Ural Federal University named after the first President of Russia B.N.Yeltsin Test paper on the subject of management The analysis of the management activity in “The Coca Cola Company” Student:. Group: Lecturer: Contents Introduction………………………………………………………………….......3 1. Brief characteristics of the company……………………………………….4-5 2. The functions of management in the company…………………………….6 3. The analysis of internal and external factors……………………………….7 4. Leader in the company………………………………………………………8 5. Competitors of the company……………………………………………….9 Conclusion………………………………………………………………………10 References………………………………………………………………………11 Introduction In large organisations, management represents the vital component that stimulates businesses and industries to grow and develop. The rise of modern organisations is not only due to the quick advancements in technology and communications but on manager’s ability to help company to grow and evolve, to suit the modern standards of business dealing Therefore, there is the science of management. There are a variety of views about management. Even though management rapidly evolves, practically, its definition has not changed much - the term management refers to planning, organizing, leading, and controlling of organisational activities and their resources (McNamara). In this paper, I will try to analyse the organization of management in The Coca Cola Company. I will present how management is organized there, its weak and strong sides. Let us begin. 3 1) Brief characteristics of the company The Coca-Cola Company is an American multinational beverage corporation, and manufacturer, retailer, and marketer of nonalcoholic beverage concentrates and syrups. The company is best known for its flagship product Coca-Cola, invented in 1886 by pharmacist John Stith Pemberton in Atlanta, Georgia. The Coca-Cola formula and brand were bought in 1889 by Asa Griggs Candler, who incorporated The Coca-Cola Company in 1892. The company—headquartered in Atlanta, Georgia, but incorporated in Wilmington, Delaware —has operated a franchised distribution system since 1889: the Company only produces syrup concentrate, which is then sold to various bottlers throughout the world who hold exclusive territories. The company owns its anchor bottler in North America, Coca-Cola Refreshments. The company's stock is listed on the NYSE and is part of DJIA, the S&P 500 index, the Russell 1000 Index, and the Russell 1000 Growth Stock Index. Muhtar Kent serves as chairman of the company with James Quincey as president and chief executive officer. The Coca-Cola company produces Coca-Cola, Diet Coke/Coca-Cola Light, CocaCola Zero, Fanta, Sprite, Powerade, Schweppes, Bonaqua Missions of the company 1. 2. 3. To refresh the world... To inspire moments of optimism and happiness... To create value and make a difference. “ 4 Organizational Structure The Coca-Cola Company has a Separate International Division Structure. It has various divisions in all continents around the world with presidents that control each continental division. Figure 1 – The Organizational structure of The Coca Cola Company Advantages 1) 2) 3) 4) Quick and easy decision making The organization has high productivity and efficiency. Decision-makers are very independent Structural units that don’t work, can be easily closed Disadvantages 1) High level of competition between internal divisions 2) All units are unequal 3) Marketing of individual products may vary in value 5 2)The functions of management in the company Planning The top management of the company formulates five year longer term plans and one year shorter term plan. It is done to provide company with a strategic vision over a longer period, and volatile, changeable strategy, according to imperatives of its external environment. Apart from this strategic planning, the top management at Coca-Cola also engages in tactical planning in consultation with the middle management who in turn acts on the feedback from the salespersons on the ground. Organizing Coca-Cola follows the decentralization within centralization model of organizing itself. This means that while the global headquarters retains its overall decision making, the corporation is divided into regions and geographical territories in which it operates. Leading The company emphasizes the importance of transformative leadership at both the Global and the Local levels. This means that local managers and the heads of departments in addition to the Country Heads in the various markets that the company operates in are free to decide on the appropriate strategies for their territories as long as they conform to the global norms and global culture that permeates the organization. Controlling The controlling function in Coca-Cola is done through periodic reviews of managerial and salespersons performance. Towards this end, an evaluating system based on objective evaluation of whether the employee being evaluated has met his or her targets forms the backbone of the controlling function in the company. As we can see, The Coca Cola Company has a well-established management process, which definitely helps it to assure proper operation of the company 6 3) Analysis Of The External And Internal Factors This paper uses SWOT analysis to analyse The Coca Cola Company’s external and internal factors -Strengths -Weaknesses 1) Brand Equity – Interbrand in 2011 awarded Coca Cola with the highest brand equity award. 