Organizational structure of coca cola Essay Example

He had made an agreement with Margaret Dozier and her brother Woolfolk Walker to make payments totaling $1,000 over a specific period of time.

Advertising

The creation of the modern image of Santa Claus in a red-and-white suit, which was popularized by Coca-Cola, is often attributed to them. This depiction of Santa has had a significant impact on American culture because it became iconic in their advertisements. However, it's important to note that Coca-Cola wasn't the first soft drink company to use this version of Santa in their ads. In fact, White Rock Beverages featured Santa promoting their ginger ale as early as 1923, and they had previously used him for mineral water ads in 1915. Before adopting Santa Claus as their advertising figure, Coca-Cola relied on well-dressed young women to promote their drinks. In 1895, Hilda Clark, a young actress from Boston, became their spokesperson. It wasn't until 1941 when "Coke" officially became a trademark for Coca-Cola and was accompanied by a series of ads educating consumers about what "Coke means Coca-Cola".

Released in 1971 as part of a Coca-Cola commercial, the hit single "I'd Like to Teach the World to Sing" contributed to Coca-Cola's strong advertising focus. The company aimed to establish itself as the top beverage choice globally, with particular emphasis on southern regions of the United States where it originated, such as Atlanta. Don Naylor, a former Atlanta radio veteran who worked at WGST from 1936–1950 and WAGA from 1951–1959, played a significant role in writing and producing numerous TV commercials for Coca-Cola during his tenure at the McCann Erickson advertising agency from 1960 to 1986. These early

television advertisements often featured renowned actors, sports stars, and popular singers endorsing Coca-Cola. In the 1980s, Pepsi-Cola conducted taste tests via television ads that asserted "fifty percent of participants who said they preferred Coke actually chose Pepsi."

According to statisticians, taste tests have revealed that most individuals are unable to distinguish between Pepsi and Coke in blind tests, resulting in a 50/50 outcome. In response to Pepsi's advertisements, Coca-Cola launched their own ads during the cola wars. One of these ads compared the Pepsi challenge to chimpanzees attempting to determine which tennis ball was furrier. This strategy helped Coca-Cola regain its position as the market leader.
Selena served as a spokesperson for Coca-Cola from 1989 until her death and appeared in three commercials for the company. To celebrate her five-year partnership with the brand, Coca-Cola released special Selena coke bottles in 1994.
In 1982, The Coca-Cola Company acquired Columbia Pictures and began incorporating Coke-product images into many of its films. However, despite an initial successful period under Coca-Cola's ownership, Columbia eventually performed poorly and was sold to Sony in 1989.

Throughout its extensive history, Coca-Cola has employed various advertising slogans including "The pause that refreshes," "I'd like to buy the world a Coke," and "Coke is it" (see Coca-Cola slogans). A significant milestone occurred in 2006 with the introduction of My Coke Rewards, an initiative aimed at fostering customer loyalty. This program enables individuals to earn points by entering codes from specially marked Coca-Cola products on a dedicated website. These accumulated points can be redeemed for a diverse selection of prizes or opportunities to take part in sweepstakes.

To successfully navigate the changing world,

our Mission, Vision & Values serve as guiding principles. In order to thrive in the future, we need to anticipate and adapt to upcoming trends and forces. It is essential that we take proactive measures to prepare for what lies ahead. Our 2020 Vision acts as a roadmap for achieving long-term success by working together with our bottling partners.

Our vision is to provide informative and engaging content through various platforms.

Our strategic plan is founded on our vision, which influences every aspect of our operations. The vision sets out the goals we need to achieve in order to achieve sustainable and high-quality growth. Our aim is to create a work environment that inspires individuals to reach their full potential. We strive to offer a diverse range of exceptional beverage brands that not only meet but exceed people's desires and needs. Building strong relationships with both customers and suppliers is important to us, as it creates lasting value for everyone involved. Additionally, we are dedicated to being a responsible contributor to society by actively supporting the development of sustainable communities. While prioritizing long-term returns for shareholders, we also recognize our broader responsibilities. Ultimately, we aspire to be an agile and adaptable organization.

Our successful culture

Our 2020 Vision is driven by Our Winning Culture, which sets the standards for us. Our values guide our behavior and actions in the world. Leadership, collaboration, integrity, accountability, passion, diversity, and quality are the principles that steer us. We also prioritize understanding the market and meeting the needs of our consumers, customers, and franchise partners. Actively engaging in the market through listening, observing, and

learning is essential. Having a global perspective and consistently implementing strategies in the marketplace is crucial. Maintaining curiosity and striving for excellence daily is important.

In order to be successful, it is important to work efficiently and with a sense of urgency. This means being willing to change course when needed, while also staying motivated and striving for efficiency.

Assume ownership and take responsibility for our actions. As guardians of the company's assets, our main focus should be on creating value. Encourage and reward our employees for taking risks and finding innovative solutions. Analyze our successes and failures to learn from them. Foster a culture that sparks creativity, passion, optimism, and enjoyment, thus embodying the essence of our brand.

The Division of Work & Grouping within the Coca Cola Company is characterized by a unique division of labour. According to Siobhan Tiernan, Michael J. Morely, and Edel Foley (2006), this division of labour involves assigning specialized tasks to individual workers or groups of workers to enhance efficiency. The Coca Cola Company follows this approach by organizing its workforce into a tall hierarchy with subordinates divided based on regions.

The Coca Cola Company employs a division of work based on geographic location. Each region has designated subordinates, although the number of employees may differ from one region to another. This division allows the company to benefit in various ways. Being closer to a particular market enables teams to tailor their work to meet the preferences of consumers in that region, including advertising campaigns. Regions are further divided, as seen in the example of Europe being divided into North West and South East,

Nordic and Baltic. By considering the tastes of consumers, the company can effectively meet their needs through these divisions. For instance, the UK division ensures appropriate coverage of marketing activities in Great Britain, accounting for cultural differences that may not be applicable in other countries. The presence of numerous sub divisions within the company is therefore essential.

