The analysis of the management activity in “The Coca Cola Company”

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.
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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. “
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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
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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
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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.
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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
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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.
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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.
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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
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