Coca Cola Organizational Theory

Topics: Coca-Cola, The Coca-Cola Company, Diet Coke Pages: 58 (19605 words) Published: April 11, 2008
Table of Contents
Recommendation 13
Recommendation 24
Recommendation 35
#1 – Organizations and Organizational Effectiveness6
#2 – Stakeholders, Managers, and Ethics9
#4 – Organizational Design10
#5 – Designing Organizational Structure: Authority & Control13 #6 – Designing Organizational Structure: Specialization & Coordination15 #3 – Managing in a Changing Global Environment16
#8 – Organizational Design & Strategy19
#7 – Creating & Managing Organizational Culture21
#9 – Organizational Technology21
#11 – Organizational Transformations: Birth et al.23
#12 – Decision Making25
#14 – Managing Conflict, Power, and Politics26
Works Cited28

The subsequent paper contains a comprehensive analysis of The Coca-Cola Company and addresses several organizational theory issues. Three recommendations are proposed based on the problems that were discovered during the analysis. The goals of the recommendations are to address uncertainty with suppliers and distributors, and also align company decision-making with the structure of the organization.

Recommendation 1
The Coca-Cola Company has a high level of uncertainty when it comes to the raw materials it uses. For a few of the ingredients, the company only has one or two viable suppliers. This could be extremely problematic for a variety of reasons. The Coca-Cola Company has less bargaining power if there is little substitutability in suppliers. Another problem could arise if a supplier experiences an event that economically devastates them. If a supplier goes bankrupt, or is in some type of natural disaster, The Coca- Cola Company would suffer greatly as well. The Coca-Cola Company can improve and secure relationships with suppliers using a few tactics such as minority ownership or strategic alliances. The most optimal method would be to use backward vertical integration and purchase a supplier. The results of such a strategy would allow the company to keep profits that used to be earned by the supplier, save on costs, and have a reliable source of supplies. Besides the actual purchase of the organization, another costly aspect of vertical integration is high bureaucratic costs (Jones, 2007). The Coca-Cola Company should look at buying the following companies: The NutraSweet Company, Ajinomoto Co., Inc., Nutrinova Nutrition Specialties & Food Ingredients GmbH, or Tate & Lyle. These companies are one of two possible suppliers for important raw materials (Annual Report, 2006). Although the company has not experienced significant problems, future events are always uncertain. The most secure way to control suppliers for a company is through ownership. While ownership of a sugar/sweetener company is clearly out of the company’s domain, the move would make their core business more profitable. The Coca-Cola Company would be able to purchase one of these companies through financing. The organization has a high credit rating and, therefore, would be able to raise money for the acquisition at a low cost. Recommendation 2

The Coca-Cola Company’s decision making process does not fit into its structure or mission, vision, and values. Their decision making process is more centralized, and when compared to everything else going on at The Coca-Cola Company, it does not match. The Coca-Cola Company has a more organic structure and their mission and values preach creativity and employee involvement. They would improve their decision making and enforce their organic structure by implementing a strategy for organizational learning. They can begin by shaking things up more often by changing managers for different departments on a periodical basis. This will force managers to think outside the box when making decisions (Jones, 2007). This will also enforce a learning organization and instill the organic culture into everyone’s mind frame. Because of this, The Coca-Cola Company will...
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