Success Of The Coca Cola Company

Success Of The coca boob guildThis report is to investigate coca cola connection. On this coursework I leave look at the familiarity on wholly aspects from their subscriber line functions, organisational structures to the federations objectives. I would confirm to look at the divisions at bottom the business and the functional aras inside these departments, withal look at the different wariness styles within the business, looking at the organisational structure, the communication usage within the business, and the imp mold of ICT on the organisations communications.The Coca- dumbbell Company is the worlds addressing manufacturer, marketer and distributor of non-alcoholic beverage concentrates and syrups. Along with Coca cola, the worlds scoop known brand, The Coca potCompany markets four of the worlds top-five soft drink brands, including fodder Coke, Fanta and Sprite. Throughout the world, no other brand is an immediately recognizable as Coca Cola. With opera tions in much than two hundred countries, a diverse work coerce comprised of more than 200 different nationalities, communicating in more than 100 different languages, The Coca Cola Company is part of the fabric of life in each of the communities they go throughout the world. It operates as a local business partner, providing choice in the marketplace, enhancing the workplace, preserving the environment and streng thereforeing the community.Coca-Cola is the almost popular and biggest-selling soft drink in history, as well as the best-known product in the world. Coca-Cola was invented in May 1886 by Dr. John S. Pemberton in Atlanta, Georgia. Thename Coca-Cola was suggested by Dr. Pembertons bookkeeper, Frank Robinson. He unploughed the name Coca-Cola in the flowing script that is famous today. Coca-Cola was first sold at a soda fountain by mixing Coca-Cola syrup with change soda in Jacobs Pharmacy in Atlanta by Willis Venable. During the first year, sales of Coca-Cola averaged nine drinks a day, adding up to total sales for that year of $50.Since the old age expenses were just over $70, Dr. Pemberton took a loss. Today, products of The Coca-Cola Company ar consumed at the rate of more than integrity billion drinks per day.In 1893, Coca Cola was registered in the coupled States and then further investment was put into it to embellish the business. To handle the enormous capacity of its business, the Coca Cola Company hasdivided up into six run units Middle and Far East Groups, Europe, The Latin America Group, The North America, The Africa Group and The Minute Maid Company. The Head Quarters is situated in theUnited States. The verdant that Im going to be concentrating on is the United Kingdom and how the confederation whole works in the U.K.Action PlanI drew up this action excogitation as a guide to prioritise what information I need to complete this report. The method of research I will theatrical role the most on this report will be secondary research such as the annual reports, etc.Coca Colas Ownership=====================The Coca Cola Company is a usual limited company . They offer shares to the general public through the company. It is in the first place roundr companies such as Coca Cola that are public limited companies.The advantages of a public limited company are* Shareholders choose limited liability* The sale of shares enables larger sums of money to be raised* speckle the company has this money permanently, the individualproprietors force out recoup their money by selling their shares to others* Directors may be brought in as experts in certain palm* Produce goods at lower unit cost* Due to their size they bathroom benefit from economies of scale, e.g.bulk buying, cheaper borrowingThe disadvantages of a public limited company are There are a number of legal requirements to fulfil in setting up acompany Regulations mean that a company is more expensive to set up than asole trader or partnership, alth ough the cost may be as little as100, and close to already registered companies can be bought off the peg The accounting of a company is less private than for other forms oforganisation The company could become to large resulting in poor labour relations There could be a conflict of interest between shareholders and theBoard of Directors Possibility of takeover or uniting because shares can be bought byanyoneCoca Cola also attain limited liability as they are a public limited company. A limited company is owned by its shareholders. There is no legal maximum to the number of shareholders. There are two forms ofLimited Liability Company in the UK, the Private Limited Company (Ltd) and the Public Limited Company (Plc). The essential difference, between the two, is that the Private Limited Company can non licitlyoffers its shares to the general public, therefore this form of company is usually associated with family run businesses. Whilst the Public Limited Company can sell its sha res to the general public onthe deport Exchange, providing the potential for far greater finances to be raised.The owners of a limited company are referred to as its members, or shareholders. An individual can become an owner of the business by purchasing shares in that business. When the profits of the business are distributed to shareholders, they are distributed in the form of adividend. The value of the dividend is decided upon non by the owners, but by the Directors of the business.Some shareholders had invested their life savings and not only lost their money, but their homes, limited liability was designed to protect shareholders from this mistake, but the severalize motive was toensure that large projects could continue to raise capital.Coca Colas Objectives of the CompanyMainly all companies objectives are to survive, maximize their profits and to expand their business, however, from when Coca Cola had started, over the years they had achieved these objectives. So thecom pany have come up with six strategic objectives to provide the company with a framework for the companys victor. In 2003, either function of The Coca-Cola Company integrated these priorities intotheir business plans. And this year, they will continue to establish these priorities, and their benefits into e truly aspect of the