The paper "Management and Organization Theory of Coca-Cola" is a perfect example of a business case study. Coca-Cola is one of the world's largest beverage companies with more than 500 brands of non-alcoholic drinks. The company has four of the world's top five non-alcoholic drinks which are; Coca-Cola, diet Coke, Fanta, and Sprite. The company's operations are in more than 200 countries. The company accounts for 1.9 billion of the 57 billion beverages that are served daily globally. The company was incorporated in 1919 in the USA (Coca-Cola Company, 2014). Coca-Cola faces high competition in a non-alcoholic drinks market.
Major competitors are; Nestle, DPSG, Kraft Foods Group Inc. , and Unilever Group. Despite the high competition in the market, the company has done remarkably well becoming the market leader. As of 2013, Coca-Cola had 130,600 employees. In 2014, the company had 239,010 shareholders (Coca-Cola Company, 2014). The company's goal has been to utilize its resources which include, brand, finances, strong distribution system, global presence, talent, and management commitment to retain and strengthen its competitiveness (Coca-Cola Company, 2014). This is in a way that enhances their shareholder's value. Justification Despite stiff competition in the non-alcoholic beverages market, Coca-Cola has been performing impressively.
The company has maintained strong sales globally proving a high level of success. The company has faced strong competitors and have been able to change with trends such as pressure to have healthy drinks. This has triggered my interest to use Coca-Cola as my organization of focus. The organization has been able to strategically take over the non-alcoholic drink, market making it a great target organization to analyze. 2. Selected Theories for Analysis of Coca-Cola Agency theory considers the relationship that exists where one person (principal) engages another person (Agent) in a contract.
This involves the principal delegating some of their powers to the agent to perform a service on their behalf (Miles, 2012). This will help in analyzing how stakeholders in Coca-Cola have given management decision making authority and the relationship that exists. The theory is based on the separation of ownership and control. In this case, the Coca-Cola board of directors is the principal while managers are the agents.
Ang, J. S., Cole, R. A., & Lin, J. W. 2000. “Agency costs and ownership structure.” The Journal of Finance, Vol.55, no.1, p.81-106.
Bouissou, J. 2011. Campaign to Stop Killer Coke: Coca-Cola at the center of conflicts over water in India. Retrieved from http://killercoke.org/article_110306lecture_d-yves.php
Brown, A. 2000. “Making sense of inquiry Sensemaking.” Journal of Management Studies, Vol.37, no.2, p. 45-75.
Coca-Cola Company, 2014. Annual report, Delaware: Coca-Cola company, Retrieved 27th March 2015, http://assets.coca- colacompany.com/d0/c1/7afc6e6949c8adf1168a3328b2ad/2013-annual-report-on-form- 10-k.pdf
Kong, C. & Ruggeri, G. 2012. “Stevens, Knowledge In Real World Situations: A Diagrammatic Funnel Model,” Journal of Knowledge Management Practice, Vol. 13, no. 2 (online).
Miles, J. A. 2012. Management and organization theory: A Jossey-Bass reader. San Francisco, Calif: Jossey-Bass.
Weick, K.E., Sutcliffe, K.M., & Obstfeld, D. 2005. “Organizing and the process of sensemaking,” Organization Science, Vol.16, p.409-421.
Weick, K.E. 1995. Sensemaking in organizations. Thousand Oaks, CA: Sage.