Overview of Coca-Cola Company Profile - Case Study Example

Introduction Change in any company is inevitable as the old saying goes. It can be classified variously depending on the impact that ensues. Change can be classified as rapid or slow, and it may affect a company’s culture or not (Kumanyika, 2015). It is important in progressive development. According to Roderick (2016) company can engage in strategic changes for various reasons that ultimately expand its boundaries and increase its value. The reformations (Ronit & Jensen, 2014) can be due to intention to create awareness of its product, to combat competition, increase sales and improve its image to the consumers. On the other hand, changes are necessary for other reasons such as to stabilize the firm regarding a crisis as Vandermey (2014) explains. As much as change is vital in an enterprise, challenges affect the change process. First, implementations put up for change to occur prove difficult (Hanson, 2015). A usual cliché moves around that: it’s easier said than done (anonymous), it 's hard to implement the plans for reformation. Also, a company’s culture, which is hard to change, impedes the process (Kumanyika, 2015). Also, departmental silos are impervious to change and affect the effectiveness of it. Del Buono (2015) asserts that homogenous workforce lacks a character of diversity that is vital for effective change. As Miller & Washington (2013) point out, each limitation to change is unique to each company. Overview of Coca-Cola Company Profile Coca-Cola CO’ is a global company and is the sole partner of the largest bottling company in the world. The firm produces, advertises, dispenses its products. Their products are diversified by the demand of its market. The products consist of soft, carbonated soft drinks and beverages. Of particular interest in this study is, the company based in North America particularly in the USA. Changes in the Coca-Cola Company Currently, the company is undergoing strategic reformations that often have to do with marketing. Both of managerial and departmental changes such as commercialization in the firm will undergo renovation. The types of changes that are present and currently still ongoing are that of reconstruction and adaptive reforms. Features of structural change involve a change in the management system. The adjustments are necessary to re-evaluate the financial situation brought about by discrepancies. Parsons (2016) points out that bringing in new directors to oversee the firm’s proceedings often lead to broad steps towards progress. To some extent that particular change is meant to stabilize surfacing conflicts. Adaptive change, on the other hand, is a prerequisite to reforming the marketing plans. It is subjective to the nature of the population and their affiliations towards what they eat and drink. It then spells out that the company’s staff must lend themselves to conformation. With the ever dynamic consumer profile and taste, change is timely. A window of opportunity to expand their customer range presents itself often. The changes in which the company undertakes have visible but short-term results. Del Buono (2015) elaborates that short-term results of change encourage and enhance dedication of the implementers of change. Change processes (Vandermey, 2014) are dependent on some factors that determine its success. In particular, in the case of the Coca-Cola enterprise, time, the capacity and diversity are of the essence. SWOT Analysis The company enjoys the privilege of being one of the leading beverages producing company. It also thrives because of its partnership with the world’s largest bottling company. Most bottles produced – (about 64% )in the entire year the enterprise’s trademark. Coca cola business has it backyard in most of the Europe in the countries of Holland, France, and others. Headquarters are located in Georgia, USA. Long term agreements between related enterprises to produce synergistic relationships are a common asset to the company. The contracts can run up to twenty years, and they undergo renewal due to the self evident profitable association. The agreement is usually based on a distribution of both the products of the company together with those of the associate companies. Fostering long period oriented contracts retain their status as the strong asset for the business. The enterprise appears to be able to adjust appropriately according to the needs of their consumers. When the customer’s opinion is usually high held then the company is bound to progress financially (Roderick, 2016). Familiarizing with the customers creates a favorable image which is of interest to the enterprise. The company (Coca-Cola Enterprises, Inc.,2015) prizes itself as a company that produces products that are potentially customized to each customer. Among other strongholds of the enterprise, good public relations with the people go a long way for the company. Weakness Despite the commendable prestige attribute of the business, challenges know no boundaries even to the large enterprise. Debts are the primary challenge because they increase with each year at eyebrow-raising rates. From the year 2011 over to 2014, the amount payable increased grossly by 3%. Figures of $3,012 million and $3,952 million in the years 2011 and 2014 respectively were recorded as debts. Such a setback to development has consequences that reflect the rate at which growth takes place. High-interest rates attract an increase in the total amount to payable for debt. As a result, there is a reduction in capital for investment hence a limitation in venturing into profitable innovation, expenses and production of goods. Opportunities The company works on the demand of their products. With the current issues of health, people are ever alert about health-related matters (Ronit & Jensen, 2014). Keenness is then applied in choosing what to eat and drink. The company then seeks to fulfill the needs of its consumers. It is on the frontline of advocating for health and better eating. The enterprise finds it way into stores that sell healthy beverages in the form of healthy soft drinks. The manufacturing of the products requires diversification. In essence, more goods that are produced serve a purpose in nutrition. Following the need for beverages that quench not only thirst but also food, manufacturing takes a different direction. The business maintains its status despite the changing perspectives of the consumers. Beverages that are sugar-free