business.Coca Colas Six Strategic Priorities====================================1. Accelerate carbonated soft-drinks maturation led by coca cola Coca Cola leads with their strengths. Carbonated soft drinks remain their most moneymaking business and Coca Cola is the most popular brandin the world. This strategy paves the way for growth.2. Selectively broaden our family of beverage brands to driveprofitable growth Enormous opportunity exists in categories such as juice and juicedrinks, bottled water, teas, energy drinks, coffee and more.3. Grow system profitability and capability together with our bottling partners Coca Cola is a company of relationships, and one of our most important relationships is the one we share with our bottling partners. In 2003, those relationships became more profitable and productive.4. Serve customers with creativity and consistency to generate growth across all convey We will continually strive to increase growth for the customers businesses, helping create a context for the companys growth.5. Direct investments to highest-potential areas across markets Coca Cola tailor their business approach to the individual marketplace based on its stage of floriculture. In this way, we direct our investments in a way that coifs the most business sense.6. Drive skill and cost-effectiveness everywhere By leveraging technology, creating alignment across business units and achieving economies of scale, we are able to operate with moreefficiency.To maximise profits enables the company to enhance the business, to expand the business, allow business to take over another business, buy new machineries, and pay more dividen ds to the shareholders. Enhancing the business means to upgrade the business in a sense that a businessbuys new Computers, new office equipments, new furniture, expand the office, employee more labor etc. These six objectives are just not the businesses objectives but they provide the framework for the companys success. They achieve these goals very successfully by striving forcarrying out against a crystal clear strategy for success, and by doing so with an unwavering commitment to quality.Departments of Coca ColaEvery organisation is made up of different departments, each of these departments help Coca Cola achieve their objectives. As Coca Cola is a large multinational company, the amounts of departments are huge. Each country has their own Head Office and departments. Coca Cola is geographically fall in into five geographic operating segments, also known as strategic business units (SBUs). The five SBUs are North America, Africa, Asia, Europe, Eurasia and Middle East and last( a)ly Latin America. If all these departments perform in the correct way then that will continue the success of Coca Cola.There are 6 functional departments within Coca Cola, these are Marketing Finance Packaging Sales Research and training AdministrationMarketingThe Coca Cola selling department at the Atlanta Headquarters develops core strategies for company brands to ensure that all communication is consistent in every market.With this cohesive effort,the Coca-Cola system maximizes its resources for market leadership and profitable growth. The marketing departments are responsible for marketing the products and advertising the products and promoting the products. If all these departments perform their duty firmly then theobjectives of The Coca-Cola Company will meets.FinanceThe finance department of the Coca Cola Company is responsible for financial record keeping. This involves keeping records of money received and paid out. The financial records will be used to bring inthe ann ual reports for the shareholders so that they can see the company performance. The Finance department is also responsible for the trouble accounts of the business like marketing etc. TheCoca-Cola Company finance department is also responsible for making budget of the company and for each department like marketing department or research and development department. They will also be involved in the planning process like taking over or any major decision.PackagingThe promotional material department of The Coca-Cola Department is responsible for the packaging of the products. They have to make the packaging attractive so that that product meets the eyes of the consumers. Bringing new products package is their responsibility. It works with the companies bottling partners to produce an attractive combination.SalesThe sales department of the Coca Cola Company is to coordinate the selling program. They also have to make the distribution methods, etc.Also, decide how much to sell and how m uch to store in the warehouse and to choose the transporting method which is the most cost efficient and the quickest way.Research and developmentThis department has their budget prone by the finance department and their responsibility is to investigate new products. They work closely with marketing by looking at marketing research findings. They have to bring new products in the market for the change because the consumer cannot stick with the same old products. If necessary then they also have to improve the quality of the products. The Coca-Cola Company research department has done a lot of research and recently they have launched many new products like Diet coke with lemon, Fanta Tropical, Minute maids, Fanta raspberry, Fanta blue berry etc.AdministrationThis department is essential for keeping the business going. They act as a help backup of the company, it is not the central purpose the business but every business organization would need this department.Most businesses rely o n administration to be organized. They pass out with enquiries, give messages produce documents and give information to any customer. The complaints that this department will get would be transferred to the research and development department to make the product pause or fix the problem that the consumer is having. These departments are the most important department of The Coca-Cola Company because they helps the company to meets the objectives of TheCoca-Cola Company i.e. surviving, customer satisfaction and make more profits. As I said that the help desk department satisfies the customer by providing the information they needs and taking the