The Coca Cola Company
This report is to investigate Coca Cola Company. On this coursework I
will look at the company on all aspects from their business functions,
organisational structures to the company's objectives. I would have to
look at the departments within the business and the functional areas
within these departments, also look at the different management styles
within the business, looking at the organisational structure, the
communication used within the business, and the impact of ICT on the
The Coca-Cola Company is the world's leading manufacturer, marketer
and distributor of non-alcoholic beverage concentrates and syrups.
Along with Coca Cola, the world's best known brand, The Coca Cola
Company markets four of the world's top-five soft drink brands,
including Diet Coke, Fanta and Sprite. Throughout the world, no other
brand is an immediately recognizable as Coca Cola. With operations in
more than 200 countries, a diverse workforce
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 serve throughout the world. It operates as a
local business partner, providing quality in the marketplace,
enhancing the workplace, preserving the environment and strengthening
Coca-Cola is the most 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. The
name 'Coca-Cola' was suggested by Dr. Pemberton's bookkeeper, Frank
Robinson. He kept 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 carbonated soda in Jacob's 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 year's expenses were just over $70, Dr. Pemberton took a
loss. Today, products of The Coca-Cola Company are consumed at the
rate of more than one billion drinks per day.
In 1893, Coca Cola was registered in the United States and then
further investment was put into it to expand the business. To handle
the enormous capacity of its business, the Coca Cola Company has
divided up into six operating 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 the
United States. The country that I'm going to be concentrating on is
the United Kingdom and how the company works in the U.K.
Source of Information
research - annual reports, company reports, staff induction pack,
Find past articles on chosen company
Finding organisational structure of business.
Phone/write to company or check website
Investigate the functional areas and the management style of the
Look in annual report or company website
I drew up this action plan as a guide to prioritise what information I
need to complete this report. The method of research I will use the
most on this report will be secondary research such as the annual
Coca Cola's Ownership
The Coca Cola Company is a public limited company (plc). They offer
shares to the general public through the company. It is mainly larger
companies such as Coca Cola that are public limited companies.
The advantages of a public limited company are:
* Shareholders have limited liability
* The sale of shares enables larger sums of money to be raised
* While the company has this money permanently, the individual
owners can recoup their money by selling their shares to others
* Directors may be brought in as experts in certain fields
* Produce goods at lower unit cost
* Due to their size they can benefit from economies of scale, e.g.
bulk buying, cheaper borrowing
The disadvantages of a public limited company are:
· There are a number of legal requirements to fulfil in setting up a
· Regulations mean that a company is more expensive to set up than a
sole trader or partnership, although the cost may be as little as
£100, and some already registered companies can be bought off the peg
· The accounting of a company is less private than for other forms of
· The company could become to large resulting in poor labour relations
· There could be a conflict of interest between shareholders and the
Board of Directors
· Possibility of takeover or merger because shares can be bought by
Coca Cola also have 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 of
Limited 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 not legally
offers 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 shares to the general public on
the Stock 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 a
dividend. The value of the dividend is decided upon not 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 key motive was to
ensure that large projects could continue to raise capital.
Coca Cola's Objectives of the Company
Mainly 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 the
company have come up with six strategic objectives to provide the
company with a framework for the company's success. In 2003, every
function of The Coca-Cola Company integrated these priorities into
their business plans. And this year, they will continue to establish
these priorities, and their benefits into every aspect of the
Coca Cola's Six Strategic Priorities
1. Accelerate carbonated soft-drinks growth led by coca cola
Coca Cola leads with their strengths. Carbonated soft drinks remain
their most profitable business and Coca Cola is the most popular brand
in the world. This strategy paves the way for growth.
2. Selectively broaden our family of beverage brands to drive
Enormous opportunity exists in categories such as juice and juice
drinks, bottled water, teas, energy drinks, coffee and more.
3. Grow system profitability and capability together with our bottling
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 channels
We will continually strive to increase growth for the customers'
businesses, helping create a context for the company's 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 development. In this way, we direct our
investments in a way that makes the most business sense.