and low in cholesterol appeal to those who eat and drink strictly healthy foods and drinks. Traditional products are also available for other types of consumers. Threats Health problem arising from unhealthy eating reduce the market for the company. Obesity (Ronit & Jensen, 2014) is a crisis that is mainly associated with eating a lot of junk food and carbonated soft drinks. Creating health awareness at the expense of the company’s products is detrimental and unprofitable. The government as a result of the health risks at hand implicates that the enterprise increases the prices of their product for much profit. It then results in high taxation of the products. The business experiences losses after that. Also, the government also imposes limitations on the company’s product distribution. The action is a measure to counter the health problem that has become of primary concern. Manufacturing ingredients become scarce and pose a challenge for the company. Water for beverage production is rare due to the increasing population. The water in some instances is polluted so that it is not up-to-standard. According to Coca-Cola Enterprises, Inc. SWOT Analysis’ (2016) report, treating large amounts of such water volume is expensive to the company. Intense competition from other companies producing similar product affects the growth of the enterprise. Companies such as PepsiCo share target markets with Coca-Cola. Race influences various changes within the enterprise. Managerial changes occur, competition being the external lever to the reformations. Despite the stiff competition, the enterprise can compete well in the market. PESTEL Analysis Clear regulations or standardization on the production of carbonated soft drinks are unavailable. The company produces goods that are diverse. There are those that suit the needs of keen health-watchers that have nutritional value. The formula is manufactured with of vitamins and other herbs. They are produced with dieting consumers in mind. Other goods are available and involve a variety of carbonated drinks. The non-alcoholic beverages can be either sugar-free, called diet coke or traditional formulas. The diet coke has relatively low sugar content so that perception of its healthiness arises. The traditional brands have high sugar content and are not the reserve the concerned about health. The carbonated soft drinks also come in as food flavored while others come in an array of colors. Food flavored beverages come in the form of lemonade among other varieties. Cultural Web The coca cola company doesn’t have any form of formal training within its manpower, specifically in their convenience stores (Chaklader, 2014). The company does not have particular routines stressed within the organization. Managers and the workers uniting together at the workplace. Having a common goal in towards achieving the business’s objectives. And by doing so, it leads to teamwork within the organization since there is no competition amongst the workers. Any changes made within the organization must have a bearing on the activities of the organization and be of great significant (Zhaochuan, 2014). New training programs have to address the customer care services. They are very vital in retaining the consumer loyalty. The daily activities can be changed in that there is no restriction to any at the workplace (Vitalini, 2015). Force Field Analysis An according to (Swanson, 2014) force field, analysis is a system created by Kurt Lewin to analyze the forces that are opposing to change. This is an important decision making technique. It helps when making decisions by determining the forces that are for and against a change and communicating the rational behind the decision. It is used to determine whether to continue with the decision and increase the opportunities of success through promoting the forces supporting the change and You can use it for two purposes: to decide whether to go ahead with the change; and to increase your chances of success, by strengthening the forces supporting change and wilting those against it (Reichard, 2015). Coca cola’s current state of Hong Kong stores is real good and forms one of the best soft drink distributors in Hong Kong (Vitalini, 2015). Nonetheless the store is not anything near other stores in terms of inventory, marketing and performance in other stores within Coca-Cola Company. The company looks forward to improving the efficiency of the Hong Kong stores regarding marketing and inventory including the productiveness of the employees through implementing change management programs. If the changes take place within the management and businesses, it is seen that there will be an increase in the productivity of the company (Zhaochuan, 2014). If these changes do not take place, the performance, inventory and marketing will worsen, and this eventually will be inefficient, and this might be advantageous to the competitors. With this case, the main stress of the coca cola to meet the needs of their target market with the best product and manufacturing and product distribution. The change management of the company being very fragile and that they have predicted that there might be some marketing challenges in the future, the company will need to implement the changes (Gondra, 2016). In order for the company to address this problem, they have to determine all the possible problems presently in the company. This will definitely have an impact on the stakeholders and the employees (radical change). The process of change is toward the development of the employees. But not on the procedures because the company is already building a reputation on the delivery of excellent services in the market. Before implementing the change, the company has to consider the possible financial problems that the company might face in the future. Force –field analysis is very dynamic regarding changing management (Vitalini, 2015). The plan is so logical on any likely opposition. In other terms, change management is also known as formulation and assimilation of change in a methodical procedure. According to (Swanson, 2014), the primary objective of change management is to bring in new systems in the organization such as total alter the project of which is normal to the companies that are involved in the modification management. This can be easily compared to the implementation of new marketing plans. For companies such as Coca-Cola to attain stability, production or management they have to evolve to