complaints and passing to the research and development departments who improves the products.Management StylesThere are four main types of management styles that each business would use. Coca Cola have four principles of citizenship that theywould have to incorporate into the management style* Provide quality in the marketplace* Enrich the w orkplace* Preserve the environment* Strengthen the communityA management style is an overall method of leadership used by the manager. The Coca Cola Company use the future(a) management styles, but each one in different departments. There are terzetto main types of management styles used in businessesAutocraticWhere the leader makes all the decisions, there is no negotiation and is very prescriptive and there is little clientele satisfaction. However, the job gets done quickly and there is less conflict between differentideas. This style is hardly used among the company as they believe that the escape of input could lead to poor results. Autocratic does save a lot of time as quick decisions can be made and there is no time wasted on discussion resulting in the business saving time and money.DemocraticThis emphasises on group agreements to generate new ideas. There are two types of democratic management styles democratic and consultative democratic. Democratic is where all the ma nagers, junior managers and employees are involved in the ideas and final decision process. Out ofall the workers, no-one has a higher level than the others n this management style.Consultative democraticThis is where the managers allow the employees to make the ideas but the ideas are forwarded to the executives or the manager consults their group to make the final decision. Coca Cola applies consultative management style to the company more as there can be less conflict for what the final decision is. The advantage of this is that it helps to motivate module as they are aware that they have a say in the company to some extent. The disadvantages of this that the process is very time consuming and effort will be needed by a manager to do this.Management encourages employees to set goals in line within the organization aims. There are reviewed regularly in performance appraisals. The advantages of this style are that it will increase efficiency of individuals and help to motivate t hem and train them so they are productive. The disadvantages of this are that it needs to be well organized and will not work in highly structured jobs.Democratic style is the management style that Coca cola adopts. This sort of management style involves empowerment. In this management style individuals and teams are given responsibilities and decisions to make, usually within a given framework. If anything wrong happens then the individuals and teams are then held responsible for the decisions that are chosen. With this type of management style it allows the manager to feel comfortable with other the great unwashed in the organization making some of the decisions. Democratic managers will often want feed back from their employees on decisions being made. Democratic leaders listen and act on the opinions of the group. This type of management is good as it makes the employees happy and productivity is high. This is a very good method because employees thoughts and suggestions are lis tened to by the business. This makes the employees seem as if they are respected and that their thoughts are valid.Coca Colas Management by ObjectivesManagement by objectives is a process of management that emphasises the role of leadership and communications in the organisation and control of the business. It is a method of managing managers rather than the workforce at large. The following shows how Coca Cola is managed, by the three basic elements in management that Coca Cola uses by the objectives The identification of agreed goals by a manager and a subordinate The definition of the subordinates responsibilities in terms of agreed results The use of agreed goals and responsibilities to control the progress of the businessCulturesEvery business is made up of different cultures and the cultures that are present within the business depend on the management style and the organisational structures that are used. The different types ofstructures areRole Culture- This is best suited t o a hierarchy organizational structure. This type of culture works best by every employee playing the role that he or she has been predetermined and corresponds with the rules and regulations of the businessTask Culture- This culture encourages people to work as a team this works best in a star structure.Power Culture- This works well in a matrix structure. It is based around one predominant individual/leader.Person Culture- this culture focuses on providing administrative help and support and close attention to one person in the organization.Role culture is the culture that Coca Cola adopts. This is where all members have a defined job or role to carry out. Role culture is normally split up into a number of functions that are organized in a hierarchical way. Coca Cola would divide themselves into various functions like accounts, marketing and production. These also have hierarchical ordering of office examples of these are production director, production managers, supervisors, tec hnicians, operatives etc. This type of culture works by logic and rationality. Role culture is mainly used in large organization. In this culture position in the main source of power and rules and procedures are the main source of influence. They also use task culture s the employees from the I.T department might have to work together to teach their goal or targetManagement style of Coca Cola.If the culture of the business is not good, it can affect the number of absenteeism and punctuality. This means that if Coca Cola had a hard and unfriendly culture it can force their provide not to come to work because they might be picked on every day by other staff members, or they might not like the work they are given so they either come in late or take a day of work. This would result in the business losing out on work, and have less time to call in for a replacement.The culture of Coca Cola could have an affect on industrial relations, between managers and workers. So