An Effective Organisational Structure - Coca-Cola
The Coca-Cola Company is the world’s largest beverage company, refreshing consumers with nearly 500 sparkling and still brands. Coca-Cola is recognised as the world’s most valuable brand. The company’s portfolio includes 12 other billion dollar brands, including Diet Coke, Fanta, Sprite, Coca-Cola Zero, Vitaminwater, Powerade, Minute Maid and Georgie coffee. Globally, Coca-Cola is the number one provider of sparkling beverages, juices and juice drinks and ready-to-drink teas and coffees. Through the world’s largest beverage distribution system, consumers in more than 200 countries enjoy the company’s beverages at a rate of 1.6 billion servings a day. With an enduring commitment to building sustainable communities, the company focuses on protecting the environment, conserving resources and enhancing the economic development of the communities where they operate. (1)
In 1886 an Atlanta pharmacist, John Pemberton stirred up a fragrant, caramel-coloured liquid. The mixture was combined with carbonated water and sampled by customers. Pemberton’s bookkeeper named the mixture Coca-Cola and wrote it out in his distinct handwriting. To this day Coca-Cola is written the same way. In the first year, Pemberton sold just 9 glasses of Coca-Cola a day. A century later, The Coca-Cola Company has produced more than 10 billion gallons of syrup. Atlanta businessman Asa Griggs Candler secured the rights to the business for a total of about 42,300, became the first president and brought real vision to the business and the brand. (2)
The mission is:
• To refresh the world - in mind, body and spirit
• To inspire moments of optimism - through our brands and actions • To create value and make a difference everywhere we engage (1)
Competitors – PepsiCo
PepsiCo was founded through the merger of Pepsi-Cola and Fritto-Lay. Pepsi-Cola was created in the late 1890s. PepsiCo is a major player in convenient snacks, foods and beverages. The company expanded its portfolio with the acquisition of Tropicana in 1998 and the merger with Quaker Oats in 2001. (3)
Coca-Cola is one of the world’s foremost globally recognized brands. It’s interesting to note that while their structure reflects the global nature it also considers specific needs of regional markets. This case study explores the way Coca-Cola has managed to develop a strong yet flexible organisational structure that facilitates goal achievement.
A global and local strategy
Coca-Cola is known to be the biggest beverage company in the world and the largest soft drink manufacturer. Coca-Cola boasts that it produces four out of the top five soft drinks, namely Coca-Cola, Diet Coke, Fanta and Sprite. The company credits its success to five main factors:
1. Brand - Coca-Cola is recognized as the world’s number one brand and one of the most recognized trademarks 2. Quality - offering only products of the best quality to customers 3. Marketing – noted for the creativity and innovation in their marketing campaigns 4. Global availability - soft drinks are bottled and distributed globally and available in almost every ‘corner shop’ 5. Innovation - introducing innovative products to the market continuously e.g. Diet Coke (1982), Coca-Cola Vanilla (2002).
The corporate Head Office
Corporate head office is in charge of giving the entire company direction and providing guidance to the regional structure. An executive committee of 12 members is responsible for key strategic decisions. They came up with the following strategic priorities: 1. Accelerate growth of carbonated drinks led by Coca-Cola
2. Broaden the product portfolio, wherever appropriate e.g. energy drinks, bottled water, coffee, juices, tea, 3. Grow system profitability & capability in collaboration with the bottlers 4. Creatively serve customers (e.g. retailers) to build their businesses 5. Invest intelligently in...
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