defined as a set of values that are strongly adhered
whereas a weak organizational culture is defined as an array of code that are not widely
accepted in an organization. Strong organizational culture always has a positive effect on
employee behavior and decision making patterns. In comparison to the enterprises with weak
organizational culture, the organizations with strong culture have more propensity towards
success and immense motivation due to the enhanced coordination and control in the
workplace. Coca Cola has always been one of the brands with a strong organizational culture,
adhering to the belief of diversity and sustainability with growth. They have always
considered their workers as assets that uplifts the workers' performance to a new notch. The
strong and stable culture has definitely played its part in placing the brand on top (The Coca-
Cola Company 2018).
The Unique organizational culture is definitely a pro strategy for the success. It acts as
a motivational factor for the employee that positively influences the output that in turn
increases the profitability of the organization (Chevrier 2009). The HR team of Coca Cola
has always played an active role in motivating the worker involving all sorts of recreational
activities and acknowledgment at times. This has tremendously influenced the productivity of
the brand in the face of steep competition with the rivals in the face of globalization.
David Kester, chief executive of design council, provides solutions to help managers
deal with the most fundamental innovation issues with the company. He emphasizes on the
importance of right open culture, allowing ideas and innovations to flourish, taking control at
the right time. The second thing he accentuates is the habit of hiring the right talent with an
appropriate HR policy discerning innovation and building finances. So, the two golden words
are habit, the systematic approach of running a business with innovation at the forefront and
culture. He also expounds that rewarding companies look out for consumer-friendly ideas,

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IMPACT OF ORGANIZATIONAL CULTURE AS A STRATEGIC SOURCE
shortlists them, and merge important ones in their businesses. The person has also provided
solutions to the resistance that can arise from long-term employees, accustomed to a certain
mode of working. The solution lies in maintaining leadership and communicating with the
workers asking them to proceed slowly. Also, introduction of animators can accentuate the
innovation pace forward as done by P&G who has brought designs to look down at the
business opportunity of a product and visualizing ideas without collision. He also has spoken
about two of his favourite innovations from the market, about a startup from London called
Streetcar that has introduced the concept of joining a car club instead of buying it directly.
Their ways of dealing and even ingenious ways to deal with penalty have surely led to an
innovation in a world opting for sustainable alternatives to transportations. Another
innovation involving designers is done in the UK by managing the prevention of chronic
disease in the developed world. They introduced a pack of cards linked to a computer system
as an open innovation model to draw unknown insights from the patients. They were told to
draw cards that applied to them and the doctor who was operating the computer system knew
the potential problems that the patient had. This kind of simple yet working novelty can
surely bring a lot of solutions to the problems suffered by the company.
Part- 2
Positive culture of an organization refers to the work culture in which the strength of
each employee is emphasized and recognized yielding better productivity for the company.
The characteristics of strong team spirit, appreciation and recognition and transparency in
communication are also a part of the positive organizational culture (Alvesson and
Sveningsson 2015). Positive culture enables the employees to operate, decide and grow at the
full potentiality.

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IMPACT OF ORGANIZATIONAL CULTURE AS A STRATEGIC SOURCE
A positive work culture in an organization plays an important part in motivating the
employees and earning reputation and profitability for the company. Successful organizations
reflect the positive team culture that they possess which impart an exponential success.
Transparency and openness is a character of positive culture that affects the success of the
organization. When the working culture is transparent right from the upper strata to the grass
root level, every employee has a clear vision about the objectives of brand that helps them to
perform with their zeal. Open culture also promotes the upfront nature of the company that
gives the employee an idea on the goals. The integrity of a brand also helps to earn respect
from its employees that also influences the brand value within the organization in a positive
way. It also delegates responsibilities to its employees according to their individual strength
and talents that helps the workers to perform to their best abilities. The most important aspect
of a positive work culture is mutual respect that is omnipresent among the employees
regardless of the hierarchical position (Stahl and Tung 2015). Promotion of a positive work
culture with respect and admiration help to make a company flourished with a strong work
skill.

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IMPACT OF ORGANIZATIONAL CULTURE AS A STRATEGIC SOURCE
References
Alvesson, M. and Sveningsson, S., 2015. Changing organizational culture: Cultural change
work in progress. Routledge.
Chevrier, S., 2009. Is national culture still relevant to management in a global context? The
case of Switzerland. International journal of cross cultural management, 9(2), pp.169-183.
Johnson, G., Whittington, R., Scholes, K., Angwin, D. &Regnér, P. (2014) Exploring strategy
text & cases. 10th Ed. Harlow: Pearson.
Chapter 5, ‘Culture and Strategy’ (pp. 141-173)
Osland, J., Devine, K. and Turner, M., 2015. Organizational behavior. Wiley Encyclopedia of
Management, pp.1-5.
Stahl, G.K. and Tung, R.L., 2015. Towards a more balanced treatment of culture in
international business studies: The need for positive cross-cultural scholarship. Journal of
International Business Studies, 46(4), pp.391-414.
The Coca-Cola Company. (2018). Workplace Culture. [online] Available at:
https://www.coca-colacompany.com/our-company/diversity/workplace-culture [Accessed 4
May 2018].