if Coca Cola didnt have a warm and genial culture it would cause more disagreements between staff and managers and staff would not be motivated to work, for example, staff may have to cut down on rest days, this could cause arguments as all staff would be tired from working everyday and would not have time to recover or spend it with their family. However, if the company had a warm culture then the managers and staff would get very well as staff would have less stress to compete with and would have a friendly environment to work in without having someone constantly shout out at staff.Organisational StructureEvery business works using an organisational structure, this means that the organization has its staff organized in a certain way depending on the staff, their responsibilities and whom they must report to. Cultures and management styles play a massive part in organizing the structure.As the Coca Cola Company is a large multinational company, it is made up of many organizational structures, these are broken down into the different units that are located around the world, which are North America, Africa, Asia, Europe, Eurasia and Middle East and finally Latin America. Each unit is then organised into their own organisational structure. The following structure shows the Coca Cola Company in the Great Britain. Then each of the different departments has their own structure.Marketing Organisational StructureThe structure of the marketing department is quite simple and is every bit spaced out. It is a formal structure, which means that it has limited communication channels, the arrows show the flow of communication, it is mainly vertical flows of communication. You can easily see no problems in this structure as the span of control is spaced out and can easily be managed.Measuring Coca Colas SuccessMeasuring Cola Colas success can be easily done. Their success can be seen by the quality of its product and its sales figures. At the current day, Coca Cola lead by having the most pop ular and most consumed soft-drinks in the world. The information that the company can use to measure their success can be many of the following Sales figures In 1984, 77 of Coca Colas operating income came from soft drinks. Today the figure is 97.* Market share Coca Cola, in 2000, took up 20.3% of the following drinks. The graph shows that 89% of sales come from soft drinks, 50% of the soft drinks sales come from Coca Cola.Market Share of 2000Coca-Cola Classic 20.3%Pepsi 13.9%Diet Coke 8.6% freshet Dew 7.1%Sprite 6.5%Dr. Pepper 6.2%Diet Pepsi 4.9%Seven-Up 2.0%Minute Maid Orange 1.5%Others 29%Total 100% Questionnaires questionnaires can be used to ask people their views on Coca Cola and their products. The various that can be asked is about the prices of the product, the quality of it, etc. this information then can be assessed to see if the company is doing it. The Company delivered solid results in 2003. They continued to work hard to re-activate the Companys considerablehistori cal advantagesOur geographic reach, our wonderful brands, our range of packages, our financial strength, our ability to make connections, our marketing and our innovation capabilities The company is never satisfied, but they always make solid progress. In 2003, the company grew profitable carbonated soft-drink volume, led by Coca-Cola branded beverages. They had grow the range of juices and juice drinks, teas, sports drinks, waters and other noncarbonated beverages that they offer around the world. Also, they had improved their focus on building brands and working with customers and bottling partners worldwide. The Coca-Cola system is working more effectively today, for consumers, customers, bottlers and our share owners, than it has in a very long time.Use of ICT in the businessInternal ICT Communications used by Coca Cola Coca Cola use ICT to communicate both internally externally. This includes communication with Employees facsimile will be used to contact the employees becaus e most employees will have a fax machine in their office or wherever they will be working Management If management need to be contacted then pagers would probably be the alternative to contact them, fax machine could be a factor as well. Customers The only ICT communication used by Coca Cola to contact customers could be E-mailing, they could E-mail customers different products or new sales etc. Distributors of Coca Cola They would probably be contacted by mental picture conference because the distributors are very likely to be from other countries rather then the country the business is trying to consumer the products from. Internal ICT Communications that Coca Cola use areE-mail E-mail will save a lot of time within the business if everybody would start emailing instead of calling a meeting. Coca Cola staff has programs installed on their computers, which tells them once they have received E-mail. This lets them communicate quickly with one another. Staff within Coca cola has ingress to a computer where they can E-mail. The disadvantage of this type of communication is that it is quite expensive, as it would have to be on all day long. The advantage of this is that it is tumultuous and information can be passed on quickly. They can avoid the disadvantage by having broadband where you pay a certain sum for unlimited access.Fax Faxing allows people to have copies of documents they may require. Faxing is similar to emailing. But you do not receive the messages on a computer but a fax machine. Messages can also be sent via fax to tell employees of urgent messages, meetings, memorandas, newsletters and import notices are amongst things that can be sent by via tax. The advantage of this is that import documents can be received quickly but the disadvantage could by that not everyone within the business would actually have a fax machine to use, or they may not look at it very often. these people to receive information wherever they are at whatever time. Page rs, in general are a good thing as it allows people to receive information on the move. A disadvantage of this would by that you cannot send long messages, all messages must be short, and this could lead to misunderstanding of messages. Words may be shortened and this may lead to more of confusion.