6. Drive efficiency and cost-effectiveness everywhere
By leveraging technology, creating alignment across business units and
achieving economies of scale, we are able to operate with more
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 dividends to the shareholders. Enhancing
the business means to upgrade the business in a sense that a business
buys 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 company's
success. They achieve these goals very successfully by striving for
carrying out against a crystal clear strategy for success, and by
doing so with an unwavering commitment to quality.
Departments of Coca Cola
Every 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 split into five geographic operating segments, also
known as strategic business units (SBU's). The five SBU's are North
America, Africa, Asia, Europe, Eurasia and Middle East and finally
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:
· Research and development
The Coca Cola marketing 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 the
objectives of The Coca-Cola Company will meets.
The 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 produce
the annual reports for the shareholders so that they can see the
company performance. The Finance department is also responsible for
the management accounts of the business like marketing etc. The
Coca-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
The packaging 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.
The 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 much to store in the warehouse
and to choose the transporting method which is the most cost efficient
and the quickest way.
Research and development
This department has their budget given 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.
This department is essential for keeping the business going. They act
as a help support of the company, it is not the central purpose the
business but every business organization would need this department.
Most businesses rely on administration to be organized. They deal 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 better 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 The
Coca-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.
There are four main types of management styles that each business
would use. Coca Cola have four principles of citizenship that they
would have to incorporate into the management style:
* Provide quality in the marketplace
* Enrich the workplace
* Preserve the environment
* Strengthen the community
A management style is an overall method of leadership used by the
manager. The Coca Cola Company use the following management styles,
but each one in different departments. There are three main types of
management styles used in businesses:
Where the leader makes all the decisions, there is no negotiation and
is very prescriptive and there is little job satisfaction. However,
the job gets done quickly and there is less conflict between different
ideas. This style is hardly used among the company as they believe
that the lack 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.
This 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 managers, junior managers and
employees are involved in the ideas and final decision process. Out of
all the workers, no-one has a higher level than the others n this
This is where the managers allow the employees to make the ideas but
the ideas are forwarded to the executive's or the manager consults
their team 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 staff 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 them 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 people 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 employee's
thoughts and suggestions are listened to by the business. This makes
the employees seem as if they are respected and that their thoughts
Coca Cola's Management by Objectives
Management 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 subordinate's responsibilities in terms of
· The use of agreed goals and responsibilities to control the progress
of the business
Every 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 of
Role Culture- This is best suited to 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 business
Task 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 dominant 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, technicians, 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 target
Management 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 staff 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 didn't 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
Every 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 Structure
The structure of the marketing department is quite simple and is
equally 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.
Finance Organisational Structure
Human Resource Organisational Structure
Operations Organisational Structure
Measuring Coca Cola's Success
Measuring Cola Cola's 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 popular 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 Cola's 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 chart shows that 89% of sales come from soft drinks,
50% of the soft drinks sales come from Coca Cola.
Market Share of 2000
Coca-Cola Classic 20.3%
Diet Coke 8.6%
Mountain Dew 7.1%
Dr. Pepper 6.2%
Diet Pepsi 4.9%
Minute Maid Orange 1.5%
· 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 Company's considerable
'Our 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 expanded 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 business
Internal ICT Communications used by Coca Cola Coca Cola use ICT to
communicate both internally externally. This includes communication
· Employees - Fax will be used to contact the employees because 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 sale's etc.
· Distributors of Coca Cola - They would probably be contacted by
Video 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 are:
E-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 access 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 fast 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, memoranda's,
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.
Pagers - Mainly executives use pagers in the business. Pagers allow
these people to receive information wherever they are at whatever
time. Pagers, 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.
Video Conferencing - Video conferencing can be proved to be very
important but not all companies may use it. This form of communication
can allow people from different countries to have a meeting. Video
conferencing allows people to talk to one another and listen to what
is being said. An example when this could be used is if a meeting is
taking place and someone is not there they can be reached via the
videoconference and can take part in the meeting. This is a good form
of communication as it allows people to take part wherever they are.
External ICT Communications used by Coca Cola Fax Coca Cola use their
fax for external suppliers. Suppliers are the only people who do fax
them externally. This form of external communications is important as
important documents could be axed from the supplier to the company and
vice versa. This would save time and money.