Investigate The Control Systems At The Coca-cola Company
Assignment Overview
In the Module 4 Case, we will investigate the control systems at the Coca-Cola Company.
Case Assignment
Visit the website of the Coca-Cola Company: http://www(dot)coca-colacompany(dot)com/, and go to the Investors page. Look around at this page (there is a lot of excellent information here), and search for information related to the organization’s structure and controls. Then, locate the company’s most recent Annual Reports and 10-K filings. After completing some research at Coke’s website, in the library, and on the internet, please address the following:
Describe the organizational structure at the Coca-Cola Company (what form of structure does the company have?). Include any information you can find regarding the company’s Board of Directors and the company’s committees.
Describe the organization’s culture. How well does the company’s Values statement align with its culture?
Do some research at the Coca-Cola Company website and in the library (be sure to look at trade magazines and newspapers as well) and find as much information concerning the company’s control systems as you can (budgets, inventory control, annual objectives, functional strategies, policies and procedures, personnel evaluation systems, or other). Describe these controls, and discuss how they assist in keeping Coca-Cola’s strategies on-track.
In the Module 3 Case, you identified a grand strategy (or grand strategies) that the company should follow. Do the company’s organizational structure, culture, and control systems align well with this strategy? Explain.
Strategy Implementation and Monitoring
Student’s Name
Institution
Strategy Implementation and Monitoring
Organizational Structure
Organizational structure describes the hierarchy and the reporting lines in the company. It provides a way through which responsibilities and roles are coordinated and controlled. The structure also defines the direction and flow of information in the company. Coca-cola is the world’s leading beverage firm. From the information about its leadership on its website, it uses divisional organizational structure. According to Lewis, Goodman, Fandt, & Michlitsch, (2006), this type of organizational structure is designed in such a way that members are grouped on the basis of geographical markets, customers served, or common products and services.
In the case of Coca-Cola, the members of the company are divided based on geographical markets. The operations of the company have been divided into five geographical markets. These markets are Asia Pacific Group, Middle East and Asia Group, Latin America Group, Europe, Bottling Investment Group, and North America Group. As informed by Lewis, Goodman, Fandt, & Michlitsch (2006), the divisional structure allows a firm to focus its attention on important operations from a strategic point of view. In this sense, the divisional structure in the firm allows it to have functions that concentrate specifically on the requirements of the markets. The characteristics of different markets around the world differ in terms of preferences and tastes. With each division independently serving one region, it is possible for the company to serve the market with products that meet the exact demand of the consumers. The demands of the consumer in Asia Pacific region may be completely different from those of consumers in North America. With both regions being served by different divisions, there is a concentration that allows each of the markets to be served better.
As noted by Lewis, Goodman, Fandt, & Michlitsch (2006), a potential disadvantage of the divisional structure is that there may be the duplication of efforts and resources since each division may have its own different departments. However, in the case of Coca-Cola, it cannot be a disadvantage because of its size. As mentioned, above, the firm is the world’s largest beverage company. Therefore, each division described above is large enough to enable efficiency.
Organization’s Culture
Organizational culture is instrumental in helping a business firm achieve both short-term and long-term goals. It is the system of beliefs, norms, assumptions, and values that guide the behavior of members of the organization (Xenikou & Furnham, 2012). Therefore, it can be said that culture provides its members with a sense of guidance towards a certain direction. The management and leadership in organizations have the role of cultivating the right culture that fits its overall strategy. This enables the business to move towards achieving its immediate and future goals.
The organizational culture of Coca-Cola is evident through vision and mission statements, workplace values, sustainability, its history, innovation, and the engagement with stakeholders. It is the vision of the company to get prepared for the future today. From the mission statement of the firm, its aim is to refresh the world, inspire happiness and optimism, and to create value. The core values as described it its website also show what characterizes its organizational culture. The core values that describe the culture of the company include quality, accountability, diversity, collaboration, integrity, leadership, and passion. The assets of the company that help it preserving these core values are its brand and its people.
A major aspect of the culture of the company that emerges is diversity. The company embraces diversity as it considers it important for success in today’s world. With business operations today being characterized by globalization, the workplaces of many organizations are made up of workers from diverse national and cultural backgrounds. Fostering diversity at the workplace helps in building a culture that appreciates the differences that exist among the members. The workplace policies of the company are tailored towards supporting individuals from diverse cultural backgrounds. The recruitment and selection as well human development processes in the firm support diversity. Therefore, it can be said that diversity is an aspect...