higher standards. Hence, for them to achieve extreme development or essential change. This could be done by modifying the company’s mission, application of new technologies, adoption of new programs, group efforts and reforming business operations. The organization is invigorated on settling on the change management due to external factors (Reichard, 2015). Change management can alternately be stated as a response of the various businesses to the changes brought about by the environmental factors. Which the organizations have got minimal or totally no control over them. The new team designing and implementing it into actuality is the whole attention of organization change and development. People are adaptive to change. Though some skills should be current from the initiators of the modification. This would end up having a successfully implemented project. Managers need to have all the required abilities. Not only being in a position to identify and detecting what is necessary to be changed but also being able to come up with the modification successfully, Thus in this review of the literature that is related, various methods, common problems, influences, And some of the case studies and preferred practices in change management. That will be revised and interpreted about the research question contacted by the company (Stepanyan, 2014). So that the firm would be able to have a clear picture of the structure of the change management. Thus, the managers being able to use force-field analysis to come up with different approaches that they can use. So as to implement some of the strategies to use to achieve their objectives as a whole (Fu-Ling, 2009). Recommendation Bearing that the force-field analysis had been earlier conducted. The proposal plans to enable efficient managing in coca cola Company the following observations have to be considered and be implemented Renewing Systems and Structures The coca cola organization being an entrepreneurial start-up or a simple structure. The structure is defined as having no techno structure at all (Stepanyan, 2014). It has got few support staffers, little differentiation in a work place, Division of labor and minimal ladder in management. Additionally the behavior in the organization environment. Especially in the suitability store, it’s not that formalized where it uses the little training, planning, and the liaison plans. A new organization in a coca cola business would lead machine Bureaucracy. Of which is a machine bureaucracy which is an organization designed and it has got a transparent configuration and the design limits where it consistently carried out (Reichard, 2015). Its investigations that at the end they included specialized daily operating activities, formulation of rules regulation, formalized activities at the operation centers, dependence on the functional basis for the rolls where it involves group work, proliferation of formalized communication during the company, complexly detailed leadership framework with sharp differences between the staffs and comparatively centralized decision-making forces (Swanson, 2014). By the use of the following approaches, the organizational framework of coca cola will be able to monitor. The competence performance of its workers since there is a measure and limits. Procedures which help to expound on the format of management as it is constructed (Vitalini, 2015). Control Systems The organization does not focus on the punishments and the rewards to its employees, besides the regular bonus for the incentives and withdrawal from the job penalty. The less control associated with the workplace has got a history in the company. Since it provides the fresh products to the customers (Gondra, 2016). Power Structures. Success is from the efficient evaluation of the challenges in the working environments. And the also the market and the rate at which they react to the opportune available. According to the senior manager of the organization. The management powers have to be distributed evenly from the top to the bottom. That’s senior leadership, vice president then the division leadership. The organization dominant practice is being practical and available to the changes allocated to them. These changes can be easy to in use since the company’s proposals are achievable, and they are realistic. And in additional they have got a positive impact on the employees (Zhaochuan, 2014). Negotiation and Agreement. The organization should talk to its employees and make a deal with them. And during these negotiation incentives to be received by the employees has to be looked upon. And a deal is done for the betterment of the employees. This could be put in place only when they adopt the changes introduced by the management strategies (Regassa, 2011). Facilitation and Support. Since change is a slow process activity, some employees will resist some of the changes. Because they are not ready to switch to the new norms that have to be put in place by the management. To prevent this management has to facilitate all the employees who are getting it hard to adjust to the new changes in place. Coming up with a support program which would help the employees to turn more freely (Rovenpor, J. (2014). Education and Communication. Employees have to educate and well familiarized with all the systems in the organization. To outdo the resistance in the whole group. This has to done before any changes within the organization. And before any implementation of any changes. This will enable all the workers to have enough time for transforming to the norms positively (Chaklader, 2014). Reference Chaklader, B. (2014). Efficient Water Management through Public-Private Partnership Model: An Experiment in CSR by Coca-Cola India. Vikalpa: The Journal For Decision Makers, 38(4), 97-104. Coca-Cola Enterprises, Inc. (2015). Coca-Cola Enterprises, Inc. MarketLine Company Profile, 1-30. Coca-Cola Enterprises, Inc. SWOT Analysis. Coca-Cola Enterprises, Inc. SWOT Analysis [serial online]. December 11, 2015;:1-8. Available from: Business Source Complete, Ipswich, MA. Accessed May 11, 2016. Del Buono, A. (2015). Marketing in the digital age. Beverage Industry, 22-27. Fu-Ling, H. (2009). How can different brand strategies lead to retailers' success'-Comparing Manufacturers brand for Coca-cola and Private Brand for Costco. Journal Of Global Business Issues, 3(1), 129-135. Functional Drinks Industry Profile: the United States. (2015). 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