According to The Times 100 (2005), each division within the Coca Cola Company has its own Marketing manager, Public Affairs Director, Finance Director, and other roles. When a division plans a new beverage launch or an advertising campaign, they must communicate with their superiors. Due to the tall hierarchy of the company, communication needs to reach the corporate division in North America, where a 12-member executive committee has the final say on division activities. The Coca Cola Company promotes teamwork amongst its employees at various levels, such as on the bottling floor or during new product launches. For instance, the Great Britain division forms a team consisting of marketing specialists who share their market research and testing results, food technologists who determine the feasibility of product changes, financial experts who discuss the associated costs, and other specialists like the strategic planning director (The Times 100, 2005).

The division of work is crucial for Coca Cola's effectiveness. They have accomplished this through successful global and local strategies.

Both global and local strategies are important.

Coca-Cola uses a corporate segment for global strategy and geographic segments for local strategy to effectively manage its functions, responsibilities, and work. This helps the company avoid duplication and inefficiency, allowing it to concentrate on achieving its goals with an optimal

business structure.

Global: The Corporate Segment

The corporate segment of Coca-Cola consists of 12 company officers forming an executive committee. This head office has a vital role in giving guidance and making significant decisions for the brand. Within these officers, one acts as the CEO, while others have different responsibilities like Senior Business Executives and Chief Financial Officer (The Times 100, 2005). Having a robust corporate segment has been advantageous for Coca-Cola as it instills confidence and ensures order throughout the organization.

Global: Detailed description

The main offices of Coca-Cola have authority over the company's recipe (technology) and manage the production of syrups and concentrates. These syrups and concentrates are later mixed with water at specific bottlers. There are 30 manufacturing plants owned and operated by the company worldwide that produce these syrups and concentrates (Richard Girard, 2005). They are responsible for establishing production plants globally and handling any legal or financial matters that affect the entire organization. The company has faced various challenges in the countries where they produce. For instance, in 2002, they encountered issues related to environmental pollution and the detection of high pesticide levels in their products in India (Richard Girard, 2005). The corporate segment was crucial in maintaining customer trust in the brand and effectively addressing these issues.

Local Strategic Business Units

Coca-Cola has achieved global success by adapting to the unique needs and preferences of various regions. By doing so, Coca-Cola is able to set suitable prices, distribute products effectively, and create innovative solutions that meet the requirements of the worldwide market. In each region, Strategic Business Units (SBUs) conduct market research and

use local advertising campaigns in native languages to promote the brand (The Times 100, 2005).

Locally, the information is presented comprehensively.

The SBU’s are divided into divisions, which allows for the further spreading of Coca-Cola departments and production plants in various regions. The UK division, located in the North West Europe division, exemplifies a Coca-Cola company that implements a more localized level of management compared to global positions in the corporate segment. As previously mentioned, there are different specialized departments within the company. The entire company is overseen and represented by a president (The Times 100, 2005). This specialization enables efficient management of the company. The company ensures the satisfaction of its customers by handling public affairs and maximizing customer satisfaction within each division.

The primary goal of The Coca Cola Company is to expand its global product reach while also establishing a local presence in each country. Each regional branch of Coca-Cola aims to connect with consumers by understanding their attitudes and perceptions. By using a diverse range of products, Coca Cola customizes its offerings to fit the specific conditions, lifestyles, and preferences of each market. To effectively adapt to changing markets, the company introduces new products that are in demand in certain areas. Coca Cola International exclusively produces the syrup, allowing independent bottlers to adjust the sweetness level based on local tastes.

The bottlers can choose to use sugar instead of corn syrup. In Mexico, Coca Cola produced a 2 and a half liter bottle to cater to the larger Mexican families who often gather during meals. The company has an efficient distribution system in each region, relying on

independent distributors as well as forming partnerships with local distributors. Recently, Coca-Cola partnered with local bottlers to open their 42nd bottling plant in China. Working with local bottlers has the advantage of their knowledge about the local market. During times of economic crisis, governments often restrict imports and promote buying local products. By connecting with the local business community, Coca-Cola has avoided being classified as an import.

The Coca Cola Company emphasizes their commitment to local assembly and employment opportunities in their bottling plants and distribution methods. The company operates with a decentralized structure, allowing for regional executives to make decisions about new products. The flexibility and flatter organization of power within the company are crucial for global operations. Major decisions, such as the sponsorship of the 2002 World Cup, are made at the highest level of the company. The executives of the Coca Cola Company have extensive experience in all areas and regions of the international company.

Having managers with different perspectives in a large company like the Coca-Cola Company is beneficial for handling potential issues. Communication problems are inevitable in such a vast organization. In 2006, the CEO introduced a new strategy that included face-to-face meetings among local division managers. The purpose of these meetings was to encourage the exchange of ideas and involve employees in decision-making, ultimately boosting motivation. This was necessary because employees felt left out from influencing the company's direction, leading to reduced motivation. To ensure quality control and facilitate the growth and globalization of the company, Coca-Cola limits its bottlers to sourcing ingredients solely from approved suppliers.

In order to maintain consistent quality across all regions,

the company needs to successfully coordinate and collaborate with their bottlers. In Coca-Cola Serbia, all finished products are examined in on-site laboratories and undergo annual evaluations conducted by international representatives. Coca-Cola in Serbia relies on more than one thousand suppliers for various items like sugar, cans, PET packaging, labels, and more. This approach has proven successful in multiple regions, including Coca-Cola Hellenic Serbia, which was awarded the title of the Most Desirable Employer in 2011.