2) Company valuation – One of the most valuable companies in the world, Coca cola is valued around 79.2 billion dollars. 3) Vast global presence – Coca Cola is present in 200 countries across the world 4) Distribution network – Coca Cola has the largest distribution network 5) Popularity of the brand – Coca Cola done a great job advertising itself. For a lot of people, no big holiday or can be imagined without a bottle of Coca Cola. -Opportunities 1) Low product diversification - CocaCola don’t have any snacks or anything else except beverages 2) Absence in health beverages – Coca Cola tries to produce healthier drinks, but still, these beverages are not as healthy as consumers want them to be 3) Water management – Coca Cola has faced flak in the past due to its water management issues. -Threats 1) Diversification – Diversification in the health and food business will improve the offerings of Coca Cola to their customers. 2) Developing nations – Although developed nations have a high presence of Coca Cola, these countries are slowly moving towards healthy beverages. 3) Market the lesser selling products – in its portfolio, Coca Cola has several products that didn’t found their place on the market, thus Coca Cola should make efforts to take these products to the market. 1) Raw material sourcing - the threat here is that water scarcity is on the rise. 2) Indirect Competition - Although companies such as Starbucks and Dunkin’ Brands Group do not compete directly with Coca-Cola, these businesses do place a dent in the company’s market share. Table 1 - Analysis of the internal and external factors. We can see, that Coca Cola Company has some weaknesses and threats, but its more of a century of experience of business shows that it will overcome all its problems and continue to grow. 7 4) leader of the company There are three types of leaders: authoritarian leader, which characterized as a ‘Master” such leader takes all the initiative oh himself and does not accept advices from his employees. The second one is the democratic leader, such a leader, though have same amount of power as the first one, do not use it that much, this type of leader accept advices from his employees; The third type one is a participative leader, this leader can lead the team, but, at the same time, this leader do not control working process, which may lead to low efficiency and losses of profit The President and CEO of The Coca Cola Company is James Quincey. He rules hard hand. He became the President and CEO in 2016 but he has already made a lot for the company. he announced reducing 1,200 corporate positions as part of a plan to invest in new products and marketing and restore the year's revenue and profit growth from four to six percent Quincey also said in interviews that he wanted to rid the Coke company's culture of over-cautiousness concerning risk and that he intended to further diversify Coke's portfolio by accelerating investments in startup businesses. He later launched a plan to recycle a bottle for every bottle sold by 2030 The Coca Cola Company’s vice CEO and Director, Muhtar Kent, is an informal leader of the company. He’s been working at The Coca Cola Company since 1978; he went from from the bottom to the top of the company and became an informal leader. Under his command, The Coca Cola company became 50% bigger then it was. He currently serves on the board of directors of The American Turkish Society and the National Committee on United States-China Relations. The Coca Cola Company’s both informal and formal leaders are great managers and they will confidently lead the company to further success 8 5) Competitors of the company Without a doubt one of the strongest Coca Cola competitors is PepsiCo. One of the reasons these brands are competiting so much is because both of them are very strong in their distribution and have excellent marketing and sales policies. Red Bull GmbH is one of the strongest growing energy drink/sports drink producing company and is amongst the strongest direct Coca Cola competitors in terms of brand valuation. The Starbucks company is believed to be one of the indirect competitors of The Coca Cola Company although such companies as Starbucks do not directly affect The Coca Cola Company, they are still making quite a dent in The Coca Cola Company market area. The Coca Company do not have a lot of competitors, which makes it easier for it to develop more and more profit and expansion. 9 Conclusion The Coca Cola Company started as a small brand of patent medicine drink and grew all the way up to the biggest worldwide beverage distribution company. Analysis of the external and internal factors shows that despite having some threats and weaknesses, The Coca Cola Company has a lot of opportunities and strong sides, which ensures that it will continue to grow even more. Its leaders are staggeringly educated and experienced men, they will help the company to gain more and more profit. Also, The Coca Cola Company do not have that much of competitors thus it do not need to deal with a strong competition. All these leaves us with only one thing to say – The Coca Cola Company will rule the beverage market for a long time. 10 References www.coca-colacompany.com www.managementstudyguide.com cokemnc.blogspot.ru www.kontur.ru www.prezi.com www.Wikipedia.com www.toughnickel.com www.pestleanalysis.com www.apessay.com www.bartleby.com www.managementstudyguide.com coca-colahellenic.com www.coca-cola.co.uk www.cpgmatters.com 11
